Document:

EX-10.1

 EXHIBIT 10.1 
 FATE THERAPEUTICS, INC. 
 2007 EQUITY INCENTIVE PLAN 

1. Purposes of the Plan. The purposes of the Fate Therapeutics, Inc. 2007 Equity Incentive Plan are to attract and retain
the best available personnel for positions of substantial responsibility, to provide additional incentive to Employees, Directors and Consultants and to promote the success of the Company’s business. Options granted under the Plan may be
Incentive Stock Options or Non-Qualified Stock Options, as determined by the Administrator at the time of grant. Stock Purchase Rights may also be granted under the Plan. 
 2. Definitions. As used herein, the following definitions shall apply: 

(a) “Change of Control” means (i) the liquidation, dissolution or winding up of the Company; (ii) the
acquisition of the Company by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger, share exchange or consolidation) provided that the applicable transaction shall not be deemed a
Change of Control unless the Company’s stockholders constituted immediately prior to such transaction hold less than fifty percent (50%) of the voting power of the surviving or acquiring entity; or (iii) the sale, conveyance or other
disposal of all or substantially all of the property or business of the Company; provided that a Change of Control shall not include (x) a merger or consolidation with a wholly-owned subsidiary of the Company, (y) a merger effected
exclusively for the purpose of changing the domicile of the Company or (z) any transaction or series of related transactions principally for bona fide equity financing purposes in which the Company is the surviving corporation. 

(b) “Administrator” means the Board or the Committee responsible for conducting the general administration of the Plan,
as applicable, in accordance with Section 4 hereof. 
 (c) “Applicable Laws” means the requirements
relating to the administration of stock option plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where Options or Stock Purchase Rights are granted under the Plan. 
 (d)
“Board” means the Board of Directors of the Company. 
 (e) “Code” means the Internal Revenue
Code of 1986, as amended, or any successor statute or statutes thereto. Reference to any particular Code section shall include any successor section. 

 (f) “Committee” means a committee appointed by the Board in accordance with
Section 4 hereof. 
 (g) “Common Stock” means the common stock of the Company. 

(h) “Company” means Fate Therapeutics, Inc., a Delaware corporation. 

(i) “Consultant” means any consultant or adviser if: (i) the consultant or adviser renders bona fide
services to the Company or any Parent or Subsidiary of the Company; (ii) the services rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or
indirectly promote or maintain a market for the Company’s securities; and (iii) the consultant or adviser is a natural person who has contracted directly with the Company or any Parent or Subsidiary of the Company to render such services.

 (j) “Director” means a member of the Board. 

(k) “Employee” means any person, including an Officer or Director, who is an employee (as defined in accordance with
Section 3401(c) of the Code) of the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between
locations of the Company or between the Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed
by statute or contract. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient, by itself, to constitute “employment” by the Company. 

(l) “Equity Restructuring” shall mean a non-reciprocal transaction between the Company and its stockholders, such as a
stock dividend, stock split, spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend, that affects the shares of Common Stock (or other securities of the Company) or the share price of Common Stock (or other
securities) and causes a change in the per share value of the Common Stock underlying outstanding Awards. 
 (m)
“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute or statutes thereto. Reference to any particular Exchange Act section shall include any successor section. 

(n) “Fair Market Value” means, as of any date, the value of a share of Common Stock determined as follows: 

(i) If the Common Stock is listed on any established stock exchange or a national market system, its Fair Market Value shall be the
closing sales price for a share of such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for such date, or if no bids or sales were reported for such date, then the closing sales price (or the closing bid,
if no sales were reported) on the trading date immediately prior to such date during which a bid or sale occurred, in each case, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

  
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 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for a share of the Common Stock on such date, or if no closing bid and asked prices were reported for such date, the date immediately prior to
such date during which closing bid and asked prices were quoted for such Common Stock, in each case, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 

(iii) In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by
the Administrator based on the reasonable application of a reasonable valuation method not inconsistent with Section 409A. 

(o) “Holder” means a person who has been granted or awarded an Option or Stock Purchase Right or who holds Shares
acquired pursuant to the exercise of an Option or Stock Purchase Right. 
 (p) “Incentive Stock Option” means
an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and which is designated as an Incentive Stock Option by the Administrator. 

(q) “Independent Director” means a Director who is not an Employee of the Company. 

(r) “Non-Qualified Stock Option” means an Option (or portion thereof) that is not designated as an Incentive Stock
Option by the Administrator, or which is designated as an Incentive Stock Option by the Administrator but fails to qualify as an incentive stock option within the meaning of Section 422 of the Code. 

(s) “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act
and the rules and regulations promulgated thereunder. 
 (t) “Option” means a stock option granted pursuant to
the Plan. 
 (u) “Option Agreement” means a written agreement between the Company and a Holder evidencing the
terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 

(v) “Parent” means any corporation (or other entity), whether now or hereafter existing (other than the Company), in an
unbroken chain of corporations (or other entities) ending with the Company if each of the corporations (or other entities) other than the last corporation (or other entity) in the unbroken chain owns stock (or other equity interest) possessing more
than fifty percent of the total combined voting power of all classes of stock (or other equity interest) in one of the other corporations (or other entities) in such chain. 
 (w) “Plan” means the Fate Therapeutics, Inc. 2007 Equity Incentive Plan. 
 (x) “Public Trading Date” means the first date upon which Common Stock of the Company is listed (or approved for listing) upon notice of issuance on any securities exchange or designated
(or approved for designation) upon notice of issuance as a national market security on an interdealer quotation system. 

  
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 (y) “Restricted Stock” means Shares acquired pursuant to the exercise of an
unvested Option in accordance with Section 10(h) below or pursuant to a Stock Purchase Right granted under Section 12 below. 
 (z) “Rule 16b-3” means that certain Rule 16b-3 under the Exchange Act, as such Rule may be amended from time to time. 

(aa) “Section 16(b)” means Section 16(b) of the Exchange Act, as such Section may be amended from time to time.

 (bb) “Section 409A” means Section 409A of the Code and the regulations and other guidance promulgated
thereunder. 
 (cc) “Securities Act” means the Securities Act of 1933, as amended, or any successor statute or
statutes thereto. Reference to any particular Securities Act section shall include any successor section. 
 (dd)
“Service Provider” means an Employee, Director or Consultant. 
 (ee) “Share” means a share of
Common Stock, as adjusted in accordance with Section 13 below. 
 (ff) “Stock Purchase Right” means a
right to purchase Common Stock pursuant to Section 12 below. 
 (gg) “Subsidiary” means any corporation
(or other entity), whether now or hereafter existing (other than the Company), in an unbroken chain of corporations (or other entities) beginning with the Company if each of the corporations (or other entities) other than the last corporation (or
other entity) in the unbroken chain owns stock possessing more than fifty percent of the total combined voting power of all classes of stock in one of the other corporations (or other entities) in such chain. 

3. Stock Subject to the Plan. Subject to the provisions of Section 13 of the Plan, the shares of stock subject to Options or
Stock Purchase Rights shall be Common Stock. Subject to the provisions of Section 13 of the Plan, the maximum aggregate number of Shares which may be issued upon exercise of such Options or Stock Purchase Rights is Fourteen Million Three
Hundred Forty Nine Thousand Nine Hundred Seventy Four (14,349,974) Shares. Shares issued upon exercise of Options or Stock Purchase Rights may be authorized but unissued, or reacquired Common Stock. If an Option or Stock Purchase Right expires
or becomes unexercisable without having been exercised in full, the unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). Shares which are delivered by the
Holder or withheld by the Company upon the exercise of an Option or Stock Purchase Right under the Plan, in payment of the exercise price thereof or tax withholding thereon, may again be optioned, 

  
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granted or awarded hereunder, subject to the limitations of this Section 3. If Shares of Restricted Stock are repurchased by the Company at their original purchase price, such Shares shall
become available for future grant under the Plan (unless the Plan has terminated). Notwithstanding the provisions of this Section 3, no Shares may again be optioned, granted or awarded if such action would cause an Incentive Stock Option to
fail to qualify as an Incentive Stock Option under Code Section 422. 
 4. Administration of the Plan. 

(a) Administrator. Unless and until the Board delegates administration to a Committee as set forth below, the Plan shall be
administered by the Board. The Board may delegate administration of the Plan to a Committee or Committees of one or more members of the Board, and the term “Committee” shall apply to any person or persons to whom such authority has been
delegated. If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the
administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan,
as may be adopted from time to time by the Board. Notwithstanding the foregoing, however, from and after the Public Trading Date, a Committee of the Board shall administer the Plan and the Committee shall consist solely of two or more Independent
Directors each of whom is an “outside director,” within the meaning of Section 162(m) of the Code, a “non-employee director” within the meaning of Rule 16b-3, and qualifies as “independent” within the meaning of
any applicable stock exchange listing requirements. Members of the Committee shall also satisfy any other legal requirements applicable to membership on the Committee, including requirements under the Sarbanes-Oxley Act of 2002 and other Applicable
Laws. Within the scope of such authority, the Board or the Committee may (i) delegate to a committee of one or more members of the Board who are not Independent Directors the authority to grant awards under the Plan to eligible persons who are
either (1) not then “covered employees,” within the meaning of Section 162(m) of the Code and are not expected to be “covered employees” at the time of recognition of income resulting from such award or (2) not
persons with respect to whom the Company wishes to comply with Section 162(m) of the Code and/or (ii) delegate to a committee of one or more members of the Board who are not “non-employee directors,” within the meaning of Rule
16b-3, the authority to grant awards under the Plan to eligible persons who are not then subject to Section 16 of the Exchange Act. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan.
Appointment of Committee members shall be effective upon acceptance of appointment. Committee members may resign at any time by delivering written notice to the Board. Vacancies in the Committee may only be filled by the Board. 

(b) Powers of the Administrator. Subject to the provisions of the Plan and the specific duties delegated by the Board to such
Committee, and subject to the approval of any relevant authorities, the Administrator shall have the authority in its sole discretion: 
 (i) to determine the Fair Market Value; 

  
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 (ii) to select the Service Providers to whom Options and Stock Purchase Rights may from
time to time be granted hereunder; 
 (iii) to determine the number of Shares to be covered by each such award granted
hereunder; 
 (iv) to approve forms of agreement for use under the Plan; 

(v) to determine the terms and conditions of any Option or Stock Purchase Right granted hereunder (such terms and conditions include,
but are not limited to, the exercise price, the time or times when Options or Stock Purchase Rights may vest or be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any
restriction or limitation regarding any Option or Stock Purchase Right or the Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine); 

(vi) to determine whether to offer to buyout a previously granted Option as provided in subsection 10(i) and to determine the terms
and conditions of such offer and buyout (including whether payment is to be made in cash or Shares); 
 (vii) to prescribe,
amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws;

 (viii) to allow Holders to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to
be issued upon exercise of an Option or Stock Purchase Right that number of Shares having a Fair Market Value equal to the minimum amount required to be withheld based on the statutory withholding rates for federal and state tax purposes that apply
to supplemental taxable income. The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by Holders to have Shares withheld for this purpose shall be
made in such form and under such conditions as the Administrator may deem necessary or advisable; 
 (ix) to amend the Plan or
any Option or Stock Purchase Right granted under the Plan as provided in Section 15; and 
 (x) to construe and interpret
the terms of the Plan and awards granted pursuant to the Plan and to exercise such powers and perform such acts as the Administrator deems necessary or desirable to promote the best interests of the Company which are not in conflict with the
provisions of the Plan. 
 (c) Effect of Administrator’s Decision. All decisions, determinations and interpretations
of the Administrator shall be final and binding on all Holders. 
 5. Eligibility. Non-Qualified Stock Options and Stock
Purchase Rights may be granted to Service Providers. Incentive Stock Options may be granted only to Employees. If otherwise eligible, a Service Provider who has been granted an Option or Stock Purchase Right may be granted additional Options or
Stock Purchase Rights. 

  
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 6. Limitations. 

(a) Each Option shall be designated by the Administrator in the Option Agreement as either an Incentive Stock Option or a Non-Qualified
Stock Option. However, notwithstanding such designations, to the extent that the aggregate Fair Market Value of Shares subject to a Holder’s Incentive Stock Options and other incentive stock options granted by the Company, any Parent or
Subsidiary, which become exercisable for the first time during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options or other options shall be treated as Non-Qualified Stock Options.

 For purposes of this Section 6(a), Incentive Stock Options shall be taken into account in the order in which they were
granted, and the Fair Market Value of the Shares shall be determined as of the time of grant. 
 (b) Neither the Plan, any
Option nor any Stock Purchase Right shall confer upon a Holder any right with respect to continuing the Holder’s employment or consulting relationship with the Company, nor shall they interfere in any way with the Holder’s right or the
Company’s right to terminate such employment or consulting relationship at any time, with or without cause. 
 (c) No
Service Provider shall be granted, in any calendar year, Options or Stock Purchase Rights to purchase more than Fourteen Million Three Hundred Forty Nine Thousand Nine Hundred Seventy Four (14,349,974) shares; provided, however, that the
foregoing limitation shall not apply prior to the Public Trading Date and, following the Public Trading Date, the foregoing limitation shall not apply until the earliest of: (i) the first material modification of the Plan (including any
increase in the number of shares reserved for issuance under the Plan in accordance with Section 3); (ii) the issuance of all of the shares of Common Stock reserved for issuance under the Plan; (iii) the expiration of the Plan;
(iv) the first meeting of stockholders at which Directors of the Company are to be elected that occurs after the close of the third calendar year following the calendar year in which occurred the first registration of an equity security of the
Company under Section 12 of the Exchange Act; or (v) such other date required by Section 162(m) of the Code and the rules and regulations promulgated thereunder. The foregoing limitation shall be adjusted equitably or proportionately
in connection with any change in the Company’s capitalization as described in Section 13. For purposes of this Section 6(c), if an Option is canceled in the same calendar year it was granted (other than in connection with a
transaction described in Section 13), the canceled Option will be counted against the limit set forth in this Section 6(c). For this purpose, if the exercise price of an Option is reduced, the transaction shall be treated as a cancellation
of the Option and the grant of a new Option. 
 7. Term of Plan. The Plan shall become effective upon its initial
adoption by the Board and shall continue in effect until it is terminated under Section 15 of the Plan. No Options or Stock Purchase Rights may be issued under the Plan after the tenth (10th) anniversary of the earlier of (i) the date
upon which the Plan is adopted by the Board or (ii) the date the Plan is approved by the stockholders. 

  
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 8. Term of Option. The term of each Option shall be stated in the Option Agreement;
provided, however, that the term shall be no more than ten (10) years from the date of grant thereof. In the case of an Incentive Stock Option granted to a Holder who, at the time the Option is granted, owns (or is treated as owning
under Code Section 424) stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Option shall be five (5) years from the date of grant or
such shorter term as may be provided in the Option Agreement. 
 9. Option Exercise Price and Consideration. 

(a) Except as provided in Section 13, the per share exercise price for the Shares to be issued upon exercise of an Option shall be
such price as is determined by the Administrator, but shall be subject to the following: 
 (i) In the case of an Incentive
Stock Option 
 (A) granted to an Employee who, at the time of grant of such Option, owns (or is treated as owning under Code
Section 424) stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than one hundred ten percent (110%) of
the Fair Market Value per Share on the date of grant. 
 (B) granted to any other Employee, the per Share exercise price shall
be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
 (ii) In the case of
a Non-Qualified Stock Option, the per Share exercise price shall be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
 (iii) Notwithstanding the foregoing, an Option may be granted with a per Share exercise price other than as required above if such Option is granted as an assumption of or in substitution for another
option in connection with a merger or other corporate transaction. 
 (b) The consideration to be paid for the Shares to be
issued upon exercise of an Option, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant). Such consideration may consist of (1) cash,
(2) check, (3) with the consent of the Administrator, a full recourse promissory note bearing interest (at no less than such rate as is a market rate of interest and which then precludes the imputation of interest under the Code), payable
upon such terms as may be prescribed by the Administrator, and structured to comply with Applicable Laws, (4) with the consent of the Administrator, other Shares which (x) in the case of Shares acquired

  
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from the Company, have been owned by the Holder for more than six (6) months on the date of surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate
exercise price of the Shares as to which such Option shall be exercised, (5) with the consent of the Administrator, surrendered Shares then issuable upon exercise of the Option having a Fair Market Value on the date of exercise equal to the
aggregate exercise price of the Option or exercised portion thereof, (6) with the consent of the Administrator, property of any kind which constitutes good and valuable consideration, (7) with the consent of the Administrator, delivery of
a notice that the Holder has placed a market sell order with a broker with respect to Shares then issuable upon exercise of the Options and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company
in satisfaction of the Option exercise price, provided, that payment of such proceeds is then made to the Company upon settlement of such sale, or (8) with the consent of the Administrator, any combination of the foregoing methods of
payment. 
 10. Exercise of Option. 
 (a) Vesting; Fractional Exercises. Except as provided in Section 13, Options granted hereunder shall be vested and exercisable according to the terms hereof at such times and under such
conditions as determined by the Administrator and set forth in the Option Agreement. An Option may not be exercised for a fraction of a Share. 
 (b) Deliveries upon Exercise. All or a portion of an exercisable Option shall be deemed exercised upon delivery of all of the following to the Secretary of the Company, his or her office or such
other authorized representative of the Company: 
 (i) A written or electronic notice complying with the applicable rules
established by the Administrator stating that the Option, or a portion thereof, is exercised. The notice shall be signed by the Holder or other person then entitled to exercise the Option or such portion of the Option; 

(ii) Such representations and documents as the Administrator, in its sole discretion, deems necessary or advisable to effect compliance
with Applicable Laws. The Administrator may, in its sole discretion, also take whatever additional actions it deems appropriate to effect such compliance, including, without limitation, placing legends on share certificates and issuing stop transfer
notices to agents and registrars; 
 (iii) Upon the exercise of all or a portion of an unvested Option pursuant to
Section 10(h), a Restricted Stock purchase agreement in a form determined by the Administrator and signed by the Holder or other person then entitled to exercise the Option or such portion of the Option; and 

(iv) In the event that the Option shall be exercised pursuant to Section 10(f) by any person or persons other than the Holder,
appropriate proof of the right of such person or persons to exercise the Option. 
 (c) Conditions to Delivery of Share
Certificates. The Company shall not be required to issue or deliver any certificate or certificates for Shares purchased upon the exercise of any Option or portion thereof prior to fulfillment of all of the following conditions: 

(i) The admission of such Shares to listing on all stock exchanges on which such class of stock is then listed; 

  
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 (ii) The completion of any registration or other qualification of such Shares under any
state or federal law, or under the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body which the Administrator shall, in its sole discretion, deem necessary or advisable; 

(iii) The obtaining of any approval or other clearance from any state or federal governmental agency which the Administrator shall, in
its sole discretion, determine to be necessary or advisable; 
 (iv) The lapse of such reasonable period of time following the
exercise of the Option as the Administrator may establish from time to time for reasons of administrative convenience; and 

(v) The receipt by the Company of full payment for such Shares, including payment of any applicable withholding tax, which in the sole
discretion of the Administrator may be in the form of consideration used by the Holder to pay for such Shares under Section 9(b). 
 (d) Termination of Relationship as a Service Provider. If a Holder ceases to be a Service Provider other than by reason of the Holder’s disability or death, such Holder may exercise his or her
Option within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date of termination; provided, however, that prior to the Public Trading Date, to the extent required by
Applicable Law, such period of time shall not be less than thirty (30) days (but in no event later than the expiration of the term of the Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement,
the Option shall remain exercisable for three (3) months following the Holder’s termination. If, on the date of termination, the Holder is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option
immediately cease to be issuable under the Option and shall again become available for issuance under the Plan. If, after termination, the Holder does not exercise his or her Option within the time period specified herein, the Option shall
terminate, and the Shares covered by such Option shall again become available for issuance under the Plan. 
 (e) Disability
of Holder. If a Holder ceases to be a Service Provider as a result of the Holder’s disability, the Holder may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent the Option is vested
on the date of termination; provided, however, that prior to the Public Trading Date, to the extent required by Applicable Law, such period of time shall not be less than six (6) months (but in no event later than the expiration
of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following the Holder’s termination. If such disability
is not a “disability” as such term is defined in Section 22(e)(3) of the Code, in the case of an Incentive Stock Option such Incentive Stock Option shall automatically cease to be treated as an Incentive Stock Option and shall be
treated for tax purposes as a Non-Qualified Stock Option from and after the day 

  
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which is three (3) months and one (1) day following such termination. If, on the date of termination, the Holder is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall immediately cease to be issuable under the Option and shall again become available for issuance under the Plan. If, after termination, the Holder does not exercise his or her Option within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall again become available for issuance under the Plan. 
 (f) Death of Holder. If a Holder dies while a Service Provider, the Option may be exercised within such period of time as is specified in the Option Agreement; provided, however, that
prior to the Public Trading Date, to the extent required by Applicable Law, such period of time shall not be less than six (6) months (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement),
by the Holder’s estate or by a person who acquires the right to exercise the Option by bequest or inheritance, but only to the extent that the Option is vested on the date of death. In the absence of a specified time in the Option Agreement,
the Option shall remain exercisable for twelve (12) months following the Holder’s termination. If, at the time of death, the Holder is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option
shall immediately cease to be issuable under the Option and shall again become available for issuance under the Plan. The Option may be exercised by the executor or administrator of the Holder’s estate or, if none, by the person(s) entitled to
exercise the Option under the Holder’s will or the laws of descent or distribution. If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall again become
available for issuance under the Plan. 
 (g) Regulatory Extension. A Holder’s Option Agreement may provide that if
the exercise of the Option following the termination of the Holder’s status as a Service Provider (other than upon the Holder’s death or disability) would be prohibited at any time solely because the issuance of shares would violate the
registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option set forth in Section 8 or (ii) the expiration of a period of three (3) months
after the termination of the Holder’s status as a Service Provider during which the exercise of the Option would not be in violation of such registration requirements. 
 (h) Early Exercisability. The Administrator may provide in the terms of a Holder’s Option Agreement that the Holder may, at any time before the Holder’s status as a Service Provider
terminates, exercise the Option in whole or in part prior to the full vesting of the Option; provided, however, that subject to Section 20, Shares acquired upon exercise of an Option which has not fully vested may be subject to any
forfeiture, transfer or other restrictions as the Administrator may determine in its sole discretion. 
 (i) Buyout
Provisions. The Administrator may at any time offer to buyout for a payment in cash or Shares, an Option previously granted, based on such terms and conditions as the Administrator shall establish and communicate to the Holder at the time that
such offer is made. 

  
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 11. Non-Transferability of Options and Stock
Purchase Rights. Options and Stock Purchase Rights may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime
of the Holder, only by the Holder. 
 12. Stock Purchase Rights. 

(a) Rights to Purchase. Stock Purchase Rights may be issued either alone, in addition to, or in tandem with Options granted under
the Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing of the terms, conditions and restrictions related to the offer,
including the number of Shares that such person shall be entitled to purchase, the price to be paid, and the time within which such person must accept such offer. The offer shall be accepted by execution of a Restricted Stock purchase agreement in
the form determined by the Administrator. 
 (b) Repurchase Right. Unless the Administrator determines otherwise, the
Restricted Stock purchase agreement shall grant the Company the right to repurchase Shares acquired upon exercise of a Stock Purchase Right upon the termination of the purchaser’s status as a Service Provider for any reason. Subject to
Section 20, the purchase price for Shares repurchased by the Company pursuant to such repurchase right and the rate at which such repurchase right shall lapse shall be determined by the Administrator in its sole discretion, and shall be set
forth in the Restricted Stock purchase agreement. 
 (c) Other Provisions. The Restricted Stock purchase agreement shall
contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion. 
 (d) Rights as a Shareholder. Once the Stock Purchase Right is exercised, the purchaser shall have rights equivalent to those of a shareholder and shall be a shareholder when his or her purchase is
entered upon the records of the duly authorized transfer agent of the Company. No adjustment shall be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in
Section 13 of the Plan. 
 13. Adjustments upon Changes in Capitalization, Merger or Asset Sale. 

(a) In the event that the Administrator determines that other than an Equity Restructuring any dividend or other distribution (whether in
the form of cash, Common Stock, other securities, or other property), reorganization, merger, consolidation, combination, repurchase, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the
assets of the Company, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other similar corporate transaction or event, the
Administrator shall, in such manner as it may deem equitable or proportionate, adjust any or all of: 
 (i) the number and kind
of shares of Common Stock (or other securities or property) with respect to which Options or Stock Purchase Rights may be granted or awarded (including, but not limited to, adjustments of the limitations in Section 3 on the

  
 12 

 
maximum number and kind of shares which may be issued and adjustments of the maximum number of Shares that may be purchased by any Holder in any calendar year pursuant to Section 6(c));

 (ii) the number and kind of shares of Common Stock (or other securities or property) subject to outstanding Options, Stock
Purchase Rights or Restricted Stock; and 
 (iii) the grant or exercise price with respect to any Option or Stock Purchase
Right. 
 (b) In the event of any transaction or event described in Section 13(a), the Administrator, in its sole
discretion, and on such terms and conditions as it deems appropriate, either by the terms of the Option, Stock Purchase Right or Restricted Stock or by action taken prior to the occurrence of such transaction or event and either automatically or
upon the Holder’s request, is hereby authorized to take any one or more of the following actions whenever the Administrator determines that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential
benefits intended by the Company to be made available under the Plan or with respect to any Option, Stock Purchase Right or Restricted Stock granted or issued under the Plan or to facilitate such transaction or event: 

(i) To provide for either the purchase of any such Option, Stock Purchase Right or Restricted Stock for an amount of cash equal to the
amount that could have been obtained upon the exercise of such Option or Stock Purchase Right or realization of the Holder’s rights had such Option, Stock Purchase Right or Restricted Stock been currently exercisable or payable or fully vested
or the replacement of such Option, Stock Purchase Right or Restricted Stock with other rights or property selected by the Administrator in its sole discretion; 
 (ii) To provide that such Option or Stock Purchase Right shall be exercisable as to all shares covered thereby, notwithstanding anything to the contrary in the Plan or the provisions of such Option or
Stock Purchase Right; 
 (iii) To provide that such Option, Stock Purchase Right or Restricted Stock be assumed by the
successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with equitable or
proportionate adjustments as to the number and kind of shares and prices; 
 (iv) To make equitable or proportionate
adjustments in the number and type of shares of Common Stock (or other securities or property) subject to outstanding Options and Stock Purchase Rights, and/or in the terms and conditions of (including the grant or exercise price), and the criteria
included in, outstanding Options, Stock Purchase Rights or Restricted Stock or Options, Stock Purchase Rights or Restricted Stock which may be granted in the future; and/or 
 (v) To provide that immediately upon the consummation of such event, such Option or Stock Purchase Right shall not be exercisable and shall terminate;

  
 13 

 
provided, that for a specified period of time prior to such event, such Option or Stock Purchase Right shall be exercisable as to all Shares covered thereby, and the restrictions imposed
under an Option Agreement or Restricted Stock purchase agreement upon some or all Shares may be terminated and, in the case of Restricted Stock, some or all shares of such Restricted Stock may cease to be subject to repurchase, notwithstanding
anything to the contrary in the Plan or the provisions of such Option, Stock Purchase Right or Restricted Stock purchase agreement. 
 (c) In connection with the occurrence of any Equity Restructuring, and notwithstanding anything to the contrary in Section 13(a) and 13(b): 

(i) The number and type of securities subject to each outstanding Option or Stock Purchase Right and the exercise price or grant price
thereof, if applicable, will be equitably or proportionately adjusted. The adjustments provided under this Section 13(c)(i) shall be nondiscretionary and shall be final and binding on the affected Holder and the Company. 

(ii) The Administrator shall make such equitable or proportionate adjustments to reflect such Equity Restructuring with respect to the
aggregate number and kind of shares that may be issued under the Plan (including, but not limited to, adjustments of the limitations in Section 3). 
 (d) If the Company undergoes a Change of Control, then any surviving corporation or entity or acquiring corporation or entity, or affiliate of such corporation or entity, may assume any Options, Stock
Purchase Rights or Restricted Stock outstanding under the Plan or may substitute similar stock awards (including an award to acquire the same consideration paid to the stockholders in the transaction described in this subsection 13(d)) for those
outstanding under the Plan. In the event any surviving corporation or entity or acquiring corporation or entity in a Change of Control, or affiliate of such corporation or entity, does not assume such Options, Stock Purchase Rights or Restricted
Stock or does not substitute similar stock awards for those outstanding under the Plan, then all outstanding Options and Stock Purchase Rights granted under the Plan shall terminate upon the effective time or consummation of such Change of Control.
The Administrator may, in its sole discretion and notwithstanding anything contained in the applicable award agreement, elect to accelerate all or a portion of the vesting of any Options or Restricted Stock in connection with any Change of Control.
In the event of the termination of Options and Stock Purchase Rights, each Holder shall be permitted, within a specified period of time prior to the consummation of the Change of Control as determined by the Administrator, to exercise all
outstanding Options held by such Holder which are then vested and exercisable or will become vested and exercisable as of the effective time or consummation of the Change of Control. 

(e) Subject to Section 3, the Administrator may, in its sole discretion, include such further provisions and limitations in any
Option, Stock Purchase Right, Restricted Stock agreement or certificate, as it may deem equitable and in the best interests of the Company. 
 (f) The existence of the Plan, any Option Agreement or Restricted Stock purchase agreement and the Options or Stock Purchase Rights granted hereunder shall not affect or restrict in any way the right or
power of the Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the 

  
 14 

 
Company’s capital structure or its business, any merger or consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures,
preferred or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or
transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise. 
 14. Time of Granting Options and Stock Purchase Rights. The date of grant of an Option or Stock Purchase Right shall, for all purposes, be the date on which the Administrator makes the
determination granting such Option or Stock Purchase Right, or such other date as is determined by the Administrator consistent with applicable legal requirements. Notice of the determination shall be given to each Employee or Consultant to whom an
Option or Stock Purchase Right is so granted within a reasonable time after the date of such grant. 
 15. Amendment and
Termination of the Plan. 
 (a) Amendment and Termination. Subject to the requirements of subsection (c), the Board
may at any time wholly or partially amend, alter, suspend or terminate the Plan. However, without approval of the Company’s stockholders given within twelve (12) months before or after the action by the Board, no action of the Board may,
except as provided in Section 13, increase the limits imposed in Section 3 on the maximum number of Shares which may be issued under the Plan or extend the term of the Plan under Section 7. 

(b) Stockholder Approval. The Board shall obtain stockholder approval of any Plan amendment to the extent necessary and desirable
to comply with Applicable Laws. 
 (c) Effect of Amendment or Termination. No amendment, alteration, suspension or
termination of the Plan or any Option or Stock Purchase Right shall impair the rights of any Holder, unless mutually agreed otherwise between the Holder and the Administrator, which agreement must be in writing and signed by the Holder and the
Company. Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Options, Stock Purchase Rights or Restricted Stock granted or awarded under the Plan prior to the date
of such termination. 
 16. Stockholder Approval. The Plan will be submitted for the approval of the Company’s
stockholders within twelve (12) months after the date of the Board’s initial adoption of the Plan. Options or Stock Purchase Rights may be granted prior to such stockholder approval, provided that such Options and Stock Purchase Rights
shall not be exercisable, shall not vest and the restrictions thereon shall not lapse prior to the time when the Plan is approved by the stockholders, and provided further that if such approval has not been obtained at the end of said twelve-month period, all Options and Stock Purchase Rights previously granted under the Plan shall thereupon be canceled and become null and void. 

  
 15 

 17. Inability to Obtain Authority. The inability of the Company to obtain authority
from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to
issue or sell such Shares as to which such requisite authority shall not have been obtained. 
 18. Reservation of
Shares. The Company, during the term of this Plan, shall at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 

19. Information to Holders and Purchasers. Prior to the Public Trading Date and to the extent required by Applicable Law, the
Company shall provide to each Holder and to each individual who acquires Shares pursuant to the Plan, not less frequently than annually during the period such Holder or purchaser has one or more Options or Stock Purchase Rights outstanding, and, in
the case of an individual who acquires Shares pursuant to the Plan, during the period such individual owns such Shares, copies of annual financial statements. Notwithstanding the preceding sentence, the Company shall not be required to provide such
statements to key employees whose duties in connection with the Company assure their access to equivalent information. 
 20.
Repurchase Provisions. The Administrator in its sole discretion may provide that the Company may repurchase Shares acquired upon exercise of an Option or Stock Purchase Right upon the occurrence of certain specified events, including, without
limitation, a Holder’s termination as a Service Provider, divorce, bankruptcy or insolvency. 
 21. Rules Particular To
Specific Countries. Notwithstanding anything herein to the contrary, the terms and conditions of the Plan with respect to Service Providers who are tax residents of a particular country may be subject to an addendum to the Plan in the form of an
Appendix. To the extent that the terms and conditions set forth in an Appendix conflict with any provisions of the Plan, the provisions of the Appendix shall govern. The adoption of any such Appendix shall be pursuant to Section 15 above.

 22. Investment Intent. The Company may require a Plan participant, as a condition of exercising or acquiring stock
under any Option or Stock Purchase Right, (i) to give written assurances satisfactory to the Company as to the participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably
satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Option or
Stock Purchase Right; and (ii) to give written assurances satisfactory to the Company stating that the participant is acquiring the stock subject to the Option or Stock Purchase Right for the participant’s own account and not with any
present intention of selling or otherwise distributing the stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (A) the issuance of the shares upon the exercise or 

  
 16 

 
acquisition of stock under the applicable Option or Stock Purchase Right has been registered under a then currently effective registration statement under the Securities Act or (B) as to any
particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under Then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on
stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the stock. 

23. Section 409A. 
 (a) 409A Award. To the extent that the Administrator determines that any Option, Stock Purchase Right or Restricted Stock granted or awarded under the Plan constitutes “nonqualified deferred
compensation within the meaning of Section 409A (a “409A Award”), the agreement evidencing such 409A Award shall be interpreted consistent with the requirements of Section 409A. With respect to any 409A Award, the Administrator
may, with the written consent of the affected Holder, adopt such amendments to the Plan and the applicable agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other
actions, that the Administrator determines are necessary or appropriate to (a) exempt the Option, Stock Purchase Right or Restricted Stock from Section 409A and/or preserve the intended tax treatment of the benefits provided with respect
to the Option, Stock Purchase Right or Restricted Stock, or (b) comply with the requirements of Section 409A. 
 (b)
Separation from Service. In addition, if any amount under a 409A Award is payable upon a “separation from service” (within the meaning of Section 409A) to a grantee who is considered a “specified employee” (within the
meaning of Section 409A), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the grantee’s date of separation from service, or (ii) the grantee’s death, but only to
the extent such delay is necessary to prevent such payment from being subject to interest, penalties and/or additional tax imposed pursuant to Section 409A. The determination of whether and when a separation from service has occurred shall be
made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h). 
 (c) No Liability.
The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do
not satisfy an exemption from, or the conditions of Section 409A. 
 24. Governing Law. The validity and
enforceability of this Plan shall be governed by and construed in accordance with the laws of the State of Delaware without regard to otherwise governing principles of conflicts of law. 
 Adopted by the Board of Directors and approved by the stockholders on September 26, 2007. 

  
 17 

 Amendment to the Plan increasing the number of shares reserved to 4,149,974 adopted by the Board of
Directors and approved by the stockholders on April 14, 2008. 
 Amendment to the Plan to provide for changes relating to
Section 409A of the Internal Revenue Code adopted by the Board of Directors on September 10, 2008. 
 Amendment to the Plan to
provide for changes relating to Section 409A of the Internal Revenue Code approved by the Series A Preferred stockholders on November 11, 2008. 
 Amendment to the Plan increasing the number of shares reserved to 4,649,974 and providing for certain other changes adopted by the Board of Directors on January 28, 2009. 

Amendment to the Plan increasing the number of shares reserved to 4,649,974 and providing for certain other changes approved by the stockholders on
January 30, 2009. 
 Amendment to the Plan increasing the number of shares reserved to 5,899,974 and providing for certain other
changes adopted by the Board of Directors and the stockholders on November 9, 2009. 
 Amendment to the Plan increasing the number
of shares reserved to 6,149,974 adopted by the Board of Directors and the stockholders in December 2010. 
 Amendment to the Plan
increasing the number of shares reserved to 7,349,974 adopted by the Board of Directors on July 20, 2011 and the stockholders on November 7, 2011. 
 Amendment to the Plan increasing the number of shares reserved to 8,349,974 adopted by the Board of Directors and the stockholders on March 13, 2012. 

Amendment to the Plan increasing the number of shares reserved to 9,349,974 adopted by the Board of Directors and the stockholders on July 24,
2012. 
 Amendment to the Plan increasing the number of shares reserved to 14,349,974 adopted by the Board of Directors and the
stockholders on October 10, 2012. 

  
 18 

 FATE THERAPEUTICS, INC. 

2007 EQUITY INCENTIVE PLAN 
 STOCK OPTION AGREEMENT 
 Pursuant to its 2007 Equity Incentive Plan, as
amended from time to time (the “Plan”), Fate Therapeutics, Inc., a Delaware corporation (the “Company”), hereby grants to the Optionee listed below (“Optionee”), an option to purchase the number of shares of the
Company’s Common Stock set forth below, subject to the terms and conditions of the Plan and this Stock Option Agreement (this “Option Agreement”). Unless otherwise defined herein, the terms defined in the Plan shall have the same
defined meanings in this Option Agreement. 
  

	I.	NOTICE OF STOCK OPTION GRANT 

  

			
	Optionee:	 	  

		
	Date of Grant:	 	  

		
	Vesting Commencement Date	 	  

		
	Exercise Price per Share:	 	  

		
	Total Number of Shares Granted:	 	  

		
	Total Exercise Price:	 	  

		
	Term/Expiration Date:	 	  

  

					
	Type of Option:	  	 ̈  Incentive Stock Option	  	x  Non-Qualified Stock Option
		
	Vesting Schedule:	  	 The Shares subject to this Option shall vest according to the following schedule:

 
 [1/48th of the Shares subject to the Option shall vest on the date one month after
the Vesting Commencement Date and 1/48th of the Shares subject to the Option shall vest monthly thereafter so that one hundred percent (100%) of the Shares subject to the Option will be vested on the fourth anniversary of the Vesting Commencement
Date.]

		
	Termination Period:	  	This Option may be exercised, to the extent vested, for three (3) months after Optionee ceases to be a Service Provider, or such longer period as may be applicable
upon the death or disability of Optionee as provided herein (or, if not provided herein, then as provided in the Plan), but in no event later than the Term/Expiration Date as set forth above.

	II.	AGREEMENT 

 1.
Grant of Option. The Company hereby grants to the Optionee an Option to purchase the number of shares of Common Stock (the “Shares”) set forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant
(the “Exercise Price”). Notwithstanding anything to the contrary anywhere else in this Option Agreement, this grant of an Option is subject to the terms, definitions and provisions of the Plan, which is incorporated herein by reference.

 If designated in the Notice of Grant as an Incentive Stock Option, this Option is intended to qualify as an Incentive Stock
Option as defined in Section 422 of the Code; provided, however, that to the extent that the aggregate Fair Market Value of the Common Stock with respect to which Incentive Stock Options (within the meaning of Code Section 422, but without
regard to Code Section 422(d)), including the Option, are exercisable for the first time by Optionee during any calendar year (under the Plan and all other incentive stock option plans of the Company or any Subsidiary) exceeds $100,000, such
options shall be treated as not qualifying under Code Section 422, but rather shall be treated as Non-Qualified Stock Options to the extent required by Code Section 422. The rule set forth in the preceding sentence shall be applied by
taking options into account in the order in which they were granted. For purposes of these rules, the Fair Market Value of the Common Stock shall be determined as of the time the option with respect to such stock is granted. 

2. Exercise of Option. This Option is exercisable as follows: 

(a) Right to Exercise. 
 (i) This Option shall be exercisable cumulatively according to the vesting schedule set out in the Notice of Grant. For purposes of this Option Agreement, Shares subject to this Option shall vest based on
Optionee’s continued status as a Service Provider. 
 (ii) This Option may not be exercised for a fraction of a Share.

 (iii) In the event of Optionee’s death, disability or other termination of the Optionee’s status as a Service
Provider, the exercisability of the Option shall be governed by Sections 7, 8 and 9 hereof. 
 (iv) In no event may this
Option be exercised after the Expiration Date of this Option as set forth in the Notice of Grant. 
 (b) Method of
Exercise. This Option shall be exercisable by written notice to the Company (in the form attached as Exhibit A) (the “Exercise Notice”). The Exercise Notice shall state the number of Shares for which the Option is being
exercised, and such other representations and agreements with respect to such Shares of Common Stock as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice shall be signed by Optionee and shall be delivered in
person or by certified mail to the Secretary of the Company. The Exercise Notice shall be accompanied by payment of the Exercise Price, including payment of any applicable withholding tax. 

  
 2 

 No Shares shall be issued pursuant to the exercise of an Option unless such issuance and
such exercise comply with all relevant provisions of law and the requirements of any stock exchange upon which the Shares may then be listed. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to Optionee on
the date on which the Option is exercised with respect to such Shares. 
 3. Optionee’s Representations. If the
Shares purchasable pursuant to the exercise of this Option have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), at the time this Option is exercised, Optionee shall, if required by the Company,
concurrently with the exercise of all or any portion of this Option, deliver to the Company his or her Investment Representation Statement in the form attached hereto as Exhibit B. 

4. Lock-Up Period. Optionee hereby agrees that if so requested by the Company or any representative of the underwriters (the
“Managing Underwriter”) in connection with any registration of the offering of any securities of the Company under the Securities Act, Optionee shall not sell or otherwise transfer any Shares or other securities of the Company during
the 180-day period (or such longer period as may be requested in writing by the Managing Underwriter and agreed to in writing by the Company) (the “Market Standoff Period”) following the effective
date of a registration statement of the Company filed under the Securities Act; provided, however, that such restriction shall apply only to the first registration statement of the Company to become effective under the Securities Act that
includes securities to be sold on behalf of the Company to the public in an underwritten public offering under the Securities Act. The Company may impose stop-transfer instructions with respect to securities
subject to the foregoing restrictions until the end of such Market Standoff Period and these restrictions shall be binding on any transferee of such Shares. Notwithstanding the foregoing, the 180-day period may be extended for up to such number of
additional days as is deemed necessary by the Company or the Managing Underwriter to continue coverage by research analysts in accordance with NASD Rule 2711 or any successor rule. 

5. Method of Payment. Payment of the Exercise Price shall be by any of the following, or a combination thereof, at the election of
the Optionee: 
 (a) cash; 
 (b) check; 
 (c) with the consent of the Administrator, a full recourse promissory
note bearing interest (at no less than such rate as is a market rate of interest and which then precludes the imputation of interest under the Code), payable upon such terms as may be prescribed by the Administrator and structured to comply with
Applicable Laws; 
 (d) with the consent of the Administrator, surrender of other Shares of Common Stock of the Company which
(A) in the case of Shares acquired from the Company, have been owned by Optionee for more than six (6) months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the Exercise Price of the
Shares as to which the Option is being exercised; 

  
 3 

 (e) with the consent of the Administrator, surrendered Shares issuable upon the exercise of
the Option having a Fair Market Value on the date of exercise equal to the aggregate Exercise Price of the Option or exercised portion thereof; 
 (f) with the consent of the Administrator, property of any kind which constitutes good and valuable consideration; 
 (g) following the Public Trading Date, with the consent of the Administrator, delivery of a notice that the Optionee has placed a market sell order with a broker with respect to Shares then issuable upon
exercise of the Option and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the aggregate Exercise Price; provided, that payment of such proceeds is then made to the
Company upon settlement of such sale; or 
 (h) with the consent of the Administrator, any combination of the foregoing methods
of payment. 
 6. Restrictions on Exercise. This Option may not be exercised until the Plan has been approved by the
stockholders of the Company. If the issuance of Shares upon such exercise or if the method of payment for such Shares would constitute a violation of any applicable federal or state securities or other law or regulation, then the Option may also not
be exercised. The Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation before allowing the Option to be exercised. 

7. Termination of Relationship. If Optionee ceases to be a Service Provider (other than by reason of Optionee’s death or the
total and permanent disability of the Optionee within the meaning of Code Section 22(e)(3)), Optionee may exercise this Option during the Termination Period set out in the Notice of Grant, to the extent the Option was vested on the date on
which Optionee ceases to be a Service Provider. To the extent that the Option is not vested on the date on which Optionee ceases to be a Service Provider, or if Optionee does not exercise this Option within the time specified herein, the Option
shall terminate. 
 8. Disability of Optionee. If Optionee ceases to be a Service Provider as a result of his or her
total and permanent disability within the meaning of Code Section 22(e)(3), Optionee may exercise the Option to the extent the Option was vested at the date on which Optionee ceases to be a Service Provider, but only within twelve
(12) months from such date (and in no event later than the expiration date of the term of this Option as set forth in the Notice of Grant). To the extent that the Option is not vested at the date on which Optionee ceases to be a Service
Provider, or if Optionee does not exercise such Option within the time specified herein, the Option shall terminate. 
 9.
Death of Optionee. If Optionee ceases to be a Service Provider as a result of the death of Optionee, the vested portion of the Option may be exercised at any time within twelve (12) months following the date of death (and in no event
later than the expiration date of the term of this Option as set forth in the Notice of Grant) by Optionee’s estate or by a person who acquires the right to exercise the Option by bequest or inheritance. To the extent that the Option is not
vested on the date of death, or if the Option is not exercised within the time specified herein, the Option shall terminate. 

  
 4 

 10. Non-Transferability of Option. This Option may not be transferred in any manner
except by will or by the laws of descent or distribution. It may be exercised during the lifetime of Optionee only by Optionee. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the
Optionee. 
 11. Term of Option. This Option may be exercised only within the term set out in the Notice of Grant.

 12. Restrictions on Shares. Optionee hereby agrees that Shares purchased upon the exercise of the Option shall be
subject to such terms and conditions as the Administrator shall determine in its sole discretion, including, without limitation, restrictions on the transferability of Shares, and a right of first refusal in favor of the Company with respect to
permitted transfers of Shares. Such terms and conditions may, in the Administrator’s sole discretion, be contained in the Exercise Notice with respect to the Option or in such other agreement as the Administrator shall determine and which the
Optionee hereby agrees to enter into at the request of the Company. 
 13. Drag-Along Transactions. Optionee hereby
agrees to the following: 
 (a) In the event of an Approved Transaction (as defined in that certain Amended and Restated Voting
Agreement dated May 4, 2012, by and among the Company and the stockholders listed as parties thereto, as the same may be amended and/or restated from time to time (the “Voting Agreement”)), Optionee shall be bound by and shall comply
with all terms and conditions contained in Section 4 of the Voting Agreement to the same extent as the Founders (as defined in the Voting Agreement) are bound thereunder. 
 (b) In addition to and notwithstanding the foregoing, in the event the holders of a majority of the outstanding shares of equity securities of the Company (the “Majority Holders”) determine to
sell or otherwise dispose of all or substantially all of the assets of the Company or all or fifty percent (50%) or more of the capital stock of the Company, in each case in a transaction constituting a change in control of the Company, to any
third party, or to cause the Company to merge with or into or consolidate with any third party (in each case, the “Buyer”) in a bona fide negotiated transaction (a “Sale”), Optionee shall, at the request of the Company,
(i) sell, transfer and deliver, or cause to be sold, transferred and delivered, to the Buyer, Optionee’s Shares (including for this purpose all of Optionee’s Shares that presently or as a result of any such transaction may be acquired
upon the exercise of the Option (following the payment of the exercise price therefor)) on substantially the same terms applicable to the Majority Holders (with appropriate adjustments to reflect the conversion of convertible securities, the
redemption of redeemable securities and the exercise of exercisable securities as well as the relative preferences and priorities of preferred stock) and (ii) execute and deliver such instruments of conveyance and transfer and take such other
action, including voting such Shares in favor of any Sale proposed by the Majority Holders and executing any purchase agreements, merger agreements, indemnity agreements, escrow agreements or related documents as the Majority Holders or the Buyer
may reasonably require in order to carry out the terms and provisions of this Section 13(b). 

  
 5 

 (c) The provisions set forth in Sections 13(a) and 13(b) will terminate upon the earlier to
occur of (i) the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act and (ii) the
completion of a Liquidation (as defined in the Company’s Certificate of Incorporation, as the same may be amended and/or restated from time to time). 
 (Signature Page Follows) 

  
 6 

 This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original and all of which shall constitute one document. 
  

			
	FATE THERAPEUTICS, INC.
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

 OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE OPTION HEREOF IS EARNED
ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN
THE COMPANY’S 2007 EQUITY INCENTIVE PLAN, AS AMENDED FROM TIME TO TIME, WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL IT
INTERFERE IN ANY WAY WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE AND WITH OR WITHOUT PRIOR NOTICE. 

Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof.
Optionee hereby accepts this Option subject to all of the terms and provisions hereof. Optionee has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully
understands all provisions of the Option. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or this Option. Optionee further agrees to
notify the Company upon any change in the residence address indicated below. 
  

							
	Dated:	 	  
	 		 	  

		 		 		 	OPTIONEE
				
		 		 		 	Residence Address:

  
 7 

 EXHIBIT A 

FATE THERAPEUTICS, INC. 
 2007 EQUITY INCENTIVE PLAN 
 EXERCISE NOTICE 

Fate Therapeutics, Inc. 
 Attention: Stock
Administration 
 1. Exercise of Option. Effective as of today,
            ,         , the undersigned (“Optionee”) hereby elects to exercise Optionee’s option to purchase
                 shares of the Common Stock (the “Shares”) of Fate Therapeutics, Inc., a Delaware corporation (the “Company”), under and pursuant to
the Fate Therapeutics, Inc. 2007 Equity Incentive Plan, as amended from time to time (the “Plan”) and the Stock Option Agreement dated
                     (the “Option Agreement”). Capitalized terms used herein without definition shall have the meanings given in the Option
Agreement. 
  

					
	Date of Grant:	 		  	  

			
	Vesting Commencement Date:	 		  	  

			
	Number of Shares as to which Option is Exercised:	 		  	  

			
	Exercise Price per Share:	 		  	$            
			
	Total Exercise Price:	 		  	$            
			
	Certificate to be issued in name of:	 		  	  

			
	Cash Payment delivered herewith:	 	 ̈	  	$            
			
	Other form of consideration delivered herewith:	 	 ̈	  	 Form of Consideration:

$            

  

					
	Type of Option:	  	 ̈  Incentive Stock Option	  	x  Non-Qualified Stock Option

 2. Representations of Optionee. Optionee acknowledges that Optionee has received, read and
understood the Plan and the Option Agreement. Optionee agrees to abide by and be bound by their terms and conditions. 
 3.
Rights as Stockholder. Until the stock certificate evidencing Shares purchased pursuant to the exercise of the Option is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to Shares subject to the Option, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock
certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 13 of the Plan.

 Optionee shall enjoy rights as a stockholder until such time as Optionee disposes of the
Shares or the Company and/or its assignee(s) exercises the Right of First Refusal (as defined below) hereunder. Upon such exercise, Optionee shall have no further rights as a holder of the Shares so purchased except the right to receive payment for
the Shares so purchased in accordance with the provisions of this Agreement, and Optionee shall forthwith cause the certificate(s) evidencing the Shares so purchased to be surrendered to the Company for transfer or cancellation. 

4. Optionee’s Rights to Transfer Shares. 
 (a) Company’s Right of First Refusal. Before any Shares held by Optionee or any permitted transferee (each, a “Holder”) may be sold, pledged, assigned, hypothecated, transferred, or
otherwise disposed of (each, a “Transfer”), the Company or its assignee(s) shall have a right of first refusal to purchase the Shares proposed to be Transferred on the terms and conditions set forth in this Section 4 (the “Right
of First Refusal”). 
 (i) Notice of Proposed Transfer. In the event any Holder desires to Transfer any Shares, the
Holder shall deliver to the Company a written notice (the “Notice”) stating: (w) the Holder’s bona fide intention to sell or otherwise Transfer such Shares; (x) the name of each proposed purchaser or other transferee
(“Proposed Transferee”); (y) the number of Shares to be Transferred to each Proposed Transferee; and (z) the bona fide cash price or other consideration for which the Holder proposes to Transfer the Shares (the “Offered
Price”), and the Holder shall offer such Shares at the Offered Price to the Company or its assignee(s). 
 (ii)
Exercise of Right of First Refusal. Within thirty (30) days after receipt of the Notice, the Company and/or its assignee(s) may elect in writing to purchase all, but not less than all, of the Shares proposed to be Transferred to any one
or more of the Proposed Transferees. The purchase price shall be determined in accordance with Section 4(iii) hereof. 

(iii) Purchase Price. The purchase price (“Purchase Price”) for the Shares repurchased under this Section 4 shall
be the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board in good faith. 

(iv) Payment. Payment of the Purchase Price shall be made, at the option of the Company or its assignee(s), in cash (by check),
by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination thereof within thirty (30) days after receipt of the Notice
or in the manner and at the times mutually agreed to by the Company and the Holder. 
 (v) Holder’s Right to
Transfer. If all of the Shares proposed in the Notice to be Transferred are not purchased by the Company and/or its assignee(s) as provided in this Section 4, then the Holder may sell or otherwise Transfer such Shares to that Proposed
Transferee at the Offered Price or at a higher price, provided that such sale or other Transfer is consummated within one hundred twenty (120) days after the date of the Notice and provided

  
 2 

 
further that any such sale or other Transfer is effected in accordance with any applicable securities laws and the Proposed Transferee agrees in writing that the provisions of this Section 4
shall continue to apply to the Shares in the hands of such Proposed Transferee. If the Shares described in the Notice are not Transferred to the Proposed Transferee within such 120-day period, or if the Holder proposes to change the price or other
terms to make them more favorable to the Proposed Transferee, a new Notice shall be given to the Company, and the Company and/or its assignees shall again be offered the Right of First Refusal as provided herein before any Shares held by the Holder
may be sold or otherwise Transferred. 
 (b) Exception for Certain Family Transfers. Anything to the contrary contained
in this Section 4 notwithstanding, the Transfer of any or all of the Shares during the Optionee’s lifetime or upon the Optionee’s death by will or intestacy to the Optionee’s Immediate Family or a trust for the benefit of the
Optionee’s Immediate Family shall be exempt from the Right of First Refusal. As used herein, “Immediate Family” shall mean spouse, lineal descendant or antecedent, father, mother, brother or sister or stepchild (whether or not
adopted). In such case, the transferee or other recipient shall receive and hold the Shares so Transferred subject to the provisions of this Section 4 (including the Right of First Refusal) and there shall be no further Transfer of such Shares
except in accordance with the terms of this Section 4. 
 (c) Assignment. The right of the Company to purchase any
part of the Shares may be assigned in whole or in part to any stockholder or stockholders of the Company or other persons or organizations. 
 (d) Termination of Right of First Refusal. The Right of First Refusal shall terminate as to all Shares upon the earlier of (i) a sale of Common Stock of the Company to the general public
pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended (a “Public Offering”) or (ii) the completion of a Liquidation (as defined in
the Company’s Certificate of Incorporation, as the same may be amended and/or restated from time to time). 
 5.
Transfer Restrictions. Any transfer or sale of the Shares is subject to restrictions on transfer imposed by any applicable state and federal securities laws. Any Transfer or attempted Transfer of any of the Shares not in accordance with the
terms of this Agreement, including the Right of First Refusal provided in this Agreement, shall be void and the Company may enforce the terms of this Agreement by stop transfer instructions or similar actions by the Company and its agents or
designees. 
 6. Tax Consultation. Optionee understands that Optionee may suffer adverse tax consequences as a result of
Optionee’s purchase or disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection with the purchase or disposition of the Shares and that Optionee is not relying on
the Company for any tax advice. 

  
 3 

 7. Restrictive Legends and Stop-Transfer
Orders. 
 (a) Legends. Optionee understands and agrees that the Company shall cause the legends set forth below or
legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by state or federal securities laws: 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
HYPOTHECATION IS IN COMPLIANCE THEREWITH. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON
TRANSFER AND RIGHT OF FIRST REFUSAL OPTIONS HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.
SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES. 
 (b) Stop-Transfer Notices. Optionee agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer
agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 
 (c) Refusal to Transfer. The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this
Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred. 

8. Successors and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this
Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Optionee and his or her heirs, executors, administrators, successors
and assigns. 
 9. Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by
Optionee or by the Company forthwith to the Company’s Board of Directors or committee thereof that is responsible for the administration of the Plan (the “Administrator”), which shall review such dispute at its next regular meeting.
The resolution of such a dispute by the Administrator shall be final and binding on the Company and on Optionee. 

  
 4 

 10. Governing Law; Severability. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware excluding that body of law pertaining to conflicts of law. Should any provision of this Agreement be determined by a court of law to be illegal or unenforceable, the other provisions shall
nevertheless remain effective and shall remain enforceable. 
 11. Notices. Any notice required or permitted hereunder
shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with postage and fees prepaid, addressed to the other party at its address as shown below beneath its
signature, or to such other address as such party may designate in writing from time to time to the other party. 
 12.
Further Instruments. The Optionee hereby agrees to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Agreement including, without limitation, the
Investment Representation Statement in the form attached to the Option Agreement as Exhibit B. 
 13. Delivery of
Payment. The Optionee herewith delivers to the Company the full Exercise Price for the Shares, as well as any applicable withholding tax. 
 14. Drag-Along Transactions. Optionee hereby agrees to the following: 
 (a)
In the event of an Approved Transaction (as defined in that certain Amended and Restated Voting Agreement dated May 4, 2012, by and among the Company and the stockholders listed as parties thereto, as the same may be amended and/or restated
from time to time (the “Voting Agreement”)), Optionee shall be bound by and shall comply with all terms and conditions contained in Section 4 of the Voting Agreement to the same extent as the Founders (as defined in the Voting
Agreement) are bound thereunder. 
 (b) In addition to and notwithstanding the foregoing, in the event the holders of a majority
of the outstanding shares of equity securities of the Company (the “Majority Holders”) determine to sell or otherwise dispose of all or substantially all of the assets of the Company or all or fifty percent (50%) or more of the
capital stock of the Company, in each case in a transaction constituting a change in control of the Company, to any third party, or to cause the Company to merge with or into or consolidate with any third party (in each case, the “Buyer”)
in a bona fide negotiated transaction (a “Sale”), Optionee shall, at the request of the Company, (i) sell, transfer and deliver, or cause to be sold, transferred and delivered, to the Buyer, Optionee’s Shares (including for this
purpose all of Optionee’s Shares that presently or as a result of any such transaction may be acquired upon the exercise of the Option (following the payment of the exercise price therefor)) on substantially the same terms applicable to the
Majority Holders (with appropriate adjustments to reflect the conversion of convertible securities, the redemption of redeemable securities and the exercise of exercisable securities as well as the relative preferences and priorities of preferred
stock) and (ii) execute and deliver such instruments of conveyance and transfer and take such other action, including voting such Shares in favor of any Sale proposed by the Majority Holders and executing any purchase agreements, merger
agreements, indemnity agreements, escrow agreements or related documents as the Majority Holders or the Buyer may reasonably require in order to carry out the terms and provisions of this Section 14(b). 

(c) The provisions set forth in Sections 14(a) and 14(b) will terminate upon the earlier to occur of (i) a Public Offering or
(ii) the completion of a Liquidation (as defined in the Company’s Certificate of Incorporation, as the same may be amended and/or restated from time to time). 

  
 5 

 15. Entire Agreement. The Plan and Option Agreement are incorporated herein by
reference. This Agreement, the Plan, the Option Agreement and the Investment Representation Statement constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Optionee
with respect to the subject matter hereof. 
  

									
	Accepted by:	 		 	Submitted by:
			
	FATE THERAPEUTICS, INC.	 		 	OPTIONEE
				
	By:	 	  
	 		 	  

		 		 		 	Optionee	  	
	Name:	 	  
	 		 		  	
					
	Title:	 	  
	 		 	Address:	  	  

		 		 		 		  	  

  
 6 

 EXHIBIT B 

INVESTMENT REPRESENTATION STATEMENT 
  

					
	OPTIONEE	  	:	    	
			
	COMPANY	  	:	    	Fate Therapeutics, Inc.
			
	SECURITY	  	:	    	Common Stock
			
	AMOUNT	  	:	    	
			
	DATE	  	:	    	

 In connection with the purchase of the above-listed shares of Common Stock (the “Securities”)
of Fate Therapeutics, Inc., a Delaware corporation (the “Company”), the undersigned (“Optionee”) represents to the Company the following: 
 (a) Optionee is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire
the Securities. Optionee is acquiring these Securities for investment for Optionee’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of
1933, as amended (the “Securities Act”). 
 (b) Optionee acknowledges and understands that the Securities constitute
“restricted securities” under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of
Optionee’s investment intent as expressed herein. Optionee understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Optionee’s representation was predicated
solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year
or any other fixed period in the future. Optionee further understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Optionee
further acknowledges and understands that the Company is under no obligation to register the Securities. Optionee understands that the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the
Securities unless they are registered or such registration is not required in the opinion of counsel satisfactory to the Company and any other legend required under applicable state securities laws. 

(c) Optionee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in
substance, permit limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to 

 
the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to Optionee, the exercise will be exempt
from registration under the Securities Act. In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), ninety (90) days
thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, subject to the satisfaction of certain of the conditions specified by Rule 144, including: (1) the
resale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market maker (as this term is defined under the Exchange Act); and, in the case of an affiliate, (2) the
availability of certain public information about the Company, (3) the amount of Securities being sold during any three (3) month period not exceeding the limitations specified in Rule 144(e), and (4) the timely filing of a Form
144, if applicable. 
 In the event that the Company does not qualify under Rule 701 at the time of grant of the Option,
then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which may require the resale to occur not less than one year after the later of the date the Securities were sold by the Company or
the date the Securities were sold by an affiliate of the Company, within the meaning of Rule 144, subject to additional limitations in the case of a resale by an affiliate. 

(d) Optionee further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied,
registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange
Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden of proof in establishing that an
exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. Optionee understands that no assurances can be given that any such
other registration exemption will be available in such event. 
  

	
	Signature of Optionee:
	
	  

	Optionee

 Date:
                    ,              

  
 2 

 FATE THERAPEUTICS, INC. 

2007 EQUITY INCENTIVE PLAN 
 STOCK OPTION AGREEMENT 
 Pursuant to its 2007 Equity Incentive Plan, as
amended from time to time (the “Plan”), Fate Therapeutics, Inc., a Delaware corporation (the “Company”), hereby grants to the Optionee listed below (“Optionee”), an option to purchase the number of shares of the
Company’s Common Stock set forth below, subject to the terms and conditions of the Plan and this Stock Option Agreement (this “Option Agreement”). Unless otherwise defined herein, the terms defined in the Plan shall have the same
defined meanings in this Option Agreement. 
  

	I.	NOTICE OF STOCK OPTION GRANT 

  

			
	Optionee:	 	  

		
	Date of Grant:	 	  

		
	Vesting Commencement Date	 	  

		
	Exercise Price per Share:	 	  

		
	Total Number of Shares Granted:	 	  

		
	Total Exercise Price:	 	  

		
	Term/Expiration Date:	 	  

  

					
	Type of Option:	  	x  Incentive Stock Option	  	 ̈  Non-Qualified Stock Option
		
	Vesting Schedule:	  	 The Shares subject to this Option shall vest according to the following schedule:

 
 [Twenty-five percent (25%) of the Shares subject to the Option (rounded down to the
next whole number of shares) shall be vested on the first (1st) anniversary of the Vesting Commencement Date and 1/48th of the Shares subject to the Option shall vest monthly thereafter so that one hundred percent (100%) of the Shares subject to the Option are vested on the fourth anniversary of the Vesting Commencement
Date.]

		
	Termination Period:	  	This Option may be exercised, to the extent vested, for three (3) months after Optionee ceases to be a Service Provider, or such longer period as may be applicable
upon the death or disability of Optionee as provided herein (or, if not provided herein, then as provided in the Plan), but in no event later than the Term/Expiration Date as set forth above.

	II.	AGREEMENT 

 1.
Grant of Option. The Company hereby grants to the Optionee an Option to purchase the number of shares of Common Stock (the “Shares”) set forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant
(the “Exercise Price”). Notwithstanding anything to the contrary anywhere else in this Option Agreement, this grant of an Option is subject to the terms, definitions and provisions of the Plan, which is incorporated herein by reference.

 If designated in the Notice of Grant as an Incentive Stock Option, this Option is intended to qualify as an Incentive Stock
Option as defined in Section 422 of the Code; provided, however, that to the extent that the aggregate Fair Market Value of the Common Stock with respect to which Incentive Stock Options (within the meaning of Code Section 422, but without
regard to Code Section 422(d)), including the Option, are exercisable for the first time by Optionee during any calendar year (under the Plan and all other incentive stock option plans of the Company or any Subsidiary) exceeds $100,000, such
options shall be treated as not qualifying under Code Section 422, but rather shall be treated as Non-Qualified Stock Options to the extent required by Code Section 422. The rule set forth in the preceding sentence shall be applied by
taking options into account in the order in which they were granted. For purposes of these rules, the Fair Market Value of the Common Stock shall be determined as of the time the option with respect to such stock is granted. 

2. Exercise of Option. This Option is exercisable as follows: 

(a) Right to Exercise. 
 (i) This Option shall be exercisable cumulatively according to the vesting schedule set out in the Notice of Grant. For purposes of this Option Agreement, Shares subject to this Option shall vest based on
Optionee’s continued status as a Service Provider. 
 (ii) This Option may not be exercised for a fraction of a Share.

 (iii) In the event of Optionee’s death, disability or other termination of the Optionee’s status as a Service
Provider, the exercisability of the Option shall be governed by Sections 7, 8 and 9 hereof. 
 (iv) In no event may this
Option be exercised after the Expiration Date of this Option as set forth in the Notice of Grant. 
 (b) Method of
Exercise. This Option shall be exercisable by written notice to the Company (in the form attached as Exhibit A) (the “Exercise Notice”). The Exercise Notice shall state the number of Shares for which the Option is being
exercised, and such other representations and agreements with respect to such Shares of Common Stock as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice shall be signed by Optionee and shall be delivered in
person or by certified mail to the Secretary of the Company. The Exercise Notice shall be accompanied by payment of the Exercise Price, including payment of any applicable withholding tax. 

  
 2 

 No Shares shall be issued pursuant to the exercise of an Option unless such issuance and
such exercise comply with all relevant provisions of law and the requirements of any stock exchange upon which the Shares may then be listed. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to Optionee on
the date on which the Option is exercised with respect to such Shares. 
 3. Optionee’s Representations. If the
Shares purchasable pursuant to the exercise of this Option have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), at the time this Option is exercised, Optionee shall, if required by the Company,
concurrently with the exercise of all or any portion of this Option, deliver to the Company his or her Investment Representation Statement in the form attached hereto as Exhibit B. 

4. Lock-Up Period. Optionee hereby agrees that if so requested by the Company or any representative of the underwriters (the
“Managing Underwriter”) in connection with any registration of the offering of any securities of the Company under the Securities Act, Optionee shall not sell or otherwise transfer any Shares or other securities of the Company during
the 180-day period (or such longer period as may be requested in writing by the Managing Underwriter and agreed to in writing by the Company) (the “Market Standoff Period”) following the effective
date of a registration statement of the Company filed under the Securities Act; provided, however, that such restriction shall apply only to the first registration statement of the Company to become effective under the Securities Act that
includes securities to be sold on behalf of the Company to the public in an underwritten public offering under the Securities Act. The Company may impose stop-transfer instructions with respect to securities
subject to the foregoing restrictions until the end of such Market Standoff Period and these restrictions shall be binding on any transferee of such Shares. Notwithstanding the foregoing, the 180-day period may be extended for up to such number of
additional days as is deemed necessary by the Company or the Managing Underwriter to continue coverage by research analysts in accordance with NASD Rule 2711 or any successor rule. 

5. Method of Payment. Payment of the Exercise Price shall be by any of the following, or a combination thereof, at the election of
the Optionee: 
 (a) cash; 
 (b) check; 
 (c) with the consent of the Administrator, a full recourse promissory
note bearing interest (at no less than such rate as is a market rate of interest and which then precludes the imputation of interest under the Code), payable upon such terms as may be prescribed by the Administrator and structured to comply with
Applicable Laws; 
 (d) with the consent of the Administrator, surrender of other Shares of Common Stock of the Company which
(A) in the case of Shares acquired from the Company, have been owned by Optionee for more than six (6) months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the Exercise Price of the
Shares as to which the Option is being exercised; 

  
 3 

 (e) with the consent of the Administrator, surrendered Shares issuable upon the exercise of
the Option having a Fair Market Value on the date of exercise equal to the aggregate Exercise Price of the Option or exercised portion thereof; 
 (f) with the consent of the Administrator, property of any kind which constitutes good and valuable consideration; 
 (g) following the Public Trading Date, with the consent of the Administrator, delivery of a notice that the Optionee has placed a market sell order with a broker with respect to Shares then issuable upon
exercise of the Option and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the aggregate Exercise Price; provided, that payment of such proceeds is then made to the
Company upon settlement of such sale; or 
 (h) with the consent of the Administrator, any combination of the foregoing methods
of payment. 
 6. Restrictions on Exercise. This Option may not be exercised until the Plan has been approved by the
stockholders of the Company. If the issuance of Shares upon such exercise or if the method of payment for such Shares would constitute a violation of any applicable federal or state securities or other law or regulation, then the Option may also not
be exercised. The Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation before allowing the Option to be exercised. 

7. Termination of Relationship. If Optionee ceases to be a Service Provider (other than by reason of Optionee’s death or the
total and permanent disability of the Optionee within the meaning of Code Section 22(e)(3)), Optionee may exercise this Option during the Termination Period set out in the Notice of Grant, to the extent the Option was vested on the date on
which Optionee ceases to be a Service Provider. To the extent that the Option is not vested on the date on which Optionee ceases to be a Service Provider, or if Optionee does not exercise this Option within the time specified herein, the Option
shall terminate. 
 8. Disability of Optionee. If Optionee ceases to be a Service Provider as a result of his or her
total and permanent disability within the meaning of Code Section 22(e)(3), Optionee may exercise the Option to the extent the Option was vested at the date on which Optionee ceases to be a Service Provider, but only within twelve
(12) months from such date (and in no event later than the expiration date of the term of this Option as set forth in the Notice of Grant). To the extent that the Option is not vested at the date on which Optionee ceases to be a Service
Provider, or if Optionee does not exercise such Option within the time specified herein, the Option shall terminate. 
 9.
Death of Optionee. If Optionee ceases to be a Service Provider as a result of the death of Optionee, the vested portion of the Option may be exercised at any time within twelve (12) months following the date of death (and in no event
later than the expiration date of the term of this Option as set forth in the Notice of Grant) by Optionee’s estate or by a person who acquires the right to exercise the Option by bequest or inheritance. To the extent that the Option is not
vested on the date of death, or if the Option is not exercised within the time specified herein, the Option shall terminate. 

  
 4 

 10. Non-Transferability of Option. This Option may not be transferred in any manner
except by will or by the laws of descent or distribution. It may be exercised during the lifetime of Optionee only by Optionee. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the
Optionee. 
 11. Term of Option. This Option may be exercised only within the term set out in the Notice of Grant.

 12. Restrictions on Shares. Optionee hereby agrees that Shares purchased upon the exercise of the Option shall be
subject to such terms and conditions as the Administrator shall determine in its sole discretion, including, without limitation, restrictions on the transferability of Shares, and a right of first refusal in favor of the Company with respect to
permitted transfers of Shares. Such terms and conditions may, in the Administrator’s sole discretion, be contained in the Exercise Notice with respect to the Option or in such other agreement as the Administrator shall determine and which the
Optionee hereby agrees to enter into at the request of the Company. 
 13. Drag-Along Transactions. Optionee hereby
agrees to the following: 
 (a) In the event of an Approved Transaction (as defined in that certain Amended and Restated Voting
Agreement dated May 4, 2012, by and among the Company and the stockholders listed as parties thereto, as the same may be amended and/or restated from time to time (the “Voting Agreement”)), Optionee shall be bound by and shall comply
with all terms and conditions contained in Section 4 of the Voting Agreement to the same extent as the Founders (as defined in the Voting Agreement) are bound thereunder. 
 (b) In addition to and notwithstanding the foregoing, in the event the holders of a majority of the outstanding shares of equity securities of the Company (the “Majority Holders”) determine to
sell or otherwise dispose of all or substantially all of the assets of the Company or all or fifty percent (50%) or more of the capital stock of the Company, in each case in a transaction constituting a change in control of the Company, to any
third party, or to cause the Company to merge with or into or consolidate with any third party (in each case, the “Buyer”) in a bona fide negotiated transaction (a “Sale”), Optionee shall, at the request of the Company,
(i) sell, transfer and deliver, or cause to be sold, transferred and delivered, to the Buyer, Optionee’s Shares (including for this purpose all of Optionee’s Shares that presently or as a result of any such transaction may be acquired
upon the exercise of the Option (following the payment of the exercise price therefor)) on substantially the same terms applicable to the Majority Holders (with appropriate adjustments to reflect the conversion of convertible securities, the
redemption of redeemable securities and the exercise of exercisable securities as well as the relative preferences and priorities of preferred stock) and (ii) execute and deliver such instruments of conveyance and transfer and take such other
action, including voting such Shares in favor of any Sale proposed by the Majority Holders and executing any purchase agreements, merger agreements, indemnity agreements, escrow agreements or related documents as the Majority Holders or the Buyer
may reasonably require in order to carry out the terms and provisions of this Section 13(b). 

  
 5 

 (c) The provisions set forth in Sections 13(a) and 13(b) will terminate upon the earlier to
occur of (i) the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act and (ii) the
completion of a Liquidation (as defined in the Company’s Certificate of Incorporation, as the same may be amended and/or restated from time to time). 
 (Signature Page Follows) 

  
 6 

 This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original and all of which shall constitute one document. 
  

			
	FATE THERAPEUTICS, INC.
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

 OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE OPTION HEREOF IS EARNED
ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN
THE COMPANY’S 2007 EQUITY INCENTIVE PLAN, AS AMENDED FROM TIME TO TIME, WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL IT
INTERFERE IN ANY WAY WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE AND WITH OR WITHOUT PRIOR NOTICE. 

Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof.
Optionee hereby accepts this Option subject to all of the terms and provisions hereof. Optionee has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully
understands all provisions of the Option. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or this Option. Optionee further agrees to
notify the Company upon any change in the residence address indicated below. 
  

							
	Dated:	 	  
	  		  	  

		 		  		  	OPTIONEE
				
		 		  		  	Residence Address:

  
 7 

 EXHIBIT A 

FATE THERAPEUTICS, INC. 
 2007 EQUITY INCENTIVE PLAN 
 EXERCISE NOTICE 

Fate Therapeutics, Inc. 
 Attention: Stock
Administration 
 1. Exercise of Option. Effective as of today,
            ,         , the undersigned (“Optionee”) hereby elects to exercise Optionee’s option to purchase
                 shares of the Common Stock (the “Shares”) of Fate Therapeutics, Inc., a Delaware corporation (the “Company”), under and pursuant to
the Fate Therapeutics, Inc. 2007 Equity Incentive Plan, as amended from time to time (the “Plan”) and the Stock Option Agreement dated
                     (the “Option Agreement”). Capitalized terms used herein without definition shall have the meanings given in the Option
Agreement. 
  

					
	Date of Grant:	  		  	  

			
	Vesting Commencement Date:	  		  	  

			
	Number of Shares as to which Option is Exercised:	  		  	  

			
	Exercise Price per Share:	  		  	$            
			
	Total Exercise Price:	  		  	$            
			
	Certificate to be issued in name of:	  		  	  

			
	Cash Payment delivered herewith:	  	 ̈	  	$            
			
	Other form of consideration delivered herewith:	  	 ̈	  	 Form of Consideration:

$            

  

					
	Type of Option:	  	x  Incentive Stock Option	  	 ̈  Non-Qualified Stock Option

 2. Representations of Optionee. Optionee acknowledges that Optionee has received, read and
understood the Plan and the Option Agreement. Optionee agrees to abide by and be bound by their terms and conditions. 
 3.
Rights as Stockholder. Until the stock certificate evidencing Shares purchased pursuant to the exercise of the Option is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to Shares subject to the Option, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock
certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 13 of the Plan.

 Optionee shall enjoy rights as a stockholder until such time as Optionee disposes of the
Shares or the Company and/or its assignee(s) exercises the Right of First Refusal (as defined below) hereunder. Upon such exercise, Optionee shall have no further rights as a holder of the Shares so purchased except the right to receive payment for
the Shares so purchased in accordance with the provisions of this Agreement, and Optionee shall forthwith cause the certificate(s) evidencing the Shares so purchased to be surrendered to the Company for transfer or cancellation. 

4. Optionee’s Rights to Transfer Shares. 
 (a) Company’s Right of First Refusal. Before any Shares held by Optionee or any permitted transferee (each, a “Holder”) may be sold, pledged, assigned, hypothecated, transferred, or
otherwise disposed of (each, a “Transfer”), the Company or its assignee(s) shall have a right of first refusal to purchase the Shares proposed to be Transferred on the terms and conditions set forth in this Section 4 (the “Right
of First Refusal”). 
 (i) Notice of Proposed Transfer. In the event any Holder desires to Transfer any Shares, the
Holder shall deliver to the Company a written notice (the “Notice”) stating: (w) the Holder’s bona fide intention to sell or otherwise Transfer such Shares; (x) the name of each proposed purchaser or other transferee
(“Proposed Transferee”); (y) the number of Shares to be Transferred to each Proposed Transferee; and (z) the bona fide cash price or other consideration for which the Holder proposes to Transfer the Shares (the “Offered
Price”), and the Holder shall offer such Shares at the Offered Price to the Company or its assignee(s). 
 (ii)
Exercise of Right of First Refusal. Within thirty (30) days after receipt of the Notice, the Company and/or its assignee(s) may elect in writing to purchase all, but not less than all, of the Shares proposed to be Transferred to any one
or more of the Proposed Transferees. The purchase price shall be determined in accordance with Section 4(iii) hereof. 

(iii) Purchase Price. The purchase price (“Purchase Price”) for the Shares repurchased under this Section 4 shall
be the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board in good faith. 

(iv) Payment. Payment of the Purchase Price shall be made, at the option of the Company or its assignee(s), in cash (by check),
by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination thereof within thirty (30) days after receipt of the Notice
or in the manner and at the times mutually agreed to by the Company and the Holder. 
 (v) Holder’s Right to
Transfer. If all of the Shares proposed in the Notice to be Transferred are not purchased by the Company and/or its assignee(s) as provided in this Section 4, then the Holder may sell or otherwise Transfer such Shares to that Proposed
Transferee at the Offered Price or at a higher price, provided that such sale or other Transfer is consummated within one hundred twenty (120) days after the date of the Notice and provided

  
 2 

 
further that any such sale or other Transfer is effected in accordance with any applicable securities laws and the Proposed Transferee agrees in writing that the provisions of this Section 4
shall continue to apply to the Shares in the hands of such Proposed Transferee. If the Shares described in the Notice are not Transferred to the Proposed Transferee within such 120-day period, or if the Holder proposes to change the price or other
terms to make them more favorable to the Proposed Transferee, a new Notice shall be given to the Company, and the Company and/or its assignees shall again be offered the Right of First Refusal as provided herein before any Shares held by the Holder
may be sold or otherwise Transferred. 
 (b) Exception for Certain Family Transfers. Anything to the contrary contained
in this Section 4 notwithstanding, the Transfer of any or all of the Shares during the Optionee’s lifetime or upon the Optionee’s death by will or intestacy to the Optionee’s Immediate Family or a trust for the benefit of the
Optionee’s Immediate Family shall be exempt from the Right of First Refusal. As used herein, “Immediate Family” shall mean spouse, lineal descendant or antecedent, father, mother, brother or sister or stepchild (whether or not
adopted). In such case, the transferee or other recipient shall receive and hold the Shares so Transferred subject to the provisions of this Section 4 (including the Right of First Refusal) and there shall be no further Transfer of such Shares
except in accordance with the terms of this Section 4. 
 (c) Assignment. The right of the Company to purchase any
part of the Shares may be assigned in whole or in part to any stockholder or stockholders of the Company or other persons or organizations. 
 (d) Termination of Right of First Refusal. The Right of First Refusal shall terminate as to all Shares upon the earlier of (i) a sale of Common Stock of the Company to the general public
pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended (a “Public Offering”) or (ii) the completion of a Liquidation (as defined in
the Company’s Certificate of Incorporation, as the same may be amended and/or restated from time to time). 
 5.
Transfer Restrictions. Any transfer or sale of the Shares is subject to restrictions on transfer imposed by any applicable state and federal securities laws. Any Transfer or attempted Transfer of any of the Shares not in accordance with the
terms of this Agreement, including the Right of First Refusal provided in this Agreement, shall be void and the Company may enforce the terms of this Agreement by stop transfer instructions or similar actions by the Company and its agents or
designees. 
 6. Tax Consultation. Optionee understands that Optionee may suffer adverse tax consequences as a result of
Optionee’s purchase or disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection with the purchase or disposition of the Shares and that Optionee is not relying on
the Company for any tax advice. 

  
 3 

 7. Restrictive Legends and Stop-Transfer
Orders. 
 (a) Legends. Optionee understands and agrees that the Company shall cause the legends set forth below or
legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by state or federal securities laws: 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
HYPOTHECATION IS IN COMPLIANCE THEREWITH. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON
TRANSFER AND RIGHT OF FIRST REFUSAL OPTIONS HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.
SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES. 
 (b) Stop-Transfer Notices. Optionee agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer
agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 
 (c) Refusal to Transfer. The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this
Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred. 

8. Successors and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this
Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Optionee and his or her heirs, executors, administrators, successors
and assigns. 
 9. Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by
Optionee or by the Company forthwith to the Company’s Board of Directors or committee thereof that is responsible for the administration of the Plan (the “Administrator”), which shall review such dispute at its next regular meeting.
The resolution of such a dispute by the Administrator shall be final and binding on the Company and on Optionee. 

  
 4 

 10. Governing Law; Severability. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware excluding that body of law pertaining to conflicts of law. Should any provision of this Agreement be determined by a court of law to be illegal or unenforceable, the other provisions shall
nevertheless remain effective and shall remain enforceable. 
 11. Notices. Any notice required or permitted hereunder
shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with postage and fees prepaid, addressed to the other party at its address as shown below beneath its
signature, or to such other address as such party may designate in writing from time to time to the other party. 
 12.
Further Instruments. The Optionee hereby agrees to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Agreement including, without limitation, the
Investment Representation Statement in the form attached to the Option Agreement as Exhibit B. 
 13. Delivery of
Payment. The Optionee herewith delivers to the Company the full Exercise Price for the Shares, as well as any applicable withholding tax. 
 14. Drag-Along Transactions. Optionee hereby agrees to the following: 
 (a)
In the event of an Approved Transaction (as defined in that certain Amended and Restated Voting Agreement dated May 4, 2012, by and among the Company and the stockholders listed as parties thereto, as the same may be amended and/or restated
from time to time (the “Voting Agreement”)), Optionee shall be bound by and shall comply with all terms and conditions contained in Section 4 of the Voting Agreement to the same extent as the Founders (as defined in the Voting
Agreement) are bound thereunder. 
 (b) In addition to and notwithstanding the foregoing, in the event the holders of a majority
of the outstanding shares of equity securities of the Company (the “Majority Holders”) determine to sell or otherwise dispose of all or substantially all of the assets of the Company or all or fifty percent (50%) or more of the
capital stock of the Company, in each case in a transaction constituting a change in control of the Company, to any third party, or to cause the Company to merge with or into or consolidate with any third party (in each case, the “Buyer”),
in a bona fide negotiated transaction (a “Sale”), Optionee shall, at the request of the Company, (i) sell, transfer and deliver, or cause to be sold, transferred and delivered, to the Buyer, Optionee’s Shares (including
for this purpose all of Optionee’s Shares that presently or as a result of any such transaction may be acquired upon the exercise of the Option (following the payment of the exercise price therefor)) on substantially the same terms applicable
to the Majority Holders (with appropriate adjustments to reflect the conversion of convertible securities, the redemption of redeemable securities and the exercise of exercisable securities as well as the relative preferences and priorities of
preferred stock) and (ii) execute and deliver such instruments of conveyance and transfer and take such other action, including voting such Shares in favor of any Sale proposed by the Majority Holders and executing any purchase agreements,
merger agreements, indemnity agreements, escrow agreements or related documents as the Majority Holders or the Buyer may reasonably require in order to carry out the terms and provisions of this Section 14(b). 

(c) The provisions set forth in Sections 14(a) and 14(b) will terminate upon the earlier to occur of (i) a Public Offering or
(ii) the completion of a Liquidation (as defined in the Company’s Certificate of Incorporation, as the same may be amended and/or restated from time to time). 

  
 5 

 15. Entire Agreement. The Plan and Option Agreement are incorporated herein by
reference. This Agreement, the Plan, the Option Agreement and the Investment Representation Statement constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Optionee
with respect to the subject matter hereof. 
  

									
	Accepted by:	 		 	Submitted by:
			
	FATE THERAPEUTICS, INC.	 		 	OPTIONEE
				
	By:	 	  
	 		 	  

		 		 		 	Optionee	  	
	Name:	 	  
	 		 		  	
					
	Title:	 	  
	 		 	Address:	  	  

		 		 		 		  	  

  
 6 

 EXHIBIT B 

INVESTMENT REPRESENTATION STATEMENT 
  

					
	OPTIONEE	  	:	    	
			
	COMPANY	  	:	    	Fate Therapeutics, Inc.
			
	SECURITY	  	:	    	Common Stock
			
	AMOUNT	  	:	    	
			
	DATE	  	:	    	

 In connection with the purchase of the above-listed shares of Common Stock (the “Securities”)
of Fate Therapeutics, Inc., a Delaware corporation (the “Company”), the undersigned (“Optionee”) represents to the Company the following: 
 (a) Optionee is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire
the Securities. Optionee is acquiring these Securities for investment for Optionee’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of
1933, as amended (the “Securities Act”). 
 (b) Optionee acknowledges and understands that the Securities constitute
“restricted securities” under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of
Optionee’s investment intent as expressed herein. Optionee understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Optionee’s representation was predicated
solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year
or any other fixed period in the future. Optionee further understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Optionee
further acknowledges and understands that the Company is under no obligation to register the Securities. Optionee understands that the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the
Securities unless they are registered or such registration is not required in the opinion of counsel satisfactory to the Company and any other legend required under applicable state securities laws. 

(c) Optionee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in
substance, permit limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to 

 
the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to the Optionee, the exercise will be exempt
from registration under the Securities Act. In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), ninety (90) days
thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, subject to the satisfaction of certain of the conditions specified by Rule 144, including: (1) the
resale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market maker (as this term is defined under the Exchange Act); and, in the case of an affiliate, (2) the
availability of certain public information about the Company, (3) the amount of Securities being sold during any three (3) month period not exceeding the limitations specified in Rule 144(e), and (4) the timely filing of a Form
144, if applicable. 
 In the event that the Company does not qualify under Rule 701 at the time of grant of the Option,
then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which may require the resale to occur not less than one year after the later of the date the Securities were sold by the Company or
the date the Securities were sold by an affiliate of the Company, within the meaning of Rule 144, subject to additional limitations in the case of a resale by an affiliate. 

(d) Optionee further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied,
registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange
Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 will have a substantial burden of proof in establishing that an
exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. Optionee understands that no assurances can be given that any such
other registration exemption will be available in such event. 
  

	
	Signature of Optionee:
	
	  

	Optionee

 Date:
                    ,              

  
 2 

 FATE THERAPEUTICS, INC. 

RESTRICTED COMMON STOCK PURCHASE AGREEMENT 
 This Restricted Common Stock Purchase Agreement (the “Agreement”) is made as of [            , 201  ] by and between
Fate Therapeutics, Inc., a Delaware corporation (the “Company”), and [            ] (“Purchaser”). Capitalized terms used but not otherwise defined herein
shall have the meanings ascribed to them in the Company’s 2007 Equity Incentive Plan, as the same may be amended and/or restated from time to time in accordance with the terms thereof (the “Plan”). 

1. Sale of Stock. Subject to the terms and conditions of this Agreement, on the Purchase Date (as defined below) the Company will
issue and sell to Purchaser, and Purchaser agrees to purchase from the Company, [                ] shares of the Company’s Common Stock (the
“Shares”) at a purchase price of $[            ] per Share for a total purchase price of $[            ]. The
term “Shares” refers to the purchased Shares and all securities received in replacement of or in connection with the Shares pursuant to stock dividends or splits, all securities received in replacement of the Shares in a recapitalization,
merger, reorganization, exchange or the like, all new, substituted or additional securities or other properties to which Purchaser is entitled by reason of Purchaser’s ownership of the Shares, and any other shares of Company Common Stock or
other securities that become subject to the terms of this Agreement. The Shares will be held as community property. 
 2.
Purchase. The purchase and sale of the Shares under this Agreement shall occur at the principal office of the Company simultaneously with the execution of this Agreement by the parties or on such other date as the Company and Purchaser shall
agree (the “Purchase Date”). On the Purchase Date, the Company will deliver to Purchaser a certificate representing the Shares to be purchased by Purchaser (which shall be issued in Purchaser’s name) against payment of the
purchase price therefor by Purchaser by (a) check made payable to the Company, (b) cancellation of indebtedness of the Company to Purchaser, or (c) by a combination of the foregoing. 

3. Limitations on Transfer. In addition to any other limitation on transfer created by applicable securities laws, Purchaser shall
not assign, encumber or dispose of any interest in the Shares while the Shares are subject to the Company’s Repurchase Option (as defined below). After any Shares have been released from the Repurchase Option, Purchaser shall not assign,
encumber or dispose of any interest in such Shares except in compliance with the provisions below and applicable securities laws. 
 (a) Repurchase Option. 
 (i) In the event of the voluntary or involuntary
termination of Purchaser’s employment or consulting relationship with the Company for any reason (including death or disability), with or without cause, the Company shall upon the date of such termination (the “Termination
Date”) have an irrevocable, exclusive option (the “Repurchase Option”) to repurchase all or any portion of the Shares held by Purchaser as of the Termination Date which have not yet been released from the Company’s
Repurchase Option at the original purchase price per Share specified in Section 1 (adjusted for any stock splits, stock dividends and the like). 

 (ii) The Repurchase Option shall be exercised, if at all, by the Company by written notice
to Purchaser or Purchaser’s executor within six (6) months following the Termination Date and, at the Company’s option, (A) by delivery to Purchaser or Purchaser’s executor with such notice of a check in the amount of the
purchase price for the Shares being purchased, or (B) by cancellation of indebtedness equal to the purchase price for the Shares being repurchased, or (C) by a combination of (A) and (B) so that the combined payment and
cancellation of indebtedness equals such purchase price. Upon delivery of such notice and payment of the purchase price in any of the ways described above, the Company shall become the legal and beneficial owner of the Shares being repurchased and
all rights and interest therein or related thereto, and the Company shall have the right to transfer to its own name the number of Shares being repurchased by the Company, without further action by Purchaser. 

(iii) [Note: Sample time-based vesting provision included here; subject to revision based on individual vesting
terms.][            ] of the Shares initially shall be subject to the Repurchase Option. [Subject to subsection (iv) below,]
[            ] of the Shares (representing [            ] of the Shares, rounded down to the next whole number of shares) shall
vest and be released from the Company’s Repurchase Option on a monthly basis beginning with the date one month after [            ] (the “Vesting Commencement Date”);
provided, that on the date [                    ] months after the Vesting Commencement Date,
[                    ] Shares shall vest and be released from the Company’s Repurchase Option, such that all Shares shall be vested and released
from the Company’s Repurchase Option on the [            ] anniversary of the Vesting Commencement Date, in any event, subject to Purchaser continuing to be a Service Provider to the
Company through each such vesting date (the “Vesting Schedule”). 
 (iv) [Note: Sample
acceleration provision included here; subject to revision based on individual vesting terms.]Notwithstanding anything in this Agreement to the contrary, upon [            ],
[            ] of the Shares then subject to the Repurchase Option shall vest and be released from the Repurchase Option effective as of
[                    ], subject to Purchaser continuing to be a Service Provider to the Company through such time. 

(b) Right of First Refusal. Before any Shares held by Purchaser or any transferee of Purchaser (either being sometimes referred to
herein as the “Holder”) may be sold or otherwise transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall have a right of first refusal to purchase the Shares on the terms and conditions set
forth in this Section 3(b) (the “Right of First Refusal”). 
 (i) Notice of Proposed Transfer. The
Holder of the Shares shall deliver to the Company a written notice (the “Notice”) stating: (A) the Holder’s bona fide intention to sell or otherwise transfer such Shares; (B) the name of each proposed purchaser or
other transferee (“Proposed Transferee”); (C) the number of Shares to be transferred to each Proposed Transferee; and (D) the terms and conditions of each proposed sale or transfer. The Holder shall offer the Shares at the
same price (the “Offered Price”) and upon the same terms (or terms as similar as reasonably possible) to the Company or its assignee(s). 

  
 -2-

 (ii) Exercise of Right of First Refusal. At any time within 30 days after receipt of
the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all or any portion of the Shares proposed to be transferred to any one or more of the Proposed Transferees, at the purchase price
determined in accordance with subsection (iii) below. 
 (iii) Purchase Price. The purchase price
(“Purchase Price”) for the Shares purchased by the Company or its assignee(s) under this Section 3(b) shall be the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board of Directors of the Company in good faith. 
 (iv) Payment. Payment of the Purchase Price shall be made, at the option of the Company or its assignee(s), in cash (by check), by cancellation of all or a portion of any outstanding indebtedness,
or by any combination thereof within 30 days after receipt of the Notice or in the manner and at the times set forth in the Notice. 
 (v) Holder’s Right to Transfer. If all of the Shares proposed in the Notice to be transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided
in this Section 3(b), then the Holder may sell or otherwise transfer such Shares to that Proposed Transferee at the Offered Price or at a higher price, provided that such sale or other transfer is consummated within 60 days after the date of
the Notice and provided further that any such sale or other transfer is effected in accordance with any applicable securities laws and the Proposed Transferee agrees in writing that the provisions of this Section 3 shall continue to apply to
the Shares in the hands of such Proposed Transferee. If the Shares described in the Notice are not transferred to the Proposed Transferee within such period, or if the Holder proposes to change the price or other terms to make them more favorable to
the Proposed Transferee, a new Notice shall be given to the Company, and the Company and/or its assignees shall again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred. 

(vi) Exception for Certain Family Transfers. Anything to the contrary contained in this Section 3(b) notwithstanding, the
transfer of any or all of the Shares during Purchaser’s lifetime or on Purchaser’s death by will or intestacy to Purchaser’s Immediate Family or a trust for the benefit of Purchaser or Purchaser’s Immediate Family shall be exempt
from the provisions of this Section 3(b). “Immediate Family” as used herein shall mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships, or any person sharing the Purchaser’s household (other than a tenant or an employee). In such case, the transferee or other recipient
shall receive and hold the Shares so transferred subject to the provisions of this Section, and there shall be no further transfer of such Shares except in accordance with the terms of this Section 3. 

(c) Involuntary Transfer. 
 (i) Company’s Right to Purchase upon Involuntary Transfer. In the event, at any time after the date of this Agreement, of any transfer by operation of law or other

  
 -3-

 
involuntary transfer (including divorce or death, but excluding in the event of death a transfer to Immediate Family as set forth in Section 3(b)(vi) above) of all or a portion of the Shares
by the record holder thereof, the Company shall have the right to purchase all of the Shares transferred at the greater of the purchase price paid by Purchaser pursuant to this Agreement or the fair market value of the Shares on the date of
transfer. Upon such a transfer, the person acquiring the Shares shall promptly notify the Secretary of the Company of such transfer. The right to purchase such Shares shall be provided to the Company for a period of 30 days following receipt by the
Company of written notice by the person acquiring the Shares. 
 (ii) Price for Involuntary Transfer. With respect to
any stock to be transferred pursuant to Section 3(c)(i), the price per Share shall be a price set by the Board of Directors of the Company that will reflect the current value of the stock in terms of present earnings and future prospects of the
Company. The Company shall notify Purchaser or his or her executor of the price so determined within 30 days after receipt by it of written notice of the transfer or proposed transfer of Shares. However, if Purchaser does not agree with the
valuation as determined by the Board of Directors of the Company, Purchaser shall be entitled to have the valuation determined by an independent appraiser to be mutually agreed upon by the Company and Purchaser and whose fees shall be borne equally
by the Company and Purchaser. 
 (d) Assignment. The right of the Company to purchase any part of the Shares may be
assigned in whole or in part to any stockholder or stockholders of the Company or other persons or organizations. 
 (e)
Restrictions Binding on Transferees. All transferees of Shares or any interest therein will receive and hold such Shares or interest subject to the provisions of this Agreement, including, insofar as applicable, the Repurchase Option. In the
event of any purchase by the Company hereunder where the Shares or interest are held by a transferee, the transferee shall be obligated, if requested by the Company, to transfer the Shares or interest to the Purchaser for consideration equal to the
amount to be paid by the Company hereunder. In the event the Repurchase Option is deemed exercised by the Company pursuant to Section 3(a)(ii) hereof, the Company may deem any transferee to have transferred the Shares or interest to Purchaser
prior to their purchase by the Company, and payment of the purchase price by the Company to such transferee shall be deemed to satisfy Purchaser’s obligation to pay such transferee for such Shares or interest and also to satisfy the
Company’s obligation to pay Purchaser for such Shares or interest. Any sale or transfer of the Shares shall be void unless the provisions of this Agreement are satisfied. 
 (f) Termination of Rights. The Right of First Refusal and the Company’s right to repurchase the Shares in the event of an involuntary transfer pursuant to Section 3(c) above shall
terminate upon the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended (the
“Securities Act”). 
 (g) Lock-Up Period; Agreement. In connection with the initial public offering of
the Company’s securities and upon request of the Company or the underwriters managing such offering of the Company’s securities, each Purchaser agrees not to sell, make any short sale of, loan, grant any option for the purchase of, or
otherwise dispose of any securities of the 

  
 -4-

 
Company, however or whenever acquired (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of
time (not to exceed 180 days but subject to such extension or extensions as may be required by the underwriters in order to publish research reports while complying with the Rule 2711 of the National Association of Securities Dealers, Inc.) from the
effective date of such registration statement as may be requested by the Company or such managing underwriters and to execute an agreement reflecting the foregoing as may be requested by the underwriters at the time of the Company’s initial
public offering. 
 4. Escrow of Unvested Shares. For purposes of facilitating the enforcement of the provisions of
Section 3 above, Purchaser agrees, immediately upon receipt of the certificate(s) for the Shares subject to the Repurchase Option, to deliver such certificate(s), together with an Assignment Separate from Certificate in the form attached to
this Agreement as Exhibit A executed by Purchaser and by Purchaser’s spouse (if required for transfer), in blank, to the Secretary of the Company, or the Secretary’s designee, to hold such certificate(s) and Assignment Separate
from Certificate in escrow and to take all such actions and to effectuate all such transfers and/or releases as are in accordance with the terms of this Agreement. Purchaser hereby acknowledges that the Secretary of the Company, or the
Secretary’s designee, is so appointed as the escrow holder with the foregoing authorities as a material inducement to make this Agreement and that said appointment is coupled with an interest and is accordingly irrevocable. Purchaser agrees
that said escrow holder shall not be liable to any party hereof (or to any other party). The escrow holder may rely upon any letter, notice or other document executed by any signature purported to be genuine and may resign at any time. Purchaser
agrees that if the Secretary of the Company, or the Secretary’s designee, resigns as escrow holder for any or no reason, the Board of Directors of the Company shall have the power to appoint a successor to serve as escrow holder pursuant to the
terms of this Agreement. 
 5. Investment and Taxation Representations. In connection with the purchase of the Shares,
Purchaser represents to the Company the following: 
 (a) Purchaser is aware of the Company’s business affairs and
financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Shares. Purchaser is purchasing the Shares for investment for his or her own account only and not with a
view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act. 
 (b)
Purchaser understands that the Shares have not been registered under the Securities Act by reason of a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Purchaser’s investment intent as
expressed herein. 
 (c) Purchaser understands that the Shares are “restricted securities” under applicable U.S.
federal and state securities laws and that, pursuant to these laws, Purchaser must hold the Shares indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such
registration and qualification requirements is available. Purchaser acknowledges that the Company has no obligation to register or qualify the Shares for resale. Purchaser further acknowledges that if an exemption from registration or qualification
is available, it may be conditioned on various 

  
 -5-

 
requirements including, but not limited to, the time and manner of sale, the holding period for the Shares, and requirements relating to the Company which are outside of the Purchaser’s
control, and which the Company is under no obligation and may not be able to satisfy. 
 (d) Purchaser understands that
Purchaser may suffer adverse tax consequences as a result of Purchaser’s purchase or disposition of the Shares. Purchaser represents that Purchaser has consulted any tax consultants Purchaser deems advisable in connection with the purchase or
disposition of the Shares and that Purchaser is not relying on the Company for any tax advice. 
 6. Restrictive Legends and
Stop-Transfer Orders. 
 (a) Legends. The certificate or certificates representing the Shares shall bear the
following legends (as well as any legends required by applicable state and federal corporate and securities laws): 
  

	 	(i)	THE SHARES 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 SALE OR DISTRIBUTION 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. 

  

	 	(ii)	THE SHARES 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. 

  

	 	(iii)	Any legend required to be placed thereon by any appropriate securities commissioner. 

(b) Stop-Transfer Notices. Purchaser agrees that, in order to ensure compliance with the restrictions referred to herein, the
Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 

(c) Refusal to Transfer. The Company shall not be required (i) to transfer on its books any Shares that have been sold or
otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so
transferred. 

  
 -6-

 (d) Removal of Legend. When all of the following events have occurred, the Shares
then held by Purchaser will no longer be subject to the legend referred to in Section 6(a)(ii): (i) the termination of the Right of First Refusal; (ii) the expiration or termination of the lock-up provisions of Section 3(g) (and
of any agreement entered pursuant to Section 3(g)); and (iii) the expiration or exercise in full of the Repurchase Option. After such time, and upon Purchaser’s request, a new certificate or certificates representing the Shares not
repurchased shall be issued without the legend referred to in Section 6(a)(ii), and delivered to Purchaser. 
 7.
Drag-Along Transactions. Purchaser hereby agrees to the following: 
 (a) In the event of an Approved Transaction (as
defined in that certain Amended and Restated Voting Agreement dated May 4, 2012, by and among the Company and the stockholders listed as parties thereto, as the same may be amended and/or restated from time to time (the “Voting
Agreement”)), Optionee shall be bound by and shall comply with all terms and conditions contained in Section 4 of the Voting Agreement to the same extent as the Founders (as defined in the Voting Agreement) are bound thereunder.

 (b) In addition to and notwithstanding the foregoing, in the event the holders of a majority of the outstanding shares of
equity securities of the Company (the “Majority Holders”) determine to sell or otherwise dispose of all or substantially all of the assets of the Company or all or fifty percent (50%) or more of the capital stock of the
Company, in each case in a transaction constituting a change in control of the Company, to any third party, or to cause the Company to merge with or into or consolidate with any third party (in each case, the “Buyer”) in a bona fide
negotiated transaction (a “Sale”), Purchaser shall, at the request of the Company, (i) sell, transfer and deliver, or cause to be sold, transferred and delivered, to the Buyer, Purchaser’s Shares on substantially the same
terms applicable to the Majority Holders (with appropriate adjustments to reflect the conversion of convertible securities, the redemption of redeemable securities and the exercise of exercisable securities as well as the relative preferences and
priorities of preferred stock) and (ii) execute and deliver such instruments of conveyance and transfer and take such other action, including voting such Shares in favor of any Sale proposed by the Majority Holders and executing any purchase
agreements, merger agreements, indemnity agreements, escrow agreements or related documents as the Majority Holders or the Buyer may reasonably require in order to carry out the terms and provisions of this Section 7(b). 

(c) The provisions set forth in Sections 7(a) and 7(b) will terminate upon the earlier to occur of (i) the first sale of Common
Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act and (ii) the completion of a Liquidation (as defined in the
Company’s Certificate of Incorporation, as the same may be amended and/or restated from time to time). 
 8. No
Employment Rights. Nothing in this Agreement shall affect in any manner whatsoever the right or power of the Company, or a parent or subsidiary of the Company, to terminate Purchaser’s employment or consulting relationship, for any reason,
with or without cause. 

  
 -7-

 9. Section 83(b) Election. Purchaser understands that Section 83(a) of the
Internal Revenue Code of 1986, as amended (the “Code”), taxes as ordinary income the difference between the amount paid for the Shares and the fair market value of the Shares as of the date any restrictions on the Shares lapse. In
this context, “restriction” means the right of the Company to buy back the Shares pursuant to the Repurchase Option set forth in Section 3(a) of this Agreement. Purchaser understands that Purchaser may elect to be taxed at the
time the Shares are purchased, rather than when and as the Repurchase Option expires, by filing an election under Section 83(b) (an “83(b) Election”) of the Code with the Internal Revenue Service within 30 days from the date of
purchase. Even if the fair market value of the Shares at the time of the execution of this Agreement equals the amount paid for the Shares, the election must be made to avoid income under Section 83(a) in the future. Purchaser understands that
failure to file such an election in a timely manner may result in adverse tax consequences for Purchaser. Purchaser further understands that an additional copy of such election form should be filed with his or her federal income tax return for the
calendar year in which the date of this Agreement falls. Purchaser acknowledges that the foregoing is only a summary of the effect of United States federal income taxation with respect to purchase of the Shares hereunder, and does not purport to be
complete. Purchaser further acknowledges that the Company has directed Purchaser to seek independent advice regarding the applicable provisions of the Code, the income tax laws of any municipality, state or foreign country in which Purchaser may
reside, and the tax consequences of Purchaser’s death. 
 Purchaser agrees that he will execute and deliver to the Company
with this executed Agreement a copy of the Acknowledgment and Statement of Decision Regarding Section 83(b) Election (the “Acknowledgment”), attached hereto as Exhibit B. Purchaser further agrees that Purchaser will
execute and submit with the Acknowledgment a copy of the 83(b) Election, attached hereto as Exhibit C, if Purchaser has indicated in the Acknowledgment his or her decision to make such an election. 

10. Miscellaneous. 
 (a) Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with
the laws of the State of California, without giving effect to principles of conflicts of law. 
 (b) Entire Agreement;
Enforcement of Rights. This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter herein and merges all prior discussions between them. No modification of or amendment to this Agreement, nor
any waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of
such party. 
 (c) Severability. If one or more provisions of this Agreement are held to be unenforceable under
applicable law, the parties agree to renegotiate such provision in good faith. 

  
 -8-

 
In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the
balance of the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms. 

(d) Construction. This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and
their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto. 

(e) Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient when delivered
personally or sent by fax or 48 hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, and addressed to the party to be notified at such party’s address or fax number as set forth below or as
subsequently modified by written notice. 
 (f) Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original and all of which together shall constitute one instrument. 
 (g) Successors and
Assigns. The rights and benefits of this Agreement shall inure to the benefit of, and be enforceable by the Company’s successors and assigns. The rights and obligations of Purchaser under this Agreement may only be assigned with the prior
written consent of the Company. 
 (h) Incorporation of Plan. Notwithstanding anything herein to the contrary, this
Agreement shall be subject to and governed by all the terms and conditions of the Plan. 
 [Signature Page Follows] 

  
 -9-

 The parties have executed this Agreement as of the date first set forth above. 

 

			
	FATE THERAPEUTICS, INC.
		
	By:	 	  

		
	Title:	 	  

		
	Address:	 	3535 General Atomics Court, Suite 200
		 	San Diego, CA 92121

 PURCHASER ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO SECTION 3 HEREOF IS
EARNED ONLY BY CONTINUING SERVICE AS AN EMPLOYEE OR CONSULTANT AT THE WILL OF THE COMPANY. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT SHALL CONFER UPON PURCHASER ANY RIGHT WITH RESPECT TO CONTINUATION OF SUCH EMPLOYMENT
OR CONSULTING RELATIONSHIP WITH THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH PURCHASER’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE PURCHASER’S EMPLOYMENT OR CONSULTING RELATIONSHIP AT ANY TIME, WITH OR WITHOUT CAUSE.

  

			
	PURCHASER:
	
	[                    ]
	
	  

	(Signature)
		
	Address:	 	  

		
		 	  

 I,
                                        , spouse
of [                    ], have read and hereby approve the foregoing Agreement. In consideration of the Company’s granting my spouse the right
to purchase the Shares as set forth in the Agreement, I hereby agree to be irrevocably bound by the Agreement and further agree that any community property or similar interest that I may have in the Shares shall be similarly bound by the Agreement.
I hereby appoint my spouse as my attorney-in-fact with respect to any amendment or exercise of any rights under the Agreement. 
  

	
	  

	Spouse of [                    ]

  
 -10-

 EXHIBIT A 
 ASSIGNMENT SEPARATE FROM CERTIFICATE 
 FOR VALUE RECEIVED and pursuant to
that certain Common Stock Purchase Agreement between the undersigned (“Purchaser”) and Fate Therapeutics, Inc. (the “Company”) dated
                    (the “Agreement”), Purchaser hereby sells, assigns and transfers unto the Company
                                    (     
           ) shares of the Common Stock of the Company standing in Purchaser’s name on the Company’s books and represented by Certificate No.
            , and does hereby irrevocably constitute and appoint
                         to transfer said stock on the books of the Company with full power of substitution in the premises. THIS
ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND THE EXHIBITS THERETO. 
  

			
	Dated:	 	  

  

	
	Signature:
	
	  

	[                    ]
	
	  

	Spouse of [                    ] (if applicable)

 Instruction: Please do not fill in any blanks other than the signature line. The purpose of this assignment is to
enable the Company to exercise its repurchase option set forth in the Agreement without requiring additional signatures on the part of Purchaser. 

 EXHIBIT B 
 ACKNOWLEDGMENT AND STATEMENT OF DECISION 
 REGARDING SECTION
83(b) ELECTION 
 The undersigned has entered a stock purchase agreement with Fate Therapeutics, Inc., a Delaware
corporation (the “Company”), pursuant to which the undersigned is purchasing [            ] shares of Common Stock of the Company (the “Shares”). In
connection with the purchase of the Shares, the undersigned hereby represents as follows: 
 1. The undersigned has carefully
reviewed the stock purchase agreement pursuant to which the undersigned is purchasing the Shares. 
 2. The undersigned either
[check and complete as applicable]: 

(a)              has consulted, and has been
fully advised by, the undersigned’s own tax advisor,
                                    , whose business address is
                                    , regarding the federal, state
and local tax consequences of purchasing the Shares, and particularly regarding the advisability of making elections pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”) and pursuant to the
corresponding provisions, if any, of applicable state law; or 
 (b)
             has knowingly chosen not to consult such a tax advisor. 
 3. The undersigned hereby states that the undersigned has decided [check as applicable]: 
 (a)              to make an election pursuant to Section 83(b) of the Code, and is submitting to the Company, together with the
undersigned’s executed Common Stock Purchase Agreement, an executed form entitled “Election Under Section 83(b) of the Internal Revenue Code of 1986;” or 

(b)              not to make an election pursuant to
Section 83(b) of the Code. 
 4. Neither the Company nor any subsidiary or representative of the Company has made any
warranty or representation to the undersigned with respect to the tax consequences of the undersigned’s purchase of the Shares or of the making or failure to make an election pursuant to Section 83(b) of the Code or the corresponding
provisions, if any, of applicable state law. 
  

									
	Date:	 	  
	 		 		 	  

		 		 		 		 	[                    ]
					
	Date:	 	  
	 		 		 	  

		 		 		 		 	Spouse of [                    ]

 EXHIBIT C 
 ELECTION UNDER SECTION 83(b) 
 OF THE INTERNAL REVENUE CODE OF
1986 
 The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code, to include
in taxpayer’s gross income or alternative minimum taxable income, as applicable, for the current taxable year, the amount of any income that may be taxable to taxpayer in connection with taxpayer’s receipt of the property described below:

  

	1.	The name, address, taxpayer identification number and taxable year of the undersigned are as follows: 

NAME OF TAXPAYER:
                                         
    
 NAME OF SPOUSE:
                                         
    
  

					
	ADDRESS:	 	  
	  	
			
		 	  
	  	

 IDENTIFICATION NO. OF TAXPAYER:
                                         
    
 IDENTIFICATION NO. OF SPOUSE:
                                         
    
 TAXABLE YEAR:
                                         
                        
  

	2.	The property with respect to which the election is made is described as follows: 

 [                ] shares of the Common Stock of Fate Therapeutics, Inc., a Delaware corporation (the “Company”).

  

	3.	The date on which the property was transferred is:             , 201   

 

	4.	The property is subject to the following restrictions: 

 Repurchase option at cost in favor of the Company upon termination of taxpayer’s employment or consulting relationship with the Company. 

 

	5.	The fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms will never lapse, of such
property is: $[            ]. 

  

	6.	The amount (if any) paid for such property: $[            ]. 

The undersigned has submitted a copy of this statement to the person for whom the services were performed in connection with the undersigned’s
receipt of the above-described property. The transferee of such property is the person performing the services in connection with the transfer of said property. 

The undersigned understands that the foregoing election may not be revoked except with the consent of the Commissioner. 

 

									
	Dated:	 	  
	 		 		 	  

		 		 		 		 	Taxpayer
					
	Dated:	 	  
	 		 		 	  

		 		 		 		 	Spouse of Taxpayer

 RECEIPT 

Fate Therapeutics, Inc. hereby acknowledges receipt of a check in the amount of
$            given by [                    ] as consideration for Certificate
No.      for [            ] shares of Common Stock of Fate Therapeutics, Inc. 
  

			
	Dated:	 	 

  

			
	FATE THERAPEUTICS, INC.
		
	By:	 	  

		
	Title:	 	  

 RECEIPT AND CONSENT 

The undersigned hereby acknowledges receipt of a photocopy of Certificate
No.             for [            ] shares of Common Stock of Fate Therapeutics, Inc. (the “Company”).

 The undersigned further acknowledges that the Secretary of the Company, or his or her designee, is acting as escrow holder
pursuant to the Common Stock Purchase Agreement Purchaser has previously entered into with the Company. As escrow holder, the Secretary of the Company, or his or her designee, holds the original of the aforementioned certificate issued in the
undersigned’s name. 
  

			
	Dated:	 	  

  

	
	  

	[                    ]EX-10.3

 EXHIBIT 10.3 
 October 2, 2012 
 By E-mail 
 Christian Weyer 
  

	Re:	Fate Therapeutics, Inc. Employment Agreement 

 Dear Chris: 
 On behalf of Fate Therapeutics, Inc. (the
“Company”), I am pleased to offer you the position of the Company’s President and Chief Executive Officer (“CEO”). The terms and conditions of your employment are set forth below. 

1. Position. As CEO and President of the Company, you will report to the Company’s Board of Directors (the
“Board”). This is a full-time position. By signing this letter agreement (this “Agreement”), you confirm to the Company that you have no contractual commitments or other legal obligations that would or may prohibit
you from performing your duties for the Company. While you render services to the Company, you will not engage in any other employment, consulting or other business activity (whether full-time or part-time) including board service, unless otherwise
approved in writing by the Board; provided, that you may engage in religious, charitable, or other community activities so long as such services or activities do not materially interfere or conflict with your obligations to the Company. In
addition, in connection with your role as CEO and President, you will be elected, subject to the Company’s receipt of all necessary stockholder approvals, to serve as a member of the Board. 

2. Start Date. Your employment as CEO and President will begin on October 8, 2012, unless another date is mutually agreed
upon by you and the Company. For purposes of this Agreement, the actual first day of your employment as CEO and President will be referred to as the “Start Date.” 

3. Salary. Commencing on the Start Date, the Company will pay you a base salary at the initial annualized rate of $350,000 per
year, payable in accordance with the Company’s standard payroll schedule and subject to applicable deductions and withholdings in compliance with federal, state and local laws. Your base salary will be subject to periodic review and adjustments
in accordance with the Company’s standard review policies and at the discretion of the Board or the Compensation Committee thereof (the “Compensation Committee”). 

4. Bonus Compensation. During your employment, beginning with the calendar year 2013, you will be considered annually for a bonus
target of up to 50% of your then-current base salary; provided, that any bonus awarded for calendar year 2013 will also take into account your employment for a pro-rated portion of calendar year 2012 (commencing on the Start Date). The amount of any
bonus actually awarded will be determined by the Board or the 

 Christian Weyer 
 October 2, 2012 
  Page
 2
 
  

 
Compensation Committee in its discretion, based on its assessment of the Company’s performance against goals established annually by the Board or the Compensation Committee after
consultation with you. You must be employed with the Company on the date a bonus is paid to earn that bonus; provided, that the Company shall pay any bonus earned by you for a particular calendar year on or before April 15th of the next calendar year. 

5. Equity. 
 (a) In connection with the commencement of your role as CEO and President, subject to Board approval which shall be obtained at the first board meeting following your Start Date, the Company will grant to
you an option to purchase 2,835,263 shares of the Company’s Common Stock (the “Time-Based Grant”). The Time-Based Grant will be issued at an exercise price equal to the fair market value per share of Common Stock on the date of
grant, as determined by the Board. You will have the right to early exercise the Time-Based Grant, in whole or in part, prior to vesting, with the shares issued upon the exercise of any unvested portion of the Time-Based Grant to be subject to a
repurchase right on the same vesting schedule. All of the option shares issued under the Time-Based Grant (collectively, the “Time-Based Option Shares”) will initially be unvested. 25% of the Time-Based Option Shares will vest on
the first anniversary of the Start Date, and the remaining 75% of the Time-Based Option Shares will vest over three years thereafter in equal monthly installments until the fourth anniversary of the Start Date; provided, that in the event of a
Change of Control, 50% of any unvested Time-Based Option Shares will vest immediately prior to the Change of Control, and additionally, if your employment is terminated at any time after a Change of Control without Cause or for Good Reason, the
vesting of all of the then-remaining unvested Time-Based Option Shares will immediately accelerate. The Time-Based Grant will be subject in all other respects to the terms and conditions set forth in the Company’s 2007 Equity Incentive Plan, as
may be amended from time to time (the “Plan”), and associated stock option agreement (collectively the “Equity Documents”). 
 (b) In addition, subject to Board approval which shall be obtained at the first board meeting following your Start Date, the Company will grant to you an option to purchase 1,417,631 shares of the
Company’s Common Stock (the “Performance-Based Grant”). The Performance-Based Grant will be issued at an exercise price equal to the fair market value per share of Common Stock on the date of grant, as determined by the Board.
You will have the right to early exercise the Performance-Based Grant, in whole or in part, prior to vesting, with the shares issued upon the exercise of any unvested portion of the Performance -Based Grant to be subject to a repurchase right on the
same vesting schedule. All option shares issued under the Performance-Based Grant (collectively the “Performance-Based Option Shares”) will initially be unvested and will be subject to vesting as follows: 

(i) 354,408 Performance-Based Option Shares (the “Transaction Milestone Performance-Based Option Shares”) will vest
over two years in equal monthly installments commencing on the earlier of (x) the date one month after the achievement of the Transaction Milestone or (y) the date one month after the closing of a Change of Control, so that all of the
Transaction Milestone Performance-Based Option Shares will be vested on the second anniversary of the achievement of the Transaction Milestone or the second anniversary of 

  
 2 

 Christian Weyer 
 October 2, 2012 
  Page
 3
 
  

 
the closing of the Change of Control, as applicable; provided, that if your employment is terminated without Cause or for Good Reason at any time after the earlier to occur of the Transaction
Milestone or a Change of Control, the vesting of all of the then-remaining unvested Transaction Milestone Performance-Based Option Shares will immediately accelerate as of the date of termination of your employment. 

(ii) Following the first to occur of (x) completion of an underwritten initial public offering of the Company’s Common Stock
pursuant to a registration statement filed and declared effective under the Securities Act of 1933, as amended (an “IPO”) or (y) a Change of Control ((x) and (y) each, an “Exit Event”): 

(A) 354,408 Performance-Based Option Shares will vest in full upon the achievement of an Exit Value of at least $3.00 (subject to
appropriate adjustment for stock splits, combinations, recapitalizations and the like); 
 (B) An additional 354,408
Performance-Based Option Shares will vest in full upon the achievement of an Exit Value of at least $5.00 (subject to appropriate adjustment for stock splits, combinations, recapitalizations and the like); and 

(C) An additional 354,407 Performance-Based Option Shares will vest in full upon the achievement of an Exit Value of at least $7.00
(subject to appropriate adjustment for stock splits, combinations, recapitalizations and the like). 
 The Performance-Based
Grant will be subject in all other respects to the terms and conditions set forth in the Equity Documents. 
 (c) You
acknowledge that any portion of the Time-Based Grant and/or the Performance-Based Grant will be deemed to be “incentive stock options” within the meaning of the Internal Revenue Code of 1986, as amended (the “Code”), only
to the extent permitted under the Code and will otherwise be deemed to be “non qualified” stock options. For example and without limiting the generality of the foregoing, the maximum fair market value (determined as of the date of grant)
of stock for which “incentive stock options” may become exercisable within a calendar year is $100,000. 
 (d) If,
upon a Change of Control, (i) any portion of your Time-Based Grant or Performance-Based Grant remain unvested but is eligible under the terms set forth in Section 5(a) or 5(b) above for continued or accelerated vesting, and (ii) such
unvested portion(s) of the Time-Based Grant or the Performance-Based Grant are not assumed or substituted on substantially the same terms by the acquirer in connection with such Change of Control, then the Time-Based Grant and the Performance-Based
Grant will terminate upon the closing of the Change of Control and the portions of the Time-Based Grant or the Performance-Based Grant that were unvested at the time of such closing but eligible for continued or accelerated vesting thereafter will
be converted into the right to receive the consideration payable to holders of Common Stock of the Company in such transaction (net of the applicable exercise price), which right will be subject to the vesting and acceleration provisions relating to
such Time-Based Grant or Performance-Based Grant set forth in Section 5(a) or 5(b), as applicable. Such consideration 

  
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will be held in escrow for your benefit and any decisions regarding its disposition or management shall be made by you until released from escrow to you upon vesting or otherwise forfeited by
you. For the avoidance of doubt: 
 (i) upon the closing of a Change of Control, the Performance-Based Grant will terminate
with respect to the number of Performance-Based Option Shares for which each applicable Exit Value is not achievable if the aggregate potential consideration in such Change of Control would not allow for the achievement of any of the applicable Exit
Values set forth in clauses (A) through (C) of Section 5(b)(ii); and 
 (ii) upon an IPO, the Performance-Based
Grant will remain outstanding, with all unvested Performance-Based Option Shares eligible for continued or accelerated vesting upon a subsequent Change of Control in accordance with the terms and conditions of Section 5(b), subject to clause
(i) above. 
 (e) Notwithstanding anything to the contrary contained in the Plan or hereunder, the Company will not amend
or terminate any of the Equity Documents in a manner that impairs your rights thereunder (including without limitation any rights to continued or accelerated vesting, whether before or after a Change of Control) without your prior written consent.

 6. Benefits/Vacation. You will be eligible to participate in the Company’s employee benefits and insurance
programs generally made available to its full-time senior management employees. Details of these benefits programs, including mandatory employee contributions, and, if applicable, waiting periods, will be made available to you when you start. You
initially will be entitled to earn up to eighteen (18) days of paid time off per year, with accrual capped at 1.0 times the annual limit, in accordance with and subject to the Company’s vacation policy, as it may be revised from time to
time. 
 7. At-Will Employment, Accrued Obligations; Severance. Your employment is “at will,” meaning you or
the Company may terminate it at any time for any or no reason. In the event of the termination of your employment for any reason, the Company will pay you the Accrued Obligations, defined as (1) your base salary through the date of termination,
any earned but unpaid bonus, and any accrued, unused vacation, (2) the amount of any expenses properly incurred by you on behalf of the Company prior to any such termination and not yet reimbursed. In addition, in the event the Company
terminates your employment without Cause or you resign for Good Reason, the Company will provide you with the following termination benefits (the “Termination Benefits”): 

(a) continuation of your base salary for a period of twelve (12) months after the effective date of termination of your employment
with the Company (the “Severance Period”) at the salary rate then in effect (“Salary Continuation Payments”) (solely for purposes of Section 409A of the Code, each Salary Continuation Payment is considered a
separate payment); provided that if the date of termination of your employment occurs before a Change of Control, then in the event that you commence any employment or self-employment during the Severance Period, the remaining amount of Salary
Continuation Payments due pursuant to this Section 7(a) 

  
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for the period from the commencement of such employment or self-employment to the end of the Severance Period will be reduced dollar-for-dollar by the amount received for such employment or
self-employment. If the date of termination of your employment occurs before a Change of Control, you will give prompt notice of the date of commencement of any employment or self-employment during the Severance Period and will respond promptly to
any reasonable inquiries from the Company concerning any employment or self-employment in which you engage during the Severance Period; 
 (b) continuation of group health plan benefits to the extent authorized by and consistent with 29 U.S.C. § 1161 et seq. (commonly known as “COBRA”), with the cost of the regular
premium for such benefits shared in the same relative proportion by the Company and you as in effect on the date of termination until the earlier of (i) the end of the Severance Period; and (ii) the date you become eligible for health
benefits through another employer or otherwise become ineligible for COBRA. 
 Notwithstanding anything to the contrary in this
Agreement, you will not be entitled to any Termination Benefits unless you first (i) enter into, do not revoke, and comply with the terms of a separation agreement in a form acceptable to the Company which will include a release against the
Company and related persons and entities in the form attached hereto as Exhibit C (the “Release”), which must become effective and irrevocable within sixty (60) days after the date of termination of your employment;
(ii) resign from any and all positions, including, without implication of limitation, as a director, trustee, and officer, that you then hold with the Company and any Affiliates; and (iii) return all Company property and comply with any
instructions related to deleting and purging duplicates of such Company property. The Salary Continuation Payments will commence within sixty (60) days after the date of termination and will be made on the Company’s regular payroll dates;
provided, however, that if the sixty (60)-day period begins in one calendar year and ends in a second calendar year, the Salary Continuation Payments will begin to be paid in the second calendar year. In the event you miss a regular payroll period
between the date of termination and first Salary Continuation Payment, the first Salary Continuation Payment will include a “catch up” payment. 
 8. Additional Agreements. 
 (a) As a material condition of this Agreement,
you agree to execute and abide by the Employee Proprietary Information and Inventions Agreement, attached hereto as Exhibit A, the terms of which are incorporated by reference herein. 

(b) In connection with your appointment as an officer and director of the Company, the Company will enter into an Indemnification
Agreement with you, in the form attached hereto as Exhibit B. 
 9. Definitions. For purposes of this Agreement:

 “Affiliates” means all persons and entities directly or indirectly controlling, controlled by or under
common control with the Company, where control may be by management authority, equity interest or otherwise. 

  
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 “Cause” means any of the following: (i) embezzlement,
misappropriation of material assets or property of the Company; (ii) the conviction of, or a plea of guilty or nolo contendere to, a felony, or any crime involving moral turpitude, theft or the violation of applicable securities
laws; (iii) your ongoing and repeated failure or refusal to perform or neglect of your lawful duties and responsibilities to the Company, which continues after you have received prior written notice from the Board of such failure or refusal and
has not been cured by you within thirty (30) days of such notice; or (iv) your breach of this Agreement or any other agreement with the Company entered into in connection with this Agreement, which breach, if capable of cure, is not cured
within thirty (30) days after your receipt of written notice thereof or otherwise within the applicable notice and cure periods, if any, provided in the applicable agreement. 

“Change of Control” means (i) the liquidation, dissolution or winding up of the Company; (ii) the acquisition
of the Company by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger, share exchange or consolidation), provided that the applicable transaction will not be deemed a Change of
Control unless the Company’s stockholders constituted immediately prior to such transaction hold less than fifty percent (50%) of the voting power of the surviving or acquiring entity; or (iii) the sale, conveyance or other disposal
of all or substantially all of the property or business of the Company; provided that a Change of Control will not include (x) a merger or consolidation with a wholly-owned subsidiary of the Company, (y) a merger effected exclusively for
the purpose of changing the domicile of the Company or (z) any transaction or series of related transactions principally for bona fide equity financing purposes in which the Company is the surviving corporation. 

“Exit Value” means (i) in the case of a Change of Control, the net cash payments or value of other consideration
paid to the Company or its stockholders on a fully-diluted, per share basis or (ii) in the case of an IPO, the forty-five (45) consecutive trading-day volume weighted average price of the Company’s Common Stock at any time following
the expiration of all applicable “lock-up” periods. 
 “Good Reason” means that you have complied
with the “Good Reason Process” (hereinafter defined) following the occurrence of any of the following actions undertaken by the Company without your express prior written consent: (i) the material diminution in your
responsibilities, authority and function; (ii) a material reduction in your base salary, provided, however, that Good Reason will not be deemed to have occurred in the event of a reduction in your base salary that is pursuant to a salary
reduction program affecting substantially all of the senior level employees of the Company and that does not adversely affect you to a greater extent than other similarly situated employees; or (iii) a change in the geographic location at which
you must regularly report to work and perform services of more than fifty (50) miles, except for required travel on the Company’s business. 
 “Good Reason Process” means that (i) you have reasonably determined in good faith that a “Good Reason” condition has occurred; (ii) you have notified the Company in
writing of the first occurrence of the Good Reason condition within sixty (60) days of the first occurrence of such condition; (iii) you have cooperated in good faith with the Company’s efforts, for a period not less than thirty
(30) days following such notice (the “Cure Period”), to remedy the condition 

  
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if it is of a nature that can be remedied; (iv) notwithstanding such efforts, the Good Reason condition continues to exist; and (v) you terminate your employment within sixty
(60) days after the end of the Cure Period. If the Company cures the Good Reason condition during the Cure Period, Good Reason will be deemed not to have occurred. 
 “Transaction Milestone” means the Company’s execution of one or more strategic partnership or license agreements approved by the Board, in which the Company is reasonably expected to
receive within four (4) years of execution at least $30 million (determined in the aggregate, in the case of multiple partnerships or license agreements) in unrestricted cash available for use outside the program(s) subject to the applicable
agreements (including all up-front, milestone / option-based payments, and other similar forms of payments, as well as equity investment funding); provided that such amount may be lowered by the Board in its sole discretion. 

10. Taxes; Section 409A. All forms of compensation referred to in this Agreement are subject to reduction to reflect
applicable withholding and payroll taxes and other deductions required by law. You hereby acknowledge that the Company does not have a duty to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make
any claim against the Company or the Board related to tax liabilities arising from your compensation. Anything in this Agreement to the contrary notwithstanding, if at the time of your separation from service within the meaning of
Section 409A of the Code, the Company determines that you are a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that you becomes entitled to under this
Agreement on account of your separation from service would be considered deferred compensation subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of
Section 409A(a)(2)(B)(i) of the Code, such payment will not be payable and such benefit will not be provided until the date that is the earlier of (A) six (6) months and one day after your separation from service, or (B) your
death. If any such delayed cash payment is otherwise payable on an installment basis, the first payment will include a catch-up payment covering amounts that would otherwise have been paid during the six (6)-month period but for the application of
this provision, and the balance of the installments will be payable in accordance with their original schedule. All in-kind benefits provided and expenses eligible for reimbursement under this Agreement will be provided by the Company or incurred by
you during the time periods set forth in this Agreement. All reimbursements will be paid as soon as administratively practicable, but in no event will any reimbursement be paid after the last day of the taxable year following the taxable year in
which the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year will not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year.
Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation” under
Section 409A of the Code, and to the extent that such payment or benefit is payable upon your termination of employment, then such payments or benefits will be payable only upon your “separation from service.” The determination of
whether and when a separation from service has occurred will be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h). The

  
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Company and you intend that this Agreement will be administered in accordance with Section 409A of the Code. To the extent that any provision of this Agreement is ambiguous as to its
compliance with Section 409A of the Code, the provision will be read in such a manner so that all payments hereunder comply with Section 409A of the Code. The Company makes no representation or warranty and will have no liability to you or
any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section. 

11. Entire Agreement; Amendment. This Agreement (including the Exhibits) and the Equity Documents constitutes the complete
agreement between you and the Company, contain all of the terms of your employment with the Company and supersede any prior agreements, representations or understandings (whether written, oral or implied) between you and the Company. This Agreement
may not be modified or amended, and no breach will be deemed to be waived, unless agreed to in writing by you and a duly authorized officer or board member of the Company. 
 12. Governing Law; Dispute Resolution. The terms of this Agreement will be governed and construed under the laws of the State of California, without regard to the conflict of laws principles
thereof. To ensure rapid and economical resolution of any disputes which may arise concerning your employment, you and the Company agree that any and all claims, disputes or controversies of any nature whatsoever arising out of, or relating to, this
Agreement, your employment with the Company, or the termination of your employment with the Company, or any other matter or claim arising out of or relating to your employment or termination of employment will be resolved by confidential, final and
binding arbitration conducted before a single arbitrator with Judicial Arbitration and Mediation Services, Inc. (“JAMS”) in San Diego, California, under the then-applicable JAMS rules. You and the Company acknowledge that by
agreeing to this arbitration procedure, you and the Company each waive the right to resolve any such dispute through a trial by jury, judge or administrative proceeding. The Company will bear JAMS’ arbitration fees and administrative costs. The
arbitrator will: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; (b) consider and rule upon any motion for summary judgment; and
(c) issue a written arbitration decision including the arbitrator’s essential findings and conclusions and a statement of the award. The arbitrator, and not a court, will also be authorized to determine whether the provisions of this
paragraph apply to a dispute, controversy, or claim sought to be resolved in accordance with these arbitration procedures. 

13. Assignment. Neither you nor the Company may make any assignment of this Agreement or any interest in it, by operation of law
or otherwise, without the prior written consent of the other; provided, however, that the Company may assign its rights and obligations under this Agreement without your consent to one of its Affiliates or to any entity with whom the
Company will hereafter effect a reorganization, consolidate with, or merge into or to whom it transfers all or substantially all of its properties or assets (including any Change of Control). This Agreement will inure to the benefit of and be
binding upon you and the Company, and each of our respective successors, executors, administrators, heirs and permitted assigns. 

  
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 14. Miscellaneous. The headings and captions in this Agreement are for
convenience only and in no way define or describe the scope or content of any provision of this Agreement. The words “include,” “includes” and “including” when used herein will be deemed in each
case to be followed by the words “without limitation.” This Agreement may be executed in two or more counterparts, each of which will be an original and all of which together will constitute one and the same instrument. 

15. Other Terms. As with all employees, our offer to you is contingent on your submission of satisfactory proof of your
identity and your legal authorization to work in the United States. 
 16. Acceptance of Offer. If this offer is
acceptable to you, kindly indicate your agreement to its terms and conditions by signing and returning a copy of this letter and a completed Employee Proprietary Information and Inventions Agreement attached hereto by the close of business on
October 5, 2012, it being understood that this offer will expire if not accepted on or before such date (although such expiration date may be extended at the discretion of the Company). Upon your signature below, this Agreement will become our
binding agreement with respect to your employment, containing all terms and conditions as to the specifics thereto. 

[Remainder of page intentionally left blank] 

  
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 We are excited about the prospect of having you join the Company in this capacity and
look forward to receiving your acknowledgment below. 
  

			
	Very truly yours,
		
	By:	 	/s/ William Rastetter
		 	William Rastetter
		 	Chairman

 I have read and accept this employment offer and the terms of this Agreement: 

 

			
	/s/ Christian Weyer
	Christian Weyer
		
	Dated:	 	02 OCTOBER 2012

  
 10

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