Document:

EX-10.11

 Exhibit 10.11 

CONFIDENTIAL 
 CERTAIN IDENTIFIED INFORMATION HAS
BEEN OMITTED FROM THIS DOCUMENT BECAUSE IT IS BOTH NOT MATERIAL AND WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED, AND HAS BEEN MARKED WITH “[***]” TO INDICATE WHERE OMISSIONS HAVE BEEN MADE. 

EXECUTION VERSION 2 JANUARY 2018 

EXCLUSIVE OPTION AND LICENSE AGREEMENT 

This EXCLUSIVE OPTION AND LICENSE AGREEMENT (this “Agreement”) is entered into as of January 4th, 2018 (the “Effective Date”), by and between Arcutis, Inc., a United States corporation incorporated in the State of Delaware with offices at 70 Willow Road, Suite 200, Menlo
Park, CA 94025 (“Arcutis”) and Jiangsu Hengrui Medicine Co., Ltd., a Chinese corporation with offices at 7 Kunlunshan Road, Economy and Technology Development Zone, Lianyungang, Jiangsu, China
(“Hengrui”). Hereinafter, “Parties” shall mean Arcutis and Hengrui together, and “Party” shall mean Arcutis or Hengrui, as the context requires. 

RECITALS 
 WHEREAS,
Arcutis is a biopharmaceutical company in the business of developing and commercializing therapeutic products; 
 WHEREAS, Hengrui
Controls the active pharmaceutical ingredient named by Hengrui as SHR0302; and 
 WHEREAS, Arcutis is interested in conducting
preliminary studies on SHR0302 and related compounds as described herein with an option to exclusively license the same for development of topical therapeutic products. 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements contained herein, the Parties hereby
agree as follows: 
 ARTICLE I 

DEFINITIONS 
 1.1
“Affiliate” means any individual, corporation, association or other business entity that directly or indirectly controls, is controlled by, or is under common control with the Party or other entity in question. As used in
this definition of “Affiliate,” the term “control” shall mean the direct or indirect ownership of more than fifty percent (>50%) of the stock having the right to vote for directors thereof or the ability to otherwise control
the management of the corporation or other business entity whether through the ownership of voting securities, by contract, resolution, regulation or otherwise. 

1.2 “Applicable Law” means, with respect to any Party or other person or entity, any federal, state or local
law (statutory, common or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, executive order, injunction, judgment, decree, ruling or other similar requirement enacted, adopted, promulgated or applied by a Governmental
Authority that is binding upon or applicable to such Party, person or entity. 

 CONFIDENTIAL 
  

 1.3 “Business Day” means any day other than a Saturday, a
Sunday or a day on which banks in New York, New York are authorized or obligated by law or governmental order to close. 
 1.4
“Calendar Quarter” means each period of three (3) consecutive calendar months, ending March 31, June 30, September 30, and December 31. 

1.5 “Calendar Year” means the period of time beginning on January 1 and ending December 31, except
for (a) the first year which shall begin on the Effective Date and end on December 31 and (b) any year in which this Agreement is terminated or expires prior to December 31, in which case the Calendar Year shall be from
January 1 of that year to the date of expiration or termination. 
 1.6 “Commercially Reasonable
Efforts” shall mean. with respect to a Party’s obligations under this Agreement, including to develop, commercialize or manufacture the Licensed Products, those efforts and resources dedicated are consistent with such Party’s
efforts in pursuing the development, commercialization or manufacture of any other comparable pharmaceutical products that are of similar market potential as Licensed Product, taking into account all relevant factors including product labeling or
anticipated labeling, present and future market potential, past performance of such Licensed Product, financial return, medical and clinical considerations, present and future regulatory environment and competitive market conditions. Further,
Commercially Reasonable Efforts with respect to a Licensed Product requires that a Party: (a) set and seek to achieve reasonable objectives for carrying out its obligations in a timely manner, subject to adjustment or modification of such
objectives taking into account all relevant factors, and (b) make and implement decisions and allocate appropriate resources for the purpose of advancing progress with respect to achieving such objectives. 

1.7 “Control” means (as an adjective or as a verb including conjugations and variations such as
“Controls” “Controlled” or “Controlling”) (a) with respect to Patent Rights. the possession by a Party of the ability to grant a license or sublicense of such Patent Rights
without violating the terms of any agreement or arrangement between such Party and any other party and (b) with respect to scientific or technical information, results, materials, and data, whether or not patentable, the possession by a Party
of the ability to supply the same to the other Party as provided herein without violating the terms of any agreement or arrangement between such Party and any other party. For clarity, Control may be based upon ownership as well as upon license or
other rights. 
 1.8 “Cover” means (as an adjective or as a verb including conjugations and variations such
as “Covered.” “Coverage” or “Covering”). with respect to a claim of a pending or issued patent, that the developing, making. using, offering for sale, promoting, selling, exporting or importing of a given compound,
formulation or product would infringe such claim in the absence of a license under or ownership in the Patent Rights to which such claim pertains. The determination of whether a compound, formulation, process or product is Covered by a particular
claim shall be made on a country-by-country basis. 

1.9 “Dollars” or “$” means the legal tender of the U.S. 

  
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 1.10 “Exploit” and
“Exploitation” mean to make, have made, import, use, sell, or offer for sale, reproduce, modify, publish, distribute, including to sublicense (through multiple tiers), research, develop, commercialize, register, hold, or keep
(whether for disposal or otherwise), have used, transport, distribute, promote, market, or have sold or otherwise dispose of. 
 1.11
“Field” means any topical formulations for the treatment of skin diseases, disorders and conditions, excluding any other formulations such as for ingestion or injection (either subcutaneous or intravenous or otherwise). 

1.12 “First Commercial Sale” means on a
country-by-country basis, the first sale of a Licensed Product by a Selling Party following the receipt of all Regulatory Approval required for the commercial sale of
such Licensed Product in such country. 
 1.13 “Generic Competition” means with respect to a Licensed Product
in a country, when one or more Generic Product(s) are being marketed in such country and all Licensed Patent Rights Covering such Licensed Product in such country have expired. 

1.14 “Generic Product” means a product (a) whose active pharmaceutical ingredient is rated as equivalent
to the Licensed Product being sold in a country, (b) that obtained Regulatory Approval solely by means of establishing such equivalence to such Licensed Product, and (c) that is legally marketed in such country by an entity other than a
Selling Party hereunder. 
 1.15 “Governmental Authority” means any transnational, or domestic or foreign
federal, state or local, governmental authority, department, court, agency or official, including any political subdivision thereof. 

1.16 “IND” shall mean an Investigational New Drug application. or similar application to commence human
clinical testing of a Licensed Product for use in the Field submitted to the U.S. Food and Drug Administration pursuant to Title 21 of the Code of Federal Regulations, Part 312, or its foreign equivalent. 

1.17 “Invention” means any new and nonobvious process, method, composition of matter, article of manufacture,
result, data, know-how, software, works of authorship, or information, whether or not patentable or copyrightable. 

1.18 “Licensed Compound” means the chemical compound or compounds that are or have been at any time prior to or
as of the Effective Date referred to internally or externally by Hengrui as “SHR0302”. 
 1.19 “Licensed Know-How” means all scientific or technical information, results, materials, and data, including safety and efficacy data, formulae, procedures, final and preliminary protocols, techniques, and results
(negative or positive) of experimentation and testing, whether or not patentable that, in each case. are (a) Controlled by Hengrui or its Affiliates at any time prior to or as of the Effective Date or at any time during the Term of this
Agreement and (b) materially related to a Licensed Compound or otherwise necessary for the Exploitation of Licensed Products. 

  
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 1.20 “Licensed Patent Rights” means all Patent Rights in and
to (a) the patents and patent applications listed in Exhibit A hereto, together with any and all current or future divisionals, continuations,
continuations-in-part, provisionals, converted provisionals, and continued prosecution applications claiming priority to any of such listed patents or patent
applications or to any application to which such listed patents or patent applications claim priority, and any and all patents that have issued or in the future issue from any of the foregoing, including utility models, petty patents and design
patents and certificates of invention, and any and all adjustments, extensions or restorations by existing or future adjustment, extension or restoration mechanisms, including revalidations, reissues,
re-examinations, term adjustments, and extensions (including any supplementary protection certificates and the like), of any thereof; and (b) any and all foreign counterparts of any of the foregoing in
any nation, jurisdiction, or patent authority in the Territory. 
 1.21 “Licensed Product” means on a country
b) country basis, any pharmaceutical product or component that comprises a Licensed Compound. 
 1.22 “Licensed
Technology” means either or both of the Licensed Patent Rights and the Licensed Know-How. 

1.23 “Net Sales” means the gross invoiced sales amount of Licensed Products paid to a Selling Party for the
sale or other commercial disposition of Licensed Products in the Territory during the Royalty Term applicable to the country of sale or disposition, less the following items listed to the extent actually taken or incurred with respect to such sale,
in accordance with standard allocation procedures, allowance methodologies and accounting methods consistently applied: 
 (a)
customary credits or allowances for Licensed Product returns during such quarter, including, but not limited to, credits for returned, recalled, damaged, unsold, or short-dated Licensed Product, allowances granted or included in the invoice,
discounts, customer program accruals (overbills, administrative fees, Third Party rebates, sales brokerage, and volume rebates), other adjustments and rebates, including but not limited to Medicaid and other state or governmental rebates, charge
backs, floor stock adjustments, and similar items that may be estimated in accordance with GAAP/IFRS; 
 (b) import, export, sales
(including VAT or its equivalent) and excise taxes, customs duties, other consumption taxes, or other governmental charges to the extent actually included in gross sales; and 

(c) costs of freight, insurance, packaging costs and other transportation charges to the extent actually included in gross sales. 

Sales among the Selling Party and its Affiliates or Sublicensees shall he excluded from the computation of Net Sales, except where such Affiliates or
Sublicensees are end users, and sales from one Party or its Affiliate or Sublicensee to the other Party or its Affiliate or Sublicensee for use in development activities, in the further manufacture of Products. or for resale shall be excluded from
the computation of Net Sales; provided, however, in each case that any subsequent resale shall be included within Net Sales. In addition, the Selling Party may exclude 

  
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from Net Sales a reasonable provision for uncollectible accounts, consistently applied across all product lines of the particular Party, until such amounts arc actually collected. The computation
of Net Sales shall not include Licensed Products provided for use in clinical trials or other research or development activities, or Licensed Products given as samples or for humanitarian or charitable purposes, in each case at or below cost. 

For purposes of determining whether a given sale occurs during a computation period, a Licensed Product will be considered sold as of the date of shipment by
the applicable Selling Party to its customers, wholesalers, or distributors, as applicable. 
 No multiple payments on the same Net Sales shall be payable
hereunder, regardless of whether the relevant Licensed Products are covered by more than one Valid Claim or otherwise. 
 If a Licensed Product consists of
at least one Licensed Compound and at least one active ingredient that is not a Licensed Compound, then for purposes of the calculation of Net Sales of such Licensed Product, such Net Sales, prior to the royalty calculations set forth above, first
shall be multiplied by the fraction A/(A+B), where A is the market value of the Licensed Compound(s) in such Licensed Product as reasonably determined and agreed by Arcutis and Hengrui, and B is the market value of the
non-Licensed Compound(s) as reasonably determined and agreed by Arcutis and Hengrui, it being understood that the amount resulting from such calculation shall be the “Net Sales” for the applicable
combination Licensed Product which shall be determined on a country-by-country basis. In the case that market values of A and B cannot be reasonably determined and
agreed by Arcutis and Hengrui, both agree to, on a country-by country basis, select most comparable marketed products of A and B to determine a median market value for each. 

1.24 “Option Period” means the period of time commencing on the Effective Date and ending eighteen
(18) months after the Effective Date. 
 1.25 “Option Period Studies” means studies of the nature and
for the purposes outlined in Exhibit B hereto, intended to allow Arcutis determine whether or not it will exercise the Option. 

1.26 “Option Period Study Results” means any and all Inventions, scientific or technical information, results,
materials, and data, including safety and efficacy data, formulae procedures, final and preliminary protocols, techniques, and results (negative or positive) of experimentation and testing, that are first discovered, made, or developed in the course
of conducting the Option Period Studies. 
 1.27 “Patent Controversy” means any dispute between the Parties
to the extent that it involves an issue relating to the inventorship, claim scope or interpretation, infringement, enforceability, patentability, defense. or validity of any Patent Right hereunder, and including any such issues relevant to any
prosecution activities hereunder. 
 1.28 “Patent Right(s)” means all rights and privileges in, to, or under
any patent or pending patent application anywhere in the world. 

  
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 1.29 “Phase I Clinical Trial” shall mean a human clinical
trial in any country in the Territory, which provides for the first introduction into humans of a Licensed Product, conducted in healthy volunteers or patients to obtain information on product safety, tolerability, pharmacological activity, or
pharmacokinetics. as described in 21 CFR 312.21(a), or its foreign equivalent. 
 1.30 “Phase II Clinical
Trial” shall mean a human clinical trial in any country in the Territory, which is prospectively designed to establish the safety, dose ranging and efficacy of a Licensed Product, as further defined in 21 CFR 312.21(b), or its foreign
equivalent. 
 1.31 “Phase III Clinical Trial” shall mean a human clinical trial in any country in the
Territory, the results of which could be used to establish safety and efficacy of a Licensed Product as a basis to satisfy the requirements of 21 CFR 312.21(c), or its foreign equivalent. 

1.32 “POC Study” means a
proof-of-concept clinical study to be conducted as part of the Option Period Studies. 

1.33 “Prosecute” means to have primary responsibility for preparing, filing. prosecuting (including
interference and opposition proceedings) and maintaining (including interferences, reissue, re-examination, post-grant reviews, inter-partes reviews, derivation proceedings and opposition proceedings),
including discontinuing or abandoning Patent Rights. 
 1.34 “Regulatory Approval” means with respect to a
country, extra-national territory, province, state, or other regulatory jurisdiction, any and all approvals, licenses, registrations or authorizations of any Regulatory Authority necessary in order to Exploit a product in such country, state,
province, or some or all of such extra-national territory or regulatory jurisdiction, which shall include any pricing and reimbursement approvals. 

1.35 “Regulatory Authority” means, with respect to a particular country, extra-national territory, province,
state, or other regulatory jurisdiction, any applicable Governmental Authority involved in granting Regulatory Approval, including but not limited to the FDA, the EMA, the European Commission, and the MHLW, and in each case including any successor
thereto. 
 1.36 “Regulatory Materials” means regulatory applications, submissions, dossiers, notifications,
registrations, Regulatory Approvals and or other filings made to or with, or other approvals granted by, a Regulatory Authority that are necessary or reasonably desirable in order to Exploit a Licensed Product in a particular country or regulatory
jurisdiction, including INDs, MAAs and NDAs. 
 1.37 “Royalty Term” means, with respect to a given Licensed
Product sold or commercially distributed in a given country, on a country-by-country basis, the time period commencing on the date of the First Commercial Sale of the
Licensed Product in such country and ending on the later of (i) the expiration of the last Valid Claim in such country Covering such Licensed Product or its use, and (ii) the expiration of the last applicable period of effective
regulatory-based exclusivity, if any, for such Licensed Product in such country. 
 1.38 “Selling Party”
means, as applicable, Arcutis, its Affiliate, its Sublicensee, or an Affiliate of a Sublicensee. 

  
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 1.39 “Territory” means (a) the United States,
(b) Japan, (c) the countries of the European Union as of the Effective Date (including the United Kingdom and all of its component nations, as of the Effective Date), whether or not remaining in the European Union following the Effective Date,
(d) any other country that becomes part of the European Union at any time following the Effective Date, and (e) any territory or possession of any of the foregoing. 

1.40 “Third Party” means a person or entity other than (a) Arcutis or any of its Affiliates or
(b) Hengrui or any of its Affiliates. 
 1.41 “Valid Claim” means (a) a claim of any pending patent
application included in the Licensed Patent Rights, that has not been pending in excess of fifteen (15) years, and/or(b) a claim of an issued and unexpired patent included within the Licensed Patent Rights that which has not been held
permanently revoked, unenforceable, or invalid by an unappealable (or unappealed within the time allowed for appeal) decision of a court or other Governmental Authority of competent jurisdiction, and which has not been dedicated to the public,
abandoned, or admitted to be invalid or unenforceable through reissue or disclaimer or otherwise. 
 ARTICLE II 

OPTION AND OPTION PERIOD STUDIES 

2.1 Upfront Payment. Within thirty (30) Business Days following the Effective Date of this Agreement, Arcutis will pay Four
Hundred Thousand US Dollars ($400,000) to Hengrui (the “Upfront Payment”.). which amount shall be non-creditable and non-refundable. 

2.2 Transfer of Data and Information. Within thirty (30) Business Days following Hengrui’s receipt of the Upfront
Payment, Hengrui shall without charge deliver to Arcutis, in English, all Licensed Know-How in Hengrui’s possession or otherwise readily available to it; provided, however, that Hengrui shall not be
required to transfer to Arcutis any Licensed Know-How relating solely to the chemical structure, formulation or manufacture of Licensed Compounds (and not required for submission to Regulatory Authorities)
unless or until the Option is exercised by Arcutis. From time to time during the Option Period, or promptly upon Arcutis’s each of reasonable requests. Hengrui shall without charge transfer any additional Licensed
Know-How in Hengrui’s possession (other than Licensed Know-How relating solely to the chemical structure, formulation or manufacture of Licensed Compounds and not
required for submission to Regulatory Authorities) to the extent not previously delivered. Any Licensed Know-How that is required for submission to Regulatory Authorities and that was originally created in
Chinese but translated to English will be delivered in both the original Chinese and translated English, along with (i) a verification that the translation is complete and accurate, and (ii) the name, address, and a brief statement of the
qualifications of the person making the translation. 
 2.3 Option Period Supply. Subject to the terms and conditions of the
Material Transfer Agreement (“MTA”) dated January 2, 2018 by and between Hengrui and Arcutis, during the Option Period, Hengrui shall supply to Arcutis Licensed Compound in quantities at [***], at places and times, and
informs, as shall be reasonably agreed between the Parties, and otherwise as may be reasonably required for Arcutis to conduct the Option Period Studies (the “Option Period Materials”). This cost to supply is set forth in the
MTA. Arcutis shall not, and 

  
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shall not cause any Affiliate, service providers, collaborators or Third Parties to, use or transfer any Option Period Materials for any purpose other than to conduct the Option Period Studies.
In addition, Arcutis may not, and may not cause any Affiliate, service providers, collaborators or Third Parties to, reverse engineer, copy, disassemble or otherwise attempt to reconstruct any Option Period Materials. 

2.4 Grant of Option and Option Period License. Hengrui hereby grants to Arcutis during the Option Period: 

2.4.1 an exclusive option, exercisable in Arcutis’s sole discretion at any time during the Option Period, to obtain from Hengrui
the license rights described in Section 3.1 (the “Option”): and 
 2.4.2 a
non-transferable, non-sublicensable (other than to Arcutis’s Affiliates, service providers and collaborators who directly participate in the Option Period Studies),
fully-paid, royalty-free license under the Licensed Technology to perform the Option Period Studies as contemplated herein (the “Option Period License”). 

2.5 Option Period Studies. During the Option Period, Arcutis will design, control, and conduct those Option Period Studies
deemed appropriate by Arcutis in its discretion. Arcutis shall exert Commercially Reasonable Efforts to conduct the POC Study and to complete it and the analysis of it within [***] following the Effective Date, which timeframe may be extended by
Arcutis with the written consent of Hengrui (such consent not to be unreasonably withheld or delayed). During this [***] period, Arcutis will promptly notify Hengrui in writing if it is evaluating other chemical compound or compounds specifically
designed for, or otherwise useful for, JAK1//2.3 (Janus kinase 1/13) inhibition, that are not Controlled by Hengrui. 
 2.6 Option
Exercise. In the event Arcutis elects to exercise the Option, it shall prior to 11:59pm Pacific time on the last day of the Option Period, (i) deliver to Hengrui a written notice specifying that Arcutis has elected to exercise the Option
(“Option Notice”), and (ii) pay to Hengrui a non-refundable, non-creditable fee of One Million Five Hundred Thousand Dollars
($1,500,000) (the “Option Exercise Payment”). The date, if any, on which Arcutis has exercised the Option by having fulfilled both (i) and (ii) in the preceding sentence, shall be the “License Effective
Date.” 
 2.7 Expiration and Termination of the Option Period. The Option, the Option Period, and the Option
Period License will expire if the Option is not exercised on or prior to the last day of the Option Period. Arcutis may earlier terminate the Option Period at any time and for any reason, effective upon written notice to Hengrui. 

2.8 Effect of Expiration or Termination of the Option Period. Upon expiration or termination of the Option Period, other than
due to the occurrence of the License Effective Date. (1) the Option Period License immediately terminates and all rights associated with Licensed Technology automatically revert back to Hengrui, without requiring any act on either Party, and
(2) Arcutis shall (a) immediately cease all work on the Option Period Studies, and (b) within thirty (30) days of such expiration or termination, (i) deliver to Hengrui the Option Period Study Results in writing or
computer-readable form and any remaining Option Study Materials; and (ii) return or destroy, at Hengrui’s choice, any physical embodiments of the Licensed Know-How provided to it by Hengrui. 

  
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 ARTICLE III 

LICENSES 
 3.1
Licenses to Arcutis. 
 3.1.1 Hengrui hereby grants to Arcutis, effective as of the License Effective Date, a royalty-bearing
license, with the right to sublicense (through multiple tiers) as set forth in Section 3.4, under the Licensed Technology to Exploit Licensed Products in the Field in the Territory during the Term. The foregoing license shall be sole and
exclusive (including as to Hengrui and its Affiliates) with respect to the Licensed Patent Rights and non-exclusive with respect to the Licensed Know-How. 

3.1.2 Hengrui will make available to Arcutis for its review all future Patent Rights Controlled by Hengrui in the Territory that are
improvements to a Licensed Compound or otherwise reasonably useful for the Exploitation of Licensed Products (“Improvements”), subject to any preexisting rights of Third Parties and for a limited period of six (6) months from the date
of disclosure by Hengrui to Arcutis of such Improvements. Arcutis will have no rights to Exploit the Improvements under this Agreement, unless and until a mutually agreeable license agreement or one or more mutually agreeable amendments to this
Agreement specifying the terms and conditions of such Exploitation is executed by the Parties. 
 3.2 Licenses to Hengrui.
Arcutis hereby grants to Hengrui (i) a non-exclusive, non-sublicenseable (other than to Hengrui’s Affiliates, service providers and collaborators),
royalty-free license to use the Option Period Study Results for internal research purposes (except in the Field in the Territory), and (ii) if Arcutis exercises the Option as set forth in Section 2.1, a nonexclusive, royalty-free license
with the right to sublicense (through multiple tiers) as set forth in Section 3.5, effective as of the License Effective Date, to use (except in the Field in the Territory) the Option Period Study Results and Patent Right(s) arising from the
performance of the Option Period Studies that are Controlled by Arcutis. 
 3.3 No Other Licenses. Neither Party grants to the
other Party any rights or licenses in or to any intellectual property, whether by implication, estoppel, or otherwise, other than the license rights that are expressly granted under this Agreement. 

3.4 Sublicensing by Arcutis. 

3.4.1 Arcutis shall have the right to grant sublicenses (including any option to obtain a sublicense, each a
“Sublicense”) to any of its Affiliates or any Third Party (each, a “Sublicensee”), under the license set forth in Section 3.1, provided that: (a) each Sublicense shall be granted pursuant to
a written agreement that complies with Section 3.4.2; (b) Arcutis shall provide Hengrui with written notice of the identity of each Sublicensee within thirty (30) days following the execution of each Sublicense, along with a redacted copy
of the applicable Sublicense agreement sufficient to demonstrate compliance with clause (a); and (c) Arcutis shall remain responsible for the Sublicensee’s conformity to those portions of this Agreement applicable to such Sublicensee. 

  
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 3.4.2 Arcutis shall include in each such Sublicense agreement provisions that
(a) such Sublicensee is bound by and subject to all applicable terms and conditions of this Agreement (other than terms and obligations bearing on financial considerations and audit rights) in the same manner and to the same extent as
Arcutis’s bound thereby; (b) Arcutis shall have the right to grant to Hengrui cross-reference rights consistent with Section 4.1.3(a) with respect to Regulatory Filings and Regulatory Approvals generated, filed or obtained by or on
behalf of such Sublicensee within the scope of such sublicense or option agreement; (c) the Sublicensee has obligations of confidentiality and non-use regarding Confidential Information that are
substantially the same as those undertaken by the Parties pursuant to Section 9.2 hereof; and (d) the Sublicensee has indemnification obligations that are substantially the same as those undertaken by Arcutis pursuant to Section 10.3
hereof. 
 3.5 Sublicensing by Hengrui. 

3.5.1 Hengrui shall have the right to grant Sublicenses under the license set forth in Section 3.2, provided that: (a) each
Sublicense shall be granted pursuant to a written agreement that complies with Section 3.5.2;(b) Hengrui shall provide Arcutis with written notice of the identity of each Sublicensee within thirty (30) days following the execution of each
Sublicense, along with a redacted copy of the applicable Sublicense agreement sufficient to demonstrate compliance with clause (a): and (c) Hengrui shall remain responsible for the Sublicensee’s conformity to those portions of this
Agreement applicable to such Sublicensee. 
 3.5.2 Hengrui shall include in each such Sublicense agreement with respect to each of
the licenses under clause (i) and/or clause (ii) of Section 3.2 provisions that (a) such Sublicensee is bound by and subject to all applicable terms and conditions of this Agreement (other than terms and obligations bearing on
financial considerations and audit rights) in the same manner and to the same extent as Hengrui is bound thereby; (b) Hengrui shall have the right to grant to Arcutis cross-reference rights consistent with Section 4.1.3(b) with respect to
Regulatory Filings and Regulatory Approvals generated, filed or obtained within the scope of such sublicense or option agreement: (c) Hengrui shall have the right to grant to Arcutis a limited license, in the Field and in the Territory only,
consistent with Section 3.1 to any and all scientific or technical information, results, materials. and data, whether or not patentable, and Patent Rights developed within the scope of such sublicense or option agreement, solely to the extent
that each of the foregoing is an improvement to a Licensed Compound or otherwise reasonably useful for the Exploitation of Licensed Products, (d) the Sublicensee has obligations of confidentiality and
non-use regarding Confidential Information that are substantially the same as those undertaken by the Parties pursuant to Section 9.2 hereof, and (e) the Sublicensee has indemnification obligations
that are substantially the same as those undertaken by Hengrui pursuant to Section 10.3 hereof. 
 3.6 Subcontractors.
Arcutis may Exploit its rights in the Licensed Technology under this Agreement through one or more Third Party contractors or consultants without meeting the requirements of Section 3.4, provided that (a) Arcutis remains responsible for
the performance of such activities by such contractors and consultants, and (b) the contractor or consultant undertakes in writing obligations of confidentiality and non-use regarding Confidential
Information that are substantially the same as those undertaken by the Parties pursuant to Section 9.2 hereof. 

  
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 3.7 Transfer of Licensed Know-How.
After the License Effective Date, upon Arcutis’s requests, Hengrui shall without charge deliver to Arcutis, in English, all additional existing Licensed Know-How not delivered during the Option Period
pursuant to Section 2.2, including (a) all technical data and information within Hengrui’s possession that may be required by any Regulatory Authorities in the Territory to initiate an investigational new drug file or dossier (such as
an IND, IMPD, or the equivalent); and (b) all existing Licensed Know-How relating to the chemical structure, formulation or manufacture of Licensed Compounds. Any Licensed
Know-How that is required for submission to Regulatory Authorities and that was originally created in Chinese but translated to English will be delivered in both the original Chinese and translated English.
along with (i) a verification that the translation is complete and accurate, and (ii) the name, address, and a brief statement of the qualifications of the person making the translation. From time to time during the Term, or promptly upon
Arcutis’s reasonable request, Hengrui shall without charge transfer any additional Licensed Know-How in Hengrui’s possession to the extent not previously delivered. 

ARTICLE IV 
 DEVELOPMENT,
COMMERCIALIZATION, NON-COMPETITION 
 4.1 Development. 

4.1.1 Pre-Clinical and Clinical Activities. From and after the License Effective Date,
as between the Parties, Arcutis shall have sole responsibility for the Exploitation of one or more Licensed Products in the Field in the Territory at its cost and expense (including responsibility for all funding, resourcing and decision-making).

 4.1.2 Regulatory Filings. As between Arcutis and Hengrui, Arcutis will have sole responsibility for (a) preparing and
submitting all Regulatory Materials for Licensed Products in the Field in the Territory and (b) determining all regulatory plans and strategies for Licensed Products in the Field in the Territory. As between the Parties, Arcutis will have the
exclusive right to submit to and appear before Regulatory Authorities on any matter with respect to Licensed Products in the Field in the Territory. Arcutis (or its Affiliates or Sublicensees, as applicable) will own all Regulatory Materials
(including Regulatory Approvals) for Licensed Products in the Field in the Territory and all such Regulatory Materials shall be submitted in the name of Arcutis (or its Affiliate or Sublicensee, as applicable) in the Field in the Territory. As
between the Parties. Arcutis shall have sole decision-making authority for all regulatory matters with respect to Licensed Products in the Field (including the content of any regulatory filing or dossier, pharmacovigilance reports, patient risk
management strategies and plans, labeling, safety, the decision to file any MAA, and recalls and withdrawals) in the Territory. 

4.1.3 Mutual Cross-Reference Rights. From and after the Licensed Effective Date: 

(a) Arcutis will provide Hengrui with any appropriate letters or other similar documentation necessary to authorize Hengrui, its
licensees (subject to 9.1.2(i)) and Sublicensees (subject to 3.5.2(b)) to cross-reference and rely (on a non-exclusive basis) upon the contents of any of Regulatory Filings and Regulatory Approvals for the
Licensed Products in the Field in the Territory, for the purposes of the filing, obtaining and maintaining of Regulatory Approvals for Licensed Products (except in the Field in the Territory). 

  
 11 

 CONFIDENTIAL 
  

 (b) Hengrui will provide Arcutis with any appropriate letters or other similar
documentation necessary to authorize such Arcutis and its Sublicensees (subject to 3.4.2(b)) to cross-reference and rely (on a non-exclusive basis) upon the contents of any of Regulatory Filings and Regulatory
Approvals for the Licensed Products, for the purposes of the filing, obtaining and maintaining of Regulatory Approvals for Licensed Products in the Field in the Territory. 

4.1.4 Development Reports. Within sixty (60) days of January 1 of a Calendar Year, Arcutis will provide to Hengrui a
high-level annual written report presenting a summary of the development and regulatory activities of Arcutis with respect to Licensed Products in the Field in the Territory (each, a “Development Report”). Such reports and
the contents thereof shall be Confidential Information of Arcutis. 
 4.1.5 Support. Upon Arcutis’s request, Hengrui
shall (a) provide reasonable assistance, at Arcutis’s cost and expense (at Hengrui’s ordinary FTE rate) to support the Arcutis’s activities under this Section 4.1, including with respect to writing and finalizing any reports
necessary to support the filing of an IND with the FDA for the Licensed Product selected. 
 4.1.6 Timeline. Arcutis agrees,
under good faith and Commercially Reasonable Efforts, to develop at least one (1) Licensed Product. If the pace of clinical development of Licensed Product appears unusually slow or challenging, Hengrui and Arcutis agree to meet to review the
status of such development. The Parties acknowledge that breach of this Section 4.1.6 is material breach for the purpose of Section 11.2. 

4.2 Commercialization. 

4.2.1 Marketing and Commercialization Activities. Upon receiving Regulatory Approval for one or more Licensed Product(s) in one
or more country(ies) of the Territory, Arcutis will have sole right and responsibility with respect to the marketing and commercialization of such Licensed Product(s) in such country(ies). 

4.2.2 Commercialization Report. For each Calendar Year following first Regulatory Approval for a Licensed Product, Arcutis shall
provide to Hengrui annually within sixty (60) days after the end of such Calendar Year a high-level report summarizing Arcutis’s activities with respect to the commercialization of Licensed Products in the Field in the Territory in such
Calendar Year (“Commercialization Report). Such reports and the contents thereof shall be Confidential Information of Arcutis. 

4.2.3 Timeline. Arcutis agrees that, following Regulatory Approval of a licensed Product, it will use good faith and
Commercially Reasonable Efforts to commercialize such Licensed Product. lithe pace of commercialization of Licensed Product appears unusually slow or challenging, Hengrui and Arcutis agree to meet to review the status of such commercialization. The
Parties acknowledge that breach of this Section 4.2.3 is material breach for the purpose of Section 11.2. 

  
 12 

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 4.3 Joint Coordination Committee 

(a) Establishment. Within sixty (60) days after the Effective Date, the Parties shall establish a joint coordination
committee (“Joint Coordination Committee” or the “JCC”) to (i) review Arcutis’s Development and commercialization of Licensed Products in the Field in the Territory, (ii) review
Hengrui’s Development and commercialization of Licensed Products outside of the Field and/or outside of the Territory and (iii) in the event that both Parties are Developing and/or commercializing the same Licensed Product, coordinate the
activities of the Parties with respect to such Licensed Product, including safety data and registration in the respective field and territory; (iv) facilitate communication with respect to each Party’s activities under this Agreement; and
(v) perform such other functions as are specifically designated for the JCC in this Agreement or otherwise as agreed by the Parties. 

(b) Committee Membership. The JCC shall each be comprised of an equal number of representatives from each Party. Unless
otherwise agreed by the Parties, the exact number of such representatives for each of Arcutis and Hengrui shall be three (3). Either Party may replace its respective representatives at any time with prior notice to the other Party, provided
that, such replacement is of comparable authority and scope of functional responsibility within that Party’s organization as the person he or she is replacing. 

(c) Meetings. The JCC shall each meet at least two (2) times during each year, or as more or less often as otherwise
agreed by the Parties, and such meeting may be conducted by telephone, videoconference or in person as determined by the JCC; provided that at least one meeting per year shall be held in person. All in-person
meetings shall be held on an alternating basis between Arcutis’s and Hengrui’s facilities, unless otherwise agreed by the Parties. As appropriate, other employee representatives of the Parties may attend Committee meetings as observers,
but no Third-Party personnel may attend unless otherwise agreed by the Parties. Each Party may also call for special meetings to resolve particular matters requested by such Party. 

(d) Scope of Governance. The JCC shall not have any decision making authority, and each Party shall retain the rights, powers
and discretion to decide matters concerning the Development and commercialization of Licensed Products in its respective field and territory, provided that such decisions are consistent with the terms and conditions of this Agreement. In no event
shall the JCC be delegated or vested with rights, powers or discretion unless such delegation or vesting is expressly provided herein. or the Parties expressly so agree in writing. 

4.4 Non-Competition 

4.4.1 Non-competition by Arcutis, During the Option Period, and continuing during the Term
after exercise of the Option by Arcutis, if Arcutis acquires rights in, develops, or causes the development of a ligand that binds to Janus Kinase (JAK) I, JAK2 and/or JAK3 in the Field. to the extent such ligand is not Controlled by Hengrui
(“Competing Product”). Arcutis shall immediately notify Hengrui by writing, and the Parties shall negotiate in good faith whether, in each case as mutually agreed upon: 

(a) to terminate all rights and licenses granted under this Agreement, or 

  
 13 

 CONFIDENTIAL 
  

 (b) to grant to Hengrui a license or sublicense, as the case may be, the right to
develop and commercialize the Competing Product in China. 
 Notwithstanding the foregoing, in the event Arcutis undergoes a Change of Control (as defined
in Section 5.3.5), then this Section 4.4.1 shall not apply to any program for the research, development and/or commercialization of a Competing Product that the Third Party acquiror (and/or its Affiliates existing immediately prior to the
consummation of such Change of Control) had ongoing immediately prior to the consummation of such Change of Control (each such program, a “Competing Program”), provided that (i) no Licensed Technology is used by the
acquiror in connection with such Competing Program(s), and (ii) the acquiror segregates the personnel engaged in the research, development and/or commercialization of the Licensed Compound and any Licensed Product from the personnel engaged in
the Competing Program(s). 
 4.4.2 Non-competition by Hengrui. 

(a) During the Option Period and continuing during the Term after exercise of the Option by Arcutis, Hengrui shall not develop or
commercialize the Licensed Compound or any Licensed Product in the Field in the Territory. 
 (b) During the Option Period and
continuing during the Term after exercise of the Option by Arcutis, if Hengrui decides to grant a license or other rights with respect to the License Compound or any Licensed Product in the Additional Field anywhere in the Territory, Arcutis shall
have the right of first refusal for such license or other rights as set forth in this subclasses (b). Prior to granting any such license or other rights to any Third Party, Hengrui shall provide Arcutis written notice (“Hengrui ROFR
Notice”), which shall identify the rights that Hengrui wishes to grant to such Third Party and the associated financial and other material terms. If, within thirty (30) days following receipt of the Hengrui ROFR Notice, Arcutis
notifies Hengrui of its interest to obtain such rights, Hengrui and Arcutis shall negotiate in good faith for a period of ninety (90) days an amendment to this Agreement to incorporate such rights. If (a) Arcutis does not provide such
written notice within thirty ‘30) days or (b) the Parties fail execute such amendment within ninety (90) days following Arcutis’s written notification, then Hengrui shall be free to grant such rights to such Third Party on terms
that are no more favorable ‘when taken as a whole) to such Third Party than those last offered to Arcutis and otherwise shall have no further obligation to Arcutis. “Additional Field” means
non-topical formulation’s) of Licensed Compound indicated for the treatment of psoriasis, vitiligo, atopic dermatitis, alopecia areata, and. or hidradenitis suppurativa. 

(c) [***] 
 ARTICLE V

 PAYMENTS 

5.1 Milestone Payments. Arcutis shall pay to Hengrui the respective one-time only (for
clarity, in each case only for the first Licensed Product), non-refundable milestone payments set forth below upon the first achievement of the applicable milestone event. 

  
 14 

 CONFIDENTIAL 
  

			
	 Milestone Event
	  	Milestone Payment
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]

 5.2 Milestone Payment Terms. Arcutis shall notify Hengrui in writing within fifteen
(15) Business Days following the achievement of each milestone event set forth in Section 5.1, and, except as noted below, shall make the appropriate milestone payment in Dollars by wire transfer to a bank designated in writing by Hengrui,
within sixty (60) days after the achievement of such milestone event. Each milestone payment stated in the table in Section 5.1 shall be paid no more than once under this Agreement, regardless of whether or not similar achievements) are
thereafter made for the same or one or more other Licensed Products. [***] 
 5.3 Royalties. 

5.3.1 Royalty Payments. Arcutis shall pay to Hengrui royalties, with respect to Net Sales, at the following royalty rates: 

 

			
	 Portion of Aggregate
 Net
Sales during a
 Calendar Year
	  	Royalty Rate, as of
that Portion of Net
Sales
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]

  
 15 

 CONFIDENTIAL 
  

 5.3.2 Step-Down. The royalty rates under Section 5.3.1 shall be reduced,
on a country-by-country basis, to [***] of the rates otherwise stated in Section 5.3.1 with respect to any Net Sales made during any portion of the Royalty Term in
the country of sale in which there is not at least one (1) Valid Claim under Licensed Patent Rights in such country. 
 5.3.3
Anti-Stacking. [***] 
 5.3.4 Generic Competition. Upon commencement of Generic Competition with respect to a Licensed
Product in a country within the Territory, and thereafter for so long as such Generic Competition persists, the royalty rates applicable under Section 5.3.1 shall [***]. 

5.3.5 Sublicensing Income. During the Term, Arcutis shall pay Hengrui a portion of any and all
non-royalty sublicense income received by Arcutis in consideration for a Sublicense under the license set forth in Section 3.1, including upfront and milestone payments (“Sublicensing Income”)
(each such payment to be made within sixty (60) days of Arcutis’s receipt of the applicable Sublicensing Income), according to the following schedule: 
  

			
	 Stage of development of License Product

reached by Licensee, Sublicensee or Affiliate

in
Territory                                        
            
	  	Percent of Sublicensing Income due to
Hengrui
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]

 [***] 
 For the
purposes of this Section 5.3.5. sublicensing income will not include anything of value Arcutis receives as part clan) transaction relating to a change of control (“Change of Control”). A Change of Control means an
occurrence any of the following: 
 (a) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of Arcutis
representing more than 50% of the total voting power represented by Arcutis’s then outstanding voting securities; or 
 (b) The
consummation of the sale or disposition by Arcutis all or substantially all of its assets; or 

  
 16 

 CONFIDENTIAL 
  

 (c) The consummation of a merger or consolidation of Arcutis with any other
corporation, other than a merger or consolidation which would result in the voting securities of Arcutis’s outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or its parent) at least 50% of the total voting power represented by the voting securities of Arcutis or such surviving entity or its parent outstanding immediately after such merger or consolidation. 

5.3.6 Payment Terms. Royalties reportable in each Royalty Report provided for under Section 6.1 shall be due on the date
such Royalty Report is due. Royalty payments will be made to Hengrui in Dollars by wire transfer to a bank designated in writing by Hengrui. 

5.4 Taxes. Payment shall be made in full, without deduction or withholding for currency exchange fees. Arcutis and Hengrui shall
equally split any wire transfer fees. Hengrui shall pay all sales, turnover, income, revenue, value added, and other taxes, levies, and governmental charges (“Taxes”) levied on account of any milestone and royalty payments
accruing or made to Hengrui under this Agreement. If and to the extent that provision is made in law or regulation of any country for withholding of Taxes with respect to any such payment, then Arcutis shall promptly pay such Tax for and on behalf
of Hengrui to the proper Governmental Authority, and shall promptly furnish Hengrui with receipt of payment. Arcutis shall be entitled to deduct any such Taxes actually paid from such milestone or other payment due Hengrui, or be promptly reimbursed
by Hengrui if no further payments are due to Hengrui. Each Party agrees to reasonably assist the other Party in claiming exemption from such deductions or withholdings under double taxation or similar agreements or treaties from time to time in
force and in minimizing the amount required to be so withheld or deducted. 
 ARTICLE VI 

ACCOUNTING AND REPORTING 

6.1 Royalty Reports. Within [***] after the end of each Calendar Quarter during the term of this Agreement following the First
Commercial Sale of a Licensed Product, Arcutis shall furnish to Hengrui a quarterly written report showing in reasonably specific detail (a) the calculation of Net Sales by Arcutis and its Affiliates during such Calendar Quarter; (b) the
calculation of Net Sales by Arcutis’s non-Affiliate Sublicensees, if during the Calendar Quarter immediately preceding such Calendar Quarter; (c) the calculation of the royalties, if any, that shall
have accrued based upon such Net Sales; (d) the withholding taxes. if any, required by law to be deducted with respect to such sales; and (e) the exchange rates, if any, used in determining the amount of Dollars ‘a “Royalty
Report”). With respect to sales of Licensed Products invoiced in Dollars, the gross sales, Net Sales and royalties payable shall be expressed in Dollars. With respect to (i) Net Sales invoiced in a currency other than Dollars and
(ii) cash consideration paid in a currency other than Dollars by Sublicensees hereunder, all such amounts shall be expressed both in the currency in which the distribution is invoiced and in the Dollar equivalent. The Dollar equivalent shall be
calculated using the average of the exchange rate (local currency per US $1) published in The Wall Street Journal, Western Edition, under the heading ‘‘Currency Trading” on the last business day of each month during the applicable
Calendar Quarter, or other newspaper agreed to by the Parties. 

  
 17 

 CONFIDENTIAL 
  

 6.2 Audits. During the Royalty Term, upon the written request of Hengrui and
not more than once in each Calendar Year, Arcutis shall permit an independent certified public accounting firm of nationally recognized standing selected by Hengrui and reasonably acceptable to Arcutis, at Hengrui’s expense, to have access
during normal business hours to such of the financial records of Arcutis as may be reasonably necessary to verify the accuracy of the payment reports hereunder for the eight (8) Calendar Quarters immediately prior to the date of such request
(other than records for which Hengrui has already conducted an audit under this Section). 
 6.2.1 If such accounting firm concludes
that additional amounts were owed during the audited period, Arcutis shall pay such additional amounts within thirty (30) days after the date Hengrui delivers to Arcutis such accounting fires written report so concluding. The fees charged by
such accounting firm shall be paid by Hengrui; provided, however, if the audit discloses that the royalties payable by Arcutis for such period are more than [***] of the royalties actually paid for such period, then Arcutis shall pay the reasonable
fees and expenses charged by such accounting firm. 
 6.2.2 Hengrui shall cause its accounting firm to retain all financial
information subject to review under this Section 6.2 in strict confidence; provided, however, that Arcutis shall have the right to require that such accounting firm, prior to conducting such audit, enter into an appropriate non-disclosure agreement with Arcutis regarding such financial information. The accounting firm shall disclose to Hengrui only whether the reports are correct or not and the amount of any discrepancy. No other
information shall be shared. Hengrui shall treat all such financial information as Arcutis’s Confidential Information. 
 ARTICLE VII

 INTELLECTUAL PROPERTIES 

7.1 Ownership. 

7.1.1 Background Technologies. Other than Option Period Study Results, each Party shall retain all rights, title and interest in
and to its respective background technologies and intellectual properties (collectively. the “Background Technologies”), including patents, patent applications, rights to patents, confidential information, know-how, programs, and processes in existence prior to the Effective Date or conceived, developed or acquired thereafter. Except for the licenses and rights expressly set forth in this Agreement, neither Party
grants or shall be required to grant to the other Party, by implication or otherwise, any license or right under its Background Technologies, nor will a Party be required to disclose any of its Background Technologies to the other Party, except as
is explicitly required under this Agreement. For clarity, any Invention, scientific or technical information, results, materials, and data conceived, developed or acquired during the Term, other than Option Period Study Results, shall be part of the
Background Technologies, and ownership thereof shall be as determined under the inventorship and authorship rules and precedents prevailing in the United States. 

7.1.2 Option Period Study Results. Should any Invention, scientific or technical information, results, materials, and data,
whether or not patentable, be conceived, developed or acquired directly in the course of work done in the Option Period Studies, it and all intellectual property and other rights and title therein, including patents, patent applications, rights to
patents, confidential information, know-how, programs, and processes (a) shall be owned by Arcutis to the extent the same was conceived, developed or acquired solely by Arcutis

  
 18 

 CONFIDENTIAL 
  

 
or its personnel; (b) shall be owned by Hengrui to the extent the same was conceived, developed or acquired solely by Hengrui or its personnel; and (c) shall be jointly owned by both
Parties if it was conceived, developed or acquired jointly by both Parties or their respective personnel. Inventorship and authorship will be determined under the applicable rules and precedents prevailing in the United States. For clarity, any
Option Period Study Results solely or jointly owned by Hengrui shall, to the extent of such interest, be part oldie Licensed Know-How or Licensed Patents, as the case may be. 

7.1.3 Rights of Joint Owners. Subject to the licenses and covenants in this Agreement, including Sections 3.1, 3.2, and 9.1,
each of the joint owners of any Option Period Study Results or jointly-owned Background Technologies (if any)shall be entitled during and after the Term to make, use, sell, offer for sale, import, reproduce, modify ‘and make derivative works
from), distribute, perform, display and otherwise exploit and practice any such jointly-owned Option Period Study Results or jointly-owned Background Technologies (if any) and to authorize others to do so, without requirement of consent from or
accounting to the other owner of such intellectual property. Nothing in this Section 7.1.3 should be construed as granting any license, implied or express, other than the licenses expressly granted under this Agreement. 

7.2 Patent Prosecution and Maintenance. 

7.2.1 Hengrui shall Prosecute all Licensed Patent Rights owned solely by Hengrui or jointly by Hengrui and a Third Party in its sole
discretion and at its own cost and using prosecution counsel of its choice. Hengrui shall promptly provide to Arcutis copies of all material prosecution communications regarding any such Licensed Patent Rights in the Territory, and will send Arcutis
copies of drafts of such material prosecution submissions prior to filing. Hengrui will specifically consider all comments and suggestions provided by Arcutis on such material patent prosecution submissions in good faith and will use reasonable
efforts to arrive at joint decisions on responses. If Hengrui decides to abandon or terminate any such Licensed Patent Rights in the Territory, it shall provide written notice to Arcutis no less than thirty (30) days prior to termination and
give Arcutis the opportunity to take over, at Arcutis’s expense, the prosecution and maintenance of such Patent Rights. 
 7.2.2
Arcutis shall Prosecute all Patent Rights owned solely by Arcutis or jointly by Arcutis and a Third Party in its sole discretion and at its own cost and using prosecution counsel of its choice. 

7.2.3 The Parties shall cooperate in good faith to determine which Party or Parties shall Prosecute Patent Rights owned jointly by
Hengrui and Arcutis. 
 7.3 Enforcement of Patent Rights. 

7.3.1 Notice of Infringement. Each Party shall promptly inform the other of any suspected infringement of any of the Licensed
Patent Rights or the infringement or misappropriation of Licensed Know-How by a Third Party, to the extent such infringement involves Exploitation in the Field during the Term. Any suspected infringement of
any of the Licensed Patent Rights in the Field in the Territory is referred to herein as a “Covered Infringement.” 

  
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 7.3.2 First Right to Take Action. If a suspected infringement or
misappropriation does not involve a Covered Infringement, Hengrui may take, or refrain from taking, any action Hengrui chooses, and Arcutis shall have no right to take any action with respect to such suspected infringement or misappropriation, nor
to any recoveries with respect thereto. Hengrui will exert reasonable efforts to keep Arcutis informed of actions Hengrui may take as described in the preceding sentence. If the suspected infringement involves a Covered Infringement, Arcutis shall,
within thirty (30) days of the first notice referred to in Section 7.3.1, inform Hengrui whether or not Arcutis (and/or its Sublicensee) intends to institute suit against such Third Party with respect to such Covered Infringement. Hengrui
will not take any steps toward instituting suit against any Third Party involving a Covered Infringement until Arcutis has informed Hengrui of its intention pursuant to the previous sentence. 

7.3.3 Action by Arcutis. If Arcutis notifies Hengrui that Arcutis (and/or its Sublicensee) intends to institute suit against a
Third Party with respect to a Covered Infringement, and Hengrui does not agree to join in such suit as provided in Section 7.3.4, Arcutis (and/or its Sublicensee) may bring such suit on its own and shall in such event bear all costs of, and
shall exercise all control over, such suit. Arcutis (and/or its Sublicensee) may, at its expense, bring such action in the name of Hengrui and/or cause Hengrui to be joined in the suit as a plaintiff. Recoveries, if any, whether by judgment, award,
decree or settlement, shall, after reimbursement of Arcutis for the costs of such action, be treated as if they were Net Sales for purposes of calculating royalties under Section 5.3. 

7.3.4 Joint Action. If Arcutis notifies Hengrui that it (and/or its Sublicensee) desires to institute suit against such Third
Party with respect to a Covered Infringement, and Hengrui notifies Arcutis within thirty (30) days after receipt of such notice that Hengrui desires to institute suit jointly, the suit shall be brought jointly in the names of both Parties and
all costs thereof shall be borne equally. Recoveries, if any, whether by judgment, award, decree or settlement, shall, after the reimbursement of each of Hengrui and Arcutis for its share of the joint costs in such action, be shared in relation to
the damages suffered by each Party. 
 7.3.5 Action by Hengrui. If Arcutis notifies Hengrui that it (and or its Sublicensee)
does not intend to institute suit against such Third Party with respect to a Covered Infringement (or fails to give any notice in this respect or to actually bring a suit against the Third Party). Hengrui may institute suit on its own. Hengrui shall
bear all costs of, and shall exercise all control over, such suit. Recoveries, if any, whether by judgment, award, decree or settlement, shall belong solely to Hengrui. 

7.3.6 Abandonment of Actions. Should either Hengrui or Arcutis (and/or its Sublicensee) commence a suit under the provisions of
this Section 7.3 and thereafter elect to abandon the same, it shall give timely notice to the other Party, who may, if it so desires, be joined as a plaintiff in the suit (or continue as such if it is already one) and continue prosecution of
such suit, provided, however, that the sharing of expenses and any recovery of such suit shall be as equitably agreed upon between Hengrui and Arcutis. 

7.3.7 Cooperation. In any suit to enforce and/or defend the Licensed Patent Rights pursuant to this Section 7.3, the Party
not in control of such suit shall, at the request and expense of the controlling Party, reasonably cooperate and, to the extent possible, have its employees testify when requested and make available relevant records, papers, information, samples,
specimens, and the like. 

  
 20 

 CONFIDENTIAL 
  

 ARTICLE VIII 

REPRESENTATIONS AND WARRANTIES 

8.1 Mutual Representations and Warranties. Each Party hereby represents and warrants to the other Party as follows: 

8.1.1 Such Party is a corporation duly organized, validly existing and in good standing under the laws of the State or country in which
it is incorporated. 
 8.1.2 Such Party (a) has the corporate power and authority and the legal right to enter into this
Agreement and to perform its obligations hereunder, and (b) has taken all necessary corporate action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. This Agreement has been
duly executed and delivered on behalf of such Party, and constitutes a legal, valid, binding obligation, enforceable against such Party in accordance with its terms. 

8.1.3 All necessary consents, approvals and authorizations of all Governmental Authorities and other persons required to be obtained by
such Party in connection with this Agreement have been obtained. 
 8.1.4 The execution and delivery of this Agreement and the
performance of such Party’s obligations hereunder (a) do not conflict with or violate any requirement of Applicable Law and (b) do not conflict with, or constitute a default under, any contractual obligation of such Party. 

8.2 Hengrui Additional Representations and Warranties. Hengrui hereby represents and warrants to Arcutis as follows: 

8.2.1 Hengrui and its Affiliates own the Licensed Technology, and, without limiting the foregoing, Hengrui is entitled to grant the
licenses specified herein with respect thereto. 
 8.2.2 Hengrui and its Affiliates have not granted to any Third Party any option,
license or other right or interest under the Licensed Patent Rights to Exploit the Licensed Technology in the Field in the Territory as of the Effective Date and during the Term of this Agreement, unless this Agreement is earlier terminated or the
Option is not exercised on or prior to the last day of the Option Period, Hengrui will not grant to any Third Party any option, license or other right or interest under the Licensed Patent Rights to Exploit the Licensed Technology in the Field in
the Territory. 
 8.2.3 No employee of Hengrui or its Affiliates has breached any non-use or
confidentiality obligations under any agreement with his or her respective prior employers, or has otherwise misappropriated any trade secret or confidential information of such employers, in each case relating to the Licensed Technology. 

  
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 CONFIDENTIAL 
  

 8.2.4 To the best actual knowledge of Hengrui the development, use, sale and import of
Licensed Compounds will not infringe or misappropriate any valid intellectual property rights owned or possessed by any Third Party. 

8.2.5 To the best actual knowledge of Hengrui, there are no pending or threatened claims, judgments or settlements against Hengrui or
its Affiliates relating to the Licensed Technology. 
 8.2.6 Hengrui has disclosed, or will disclose to Arcutis in accordance with
Section 2.3, all material information in its or its Affiliates’ possession regarding the Licensed Compounds (including all clinical trial and safety data, databases and analyses). 

8.2.7 To the best actual knowledge of Hengrui, no Third Party has infringed or misappropriated or is infringing or misappropriating any
Licensed Technology. 
 ARTICLE IX 

COVENANTS 
 9.1
Exclusivity; Other Agreements. 
 9.1.1 During the Option Period and continuing during the Term after exercise of the Option
by Arcutis, Hengrui and its Affiliates shall not, without Arcutis’s prior written consent in each instance: (a) grant or assign to any Third Party any option, license or other right in the Field in the Territory under the Licensed
Technology or any portion or aspect thereof, or (b) solicit or enter into or continue any negotiations or discussions with any Third Party with respect to any of the foregoing. 

9.1.2 [***] 
 9.2
Obligations of Confidentiality and Non-Use. 
 9.2.1 Confidential Information.
Except as expressly provided herein, the Parties agree that the receiving Party shall not publish or otherwise disclose and shall not use for any purpose any information furnished to it by the other Party hereto under this Agreement (or prior to the
Effective Date) which if disclosed in tangible form is marked “Confidential” or with other similar designation to indicate its confidential or proprietary nature or if disclosed orally is indicated orally to be confidential or proprietary
by the Party disclosing such information at the time of such disclosure and is confirmed in writing as confidential or proprietary by the disclosing Party within a reasonable time after such disclosure (collectively, “Confidential
Information”). Notwithstanding the foregoing. Confidential Information shall not include information that, in each case as demonstrated by written documentation: 

(a) was already known to the receiving Party at the time of first disclosure or, as shown by written documentation, was developed by
the receiving Party outside the Option Period Studies and independent of disclosure by the disclosing Party; 
 (b) was generally
available to the public or otherwise part of the public domain at the time of its disclosure to the receiving Party; 

  
 22 

 CONFIDENTIAL 
  

 (c) became generally available to the public or otherwise part of the public domain
after its disclosure and other than through any act or omission of the receiving Party in breach of this Agreement; or 
 (d) was
subsequently lawfully disclosed to the receiving Party by a person other than a Party or developed by the receiving Party without reference to any information or materials disclosed by the disclosing Party. 

9.2.2 Permitted Disclosures. Notwithstanding the provisions of Section 9.2.1 above, each Party hereto may disclose the
other Party’s Confidential Information to the extent such disclosure is reasonably necessary to exercise the rights granted to it, or reserved by it under this Agreement, prosecute or defend litigation, prosecute patent applications in
accordance with this Agreement, comply with applicable laws or governmental regulations, submit information to tax or other Governmental Authorities, provided that if a Party is required to make any such disclosure of the other Party’s
Confidential Information, to the extent it may legally do so, it will give reasonable advance notice to such other Party of such disclosure and. save to the extent inappropriate in the case of patent applications or otherwise. will use its
reasonable efforts to secure confidential treatment of such information prior to its disclosure (whether through protective orders or otherwise). 

9.2.3 Terms of Agreement. Subject to Section 9.2.1, neither Party may disclose the terms of this Agreement without the
prior written consent of the other Party; provided, however, that either Party may make such a disclosure (a) to the extent required by law or by the requirements of any nationally recognized securities exchange, quotation system or over-the-counter market on which such Party has or has applied to have its securities listed or traded, (b) to its legal and financial advisors, or (c) to any actual
or prospective acquirers, investors, collaborators and lenders (as well as and to their respective legal and financial advisors) who are obligated to keep such information confidential. If such disclosure is required under clause (a), the disclosing
Party shall make reasonable efforts to provide the other Party with notice beforehand and to coordinate with the other Party with respect to the wording and timing of any such disclosure. 

9.2.4 Publicity. Without limiting the foregoing, and except to the extent required by law or by the requirements of any
nationally recognized securities exchange, quotation system or over-the-counter market on which such Party has or has applied to have its securities listed or traded,
neither Party shall be permitted to, directly or indirectly, issue any press release or other public statement relating to the terms of this Agreement or the transactions contemplated thereby without the prior approval of the other Party, which
shall not be unreasonably withheld or delayed. 
 9.3 Further Assurances; Consents. Each Party shall use reasonable efforts to
take such action as is reasonably necessary or appropriate in order to complete the transactions contemplated hereby on the terms and subject to the conditions set forth herein. 

9.4 Transition Services. During the Option Period and thereafter, for a period of [***] from and after the License Effective
Date, Hengrui agrees to provide reasonable assistance to Arcutis with respect to understanding and using the Licensed Know-How at no additional cost to Arcutis (the “Transition Services”).

  
 23 

 CONFIDENTIAL 
  

 ARTICLE X 

LIABILITY AND INDEMNITY 

10.1 Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL,
PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES OF ANY KIND ARISING FROM OR RELATING TO ANY PERFORMANCE OR BREACH OF THIS AGREEMENT OR ANY CLAIMS ARISING HEREUNDER, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (WHETHER IN CONTRACT, TORT (INCLUDING
NEGLIGENCE), STRICT LIABILITY OR OTHERWISE). REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION 10.1 IS INTENDED TO OR WILL LIMIT OR RESTRICT (A) THE INDEMNIFICATION RIGHTS OR
OBLIGATIONS OF ANY PARTY UNDER SECTION 10.2. (B) DAMAGES AVAILABLE TO A PARTY 
 10.2 FOR A BREACH BY THE OTHER PARTY OF THE
CONFIDENTIALITY OBLIGATIONS UNDER SECTION 9.2. OR (C) DAMAGES AVAILABLE IN THE CASE OF BREACH OF EXCLUSIVITY UNDER SECTIONS 3.1 AND 9.1. 

10.3 Indemnification. 

10.3.1 Each Party (the “Indemnitor”) shall defend, indemnify, and hold the other Party (the
“Indemnitee”) harmless from all losses, liabilities, damages and expenses (including attorneys’ fees and costs) incurred as a result of any claim, demand, action or proceeding arising out of any breach of this Agreement
by the Indemnitor, or the gross negligence or willful misconduct of the Indemnitor in the performance of its obligations under this Agreement, except in each case to the extent arising from the gross negligence or willful misconduct of the
Indemnitee or the breach of this Agreement by the Indemnitee. 
 10.3.2 Arcutis, as the Indemnitor, shall defend, Indemnify, and hold
Hengrui (as the Indemnitee) harmless from all losses, liabilities, damages and expenses (including attorneys’ fees and costs) incurred as a result of any claim, demand, action or proceeding arising out of the Exploitation of Licensed Products
by Arcutis, its Affiliate or its Sublicensee, except in each case to the extent arising from the gross negligence or willful misconduct of any Indemnitee, or from any breach of this Agreement by Hengrui. 

10.3.3 Indemnification Procedures. The Indemnitee promptly shall notify the Indemnitor of any liability or action in respect of
which the Indemnitee intends to claim such indemnification, and the Indemnitor shall have the right to assume the defense thereof with counsel selected by the Indemnitor. The indemnity agreement in this Section 10.3 shall not apply to amounts
paid in settlement of any loss, claim, damage, liability or action if such settlement is effected without the consent of the Indemnitor, which consent shall not be withheld unreasonably. The failure to deliver notice to the Indemnitor within a
reasonable time after the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve 

  
 24 

 CONFIDENTIAL 
  

 
the Indemnitor of any liability to the Indemnitee under this this Section 10.3. The Indemnitee under this Section 10.3, its employees and agents, shall cooperate fully with the
Indemnitor and its legal representatives in the investigation and defense of any action, claim or liability covered by this indemnification. 

ARTICLE XI 
 TERM AND
TERMINATION 
 11.1 Term. The term of this Agreement (the “Term”) shall begin on the Effective
Date and, unless earlier terminated in accordance with the terms of this Article II, will continue until the end of the last-to-expire Royalty Term. Upon such
expiration. Arcutis shall have, and Hengrui does hereby grant to Arcutis, an exclusive, royalty-free, fully paid-up, perpetual, non-terminable, non-revocable license, with the right to sublicense (through multiple tiers) to use the Licensed Know-How to Exploit Licensed Products in the Field in the Territory. 

11.2 Termination for Breach. Each Party shall have the right to terminate this Agreement upon written notice to the other Party
if such other Party materially breaches this Agreement and has not cured such breach to the reasonable satisfaction of the other Party within ninety (90) days after notice of such breach from the
non-breaching Party; provided, however, that if the alleged breaching Party disputes in good faith the existence or materiality of a breach specified in such notice of breach and such alleged breaching Party
provides the other Party notice of such dispute within thirty (30) clays after receiving such notice, then the Party that gave the notice of breach shall not have the right to terminate this Agreement under this Section 11.2 unless and
until it is determined in accordance with Section 12.2 that the alleged breaching Party has materially breached the Agreement as specified in the notice of breach, and then such breaching Party fails to cure such breach within ninety
(90) days following such determination. It is understood and agreed that during the pendency of such dispute, all of the terms and conditions of this Agreement shall remain in effect and the Parties shall continue to perform all of their
respective obligations hereunder. 
 11.3 Termination for Insolvency. Each Party shall have the right to terminate this
Agreement upon written notice to the other Party if the other Party incurs an Insolvency Event; provided, however, in the case of any involuntary bankruptcy proceeding, such right to terminate shall only become effective if the Party that
incurs the Insolvency Event consents to the involuntary bankruptcy or if such proceeding is not dismissed or stayed within thirty (30) days after the filing thereof. “Insolvency Event” means circumstances under which a
Party (i) has a receiver or similar officer appointed over all or a material part of its assets or business; (ii) passes a resolution for winding-up of all or a material part of its assets or
business (other than a winding-up for the purpose of, or in connection with, any solvent amalgamation or reconstruction) or a court enters an order to that effect; (iii) has entered against it an order
for relief recognizing it as a debtor under any insolvency or bankruptcy laws (or any equivalent order in any jurisdiction); or (iv) enters into any composition or arrangement with its creditors with respect to all or a material part of its
assets or business (other than relating to a solvent restructuring). 

  
 25 

 CONFIDENTIAL 
  

 11.4 Termination for Convenience. Arcutis shall have the right to terminate
this Agreement at any time and for any reason upon ninety (90) days prior written notice to Hengrui, after having discussed or consulted any potential cause or concern in good faith with Hengrui. In the event of termination of this Agreement
under this Section 11.4: (i) Arcutis shall pay all amounts then due and owing to Hengrui as of the termination date; (ii) all rights associated with Licensed Technology, to the extent granted by Hengrui to Arcutis, automatically revert
back to Hengrui as of the notice date, provided, however, that Arcutis and other Selling Parties, as applicable, shall be permitted to distribute and sell all Licensed Products that were in inventory or in production on an effective termination date
for a period of twelve (12) months following the effective termination date (“Commercialization Wind-Down Period”). in accordance with the terms of this Agreement; and (iii) except for the surviving provisions set
forth in Section 11.5.1, the rights and obligations of the Parties hereunder shall terminate as of the date of such termination. 

11.5 Effect of Expiration or Termination. Upon expiration or termination of this Agreement for any reason: 

11.5.1 The Parties shall not be relieved of any obligation accruing prior to such expiration or termination, and the provisions of
Article l (Definitions) (to the extent any of the terms defined therein are used in any or the provisions surviving pursuant to this Section 11.5.1), Section 3.3 (No Other Licenses), Article 5 (Payment) (limited to payments that remain due
and owing to Hengrui at the time of such expiration or termination). Sections 6.2 (Audits), 7.1 (Ownership). 7.2 (Patent Prosecution and Maintenance) and 7.3 (Enforcement of Patent Rights) (limited to suits that are pending as of the time of such
expiration or termination). Article 8 (Representations and Warranties), Sections 9.2 (Obligations of Confidentiality and Non-Use), 11.1 (Term) (with respect to the second sentence), 11.4 (Termination for
Convenience) (with respect to the second sentence), and 11.5 (Effect of Expiration or Termination), and Article 12 (General Provisions) shall survive the expiration or termination of this Agreement. 

11.5.2 To the extent the Agreement is only partially terminated, the licenses granted to Arcutis in Section 3.1 shall terminate
solely with respect to the Licensed Compound(s), Licensed Product(s) and country(ies) in which the termination becomes effective; provided, however, that Arcutis and other Selling Parties, as applicable, shall be permitted to distribute and sell all
Licensed Products that were in inventory or in production on an effective termination date during the Commercialization Wind-Down Period, in accordance with the terms of this Agreement. 

11.5.3 Notwithstanding the foregoing, no termination of this Agreement shall be construed as a termination of any Sublicense any
Sublicensee hereunder, and thereafter: 
 (a) each such Sublicensee of Arcutis or of any of its Sublicensees in any tier shall be
considered a direct licensee of Hengrui, provided that (i) Arcutis has first represented and warranted to Hengrui that, to Arcutis’s actual knowledge, as of the effective date of such termination, such Sublicensee is then in full
compliance with all terms and conditions of its sublicense, and (ii) such Sublicensee agrees inwriting to assume all applicable obligations of Arcutis under this Agreement; and 

  
 26 

 CONFIDENTIAL 
  

 (b) each such Sublicensee of Hengrui or of any of its Sublicensees in any tier shall
be considered a direct licensee of Arcutis, provided that (i) Hengrui has first represented and warranted to Arcutis that, to Hengrui’s actual knowledge, as of the effective date of such termination, such Sublicensee is then in full
compliance with all terms and conditions of its sublicense, and (ii) such Sublicensee agrees inwriting to assume all applicable obligations of Hengrui under this Agreement. 

11.5.4 Except where inconsistent with any Sublicense that is to survive termination pursuant to Section 11.5.3 above, and subject
to Sections 3.3 and 11.5.5, Hengrui shall have the right to Exploit Licensed Products itself or with one or more Third Parties in the Field in the Territory, and shall have the right, without obligation to Arcutis, to take any such actions in
connection with such activities as Hengrui (or its designee), at its discretion, deems appropriate. 
 11.5.5 Except in the case of
termination by reason of Hengrui’s breach. Arcutis agrees to grant and hereby grants to Hengrui the option, exercisable within sixty (60) days of the effective date of termination or expiration of the Term to negotiate an exclusive or
nonexclusive, royalty-bearing license to all or part of Arcutis’s Background Technology, if any, in existence on such effective date of termination or expiration and required for Hengrui’s Exploitation in the Field in the Territory of
those Licensed Products (if any) that were under development, or being commercialized by Arcutis or its Affiliate or Sublicense in the Field in the Territory as of or within ninety (90) clays prior to such effective date of termination or
expiration. such license to cover the right to do the foregoing under such Background Technology (the “Hengrui Option”). Hengrui may exercise the Hengrui Option by providing written notice to Arcutis of exercise of the
Hengrui Option and describing the Background Technology it wishes to license. In such case, the Parties will negotiate in good faith the terms of such a license. In the event the Parties are unable to agree upon such terms within sixty
(60) days, neither Party will be obligated to enter into such a license with the other. 
 ARTICLE XII 

GENERAL PROVISIONS 

12.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware,
without reference to its conflict of laws principles, and shall not be governed by the United Nations Convention of International Contracts on the Sale of Goods (the Vienna Convention). 

12.2 Dispute Resolution. The Parties shall meet and discuss in good faith and use reasonable efforts to settle any dispute,
controversy or claim arising from or related to this Agreement or the breach thereof. If the Parties do not fully settle any dispute, controversy or claim arising out of or relating to this Agreement, its negotiations, execution or interpretation,
or the performance by either Party of its obligations under this Agreement (other than (a) any Patent Controversy, or (b) any bona fide Third Party action or proceeding filed or instituted in an action or proceeding by a Third Party
against a Party to this Agreement), whether before or after termination of this Agreement, shall be finally resolved by binding arbitration. Whenever a Party shall decide to institute arbitration proceedings, it shall give prompt written notice to
that effect to the other Party. Any such arbitration shall be conducted in the English language under the International Dispute Resolution Procedures and Arbitration Rules of the American Arbitration Association (the “Rules”)
by a panel of three (3) arbitrators appointed in accordance with such 

  
 27 

 CONFIDENTIAL 
  

 
Rules. Any such arbitration shall be held in Hong Kong. The method and manner of discovery in any such arbitration proceedings shall be governed by the Rules. The arbitrators shall have the
authority to grant specific performance and to allocate between the Parties the costs of arbitration (including attorneys’ fees and expenses of the Parties) in such equitable manner as they determine. Judgment upon the award so rendered may be
entered in any court having jurisdiction or application may be made to such court for judicial acceptance of any award and an order of enforcement, as the case may be. In no event shall a demand for arbitration be made after the date when
institution of a legal or equitable proceeding based upon such claim, dispute or other matter in question would be barred by the applicable statute of limitations. Notwithstanding the foregoing, either Party shall have the right, without waiving any
right or remedy available to such Party under this Agreement or otherwise, to seek and obtain from any court of competent jurisdiction any interim or provisional relief that is necessary or desirable to protect the rights or property of such Party,
pending the selection of the arbitrators hereunder or pending the arbitrators’ determination of any dispute. controversy or claim hereunder. 

12.3 Patent Controversies. Notwithstanding anything in this Agreement to the contrary, any Patent Controversy shall be subject
to adjudication in accordance with the Applicable Laws of the country or jurisdiction in which the relevant Patent Right is pending or has been issued. The Parties agree that the venue of any such adjudication involving a Patent Right pending in or
issued by the United States shall be a U.S. Federal District Court (or appellate body, as necessary) sitting in San Francisco, California. U.S.A. and for a Patent Right pending in or issued by any other country, any competent court having
jurisdiction over the subject of the Patent Controversy sitting in the capital of such country (or if there is not any such competent court in the capital, a location reasonably proximate to the capital), and each Party irrevocably submits to the
jurisdiction of such court. Each Party agrees not to raise any objection at any time to the laying or maintaining of the venue of any action, suit or proceeding for such purpose in any such court, irrevocably waives any claim that such action, suit
or other proceeding has been brought in an inconvenient forum, including any forum non conveniens argument, and further irrevocably waives the right to object, with respect to such action, suit or other proceeding, that such court does not
have any jurisdiction over such Party. 
 12.4 Assignment. Neither Party may assign or transfer this Agreement or any rights
or obligations hereunder without the prior written consent of the other Party, except that a Party may assign this Agreement without such consent to its Affiliate or its successor in interest by way of merger, acquisition, or sale of all or
substantially all of its assets. Any Party making any a permitted assignment shall give the other Party a prompt written notice of such assignment. Any permitted assignment shall be binding on the successors, heirs, and assigns of the assigning
Party. Any assignment in violation of this Section 12.4 shall be null and void. 
 12.5 Publicity — Use of
Name. Neither Party shall be permitted to use the name, or any proprietary trademarks, tradenames, trade dress or logos (“Marks”) of the other Party, or its Affiliates, or its Sublicensees, in any publicity, promotion,
news release or public disclosure relating to this Agreement or its subject matter, without the prior express written permission of the other Party. 

  
 28 

 CONFIDENTIAL 
  

 12.6 Severability. If any provision of this Agreement is held to be invalid or
unenforceable by an arbitrator or any court of competent jurisdiction from which no appeal can be or is taken, the provision shall to that extent be considered severed from this Agreement, and the remainder of this Agreement will remain in full
force and effect. The Parties shall make a good faith effort to replace any invalid or unenforceable provision with a valid and enforceable one such that the Parties’ original goals and interests when entering this Agreement may be realized and
protected. 
 12.7 Waiver. Neither Party may waive or release any of its rights or interests in this Agreement except in
writing. The failure of either Party to assert a right hereunder, or to insist upon compliance with any term or condition of this Agreement, shall not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term
or condition. Any waiver by a Party of a particular breach or default by the other Party shall not operate or be construed as a waiver of any subsequent breach or default by the other Party. 

12.8 Agency. Neither Party is, nor will be deemed to be an employee, agent, or representative of the other Party for any
purpose. Each Party is an independent contractor, not an employee or partner of the other Party. Neither Party shall have the authority to speak for, represent, or obligate the other Party in any way without prior written authority from the other
Party. 
 12.9 Exhibits. All Exhibits to this Agreement shall form an integral part of this Agreement. 

12.10 Entire Understanding. This Agreement contains the entire understanding between the Parties hereto with respect to its
subject matter and supersedes any and all prior agreements, understandings and arrangements, whether written or oral. 
 12.11
Amendments. No amendments of the terms and conditions of this Agreement shall be binding upon either Party hereto unless in writing and signed by both Parties. 

12.12 Interpretation. This Agreement has been prepared jointly by the Parties and shall not be strictly construed against either
Party. Ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective of which Party may be deemed to have authored the ambiguous provision. The headings of each Article and Section in this Agreement have been inserted
for convenience of reference only and are not intended to limit or expand on the meaning of the language contained in the particular Article or Section. Except where the context otherwise requires, the use of any gender shall he applicable to all
genders, and the word “or” is used in the inclusive sense (and/or). The term “including” or “includes” as used herein means including or includes, without limiting the generality of any description preceding such term.
All references in this Agreement to the singular shall include the plural where applicable. 
 12.13 Counterparts. This
Agreement may be executed in one or more counterparts, each of which is an original, and all of which together constitute only one agreement between the Parties. The signatures of all the Parties do not need to be on the same counterpart for it to
be effective. Delivery of an executed counterpart’s signature page of this Agreement, by electronic mail in portable document format (.pdf) or by any other electronic means intended to preserve the original graphic and pictorial appearance of a
document, has the same effect as delivery of an executed original of this Agreement. 

  
 29 

 CONFIDENTIAL 
  

 12.14 Notices. Any consent, notice or report required or permitted to be given
or made under this Agreement by one of the Parties to the other Party shall be in writing, delivered by any lawful means to such other Party at its address indicated below, or to such other address as the addressee shall have last furnished in
writing to the addressor and (except as otherwise provided in this Agreement) shall be effective upon receipt by the addressee. 
  

			
	 If to Hengrui:
	  	Jiangsu Hengrui Medicine Co., Ltd.
		  	 7 Kunlunshan Road,
 Economy and Technology
Development Zone.
 Lianyungang, Jiangsu,
 China

		
		  	[***]
	
	 with a copy to (which will not constitute notice):

		
		  	 Greenberg Traurig, LLP
 One International
Place, Suite 2000
 Boston, MA 02110
 Attention: Fang Xie,
Ph.D.

		
	 If to Arcutis:
	  	Arcutis, Inc.
		  	 70 Willow Road, Suite 200
 Menlo Park, CA
94025 USA
 Attention: President

	
	 with a copy to (which will not constitute notice):

		
		  	 Fenwick and West, LLP
 555 California St.

12th Floor
 San Francisco, CA 94104

Attention: Matt Rossiter; Stefano Quintini

 [signature page follows] 

  
 30 

 CONFIDENTIAL 
  

 IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the Effective
Date. 
  

			
	Jiangsu Hengrui Medicine Co., Ltd.

 
			
		
	By:	 	/s/ Piaojang Sun

 
			
	Name:	 	Piaojang Sun
	Title:	 	Chairman of the Board

  

			
	Arcutis, Inc.
		
	By:	 	/s/ Bhaskar Chaudhuri

 
			
	Name:	 	Bhaskar Chaudhuri
	Title:	 	Executive Chairman

  
 31 

 CONFIDENTIAL 
  

 Exhibit A 

Licensed Patent Rights 
  

							
	 [***]
	  	
[***]            
	  	
[***]            
	  	
[***]            

	[***]	  	[***]	  	[***]	  	[***]
		  	[***]	  	[***]	  	[***]
		  	[***]	  	[***]	  	[***]
		  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
		  	[***]	  	[***]	  	[***]
		  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
		  	[***]	  	[***]	  	[***]
		  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
		  	[***]	  	[***]	  	[***]
		  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]

  
 32 

 CONFIDENTIAL 
  

 Exhibit B 

Option Period Studies 
 [***] 

  
 33 

 AMENDMENT NO. 1 TO 

EXCLUSIVE OPTION AND LICENSE AGREEMENT 

THIS AMENDMENT NO. 1 (this “Amendment”) to the Exclusive Option and License Agreement dated as of January 4, 2018 (the
“Agreement”), by and between Arcutis, Inc., a United States corporation incorporated in the State of Delaware (“Arcutis”) and Jiangsu Hengrui Medicine Co., Ltd., a Chinese corporation
(“Hengrui”) is entered into as of ______________, 2019 (the “Amendment Effective Date”). 

RECITALS 
 A. Pursuant to the
Agreement, Hengrui granted Arcutis an exclusive option to obtain an exclusive license under the Licensed Technology for the development of topical therapeutic products. 

B. The parties now desire to amend the Agreement to extend the Option Period. 

NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows: 

1. Definitions. Except as defined in this Amendment, the capitalized terms used herein shall have the same meanings as ascribed to them in the
Agreement. 
 2. Amendment. Section 1.24 (Option Period) is hereby deleted and replaced with the following: 

“Option Period” means the period of time commencing on the Effective Date and ending on January 1, 2020. 

3. Effect of Amendment. The parties agree that this Amendment shall be deemed to have been in full force and effective as of the Amendment Effective
Date. All the terms and conditions of the Agreement shall continue in full force and effect except as modified by the terms of this Amendment. 
 4.
Counterparts. This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which taken together constitute one instrument. 

IN WITNESS WHEREOF, Arcutis and Hengrui have caused this Amendment to be executed and delivered by their respective officers thereunto duly authorized, all as
of the Amendment Effective Date. 
  

							
	Arcutis, Inc.	 	Jiangsu Hengrui Medicine Co., Ltd.

							
				
	By:	 	   
	 	By:	 	   

				
	Name:	 	   
	 	Name:	 	   

				
	Title:	 	   
	 	Title:	 	   

				
	Date:	 	   
	 	Date:EX-10.12

 Exhibit 10.12 

CERTAIN IDENTIFIED INFORMATION HAS BEEN OMITTED FROM THIS DOCUMENT BECAUSE IT IS BOTH NOT MATERIAL AND WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED,
AND HAS BEEN MARKED WITH “[***]” TO INDICATE WHERE OMISSIONS HAVE BEEN MADE. 
 FORMULATION COLLABORATION AGREEMENT 

THIS FORMULATION COLLABORATION AGREEMENT (this
“Agreement”) is made as of June 28, 2019 (the “Effective Date”), by and between HAWKEYE THERAPEUTICS, INC., a Delaware corporation, with its
principal place of business located at 70 Willow Road, Menlo Park, CA 94025 (“Hawkeye”), and Arcutis, Inc., a Delaware corporation, having its principal place of business at 2945 Townsgate Road, Suite 110, Westlake Village, CA 91361
(“Arcutis”). Hawkeye and Arcutis are sometimes referred to herein individually as a “Party” and collectively as the “Parties.” 

RECITALS 

WHEREAS, Hawkeye is a biotechnology company established with the intent to research and develop
pharmaceutical products for [***] indications; 
 WHEREAS, Arcutis is a biopharmaceutical company
focused on developing and commercializing pharmaceutical products for dermatological indications, including formulations of roflumilast for dermatological uses; and 

WHEREAS, Hawkeye and Arcutis desire to collaborate on the research and development of one or more [***]
formulations of roflumilast, all under the terms and conditions set forth in this Agreement. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and premises
contained in this Agreement, the receipt and sufficiency of which are hereby expressly acknowledged, the Parties hereto agree as follows: 
 1. CERTAIN
DEFINITIONS. 
 1.1 “Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder. 
 1.2 “Arcutis Know-How” shall mean information, procedures,
techniques, and other Know-How Controlled by Arcutis as of the Effective Date or at any time during the Term, in each case that are necessary for the development of, or incorporated into, the [***]
Formulations. 
 1.3 “Arcutis Personnel” shall mean: (a) [***]; and (b) any other employees of Arcutis who are
engaged to conduct activities under the Collaboration by the Parties’ mutual written agreement. 
 1.4
“Collaboration” shall mean the activities set forth in the Collaboration Plan for the research and development of [***] Formulations. 

 1.5 “Collaboration IP” shall mean: (a) any and all Know-How (for clarity including formulations and products) arising from, or developed during, the Collaboration by or on behalf of Arcutis, either solely or jointly with others or with Hawkeye; and (b) any and
all intellectual property rights in and to the Know-How described in subsection (a), including any patent applications and patents claiming or describing such Know-How.

 1.6 “Collaboration Plan” has the meaning set forth in Section 2.1. 

1.7 “Common Stock” means the common stock, par value $0.0001, of Hawkeye. 

1.8 “Control” means, with respect to any information or other intellectual property right, or physical materials,
ownership or possession by a Party, or, where expressly provided, its affiliates, of the ability (without taking into account any rights granted by one Party to the other Party under the terms of this Agreement) to grant access, a license or a
sublicense to such information or other intellectual property right, or physical materials without violating the terms of any agreement or other arrangement with, or necessitating the consent of, any third party, or without giving rise to any
financial or other obligation to any third party, at such time that the Party would be first required under this Agreement to grant the other Party such access, license or sublicense. 

1.9 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder. 
 1.10 “IPO” means Hawkeye’s first underwritten public offering of its Common Stock under the Act.

 1.11 “Know-How” means all technical information, know-how, results, data, inventions, discoveries, trade secrets, specifications, instructions, processes, protocols, formulae, compositions of matter, products, formulations, assays, and other physical, biological,
or chemical materials, expertise, together with all documents, data, filings and instructions relating thereto. Know-How excludes patent applications and patents. 

1.12 “[***] Indications” shall mean [***] 

1.13 “[***] Formulations” shall mean products containing roflumilast that are formulated [***] which may include but
are not limited to [***]. 
 1.14 “Person” means any individual, corporation, partnership, trust, limited liability
company, association or other entity. 
 1.15 “Territory” means worldwide. 

2. COLLABORATION. 
 2.1
Collaboration Plan; Overview. As of the Effective Date, the Parties have agreed on a plan setting forth the scope and timeline of the Collaboration, attached to this Agreement as Exhibit A (the “Collaboration Plan”). The
Collaboration Plan may be modified only by the Parties’ mutual written consent, provided that neither Party shall unreasonably withhold its 

  
 2 

 
consent to any modification that is reasonably supported by scientific, commercial or intellectual property considerations. Subject to the terms and conditions of this Agreement, during the Term
the Parties shall carry out the activities set forth in the Collaboration Plan and collaborate to accomplish the objective of developing one or more [***] Formulations. 

2.2 Arcutis Personnel. Arcutis shall carry out the Collaboration through Arcutis Personnel, and shall ensure that such Arcutis
Personnel understand and agree to abide by the terms and conditions of this Agreement and to segregate the activities under the Collaboration from other activities carried out by such Arcutis Personnel on behalf of Arcutis. Arcutis shall not engage
any employee, consultant or other subcontractor other than the Arcutis Personnel in the Collaboration without the prior written consent of Hawkeye, which consent shall not be unreasonably withheld, conditioned or delayed. [***] 

2.3 Compliance with the Law. Each Party shall carry out the Collaboration in a competent and professional manner, in accordance
with the terms and conditions contained in this Agreement, and in compliance with all applicable laws, rules and regulations. 
 2.4
[***] 
 (a) [***] 

(b) [***] 
 [***] 

3. EQUITY AND PAYMENT. 
 3.1
Common Stock Purchase. As consideration for, and commensurate with, the execution and delivery of this Agreement, Hawkeye will grant Arcutis the right to purchase 995,000 fully-vested shares of Common Stock (equal to 19.9% of the issued and
outstanding shares of the Common Stock of Hawkeye, inclusive of the Common Stock issued and sold to Arcutis pursuant to this Section 3.1) at the fair market value as determined by the board of directors of Hawkeye on the date of grant (the
“Grant”). The Grant will be governed by the terms and conditions of Hawkeye’s standard form of common stock purchase agreement as agreed between the parties. 

3.2 Additional Common Stock. Except in the event that this Agreement is terminated pursuant to Section 7.2 due to a
material breach by Arcutis, if and when Hawkeye (a) issues and sells to investors in a bona fide equity financing (the “Series A Financing”) shares of its preferred stock (the “Series A Preferred Stock”), and
(b) receives total proceeds of at least $5,000,000 (excluding the conversion of convertible promissory notes or other convertible securities issued for capital raising purposes (e.g., Simple Agreements for Future Equity)), Hawkeye shall issue
to Arcutis a number of fully-paid and fully-vested shares of Common Stock (pursuant to the same form of common stock purchase agreement contemplated in Section 3.1 as applicable) determined by dividing (i) $2,000,000, by (ii) an amount
equal to the cash price paid per share for Series A Preferred Stock by the investors in the Series A Financing, rounded down to the nearest whole share. 

  
 3 

 3.3 Further Assurances. Arcutis will deliver to Hawkeye any documentation
reasonably required by Hawkeye, and consistent with documentation requested of other Hawkeye stockholders, including any purchase agreement, any investor rights agreement, any stockholder or voting agreement, right of first refusal and co-sale agreement and other ancillary agreements, with customary representations and warranties and transfer restrictions (including, without limitation, a lock-up agreement
in connection with an initial public offering). Hawkeye shall not be required to issue or deliver the capital stock subject to Section 3.2 until Arcutis has delivered to Hawkeye any such documentation. 

3.4 Reimbursement for Services. Hawkeye shall reimburse Arcutis for all expenses incurred by Arcutis during the Term in carrying
out activities in accordance with the Collaboration Plan, including support for the Arcutis Personnel at $[***], and reimbursement for costs of materials and equipment, pass-through expenses, and travel expenses to the extent requested and approved
in advance by Hawkeye. 
 3.5 Invoices; Payment. Unless otherwise agreed by the Parties in writing, Arcutis shall provide to
Hawkeye invoices on a monthly basis within ten (10) days after the end of each calendar month, each such invoice summarizing the services performed during that period of time for research and development of [***] Formulations under this
Agreement and an accounting of costs and expenses incurred and accrued to date for the reimbursable expenses therefor. Hawkeye shall pay the full undisputed portion of each invoice within thirty (30) days of receipt thereof, and shall
concurrently provide Arcutis with a written statement and supporting documentation regarding the unpaid amounts disputed in good faith. Hawkeye shall not be obligated to pay any amounts that exceed the budget set forth in the Collaboration Plan,
unless such excess amounts have been approved in writing by Hawkeye in advance. 
 3.6 Records Audit. Hawkeye, through an
independent accounting firm appointed by Hawkeye and reasonably acceptable to Arcutis, subject to written confidentiality obligations at least as protective as those contained herein (such accounting firm, the “Auditor”), at
Hawkeye’s sole expense, shall have the right to audit Arcutis’s financial records relating to payments received under this Agreement for the sole purpose of verifying the accuracy of such payments during the Term and for three
(3) years thereafter; provided, that any such audit(s) shall be conducted upon reasonable advance written notice, in any event no less than thirty (30) days prior written notice, to Arcutis and during Arcutis’s normal business
hours, in a manner that does not interfere with Arcutis’s business activities. Hawkeye agrees to, and to cause the Auditor to, hold in confidence all information received and all information learned in the course of any audit or inspection,
except to the extent that such information is not confidential and/or it is necessary to disclose it to enforce its rights under this Agreement or if disclosure is required by applicable law. For the avoidance of doubt, the information provided by
Arcutis pursuant to this Section 3.6 shall be deemed to be Confidential Information of Arcutis hereunder. 
 4. OWNERSHIP OF COLLABORATION IP.

 4.1 Collaboration IP. [***] 

4.2 Assignment; Further Action. [***] 

  
 4 

 4.3 Patent Prosecution. [***] 

4.4 Records of Collaboration IP. [***] 

4.5 License Grants. 

(a) Subject to the terms and conditions of this Agreement, Arcutis hereby grants to Hawkeye a perpetual, irrevocable, fully-paid,
royalty-free, non-exclusive license, with the right to grant sublicenses, under the Arcutis Know-How to research, develop, manufacture, have manufactured, use, sell,
offer for sale, import, export or otherwise commercialize products [***] 
 (b) Subject to the terms and conditions of this
Agreement, Hawkeye hereby grants to Arcutis a perpetual, irrevocable, fully-paid, royalty-free, exclusive (other than the right to research, manufacture and have manufactured, which shall be non-exclusive)
license, with the right to grant sublicenses [***] Hawkeye shall retain the sole and exclusive right (as to Arcutis) to practice and exploit the Collaboration IP for any and all other purposes, including to research, develop, manufacture, have
manufactured, use, sell, offer for sale, import, export or otherwise commercialize [***] 
 4.6 Other Intellectual Property.
The licenses granted under Section 4.5 do not include the right for Hawkeye to practice any patent applications, patents or other Know-How other than the Arcutis
Know-How, whether owned or in-licensed by Arcutis or a third party (collectively, the “Excluded IP”) unless and until the Parties otherwise agree in a
separate license agreement. Prior to the use of any Excluded IP in the Collaboration or incorporating any Excluded IP in an [***] Formulation, Arcutis shall notify Hawkeye and identify such Excluded IP and obtain Hawkeye’s written consent to do
so. 
 4.7 No Implied License. Neither Hawkeye nor Arcutis transfers to the other by operation of this Agreement any patent
right, copyright right, trademark right or other proprietary right of any Party, except as expressly set forth in this Agreement. 
 5. CONFIDENTIALITY.

 5.1 Confidentiality Obligation. During the term of this Agreement and for a period of five (5) years thereafter,
each Party (the “Receiving Party”) will maintain all Confidential Information (as defined below) of the other Party (the “Disclosing Party”) as confidential and will not disclose any such Confidential Information or
use any such Confidential Information for any purpose, except (a) as expressly authorized by this Agreement, (b) as permitted by Section 5.3, for the purpose of exercising its rights or fulfilling its obligations under this Agreement,
or (d) to its employees, agents, consultants, subcontractors approved by the Disclosing Party and other representatives who require access to such information to accomplish the purposes of this Agreement, so long as such persons are under
obligations regarding the confidentiality of such Confidential Information and the ownership of Collaboration IP that are consistent with, and no less protective to the Disclosing Party than, the terms of this Agreement. The Receiving Party may use
the Disclosing Party’s Confidential Information only to the extent required to accomplish the purposes of this Agreement. The Receiving Party will use at least the same standard of care as it uses to protect its own confidential information to
ensure that its 

  
 5 

 
employees, agents, consultants, subcontractors approved by the Disclosing Party and other representatives do not disclose or make any unauthorized use of the Disclosing’ Party’s
Confidential Information. The Receiving Party will promptly notify the Disclosing Party upon discovery of any unauthorized use or disclosure of the Disclosing Party’s Confidential Information. 

5.2 Definition. For the purpose of this Agreement, with respect to each Party, “Confidential Information” means
all information provided by or on behalf of the Disclosing Party to the Receiving Party in connection with this Agreement, whether in oral, written, graphic or electronic form. Notwithstanding the foregoing, a Disclosing Party’s Confidential
Information will not include any information which a Receiving Party can demonstrate by competent evidence: (a) is now, or hereafter becomes, through no act or failure to act on the part of the Receiving Party or any of its employees, agents,
consultants or subcontractors, generally known or available; (b) is known by the Receiving Party at the time of receiving such information or is independently developed by the Receiving Party without access to or use of the Disclosing
Party’s Confidential Information, as evidenced by the Receiving Party’s pre-existing written records; or (c) is hereafter furnished to the Receiving Party by a third party, as a matter of right
and without restriction on disclosure. Collaboration IP shall constitute Hawkeye’s Confidential Information under this Agreement. 

5.3 Authorized Disclosure. Notwithstanding Section 5.1, the Receiving Party may disclose the Disclosing Party’s
Confidential Information, without violating its obligations under this Agreement, to the extent the disclosure is required by applicable law or by a valid order of a court or other governmental body having jurisdiction, provided that the Receiving
Party gives reasonable prior written notice to the Disclosing Party of such required disclosure and, at the Disclosing Party’s request and expense, cooperates with the Disclosing Party’s efforts to obtain a protective order preventing or
limiting the disclosure, requiring that the Disclosing Party’s Confidential Information so disclosed be used only for the purposes for which the law or order requires, and/or to obtain other confidential treatment of such Confidential
Information. 
 5.4 Third Party Confidential Information. Neither Party shall disclose to the other Party any confidential or
proprietary information that belongs to any third party. 
 6. REPRESENTATIONS AND WARRANTIES. 

6.1 Mutual Representations and Warranties. Each Party represents and warrants that (a) it has full power and authority to
enter into this Agreement, (b) this Agreement has been duly authorized, and (c) this Agreement is binding upon it. 
 6.2
Arcutis Representations and Warranties. Arcutis represents and warrants that: (a) the terms of this Agreement are not inconsistent with its other contractual arrangements; and (b) Arcutis is not constrained by any existing agreement
in fulfilling its obligations under this Agreement, including the assignment of rights and grant of the licenses under Article 4. 

6.3 Disclaimer of Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR
WARRANTY TO THE OTHER PARTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 

  
 6 

 6.4 Limitation of Liability. EXCEPT FOR BREACH OF ARTICLE 5, IN NO EVENT SHALL
EITHER PARTY BE LIABLE TO THE OTHER FOR ANY LOST PROFITS, LOST SAVINGS, OR ANY OTHER INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT, OTHER THAN DAMAGES ARISING OUT OF FRAUD OR WILLFUL MISCONDUCT; provided, however, that this Section 6.4 shall not be construed to limit either Party’s indemnification obligations under Article 8. 

7. TERM AND TERMINATION. 
 7.1
Term. The term of this Agreement (the “Term”) shall commence on the Effective Date and shall continue for a period of six (6) months after the Effective Date, unless extended by a written mutual agreement of the Parties.

 7.2 Termination of Agreement for Material Breach. A Party may terminate this Agreement for material breach of this
Agreement by the other Party upon thirty (30) days’ written notice specifying the nature of the breach, if such breach has not been cured within such thirty (30)-day period. 

7.3 Effects of Expiration or Termination. 

(a) Costs Incurred. In the event of expiration or termination of this Agreement, Hawkeye shall pay to Arcutis all sums owing to
Arcutis for Collaboration completed up to the expiration date or effective termination date and all non-cancelable obligations reasonably incurred before such date. Subject to the preceding sentence, Arcutis
shall refund to Hawkeye any prepaid amounts not earned by Arcutis prior to the expiration date or effective date of such termination. 

(b) Final Report of Collaboration IP. Arcutis shall provide Hawkeye with a final report on the Collaboration IP within thirty
(30) days after the expiration date or the effective date of termination, as the case may be. 
 (c) Survival. Expiration
or termination of this Agreement will not relieve the Parties of any obligation accruing prior to such expiration or termination. Articles 1, 5, 8 and 9 and Sections 2.4, 2.5, 3.2 (other than termination of this Agreement under Section 7.2 for
Arcutis’ material breach), 3.6, 4.1, 4.2, 4.3, 4.4, 4.5, 6.3, 6.4, 7.2 and this 7.3(c) shall survive expiration or termination of this Agreement. 

8. INDEMNIFICATION. 
 8.1
Hawkeye Indemnification. Hawkeye hereby agrees to save, defend, indemnify and hold harmless Arcutis and its officers, directors, employees, consultants and agents (“Arcutis Indemnitees”) from and against any and all losses,
damages, liabilities, expenses and costs, including reasonable legal expense and attorneys’ fees (“Losses”), to which any such 

  
 7 

 
Arcutis Indemnitee may become subject as a result of any claim, demand, action or other proceeding by any third party to the extent such Losses arise out of the material breach by Hawkeye of any
representation, warranty, covenant or agreement made by it under this Agreement, the practice or exploitation of the Arcutis Know-How under the license granted to it under this Agreement, or the gross
negligence or willful misconduct of any Hawkeye Indemnitee; except, in each case, to the extent such Losses result from the material breach by Arcutis of any representation, warranty, covenant or agreement made by it under this Agreement or the
negligence or willful misconduct of any Arcutis Indemnitee. 
 8.2 Arcutis Indemnification. Arcutis hereby agrees to save,
defend, indemnify and hold harmless Hawkeye and its officers, directors, employees, consultants, contractors and agents (“Hawkeye Indemnitees”) from and against any and all Losses to which any such Hawkeye Indemnitee may become subject as
a result of any claim, demand, action or other proceeding by any third party to the extent such Losses arise out of the material breach by Arcutis of any representation, warranty, covenant or agreement made by it under this Agreement, the practice
or exploitation of the Collaboration IP under the license granted to it under this Agreement or the gross negligence or willful misconduct of any Arcutis Indemnitee; except, in each case, to the extent such Losses result from the material breach by
Hawkeye of any representation, warranty, covenant or agreement made by it under this Agreement or the gross negligence or willful misconduct of any Hawkeye Indemnitee. 

8.3 General Conditions of Indemnification. A Party’s agreement to indemnify, defend and hold the other Party (the
“Indemnified Party”) and its related entities harmless is conditioned upon the Indemnified Party: (a) providing written notice to the first Party (the “Indemnifying Party”) of any claim, demand or action
arising out of the indemnified activities within thirty (30) days after the Indemnified Party has knowledge of such claim, demand or action; (b) permitting the Indemnifying Party to assume full responsibility and authority to investigate,
prepare for and defend against any such claim or demand; (c) assisting the Indemnifying Party, at the Indemnifying Party’s reasonable expense, in the investigation of, preparation for and defense of any such claim or demand; and
(d) not compromising or settling such claim or demand without the Indemnifying Party’s written consent. 
 9. MISCELLANEOUS. 

9.1 Independent Contractor Relationship. Nothing contained in this Agreement shall be deemed to constitute a partnership, joint
venture, or legal entity of any type between Arcutis and Hawkeye, or to constitute one as the agent of the other. Moreover, each Party agrees not to construe this Agreement, or any of the transactions contemplated hereby, as a partnership for any
tax purposes. Each Party shall act solely as an independent contractor, and nothing in this Agreement shall be construed to give any Party the power or authority to act for, bind, or commit the other. 

9.2 Minimum Financing Amount. Commensurate with this Agreement, Hawkeye shall issue and sell one or more convertible promissory
notes having an aggregate principal amount of at least $500,000. 

  
 8 

 9.3 Legal Review. Notwithstanding anything contained in this Agreement to the
contrary, each of the Parties will be responsible for their own legal fees and associated costs and expenses associated with the matters contemplated in these terms. 

9.4 Use of Names. Neither Party shall use the other Party’s name or the names of the other Party’s employees in any
advertising or sales promotional material or in any publication without prior written permission of the other Party. 
 9.5 Force
Majeure. In the event of a delay caused by inclement weather, fire, flood, act of war, act of terrorism, act of God, act of governmental officials or agencies, or any like cause beyond the control of the Parties, the Party or Parties so affected
shall be excused from performance hereunder for the period of time attributable to such delay, which may extend beyond the time lost due to one or more of the causes mentioned above. In the event of any such delay, the Parties may, in their sole
discretion, revise this Agreement by changing the schedule of payments, the performance period, and other provisions, as appropriate, by mutual written agreement. 

9.6 Applicable Law; Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of
California, without regard to its conflicts of laws principles. Each Party: (a) irrevocably and unconditionally consents and submits to the jurisdiction of the state and federal courts located in San Francisco, California for purposes of any
action, suit or proceeding arising out of or relating to this Agreement; (b) agrees that service of any process, summons, notice or document by U.S. registered mail to the address given on the signature page of this Agreement shall be effective
service of process for any such action, suit or proceeding brought against such Party; (c) irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of or relating to this
Agreement in any state or federal court located in San Francisco, California; and (d) irrevocably and unconditionally waives the right to plead or claim, and irrevocably and unconditionally agrees not to plead or claim, that any action, suit or
proceeding arising out of or relating to this Agreement that is brought in any state or federal court located in San Francisco, California been brought in an inconvenient forum. 

9.7 Injunctive Relief. Each Party hereby acknowledges and agrees that in the event of such Party’s breach of any provision
of this Agreement relating to Confidential Information and/or intellectual property (including, without limitation, Article 4 and Article 5), the other Party would suffer an irreparable injury such that no remedy at law would adequately protect or
appropriately compensate such other Party for such injury. Accordingly, each Party agrees that the other Party shall have the right to enforce this Agreement and any of such provisions by injunction, specific performance or other equitable relief,
without bond and without prejudice to any other rights and remedies that the other Party may have for a breach of this Agreement. 

9.8 Entire Agreement; Amendment. This Agreement constitutes the final, complete and exclusive agreement of the Parties with
respect to the subject matter hereof and supersedes all prior understandings and agreements relating to its subject matter. This Agreement may not be changed, modified, amended or supplemented except by a written instrument signed by an authorized
representative of each of Hawkeye and Arcutis. 

  
 9 

 9.9 Successors and Assigns. Neither Party may assign this Agreement without
the prior written consent of the other Party; provided, however, that each Party may assign this Agreement without the other Party’s consent to its affiliates or in connection with the transfer or sale of all or substantially all
of its stock, assets or business to which this Agreement relates, whether by merger, sale of stock, sale of assets or otherwise. Any attempted assignment of this Agreement not in compliance with this Section 9.9 shall be null and void. No
assignment shall relieve either Party of the performance of any accrued obligation that such Party may then have under this Agreement. This Agreement shall inure to the benefit of and be binding upon each Party signatory hereto, its successors and
permitted assigns, subsidiaries and affiliates. 
 9.10 Severability. If any provision of this Agreement is found by a court
of competent jurisdiction to be unenforceable, then such provision will be construed, to the extent feasible, so as to render the provision enforceable, and if no feasible interpretation would save such provision, it will be severed from the
remainder of this Agreement. The remainder of this Agreement will remain in full force and effect, unless the severed provision is essential and material to the rights or benefits received by either Party. In such event, the Parties will negotiate,
in good faith, and substitute a valid and enforceable provision or agreement that most nearly implements the Parties’ intent in entering into this Agreement. 

9.11 Non-Waiver. No failure or delay of one of the Parties to insist upon strict
performance of any of its rights or powers under this Agreement shall operate as a waiver thereof, nor shall any other single or partial exercise of such right or power preclude any other further exercise of any rights or remedies provided by law.

 9.12 Notices. Any notice to be given under this Agreement must be in writing and delivered either in person, by any method
of mail (postage prepaid) requiring return receipt, or by overnight courier, to the Party to be notified at its address(es) given below, or at any address such Party has previously designated by prior written notice to the other. Notice shall be
deemed sufficiently given for all purposes upon the earliest of: (a) the date of actual receipt; (b) if mailed, three (3) days after the date of postmark; or (c) if delivered by express courier, the next business day the courier
regularly makes deliveries to the addressee’s location. 
  

			
	If to Hawkeye:	  	 c/o Frazier Healthcare Partners 70 Willow Rd.

Menlo Park, CA 94025
 Attention: Dan Estes

		
	If to Arcutis:	  	 Arcutis, Inc.
 2945 Townsgate Road, Suite 110
Westlake
 Village, CA, 91361
 Attention:
President

 9.13 Interpretation. The headings of clauses contained in this Agreement preceding the text of
the sections, subsections and paragraphs hereof are inserted solely for convenience and ease of reference only and shall not constitute any part of this Agreement, or have any effect on its interpretation or construction. All references in this
Agreement to the singular shall include 

  
 10 

 
the plural where applicable. Unless otherwise specified, references in this Agreement to any section shall include all subsections and paragraphs in such Section and references in this Agreement
to any subsection shall include all paragraphs in such subsection. All references to days in this Agreement shall mean calendar days, unless otherwise specified. Ambiguities and uncertainties in this Agreement, if any, shall not be interpreted
against either Party, irrespective of which Party may be deemed to have caused the ambiguity or uncertainty to exist. This Agreement has been prepared in the English language, and the English language shall control its interpretation. In addition,
all notices required or permitted to be given hereunder, and all written, electronic, oral or other communications between the Parties regarding this Agreement, shall be in the English language. 

9.14 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Agreement may be executed by facsimile or PDF signatures, which signatures shall have the same force and effect as original signatures. 

[signature page follows] 

  
 11 

 IN WITNESS WHEREOF, the parties have by duly authorized persons executed this
Formulation Collaboration Agreement as of the Effective Date. 
  

									
	HAWKEYE THERAPEUTICS, INC.	 		 	ARCUTIS, INC.
					
	By:	 	/s/Daniel J. Estes	 		 	By:	 	/s/ Frank Watanabe
	Name:	 	Daniel J. Estes	 		 	Name:	 	Frank Watanabe
	Title:	 	Chief Executive Officer	 		 	Title:	 	President
	Date:	 	June 28, 2019	 		 	Date:	 	June 28, 2019

  
 12 

 EXHIBIT A – COLLABORATION PLAN 

1. [***] 

  
 13

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