Document:

EX-10.5

 Exhibit 10.5 

PRINCIPIA BIOPHARMA, INC. 

STOCK OPTION GRANT NOTICE 

(2018 EQUITY INCENTIVE PLAN) 

Principia Biopharma, Inc. (the “Company”), pursuant to its 2018 Equity Incentive Plan (the “Plan”), hereby
grants to Optionholder an option to purchase the number of shares of the Company’s Common Stock set forth below. This option is subject to all of the terms and conditions as set forth in this stock option grant notice (this “Stock
Option Grant Notice”), in the Option Agreement, the Plan and the Notice of Exercise, all of which are attached hereto and incorporated herein in their entirety. Capitalized terms not explicitly defined herein but defined in the Plan or
the Option Agreement will have the same definitions as in the Plan or the Option Agreement. If there is any conflict between the terms herein and the Plan, the terms of the Plan will control. 

 

			
	 Optionholder:
	  	«Optionee»
		  	  

	 Date of Grant:
	  	«GrantDate»
		  	  

	 Vesting Commencement Date:
	  	«VestingCommenceDate»
		  	  

	 Number of Shares Subject to Option:
	  	«NoofShares»
		  	  

	 Exercise Price (Per Share):
	  	«ExercisePrice»
		  	  

	 Total Exercise Price:
	  	«TotalExercisePrice»
		  	  

	 Expiration Date:
	  	«ExpirDate»
		  	  

 Type of Grant:    ☐  Incentive Stock Option1        ☐  Nonstatutory Stock Option 
 Exercise
Schedule:    Same as Vesting Schedule 
 Vesting Schedule:    [VESTING] 

Payment:    By one or a combination of the following items (described in the Option Agreement): 

 

	 	☐	 By cash, check, bank draft, wire transfer or money order payable to the Company 

	 	☐	 Pursuant to a Regulation T Program if the shares are publicly traded 

	 	☐	 By delivery of already-owned shares if the shares are publicly traded 

	 	☐	 If and only to the extent this option is a Nonstatutory Stock Option, and subject to the Company’s consent
at the time of exercise, by a “net exercise” arrangement 

 Additional Terms/Acknowledgements: Optionholder acknowledges
receipt of, and understands and agrees to, this Stock Option Grant Notice, the Option Agreement and the Plan. Optionholder acknowledges and agrees that this Stock Option Grant Notice and the Option Agreement may not be modified, amended or revised
except as provided in the Plan. Optionholder further acknowledges that as of the Date of Grant, this Stock Option Grant Notice, the Option Agreement, and the Plan set forth the entire understanding between Optionholder and the Company
regarding this option award and supersede all prior oral and written agreements, promises and/or representations on that subject with the exception of (i) options and other 

 

	1 	 If this is an Incentive Stock Option, it (plus other outstanding Incentive Stock Options) cannot be first
exercisable for more than $100,000 in value (measured by exercise price) in any calendar year. Any excess over $100,000 is a Nonstatutory Stock Option. 

 
equity awards previously granted and delivered to Optionholder, (ii) any compensation recovery policy that is adopted by the Company or is otherwise required by applicable law and
(iii) any written employment or severance arrangement that would provide for vesting acceleration of this option upon the terms and conditions set forth therein. 

By accepting this option, Optionholder consents to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company. 
  

									
	PRINCIPIA BIOPHARMA, INC.	 		 	OPTIONHOLDER:
				
	By:	 	 	 		 	 
		 	Signature	 		 		 	Signature

									
					
	Title:	 	 	 		 	Date:	 	 
					
	Date:	 	 	 		 		 	

 ATTACHMENTS: Option Agreement, 2018 Equity Incentive Plan, Notice of Exercise 

  
 2. 

 ATTACHMENT I 

OPTION AGREEMENT 

(INCENTIVE STOCK OPTION OR NONSTATUTORY STOCK
OPTION) 
 Pursuant to your Stock Option Grant Notice (“Stock Option Grant Notice”) and this
Option Agreement (this “Option Agreement”), Principia Biopharma, Inc. (the “Company”) has granted you an option under its 2018 Equity Incentive Plan (the “Plan”) to purchase the
number of shares of the Company’s Common Stock indicated in your Stock Option Grant Notice at the exercise price indicated in your Stock Option Grant Notice. The option is granted to you effective as of the date of grant set forth in the Stock
Option Grant Notice (the “Date of Grant”). If there is any conflict between the terms in this Option Agreement and the Plan, the terms of the Plan will control. Capitalized terms not explicitly defined in this Option
Agreement or in the Stock Option Grant Notice but defined in the Plan will have the same definitions as in the Plan. 
 The details of your
option, in addition to those set forth in the Stock Option Grant Notice and the Plan, are as follows: 

1.    VESTING. Your option will vest as provided in your Stock Option Grant Notice. Vesting
will cease upon the termination of your Continuous Service. 
 2.    NUMBER OF
SHARES AND EXERCISE PRICE. The number of shares of Common Stock subject to your option and your exercise price per share in your Stock Option Grant Notice will be adjusted for
Capitalization Adjustments. 
 3.    EXERCISE RESTRICTION FOR
NON-EXEMPT EMPLOYEES. If you are an Employee eligible for overtime compensation under the Fair Labor Standards Act of 1938, as amended (that is, a “Non-Exempt Employee”), and except as otherwise provided in the Plan, you may not exercise your option until you have completed at least six (6) months of Continuous Service measured from the Date
of Grant, even if you have already been an employee for more than six (6) months. Consistent with the provisions of the Worker Economic Opportunity Act, you may exercise your option as to any vested portion prior to such six (6) month
anniversary in the case of (i) your death or disability, (ii) a Corporate Transaction in which your option is not assumed, continued or substituted, (iii) a Change in Control or (iv) your termination of Continuous Service on your
“retirement” (as defined in the Company’s benefit plans). 
 4.    INCENTIVE
STOCK OPTION LIMITATION. If your option is an Incentive Stock Option, then, to the extent that the aggregate Fair Market Value (determined at the Date of Grant) of the shares of Common Stock with
respect to which your option plus all other Incentive Stock Options you hold are exercisable for the first time by you during any calendar year (under all plans of the Company and its Affiliates) exceeds one hundred thousand dollars ($100,000), your
option(s) or portions thereof that exceed such limit (according to the order in which they were granted) will be treated as Nonstatutory Stock Options. 

5.    METHOD OF PAYMENT. You must pay the full amount of the
exercise price for the shares you wish to exercise. You may pay the exercise price in cash or by check, bank draft, wire transfer or money order payable to the Company or in any other manner permitted by your Stock Option Grant Notice, which
may include one or more of the following: 
 (a)    Provided that at the time of exercise the Common Stock is
publicly traded, pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of
irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds. This manner of payment is also known as a “broker-assisted exercise”, “same day sale”, or “sell to cover”. 

 (b)    Provided that at the time of exercise the Common Stock is
publicly traded, by delivery to the Company (either by actual delivery or attestation) of already-owned shares of Common Stock that are owned free and clear of any liens, claims, encumbrances or security interests, and that are valued at Fair Market
Value on the date of exercise. “Delivery” for these purposes, in the sole discretion of the Company at the time you exercise your option, will include delivery to the Company of your attestation of ownership of such shares of Common Stock
in a form approved by the Company. You may not exercise your option by delivery to the Company of Common Stock if doing so would violate the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock. 

6.    WHOLE SHARES. You may exercise your option only for whole shares of
Common Stock. 
 7.    SECURITIES LAW COMPLIANCE. In no event
may you exercise your option unless the shares of Common Stock issuable upon exercise are then registered under the Securities Act or, if not registered, the Company has determined that your exercise and the issuance of the shares would be exempt
from the registration requirements of the Securities Act. The exercise of your option also must comply with all other applicable laws and regulations governing your option, and you may not exercise your option if the Company determines that such
exercise would not be in material compliance with such laws and regulations (including any restrictions on exercise required for compliance with Treas. Reg. 1.401(k)-1(d)(3), if applicable). 

8.    TERM. You may not exercise your option before the Date of Grant or after the expiration
of the option’s term. The term of your option expires, subject to the provisions of Section 5(h) of the Plan, upon the earliest of the following: 

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

(b)    three (3) months after the termination of your Continuous Service for any reason other than Cause, your
Disability, or your death (except as otherwise provided in Section 8(d) below); provided, however, that if during any part of such three-month period your option is not exercisable solely because of the condition set forth
in Section 7 above relating to “Securities Law Compliance,” your option will not expire until the earlier of the Expiration Date or until it has been exercisable for an aggregate period of three (3) months after the termination
of your Continuous Service; provided further, that if (i) you are a Non-Exempt Employee, (ii) your Continuous Service terminates within six (6) months after the Date of Grant, and
(iii) you have vested in a portion of your option at the time of your termination of Continuous Service, your option will not expire until the earlier of (x) the later of (A) the date that is seven (7) months after the Date of
Grant, and (B) the date that is three (3) months after the termination of your Continuous Service, and (y) the Expiration Date; 

(c)    twelve (12) months after the termination of your Continuous Service due to your Disability (except as
otherwise provided in Section 8(d)) below; 
 (d)    eighteen (18) months after your death if you die
either during your Continuous Service or within three (3) months after your Continuous Service terminates for any reason other than Cause; 

(e)    the Expiration Date indicated in your Stock Option Grant Notice; and 

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

  
 2. 

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

(a)    You may exercise the vested portion of your option during its term by (i) delivering a Notice of
Exercise (in a form designated by the Company) or completing such other documents and/or procedures designated by the Company for exercise and (ii) paying the exercise price and any applicable withholding taxes to the Company’s Secretary,
stock plan administrator, or such other person as the Company may designate, together with such additional documents as the Company may then require. 

(b)    By exercising your option you agree that, as a condition to any exercise of your option, the Company may
require you to enter into an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason of (i) the exercise of your option, or (ii) the disposition of shares of Common
Stock acquired upon such exercise. 
 (c)    If your option is an Incentive Stock Option, by exercising your
option you agree that you will notify the Company in writing within fifteen (15) days after the date of any disposition of any of the shares of the Common Stock issued upon exercise of your option that occurs within two (2) years after the
Date of Grant or within one (1) year after such shares of Common Stock are transferred upon exercise of your option. 

(d)    By exercising your option you agree that you will not sell, dispose of, transfer, make any short sale of,
grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale with respect to any shares of Common Stock or other securities of the Company held by you, for a period of one hundred
eighty (180) days following the effective date of a registration statement of the Company filed under the Securities Act or such longer period as the underwriters or the Company will request to facilitate compliance with FINRA Rule 2241 or
any successor or similar rules or regulation (the “Lock-Up Period”); provided, however, that nothing contained in this Section 9(d) will prevent the exercise of a
repurchase option, if any, in favor of the Company during the Lock-Up Period. You further agree to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriters
that are consistent with the foregoing or that are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to your shares of Common Stock until the end of
such period. You also agree that any transferee of any shares of Common Stock (or other securities) of the Company held by you will be bound by this Section 9(d). The underwriters of the Company’s stock are intended third party
beneficiaries of this Section 9(d) and will have the right, power and authority to enforce the provisions hereof as though they were a party hereto. 

  
 3. 

 10.    TRANSFERABILITY. Except as otherwise
provided in this Section 10, your option is not transferable, except by will or by the laws of descent and distribution, and is exercisable during your life only by you. 

(a)    Certain Trusts. Upon receiving written permission from the Board or its duly authorized designee, you
may transfer your option to a trust if you are considered to be the sole beneficial owner (determined under Section 671 of the Code and applicable state law) while the option is held in the trust. You and the trustee must enter into transfer
and other agreements required by the Company. 
 (b)    Domestic Relations Orders. Upon receiving written
permission from the Board or its duly authorized designee, and provided that you and the designated transferee enter into transfer and other agreements required by the Company, you may transfer your option pursuant to the terms of a domestic
relations order, official marital settlement agreement or other divorce or separation instrument as permitted by Treasury Regulation 1.421-1(b)(2) that contains the information required by the Company to
effectuate the transfer. You are encouraged to discuss the proposed terms of any division of this option with the Company prior to finalizing the domestic relations order or marital settlement agreement to help ensure the required information is
contained within the domestic relations order or marital settlement agreement. If this option is an Incentive Stock Option, this option may be deemed to be a Nonstatutory Stock Option as a result of such transfer. 

(c)    Beneficiary Designation. Upon receiving written permission from the Board or its duly authorized
designee, you may, by delivering written notice to the Company, in a form approved by the Company and any broker designated by the Company to handle option exercises, designate a third party who, on your death, will thereafter be entitled to
exercise this option and receive the Common Stock or other consideration resulting from such exercise. In the absence of such a designation, your executor or administrator of your estate will be entitled to exercise this option and receive, on
behalf of your estate, the Common Stock or other consideration resulting from such exercise. 

11.    RIGHT OF REPURCHASE. The Company will have the right to
repurchase all of the shares of Common Stock you acquire pursuant to the exercise of your option upon termination of your Continuous Service for Cause. Such repurchase will be at the exercise price you paid to acquire the shares and will be effected
pursuant to such other terms and conditions, and at such time, as the Company will determine. 

12.    OPTION NOT A SERVICE
CONTRACT. Your option is not an employment or service contract, and nothing in your option will be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate, or of
the Company or an Affiliate to continue your employment. In addition, nothing in your option will obligate the Company or an Affiliate, their respective stockholders, boards of directors, officers or employees to continue any relationship that you
might have as a Director or Consultant for the Company or an Affiliate. 
 13.    WITHHOLDING
OBLIGATIONS. 
 (a)    At the time you exercise your option, in whole or in part, and at any
time thereafter as requested by the Company, you hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for (including by means of a “same day sale” pursuant to a
program developed under Regulation T as promulgated by the Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or an Affiliate,
if any, which arise in connection with the exercise of your option. 
 (b)    If this option is a Nonstatutory
Stock Option, then upon your request and subject to approval by the Company, and compliance with any applicable legal conditions or restrictions, the Company may withhold from fully vested shares of Common Stock otherwise issuable to you upon the
exercise of your option a number of whole shares of Common Stock having a Fair Market Value, determined by the 

  
 4. 

 
Company as of the date of exercise, not in excess of the minimum amount of tax required to be withheld by law (or such other greater or lesser amount that avoids classification of your option as
a liability for financial accounting purposes). Any adverse consequences to you arising in connection with such share withholding procedure will be your sole responsibility. 

(c)    You may not exercise your option unless the tax withholding obligations of the Company and/or any Affiliate
are satisfied. Accordingly, you may not be able to exercise your option when desired even though your option is vested, and the Company will have no obligation to issue a certificate for such shares of Common Stock or release such shares of Common
Stock from any escrow provided for herein, if applicable, unless such obligations are satisfied. 

14.    TAX CONSEQUENCES. You hereby agree that the Company does
not have a duty to design or administer the Plan or its other compensation programs in a manner that minimizes your tax liabilities. You will not make any claim against the Company, or any of its Officers, Directors, Employees or Affiliates related
to tax liabilities arising from your option or your other compensation. In particular, you acknowledge that this option is exempt from Section 409A of the Code only if the exercise price per share specified in the Stock Option Grant Notice is
at least equal to the “fair market value” per share of the Common Stock on the Date of Grant and there is no other impermissible deferral of compensation associated with the option. 

15.    NOTICES. Any notices provided for in your option or the Plan will be given in writing
(including electronically) and will be deemed effectively given upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the
last address you provided to the Company. The Company may, in its sole discretion, decide to deliver any documents related to participation in the Plan and this option by electronic means or to request your consent to participate in the Plan by
electronic means. By accepting this option, you consent to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained by the
Company or another third party designated by the Company. 
 16.    GOVERNING
PLAN DOCUMENT. Your option is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your option, and is further subject to all interpretations, amendments, rules
and regulations, which may from time to time be promulgated and adopted pursuant to the Plan. If there is any conflict between the provisions of your option and those of the Plan, the provisions of the Plan will control. In addition, your option
(and any compensation paid or shares issued under your option) is subject to recoupment in accordance with The Dodd–Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder, any clawback policy adopted by
the Company and any compensation recovery policy otherwise required by applicable law. No recovery of compensation under such a clawback policy will be an event giving rise to a right to voluntarily terminate employment upon a resignation for
“good reason,” or for a “constructive termination” or any similar term under any plan of or agreement with the Company. 

17.    OTHER DOCUMENTS. You hereby acknowledge receipt of and
the right to receive a document providing the information required by Rule 428(b)(1) promulgated under the Securities Act, which includes the Plan prospectus. In addition, you acknowledge receipt of the Company’s policy permitting certain
individuals to sell shares only during certain “window” periods and the Company’s insider trading policy, in effect from time to time. 

18.    EFFECT ON OTHER EMPLOYEE
BENEFIT PLANS. The value of this option will not be included as compensation, earnings, salaries, or other similar terms used when calculating your benefits under any employee benefit plan sponsored
by the Company or any Affiliate, except as such plan otherwise expressly provides. The Company expressly reserves its rights to amend, modify, or terminate any of the Company’s or any Affiliate’s employee benefit plans. 

  
 5. 

 19.    VOTING
RIGHTS. You will not have voting or any other rights as a shareholder of the Company with respect to the shares to be issued pursuant to this option until such shares are issued to you. Upon such issuance, you will
obtain full voting and other rights as a shareholder of the Company. Nothing contained in this option, and no action taken pursuant to its provisions, will create or be construed to create a trust of any kind or a fiduciary relationship between you
and the Company or any other person. 
 20.    SEVERABILITY. If all or any
part of this Option Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity will not invalidate any portion of this Option Agreement or the Plan not declared to be unlawful
or invalid. Any section of this Option Agreement (or part of such a section) so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such section or part of a section to the fullest
extent possible while remaining lawful and valid. 
 21.    NO ADVICE
REGARDING GRANT. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan, or your acquisition or sale of
the underlying shares of stock. You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan. 

22.    ELECTRONIC DELIVERY AND
ACCEPTANCE. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. You hereby consent to receive such documents by
electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company and that such online or
electronic participation shall have the same force and effect as documentation executed in written form. 

23.    MISCELLANEOUS. 

(a)    The rights and obligations of the Company under your option will be transferable to any one or more persons
or entities, and all covenants and agreements hereunder will inure to the benefit of, and be enforceable by the Company’s successors and assigns. 

(b)    You agree upon request to execute any further documents or instruments necessary or desirable in the sole
determination of the Company to carry out the purposes or intent of your option. 
 (c)    You acknowledge and
agree that you have reviewed your option in its entirety, have had an opportunity to obtain the advice of counsel prior to executing and accepting your option, and fully understand all provisions of your option. 

(d)    This Option Agreement will be subject to all applicable laws, rules, and regulations, and to such approvals
by any governmental agencies or national securities exchanges as may be required. 
 (e)    All obligations of the
Company under the Plan and this Option Agreement will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially
all of the business and/or assets of the Company. 

  
 6. 

 ATTACHMENT II 

2018 EQUITY INCENTIVE PLAN 

 ATTACHMENT III 

NOTICE OF EXERCISE 

PRINCIPIA BIOPHARMA, INC. 

400 E. JAMIE COURT 

SOUTH SAN FRANCISCO, CA 94080 

Date of Exercise:
                     
 This
constitutes notice to Principia Biopharma, Inc. (the “Company”) under my stock option that I elect to purchase the below number of shares of Common Stock of the Company (the “Shares”) for the exercise
price set forth below. 
  

									
	 Type of option (check one):
	  	 	Incentive ☐	 	  	 	Nonstatutory ☐	 
	 Stock option dated:
	  				  			
		  	  
	  
	 	  	  
	  
	 
	 Number of Shares as to which option is exercised:
	  				  			
		  	  
	  
	 	  	  
	  
	 
	 Certificates to be issued in name of:
	  				  			
		  	  
	  
	 	  	  
	  
	 
	 Total exercise price:
	  	$	                 	 	  	$	                 	 
		  	  
	  
	 	  	  
	  
	 
	 Cash payment delivered herewith:
	  	$	 	 	  	$	 	 
		  	  
	  
	 	  	  
	  
	 
	 Regulation T Program (cashless
exercise1):
	  	$	 	 	  	$	 	 
		  	  
	  
	 	  	  
	  
	 
	 Value of
                 Shares delivered herewith2:
	  	$	 	 	  	$	]	 
		  	  
	  
	 	  	  
	  
	 

 By this exercise, I agree (i) to provide such additional documents as you may require pursuant to the
terms of the Principia Biopharma, Inc. 2018 Equity Incentive Plan, (ii) to provide for the payment by me to you (in the manner designated by you) of your withholding obligation, if any, relating to the exercise of this option, and (iii) if
this exercise relates to an incentive stock option, to notify you in writing within fifteen (15) days after the date of any disposition of any of the Shares issued upon exercise of this option that occurs within two (2) years after the
date of grant of this option or within one (1) year after such Shares are issued upon exercise of this option. 
  

 
  

	1 	 Shares must meet the public trading requirements set forth in the option agreement. 

	2 	 Shares must meet the public trading requirements set forth in the option. Shares must be valued in accordance
with the terms of the option being exercised, and must be owned free and clear of any liens, claims, encumbrances or security interests. Certificates must be endorsed or accompanied by an executed assignment separate from certificate.

 I agree that, if required by the Company (or a representative of the underwriters) in
connection with the first underwritten registration of the offering of any securities of the Company under the Securities Act, I will not sell, dispose of, transfer, make any short sale of, grant any option for the purchase of, or enter into any
hedging or similar transaction with the same economic effect as a sale with respect to any shares of Common Stock or other securities of the Company for a period of one hundred eighty (180) days following the effective date of a registration
statement of the Company filed under the Securities Act (or such longer period as the underwriters or the Company will request to facilitate compliance with FINRA Rule 2241 or any successor or similar rule or regulation) (the “Lock-Up Period”). I further agree to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriters that are consistent with the foregoing or that are
necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until
the end of such period. 
  

	
	Very truly yours,
	
	   

	Signature
	
	   

	Print Name
	
	Address of Record:
	
	   

	
	   

  
 2.EX-10.6

 Exhibit 10.6 

PRINCIPIA BIOPHARMA, INC. 

CHANGE IN CONTROL AND SEVERANCE AGREEMENT 

This Change in Control and Severance Agreement (the “Agreement”) is dated as of
                    , 2018, by and between [                ]
(“Executive”) and Principia Biopharma Inc., a Delaware corporation, including its subsidiaries (the “Company”), effective as of
                    , 2018 (the “Effective Date”). This Agreement is intended to provide Executive with certain benefits
described herein upon the occurrence of specific events. 
 RECITALS 

A.    It is expected that another company may from time to time consider the possibility of acquiring the Company or that
a Change in Control may otherwise occur. The Company’s Board of Directors (the “Board”) recognizes that such consideration can be a distraction to Executive and can cause Executive to consider alternative employment
opportunities. The Board has determined that it is in the best interests of the Company and its stockholders to assure that the Company will have the continued dedication and objectivity of Executive, notwithstanding the possibility, threat or
occurrence of a Change in Control (as defined below) of the Company. 
 B.    The Board believes it is in the best
interests of the Company and its stockholders to retain Executive and provide incentives to Executive to continue in the service of the Company. 

C.    The Board further believes that it is imperative to provide Executive with certain benefits upon termination of
Executive’s employment in connection with a Change in Control and otherwise, which benefits are intended to provide Executive with financial security and provide sufficient income and encouragement to Executive to remain with the Company,
notwithstanding the possibility of a Change in Control and/or termination of Executive’s employment with the Company. 

D.    To accomplish the foregoing objectives, the Board has directed the Company, upon execution of this Agreement by
Executive, to agree to the terms provided in this Agreement. 
 Now therefore, in consideration of the mutual promises, covenants and
agreements contained herein, and in consideration of the continuing employment of Executive by the Company, the parties hereto agree as follows: 

1.    At-Will Employment. Executive’s employment is at-will, which means that the Company may terminate Executive’s employment at any time, with or without advance notice, and with or without Cause. Similarly, Executive may resign Executive’s employment at
any time, with or without advance notice. Executive shall not receive any compensation of any kind, including, without limitation, equity award vesting acceleration and severance benefits, following Executive’s last day of employment with the
Company, except as expressly provided in this Agreement. 

  
 1. 

 2.    Severance Benefits in the event of a Change in Control
Termination. If Executive’s employment is terminated without Cause (and other than as a result of Executive’s death or disability), or Executive resigns for Good Reason, in either case in connection with or within twelve
(12) months after a Change in Control (and contingent upon the closing of the Change in Control) (collectively, a “Change in Control Termination”), and provided such termination constitutes a
“separation from service” (within the meaning of Treasury Regulation Section 1.409A-1(h)), Executive will receive the Accrued Amounts (as defined below) and subject to Executive’s
(a) returning all Company property; (b) complying with his her post-termination obligations under this Agreement and Company’s Employee Proprietary Information and Invention Agreement (the “Proprietary Information
Agreement”); (c) execution, delivery and non-revocation of an agreement that includes an effective release of all claims against the Company (the “Release”) within the time
period following the date of Executive’s Change in Control Termination provided in the Release, and (d) complying with the Release including without limitation any non-disparagement and
confidentiality provisions contained therein, the Company shall provide Executive with the following severance benefits (the “Change in Control Severance Benefits”): 

(a)    The Company shall pay Executive an amount equal to the sum of [18] [12] [9] months of Executive’s then
current base salary plus target bonus, ignoring any decrease in base salary that forms the basis for Good Reason, less all applicable withholdings and deductions, paid over such [18] [12] [9] month period immediately following the Change in Control
Termination in accordance with the Company’s regular payroll practices, on the schedule described in Section 4 below. 

(b)    Should Executive elect to continue his or her medical, dental and/or vision insurance benefits
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) and any analogous provisions of applicable state law, the Company shall reimburse Executive for the COBRA premiums necessary to continue COBRA
coverage for Executive and his or her eligible dependents (“COBRA Premiums”) from the date of Executive’s Change in Control Termination until the earliest to occur of (a) [18] [12] [9] months following the Change in
Control Termination, (b) the expiration of Executive’s eligibility for the continuation coverage under COBRA, and (c) the date when Executive becomes eligible for substantially equivalent health insurance coverage in connection with
new employment or self-employment (such period from the date of the Change in Control Termination through the earliest of (a) through (c) is referred to herein as the “Change in Control COBRA Benefits Payment
Period”). Notwithstanding the foregoing, if the Company determines, in its sole discretion, that the Company cannot provide the COBRA Premium benefits without potentially incurring financial costs or penalties under applicable law
(including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof pay Executive a taxable cash amount, which payment shall be made regardless of whether Executive or Executive’s eligible
family members elect health care continuation coverage (the “Health Care Benefit Payment”). The Health Care Benefit Payment shall be paid in monthly installments on the same schedule that the

  
 2. 

 
COBRA Premiums would otherwise have been paid to the insurer. The Health Care Benefit Payment shall be equal to the amount that the Company would have otherwise paid for COBRA insurance premiums
(which amount shall be calculated based on the premium for the first month of coverage), and shall be paid until the expiration of the Change in Control COBRA Benefits Payment Period. If Executive becomes eligible for coverage under another
employer’s group health plan or otherwise ceases to be eligible for COBRA during the [18] [12] [9] months following the Change in Control Termination, Executive must immediately notify the Company of such event. 

(c)    All outstanding Eligible Equity Awards subject to vesting then held by Executive shall become vested and
exercisable (if applicable) with respect to all of the shares subject thereto and any shares acquired upon the exercise or issuance thereof held by Executive shall automatically be accelerated so as to become vested and exercisable (if applicable)
and any right of repurchase or forfeiture provision shall lapse as to all of such shares, effective immediately prior to Executive’s Change in Control Termination under this Section 2(c). Nothing in this Section 2(c) prohibits the
Company or a successor organization (or its parent) from causing such Eligible Equity Awards or other Company securities to earlier terminate pursuant to the terms of the applicable equity plan or award agreements in connection with a Change in
Control, merger, acquisition or other similar corporate transaction where such equity awards will terminate and not be assumed by the successor or acquiring entity. 

3.    Severance Benefits upon an Involuntary Termination that is not a Change in Control Termination. If
Executive’s employment is terminated without Cause (and other than as a result of Executive’s death or disability), or Executive resigns for Good Reason, and such termination is not a Change in Control Termination (an
“Involuntary Termination”), and provided such termination constitutes a “separation from service” (within the meaning of Treasury Regulation Section 1.409A-1(h)),
Executive will receive the Accrued Amounts and subject to Executive’s (a) returning all Company property; (b) complying with his her post-termination obligations under this Agreement and the Proprietary Information Agreement;
(c) execution, delivery and non-revocation of the Release within the time period following the date of Executive’s Involuntary Termination provided in the Release, and (d) complying with the
Release including without limitation any non-disparagement and confidentiality provisions contained therein, the Company shall provide Executive with the following severance benefits (the “Severance
Benefits”): 
 (a)    The Company shall pay Executive an amount equal to [12] [9] [6] months of
Executive’s then current base salary, ignoring any decrease in base salary that forms the basis for Good Reason, less all applicable withholdings and deductions, paid over such [12] [9] [6] month period immediately following the Involuntary
Termination in accordance with the Company’s regular payroll practices, on the schedule described in Section 4 below. 

(b)    Should Executive elect to continue his or her medical, dental and/or vision insurance benefits
pursuant to COBRA and any analogous provisions of applicable state law, the Company shall reimburse Executive for the COBRA Premiums from the date of Executive’s Involuntary Termination until the earliest to occur of (a) [12] [9] [6] months
following the 

  
 3. 

 
Involuntary Termination, (b) the expiration of Executive’s eligibility for the continuation coverage under COBRA, and (c) the date when Executive becomes eligible for substantially
equivalent health insurance coverage in connection with new employment or self-employment (such period from the date of the Involuntary Termination through the earliest of (a) through (c) is referred to herein as the “COBRA Benefits
Payment Period”). Notwithstanding the foregoing, if the Company determines, in its sole discretion, that the Company cannot provide the COBRA Premium benefits without potentially incurring financial costs or penalties under applicable
law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof pay Executive a taxable Health Care Benefit Payment. The Health Care Benefit Payment shall be paid in monthly installments on
the same schedule that the COBRA Premiums would otherwise have been paid to the insurer. The Health Care Benefit Payment shall be equal to the amount that the Company would have otherwise paid for COBRA insurance premiums (which amount shall be
calculated based on the premium for the first month of coverage), and shall be paid until the expiration of the COBRA Benefits Payment Period. If Executive becomes eligible for coverage under another employer’s group health plan or otherwise
ceases to be eligible for COBRA during the [12] [9] [6] months following the Involuntary Termination, Executive must immediately notify the Company of such event. 

4.    Limitations And Conditions On Severance Benefits 

(a)    Release Prior to Payment of Benefits. Prior to the payment of any of the Change in Control Severance
Benefits or the Severance Benefits, as applicable, Executive shall execute, and allow to become effective, the Release within the time frame set forth therein, but not later than sixty (60) days following Executive’s Change in Control
Termination or Involuntary Termination, as applicable (the “Release Effective Date”). Such Release shall specifically relate to all of Executive’s rights and claims in existence at the time of such execution and shall
confirm Executive’s continuing obligations to the Company (including but not limited to obligations under the Proprietary Information Agreement). No Change in Control Severance Benefits or Severance Benefits, as applicable, will be paid prior
to the Release Effective Date. Within five (5) days following the Release Effective Date, the Company will pay Executive the Change in Control Separation Benefits or Severance Benefits, as applicable, Executive would otherwise have received on
or prior to such date but for the delay in payment related to the effectiveness of the Release, with the balance of the benefits being paid as originally scheduled. Notwithstanding the foregoing, if the Company (or, if applicable, the successor
entity thereto) determines that any of the Change in Control Severance Benefits or any of the Severance Benefits constitute “deferred compensation” under Section 409A (defined below), then, solely to the extent necessary to avoid the
incurrence of the adverse personal tax consequences under Section 409A, no Change in Control Severance Benefits or Severance Benefits, as applicable, will be paid prior to the sixtieth (60th) day following Executive’s termination date. On
the sixtieth (60th) day following the date of termination, the Company will pay to Executive in a lump sum the applicable Change in Control Severance Benefits or Severance Benefits, as applicable, that Employee would otherwise have received on or
prior to such date, with the balance of the Change in Control Severance Benefits or Severance Benefits, as applicable, being paid as originally scheduled. 

  
 4. 

 (b)    Income and Employment Taxes. Executives agrees that
Executive shall be responsible for any applicable taxes of any nature (including any penalties or interest that may apply to such taxes) that the Company reasonably determines apply to any payment made hereunder, that Executive’s receipt of any
benefit hereunder is conditioned on Executive’s satisfaction of any applicable withholding or similar obligations that apply to such benefit, and that any cash payment owed hereunder will be reduced to satisfy any such withholding or similar
obligations that may apply. 
 (c)    Compliance with Section 409A. It is intended that
each installment of the payments and benefits provided for in this Agreement is a separate “payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i). Further, it is intended that
payments of the amounts set forth in this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (Section
409A of the Code, together, with any state law of similar effect, “Section 409A”) provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). However, if the Company (or, if applicable, the successor entity thereto) determines that any of the severance payments and benefits
provided under this Agreement (the “Agreement Payments”) constitute “deferred compensation” under Section 409A and Executive is, on the date of his or her termination, a “specified employee” of the
Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) (a “Specified Employee”), then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences
under Section 409A, the timing of the Change in Control Severance Benefits described in Section 2(a) or the Severance Benefits described in Section 3(a), as applicable, shall be delayed as follows: on the earlier to occur of
(i) the date that is six months and one day after Executive’s termination date or (ii) the date of Executive’s death (such earlier date, the “Delayed Initial Payment Date”), the Company (or the successor
entity thereto, as applicable) shall pay to Executive a lump sum amount equal to the applicable benefit that Executive would otherwise have received through the Delayed Initial Payment Date if the commencement of the payment of the benefit had not
been so delayed pursuant to this Section 4(c). 
 (d)    Related Matters. Executive further
acknowledges and agrees to resign from all Company positions, including membership on any board of directors at the time of Executive’s termination. 

(e)    Conflicts. Executive represents that his or her performance of all the terms of this Agreement will
not breach any other agreement to which Executive is a party. Executive has not, and will not during the term of this Agreement, enter into any oral or written agreement in conflict with any of the provisions of this Agreement. 

(f)    Successors. Any successor to the Company (whether direct or indirect and whether by purchase, lease,
merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the
same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. The terms of this Agreement and all of Executive’s rights hereunder and thereunder shall inure to the benefit of,
and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 

  
 5. 

 (g)    Notice. Notices and all other communications
contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. Mailed notices to Executive
shall be addressed to Executive at the home address which Executive most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed
to the attention of its Chief Executive Officer. 
 5.    Definitions. 

(a)    Accrued Amounts. For purposes of this Agreement, “Accrued Amounts” means Executive’s
base salary through the date of termination, together with any compensation and benefits payable to Executive based on his or her participation in any compensation or benefit plan, program or arrangement through the date of termination. 

(b)    Cause. For purposes of this Agreement, “Cause”, as determined by the Board
acting in good faith and based on information then known to it, means: (i) Executive’s conviction (including a guilty plea or plea of nolo contendere) of any felony, or of any other crime involving fraud, dishonesty or moral turpitude;
(B) Executive’s commission or attempted commission of or participation in a fraud or act of dishonesty against the Company; (C) Executive’s material violation of any written and fully executed contract or agreement between
Executive and the Company, including without limitation, material breach of this Agreement or Executive’s Proprietary Agreement, or of any Company policy, or of any statutory duty Executive owes to the Company; or (D) Executive’s
conduct that constitutes gross insubordination or habitual neglect of duties, provided, however, that the action or conduct described in clause (C) above and this clause (D) will constitute “Cause” only if such action or
conduct causes (or is reasonably expected to cause) harm to the Company and continues after the Board has provided Executive with written notice thereof and thirty (30) days opportunity to cure the same (provided that the Board is not obligated
to provide such written notice and opportunity to cure if the action or conduct is not reasonably susceptible to cure). The determination that a termination is for Cause shall be made by the Board in good faith. 

(c)    Change in Control. For purposes of this Agreement, “Change in Control” means
any of the following: (A) a transaction or series of transactions (other than an offering of our common stock to the general public through a registration statement filed with the Securities and Exchange Commission) whereby any person or
related group of persons (other than the Company, any of its subsidiaries, an employee benefit plan maintained by the Company or any of its subsidiaries or a person that, prior to such transaction, directly or indirectly controls, is controlled by,
or is under common control with, the Company) directly or indirectly acquires beneficial ownership of securities of the Company possessing more than 50% of the total combined voting power of the Company’s securities outstanding immediately
after such acquisition; provided, however, any change in the beneficial ownership of the securities of the Company as a result of a private financing of the Company that is approved by the board of 

  
 6. 

 
directors will not be deemed to constitute a change in control; or (B) the consummation by the Company (whether directly involving the Company or indirectly involving the Company through one
or more intermediaries) of (i) a merger, consolidation, reorganization, or business combination, or (ii) a sale or other disposition of all or substantially all of the Company’s assets in any single transaction or series of related
transactions, or (iii) the acquisition of assets or stock of another entity, in each case other than a transaction (x) which results in the Company’s voting securities outstanding immediately before the transaction continuing to
represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or
substantially all of the company’s assets or otherwise succeeds to the business of the Company (the Company or such person the “successor entity”)) directly or indirectly, at least a majority of the combined voting power of the
successor entity’s outstanding voting securities immediately after the transaction; and (y) after which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the successor entity;
provided, however, that no person or group shall be treated as beneficially owning 50% or more of combined voting power of the successor entity solely as a result of the voting power held in the Company prior to the consummation of the transaction.

 (d)    Eligible Equity Award. For purposes of this Agreement, “Eligible Equity
Award” means all outstanding and unvested equity awards granted under the Company’s equity incentive plans that are held by Executive as of the effective date of a Change in Control. 

(e)    Good Reason. For purposes of this Agreement, “Good Reason” for
Executive’s resignation of his or her employment will exist following the occurrence of any of the following without Executive’s written consent: (a) material reduction in Executive’s duties (including responsibilities and/or
authorities), provided, however, that a change in job position (including a change in title) shall not be deemed a “material reduction” in and of itself unless Executive’s new duties are substantially reduced from the prior
duties; (B) relocation of Executive’s principal place of employment to a place that increases Executive’s one-way commute by more than forty-five (45) miles as compared to Executive’s
then current principal place of employment immediately prior to such relocation; or (C) a reduction of at least 10% of Executive’s gross base salary (unless pursuant to a salary reduction program applicable generally to the Company’s
executive employees); provided, that any such event described above shall not constitute Good Reason unless Executive delivers to the Company a notice of termination for Good Reason within thirty (30) days after the initial
existence of the circumstances giving rise to Good Reason, within thirty (30) days following the receipt of such notice of termination for Good Reason the Company has failed to reasonably cure the circumstances giving rise to Good Reason, and
Executive terminates his or her employment within thirty (30) days following the end of the cure period. 

6.    Parachute Payments. Notwithstanding anything in the foregoing to the contrary, if any of the payments
to Executive (prior to any reduction described in this paragraph) provided for in this Agreement, together with any other payments which Executive has the right to receive from the Company, any acquiror, their affiliates or otherwise (the
“Payments”) would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code and if the Safe Harbor Amount, as defined below, is greater than the Taxed Amount, as defined below, then the
total 

  
 7. 

 
amount of such Payments shall be reduced to the Safe Harbor Amount. The “Safe Harbor Amount” is the largest portion of the Payments that would result in no portion of the
Payments being subject to the excise tax set forth at Section 4999 of the Code (“Excise Tax”). The “Taxed Amount” is the total amount of the Payments (prior to any reduction as described in this
paragraph) notwithstanding that all or some portion of the Payments may be subject to the Excise Tax. Solely for the purpose of comparing which of the Safe Harbor Amount and the Taxed Amount is greater, the determination of each such amount, shall
be made on an after-tax basis, taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax. If a reduction in payments or benefits constituting
“parachute payments” is necessary so that the Payments equal the Safe Harbor Amount, reduction will occur in the manner that results in the greatest economic benefit for Executive. If more than one method of reduction will result in the
same economic benefit, the items so reduced will be reduced pro rata. In no event will the Company, any subsidiary or any stockholder be liable to Executive for any amounts not paid as a result of the operation of this Section 6. The Company
will use commercially reasonable efforts to cause the accounting or law firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to Executive and the Company within fifteen
(15) calendar days after the date on which Executive’s right to the Payments is triggered (if requested at that time by Executive or the Company) or such other time as requested by Executive or the Company. 

7.    Other Employment Terms and Conditions. The employment relationship between the parties shall be
governed by the general employment policies and procedures of the Company, including those relating to the protection of confidential information and assignment of inventions; provided, however, that when the terms of this Agreement differ from or
are in conflict with the Company’s general employment policies or procedures, this Agreement shall control. 

8.    Miscellaneous Provisions. 

(a)    No Duty to Mitigate. Executive shall not be required to mitigate the amount of any payment
contemplated by this Agreement (whether by seeking new employment or in any other manner), nor shall any such payment be reduced by any earnings that Executive may receive from any other source. 

(b)    Waiver. No provision of this Agreement shall be modified, waived or discharged unless the
modification, waiver or discharge is agreed to in writing and signed by Executive and by an authorized officer of the Company (other than Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of
this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 

(c)    Whole Agreement. No agreements, representations or understandings (whether oral or written and
whether express or implied) which are not expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof. This Agreement supersedes any agreement (or relevant portion thereof)
concerning 

  
 8. 

 
similar subject matter dated prior to the date of this Agreement and by execution of this Agreement both parties agree that any such predecessor agreement (or relevant portion thereof) shall be
deemed null and void. 
 (d)    Choice of Law. The validity, interpretation, construction and performance
of this Agreement shall be governed by the laws of the State of California without reference to conflict of laws provisions, and the parties hereto submit to the exclusive jurisdiction of the state and federal courts of the State of California. 

(e)    Severability. If any term or provision of this Agreement or the application thereof to any
circumstance shall, in any jurisdiction and to any extent, be invalid or unenforceable, such term or provision shall be ineffective as to such jurisdiction to the extent of such invalidity or unenforceability without invalidating or rendering
unenforceable the remaining terms and provisions of this Agreement or the application of such terms and provisions to circumstances other than those as to which it is held invalid or unenforceable, and a suitable and equitable term or provision
shall be substituted therefor to carry out, insofar as may be valid and enforceable, the intent and purpose of the invalid or unenforceable term or provision. 

(f)    Legal Fees and Expenses. The parties shall each bear their own expenses, legal fees and other fees
incurred in connection with the execution of this Agreement. 
 (g)    No Assignment of Benefits. The
rights of any person to payments or benefits under this Agreement shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment,
attachment or other creditor’s process, and any action in violation of this Section 7(h) shall be void. 

(h)    Assignment by Company. The Company may assign its rights under this Agreement to an affiliate, and an
affiliate may assign its rights under this Agreement to another affiliate of the Company or to the Company.    In the case of any such assignment, the term “Company” when used in a section of this Agreement shall mean
the corporation that actually employs Executive. 
 (i)    Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument. 

  
 9. 

 Each of the parties has executed this Agreement, in the case of the Company by its duly
authorized officer, as of the Effective Date. 
  

			
	EXECUTIVE
	
	  

			
		
	Address:	 	  

 
			
	
	  

			
		
	Date:	 	  

 
			
	
	PRINCIPIA BIOPHARMA INC.

 
			
	
	  

	Name: Name
	Title: [                    ]

 
			
		
	Date:	 	  

  
 10.

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