Document:

EX-4.2

 Exhibit 4.2 

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE
SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. 

TOCAGEN INC. 
 WARRANT TO
PURCHASE COMMON STOCK 
  

			
	No. CW—1	  	June 5th, 2013

 VOID AFTER JUNE 4TH, 2023 

THIS CERTIFIES THAT, for value received, Voices Against Brain Cancer
(the “Holder”), is entitled to subscribe for and purchase from TOCAGEN INC., a Delaware corporation (the “Company”), 5,000 Exercise
Shares at the Exercise Price (each subject to adjustment as provided herein). This Warrant is issued to Holder in connection with that certain Consulting Agreement, dated on even date herewith, by and between Holder and the Company (as the same may
be amended from time to time, the “Consulting Agreement”). 
 1.
DEFINITIONS. As used herein, the following terms shall have the following respective meanings: 
 (a)
“Change in Control” means (a) a sale of all or substantially all of the assets of the Company; (b) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or
consolidation in which stockholders immediately before the merger or consolidation have, immediately after the merger or consolidation, a majority of the voting power of the surviving corporation); (c) a reverse merger in which the Company is
the surviving corporation but the shares of the Company’s Common Stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise (other than a
reverse merger in which stockholders immediately before the merger have, immediately after the merger, a majority of the voting power of the surviving corporation); or (d) any transaction or series of related transactions in which in excess of
50% of the Company’s voting power is transferred, other than the sale by the Company of stock in transactions the primary purpose of which is to raise capital for the Company’s operations and activities. 

(b) “Exercise Period” shall mean the period commencing with the date hereof and ending ten (10) years
later, unless sooner terminated as provided below. 
 (c) “Exercise Price” shall mean $0.57 per Exercise Share
subject to adjustment pursuant to Section 5 below. 
 (d) “Exercise Shares” shall mean shares of the
Company’s Common Stock issuable upon exercise of this Warrant. 
 (e) “Services” shall have the meaning
ascribed to it in the Consulting Agreement. 

  
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 2. VESTING SCHEDULE AND EXERCISE
OF WARRANT. 
 2.1 Vesting Schedule. One fourth
(1/4th) of the Exercise Shares shall vest and be eligible for purchase on the one- (1) year anniversary of the date hereof and one forty-eighth (1/48th) of the Exercise Shares shall vest and be eligible for purchase monthly thereafter until all of the Exercise Shares have vested, provided that Holder continues to provide Services to the
Company. In addition, one fourth (1/4th) of the Exercise Shares (or all remaining unvested Exercise Shares, if less) shall vest and be eligible for purchase immediately prior to the effective
time of a Change of Control. Upon expiration or termination of the Consulting Agreement, vesting of the Exercise Shares shall cease and this Warrant shall thereafter remain exercisable for up to that number of Exercise Shares as were vested as of
the effective time of such expiration or termination. 
 2.2 Exercise of Warrant. The rights represented by this Warrant may be
exercised in whole or in part at any time during the Exercise Period so long as the Exercise Shares for which this Warrant is being exercised are then vested and exercisable hereunder in accordance with Section 2.1, by delivery of the following
to the Company at its address set forth above (or at such other address as it may designate by notice in writing to the Holder): 

(a) An executed Notice of Exercise in the form attached hereto, which includes an agreement to become a party to the Voting Agreement
(defined in the form of Notice of Exercise); 
 (b) Payment of the Exercise Price either in cash or by check; and 

(c) This Warrant. 
 Upon
the exercise of the rights represented by this Warrant, a certificate or certificates for the Exercise Shares so purchased, registered in the name of the Holder or persons affiliated with the Holder, if the Holder so designates, shall be issued and
delivered to the Holder within a reasonable time after the rights represented by this Warrant shall have been so exercised. In the event that this Warrant is being exercised for less than all of the then-current number of Exercise Shares purchasable
hereunder, the Company shall, concurrently with the issuance by the Company of the number of Exercise Shares for which this Warrant is then being exercised, issue a new Warrant exercisable for the remaining number of Exercise Shares purchasable
hereunder. 
 The person in whose name any certificate or certificates for Exercise Shares are to be issued upon exercise of this Warrant
shall be deemed to have become the holder of record of such shares on the date on which this Warrant was surrendered and payment of the Exercise Price was made, irrespective of the date of delivery of such certificate or certificates, except that,
if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock
transfer books are open. 
 2.3 Net Exercise. Notwithstanding any provisions herein to the contrary, if the fair market value of one
Exercise Share is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Warrant by payment of cash, the Holder may elect to receive shares equal to the value (as determined below) of this Warrant
(or the 

  
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portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with the properly endorsed Notice of Exercise (but solely with respect to Exercise
Shares that are then vested and exercisable hereunder in accordance with Section 2.1) in which event the Company shall issue to the Holder a number of Exercise Shares computed using the following formula: 

 

			
		  	 X = Y (A-B)

             A

		
	Where X =	  	the number of Exercise Shares to be issued to the Holder
		
	Y =	  	the number of Exercise Shares purchasable under the Warrant or, if only a portion of the Warrant is being exercised, that portion of the Warrant being canceled (at the date of such calculation)
		
	A =	  	the fair market value of one Exercise Share (at the date of such calculation)
		
	B =	  	Exercise Price (as adjusted to the date of such calculation)

 For purposes of the above calculation, the fair market value of one Exercise Share shall be determined
by the Company’s Board of Directors in good faith; provided, however, that in the event that this Warrant is exercised pursuant to this Section 2.3 in connection with the Company’s initial public offering of its Common Stock, the fair
market value per share shall be the per share offering price to the public of the Company’s initial public offering. 
 3.
COVENANTS OF THE COMPANY AS TO EXERCISE SHARES. The Company covenants and agrees that all Exercise Shares that may be issued
upon the exercise of the rights represented by this Warrant will, upon issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issuance thereof. The Company further
covenants and agrees that the Company will at all times during the Exercise Period, have authorized and reserved, free from preemptive rights, a sufficient number of shares of the series of equity securities comprising the Exercise Shares to provide
for the exercise of the rights represented by this Warrant. If at any time during the Exercise Period the number of authorized but unissued shares of such series of the Company’s equity securities shall not be sufficient to permit exercise of
this Warrant, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of such series of the Company’s equity securities to such number of shares as shall be
sufficient for such purposes. 
 4. REPRESENTATIONS OF HOLDER. 

4.1 Acquisition of Warrant for Personal Account. The Holder represents and warrants that it is acquiring the Warrant and the Exercise
Shares solely for its account for investment and not with a view to or for sale or distribution of said Warrant or Exercise Shares or any part thereof. The Holder also represents that the entire legal and beneficial interests of the Warrant and
Exercise Shares the Holder is acquiring is being acquired for, and will be held for, its account only. 

  
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 4.2 Information and Sophistication. Holder hereby: (i) acknowledges that it has
received all the information it has requested from the Company and it considers necessary or appropriate for deciding whether to acquire this Warrant and the Exercise Shares, (ii) represents that it has had an opportunity to ask questions and
receive answers from the Company regarding the financial condition of the Company and the risks associated with the acquisition of this Warrant and the Exercise Shares and (iii) further represents that it has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and risk of this investment. 
 4.3 Ability to Bear Economic
Risk. Holder acknowledges that investment in the securities of the Company involves a high degree of risk, and represents that it is able, without materially impairing its financial condition, to hold the Exercise Shares for an indefinite period
of time and to suffer a complete loss of its investment. 
 4.4 Securities Are Not Registered. 

(a) The Holder understands that the Warrant and the Exercise Shares have not been registered under the Securities Act of 1933, as
amended (the “Act”) on the basis that no distribution or public offering of the stock of the Company is to be effected. The Holder realizes that the basis for the exemption may not be present if, notwithstanding its
representations, the Holder has a present intention of acquiring the securities for a fixed or determinable period in the future, selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the
securities. The Holder has no such present intention. 
 (b) The Holder recognizes that the Warrant and the Exercise Shares must be
held indefinitely unless they are subsequently registered under the Act or an exemption from such registration is available. The Holder recognizes that the Company has no obligation to register the Warrant or the Exercise Shares of the Company, or
to comply with any exemption from such registration. 
 (c) The Holder is aware that neither the Warrant nor the Exercise Shares may
be sold pursuant to Rule 144 adopted under the Act unless certain conditions are met, including, among other things, the existence of a public market for the shares, the availability of certain current public information about the Company, the
resale following the required holding period under Rule 144 and the number of shares being sold during any three month period not exceeding specified limitations. Holder is aware that the conditions for resale set forth in Rule 144 have not been
satisfied and that the Company presently has no plans to satisfy these conditions in the foreseeable future. 
 4.5 Disposition of
Warrant and Exercise Shares. 
 (a) The Holder further agrees not to make any disposition of all or any part of the Warrant or
Exercise Shares in any event unless and until: 
 (i) The Company shall have received a letter secured by the Holder from the
Securities and Exchange Commission stating that no action will be recommended to the Commission with respect to the proposed disposition; 

  
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 (ii) There is then in effect a registration statement under the Act covering such
proposed disposition and such disposition is made in accordance with said registration statement; or 
 (iii) The Holder shall have
notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Company, the Holder shall have furnished
the Company with an opinion of counsel, reasonably satisfactory to the Company, for the Holder to the effect that such disposition will not require registration of such Warrant or Exercise Shares under the Act or any applicable state securities
laws. The Company agrees that it will not require an opinion of counsel with respect to transactions under Rule 144 of the Act, except in unusual circumstances. 

(b) The Holder understands and agrees that all certificates evidencing the shares to be issued to the Holder may bear the following
legend: 
 THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. 

4.6 Accredited Investor Status. The Holder has the business and financial experience to protect its own interests in connection with
acquisition of this Warrant and the Exercise Shares. 
 5. ADJUSTMENT OF EXERCISE
PRICE AND NUMBER OF EXERCISE SHARES. In the event of changes in the series of equity securities of the Company comprising the Exercise Shares by reason of
stock dividends, splits, recapitalizations, reclassifications, combinations or exchanges of shares, separations, reorganizations, liquidations, or the like, the number and class of Exercise Shares available under the Warrant in the aggregate and the
Exercise Price shall be correspondingly adjusted to give the Holder of the Warrant, on exercise for the same aggregate Exercise Price, the total number, class, and kind of shares as the Holder would have owned had the Warrant been exercised prior to
the event and had the Holder continued to hold such shares until after the event requiring adjustment; provided, however, that such adjustment shall not be made with respect to, and this Warrant shall terminate if not exercised prior to, the
events set forth in Section 7 below. For purposes of this Section 5, the “aggregate Exercise Price” shall mean the aggregate Exercise Price payable in connection with the exercise in full of this Warrant. The form
of this Warrant need not be changed because of any adjustment in the number of Exercise Shares subject to this Warrant. 
 6.
FRACTIONAL SHARES. No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Exercise Shares (including fractions) to be issued upon exercise of
this Warrant shall be aggregated for purposes of determining whether the exercise would result in the issuance of any fractional share. If, after 

  
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aggregation, the exercise would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such fraction a
sum in cash equal to the product resulting from multiplying the then current fair market value of one Exercise Share by such fraction. 

7. EARLY TERMINATION. 

7.1 Change in Control. In the event of, at any time during the Exercise Period, a Change in Control, the Company shall provide to the
Holder ten (10) days advance written notice of such Change in Control, and this Warrant shall terminate unless exercised immediately prior to the effective time of such Change in Control. 

7.2 Termination of Consulting Agreement. In the event that the Consulting Agreement expires or is terminated at any time during the
Exercise Period, this Warrant shall terminate on the ninetieth (90th) day after the date of such expiration or termination unless exercised prior to such termination. 

8. MARKET STAND-OFF AGREEMENT. Holder shall 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, any Common Stock (or other securities) of the Company held by Holder, for a period of one hundred
eighty (180) days following the effective date of a registration statement of the Company filed under the Act (the “Lock-Up Period”) (or such longer period, not to exceed thirty-four (34) days after the expiration
of the 180-day period, as the underwriters or the Company shall request in order to facilitate compliance with NASD Rule 2711). Holder agrees to execute and deliver such other agreements as may be reasonably requested by the Company and/or the
managing underwriter which are consistent with the foregoing or which are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to such Common Stock (or
other securities) until the end of such period. The underwriters of the Company’s stock are intended third party beneficiaries of this Section 8 and shall have the right, power and authority to enforce the provisions hereof as though they
were a party hereto. For the avoidance of doubt, if Holder sells any Common Stock either (a) on the open market after the Company’s initial public offering under an effective registration statement filed under the Act or (b) pursuant
to Rule 144 under the Act, then, provided such sale otherwise complies with the terms of this Warrant, the shares of Common Stock so sold by Holder shall cease to be subject to the provisions of this Section 8. 

9. NO STOCKHOLDER RIGHTS. This Warrant in and of itself shall not entitle the Holder to
any voting rights or other rights as a stockholder of the Company. 
 10. TRANSFER OF
WARRANT. Subject to applicable laws and the restriction on transfer set forth on the first page and Section 4.5 of this Warrant, this Warrant and all rights hereunder are transferable, by the Holder in person or by duly
authorized attorney, upon delivery of this Warrant and the form of assignment attached hereto to any transferee designated by Holder. The transferee shall sign an investment letter in form and substance satisfactory to the Company. 

  
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 11. LOST, STOLEN, MUTILATED OR
DESTROYED WARRANT. If this Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant,
include the surrender thereof), issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute an original contractual obligation of the Company, whether or not the
allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone. 
 12. AMENDMENT.
Any term of this Warrant may be amended or waived with the written consent of the Company and Holder. 
 13. NOTICES,
ETC. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient, if not, then on the next business day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company at the address listed below and to Holder at the address provided to the Company or such
other address as the Company or Holder may designate by 10 days advance written notice to the other parties hereto. 
 14.
ACCEPTANCE. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein. 

15. GOVERNING LAW. This Warrant and all rights, obligations and liabilities hereunder shall be governed
by and construed under the laws of the State of California as applied to agreements among California residents, made and to be performed entirely within the State of California without giving effect to conflicts of laws principles. 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its duly authorized officer as of June 5th, 2013. 
  

			
	TOCAGEN INC.
		
	By:	 	/s/ Harry Gruber

  

			
	Name:	 	Harry Gruber

  

			
	Title:	 	CEO

  

			
	Address:	 	3030 Bunker Hill St., #230
		 	San Diego, CA 92109

  
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 NOTICE OF EXERCISE 

TO: TOCAGEN INC. 

(1) ☐ The undersigned hereby elects to purchase ________ shares of Common Stock (the
“Exercise Shares”) of Tocagen Inc. (the “Company”) pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full, together
with all applicable transfer taxes, if any. 
 ☐ The undersigned hereby elects to purchase ________ shares of Common
Stock (the “Exercise Shares”) of Tocagen Inc. (the “Company”) pursuant to the terms of the net exercise provisions set forth in Section 2.3 of the attached Warrant, and shall tender payment
of all applicable transfer taxes, if any. 
 (2) Please issue a certificate or certificates representing said Exercise Shares in the
name of the undersigned or in such other name as is specified below: 
 ______________________________ 

(Name) 

______________________________ 

______________________________ 

(Address) 
 (3) The
undersigned and the Company hereby agree that the undersigned is a party to that certain Voting Agreement, dated December 20, 2007, between certain holders of Common Stock of the Company (the “Voting Agreement”) pursuant
to which such holders of Common Stock grant to Harry Gruber, M.D. the power and authority to vote all shares of Common Stock represented by the Voting Agreement on all matters for which a vote of holders of Common Stock of the Company is required or
requested as set forth in the Voting Agreement. The undersigned also agrees that, upon request, it will deliver to the Company a counterpart signature page to the Voting Agreement, duly executed by the Holder. The undersigned represents and agrees
that it has had the opportunity to review and to seek the advise of legal counsel with respect to the Voting Agreement. 
 (4) The
undersigned represents that (i) the aforesaid Exercise Shares are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has
no present intention of distributing or reselling such shares; (ii) the undersigned is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and
knowledgeable decision regarding its investment in the Company; (iii) the undersigned is experienced in making investments of this type and has such knowledge and background in financial and business matters that the undersigned is capable of
evaluating the merits and risks of this investment and protecting the undersigned’s own interests; (iv) the undersigned understands that Exercise Shares issuable upon exercise of this Warrant have not been registered under the Securities
Act of 1933, as amended (the “Act”), by reason of a specific exemption from the registration provisions of the Act, which exemption depends upon, among other things, the bona fide nature of the investment intent as expressed
herein, and, because such securities have not been registered under the Act, they must be held indefinitely unless 

  
 1. 

 
subsequently registered under the Act or an exemption from such registration is available; (v) the undersigned is aware that the aforesaid Exercise Shares may not be sold pursuant to Rule
144 adopted under the Act unless certain conditions are met and until the undersigned has held the shares for the number of years prescribed by Rule 144, that among the conditions for use of the Rule is the availability of current information to the
public about the Company and the Company has not made such information available and has no present plans to do so; and (vi) the undersigned agrees not to make any disposition of all or any part of the aforesaid shares of Exercise Shares unless
and until there is then in effect a registration statement under the Act covering such proposed disposition and such disposition is made in accordance with said registration statement, or, if reasonably requested by the Company, the undersigned has
provided the Company with an opinion of counsel satisfactory to the Company, stating that such registration is not required. 
 (5)
No Exercise Shares subject to the attached Warrant may be exercised prior to the vesting of such Exercise Shares in accordance with Section 2 of such Warrant. 

 

					
	  
 (Date)
	 		 	  
 (Signature)

 
 (Print name)

 Signature of such person or entity listed in (2) above, if different than Holder: 

 

					
	  
 (Date)
	 		 	  
 (Signature)

 
 (Print name)

  
 2. 

 ASSIGNMENT FORM 

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.) 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to 
  

			
	Name:	 	  
 (Please Print)

  

			
	Address:	 	  
 (Please Print)

 Dated:
                    , 20     
  

			
	 Holder’s
 Signature:
	 	  

     

  

			
	 Holder’s
 Address:
	 	  

     

 NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant,
without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant. 

  
 3.EX-4.3

 Exhibit 4.3 

***Text Omitted and Filed Separately 

with the Securities and Exchange Commission. 

Confidential Treatment Requested 

Under 17 C.F.R. Sections 200.80(b)(4) 

and 230.406. 
 Voices
Against Brain Cancer 
 Research and Development Grant Agreement for Tocagen Inc. 

This Agreement, dated June 5, 2013, by and between Tocagen Inc. (“Tocagen”), a Delaware corporation with an address at 3030 Bunker Hill Street,
Suite 230, San Diego, CA 92109 and Voices Against Brain Cancer (“VABC”) a non-profit corporation with an address at Voices Against Brain Cancer 1375 Broadway, 3rd Floor, New York, NY
10018. 
 WHEREAS, Tocagen is a biopharmaceutical company that is developing certain drugs based on a novel replicating gene transfer
platform that may aid in the treatment of brain cancer (the “Brain Cancer Therapies”); and 
 WHEREAS, the Brain Cancer Therapies
being developed by Tocagen are to be evaluated in patients with brain cancer (the “Brain Cancer Therapies Program”); and 

WHEREAS, VABC is a nonprofit organization, described under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, whose
charitable purpose is to find a cure for brain cancer; and 
 WHEREAS, VABC desires to fund the efforts of Tocagen in order to allow Tocagen
to conduct further development and clinical trials of the Brain Cancer Therapies; and 
 WHEREAS, VABC believes that the conduct of
laboratory and clinical trials of the Brain Cancer Therapies will further its mission by awarding Tocagen a Research and Development Grant. 

NOW THEREFORE, the parties agree as follows: 
 1.
Research and Development Grant. VABC is hereby awarding a Research and Development Grant to Tocagen (the “Grant”) at the level of Three Hundred Thousand Dollars ($300,000) to cover a [...***...] period (the “Grant
Period”), to be used by Tocagen during the Grant Period for research and development and clinical trials of the Brain Cancer Therapies. 
 2.
Payment Installments. The payment of $300,000 (the “Grant Payment”) will be paid [...***...] days from execution of this agreement via check. The Grant Period shall commence upon receipt of the Grant Payment by Tocagen. 

3. Repayment of Unused or Improperly Used Funds. Any funds not expended or committed for the purpose of this Grant must be returned to VABC within
[...***...] days of the end of the Grant Period, unless a no-cost extension has been requested and approved. Written request for no-cost extension should include explanation for the extension, statement of the balance of Grant monies
remaining, full accounting of funds extended, and anticipated disbursement of 

  
  

***Confidential Treatment Requested 
  

1 

 the remaining funds. VABC shall determine, in its sole discretion, whether to approve a no-cost extension. 

4. Recovery of Grant Amount. 
 4.1 In the
event the Brain Cancer Therapies are successfully brought to market and the Net Sales of the Brain Cancer Therapies equal or exceed the Benchmark within [...***...] years of this
Agreement, Tocagen shall, at the option of VABC, pay to VABC on the Realization Date or at any time prior to the Outside Date, an amount equal to the Grant, plus Interest (the “Grant Amount’’). For purposes of this agreement, the
following definitions shall apply: 
  

	 	(a)	“Benchmark” shall mean the point at which the Net Sales of the Brain Cancer Therapies developed by Tocagen for humans have reached a total of [...***...] ($[...***...]) Dollars. 

 

	 	(b)	“Net Sales” shall mean [...***...]. 

  

	 	(c)	“Realization Date” shall mean the [...***...] anniversary of the date on which the Net Sales of the Brain Cancer Therapies developed by Tocagen reach the Benchmark. 

 

	 	(d)	“Interest” shall mean simple interest at the rate of [...***...] ([...***...]%) per annum calculated on the amount of the Grant not previously converted pursuant to paragraph 5. 

 

	 	(e)	“Outside Date” shall mean the date which is [...***...] years after the Realization Date. 

4.2 In the event Tocagen enters into a definitive agreement for (i) a favorable sale of all or substantially all of the capital stock of
Tocagen in a transaction other than an IPO; (ii) a favorable merger of Tocagen with another entity, prior to the Outside Date; or (iii) a favorable sale of all or substantially all of the assets of Tocagen for cash prior to the Outside
Date, each a “Favorable Transaction”, Tocagen shall, at the option of VABC (“Favorable Transaction Option”), pay to VABC the Grant Amount. Before or at the time of its approval of Tocagen’s entry into a definitive agreement
for a transaction that could potentially qualify as a Favorable Transaction. Tocagen’s board of directors shall solely determine, in good faith, whether or not such transaction qualifies as a Favorable Transaction. If the Favorable Transaction
Option is not exercised by VABC prior to completion of the first such Favorable Transaction then VABC’s ability to recover the Grant Amount shall expire upon completion of such Favorable Transaction. 

5. Conversion Option. 
  

	 	(a)	Conversion Option. In the event the Grant Amount is to be repaid to VABC pursuant to Paragraph 4.1 of this Agreement, VABC shall have the right, at any time on or before the Outside Date and subject to the
Condition Precedent, to convert all or any part of the Grant Amount into common stock in Tocagen as hereinafter provided (the “Conversion Right”). Tocagen shall have the right at its sole option to provide for the conversion of the Grant
Amount to shares of Tocagen’s common stock in the event of an IPO (defined below). The Conversion Right expires upon the earliest of (i) the date of completion of a 

  
  

***Confidential Treatment Requested 
  

2 

	 	
Change in Control (as defined in Schedule B hereto); (ii) the Outside Date; and (iii) the date of Tocagen’s payment of the Grant Amount to VABC. 

 

	 	(b)	Condition Precedent. VABC may exercise the Conversion Right provided that Tocagen has completed an initial public offering of common stock (the ‘IPO”) with proceeds to Tocagen from such offering of not
less than
 [...***...] ($[...***...]) dollars (before underwriting, discounts and expenses). The Conversion Right may be exercised simultaneously with the closing of the IPO or anytime before the Outside Date, subject to
Tocagen’s sole determination, upon the advice of counsel, that an exemption from registration under the Securities Act of 1933 for such issuance is available. 

 

	 	(c)	Conversion Notice and Certificate Issuance. VABC may, at any time on or before the Outside Date, subject to Paragraph 5(a) and 5(b), deliver to Tocagen a written notice (the “Conversion Notice”)
notifying Tocagen that (i) VABC elects to exercise its Conversion right on a date not less than [...***...] or more than [...***...] days after the notice; or (ii) VABC elects to exercises its Conversion Right simultaneously
with an IPO (collectively the “Conversion Date”), in which event Tocagen shall cause all or a portion of the Grant Amount (subject to the partial Conversion provisions contained in subparagraph (d) below) to be converted into the
common stock of Tocagen (the “Conversion”) on the Conversion Date. The Conversion Notice shall set forth the Conversion Date, and, if the Conversion is for less than the full Grant Amount, shall set forth the portion of the Grant Amount
that will be converted into common stock. In the event the Conversion shall take place simultaneously with an IPO, the Conversion Notice need not specify an exact date for the Conversion but shall merely state that the Conversion Date will be upon
the closing date of the IPO. As promptly as practicable after the Conversion Date, Tocagen shall issue and deliver to VABC, a duly issued stock certificate for Tocagen’s common stock for the Conversion set forth in the Conversion Notice. The
Conversion shall be deemed to have been effected as of the close of business on the Conversion Date (or, in the case of a Conversion simultaneously with an IPO, upon the closing of such IPO), and VABC shall be deemed to have become the record owner
of the common stock represented thereby on such date. 

  

	 	(d)	Partial Conversion. In the event of a partial Conversion, the outstanding Grant Amount will be reduced by the portion of the Grant Amount designated by VABC as being subject to the Conversion. All remaining
amounts not converted to common stock as provided in subparagraph 5(e) below shall be subject to the provisions set forth in Paragraph 4. 

  

	 	(e)	Conversion Formula. In the event VABC exercises the Conversion Right, the Grant Amount shall, in the case of Conversion after an IPO, be converted to the common stock of Tocagen at a per share price equal to the
closing stock price for one share of Tocagen common stock on the first trading day prior to the Conversion Date, and, in the case of Conversion simultaneously with an IPO, be converted to the common stock of Tocagen at the price-per-share to the
public of Tocagen common stock in the IPO, in the event VABC exercises the Conversion Right, VABC agrees to accept the stock subject to any restrictions that are 

  
  

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3 

	 	
applicable to holders of unregistered securities of Tocagen generally, including, without limitation, restrictions on VABC’s ability to transfer or dispose of Tocagen stock pursuant to
applicable laws and regulations and the restrictions set forth on Schedule A annexed hereto. VABC agrees to execute and deliver to Tocagen any documents as may be reasonably requested by Tocagen and its counsel, in connection with the issuance of
the Tocagen common stock. 

 6. Restrictions on Grant Provisions. Tocagen agrees that it will use the Grant exclusively for the
research and development and clinical trials of the Brain Cancer Therapies. The Grant may not be used to lobby or otherwise attempt to influence legislation, to influence the outcome of any public election, or to carry on any voter registration
drive. 
 7. Brain Cancer Therapies Program Interruption. 
  

	 	(a)	Tocagen shall promptly notify VABC if Tocagen elects to discontinue, substantially scale back or suspend the Brain Cancer Therapies Program for any reason at any time during the Grant Period. 

 

	 	(b)	If during the Grant Period, Tocagen interrupts the Brain Cancer Therapies Program for a period of [...***...] or more for reasons not related to lack of
scientific merit, then Tocagen promptly shall (a) provide VABC with a summary report on work performed under this agreement and (b) return to VABC any unused Grant funds. 

8. Brain Cancer Therapies Program Updates. Tocagen will provide to VABC during the Grant Period [...***...] financial statement and such other
reports as Tocagen regularly provides to its stockholders. Reports on the Brain Cancer Therapies Program need not be separately prepared if the information distributed to stockholders as described in this Paragraph 8 provides sufficient detail of
the Brain Cancer Therapies Program during the applicable period. 
 9. Events and Activities. Should VABC request, a Tocagen representative will
participate in at least one VABC presentation annually during the Grant Period (e.g. annual meeting, scientific workshop, etc), which individual shall be designated by Tocagen and reasonably acceptable to VABC. 

10. Public Relations. The parties agree to individual party and joint party public relations during the Grant Period as follows: 

 

	 	(a)	Following execution of this agreement, VABC may issue a press release announcing the Grant, subject to Tocagen’s pre-approval; 

  

	 	(b)	VABC and Tocagen may include each other on their websites at the discretion and review of the other party; 

  

	 	(c)	Neither party may use the name or mark of the other party for business development or fundraising purposes without the advanced approval of the other party, unless otherwise required to be disclosed under law or
regulation; and 

  

	 	(d)	Tocagen has the right to publicize the Grant and VABC’s support for the Brain Cancer Therapies Program. 

  
  

***Confidential Treatment Requested 
  

4 

 11. Scientific Publications and Presentations. Tocagen will strive to publish the results of the Brain
Cancer Therapies Program related activities and research in a peer-reviewed scientific journal and present its findings at scientific conferences as soon as possible during or after the Grant Period in a manner that will advance scientific
knowledge; such publications or presentations being consistent with conservative practices of commercial pharmaceutical development entities to protect its intellectual property and market its products. Nothing in this agreement shall require
Tocagen to publish confidential business information, incomplete information, or information not regularly publically disclosed by a commercial pharmaceutical development company. 

12. Acknowledgements. Tocagen shall use reasonable efforts to make appropriate reference to VABC in all manuscripts, poster presentations, news
releases, or company publications resulting from this Grant supported research. 
 13. Other Grant Terms. In its sole discretion, VABC has the right
to terminate this agreement should Tocagen discontinue the Brain Cancer Therapies Program during the Grant Period. VABC shall provide Tocagen with 90 days notice of any decisions to terminate this agreement. 

14. General Provisions. 
  

	 	1.	Notices. Any notice under this agreement shall be in writing, and shall be delivered either (i) by hand delivery, (ii) by certified United States mail, return receipt requested, or (iii) by a
nationally recognized overnight delivery service address to the parties at the addresses set forth on the first page of this agreement or such other address as the parties request in writing. 

 

	 	2.	Successor and Assigns. All of the terms and provisions of this agreement shall bind and inure to the benefit of the respective successors, assigns, heirs, administrators, or other legal representatives of VABC
and Tocagen. 

  

	 	3.	Changes in Law. Tocagen and VABC agree to work cooperatively to provide each other with any additional information arising from a change in applicable law, regulation, or rule. 

 

	 	4.	Modifications in Writing. This agreement constitutes the entire understanding between the parties. Any modifications of this agreement must be in writing and signed by an authorized officer/executive of both
parties, which must be the Chief Executive Officer (CEO) or the Chief Financial Officer (CFO) in the case of Tocagen. 

  

	 	5.	Applicable Law. This agreement shall be construed in accordance with and governed by the laws of California. 

  

	 	6.	Entire Agreement. This agreement, together with the Consulting Agreement between the parties dated concurrently with this agreement, constitutes the entire agreement between the parties hereto. No oral
representations or other agreements have been made by the parties except as stated herein and therein. This agreement may not be changed in any way except as herein provided, and no term or provision thereof may be waived except in writing signed by
a duly authorized officer or agent, which shall be the CEO of CFO in the case of Tocagen. The titles of any paragraph of this agreement are for convenience only 

  
 5 

	 	
and shall not be deemed to limit, restrict or alter the content, meaning or effect thereof. 

IN WITNESS WHEREOF, the parties have, by duly authorized persons, executed
this agreement, as of the date first above written. 
  

									
	TOCAGEN INC.	  		  	VOICES AGAINST BRAIN CANCER
					
	By:	 	 /s/ Thomas E. Darcy
	  		  	By:	 	 /s/ Michael Klipper

	Name:	 	Thomas E. Darcy	  		  	Name:	 	Michael Klipper
	Title:	 	EVP and Chief Financial Officer	  		  	Title:	 	Chairman
	Address:	 		  		  	Address:	 	
			
	3030 Bunker Hill St., Suite 230	  		  	1375 Broadway, 3rd Floor,
	San Diego, CA 92109	  		  	New York, NY 10018
	USA	  		  	USA
	Attention: Chief Executive Officer	  		  	 Attention: Eric Lichtenstein

Email: elichtenstein@knight.com

	Facsimile: +1 858-412-8499	  		  

  
 6 

 SCHEDULE A 

MARKET STAND-OFF AGREEMENT. Stockholder shall 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, any Common Stock or other securities of Tocagen held by Stockholder, including the
Stock (the “Restricted Securities”), during the 180-day period following the effective date of a registration statement of Tocagen filed under the Securities Act of 1933, as amended (the “Lock Up Period”), or such longer period,
not to exceed 34 days after the expiration of such 180-day period, as the underwriters or Tocagen shall request in order to facilitate compliance with NASD Rule 2711. Stockholder agrees to execute and deliver such other agreements as may be
reasonably requested by Tocagen and/or the managing underwriter which are consistent with the foregoing or which are necessary to give further effect thereto. In order to enforce the foregoing covenant, Tocagen may impose stop-transfer instructions
with respect to Restricted Securities until the end of such period. The underwriters of Tocagen’s stock are intended third party beneficiaries of this Market Stand-off Agreement and shall have the right, power and authority to enforce the
provisions hereof as though they were a party hereto. For the avoidance of doubt, if Stockholder sells any securities of Tocagen either (a) on the open market after Tocagen’s initial public offering under an effective registration
statement filed under the Securities Act of 1933, as amended, or (b) pursuant to Rule 144 under such Act, then, provided such sale otherwise complies with the terms of this Market Stand-off Agreement, the securities so sold by Stockholder shall
cease to be subject to the provisions of this Market Stand-off. 

  
 7 

 SCHEDULE B 

“Change in Control” shall mean (a) a sale of all or substantially all of the assets of Tocagen; (b) a merger or consolidation in which
Tocagen is not the surviving corporation (other than a merger or consolidation in which stockholders immediately before the merger or consolidation have, immediately after the merger or consolidation, a majority of the voting power of the surviving
corporation); (c) a reverse merger in which Tocagen is the surviving corporation but the shares of Tocagen’s Common Stock outstanding immediately preceding the merger are converted by, virtue of the merger into other property, whether in
the form of securities, cash or otherwise (other than a reverse merger in which stockholders immediately before the merger have, immediately after the merger, a majority of the voting power of the surviving corporation); or (d) any transaction
or series of related transactions in which in excess of 50% of Tocagen’s voting power is transferred, other than the sale by Tocagen of stock in transactions the primary purpose of which is to raise capital for Tocagen’s
operations and activities. 

  
 8

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