Document:

Sublease Agreement

 Exhibit 10.2 

 
 

 
 SUBLEASE 
 BETWEEN 
 MASSACHUSETTS BIOMEDICAL INITIATIVES, INC. (MBI)

 AS SUB-LANDLORD 
 AND 
 RXi Pharmaceuticals, Corp. 

AS SUB-TENANT 
 AT 
 Gateway Park, 60 Prescott Street, Worcester, MA 01605 

The submission of unsigned copy of this document Sub-tenant for Sub-tenant’s consideration does not constitute an offer to lease the Premises or an
option to or for the Premises. This document shall become effective and binding only upon the execution and delivery of this Sublease by both Sub-Landlord and Sub-tenant. 
 Copyright © Massachusetts Biomedical Initiatives. All Rights Reserved 

 MBI Life Science Incubators 

Everything Needed to Grow a Life Science Business 
 Services provided include: 
  

	 	•	 	 Laboratory set-up, including chemical storage cabinets, signs, labels, emergency equipment and information 

 

	 	•	 	 Maintenance of MBI’s shared equipment 

  

	 	•	 	 Use of existing permits and compliance and permitting assistance 

 

	 	•	 	 Development and implementation of health and safety plans and employee training to comply with health and safety regulations

  

	 	•	 	 Business consulting with experienced technology managers 

 

	 	•	 	 Informatics Center and Computing Resources 

  

	 	•	 	 Access to conference rooms with A/V equipment 

 Recognizing that every company has different needs, assistance in procuring specialized equipment may also be available. 
 Costs 
  

	 	•	 	 Gross Yearly Fee 

  

	 	•	 	 Lease (% of Bldg. Use) 

  

	 	•	 	 Common Area Usage 

  

	 	•	 	 Services/Maintenance Included 

  

	 	•	 	 Utilities (shared estimate) 

  

	 	•	 	 Excludes Hazardous Waste or Material Removal 

  
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© Massachusetts Biomedical Initiatives. All Rights Reserved 

 SUB-TENANT AGREEMENT 

This Sublease agreement is made this 1st day of October, 2012 between RXi Pharmaceuticals, Corp.
(Sub-tenant) and Massachusetts Biomedical Initiatives, Inc. (Sub-Landlord), a Massachusetts Non For Profit Organization (NPO). 

MBI Incubator Facility Site: Gateway Park, 60 Prescott Street, Worcester, MA 01605 
 Sub-Landlord: Massachusetts Biomedical Initiatives Landlord: Newgate Properties, LLC 

Premises: Lab 133 and Office 111 

Base Rent: $2,100 PER MONTH 
 Security
Deposit: $2,100.00 
 Commencement Date: October 1, 2012 
 Lease Term: One (1) Year  
 Rent Adjustment Percentage: 3.5% 

Permitted Use: 
 Sub-Landlord’s Address
for Notice & Rent Payment: GATEWAY PARK, 60 PRESCOTT STREET, WORCESTER, MA 01605 
 The following Exhibits are attached
hereto and incorporated by this reference: 
 Exhibit I-Floor Plan 

Exhibit II-Shared Equipment List 
 Exhibit III-Sub-Landlord Insurance 
 Exhibit IV- Sub-tenant Insurance 

Exhibit V- Health & Safety Requirements 
 Exhibit VI- Laboratory/Office Electrical Power Usage 
 Exhibit VII- Environmental
Requirements 
 Exhibit VIII- Indemnification 

  
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 TABLE OF CONTENTS 

 

													
	 	 	 	 	 	 	 	  	Page	 
	1.	 	Premises	  	 	5	  
		 	1.1	 	Premises and Building (Exhibit I Floor Plan)	  	 	5	  
			
	2.	 	Appurtenant Premises and Areas (Exhibit II: Lab/Office/Shared Equipment/ List)	  	 	5	  
			
	3.	 	Terms	  	 	5	  
			
	4.	 	Option Terms	  	 	5	  
		 	4.1	 	Options and Exercise	  	 	5	  
		 	4.2	 	Continuing Agreement	  	 	5	  
			
	5.	 	Rent	  	 	5	  
			
	6.	 	Services and Utilities	  	 	6	  
		 	6.1	 	Benefits of Lease	  	 	6	  
		 	6.2	 	Landlord and Sub-Landlord Obligations	  	 	6	  
		 		 		 	a.	 	Common Area Maintenance	  	 	6	  
		 		 		 	b.	 	Building Maintenance	  	 	6	  
		 		 		 	c.	 	Water	  	 	6	  
		 		 		 	d.	 	Insurance(Exhibits III & IV)	  	 	6	  
		 		 		 	e.	 	Other Building Services	  	 	6	  
		 		 		 	f.	 	Health & Safety Services(Exhibit V Memorandum of Understanding)	  	 	6	  
		 		 		 	g.	 	Covenant of Quiet Enjoyment	  	 	6	  
		 	6.3	 	Sub-tenants Obligations	  			
		 		 		 	a.	 	Telecommunications	  	 	6	  
		 		 		 	b.	 	Postage	  	 	6	  
		 		 		 	c.	 	Third Party Services	  	 	6	  
		 		 		 	d.	 	Covenant to Pay Rent	  	 	6	  
			
	7.	 	Use and Condition of Premises	  	 	7	  
		 	7.1	 	Sub-tenant’s Use	  	 	7	  
		 	7.2	 	Attachment to Walls Prohibited	  	 	7	  
		 	7.3	 	Laboratory/Office Electrical Power Usage (Exhibit VI)	  	 	7	  
		 	7.4	 	Laboratory Equipment	  	 	7	  
			
	8.	 	Compliance with Laws (Exhibit VII Environment Requirements)	  			
			
	9.	 	Sub-tenant’s Risk: Insurance	  	 	7	  
		 	9.1	 	Sub-tenant’s Risk	  	 	7	  
		 	9.2	 	Waiver of Subrogation (Exhibit VIII Indemnification)	  	 	7	  
			
	10.	 	Further Covenants of Sub-tenant	  	 	8	  
		 	10.1	 	Alterations and Improvements	  	 	8	  
		 	10.2	 	Assignment	  	 	8	  
		 	10.3	 	Signs	  	 	8	  
			
	11.	 	Destruction of Premises	  	 	8	  
			
	12.	 	Condemnation	  	 	8	  
			
	13.	 	Default	  	 	8	  
		 	13.1	 	Default of Rent Payment	  	 	8	  
		 	13.2	 	Other Defaults	  	 	8	  

  
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		 	13.3	 	Sub-tenant’s Insolvency	  	8  
		 	13.4	 	Sub-Landlord’s Remedies	  	9  
			
	14.	 	Security	  	9  
			
	15.	 	Sublease Subject to Lease Covenants	  	9  
		 	15.1	 	Landlord Lease	  	9  
		 	15.2	 	Landlord Obligations	  	9  
		 	15.3	 	Sub-tenant Obligations	  	9  
		 	15.4	 	Lease Termination	  	9  
			
	16.	 	Benefits of Lease to Sub-tenant	  	9/10  
			
	17.	 	Landlord’s Performance of Lease Obligations	  	10  
		 	17.1	 	Sub-Landlord to Preserve Lease	  	10  
		 	17.2	 	Sub-tenant’s Right to Cure Lease	  	10  
			
	18.	 	Notice	  	10  
			
	19.	 	Modification: Severability: Construction	  	10  

  
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© Massachusetts Biomedical Initiatives. All Rights Reserved 

 SUBLEASE 

This Sublease made as of the 1st day of October, 2012, between MASSACHUSETTS BIOMEDICAL INITIATIVES, INC., a Massachusetts not for profit organization having a usual place of business headquartered at GATEWAY PARK, 60 PRESCOTT STREET, WORCESTER, MA 01605, hereinafter called the
“Sub-Landlord” and RXi Pharmaceuticals, Corp. hereinafter called the “Sub-tenant”. 
 WITNESSETH: 

1. Premises. 
 1.1 Premises and Building. The Sub-Landlord leases to the Sub-tenant the following described premises: Lab 133 and Office 111 (such space with the additions described below hereinafter known
as the “Premises”) in the building (the “Building”) at Gateway Park, 60 Prescott Street, Worcester, MA 01605 (Exhibit I). 
 2. Additional Premises and Areas. 
 (a) Sub-tenant, its employees and
invitees shall have, in addition to the Premises, the use of the common entrances, halls, passages and stairways; common driveways and walks. Common areas shall also include the shared equipment rooms and receiving room that are common to all
occupants of the Building, as well as the conference room, rest rooms, reception and all of the equipment associated with such areas. 
 (b) Also in addition to the Premises Sub-tenant shall have the right to use shared laboratory equipment as provided from time to time by Sub-Landlord (Exhibit II). 

(c) Sub-tenant shall have the use of parking spaces, if applicable, in the parking facility as provided in Sub-Landlord’s separate
agreement with Landlord. 
 3. Term. The term of this Sublease shall be for One (1) Year commencing on
October 1, 2012 (the “Commencement Date”) and terminating on September 30, 2013. 
 4.
Option Terms. 
 4.1 Options and Exercise. Provided Sub-tenant shall not be in default hereunder, Sub-tenant
shall have, with Sub-Landlord’s agreement, the option to extend on a month to month basis and a continued 60 Day Termination Notice Requirement. Sub-tenant may exercise said option by giving Sub-Landlord written notice not less than sixty
(60) days prior to the termination date of the original term. The Rent during each year of the Option Term shall be as determined under Section 5. 
 4.2 Continuing Agreement. Except for the provisions of this Section 4 granting options, all other terms of this Sublease shall apply to the Option Term and no further document need be executed
to evidence the applicability of each of the other terms of this sub-lease. 
 5. Rent. Sub-tenant shall pay the
Sub-Landlord Base Rent totaling $25,200.00 per year in advance monthly installments of $2,100.00 (“Monthly Rent”), prorated for any partial month in which the term commences or ends. The Rent for each Option Term shall be the
sum of the Rent during the prior term (initial or option) of the sub-lease plus 3.5%. The first month rent is due upon execution of this lease agreement. 

  
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 6. Services and Utilities. 
 6.1 Benefits of Lease. Sub-tenant shall be entitled to all services and utilities to be provided by the Landlord to Sub-Landlord under the Lease. 

6.2 Landlord and Sub-Landlord Obligations. The cost of the following Landlord’s and/or Sub-Landlord’s Obligations,
whether performed directly by Sub-Landlord or obtained by Sub-Landlord under the Lease, shall be included in the Rent and without any extra charge to Sub-tenant. 
 (a) Common Area Maintenance. Landlord and/or Sub-Landlord shall maintain all common areas serving the Premises and the Building in good condition and repair, reasonably free of snow and ice and
other hazards. 
 (b) Building Maintenance. Landlord shall be responsible to maintain and repair the structure of the
Building, including the roof, foundation and mechanical, electrical and plumbing systems serving the Building and the Premises. 
 (c) Water. The Landlord shall furnish to the Premises, for Sub-tenant’s Use, hot and cold water. 
 (d) Insurance. Sub-Landlord shall provide insurance as specified in Exhibit III. The Sub-tenant is required to provide a policy with minimum limits of Commercial General Liability Insurance for the
Sub-tenant’s premises/operations, Exhibit IV. 
 (e) Other Building Services. The Landlord and/or Sub-Landlord
shall furnish basic building services, including office cleaning, perimeter security, adequate heating, ventilation and air conditioning, and electricity and other utilities (except as specifically provided by Sub-tenant below). 

(f) Health and Safety Services. Sub-Landlord provides basic health and safety support as a condition of occupancy. Sub-tenant is
required to comply with the requirements specified in the Memorandum of Understanding (Exhibit V). 
 (g) Covenant of Quiet
Enjoyment. Landlord and Sub-Landlord covenants that Sub-tenant, upon payment of the rent herein reserved and upon the performance of all the terms and conditions of this Sub-lease, shall at all times during the Sub-Lease term peaceably enjoy the
Premises without interference from the Sub-Landlord or from any other person. 
 6.3 Sub-tenant’s Obligations.

 (a) Telephone. Sub-Landlord shall ensure each lab and/or office has been hard wired for telephone and Internet use.
Activation of said lines/service is the responsibility of the Sub-tenant. Installation of an additional telephone lines and/or equipment, for the subtenant’s needs is the responsibility of the Sub-tenant with approval of Sub-Landlord.

 (b) Postage. Postage and delivery services are the responsibility of each Sub-tenant to establish their own account.

 (c) Third Party Services. Any other services not provided by MBI under this Sublease or by unrelated third parties on
Sub-Landlord’s account will be charged to Sub-tenant as and when incurred. Sub-tenant shall also pay Sub-Landlord the direct cost of any disposal, re-certification and decontamination of Sub-tenant’s laboratory, including chemicals,
radioactive materials and infectious materials. 
 (d) Covenant to Pay Rent. The Sub-tenant covenants that it will pay
the Rent at the times and in the manner provided herein without delay. 
  

  
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 7. Use and Condition of Premises. 

7.1 Sub-tenant’s Use. The Sub-tenant shall use and occupy the Premises throughout the term, solely for the purpose of
laboratory research and development (“Sub-tenant’s Use”), including all of the services and functions ordinarily incident thereto. 
 7.2 Attachment to Walls Prohibited. The hanging of pictures, posters, white boards, etc. with nails or hooks is prohibited unless authorized by MBI personnel. If any damage is incurred due to
unauthorized hanging of the above mentioned items, damage will be assessed and repair cost will be the responsibility of the Sub-tenant. 
 7.3 Laboratory/Office Electrical Power Usage/Surcharges. Sub-tenant shall comply with the power usage rules and regulations attached as Exhibit VI. 

7.4 Laboratory Equipment. 
 (a) Factors such as laboratory size, electrical capacity, or HVAC capacity will limit the amount of equipment which can be stored in each laboratory. Sub-Landlord along with Sub-tenant will determine the
amount of equipment that can be stored in each laboratory upon initial occupancy. All additional equipment must be approved by Sub-Landlord staff, which approval will not be unreasonably withheld, conditioned or delayed. Sub-Landlord will not be
held responsible for unapproved equipment that exceeds a laboratory’s capacity or HVAC capabilities. 
 (b) Most
laboratories are equipped with Biosafety Cabinets and/or Chemical Fume Hoods for tenant exclusive. Such equipment will be certified and decontaminated prior to occupancy. On an annual basis, MBI will coordinate re-certification of each piece of
equipment and the tenant will be responsible for costs associated with this annual re-certification while occupying the space. Upon vacancy of the laboratory, tenant will also be responsible for the re-certification and decontamination fees.

 8. Compliance with Laws. The Sub-tenant shall conduct its business on the Premises in a reasonable and satisfactory
manner. The Sub-tenant shall further conform to reasonable rules and regulations now or hereafter established by the Sub-Landlord for the general comfort and convenience of all tenants in the Building. The Sub-tenant, at its sole expense, shall
obtain all licenses or permits which may be required for the conduct of its business within the terms of this Sublease. Any special and/or additional permit requirements that are a direct result of Sub-tenant’s operations will be the
responsibility of the Sub-tenant with the assistance of Sub-Landlord Health & Safety personnel (Exhibit VII). 
 9.
Sub-tenant’s Risk; Insurance. 
 9.1 Sub-tenant’s Risk. It is expressly agreed by the parties that all
merchandise and property of any kind which may be on the Premises during the continuance of this Sublease is to be at the sole risk and hazard of the Sub-tenant. Sub-tenant acknowledges that Sub-Landlord recommends that Sub-tenant carry its own
property insurance, including endorsements for “special causes of loss.” 
 9.2 Waiver of Subrogation.
Sub-tenant and Sub-Landlord hereby waive any and all rights of recovery which each might otherwise have against the other, its agents, employees and other persons for whom the waiving party may be responsible for any loss or damage to
Sub-tenant’s or Sub-Landlord’s property (real or intellectual) or improvements in the Premises which are covered by any policy of insurance maintained or required to be maintained by the waiving party (or, if the waiving party does not
maintain insurance and is not required to maintain insurance, then from casualties covered by fire and broad form extended coverage, including vandalism and malicious mischief) even though the loss or damage results from the negligence, willful act
or default under the terms of this Sublease by a party, its agents, employees, contractors, or other persons for whom such party may be responsible. Each policy of insurance maintained by Sub-tenant or Sub-Landlord with respect to the Premises or
with respect to each party’s property or improvements therein shall include provisions by which the insurance carrier(s) (a) waive(s) all rights of subrogation against the other party (and against all those for whom the other party may be
legally responsible) on account of any loss payable under the policy and (b) agree(s) that the policy will not be invalidated because the insured (in writing and prior to the occurrence of any loss under the policy) has waived part or all of
its right(s) of recovery against any party on account of any loss or damage covered by the policy. If Sub-tenant or Sub-Landlord is unable to procure the inclusion of either of the clauses described in the next preceding sentence, such party shall
name the other as an additional insured in the policy (Exhibit VIII). 

  
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 10. Further Covenants of Sub-tenant. 

10.1 Alterations and Improvements. Sub-tenant agrees not to make any alterations or improvements to the Premises without first
obtaining the written consent of the Sub-Landlord. 
 10.2 Assignment. The Sub-tenant shall not assign this Sublease, or
further sublet, or part with the possession of the whole or part of the Premises without first obtaining the written consent of the Sub-Landlord. 
 10.3 Signs. Sub-tenant shall not place any signs upon the Building of which the Premises are a part without prior written approval of Sub-Landlord and Over-Landlord. 

11. Destruction of Premises. Should the Premises be damaged or destroyed by fire or other casualty, and said Premises cannot be
repaired within ninety (90) days, then the Sub-tenant may by written notice to the Sub-Landlord given within said ninety (90) days elect to terminate this Sublease. In any event, Sub-Landlord or Landlord may at its option notify Sub-tenant
of the termination of this Sublease in the event of total destruction of the Premises, the inability of Landlord to repair within said ninety (90) days, or in the event the Sub-Landlord or Landlord reasonably determines that repair of the
Premises is not economically feasible. If the Premises are untenantable there shall be an abatement of rent proportionate to the time during which the Premises are untenantable and to the area which is not occupied by the Sub-tenant for such period.

 12. Condemnation. If the whole of the Premises, or such portion thereof as will make the Premises unsuitable for the
purposes herein leased, is condemned for any public use or purpose, then in either of such events this Sublease shall cease from the time when possession is taken by such public authority and rent shall be accounted for between the Sub-Landlord and
the Sub-tenant as of the date of the surrender of possession. No part of any award shall belong to the Sub-tenant except for any relocation expenses separately awarded to Sub-tenant. 

13. Default. 
 13.1 Default of Rent Payment. Upon failure of Sub-tenant to pay rent or additional rent within ten (10) days after its due date, Sub-Landlord will give Sub-tenant written notice of default.
Thereafter, upon failure of Sub-tenant to pay such rent within ten (10) days after the due date, Sub-Landlord may terminate the Lease and exercise its remedies under Section 13.4. 

13.2 Other Defaults. If there shall be default in the performance of any other covenant, agreement, condition, rule, or
regulation herein contained on the part of the Sub-tenant for more than thirty (30) days (or such longer time as is reasonably necessary to cure such default, provided Sub-tenant commences curing within thirty (30) days after notice) after
written notice of such default by the Sub-Landlord, this Lease, if the Sub-Landlord so elects by notice to the Sub-tenant, shall thereupon be terminated. 
 13.3 Sub-tenant’s Insolvency. It is hereby covenanted and agreed that this Lease and all the rights of the Sub-tenant hereunder shall, at the option of the Sub-Landlord, cease and terminate
upon said Sub-tenant filing a voluntary or involuntary petition in bankruptcy, or said Sub-tenant being adjudged bankrupt by any court, or taking advantage of any insolvency act, or upon the Sub-tenant making any assignment for the benefit of
creditors, or upon the appointment of a state court receiver or trustee; and, in any such event, the Sub-Landlord shall have a right to enter the Premises and eject the Sub-tenant or anyone acting for said Sub-tenant without being responsible for
any damages either in tort, contract, or otherwise, to the Sub-tenant or anyone acting for the Sub-tenant; provided, however, that Sub-Landlord’s rights or options under this paragraph shall not arise with respect to any involuntary proceeding
unless the same shall not have been dismissed or terminated within ninety (90) days of its commencement. 
 13.4
Sub-Landlord’s Remedies. Upon termination of this Lease, the Sub-Landlord shall have the right to reenter or repossess the Premises, either by summary process, proceedings, surrender, or otherwise, and dispossess and remove therefrom the
Sub-tenant, or other occupants thereof. In such case, the Sub-Landlord may, at its option, relent the Premises or any part thereof, and the Sub-tenant shall pay the Sub-Landlord the 

  
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difference between the rent hereby reserved and agreed to be paid by the Sub-tenant for the portion of the term remaining at the time of reentry or repossession and the amount, if any, received
or to be received under such relating for such portion of the term less all costs incurred by Sub-Landlord for such relating. Any and all remedies or proceedings are considered cumulative and not exclusive. 

14. Security. As security for the performance of the Sub-tenant’s covenants herein, the Sub-tenant shall pay to the
Sub-Landlord upon the execution of this Lease the sum of $2,100.00 which amount shall be held by the Sub-Landlord according to law and shall be paid back to the Sub-tenant without interest thirty (30) days after the Sub-tenant vacates
the Premises, less any amounts owed to the Sub-Landlord by the Sub-tenant. Sub-Landlord personnel will assess the condition of the space upon Sub-tenant’s vacating leased space. If any damage has been incurred above and beyond normal wear and
tear, repair costs will be deducted from the security deposit. This includes standard laboratory decontaminating of chemical hazards, biological hazards, and biosafety cabinet if present. 

15. Sublease Subject to Lease Covenants. 
 15.1 In addition to the terms, conditions and provisions of this Sublease, Sub-tenant acknowledges and agrees that this Sublease is subject to each and every term, condition, and provision of the Lease
and of the rights of Landlord thereunder. 
 15.2 It is understood and agreed (i) that Sub-Landlord, except as otherwise
provided herein, shall not be liable for the performance of any of the obligations of the Landlord under the Lease; (ii) that Sub-tenant shall have no claim against Sub-Landlord by reason of any default in fulfilling such obligations upon the
part of the Landlord unless such default results from Sub-Landlord’s being in default under the Lease and not due to a default of Sub-tenant hereunder, or from Sub-Landlord’s willful misconduct; (iii) that Sub-Landlord further agrees
to send any notices reasonably requested by the Sub-tenant to the Landlord pursuant to the terms of the Lease, provided said notices are received from Sub-tenant in writing and within reasonable time to allow Sub-Landlord to satisfy the time
requirements for sending such notice under the terms of the Lease. 
 15.3 Sub-tenant will fully and faithfully perform the
terms and conditions of the Sublease on its part to be performed, and in addition thereto, Sub-tenant will not do or cause to be done or suffer or permit any act or thing to be done which would or might cause the Sublease or the rights of
Sub-Landlord as Tenant under the Lease to be endangered, cancelled, terminated, forfeited, or surrendered, or which would or might make Sub-Landlord liable for any damages, claim or penalty, and, in such event, Sub-tenant agrees, as an express
inducement for Sub-Landlord entering into this Sublease, that if there is any conflict between the provisions of this Sublease and the provisions of the Lease which would permit Sub-tenant to do or cause to be done or suffer or permit any act or
thing to be done which is prohibited by the Lease, then the provisions of the Lease shall prevail. Sub-Landlord hereby represents that the entrance into and performance of this Sublease is permitted under the Lease. 

15.4 If the Lease is terminated, the Sublease shall terminate simultaneously, and any unearned rent paid, in advance, shall be refunded
to the Sub-tenant, provided that such termination is not the result of a breach of the Sub-tenant of the Sublease. Upon default of the Sub-Landlord under the Lease which has not been cured within applicable grace periods and receipt of notice from
the Over-Landlord, the Sub-tenant shall forward payments of rent and all other charges due under the Sublease directly to the Over-Landlord. 
 16. Benefits of Lease to Sub-tenant. The Sub-tenant shall be entitled to the furnishing of services and performance of repairs which Landlord is and may be obligated to furnish or make to or in the
Premises pursuant to the terms of the Lease. Sub-tenant’s obligations hereunder shall not be impaired nor shall the performance thereof be excused because of any failure or delay on Landlord’s part in furnishing such services or in
performing such repairs or restorations, unless such failure or delay results from Sub-Landlord being in default under the Lease. 

  
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 17. Landlord’s Performance of Lease Obligations. 

17.1 Sub-Landlord to Preserve Lease. Sub-Landlord agrees that during the term of this Sublease, Sub-Landlord will perform the
terms and conditions of the Lease on its part to be performed, except as otherwise provided herein, and Sub-Landlord will not cause the Lease to be canceled, terminated, forfeited or surrendered as a result of any action or inaction by Sub-Landlord
with respect to an obligation of Sub-Landlord under the Lease over which Sub-Landlord has control and which has not been assumed by Sub-tenant pursuant to this Sublease. Sub-Landlord shall have no liability or responsibility to Sub-tenant as a
result of a termination of the Lease unless such termination results from any action or inaction by Sub-Landlord with respect to an obligation of Sub-Landlord under the Lease over which Sub-Landlord control has and which has not been assumed by
Sub-tenant pursuant to this Sublease. 
 17.2 Sub-tenant’s Right to Cure Lease. Sub-Landlord agrees that, if
Sub-Landlord shall be in default of any of the affirmative obligations to be paid or performed by Sub-Landlord as tenant under the Lease and if Sub-Landlord shall fail to commence to correct such default within the cure period provided for in the
Lease and shall not be diligently pursuing such correction to completion, then Sub-tenant may correct such default for the account of Sub-Landlord, and Sub-Landlord shall reimburse Sub-tenant for any amounts reasonably expended or incurred by Tenant
in so doing. 
 18. Notice. Except as specifically provided otherwise, any notice required to be given to Sub-tenant
shall be deemed given if delivered by hand or mailed by certified or registered mail Any notice to Sub-Landlord shall be so delivered or mailed to Sub-Landlord at 60 Prescott Street, Worcester, Massachusetts 01605. Either party may designate by
notice in writing a different such address for notice. 
 19. Modification; Severability; Construction. This Sublease
contains the entire agreement between the parties and shall not be modified in any manner except by an instrument in writing executed by the parties. If any term or provision of this Sublease or the application thereof to any person or circumstance
shall, to the extent, be invalid or unenforceable, the remainder of this Sublease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected
thereby and each term and provision of this Sublease shall be valid and be enforced to the fullest extent permitted by law. This Sublease shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns. This Sublease is not to be construed against any of the parties as having been prepared by such party. The captions to the paragraphs are used only as a matter of convenience and are not to be considered a part of this agreement or to be
used in determining the intent of the parties to it. This Sublease shall not be recorded. 
 IN WITNESS WHEREOF, the parties
have caused these presents to be signed, sealed and delivered as of the date first written above. 
  

											
	Sub-Landlord:	 		 		 	    Sub-Tenant:
	Massachusetts Biomedical Initiatives, Inc.	 		 		 	    RXi Pharmaceuticals, Corp.
					
	By:	 	 /s/ Kevin O’Sullivan
	 		 	By:	 	 /s/ Geert Cauwenbergh

		 	Kevin O’Sullivan, President & CEO	 		 		 	Geert Cauwenbergh, President & CEO
						
	DATE:	 	 6/28/2012
	 		 		 	    DATE:	 	 6/27/2012

  
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 Exhibit I 

Floor Plan 
  

 

  
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 Exhibit II 

Shared Equipment Available for Use by All Tenant Companies 

DI Water 

Autoclave 

Glasswasher 
 Ice
Machine 
 Cold Room 
 -80 Freezers 
 Refrigerators/Freezers 

Centrifuge 

Lab Equipment Provided by MBI 
 Fume Hood 

  
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 Exhibit III 

Sub-Landlord Insurance 

  
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 Exhibit IV 

Subtenant Insurance Coverage 
 Gateway Park 
 60 Prescott Street 

Worcester, MA 01605 
 It is the
established risk management policy of Massachusetts Biomedical Initiatives (MBI) to require our Subtenants to carry minimum limits of Commercial General Liability Insurance for the Subtenant’s premises/operations. The Subtenant’s insurance
coverage should be endorsed to include the Sublandlord as “additional insured” in order to offer the Sublandlord protection on a primary basis arising from Subtenant’s premises/operations within the demised premises. 

MBI requires an Innovation Center tenant/company to carry the following minimum insurance coverage during their term within a MBI Innovation Center
facility. 
  

	Article I.	Commercial General Liability 

 Limits to
$1,000,000 each occurrence/$3,000,000 aggregate for Bodily Injury and Property damage combined. 
  

	Article II.	Workers Compensation-Employer’s Liability 

 Benefits in accordance with Massachusetts Statute. Employer’s Liability with limits of at least $100,000 each account; $500,000 Disease-policy limits; $100,000 Disease each employee. 

Subtenants should also carry property insurance for their own benefit covering their own Business Personal Property for damage caused by “special
causes of loss.” 
 Each Subtenant is required to provide certificates of Insurance evidencing Commercial General Liability and
Worker’s Compensation annually to MBI. 
  

	Article III.	Property Insurance 

 Subtenants will carry
property insurance for their own benefit insuring their own Business Personal Property for damage caused by “special causes of loss.” Such insurance should be in an amount equal to the replacement cost of Subtenants Business Personal
Property. 

  
 Copyright
© Massachusetts Biomedical Initiatives. All Rights Reserved 

 Exhibit V 

Health & Safety Requirements 
 It is the policy of MBI to provide employees of subtenant companies with a safe and healthy working environment. A comprehensive health and safety program is established at each Subtenant company. These
programs are established by Subtenant company personnel and MBI occupational health and safety staff. They include policies and procedures required by the Subtenant company, MBI, and regulatory agencies. 

The Occupational Health and Safety Administration (OSHA) requires employers to be responsible for the health and safety of their employees. Therefore,
each company must maintain this responsibility for their employees. MBI cannot be fully responsible for satisfying that role. MBI enables each Subtenant company to meet minimum requirements by providing: 

 

	•	 	 Training and education 

  

	•	 	 Technical assistance 

  

	•	 	 Properly equipped and maintained laboratories 

  

	•	 	 Assistance in obtaining licenses and permits 

  

	•	 	 Occupational health clinics for employee medical service resources 

 

	•	 	 Chemical and infectious waste disposal resources 

  

	•	 	 Equipment maintenance service resources 

  

	•	 	 Hazardous materials shipping resources 

 To provide a safe working environment for all individuals in the MBI facilities, the following are required of tenant companies: 
 Prior to using chemicals and/or infectious materials in the laboratory: 
  

	•	 	 A Health and Safety Manual must be adopted and implemented. A template MBI Health & Safety manual is provided to each tenant company.

  

	•	 	 Each Subtenant company must designate an employee or employees to develop and implement their health and safety program, with assistance provided by
MBI occupational health and safety staff. One or more individuals must serve as a Chemical Hygiene Officer, a Biological Safety Officer (if infectious materials are used), and a Radiation Safety Officer (if radioactive materials are used). These
individuals work with MBI occupational health and safety staff to ensure that policies and procedures are implemented by employees of the Subtenant company. 

 

	•	 	 New employees must receive basic training on their first day of employment. Non-laboratory employees receive training regarding the Emergency
Evacuation Plan for the facility. Laboratory employees also receive chemical safety, biosafety, and radiation safety training, depending on their use of chemicals, infectious materials, and radioactive materials in the lab. MBI periodically offers
training designed to meet these needs. 

  

	•	 	 New employees who will be working with blood or other infectious materials must be offered the hepatitis B vaccination series within 10 working days of
initial assignment to work involving these materials, unless the employee has had previous HBV vaccination, the antibody testing has revealed that the employee is immune, or the vaccine is contraindicated for medical reasons. Healthcare
professionals recommend that employees receive the second shot in the three vaccination series before working with infectious materials. MBI has arrangements with an occupational health clinic for this service. 

 

	•	 	 A Respirator Qualification Exam must be provided for all employees who will be expected to clean up spills involving chemicals and infectious
materials. A healthcare provider must determine if employees are medically able to wear the respirators provided at MBI. Once the employee is found to be able to wear a respirator, MBI Health & Safety staff will fit-test the employee to
determine the appropriate respirator size. MBI Health & Safety staff assists in coordinating medical exams, training and fit tests. 

  
 Copyright
© Massachusetts Biomedical Initiatives. All Rights Reserved 

 While the Subtenant company is in the MBI facility: 

 

	•	 	 Policies and procedures outlined in the MBI Health and Safety Manual must be followed. 

 

	•	 	 MBI occupational health and safety staff must be informed of all health and safety issues. 

 

	•	 	 All tenant company lab and support personnel including temporary workers must meet the minimum training medical surveillance and other requirements in
the MBI Health & Safety manual. 

 MBI shall not be held liable for any injuries, claims, losses, expenses or damages
whatsoever arising out of or in any way related to any Subtenant company’s failure to oversee the health and safety of its employees or to adhere to its health and safety program. In addition, MBI shall not be held liable for any injuries,
claims, losses, expenses or damages whatsoever arising out of or in any way related to the failure of any Subtenant company’s employee to comply with the health and safety training provided by MBI personnel or any other party. It is understood
by all Subtenant companies that any injuries, claims, losses, expenses or damages whatsoever incurred by employees of the Subtenant companies will be the sole responsibility of the Subtenant company and not that of MBI. It is further agreed and
understood that in providing the foregoing services to Subtenant companies, MBI is acting solely as an independent contractor of the Subtenant companies and not as their agents. In no way shall MBI’s provision of services to Subtenant companies
be construed to establish any partnership, joint venture, or principal-agent relationships between MBI and any Subtenant company. 
 The
Subtenant Company accepts the above terms and agrees to follow these policies while in the MBI facility. 
  

					
	/s/	 	Geert Cauwenbergh	 	        June 27, 2012
		 	  

	Geert Cauwenbergh, President & CEO	 	        Date

  
 Copyright
© Massachusetts Biomedical Initiatives. All Rights Reserved 

 EXHIBIT VI 

Laboratory/Office Electrical Power Usage 
  

	1.	Please note that all MBI Incubator Center Laboratories are equipped with adequate power for general incubator lab consumption and use. 

 

	2.	Backup power is available at the Gateway Park and Biotech Three facilities. 

 

	3.	All Subtenant companies are required to provide MBI Health & Safety & Operations personnel a specific equipment list in order to gauge electric draw
and wattage. 

  

	4.	Any modifications or changes in equipment use during tenancy must be reported and approved by MBI. 

 

	5.	Subtenant is responsible for charges incurred for labor and materials and for any additional electrical requests such as but not limited to power outlets, breakers,
sensor equipment etc. 

  

	6.	All MBI Incubator Center offices are equipped with standard outlets. 

  

	7.	MBI’s licensed electrician must perform any additional electrical work needed. 

 

	8.	Any additional equipment beyond the standard may affect the climate control. MBI will not assume responsibility for excessive heat-repercussions due to additional
equipment. 

  

	9.	If a portable air conditioner is required as a result of additional equipment installed beyond the standard equipment, there may be a charge to Subtenant based on
usage. 

  

	10.	All portable space heater or air conditioning unit usage must be approved by MBI health & safety personnel. 

 

	11.	Given the rise in energy costs, we may find it necessary to ask our tenants to share in a reasonable increase of energy expenses. Thus, the subtenant will pay a share
of these increases based upon the portion of the facility that each tenant leases. The portion for RXi Pharmaceuticals, Corp is 9% of the total MBI space at the Gateway Park, 60 Prescott Street, Worcester, MA facility. 

  
 Copyright
© Massachusetts Biomedical Initiatives. All Rights Reserved 

 EXHIBIT VII 

Environmental Requirements 

Prohibition/Compliance: Sub-tenant shall not cause or permit any Hazardous Materials (as hereinafter defined) to be brought upon, kept, used, stored,
handled, treated, generated in or about, or released or disposed of from, the Premises or the Project in violation of applicable Environmental Requirements (as hereinafter defined) by Sub-tenant or any Sub-tenant Party. If Sub-tenant breaches the
obligation stated in the preceding sentence, or if the presence of Hazardous Materials in the Premises during the Term or any holding over results in contamination of the Premises, the Project or any adjacent property or if contamination of the
Premises, the Project or any adjacent property by Hazardous Materials brought into, kept, used, stored, handled, treated, generated in or about, or released or disposed of from, the Premises by anyone other than Sub-landlord and Sub-landlord’s
employees, agents and contractors otherwise occurs during the Term or any holding over, Sub-tenant hereby indemnifies and shall defend and hold Sub-landlord, its officers, directors, employees, agents and contractors harmless from any and all
actions (including, without limitation, remedial or enforcement actions of any kind, administrative or judicial proceedings, and orders or judgments arising out of or resulting therefrom), costs, claims, damages (including, without limitation,
punitive damages and damages based upon diminution in value of the Premises or the Project, or the loss of, or restriction on, use of the Premises or any portion of the Project), expenses (including, without limitation, attorneys’,
consultants’ and experts’ fees, court costs and amounts paid in settlement of any claims or actions), fines, forfeitures or other civil, administrative or criminal penalties, injunctive or other relief (whether or not based upon personal
injury, property damage, or contamination of, or adverse effects upon, the environment, water table or natural resources), liabilities or losses (collectively, “Environmental Claims”) which arise during or after the Term as a result of
such contamination. This indemnification of Sub-landlord by Sub-tenant includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, treatment, remedial, removal, or restoration work required by
any federal, state or local Governmental Authority because of Hazardous Materials present in the air, soil or ground water above, on, or under the Premises. Without limiting the foregoing, if the presence of any Hazardous Materials on the Premises,
the Project or any adjacent property caused or permitted by Sub-tenant or any Sub-tenant party results in any contamination of the Premises, the Project or any adjacent property, Sub-tenant shall promptly take all actions at its sole expense and in
accordance with applicable Environmental Requirements as are necessary to return the Premises the Project or any adjacent property to the condition existing prior to the time of such contamination provided that Sub-landlord’s approval of such
action shall first be obtained, which approval shall not unreasonably be withheld so long as such actions would not potentially have any material adverse long-term or short-term effect on the Premises or the Project. 

  
 Copyright
© Massachusetts Biomedical Initiatives. All Rights Reserved 

 EXHIBIT VIII 

Indemnification 

Sub-tenant hereby indemnifies and agrees to defend, save and hold Sub-landlord harmless from an against any and all Claims for injury or death to persons
or damage to property occurring within or about the Premises, arising directly or indirectly our of Sub-tenant’s use or occupancy of the Premises or a breach or default of Sub-tenant in the performance of any of its obligations hereunder,
unless caused by the willful misconduct or negligence of Sub-landlord. Sub-landlord shall not be liable to Sub-tenant for, and Sub-tenant assumes all risk of damage to, personal property (including, without limitations, loss of records kept within
the Premises). Tenant further hereby irrevocably waives any and all Claims for injury to Sub-tenant’s business or loss of income relating to any such damage or destruction of personal property (including, without limitation, any loss of
records), unless caused by the willful misconduct or negligence or Sub-Sub-landlord. Sub-Sub-landlord shall not be liable for any damages arising from any act, omission or neglect of any Sub-tenant in the Project or of any other third party.

  
 Copyright
© Massachusetts Biomedical Initiatives. All Rights Reserved2004 Equity Incentive Plan

 Exhibit 10.2 
 DCS HOLDINGS, INC. 
 2004 EQUITY INCENTIVE PLAN 

Adopted January 8, 2004 
 Approved By Stockholders January 8, 2004 
 Termination Date: January
         2014 
  

	1.	 PURPOSES. 

 (a)    Eligible Stock Award Recipients.  The persons eligible to receive Stock Awards are the Employees, Directors and Consultants of the Company and its
Affiliates. 
 (b)    Available Stock Awards.  The purpose of the
Plan is to provide a means by which eligible recipients of Stock Awards may be given an opportunity to benefit from increases in value of the Common Stock through the granting of the following Stock Awards: (i) Incentive Stock Options,
(ii) Nonstatutory Stock Options, (iii) stock bonuses and (iv) rights to acquire restricted stock. 
 (c)    General Purpose.  The Company, by means of the Plan, seeks to retain the services of the group of persons eligible to receive Stock Awards, to secure and
retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Affiliates. 
  

	2.	 DEFINITIONS. 

 (a)    “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether now or hereafter existing, as those terms are defined
in Sections 424(e) and (f), respectively, of the Code. 

(b)    “Board” means the Board of Directors of the Company.

 (c)    “Cause” means any one of the following as
determined by the Board in good faith: (i) the intentional misconduct of an Employee of the Company which results or may result in material harm to the Company or its employees, Directors, Consultants, property or business; or (ii) the
failure or refusal of an Employee to perform the duties of the Employee reasonably assigned to such Employee by the Chief Executive Officer of the Company after the Employee has been provided thirty (30) days written notice by the Board of such
failure or refusal and the intention of the Board to terminate the employment of the Employee as a result thereof. 
 (d)    “Code” means the Internal Revenue Code of 1986, as amended. 

(e)    “Common Stock” means the common stock of the Company.

 (f)    “Company” means DCS Holdings, Inc., a Delaware
corporation. 
 (g)    “Consultant” means any person,
including an advisor, (i) engaged by the Company or an Affiliate to render consulting or advisory services and who is compensated for 

 
such services or (ii) who is a member of the Board of Directors of an Affiliate. However, the term “Consultant” shall not include either Directors who are not compensated by the
Company for their services as Directors or Directors who are merely paid a director’s fee by the Company for their services as Directors. 
 (h)    “Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant,
is not interrupted or terminated. The Participant’s Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a- change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s Continuous Service. For example, a change in status from an Employee of
the Company to a Consultant of an Affiliate or a Director will not constitute an interruption of Continuous Service. The Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous
Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave. 

(i)    “Covered Employee” means the chief executive officer and the
four (4) other highest compensated officers of the Company for whom total compensation is required to be reported to Stockholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code. 

(j)    “Director” means a member of the Board of Directors of the
Company. 
 (k)    “Disability” means (i) before the
Listing Date, the inability of a person, in the opinion of a qualified physician acceptable to the Company, to perform the major duties of that person’s position with the Company or an Affiliate of the Company because of the sickness or injury
of the person and (ii) after the Listing Date, the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code. 
 (l)    “Employee” means any person employed by the Company or an Affiliate. Mere service as a Director or payment of a director’s fee by the Company
or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate. 

(m)    “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 
 (n)    “Fair Market Value” means, as of any date,
the value of the Common Stock determined as follows: 
 (i)    In the absence of
such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the Board. 

(ii)    Prior to the Listing Date, the value of the Common Stock shall be determined in a
manner consistent with Section 260.140.50 of Title 10 of the California Code of Regulations. 

  
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 (o)    “Incentive Stock
Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 

(p)    “Listing Date” means the first date upon which any security of
the Company is listed (or approved for listing) upon notice of issuance on any securities exchange or designated (or approved for designation) upon notice of issuance as a national market security on an interdealer quotation system if such
securities exchange or interdealer quotation system has been certified in accordance with the provisions of Section 25100(o) of the California Corporate Securities Law of 1968. 

(q)    “Non-Employee Director” means a Director who either (i) is
not a current Employee or Officer of the Company or its parent or a subsidiary, does not receive compensation (directly or indirectly) from the Company or its parent or a subsidiary for services rendered as a consultant or in any capacity other than
as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act (“Regulation S-K”), does not possess an interest in any other transaction
as to which disclosure would be required under Item 404(a) of Regulation S-K and is not engaged in a business relationship as to which disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a
“non-employee director” for purposes of Rule 16b-3. 

(r)    “Nonstatutory Stock Option” means an Option not intended to
qualify as an Incentive Stock Option. 
 (s)    “Officer”
means (i) before the Listing Date, any person designated by the Company as an officer and (ii) on and after the Listing Date, a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules
and regulations promulgated thereunder. 
 (t)    “Option”
means an Incentive Stock Option or a Nonstatutory Stock Option granted pursuant to the Plan. 

(u)    “Option Agreement” means a written agreement between the
Company and an Optionholder evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 

(v)    “Optionholder” means a person to whom an Option is granted
pursuant to the Plan or, if applicable, such other person who holds an outstanding Option. 

(w)    “Outside Director” means a Director who either (i) is not
a current employee of the Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated
corporation” receiving compensation for prior services (other than benefits under a tax qualified pension plan), was not an officer of the Company or an “affiliated corporation” at any time and is not currently receiving direct or
indirect remuneration from the Company or an “affiliated corporation” for services in any capacity other than as a Director or (ii) is otherwise considered an “outside director” for purposes of Section 162(m) of the
Code. 

  
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 (x)    “Participant”
means a person to whom a Stock Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award. 
 (y)    “Plan” means this DCS Holdings, Inc. 2004 Equity Incentive Plan. 

(z)    “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange
Act or any successor to Rule 16b-3, as in effect from time to time. 

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

 (bb)    “Stock Award” means any right granted under the
Plan, including an Option, a stock bonus and a right to acquire restricted stock. 

(cc)    “Stock Award Agreement” means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and conditions of an individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 

(dd)    “Stockholders Agreement” means the stockholders agreement
dated January     , 2004, by and among the Company, Parthenon DCS Holdings, LLC, a Delaware limited liability company, and other persons and entities that may enter into such agreement. 

(ee)    “Ten Percent Shareholder” means a person who owns (or is
deemed to own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any of its Affiliates. 

 

	3.	 ADMINISTRATION. 

 (a)    Administration by Board.  The Board shall administer the Plan. 
 (b)    Powers of Board.  The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan: 

(i)    To determine from time to time which of the persons eligible under the Plan shall be
granted Stock Awards; when and how each Stock Award shall be granted; what type or combination of types of Stock Award shall be granted; the provisions of each Stock Award granted (which need not be identical), including the time or times when a
person shall be permitted to receive Common Stock pursuant to a Stock Award; and the number of shares of Common Stock with respect to which a Stock Award shall be granted to each such person. 

(ii)    To construe and interpret the Plan and Stock Awards granted under it, and to
establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it shall
deem necessary or expedient to make the Plan fully effective. 
 (iii)    To amend
the Plan or a Stock Award as provided in Section 12. 

  
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 (iv)    Generally, to exercise such powers and
to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company which are not in conflict with the provisions of the Plan. 

(c)    Effect of Board’s Decision.  All determinations, interpretations
and constructions made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. 
  

	4.	 SHARES SUBJECT TO THE PLAN. 

 (a)    Share Reserve.  Subject to the provisions of Section 11 relating to adjustments upon changes in Common Stock, the Common Stock that may be issued
pursuant to Stock Awards shall not exceed in the aggregate one million eight hundred thousand (1,800,000) shares of Common Stock. 
 (b)    Reversion of Shares to the Share Reserve.  If any Stock Award shall for any reason expire or otherwise terminate, in whole or in part, without having
been exercised in full, or if any shares of Common Stock issued to a Participant pursuant to a Stock Award are forfeited back to the Company because of the failure to meet a contingency or condition required to vest such shares in the Participant,
the shares of Common Stock not acquired or forfeited under such Stock Award shall revert to and again become available for issuance under the Plan; provided, however, that subject to the provisions of Section ll(a) relating to Capitalization
Adjustments, the aggregate maximum number of shares of Common Stock that may be issued pursuant to the exercise of Incentive Stock Options shall be one million eight hundred thousand (1,800,000) shares of Common Stock. 

(c)    Source of Shares.  The shares of Common Stock subject to the Plan may
be unissued shares or reacquired shares, bought on the market or otherwise. 

(d)    Share Reserve Limitation.  Prior to the Listing Date and to the extent
then required by Section 260.140.45 of Title 10 of the California Code of Regulations, the total number of shares of Common Stock issuable upon exercise of all outstanding Options and the total number of shares of Common Stock provided for
under any stock bonus or similar plan of the Company shall not exceed the applicable percentage as calculated in accordance with the conditions and exclusions of Section 260.140.45 of Title 10 of the California Code of Regulations, based
on the shares of Common Stock of the Company that are outstanding at the time the calculation is made. 
  

	5.	 ELIGIBILITY. 

 (a)    Eligibility for Specific Stock Awards.  Incentive Stock Options may be granted only to Employees. Stock Awards other than Incentive Stock Options may be
granted to Employees, Directors and Consultants. 
 (b)    Ten Percent Stockholders.

 (i)    A Ten Percent Shareholder shall not be granted an Incentive Stock
Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair 

  
 5 

 
Market Value of the Common Stock at the date of grant and the Option is not exercisable after the expiration of five (5) years from the date of grant. 

(ii)    Prior to the Listing Date, a Ten Percent Shareholder shall not be granted a
Nonstatutory Stock Option unless the exercise price of such Option is at least (i) one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant or (ii) such lower percentage of the Fair Market Value
of the Common Stock at the date of grant as is permitted by Section 260.140.41 of Title 10 of the California Code of Regulations at the time of the grant of the Option. 

(iii)    Prior to the Listing Date, a Ten Percent Shareholder shall not be granted a
restricted stock award unless the purchase price of the restricted stock is at least (i) one hundred percent (100%) of the Fair Market Value of the Common Stock at the date of grant or (ii) such lower percentage of the Fair Market
Value of the Common Stock at the date of grant as is permitted by Section 260.140.41 of Title 10 of the California Code of Regulations at the time of the grant of the Option. 

(c)    Section 162(m) Limitation.  Subject to the provisions of
Section 11 relating to adjustments upon changes in the shares of Common Stock, no Employee shall be eligible to be granted Options covering more than one million (1,000,000) shares of Common Stock during any calendar year. This subsection
5(c) shall not apply prior to the Listing Date and, following the Listing Date, this subsection 5(c) shall not apply until (i) the earliest of: (1) the first material modification of the Plan (including any increase in the number of shares
of Common Stock reserved for issuance under the Plan in accordance with Section 4); (2) the issuance of all of the shares of Common Stock reserved for issuance under the Plan; (3) the expiration of the Plan; or (4) the first
meeting of Stockholders at which Directors are to be elected that occurs after the close of the third calendar year following the calendar year in which occurred the first registration of an equity security under Section 12 of the Exchange Act;
or (ii) such other date required by Section 162(m) of the Code and the rules and regulations promulgated thereunder. 
 (d)    Consultants. 

(i)    Prior to the Listing Date, a Consultant shall not be eligible for the grant of a Stock
Award if, at the time of grant, either the offer or the sale of the Company’s securities to such Consultant is not exempt under Rule 701 of the Securities Act (“Rule 701”) because of the nature of the services that the
Consultant is providing to the Company, or because the Consultant is not a natural person, or as otherwise provided by Rule 701, unless the Company determines that such grant need not comply with the requirements of Rule 701 and will
satisfy another exemption under the Securities Act as well as comply with the securities laws of all other relevant jurisdictions. 
 (ii)    From and after the Listing Date, a Consultant shall not be eligible for the grant of a Stock Award if, at the time of grant, a Form S-8 Registration Statement under the
Securities Act (“Form S-8”) is not available to register either the ·offer or the sale of the Company’s securities to such Consultant because of the nature of the services that the Consultant is providing to the Company,
or because the Consultant is not a natural person, or as otherwise provided by the rules governing the use of Form S-8, unless the Company determines both 

  
 6 

 
(i) that such grant (A) shall be registered in another manner under the Securities Act (e.g., on a Form S-3 Registration Statement) or (B) does not require registration
under the Securities Act in order to comply with the requirements of the Securities Act, if applicable, and (ii) that such grant complies with the securities laws of all other relevant jurisdictions. 

(iii)    Rule 701 and Form S-8 generally are available to consultants and advisors
only if (i) they are natural persons; (ii) they provide bona fide services to the issuer, its parents, its majority-owned subsidiaries or majority-owned subsidiaries of the issuer’s parent; and (iii) the services are not in
connection with the offer or sale of securities in a capital-raising transaction, and do not directly or indirectly promote or maintain a market for the issuer’s securities. 

 

	6.	 OPTION PROVISIONS. 

 Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock
Options at the time of grant, and, if certificates are issued, a separate certificate or certificates will be issued for shares of Common Stock purchased on exercise of each type of Option. The provisions of separate Options need not be identical,
but each Option shall include {through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions: 

(a)    Term.  Subject to the provisions of subsection 5(b) regarding Ten
Percent Stockholders, no Option granted prior to the Listing Date shall be exercisable after the expiration of ten (10) years from the date it was granted, and no Incentive Stock Option granted on or after the Listing Date shall be exercisable
after the expiration of ten (10) years from the date it was granted, or earlier if not exercised at or prior to an event described upon an event described in Section 11(c)(i), (ii) or (iii) of the Plan. 

(b)    Exercise Price of an Incentive Stock Option.  Subject to the
provisions of subsection 5(b) regarding Ten Percent Stockholders, the exercise price of each Incentive Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date
the Option is granted. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another
option in a manner satisfying the provisions of Section 424(a) of the Code. 

(c)    Exercise Price of a Nonstatutory Stock Option.  Subject to the
provisions of subsection 5(b) regarding Ten Percent Stockholders, the exercise price of each Nonstatutory Stock Option granted prior to the Listing Date shall be not less than eighty-five percent (85%) of the Fair Market Value of the Common
Stock subject to the Option on the date the Option is granted. The exercise price of each Nonstatutory Stock Option granted on or after the Listing Date shall be not less than eighty-five percent (85%) of the Fair Market Value of the Common
Stock subject to. the Option on the date the Option is granted. Notwithstanding the foregoing, a Nonstatutory Stock Option may be granted with an exercise price lower than that set forth in the

  
 7 

 
preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. 

(d)    Consideration.  The purchase price of Common Stock acquired pursuant
to an Option shall be paid, to the extent permitted by applicable statutes and regulations, either (i) in cash at the time the Option is exercised or (ii) at the discretion of the Board at the time of the grant of the Option (or
subsequently in the case of a Nonstatutory Stock Option) (1) by delivery to the Company of other Common Stock, (2) according to a deferred payment or other similar arrangement with the Optionholder or (3) in any other form of legal
consideration that may be acceptable to the Board. Unless otherwise specifically provided in the Option, the purchase price of Common Stock acquired pursuant to an Option that is paid by delivery to the Company of other Common Stock acquired,
directly or indirectly from the Company, shall be paid only by shares of the Common Stock of the Company that have been held for more than six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for
financial accounting purposes). At any time that the Company is incorporated in Delaware, payment of the Common Stock’s “par value,” as defined in the Delaware General Corporation Law, shall not be made by deferred payment.

 In the case of any deferred payment arrangement, interest shall be compounded at least annually and shall be
charged at the minimum rate of interest necessary to avoid the treatment as interest, under any applicable provisions of the Code, of any amounts other than amounts stated to be interest under the deferred payment arrangement. 

(e)    Transferability of an Incentive Stock Option.  An Incentive Stock
Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing; the Optionholder may, by delivering
written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. 

(f)    Transferability of a Nonstatutory Stock Option.  A Nonstatutory Stock
Option granted prior to the Listing Date shall not be transferable except by will or by the laws of descent and distribution and, to the extent provided in the Option Agreement, to such further extent as permitted by Section 260.140.41(d) of
Title 10 of the California Code of Regulations at the time of the grant of the Option, and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. A Nonstatutory Stock Option granted on or after the Listing Date
shall be transferable to the extent provided in the Option Agreement. If the Nonstatutory Stock Option does not provide for transferability, then the Nonstatutory Stock Option shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company,
designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. 
 (g)    Vesting Generally.  The total number of shares of Common Stock subject to an Option may, but need not, vest and therefore become exercisable in periodic
installments that may, but need not, be equal. The Option may be subject to such other terms and conditions on 

  
 8 

 
the time or times when it may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The
provisions of this subsection 6(g) are subject to any Option provisions governing the minimum number of shares of Common Stock as to which an Option may be exercised. 

(h)    Minimum Vesting Prior to the Listing Date.  Notwithstanding the
foregoing subsection 6(g), to the extent that the following restrictions on vesting are required by Section 260.140.4l(f) of Title 10 of the California Code of Regulations at the time of the grant of the Option, then: 

(i)    Options granted prior to the Listing Date to an Employee who is not an Officer,
Director or Consultant shall provide for vesting of the total number of shares of Common Stock at a rate of at least twenty percent (20%) per year over five (5) years from the date the Option was granted, subject to reasonable conditions
such as continued employment; and 
 (ii)    Options granted prior to the Listing
Date to Officers, Directors or Consultants may be made fully exercisable, subject to reasonable conditions such as continued employment, at any time or during any period established by the Company. 

(i)    Termination of Continuous Service.  In the event an
Optionholder’s Continuous Service terminates (other than upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date
of termination) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Optionholder’s Continuous Service (or such longer or shorter period specified in the Option
Agreement, which period shall not be less than thirty (30) days for Options granted prior to the Listing Date unless such termination is for cause), or (ii) the expiration of the term of the Option as set forth in the Option Agreement If,
after termination, the Optionholder does not exercise his or her Option within the time specified in the Option Agreement, the Option shall terminate. 
 (j)    Extension of Termination Date.  An Optionholder’s Option Agreement may also provide that if the exercise of the Option following the termination of
the Optionholder’s Continuous Service (other than upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the
Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option set forth in subsection 6(a) or (ii) the expiration of a period of three (3) months after the termination of the
Optionholder’s Continuous Service during which the exercise of the Option would not be in violation of such registration requirements. 
 (k)    Disability of Optionholder.  In the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability,
the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such period of time ending on the earlier of (i) the date twelve
(12) months following such termination (or such longer or shorter period specified in the Option Agreement, which period shall not be less than six (6) months for Options granted prior

  
 9 

 
to the Listing Date) or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within
the time specified herein, the Option shall terminate. 
 (l)    Death of
Optionholder.  In the event (i) an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement
after the termination of the Optionholder’s Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the
Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the option upon the Optionholder’s death pursuant to subsection 6(e) or 6(f), but only within
the period ending on the earlier of (1) the date eighteen (18) months following the date of death (or such longer or shorter period specified in the Option Agreement, which period shall not be less than six (6) months for Options
granted prior to the Listing Date) or (2) the expiration of the term of such Option as set forth in the Option Agreement. If, after death, the Option is not exercised within the time specified herein, the Option shall terminate. 

(m)    Early Exercise.  The Option may, but need not, include a provision
whereby the Optionholder may elect at any time before the Optionholder’s Continuous Service terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the full vesting of the Option.
Subject to the “Repurchase Limitation” in subsection 10(h), any unvested shares of Common Stock so purchased may be subject to a repurchase option in favor of the Company or to any other restriction the Board determines to be appropriate.
Provided that the “Repurchase Limitation” in subsection 10(h) is not violated, the Company will not exercise its repurchase option until at least six (6) months (or such longer or shorter period of time required to avoid a charge to
earnings for financial accounting purposes) have elapsed following exercise of the Option unless the Board otherwise specifically provides in the Option. 
 (n)    Right of Repurchase.  Subject to the “Repurchase Limitation” in subsection 10(h), the Option may, but need not, include a provision whereby the
Company may elect, prior to the Listing Date, to repurchase all or any part of the vested shares of Common Stock acquired by the Optionholder pursuant to the exercise of the Option. Provided that the “Repurchase Limitation” in subsection
10(h) is not violated, the Company will not exercise its repurchase option until at least six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes) have elapsed following
exercise of the Option unless the Board otherwise specifically provides in the Option. 

(o)    Right of First Refusal.  The Option may, but need not, include a
provision whereby the Company may elect, prior to the Listing Date, to exercise a right of first refusal following receipt of notice from the Optionholder of the intent to transfer all or any part of the shares of Common Stock received upon the
exercise of the Option. Except as expressly provided in this subsection 6(o), such right of first refusal shall otherwise comply with any applicable provisions of the Bylaws of the Company. 

  
 10 

	7.	 PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS. 

(a)    Stock Bonus Awards.  Each stock bonus agreement shall be in such form
and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of stock bonus agreements may change from time to time, and the terms and conditions of separate stock bonus agreements need not be identical,
but each stock bonus agreement shall include {through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

(i)    Consideration.  A stock bonus may be awarded in consideration for
past services actually rendered to the Company or an Affiliate for its benefit. 

(ii)    Vesting.  Subject to the “Repurchase Limitation” in
subsection 10(h), shares of Common Stock awarded under the stock bonus agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 

(iii)    Termination of Participant’s Continuous Service.  Subject to
the “Repurchase Limitation” in subsection 10(h), in the event a Participant’s Continuous Service terminates, the Company may reacquire any or all of the shares of Common Stock held by the Participant which have not vested as of the
date of termination under the terms of the stock bonus agreement. 

(iv)    Transferability.  For a stock bonus award made before the Listing
Date, rights to acquire shares of Common Stock under the stock bonus agreement shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the
Participant. For a stock bonus award made on or after the Listing Date, rights to acquire shares of Common Stock under the stock bonus agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the
,stock bonus agreement, as the Board shall determine in its discretion, so long as Common Stock awarded under the stock bonus agreement remains subject to the terms of the stock bonus agreement. 

(b)    Restricted Stock Awards.  Each restricted stock purchase agreement
shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of the restricted stock purchase agreements may change from time to. time, and the terms and conditions of separate
restricted stock purchase agreements need not be identical, but each restricted stock purchase agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following
provisions: 
 (i)    Purchase Price.  Subject to the provisions of
subsection 5(b) regarding Ten Percent Stockholders, the purchase price under each restricted stock purchase agreement shall be such amount as the Board shall determine and designate in such restricted stock purchase agreement. For restricted stock
awards made prior to the Listing Date, the purchase price shall not be less than eighty-five percent (85%) of the Common Stock’s Fair Market Value on the date such award is made or at the time the purchase is consummated. For restricted
stock 

  
 11 

 
awards made on or after the Listing Date, the purchase price shall not be less than eighty-five percent (85%) of the Common Stock’s Fair Market Value on the date such award is made or
at the time the purchase is consummated. 

(ii)    Consideration.  The purchase price of Common Stock acquired pursuant
to the restricted stock purchase agreement shall be paid either: (i) in cash at the time of purchase; (ii) at the discretion of the Board, according to a deferred payment or other similar arrangement with the Participant; or (iii) in
any other form of legal consideration that may be acceptable to the Board in its discretion; provided, however, that at any time that the Company is incorporated in Delaware, then payment of the Common Stock’s “par value,” as defined
in the Delaware General Corporation Law, shall not be made by deferred payment. 

(iii)    Vesting.  Subject to the “Repurchase Limitation” in
subsection 10(h), shares of Common Stock acquired under the restricted stock purchase agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board.

 (iv)    Termination of Participant’s Continuous Service. Subject to the
“Repurchase Limitation” in subsection 10(h), in the event a Participant’s Continuous Service terminates, the Company may repurchase or otherwise reacquire any or all of the shares of Common Stock held by the Participant which have not
vested as of the date of termination under the terms of the restricted stock purchase agreement. 

(v)    Transferability.  For a restricted stock award made before the
Listing Date, rights to acquire shares of Common Stock under the restricted stock purchase agreement shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant
only by the Participant. For a restricted stock award made on or after the Listing Date, rights to acquire shares of Common Stock under the restricted stock purchase agreement shall be transferable by the Participant only upon such terms and
conditions as are set forth in the restricted stock purchase agreement, as the Board shall determine in its discretion, so long as Common Stock awarded under the restricted stock purchase agreement remains subject to the terms of the restricted
stock purchase agreement. 
  

	8.	 COVENANTS OF THE COMPANY. 

 (a)    Availability of Shares.  During the terms of the Stock Awards, the Company shall keep available at all times the number of shares of Common Stock
required to satisfy such Stock Awards. 
 (b)    Securities Law
Compliance.  The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon
exercise of the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award. If, after
reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the

  
 12 

 
Company shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority is obtained. 

 

	9.	 USE OF PROCEEDS FROM STOCK. 

 Proceeds from the sale of Common Stock pursuant to Stock Awards shall constitute general funds of the Company. 
  

	10.	 MISCELLANEOUS. 

 (a)    Acceleration of Exercisability and Vesting.  The Board shall have the power to accelerate the time at which a Stock Award may first be exercised or the
time during which a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time at which it may first be exercised or the time during which it will vest. 

Notwithstanding the foregoing, in the event that the employment of an Employee holding an outstanding Stock Award (or
shares of Common Stock issued pursuant to the exercise of a Stock Award) is involuntarily terminated without “Cause” by the Company prior to such Stock Award (or shares of Common Stock) becoming fully vested, then the vesting of such Stock
Award (or shares of Common Stock) shall become accelerated in full immediately prior to the involuntary termination of employment of such Employee. 
 (b)    Shareholder Rights.  No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common
Stock subject to such Stock Award unless and until such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms. 
 (c)    No Employment or other Service Rights.  Nothing in the Plan or any instrument executed or Stock Award granted pursuant thereto shall confer upon any
Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee
with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the
Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be. 

(d)    Incentive Stock Option $100,000 Limitation.  To the extent that the
aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and its
Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options. 

(e)    Investment Assurances.  The Company may require a Participant, as a
condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and

  
 13 

 
business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is
capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common
Stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock. The foregoing requirements, and any assurances given pursuant to such requirements,
shall be inoperative if (1) the issuance of the shares of Common Stock upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act
or (2) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the
Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common
Stock. 
 (f)    Withholding Obligations.  To the extent provided by
the terms of a Stock Award Agreement, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under a Stock Award by any of the following means (in addition to the
Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares of Common Stock from the shares
of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under the Stock Award, provided, however; that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax
required to be withheld by law; or (iii) delivering to the Company owned and unencumbered shares of Common Stock. 
 (g)    Information Obligation.  Prior to the Listing Date, to the extent required by Section 260.f40.46 of Title 10 of the California Code of Regulations,
the Company shall deliver financial statements to Participants at least annually. This subsection 10(g) shall not apply to key Employees whose duties in connection with the Company assure them access to equivalent information. 

(h)    Repurchase Limitation.  The terms of any repurchase option shall be
specified in the Stock Award and may be either at Fair Market Value at the time of repurchase or at not less than the original purchase price. To the extent required by Section 260.140.41 and Section 260.140.42 of Title 10 of the
California Code of Regulations at the time a Stock Award is made, any repurchase option contained in a Stock Award granted prior to the Listing Date to a person who is not an Officer, Director or Consultant shall be upon the terms described below:

 (i)    Fair Market Value.  If the repurchase option gives the
Company the right to repurchase the shares of Common Stock upon termination of employment at not less than the Fair Market Value of the shares of Common Stock to be purchased on the date of termination of Continuous Service, then (i) the right
to repurchase shall be exercised for cash or cancellation of purchase money indebtedness for the shares of Common Stock within ninety (90) days of termination of Continuous Service (or in the case of shares of Common Stock issued upon

  
 14 

 
exercise of Stock Awards after such date of termination, within ninety (90) days after the date of the exercise) or such longer period as may be agreed to by the Company and the Participant
(for example, for purposes of satisfying the requirements of Section 1202(c)(3) of the Code regarding “qualified small business stock”) and (ii) the right terminates when the shares of Common Stock become publicly traded.

 (ii)    Original Purchase Price.  If the repurchase option gives
the Company the right to repurchase the shares of Common Stock upon termination of Continuous Service at the original purchase price, then (i) the right to repurchase at the original purchase price shall lapse at the rate of at least twenty
percent (20%) of the shares of Common Stock per year over five (5) years from the date the Stock Award is granted (without respect to the date the Stock Award was exercised or became exercisable) and (ii) the right to repurchase shall
be exercised for cash or cancellation of purchase money indebtedness for the shares of Common Stock within ninety (90)days of termination of Continuous Service (or in the case of shares of Common Stock issued upon exercise of Options after such date
of termination, within ninety (90) days after the date of the exercise) or such longer period as may be agreed to by the Company and the Participant (for example, for purposes of satisfying the requirements of Section 1202(c)(3) of the
Code regarding “qualified small business stock”). 
 (i)    Registration
Rights.  The Company shall use its best efforts to register the shares of Common Stock issued or to be issued to Participants pursuant to the exercise of Stock Awards with an SEC Form S-8 registration statement or comparable
registration statement in the event that the Company registers its securities with the Securities and Exchange Commission. 
  

	11.	 ADJUSTMENTS UPON CHANGES IN STOCK AND CORPORATE TRANSACTIONS. 

(a)    Capitalization Adjustments.  If any change is made in the Common Stock
subject to the Plan, or subject to any Stock Award, without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock
split; liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company), the Plan will be appropriately adjusted in the class(es) and
maximum number of securities subject to the Plan pursuant to subsections 4(a) and 4(b) and the maximum number of securities subject to award to any person pursuant to subsection 5(c), and the outstanding Stock Awards will be appropriately adjusted
in the class(es) and number of securities and price per share of Common Stock subject to such outstanding Stock Awards. The Board shall make such adjustments, and its determination shall be final, binding and conclusive. (The conversion of any
convertible securities of the Company shall not be treated as a transaction “without receipt of consideration” by the Company.) 
 (b)    Change in Control–Dissolution or Liquidation.  In the event of a dissolution or liquidation of the Company, then all outstanding Stock Awards shall
terminate immediately prior to such event. 
 (c)    Change in Control-Asset Sale,
Merger, Consolidation or Reverse Merger.  Notwithstanding anything to the contrary, in the event of (i) a sale, lease or other disposition of 

  
 15 

 
all or substantially all of the assets of the Company, (ii) a consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate
reorganization, in which the Stockholders of the Company immediately prior to such consolidation, merger or reorganization, own less than 50% of the Company’s outstanding voting power of the surviving entity (or its parent) following the
consolidation, merger or reorganization or (iii) any transaction (or series of related transactions involving a person or entity, or a group of affiliated persons or entities) in which in excess of fifty percent (50%) of the Company’s
outstanding voting power is transferred, then with respect to Stock Awards held by Participants whose Continuous Service has not terminated, the vesting of such Stock Awards (and, if applicable, the time during which such Stock Awards may be
exercised) as well as the lapse of the Company’s right to repurchase outstanding restricted shares of Common Stock issued under Stock Awards, shall be accelerated in full, and the Stock Awards shall terminate if not exercised (if applicable) at
or prior to such event unless they are assumed or substituted for by the acquiring or surviving entity (in their sole discretion). With respect to any other Stock Awards outstanding under the Plan, such Stock Awards shall terminate if not exercised
(if applicable) prior to such event unless they are assumed or substituted for by the acquiring or surviving entity (in their sole discretion). 
 (d)    Other Corporate Transactions.  In the event that, following the initial grant of Stock Awards under the Plan: 

(i)    the Company authorizes the issuance or sale of any securities to Parthenon
Investors, II, L.P., a Delaware limited partnership, or any of its affiliates (collectively referred to for purposes of this Section ll(d) as “Parthenon”), which issuance and sale the Company agrees shall be solely for cash
consideration as described in Section 3(a) of the Stockholders Agreement; 

(ii)    there is a “Transfer,” within the meaning of such term in Section 4(c)
of the Stockholders Agreement (other than a “Permitted Parthenon Transfer” (as such term is defined in the Stockholders Agreement) not including the making of one or more Transfers to one or more “Permitted Parthenon Transferees”
(as such term is defined in the Stockholder Agreement) resulting in the disposition of any or all of its interest in such Permitted Parthenon Transferee) by Parthenon of any “Stockholder Shares” (as such term is defined in the Stockholders
Agreement)); or 
 (iii)    Parthenon sells its securities of the Company;

 then, with respect to Stock Awards held by each Participant whose Continuous Service has not terminated, the vesting of all
outstanding Stock Awards (and, if applicable, the time during which such Stock Awards may be exercised) of such Participant as well as the lapse of the Company’s right to repurchase restricted shares of Common Stock, if any, of such Participant
issued under Stock Awards, shall be accelerated in full immediately prior to such event. 
  

	12.	 AMENDMENT OF THE PLAN AND STOCK AWARDS. 

(a)    Amendment of Plan.  The Board at any time, and from time to time, may
amend the Plan. However, except as provided in Section 11 relating to adjustments upon changes in 

  
 16 

 
Common Stock; no amendment shall be effective unless approved by the Stockholders of the Company to the extent shareholder approval is necessary to satisfy the requirements of Section 422 of
the Code, Rule 16b-3 or any Nasdaq or securities exchange listing requirements. 

(b)    Shareholder Approval.  The Board may, in its sole discretion, submit
any other amendment to the Plan for shareholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder regarding the exclusion of
performance-based compensation from the limit on corporate deductibility of compensation paid to certain executive officers. 
 (c)    Contemplated Amendments.  It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide
eligible Employees with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or Incentive Stock Options granted
under it into compliance therewith. 
 (d)    No Impairment of
Rights.  Rights under any Stock Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in
writing. 
 (e)    Amendment of Stock Awards.  The Board at any
time, and from time to time, may amend the terms of any one or more Stock Awards; provided, however, that the rights under any Stock Award shall not be impaired by any such amendment unless ( ) the Company requests the consent of the
Participant and (ii) the Participant consents in writing. 
  

	13.	 TERMINATION OR SUSPENSION OF THE PLAN. 

(a)    Plan Term.  The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the date the Plan is adopted by the Board or approved by the Stockholders of the Company, whichever is earlier. No Stock Awards may be granted
under the Plan while the Plan is suspended or after it is terminated. 
 (b)    No
Impairment of Rights.  Suspension or termination of the Plan shall not impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the Participant. 

 

	14.	 EFFECTIVE DATE OF PLAN. 

 The Plan shall become effective as determined by the Board, but no Stock Award shall be exercised (or, in the case of a stock bonus, shall be granted) unless and until the Plan has been approved by the
Stockholders of the Company, which approval shall be within twelve (12) months before or. after the date the Plan is adopted by the Board. 
  

	15.	 CHOICE OF LAW. 

 The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such state’s conflict of laws rules. 

  
 17 

 DCS HOLDINGS, INC. 

2004 EQUITY INCENTIVE PLAN 
 STOCK OPTION AGREEMENT 
 (INCENTIVE AND NONSTATUTORY STOCK OPTIONS)

 Pursuant to your Stock Option Grant Notice (“Grant Notice”) and this Stock Option Agreement,
DCS Holdings, Inc. (the “Company”) has granted you an option under its 2004 Equity Incentive Plan (the “Plan”) to purchase the number of shares of the Company’s Common Stock indicated in your Grant Notice at the exercise
price indicated in your Grant Notice. Defined terms not explicitly defined in this Stock Option Agreement but defined in the Plan shall have the same definitions as in the Plan. 

The details of your option are as follows: 

1.    VESTING.  Subject to the limitations contained herein, your option will vest
as provided .in your Grant Notice, provided that 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 referenced in your Grant
Notice may be adjusted from time to time for Capitalization Adjustments, as provided in the Plan. 

3.    EXERCISE PRIOR TO VESTING (“EARLY EXERCISE”).  If permitted in your
Grant Notice (i.e; the “Exercise Schedule” indicates that “Early Exercise” of your option is permitted) and subject to the provisions of your option, you may elect at any time that is both (i) during the period of your”
Continuous Service and (ii) during the term of your option, to exercise all or part of your option, including the nonvested portion of your option; provided, however, that: 

(a)    a partial exercise of your option shall be deemed to cover first vested shares of Common
Stock and then the earliest vesting installment of unvested shares of Common Stock; 

(b)    any shares of Common Stock so purchased from installments that have not vested as of the date
of exercise shall be subject to the purchase option in favor of the Company as described in the Company’s form of Early Exercise Stock Purchase Agreement; 

(c)    you shall enter into the Company’s form of Early Exercise Stock Purchase Agreement in
form and substance satisfactory to the Company (with unvested repurchaseable by the Company at cost) with a vesting schedule that will result in the same vesting as if no early exercise had occurred; and 

(d)    if your option is an incentive stock option, then, as provided in the Plan, to the extent
that the aggregate Fair Market Value (determined at the time 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) shall be treated as nonstatutory stock options. 

4.    METHOD OF PAYMENT.  Payment of the exercise price is due in full upon exercise
of all or any part of your option. You may elect to make payment of the exercise price in cash or by check or in any other manner permitted by your Grant Notice, which may include one or more of the following: 

(a)    In the Company’s sole discretion at the time your option is exercised and provided that
at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal; 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. 

(b)    Provided that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, by delivery of already-owned shares of Common Stock either that you have held for the period required to avoid a charge to the Company’s reported earnings (generally six months) or that you did not
acquire, directly or indirectly from the Company, 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, shall include delivery to the Company of your attestation of ownership of such shares of Common Stock in a form approved by the Company. Notwithstanding the foregoing, you may
not exercise your option by tender to the Company of Common Stock to the extent such tender would violate the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock. 

(c)    Pursuant to the following deferred payment alternative: 

(i)    Not less than one hundred percent (100%) of the aggregate exercise price, plus accrued
interest, shall be due four (4) years from date of exercise or, at the Company’s election, upon termination of your Continuous Service or an event described in Section 11(c)(i), (ii) or (iii) of the plan, if your option is
not exercised on or prior to such event. 
 (ii)    Interest shall be compounded at least
annually and shall be charged at the minimum rate of interest necessary to avoid the treatment as interest, under any applicable provisions of the Code, of any portion of any amounts other than amounts stated to be interest under the deferred
payment arrangement. 
 (iii)    At any time that the Company is incorporated in Delaware,
payment of the Common Stock’s “par value,” as defined in the Delaware General Corporation Law, shall be made in cash and not by deferred payment. 

  
 2 

 (iv)    In order to elect the deferred payment
alternative, you must, as a part of your written notice of exercise, give notice of the election of this payment alternative and, in order to secure the payment of the deferred exercise price to the Company hereunder, if the Company so requests, you
must tender to the Company a recourse promissory note and a security agreement covering the purchased shares of Common Stock, both in form and substance satisfactory to the Company, or such other or additional documentation as the Company may
request. 
 5.    WHOLE SHARES.  You may exercise your option only for
whole shares of Common Stock. 
 6.    SECURITIES LAW
COMPLIANCE.  Notwithstanding anything to the contrary contained herein, you may not exercise your option unless the shares of Common Stock issuable upon such exercise are then registered under the Securities Act or, if such shares of
Common Stock are not then so registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities Act. The exercise of your option must also comply with 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. 

7.    TERM.  You may not exercise your option before the commencement of its term or
after its term expires. The term of your option commences on the Date of Grant and expires upon the earliest of the following: 
 (a)    three (3) months after the termination of your Continuous Service for any reason other than your Disability or death, provided that if during any part of such three- (3-)
month period your option is not exercisable solely because of the condition set forth in the preceding paragraph relating to “Securities Law Compliance,” your option shall not expire until the earlier of the Expiration Date or until it
shall have been exercisable for an aggregate period of three (3) months after the termination of your Continuous Service; 
 (b)    twelve (12) months after the termination of your Continuous Service due to your Disability; 

(c)    eighteen (18) months after your death if you die either during your Continuous Service
or within three (3) months after your Continuous Service terminates; 
 (d)    the
Expiration Date indicated in your Grant Notice 
 (e)    an event described in
Section 11(c)(i), (ii) or (iii) of the plan, if your option is not exercised on or prior to such event; 
 (f)    the day before the tenth (10th) anniversary of the Date of Grant. 
 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 of your option 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, 

  
 3 

 
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 terminates. 

8.    EXERCISE. 

(a)    You may exercise the vested portion of your option (and the unvested portion of your option if
your Grant Notice so permits) during its term by delivering a Notice of Exercise (in a form designated by the Company) together with the exercise price to the Secretary of the Company, or to such other person as the Company may designate, during
regular business hours, 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 (1) the exercise of your option, (2) the lapse of any substantial
risk of forfeiture to which the shares of Common Stock are subject at the time of exercise, or (3) 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 your option 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 the Company (or a representative of the
underwriter(s)) may, in connection with the first underwritten registration of the offering of any securities of the Company under the Securities Act, require that you 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 shares of Common Stock or other securities of the Company held by you, for a period of time specified by the underwriter(s) (not to exceed one
hundred eighty (180) days) following the effective date of the registration statement of the Company filed under the Securities Act. You further agree to execute and deliver such other agreements as may be reasonably requested by the
Company and/or the underwriter(s) 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. 
 9.    TRANSFERABILITY. 

(a)    If your option is an incentive stock option, your option is not transferable, except by will
or by the laws of descent and distribution, and is exercisable during 

  
 4 

 
your life only by you. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party who, in the event of your
death, shall thereafter be entitled to exercise your option. 
 (b)    If your option is a
nonstatutory stock option, your option is not transferable, except (i) by will or by the laws of descent and distribution, (ii) with the prior written approval of the Company, by instrument to an inter vivos or testamentary trust, in a
form accepted by the Company, in which the option is to be passed to beneficiaries upon the death of the trustor (settlor) and (iii) with the prior written approval of the Company, by gift, in a form accepted by the Company, to your
“immediate family” as that term is defined in 17 C.P.R. 240.16a-l(e). The term “immediate family” is defined in 17 C.P.R. 240.16a-l(e) to mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and includes adoptive relationships. Your option is exercisable during your life only by you or a transferee satisfying the above-stated
conditions. The right of a transferee to exercise the transferred portion of your option after termination: of your Continuous Service shall terminate in accordance with your right to exercise your option as specified in your option. In the event
that your Continuous Service terminates due to your death, your transferee will be treated as a person who acquired the right to exercise your option by bequest or inheritance. In addition to the foregoing, the Company may require, as a condition of
the transfer of your option to a trust or by gift, that your transferee enter into an option transfer agreement provided by, or acceptable to, the Company. The terms of your option shall be binding upon your transferees, executors, administrators,
heirs, successors, and assigns. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party who, in the event of your death, shall thereafter be entitled to
exercise your option. 
 10.    STOCKHOLDERS AGREEMENT.    Your
option is conditioned upon your entering into the Stockholders Agreement, among you and the Company and certain other Shareholders of the Company. 
 11.    REGISTRATION AGREEMENT.    You option is conditioned upon your entering into the Registration Agreement, among you, the Company and other shareholders
of the Company. 
 12.    OPTION NOT A SERVICE CONTRACT.    Your
option is not an employment or service contract, and nothing in your option shall 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 shall obligate the Company or an Affiliate, their respective shareholders, 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, or 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 

  
 5 

 
(including by means of a “cashless exercise” 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 your option. 

(b)    Upon your request and subject to approval by the Company, in its sole discretion, and
compliance with any applicable conditions or restrictions of law, 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 Company as of the date of exercise, not in excess of the minimum amount of tax required to be withheld by law. If the date of determination of any tax withholding obligation is deferred to a date later than the date
of exercise of your option, share withholding pursuant to the preceding sentence shall not be permitted unless you make a proper and timely election under Section 83(b) of the Code, covering the aggregate number of shares of Common Stock
acquired upon such exercise with respect to which such determination is otherwise deferred, to accelerate the determination of such tax withholding obligation to the date of exercise of your option. Notwithstanding the filing of such election,
shares of Common Stock shall be withheld solely from fully vested shares of Common Stock determined as of the date of exercise of your option that are otherwise issuable to you upon such exercise. Any adverse consequences to you arising in
connection with such share withholding procedure shall 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 shall 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. 

14.    NOTICES.  Any notices provided for in your option or the Plan shall be given
in writing and shall 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. 
 15.    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. In the event of any conflict between the provisions of your option and those of the Plan, the provisions of the Plan shall control. 
 16.    REPRESENTATIONS.  In accepting your option, you represent and acknowledge that (i) you have a preexisting personal or business relationship with the
Company or any of its partners, officers, directors or controlling persons, or by reason of your business or financial experience could be reasonably assumed to have the capacity to protect your own interests in connection with the grant of the
option or an exercise of the option, and (ii) you are accepting the option and, if you exercise the option, you shall do so solely for your 

  
 6 

 
own account and not with a view to or for sale in connection with any distribution of the option or the shares of Common Stock purchased with the option. 

  
 7 

 DCS HOLDINGS, INC. 

2004 EQUITY INCENTIVE PLAN 
 STOCK OPTION GRANT NOTICE 
 DCS HOLDINGS, INC. (the
“Company”), pursuant to its 2004 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 herein and in the Stock Option Agreement, the Plan and the Notice of Exercise, all of which are attached hereto and incorporated herein in their entirety. Capitalized terms herein shall have the meanings given
them by the Stock Option Agreement or the Plan unless the context clearly requires otherwise. 
  

			
	Optionholder:	 	
		 	  

	Date of GrantIVesting Commencement Date:	 	
		 	  

	Number of Shares Subject to Option:	 	
		 	  

	Exercise Price (Per Share):	 	 $1.00

		 	  

	Total Exercise Price:	 	
		 	  

	Expiration Date:	 	Ten years from date of grant or upon an event described in Section 11(c)(i), (ii) or (iii) of the Plan, if your option is not exercised on or prior to such
event
		 	  

  

					
			
	 Type of Grant:
	  	 x Incentive Stock Option1
	  	  ̈ Nonstatutory Stock Option

			
	 Exercise Schedule:
	  	 x Same as Vesting Schedule
	  	  ̈ Early Exercise Permitted

		
	 Vesting Schedule:
	  	 1/48th of the Shares of Common Stock shall vest after each month of Continuous Service after the Vesting Commencement Date except as otherwise provided in the Stock Option Agreement or the
Plan.

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

			
		  	            By cash or check	  	
		
		  	            By delivery of already-owned shares if the Shares are publicly traded

 Additional Terms/Acknowledgements:  The undersigned Optionholder acknowledges receipt
of, and understands and agrees to, this Grant Notice, the Stock Option Agreement and the Plan including but not limited to the representations made in the Stock Option Agreement by the undersigned Optionholder. Optionholder further acknowledges that
as of the Date of Grant, 
  
  

	1 	 If this is an incentive stock option, it (plus. your other outstanding incentive stock options) cannot be first exercisable for more
than $100,000 in any calendar year. Any excess over $100,000 is a nonstatutory stock option. 

 
this Grant Notice, the Stock Option Agreement and the Plan set forth the entire understanding between Optionholder and the Company regarding the acquisition of stock in the Company and supersede
all prior otal and written agreements on that subject with the exception of (i) options previously granted and delivered to Optionholder under the Plan (ii) the Stockholders Agreement dated the date hereof among you and the Company,
(iii) the Registration Agreement dated the date hereof among you and the Company, and (iv) the following agreements only: 
  

			
	 OTHER AGREEMENTS:
	  	 
		
		  	 

  
 9 

									
	DCS HOLDINGS, INC.	 		 	OPTIONHOLDER:
				
	By:	 		 		 	
		 	  
	 		 		 	  

	Name:	 		 		 		 	Signature
	Title:	 		 		 	Date:	 	
		 		 		 		 	  

	Date:	 		 		 		 	
		 	  
	 		 		 	

 ATTACHMENTS:  Stock Option Agreement, 2004 Equity Incentive Plan and Notice of Exercise

 [Signature Page to Stock Option Grant Notice Under DCS Holdings, Inc. 

2004 Equity Incentive Plan 

 ATTACHMENT I 
 DCS HOLDINGS, INC. 
 2004 EQUITY INCENTIVE PLAN 

STOCK OPTION AGREEMENT 

 ATTACHMENT II 
 DCS HOLDINGS, INC. 
 2004 EQUITY INCENTIVE PLAN 

PLAN DOCUMENT 

 ATTACHMENT III 

DCS HOLDINGS, INC. 
 2004 EQUITY INCENTIVE PLAN 
 NOTICE OF EXERCISE

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