Document:

EX-10.11

 [***] Certain information in this document has been excluded pursuant to Regulation S-K,
Item 601(b)(10). Such excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed. 

Exhibit 10.11 
 EXECUTION
VERSION 
 RESEARCH COLLABORATION AND LICENSE AGREEMENT 

between 
 ELI LILLY AND
COMPANY 
 and 

AVIDITY BIOSCIENCES, INC. 

 TABLE OF CONTENTS 

 

							
		 		  	 	Page	 
			
	 ARTICLE 1
	 	DEFINITIONS	  	 	1	 
			
	 ARTICLE 2
	 	GOVERNANCE AND JOINT RESEARCH COMMITTEE	  	 	15	 
			
	 2.1
	 	Project Leader	  	 	15	 
			
	 2.2
	 	Alliance Manager	  	 	15	 
			
	 2.3
	 	Working Groups	  	 	15	 
			
	 2.4
	 	Joint Research Committee	  	 	15	 
			
	 2.5
	 	Function and Powers of the JRC	  	 	15	 
			
	 2.6
	 	Meetings	  	 	16	 
			
	 2.7
	 	Decisions	  	 	16	 
			
	 2.8
	 	Authority	  	 	17	 
			
	 2.9
	 	Discontinuation of JRC	  	 	17	 
			
	 ARTICLE 3
	 	LICENSES; EXCLUSIVITY	  	 	18	 
			
	 3.1
	 	License Grants	  	 	18	 
			
	 3.2
	 	Sublicenses	  	 	18	 
			
	 3.3
	 	Subcontracting	  	 	18	 
			
	 3.4
	 	Collaboration Materials Transfer	  	 	19	 
			
	 3.5
	 	Exclusivity	  	 	19	 
			
	 3.6
	 	No Other Rights; Retained Rights	  	 	21	 
			
	 ARTICLE 4
	 	RESEARCH ACTIVITIES	  	 	21	 
			
	 4.1
	 	Overview	  	 	21	 
			
	 4.2
	 	Collaboration Targets	  	 	22	 
			
	 4.3
	 	Research Plans	  	 	23	 
			
	 4.4
	 	Selection of Development Candidate	  	 	24	 
			
	 4.5
	 	Records; Reports	  	 	25	 
			
	 4.6
	 	Research Term Extension	  	 	25	 
			
	 4.7
	 	Discontinued Targets	  	 	25	 
			
	 4.8
	 	Diligence	  	 	26	 
			
	 4.9
	 	Research Funding	  	 	26	 
			
	 4.10
	 	Certain Standards Applicable to Work	  	 	27	 

  
 i 

							
			
	 ARTICLE 5
	 	DEVELOPMENT, MANUFACTURING, AND REGULATORY MATTERS	  	 	28	 
			
	 5.1
	 	Development and Manufacturing Responsibilities	  	 	28	 
			
	 5.2
	 	Diligence	  	 	28	 
			
	 5.3
	 	Reports	  	 	28	 
			
	 5.4
	 	Regulatory Responsibilities	  	 	28	 
			
	 5.5
	 	Adverse Event Reporting; Additional Agreement	  	 	28	 
			
	 ARTICLE 6
	 	COMMERCIALIZATION	  	 	29	 
			
	 6.1
	 	General	  	 	29	 
			
	 6.2
	 	Diligence	  	 	29	 
			
	 ARTICLE 7
	 	FEES, ROYALTIES, & PAYMENTS	  	 	29	 
			
	 7.1
	 	Upfront Payment	  	 	29	 
			
	 7.2
	 	Milestone Payments	  	 	29	 
			
	 7.3
	 	Royalties on Products	  	 	31	 
			
	 7.4
	 	Convertible Note	  	 	33	 
			
	 7.5
	 	Method of Payment; Currency Conversion	  	 	33	 
			
	 7.6
	 	Records and Audits	  	 	33	 
			
	 7.7
	 	Late Payments	  	 	34	 
			
	 7.8
	 	Taxes	  	 	34	 
			
	 ARTICLE 8
	 	INTELLECTUAL PROPERTY	  	 	35	 
			
	 8.1
	 	Ownership of Intellectual Property	  	 	35	 
			
	 8.2
	 	Patent Prosecution and Maintenance	  	 	36	 
			
	 8.3
	 	Infringement or Misappropriation by Third Parties	  	 	38	 
			
	 8.4
	 	Defense and Settlement of Third Party Claims	  	 	39	 
			
	 8.5
	 	Patent Extension	  	 	40	 
			
	 8.6
	 	CREATE Act	  	 	40	 
			
	 8.7
	 	Trademarks	  	 	40	 
			
	 ARTICLE 9
	 	REPRESENTATIONS, WARRANTIES AND COVENANTS	  	 	40	 
			
	 9.1
	 	Mutual Representations and Warranties	  	 	40	 
			
	 9.2
	 	Avidity Representations and Warranties	  	 	41	 
			
	 9.3
	 	Mutual Covenants	  	 	43	 
			
	 9.4
	 	Compliance	  	 	44	 
			
	 9.5
	 	Disclaimer	  	 	45	 
			
	 ARTICLE 10
	 	INDEMNIFICATION	  	 	45	 
			
	 10.1
	 	Indemnity	  	 	45	 
			
	 10.2
	 	Insurance	  	 	46	 

  
 ii 

							
			
	 ARTICLE 11
	 	CONFIDENTIALITY	  	 	47	 
			
	 11.1
	 	Confidential Proprietary Information	  	 	47	 
			
	 11.2
	 	Publicity	  	 	49	 
			
	 11.3
	 	Publication	  	 	50	 
			
	 ARTICLE 12
	 	TERM & TERMINATION	  	 	50	 
			
	 12.1
	 	Term	  	 	50	 
			
	 12.2
	 	Termination for Material Breach	  	 	50	 
			
	 12.3
	 	Termination by Lilly	  	 	51	 
			
	 12.4
	 	Termination for Patent Challenges	  	 	52	 
			
	 12.5
	 	Effects of Termination	  	 	52	 
			
	 12.6
	 	Survival	  	 	54	 
			
	 12.7
	 	Bankruptcy Code	  	 	54	 
			
	 ARTICLE 13
	 	GOVERNING LAW; DISPUTE RESOLUTION	  	 	55	 
			
	 13.1
	 	Governing Law	  	 	55	 
			
	 13.2
	 	Disputes	  	 	55	 
			
	 13.3
	 	Mediation	  	 	55	 
			
	 13.4
	 	Litigation; Equitable Relief	  	 	56	 
			
	 13.5
	 	Excluded Claims	  	 	56	 
			
	 ARTICLE 14
	 	MISCELLANEOUS	  	 	56	 
			
	 14.1
	 	Entire Agreement; Amendment	  	 	56	 
			
	 14.2
	 	Limitation of Liability	  	 	57	 
			
	 14.3
	 	Independent Contractors	  	 	57	 
			
	 14.4
	 	Notice	  	 	57	 
			
	 14.5
	 	Severability	  	 	58	 
			
	 14.6
	 	Non-Use of Names	  	 	58	 
			
	 14.7
	 	Assignment	  	 	58	 
			
	 14.8
	 	Avidity Change of Control	  	 	58	 
			
	 14.9
	 	Waivers	  	 	59	 
			
	 14.10
	 	Force Majeure	  	 	60	 
			
	 14.11
	 	Interpretation	  	 	60	 
			
	 14.12
	 	Counterparts; Electronic Signatures	  	 	60	 
			
	 14.13
	 	Expenses	  	 	60	 
			
	 14.14
	 	Further Assurances	  	 	60	 
			
	 14.15
	 	No Third Party Beneficiary Rights	  	 	61	 
			
	 14.16
	 	Construction	  	 	61	 
			
	 14.17
	 	Cumulative Remedies	  	 	61	 
			
	 14.18
	 	Extension to Affiliates	  	 	61	 

  
 iii 

 Exhibits 

Exhibit 1.14 - Avidity Patents 
 Exhibit 4.2.1 -
Reserved Targets 
 Exhibit 4.3 - Initial Research Plan 

Exhibit 4.10 - Part A: Eli Lilly and Company Good Research Practices 

Exhibit 4.10 - Part B: Eli Lilly and Company Animal Care and Use Requirement for Animal Researchers and Suppliers 

Exhibit 11.2 - Joint Press Release 

  
 iv 

 [***] Certain information in this document has been excluded pursuant to Regulation S-K,
Item 601(b)(10). Such excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed. 

RESEARCH COLLABORATION AND LICENSE AGREEMENT 

THIS RESEARCH COLLABORATION AND LICENSE
AGREEMENT (“Agreement”) is entered into as of April 17, 2019 (the “Effective Date”) by and between AVIDITY BIOSCIENCES,
INC., a Delaware corporation having an address at 10975 N. Torrey Pines Rd., Suite 150, La Jolla, CA 92037 (“Avidity”), and ELI LILLY AND
COMPANY, a corporation organized and existing under the laws of Indiana, with its principal business office located at Lilly Corporate Center, Indianapolis, Indiana 46285, U.S.A. (“Lilly”).
Lilly and Avidity are each hereafter referred to individually as a “Party” and together as the “Parties.” 

WHEREAS, Avidity is a biotechnology company engaged in the research and development of therapeutics based
on targeted delivery of nucleic acid molecules; 
 WHEREAS, Lilly is a pharmaceutical company engaged
in the research, development, manufacturing, marketing and distribution of pharmaceutical products, including therapeutic products, for use in humans and animals; 

WHEREAS, Avidity and Lilly desire to collaborate in the validation of certain biological Targets (as
defined below) and the research and development of antibody-nucleic acid conjugates as therapeutics; 

WHEREAS, Lilly desires to obtain from Avidity, and Avidity desires to grant to Lilly, an exclusive
license to develop, manufacture, and commercialize Compounds and Products (as defined below), subject to the terms and conditions of this Agreement; and 

WHEREAS, in connection with the above license grant, Lilly is purchasing a convertible promissory note
from Avidity pursuant to that certain Convertible Note Purchase Agreement between the Parties of even date herewith. 

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other
good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as follows: 

ARTICLE 1 
 DEFINITIONS

 Capitalized terms used in this Agreement and the Exhibits hereto shall have the following meanings (or as defined elsewhere in this
Agreement): 
 1.1 “Acquirer” has the meaning set forth in the definition of “Change of Control.” 

1.2 “Affiliate” means, with respect to either Party, any entity that, at the relevant time (whether as of the Effective
Date or thereafter), directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with such Party, for so long as such control exists. As used in this Section 1.2, “control” means:
(a) to possess, directly or indirectly, the power to direct or cause the direction of the management or policies of an 

 
entity, whether through ownership of voting securities or by contract relating to voting rights or corporate governance; or (b) direct or indirect ownership of fifty percent (50%) (or such
lesser percentage that is the maximum allowed to be owned by a foreign entity in a particular jurisdiction) or more of the voting share capital or other equity interest in such entity. 

1.3 “Agreement” has the meaning set forth in the Preamble. 

1.4 “Alliance Manager” has the meaning set forth in Section 2.2. 

1.5 “Applicable Laws” means the applicable provisions of any and all federal, national, supranational,
regional, state and local laws, treaties, statutes, rules, regulations, guidelines or requirements, administrative codes, guidance, ordinances, judgments, decrees, directives, injunctions, orders, or permits of or from any court, arbitrator,
Regulatory Authority, Governmental Authority, taxing authority, national securities exchange or exchange listing organization having jurisdiction over or related to the relevant subject item that may be in effect from time to time during the Term.

 1.6 “Antibody” means a molecule comprising at least one complementarity determining region of an immunoglobulin
domain, including variants, modifications or derivatives of such complementarity determining region. 
 1.7 “AOC”
means an Antibody-Oligo conjugate. 
 1.8 “Avidity” has the meaning set forth in the Preamble. 

1.9 “Avidity-Controlled Patents” has the meaning set forth in Section 8.2.2. 

1.10 “Avidity External Costs” means costs, expenses, and charges paid to Third Parties (or payable
to Third Parties and accrued in accordance with U.S. GAAP) by Avidity or its Affiliates in the performance of the Research under the applicable Research Plan for a Program. 

1.11 “Avidity Indemnitee” has the meaning set forth in Section 10.1.2. 

1.12 “Avidity Internal Costs” means Avidity’s FTE costs (calculated at the FTE Rate) incurred by Avidity or any of
its Affiliates in the performance of the Research under the applicable Research Plan for a Program. 
 1.13 “Avidity Know-How” means all Know-How (including any Know-How that is Avidity Proprietary Technology) that Avidity or its Affiliate
Controls as of the Effective Date or during the Term that is necessary or reasonably useful for the research, development, manufacturing, having made, use, keeping, importing, exporting, sale, offering for sale or other exploitation of Compounds and
Products in the Field in the Territory. Notwithstanding the foregoing, if any Third Party becomes an Acquirer of Avidity after the Effective Date pursuant to a Change of Control, Avidity Know-How will exclude
any Know-How that is Controlled by the Acquirer before the relevant Change of Control transaction or thereafter during the Term, provided, however, that Avidity
Know-How will include any Know-How that would otherwise fall under the definition of Avidity Know-How that is contained in any
Invention discovered, conceived of, or reduced to practice by or on behalf of the Acquirer in performing any activity under this Agreement or by using any Avidity Technology existing as of the closing of such Change of Control transaction or any
Avidity Proprietary Technology regardless of when created. 

  
 2 

 1.14 “Avidity Patent” means any Patent that Avidity or its Affiliate
Controls as of the Effective Date or during the Term that: (a) claims Avidity Know-How; or (b) Covers the research, development, manufacturing, having made, use, keeping, importing, exporting, sale, offering for sale or other exploitation of
Compounds and Products in the Field in the Territory; including those Patents set forth on Exhibit 1.14. Notwithstanding the foregoing, if any Third Party becomes an Acquirer of Avidity after the Effective Date pursuant to a Change of
Control, Avidity Patents will exclude any Patent that is Controlled by the Acquirer before the relevant Change of Control transaction or thereafter during the Term, provided, however, that Avidity Patents will include any Patents that
would otherwise be included in the definition of Avidity Patents that claim an Invention made or generated by the Acquirer in performing any activity under this Agreement or by using any Avidity Technology existing as of the closing of such Change
of Control transaction or any Avidity Proprietary Technology regardless of when created. 
 1.15 “Avidity Proprietary
Technology” means Proprietary Technology of Avidity (or its Affiliate) that: (a) exists as of the Effective Date or is developed, acquired or in-licensed by Avidity and/or any of its
Affiliates during the Term outside the scope of its activities under the Research Plan; and (b) is not the same as any Lilly Proprietary Technology, provided that in the case of Avidity Know-How (as
opposed to Avidity Patents) that would otherwise be considered Avidity Proprietary Technology under this definition that is disclosed by Avidity or its Affiliate to Lilly (or its Affiliate), such Know-How
shall only be considered Avidity Proprietary Technology to the extent it is marked or otherwise prominently designated to Lilly (or such Affiliate) as Avidity Proprietary Technology at the time of such disclosure or immediately thereafter. 

1.16 “Avidity Research Costs” means, individually or collectively, the Avidity Internal Costs and the Avidity External
Costs. 
 1.17 “Avidity Technology” means, individually or collectively, the Avidity
Know-How and Avidity Patents. For clarity, “Avidity Technology” includes all Avidity Proprietary Technology. 

1.18 “Biosimilar Product” means, with respect to a Product, and on a Product-by-Product and country-by-country basis, any product (including a “generic
product,” “biogeneric,” “follow-on biologic,” “follow-on biological product,” “follow-on
protein product,” “similar biological medicinal product,” or “biosimilar product”) approved by way of an abbreviated regulatory mechanism by the relevant Regulatory Authority in a country in reference to such Product, that
in each case: (a) is sold in the same country (or is commercially available in the same country via import from another country) as such Product by any Third Party that is not a Sublicensee of Lilly or its Affiliates and that did not purchase
such product in a chain of distribution that included any of Lilly or any of its Affiliates or its Sublicensees; and (b) meets the equivalency determination by the applicable Regulatory Authority in such country (including a determination that
the product is “comparable,” “interchangeable,” “bioequivalent,” “biosimilar” or other term of similar meaning, with respect to the Product), in each case, as is necessary to permit substitution of such
product for the Product under Applicable Law in such country. 

  
 3 

 1.19 “Business Day” means any day other than Saturday, Sunday, or
any day that banks are authorized or required to be closed in San Diego, California or Indianapolis, Indiana. 
 1.20
“Calendar Quarter” means each respective period of three (3) consecutive months ending on March 31, June 30, September 30, and December 31 of any Calendar Year. 

1.21 “Calendar Year” means each respective period of twelve (12) consecutive months
commencing on January 1 and ending on December 31. 
 1.22 “Change of Control” means: 

(a) with respect to either Party: (i) the acquisition by a Third Party, in one transaction or a series of related transactions, of direct
or indirect beneficial ownership of more than fifty percent (50%) of the outstanding voting equity securities of such Party (excluding, for clarity, an acquisition by a Third Party where the stockholders of such acquired Person immediately prior to
such transaction hold a majority of the voting shares of outstanding capital stock of the surviving entity immediately following such transaction); (ii) a merger or consolidation involving such Party, as a result of which a Third Party acquires
direct or indirect beneficial ownership of more than fifty percent (50%) of the voting power of the surviving entity immediately after such merger, reorganization or consolidation; or (iii) a sale of all or substantially all of the assets of
such Party in one transaction or a series of related transactions to a Third Party. The acquiring or combining Third Party in any of (i), (ii) or (iii), and any of such Third Party’s Affiliates (whether in existence as of or any time
following the applicable transaction, but other than the acquired Party and its Affiliates as in existence prior to the applicable transaction or Affiliates it controls after the applicable transaction) are referred to collectively herein as the
“Acquirer”; or 
 (b) with respect to the acquisition of Avidity by a Lilly Competitor, whether in one transaction or
a series of related transactions, in addition to the items in (a) above, the acquisition of: (i) majority control of the board of directors or equivalent governing body of Avidity; (ii) the ability to cause the direction of the
management or allocation of corporate resources of Avidity; or (iii) all or substantially all of the assets of Avidity related to the transactions contemplated by this Agreement; in which case such Lilly Competitor and its Affiliates (other
than Avidity and its Affiliates in existence prior to the applicable transaction) shall also be considered an Acquirer. 
 1.23
“Claim” has the meaning set forth in Section 10.1.1. 
 1.24 “Clinical Trial” means a
Phase I Clinical Trial, Phase II Clinical Trial or Phase III Clinical Trial, or any post-Regulatory Approval human clinical trial, as applicable. 

1.25 “Collaboration Materials” means any tangible documents (whether in paper or electronic form) or other materials
generated or Controlled by a Party that are delivered to the other Party to conduct Research as set forth in the Research Plans. For avoidance of doubt, “Collaboration Materials,” as used in this Agreement, does not include any
intellectual property rights in the foregoing. 

  
 4 

 1.26 “Collaboration Target” means (a) the Initial Collaboration
Targets and (b) any Replacement Targets selected by Lilly and approved by Avidity pursuant to Section 4.2.2. Collaboration Targets exclude any Discontinued Targets, and any Reserved Targets not selected as Initial Collaboration Targets
pursuant to Section 4.2.1 unless and until selected as Replacement Targets pursuant to Section 4.2.2. 
 1.27
“Combination Product” has the meaning set forth in the definition of “Net Sales.” 

1.28 “Commercial Milestone Event” has the meaning set forth in Section 7.2.1. 

1.29 “Commercialization” means any and all activities directed to the offering for sale and sale of a Compound,
Product, or other compound, product or therapy including: (a) activities directed to storing, marketing, promoting, detailing, distributing, importing, exporting, selling and offering to sell that Compound, Product, or other compound, product
or therapy; (b) conducting Clinical Trials after Marketing Authorization of a Compound, Product, or other compound, product or therapy with respect to such Compound, Product, or other compound, product or therapy; (c) interacting with
Regulatory Authorities regarding the foregoing; and (d) seeking pricing approvals and reimbursement approvals (as applicable) for that Compound, Product, or other compound, product or therapy in the Field in the Territory. When used as a verb,
“to Commercialize” and “Commercializing” means to engage in Commercialization and “Commercialized” has a corresponding meaning. 

1.30 “Commercially Reasonable Efforts” of a Party means that level of efforts and resources commonly applied by such
Party [* * *]. 
 1.31 “Competing Program” has the meaning set forth in
Section 3.5.2. 
 1.32 “Compound” means any AOC that: (a) is Directed Against a Collaboration Target; and
(b) is selected, discovered, used, generated, optimized or identified by either Party during the Term in the course of its activities under a Research Plan or otherwise under this Agreement. 

1.33 “Confidential Disclosure Agreement” means that certain Confidential Disclosure Agreement entered into between the
Parties as of March 5, 2018, as amended. 

  
 5 

 1.34 “Confidential Proprietary Information” has the meaning set
forth in Section 11.1.1. 
 1.35 “Control” or “Controlled” means, with respect to any Know-How, Patents, or other intellectual property rights, that a Party has the legal authority or right (whether by ownership, license, or otherwise) to grant to the other Party a license, covenant not to sue,
sublicense, access, or right to use (as applicable) under such Know-How, Patents, or other intellectual property rights, on the terms and conditions set forth herein, in each case without violating any
obligations of the granting Party owed to a Third Party, breaching the terms of any agreement with a Third Party or subjecting the granting Party to any additional fee or charge; provided that the Know-How,
Patents or intellectual property rights will be excluded from being considered “Controlled” by virtue of any such fee or charge only if the first Party notifies the other Party of the fee or charge and the other Party does not agree to
reimburse the first Party for or otherwise bear the fee or charge. 
 1.36 “Cover” means, with respect to a claim of
a Patent and a relevant Compound or Product, that such claim would be infringed, absent a license, by the research, development, making, having made, use, keeping, importation, exportation, offering for sale, sale, or other exploitation of such
Compound or Product (considering claims of patent applications to be issued as then pending). 
 1.37 “Data Package”
means, on a Collaboration Target-by-Collaboration Target basis, the package of data to be generated and any success criteria for the determination as to whether any
Development Candidate directed to such Collaboration Target should be further developed as a Product, all of which shall be determined by the JRC and set forth in the applicable Research Plan for the applicable Collaboration Target. 

1.38 “Development Candidate” has the meaning set forth in Section 4.1. 

1.39 “Development Milestone Event” has the meaning set forth in Section 7.2.1. 

1.40 “Development Milestone Payment” has the meaning set forth in Section 7.2.2. 

1.41 “Directed Against” means, with respect to a compound or product and a Target, that the Oligo contained in such
compound or product binds to and modulates such Target as its primary mechanism of action. For clarity, “Directed Against” requires direct Target interaction, and does not include pathway effects. 

1.42 “Disclosing Party” has the meaning set forth in Section 11.1.1. 

1.43 “Discontinued Target” means: (a) a Collaboration Target for which Lilly discontinues Research pursuant to
Section 4.2.3; (b) a Collaboration Target for which the JRC determines not to develop further a Development Candidate pursuant to Section 4.4; or (c) a Collaboration Target for which the period in Section 4.4 lapses. 

1.44 “Dispute” has the meaning set forth in Section 13.1. 

1.45 “Dollar” means a U.S. dollar, and “$” is to be interpreted accordingly. 

  
 6 

 1.46 “Effective Date” has the meaning set forth in the preamble to
this Agreement. 
 1.47 “Eli Lilly and Company Animal Care and Use Requirement for Animal Researchers and
Suppliers” has the meaning set forth in Section 4.10. 
 1.48 “Eli Lilly and Company Good Research
Practices” has the meaning set forth in Section 4.10. 
 1.49 “Excluded
Claims” has the meaning set forth in Section 13.5. 
 1.50 “Excluded Technologies” means
any Patents Covering or Know-How directed to Antibody engineering, manufacturing (including expression vectors, cell lines, culture media and feeds), formulations, or devices. 

1.51 “Executive Officers” means: (a) with respect to Avidity, its Chief Executive Officer; and (b) with
respect to [* * *] or any other person that such officer designates from time to time. 
 1.52
“FDA” means the United States Food and Drug Administration or any successor agency thereto. 
 1.53
“Field” means all uses, including any and all uses for the diagnosis, prevention, amelioration, and treatment of any disease or medical condition in humans and animals. 

1.54 “First Commercial Sale” means the first sale of a Product by Lilly or its Affiliates or their Sublicensees to a
Third Party (excluding any Sublicensee) for end use or consumption of such Product in a given country after Regulatory Approval required to market and sell the Product has been granted with respect to such Product in such country in which such
Product is sold. Furthermore, for purposes of clarity, the term “First Commercial Sale” as used in this Agreement shall not include: (a) sales for purposes of testing any Product, or of any Product samples; (b) any distribution
or other sale solely for so-called treatment investigational new drug sales, named patient sales, compassionate or emergency use sales or pre-license sales, in each case
provided that such Product is distributed without charge or sold at or below cost; (c) any sale of a Product by Lilly to its Affiliate (or their Sublicensees), unless there is a subsequent resale of the Product by such Affiliate or Sublicensee;
nor (d) other similar non-commercial sales. 
 1.55 “First Commercial Sale
Milestone Event” has the meaning set forth in Section 7.2.1. 
 1.56 “FTE” means the
equivalent of a full-time Avidity employee’s work performing activities under a Research Plan, which is at least [* * *] per Calendar Year. If any such individual works partially on work under a
Research Plan for a Program and partially on other work in a Calendar Quarter, then the “FTE” to be attributed to such individual’s work hereunder shall be calculated based upon the percentage of such individual’s total work time
in such Calendar Quarter that such individual spent working under a Research Plan for such Program based on [* * *] per Calendar Year, applied consistently throughout the Calendar Year. Overtime, and work
on weekends, holidays and the like will not be counted with any multiplier (e.g., time-and-a-half or double time) toward
the number of hours that are used to calculate the FTE contribution. For clarity, no individual person can ever constitute more than a single FTE. 

  
 7 

 1.57 “FTE Rate” means the rate of FTE costs incurred by Avidity,
which for the purpose of this Agreement is [* * *] Dollars ($[* * *]) per FTE per Calendar Year, subject to annual increases beginning on
[* * *] to reflect percentage increases in the Consumer Price Index for the US City Average (all times) from [* * *] and similarly calculated year to year
increases each subsequent Calendar Year. The FTE Rate includes costs of salaries, benefits, other human resources-related costs associated with the employment of employees, supplies (other than supplies specifically identified as separate costs to
be reimbursed by Lilly in the Research Plan), and supporting overhead and administrative allocations. 
 1.58 “Good Laboratory
Practices” or “GLPs” means all applicable Good Laboratory Practice standards, including, as applicable: (a) as set forth in the then-current good laboratory practice standards promulgated or endorsed by the
FDA as defined in 21 C.F.R. Part 58; and (b) the equivalent Applicable Laws in any relevant country, each as may be amended and applicable from time to time. 

1.59 “Good Manufacturing Practices” or “GMPs” means all applicable Good Manufacturing Practices
including, as applicable: (a) the principles detailed in the US Current Good Manufacturing Practices, 21 C.F.R. Parts 4, 210, 211, 601, 610 and 820; (b) European Directive 2003/94/EC and Eudralex 4; (c) the principles detailed in the WHO TRS
986 Annex 2, TRS 961 Annex 6 and TRS 957 Annex 2; (d) ICH Q7 guidelines; and (d) the equivalent Applicable Laws in any relevant country, each as may be amended and applicable from time to time. 

1.60 “Good Research Practices” or “GRP” means research practices consistent with: (a) the
research quality standards defining how Lilly’s research laboratories conduct good science for non-regulated work as set forth in Exhibit 4.10 Part A of this Agreement; and (b) the Research Quality Association (RQA), 2014 Quality
in Research Guidelines for Working in Non-Regulated Research, each as may be amended and applicable from time to time. 

1.61 “Governmental Authority” means any national, international, federal, state, provincial or local government, or
political subdivision thereof, or any multinational organization or any authority, agency or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, and any court or
tribunal (or any department, bureau or division thereof, or any governmental arbitrator or arbitral body). 
 1.62
“IND” means an investigational new drug application filed with the FDA or any similar application filed with a Regulatory Authority in a country other than the U.S. required to commence Clinical Trials of a pharmaceutical
product. 
 1.63 “Indemnitee” has the meaning set forth in Section 10.1.3. 

1.64 “Indemnitor” has the meaning set forth in Section 10.1.3. 

  
 8 

 1.65 “Infringement” has the meaning set forth in Section 8.3.1.

 1.66 “Initial Collaboration Targets” has the meaning set forth in Section 4.2.1. 

1.67 “Initial Data Package” has the meaning set forth in Section 4.3.2. 

1.68 “Initiation” means, with respect to a Clinical Trial, the first dosing in the first human subject in such Clinical
Trial. 
 1.69 “Inventions” means all discoveries and inventions, whether or not patentable, that are discovered,
conceived of, or reduced to practice by or on behalf of a Party (whether solely or jointly by the Parties) in the course of performing activities under this Agreement. 

1.70 “JRC” has the meaning set forth in Section 2.1. 

1.71 “JRC Chair” has the meaning set forth in Section 2.1. 

1.72 “Know-How” means any proprietary scientific or technical information,
inventions, discoveries, results and data of any type whatsoever, in any tangible or intangible form, including inventions, discoveries, databases, safety information, practices, methods, instructions, techniques, processes, drawings, documentation,
specifications, formulations, formulae, knowledge, know-how, trade secrets, materials, skill, experience, test data and other information and technology applicable to formulations, compositions or products or
to their manufacture, development, registration, use, marketing or sale or to methods of assaying or testing them, including pharmacological, pharmaceutical, medicinal chemistry, biological, chemical, biochemical, toxicological and clinical test
data, physical and analytical, safety, quality control data, manufacturing, and stability data, materials, studies and procedures, and manufacturing process and development information, results and data. 

1.73 “Lilly” has the meaning set forth in the Preamble. 

1.74 “Lilly Competitor” means a company that has consummated a Change of Control transaction with Avidity and that: (a)
[* * *]; and (b) either (i) [* * *], or (ii) [* * *]. 

1.75 “Lilly Indemnitee” has the meaning set forth in Section 10.1.1. 

1.76 “Lilly Know-How” means all
Know-How (including any Know-How that is Lilly Proprietary Technology) that Lilly or its Affiliate Controls as of the Effective Date or during the Term that is necessary
or reasonably useful for Research or that is used or generated by or on behalf of Lilly or its Affiliates in the course of conducting activities for a Program. Notwithstanding the foregoing, if any Third Party becomes an Acquirer of Lilly after the

  
 9 

 Effective Date pursuant to a Change of Control, Lilly Know-How will
exclude any Know-How that is Controlled by the Acquirer before the relevant Change of Control transaction or thereafter during the Term, provided, however, that Lilly Know-How will include any Know-How that would otherwise fall under the definition of Lilly Know-How that is contained in any Invention
that is discovered, conceived of, or reduced to practice by or on behalf of the Acquirer in performing any activity under this Agreement. 

1.77 “Lilly Patent” means any Patent that is Controlled by Lilly or its Affiliate as of the Effective
Date or during the Term that claims Lilly Know-How. Notwithstanding the foregoing, if any Third Party becomes an Acquirer of Lilly after the Effective Date pursuant to a Change of Control, Lilly Patents will
exclude any Patent that is Controlled by the Acquirer before the relevant transaction or thereafter during the Term, provided, however, that Lilly Patents will include any Patent that would otherwise fall under the definition of Lilly
Patents that claims an Invention that is made or generated by the Acquirer in performing any activity under this Agreement. 
 1.78
“Lilly Proprietary Technology” means Proprietary Technology of Lilly (or its Affiliates) that: (a) exists as of the Effective Date or is developed, acquired or in-licensed by Lilly
and/or any of its Affiliates during the Term outside the scope of its activities under the Research Plan; and (b) is not the same as any Avidity Proprietary Technology, provided that in the case of Lilly
Know-How (as opposed to Lilly Patents) that would otherwise be considered Lilly Proprietary Technology under this definition that is disclosed by Lilly or its Affiliate to Avidity (or its Affiliate), such Know-How shall only be considered Lilly Proprietary Technology to the extent it is marked or otherwise prominently designated to Avidity (or such Affiliate) as Lilly Proprietary Technology at the time of such
disclosure or immediately thereafter. 
 1.79 “Lilly Technology” means the Lilly
Know-How and Lilly Patents. For clarity, “Lilly Technology” includes all Lilly Proprietary Technology. 

1.80 “Losses” has the meaning set forth in Section 10.1.1. 

1.81 “Marketing Authorization” means, collectively, all Regulatory Approvals (including any pricing, reimbursement or
access approvals) from the relevant Regulatory Authority necessary to initiate marketing and selling a Product in any country or jurisdiction. 

1.82 “Milestone Events” means, individually or collectively, the Development Milestone Events, First Commercial Sale
Milestone Events, and Commercial Milestone Events. 
 1.83 “Milestone Payments” has the meaning set forth in
Section 7.2.1. 
 1.84 “Net Sales” means, with respect to a particular Product, the gross
amount invoiced by Lilly, its Affiliates, or any Sublicensee to Third Parties (excluding any Sublicensee) for such Product in the Territory, less the following deductions to the extent included in the gross amount invoiced for such Product: 

(a) [* * *]; 

  
 10 

 (b) [* * *]; 

(c) [* * *]; 

(d) [* * *]; 

(e) [* * *]; 

(f) [* * *]; 

(g) [* * *]; and 

(h) [* * *]. 

Such amounts shall be determined from the books and records of Lilly or applicable Sublicensee, maintained in accordance with U.S. GAAP or, in
the case of Sublicensees, such similar accounting principles, consistently applied. Lilly further agrees in determining such amounts, it will use Lilly’s then current standard procedures and methodology, including Lilly’s then current
standard exchange rate methodology for the translation of foreign currency sales into Dollars or, in the case of Sublicensees, such similar methodology, consistently applied. In no event will any particular amount identified above be deducted more
than once in calculating Net Sales. 
 Upon any sale or other disposition of a Product that should be included within Net Sales for any
consideration other than exclusively monetary consideration on bona fide arms’-length terms, then for purposes of calculating Net Sales under this Agreement, such Product is deemed to be sold exclusively for money at the average sales
price during the applicable reporting period generally achieved for such Product in the country in which such sale or other disposition occurred. 

In the event that the Product is sold as part of a Combination Product (where “Combination Product” means any
pharmaceutical product which comprises the Product and other active compound(s) or ingredient(s)), the Net Sales of the Product, for the purposes of determining royalty payments, shall be determined by
[* * *]. 
 In the event that the weighted average sale price of the Product can be determined
but the weighted average sale price of the other compound(s) or ingredient(s) cannot be determined, Net Sales for purposes of determining royalty payments shall be calculated by [* * *]. 

In the event that the weighted average sale price of the other compound(s) or ingredient(s) can be determined but the weighted average sale
price of the Product cannot be determined, Net Sales for purposes of determining royalty payments shall be calculated by [* * *]. 

In the event that the weighted average sale price of both the Product and the other compound(s) or ingredient(s) in the Combination Product
cannot be determined, the Net Sales of the Product shall be [* * *]. 
 The weighted average
sale price for a Product, other compound(s) or ingredient(s), or Combination Product shall be calculated [* * *] and such price shall be used during all applicable royalty-reporting periods for
[* * *]. When determining the weighted average sale price of a Product, other compound(s) or ingredient(s), or Combination Product, the weighted average sale price shall be calculated by
[* * *]. In the initial [* * *], a forecasted weighted average sale price will be used for the Product, other compound(s) or ingredient(s), or Combination
Product. Any over or under payment due to a difference between forecasted and actual weighted average sale prices will be paid or credited in the first royalty payment of the following [* * *]. 

  
 11 

 1.85 “Oligo” means a polymer consisting of either natural or
synthetic nucleotide units that is designed to hybridize to an RNA target by Watson and Crick base pairing rules. 
 1.86
“Party” and “Parties” has the meaning set forth in the Preamble. 
 1.87
“Patents” mean: (a) pending patent applications, issued patents, utility models and designs; (b) reissues, substitutions, confirmations, registrations, validations,
re-examinations, additions, continuations, continued prosecution applications, continuations-in-part, or divisions of or to any
of the foregoing; and (c) extensions, renewals or restorations of any of the foregoing by existing or future extension, renewal or restoration mechanisms, including supplementary protection certificates or the equivalent thereof. 

1.88 “Person” means any corporation, limited or general partnership, limited liability company, joint venture, trust,
unincorporated association, governmental body, authority, bureau or agency, any other entity or body, or an individual. 
 1.89
“Phase I Clinical Trial” means a clinical trial of a Product generally consistent with 21 C.F.R. § 312.21(a) (or the
non-United States equivalent thereof). 
 1.90 “Phase II
Clinical Trial” means a clinical trial of a Product generally consistent with 21 C.F.R. § 312.21(b) (or the non-United States equivalent thereof). 

1.91 “Phase III Clinical Trial” means a clinical trial
of a Product generally consistent with 21 C.F.R. § 312.21(c) (or the non-United States equivalent thereof). 

1.92 “Pricing and Reimbursement Approval” means, with respect to a Product, the approval, agreement, determination or
decision of any Regulatory Authority establishing the price or level of reimbursement for such Product, as required in a given country or jurisdiction prior to sale of such Product in such country or jurisdiction. 

1.93 “Product” means any pharmaceutical or biologic product in any dosage form or formulation that contains or
comprises a Compound. 
 1.94 “Product-Specific Patent” has the meaning set forth in Section 8.2.2. 

1.95 “Program” means, on a Collaboration Target-by-Collaboration Target basis,
any and all Research, development, manufacturing, and commercialization activities conducted under this Agreement with respect to any Compounds and Products that are Directed Against such Collaboration Target. 

1.96 “Program Patent” means a Patent that claims a Program Invention. 

1.97 “Program Invention” has the meaning set forth in Section 8.1.3. 

1.98 “Project Leader” has the meaning set forth in Section 2.1. 

1.99 “Proprietary Technology” of a Party means: (a) Patent rights Controlled by the Party and (b) Know-How that is Controlled by the Party. 

  
 12 

 1.100 “Prosecute and Maintain” or “Prosecution and
Maintenance” with respect to a particular Patent, means all activities associated with the preparation, filing, prosecution and maintenance of such Patent, together with the conduct of interferences, derivation proceedings,
inter partes review and post-grant review, the defense of oppositions and other similar proceedings with respect to that Patent, including any activities associated with claims, including as a counterclaim or declaratory judgment
action, of unpatentability, invalidity or unenforceability of such Patent that are brought by a Third Party in connection with an Infringement under Section 8.3. 

1.101 “Prosecuting Party” has the meaning set forth in Section 8.2.2. 

1.102 “Receiving Party” has the meaning set forth in Section 11.1.1. 

1.103 “Regulatory Approval” means, collectively, any and all approvals (including supplements, amendments, pre- and post-approvals, pricing and reimbursement approvals), licenses, registrations, permits, notifications, and authorizations (including marketing and labeling authorizations) or waivers of any Regulatory
Authority that are necessary for the testing, Research, development, registration, manufacture (including formulation), use, storage, import, export, transport, promotion, marketing, distribution, offer for sale, sale or other commercialization of a
pharmaceutical product (including any Compound or Product) in any country or jurisdiction, including Pricing and Reimbursement Approval, as applicable. 

1.104 “Regulatory Authority” means any Governmental Authority that has responsibility in its applicable jurisdiction
over the testing, Research, development, registration, manufacture (including formulation), use, storage, import, export, transport, promotion, marketing, distribution, offer for sale, sale or other commercialization of pharmaceutical products
(including any Compound or Product) in a given jurisdiction. For countries where governmental approval is required for pricing or reimbursement for a pharmaceutical product (including any Compound or Product) to be reimbursed by national health
insurance (or its local equivalent), Regulatory Authority includes any Governmental Authority whose review or approval of pricing or reimbursement of such product is required. 

1.105 “Regulatory Filing” means, collectively, any and all applications, filings, submissions, approvals (including
supplements, amendments, pre- and post-approvals, pricing and reimbursement approvals), licenses, registrations, permits, notifications, and authorizations (including marketing and labeling authorizations) or
waivers with respect to the testing, Research, development, registration, manufacture (including formulation), use, storage, import, export, transport, promotion, marketing, distribution, offer for sale, sale or other commercialization of a Product
made to or received from any Regulatory Authority in a given country, including INDs. 
 1.106 “Replacement Target”
has the meaning set forth in Section 4.2.2. 
 1.107 “Research” means, with respect to a Collaboration Target
and a Compound, any research and pre-clinical activities through delivery of a Data Package for such Collaboration Target, as set forth in the applicable Research Plan for such Collaboration Target. 

1.108 “Research Budget” has the meaning set forth in Section 4.3. 

1.109 “Research Plan” has the meaning set forth in Section 4.3. 

1.110 “Research Term” means the period of [* * *] from the Effective Date,
as may be extended by Lilly pursuant to Section 4.6. 

  
 13 

 1.111 “Reserved Target” has the meaning set forth in
Section 4.2.1. 
 1.112 “Residual” has the meaning set forth in Section 11.1.5. 

1.113 “Royalty Term” has the meaning set forth in Section 7.3.1. 

1.114 “Selection Period” has the meaning set forth in Section 4.2.1. 

1.115 “Sublicensee” means a Third Party that is granted a license or sublicense to research, develop, make, have made,
use, keep, import, export, offer for sale, sell, or otherwise exploit Compounds and Products in the Field in the Territory, beyond the mere right to purchase Products from Lilly and its Affiliates, and excludes Lilly’s Affiliates or Third Party
subcontractors that act solely for Lilly or its Affiliates in the supply chain or that perform discrete services (as opposed to being granted broad rights or responsibilities) on behalf of Lilly or its Affiliates. 

1.116 “Target” means: (a) a polynucleotide sequence corresponding to a sequence identified in a publicly available
curated database such as GenBank® by an accession number or similar information that uniquely identifies that sequence; (b) all variants of the identified sequence in human and other
species; (c) all post-transcriptional material encoded by the identified sequence and all variants, including all naturally-occurring, disease-associated, and non-naturally occurring truncations,
mutations, variants, fragments and post-transcriptional modifications thereof (including splice variants); (d) all post-translational material encoded by such post-transcriptional material including amino acid sequences and proteins; and/or
(e) all multimeric forms of (a) through (d). 
 1.117 “Term” has the meaning set forth in
Section 12.1. 
 1.118 “Terminated Product” means the relevant terminated Product as described in
Section 12.5. 
 1.119 “Terminated Target” means the relevant terminated Collaboration Target as described in
Section 12.5. 
 1.120 “Territory” means the entire world. 

1.121 “Third Party” means a Person other than: (a) Lilly or its Affiliates; and (b) Avidity or its
Affiliates. 
 1.122 “U.S.” means the United States of America and its territories and possessions. 

1.123 “Valid Claim” means a claim of the composition of matter or the method of use of a Compound or Product (or any
component thereof) for an approved use of such Product contained in: (a) an issued and unexpired patent that has not been revoked or held unenforceable, unpatentable or invalid by a decision of a court or other governmental agency of competent
jurisdiction that is not appealable or has not been appealed within the time allowed for appeal, and that has not been abandoned, disclaimed, denied or admitted to be invalid or unenforceable through reissue,
re-examination or disclaimer or otherwise; or (b) a pending patent application that has not been cancelled, withdrawn or abandoned or finally rejected by an administrative agency action from which no
appeal can be taken and that has not been pending for more than [* * *] from the date of its earliest priority date (provided that upon the issuance of a claim from such patent application, such claim
shall again be deemed to be a Valid Claim (subject to Section 1.123(a))). 

  
 14 

 1.124 “Working Group” has the meaning set forth in Section 2.3.

 ARTICLE 2 

GOVERNANCE AND JOINT RESEARCH COMMITTEE 

2.1 Project Leader. Within [* * *] following the Effective Date, Lilly and Avidity shall
each assign one (1) employee to serve as the primary point of contact between the Parties with respect to each Collaboration Target being prosecuted under the Programs (each, a “Project Leader”). The Project Leaders
shall regularly communicate with each other to address Program-related issues, needs and updates and facilitate communications and organization of Working Groups associated with the Research Plan. Either Party, upon prior notice to the other Party,
may change its Project Leader. 
 2.2 Alliance Manager. Within [* * *] following the
Effective Date, each Party shall also appoint an individual to act as the Alliance Manager for such Party (each, an “Alliance Manager”). Each Alliance Manager shall thereafter be permitted to attend meetings of the JRC and
any sub-committee as a nonvoting observer. The Alliance Managers shall be the primary point of contact for the Parties regarding the collaboration activities contemplated by this Agreement (other than the
activities/responsibilities of the Project Leader outlined in Section 2.1) and shall help facilitate all such activities hereunder. For avoidance of doubt, the individual appointed by a Party to act as an Alliance Manager may, but need not, be
the same individual appointed by such Party as a Project Leader. 
 2.3 Working Groups. The Parties shall establish working groups
(each, a “Working Group”) to oversee the activities of the Research Plan. In addition, from time to time, the Parties may establish a Working Group to oversee particular additional projects or activities. Each Working Group
shall undertake the activities delegated to it by the JRC. During the process of establishing each Working Group, such Working Group and the JRC shall agree regarding which matters such Working Group will resolve on its own and which matters such
Working Group will advise the JRC regarding (and with respect to which such advice-specific matters the JRC will resolve). In addition to the Collaboration Target-specific Working Groups overseen by the respective Project Leaders, the Parties shall,
at a minimum, establish three (3) additional Working Groups to oversee, respectively, (i) Collaboration Materials transfer pursuant to Section 3.4, (ii) the manufacturing supply chain for the Products, and (iii) the strategy
for prosecution and maintenance of Patents that claim Program Inventions or that are Controlled by Avidity and exclusively licensed to Lilly under this Agreement. 

2.4 Joint Research Committee. Within [* * *] after the Effective Date, the Parties shall
establish a cross-functional, joint research committee (the “JRC”) composed of three (3) senior representatives from each Party that will oversee and manage the collaboration between the Parties with respect to each
Program during the Research Term. The JRC may, from time to time, establish subcommittees as it deems necessary to further the purposes of this Agreement. Each Party shall appoint its respective representatives to the JRC from time to time, and may
change its representatives, in its sole discretion, effective upon notice to the other Party designating such change. The representatives from each Party shall have appropriate technical credentials, experience and knowledge pertaining to and
ongoing familiarity with the Research and applicable Programs. One (1) of the Lilly representatives on the JRC shall be designated the JRC Chair (the “JRC Chair”). The JRC Chair will be responsible for calling meetings
of the JRC, circulating agendas and performing administrative tasks required to assure efficient operation of the JRC but shall not have any extra or additional vote. 

2.5 Function and Powers of the JRC. The JRC will: 

  
 15 

 (a) prepare, discuss, and approve initial Research Plans for each Program and prepare,
review, discuss, and approve any amendments that may be necessary or desired to the Research Plans; 
 (b) oversee the generation and
implementation of the Research Plans, including the timing and deliverables thereunder; 
 (c) discuss the progress of the Research and the
selection, validation and development of the Collaboration Targets, Compounds, and Products; 
 (d) make determinations as to whether a
Development Candidate should be further optimized by the Parties under and pursuant to the Research Plan; 
 (e) provide a forum for the
Parties to share and discuss information relating to the research and validation of the Collaboration Targets (including Replacement Targets), Compounds and Products, including the results of the activities being carried out under the Research
Plans; 
 (f) address issues arising in the performance of the Research Plans; 

(g) establish subcommittees, direct and oversee any operating subcommittee on all significant issues, and resolve disputed matters that may
arise at the subcommittees; 
 (h) facilitate the exchange of Know-How and Collaboration Materials as
required hereunder; and 
 (i) perform any and all tasks and responsibilities that are expressly attributed to the JRC under this Agreement
or as otherwise agreed by the Parties in writing. 
 2.6 Meetings. The JRC will meet at least
[* * *] during the Research Term. The JRC may conduct such meetings by telephone, videoconference, or in person. Each Party may call special meetings of the JRC with at least
[* * *] prior written notice, or a shorter time period in exigent circumstances, to resolve particular matters requested by such Party that are within the purview of the JRC. Meetings of the JRC are
effective only if at least one (1) representative of each Party participates in such meeting. Each Party may invite a reasonable number of participants, in addition to its representatives, to attend JRC meetings in a non-voting capacity; provided that if either Party intends to have any Third Party (including any consultant) attend such a meeting, such Party shall provide prior written notice to the other Party. Such
Party shall ensure that such Third Party is bound by confidentiality and non-use obligations consistent with the terms of this Agreement. Each Party is responsible for its own expenses incurred in connection
with participating in and attending all such meetings. The JRC Chair or his/her designee shall keep minutes of each JRC meeting that records in writing all decisions made, action items assigned or completed and other appropriate matters. The JRC
Chair shall send meeting minutes to all members of the JRC promptly after a meeting for review. Each member shall have [* * *] from receipt in which to comment on and to approve the minutes (such approval
not to be unreasonably withheld, conditioned or delayed). If a member, within such time period, does not notify Lilly that s/he does not approve of the minutes, the minutes shall be deemed to have been approved by such member. 

2.7 Decisions. The JRC will endeavor to make decisions by consensus, with the representatives of each Party having, collectively, one
(1) vote on behalf of that Party. If the JRC cannot reach consensus or a dispute arises that cannot be resolved within the JRC, either Party may refer such dispute to the Executive Officers for resolution. If consensus cannot be reached with
respect to a decision 

  
 16 

 
within [* * *] after attempted resolution by the Executive Officers, then: (a) [* * *] has the final
decision-making authority with respect to all matters within the purview of the JRC relating to [* * *], including matters relating to [* * *] and
[* * *] and [* * *] (including whether [* * *]), with respect to which
[* * *] and [* * *]; and (b) all other matters within the purview of the JRC require the mutual agreement of the Parties; provided, however,
that [* * *] shall not resolve any such a matter in a manner that: (i) would require [* * *], in each case, other than as is included in
[* * *]; (ii) excuses, reduces, or delays [* * *] obligations under this Agreement, including with respect to payments; (iii) negates any consent right or
other rights specifically granted or allocated to [* * *] under this Agreement; (iv) amends, modifies, or waives compliances with the terms of this Agreement; or (v) materially increases
[* * *] obligations (including payment obligations) as a result. Further, [* * *] shall have the right to [* * *],
provided such implementation is consistent with [* * *]. 
 2.8 Authority. The JRC, the
JRC Chair, and each subcommittee has only the powers assigned expressly to it in this Article 2 and elsewhere in this Agreement, and does not have any power to amend, modify, or waive compliance with this Agreement. Each Party retains the rights,
powers, and discretion granted to it under this Agreement and neither Party may delegate or vest such rights, powers, or discretion in the JRC or subcommittee unless expressly provided for in this Agreement or the Parties expressly so agree in
writing. The JRC shall not have the power to amend, waive or modify any term of this Agreement, and no decision of the JRC shall be in contravention of any terms and conditions of this Agreement. It is understood and agreed that issues to be
formally decided by the JRC are limited to those specific issues that are expressly provided in this Agreement to be decided by the JRC. 

2.9 Discontinuation of JRC. The JRC will continue until the expiration of the Research Term, at which time the JRC shall be promptly
disbanded with immediate effect. 

  
 17 

 ARTICLE 3 

LICENSES; EXCLUSIVITY 

3.1 License Grants. 

3.1.1 Grant to Lilly. Subject to the terms and conditions of this Agreement, Avidity (on behalf of itself and its Affiliates) hereby
grants to Lilly an exclusive (even as to Avidity and its Affiliates), worldwide, royalty-bearing license, with the right to grant sublicenses (through multiple tiers) as provided in Section 3.2, under the Avidity Technology to research,
develop, make, have made, use, keep, import, export, offer for sale, sell, or otherwise exploit Products in the Field in the Territory. For clarity, the license granted to Lilly under this Section 3.1.1 does not include the right of Lilly to
practice the Avidity Technology to research, develop, make, have made, use, keep, import, export, offer for sale, sell, or otherwise exploit any compounds or products other than the Compounds and Products (or compounds or products intended to become
Compounds or Products) under this Agreement. 
 3.1.2 Grant to Avidity. Subject to the terms and conditions of this Agreement, Lilly
hereby grants to Avidity a worldwide, fully paid, royalty-free, non-sub-licensable (except to Affiliates and Third Party subcontractors solely as needed to perform
services for Avidity under this Agreement), non-exclusive license under the Lilly Technology, solely as and to the extent necessary to conduct Research pursuant to the Research Plans during the Research Term.

 3.2 Sublicenses. Lilly and its Affiliates may grant one or more sublicenses under the rights and licenses granted to Lilly under
Section 3.1.1, in full or in part, to Third Parties (with the right to sublicense through multiple tiers); provided, however, that: (a) any such permitted sublicense is consistent with and subject to the terms and conditions
of this Agreement; and (b) Lilly shall remain responsible for performance of Lilly’s obligations under this Agreement and shall be responsible for all actions of each such Sublicensee as if such Sublicensee were Lilly hereunder. Lilly
shall provide Avidity with prompt written notice of any grant of sublicense to a Third Party in the United States or Japan of the rights and licenses granted to Lilly under Section 3.1.1 that includes the right for such Third Party to
(i) manufacture and (ii) sell or offer to sell, the Product in the applicable jurisdiction (but excluding any sublicenses solely for the distribution, marketing or promotion of Products), and shall provide Avidity with an executed copy of
any such sublicense promptly after execution of such sublicense, redacted solely as necessary to protect confidential or commercially sensitive information. 

3.3 Subcontracting. Subject to the terms of this Section 3.3 and Section 9.3, Lilly may engage its Affiliates or Third Party
subcontractors (including contract research organizations and contract manufacturing organizations) to perform its obligations under this Agreement, and Avidity may engage its Affiliates or Third Party subcontractors (including contract research
organizations and contract manufacturing organizations) to perform such portions of its Research obligations under this Agreement that it customarily engages for its other similar research activities. The activities of any such Third Party
subcontractors will be considered activities of such subcontracting Party under this Agreement. The subcontracting Party shall ensure compliance by such Third Party subcontractors with the terms of this Agreement, including any applicable Research
Plans. The subcontracting Party shall ensure, prior to engaging any Third Party subcontractor, that such Third Party subcontractor is subject to written agreements containing terms and conditions that: (a) protect the rights of the Parties
under this Agreement, including by imposing obligations of confidentiality on each such Third Party subcontractor that are no less than the obligations of confidentiality on each Party under this Agreement; (b) do not under any circumstance
impose any payment obligations or liability on the non-subcontracting Party; and (c) are otherwise consistent with the terms of this Agreement. 

  
 18 

 3.4 Collaboration Materials Transfer. If either Party is required to transfer to the
other Party any Collaboration Materials pursuant to the Research Plan, the terms of this Section 3.4 shall apply. The transferring Party shall provide the other Party with the applicable Collaboration Materials in accordance with the Research
Plan. The receiving Party shall use the Collaboration Materials solely to conduct the activities contemplated under the Research Plan and for no other purpose. The receiving Party shall not sell, transfer, disclose or otherwise provide access to the
Collaboration Materials without the written consent of the providing Party, except that the receiving Party may allow access to the Collaboration Materials to its Affiliates and its and their respective employees and officers who require such access
to perform its activities under this Agreement and solely for purposes consistent with this Agreement; provided that the receiving party binds such Affiliates, employees and officers by written agreement to retain and use the Collaboration
Materials only in a manner that is consistent with the terms of this Agreement. THE COLLABORATION MATERIALS ARE PROVIDED “AS IS.” WITHOUT LIMITING SECTIONS 9.1 AND 9.2, NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY KIND, ARE
GIVEN BY THE PROVIDING PARTY WITH RESPECT TO ANY OF THE COLLABORATION MATERIALS, INCLUDING THEIR CONDITION, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. The receiving Party acknowledges the experimental nature of the Collaboration Materials
and that accordingly, not all characteristics of the Collaboration Materials are necessarily known. The Collaboration Materials transfer to be undertaken under this Section 3.4 shall be overseen by a Working Group established for such purposes,
which Working Group may put in place a Collaboration Materials transfer plan expressly identifying Collaboration Materials to be transferred and the timing for such transfer. 

3.5 Exclusivity. 
 3.5.1
General. Except in connection with the performance of activities under this Agreement, Avidity shall not (by itself or through any Third Party) and shall cause its Affiliates (by themselves or through any Third Party) not to during
(a) the [* * *] (with respect to any Reserved Target that [* * *]), (b) the [* * *] (with respect to
[* * *]), or (c) the Term (with respect to a given Collaboration Target), in each case: (i) research, develop, manufacture, commercialize or otherwise exploit any compound or product that is
[* * *]; or (ii) sell, assign, transfer, convey, license, sublicense, covenant not to assert or otherwise grant, or transfer to, any Third Party, any rights or immunities to or under the Avidity
Technology to conduct such activities described in Section 3.5.1(a). 

  
 19 

 3.5.2 Avidity Acquisition of Existing Competing Program. Notwithstanding
Section 3.5.1, if after the Effective Date any Third Party becomes an Affiliate of Avidity that Avidity controls (as such term is defined in the definition of “Affiliate”) as a result of a merger, acquisition, consolidation, asset
sale, or other similar transaction (whether in a single transaction or series of related transactions), and, as of the closing date of such transaction, such Third Party is engaged in: (a) the research, development, manufacture,
commercialization, or other exploitation of a compound or product; or (b) the licensing, conveyance, sublicensing or other grant of rights in Patents and Know-How with respect to such a compound or
product, in each case of (a) and (b) that would cause Avidity to breach its exclusivity obligations set forth in Section 3.5.1 (such activities, a “Competing Program”), then Avidity shall notify Lilly of such
transaction within [* * *] after the closing date of such transaction, and Avidity shall (or shall cause such Affiliate to), within [* * *] after the closing
of such transaction, either: (i) complete a Divestiture of such Competing Program; or (ii) cease and terminate the Competing Program. “Divestiture,” as used in this Section 3.5.2 and Section 3.5.3, means
the sale or transfer of rights to the Competing Program by Avidity to a Third Party without receiving a continuing share of profit, royalty payment, or other economic interest in the success of such Competing Program. 

3.5.3 Existing Competing Program of an Acquirer. Subject to Section 14.8 and notwithstanding Section 3.5.1, if after the
Effective Date any Third Party becomes an Acquirer of Avidity as a result of a Change of Control of Avidity, and, as of the closing date of such transaction, such Third Party is engaged in a Competing Program, then Avidity shall notify Lilly of such
transaction within [* * *] after the closing date of such transaction, and Avidity shall (or shall cause its Acquirer or successor entity to), within [* * *]
after the closing of such transaction, either: (a) continue such Competing Program and implement and enforce effective walls and screens between personnel working in the business of Avidity related to the transactions contemplated by this
Agreement, on the one hand, and the Competing Program, on the other hand, to ensure that no information relating to any Compounds or Products or the transactions contemplated by this Agreement is accessible by such Acquirer (or any of its
Affiliates) in connection with the Competing Program; (b) complete a Divestiture of such Competing Program; or (c) cease and terminate the Competing Program. 

3.5.4 Other Activities. Except as expressly provided in this Article 3, each Party may: (a) engage in research, manufacturing,
development or commercialization activities that utilize technologies similar to or involve products competitive with those contemplated by this Agreement; and (b) use any publicly available information and research results (including any
publicly available information of the other Party) to the same extent as Third Parties generally are legally permitted to do so. Except as expressly provided in this Agreement, nothing in this Agreement, including any obligation to promote Products
or any restriction on the use of Confidential Proprietary Information, shall create: (i) any obligation not to research, develop, manufacture, commercialize or otherwise exploit any product; or (ii) any obligation to utilize a sales force
for Products separate from sales forces for other products. Each Party has limited resources, and as a result it is anticipated that personnel assigned to the activities contemplated by this Agreement may also participate in other activities that
may utilize technologies similar to or involve products competitive with those contemplated by this Agreement. 

  
 20 

 3.5.5 Active Development. Notwithstanding anything to the contrary, including
Section 3.5.4, if Lilly is researching, developing, manufacturing, commercializing or otherwise exploiting any compound or product comprising an AOC that is Directed Against a Collaboration Target during the Term and Lilly is not Actively
Developing any Compound or Product that is Directed Against such Collaboration Target, then such Collaboration Target will be deemed a Discontinued Target and the terms of Section 4.7 will apply; provided, however, that the foregoing shall
cease to apply following the First Commercial Sale of a Product Directed Against such Collaboration Target. “Actively Developing” means that Lilly or any of its Affiliates or Sublicensees are engaging in or have engaged
within the preceding [* * *] in one or more of the following activities for a Compound or Product: pre-clinical research and development; formulation development;
study/protocol design activity; protocol preparation; vendor selection; awaiting protocol approval from the applicable institutional review board or Regulatory Authority; patient recruitment; patient enrollment; patient treatment, evaluation and
monitoring in Clinical Trials; data collection and analysis; auditing of vendors, clinical sites, manufacturing facilities and storage facilities; report writing for any pre-clinical or clinical study or
manufacturing activity; communicating or negotiating with Regulatory Authorities; regulatory file(s) being drafted or pending (including preparation of one or more applications for Regulatory Approval); awaiting a response from the applicable
Regulatory Authorities (including with respect to pending applications for Regulatory Approval); pricing or reimbursement approvals pending; manufacturing investment work; packaging development; manufacturing
scale-up and validation; awaiting go/no go decision from a formal research and development committee within Lilly or such Affiliate or Sublicensee to initiate or continue any of the preceding activities;
negotiating contracts with Third Parties to implement any of the foregoing activities (e.g., clinical trial agreements, services agreements, manufacturing and supply agreements); publication writing; seeking licensing partners; endeavoring to
overcome circumstances outside of Lilly’s or its Affiliate’s, or Sublicensee’s reasonable control (including supply, regulatory and other issues) that impair the ability of Lilly or its Affiliate or Sublicensee to perform any of the
foregoing activities; reasonable, good faith planning or preparation for any of the foregoing activities; and reasonable, good faith evaluation of the results of any of the foregoing activities with the goal of making a timely recommendation for
next steps. 
 3.6 No Other Rights; Retained Rights. Except as set forth herein, neither Party shall be granted, by implication or
otherwise: (a) any license or other intellectual property interest under any trademarks, Know-How, or Patents of the other Party; or (b) any Proprietary Technology of the other Party. Except as
expressly granted under Section 3.1.1 and as limited by Section 3.5.1, Avidity and its Affiliates retain all other right, title, and interest in and to practice and exploit the Avidity Technology. Furthermore, notwithstanding anything to
the contrary in this Agreement, by entering into this Agreement, neither Party is forfeiting any rights that such Party may have to perform research activities in compliance with 35 U.S.C. § 271(e)(1) or any experimental or research use
exemption that may apply under Applicable Law or in any country. 
 ARTICLE 4 

RESEARCH ACTIVITIES 
 4.1
Overview. During the Research Term, the Parties shall conduct Research for each Program to: (a) during the Selection Period described in Section 4.2, perform activities to determine the feasibility of researching and developing
compounds directed to each Reserved Target to permit Lilly to select Collaboration Targets pursuant to Section 4.2.1; (b) pursuant to the applicable Research Plan, validate Collaboration Targets selected pursuant to Section 4.2.1;
(c) pursuant to the applicable Research Plan, identify, develop, optimize, and select development candidates, each consisting of a Compound that is Directed Against a Collaboration Target (a 

  
 21 

 
“Development Candidate”); and (d) pursuant to the applicable Research Plan, formulate Products following selection of Development Candidates for further research and
development pursuant to Section 4.4. Lilly may select up to six (6) Collaboration Targets and may replace up to [* * *] Collaboration Targets pursuant to Section 4.2. Avidity shall provide
Lilly with the deliverables described in each Research Plan pursuant to Section 4.3. Following receipt of the Data Package, as further described in Section 4.4, the JRC shall select one or more Development Candidates for the applicable
Collaboration Target. Both Parties acknowledge and agree that, during the Research Term, the Parties may collaborate to combine their respective Proprietary Technologies to optimize the desired pharmaceutical, CMC or safety profile of the Compound
or Product. Notwithstanding anything to the contrary in the Research Plan, Lilly shall have sole control and responsibility for the research of Antibodies to be used in Compounds and any research of Antibodies shall be outside the scope of the
Research Plans. In addition, Lilly is free to perform Research on Compounds (or compounds intended to become Compounds) outside the scope of the Research Plan using its own resources. 

4.2 Collaboration Targets. Lilly may select and replace Collaboration Targets pursuant to this Section 4.2. The number of
Collaboration Targets under active Research at any given time shall be: (a) no fewer than [* * *] during each of the first [* * *] of the Research Term;
and (b) no more than [* * *] at any time during the Research Term. 
 4.2.1 Selection of
Initial Collaboration Targets. As of the Effective Date, the Parties have identified the Targets set forth in Exhibit 4.2.1 as Targets to be reserved under this Agreement (the “Reserved Targets”). Within the period
between the Effective Date and [* * *] following the Effective Date (the “Selection Period”), Lilly shall identify to Avidity in writing at least [* * *] and up to [* * *] of
the Reserved Targets as the initial Targets to be Researched under Research Plans subject to this Agreement (the “Initial Collaboration Targets”). During the applicable timeframe described in this sentence, Lilly may propose
additional Targets (excluding [* * *] Targets) during: (a) the [* * *] of the Selection Period with respect to any Reserved Targets that are not [* * *]; and (b) the Selection Period, with
respect to any Reserved Targets that are [* * *]; Lilly may propose additional Targets to be added as Reserved Targets. If such Target(s) satisfy the requirements of being a “Replacement Target” under Section 4.2.2,
such Target(s) shall be deemed Reserved Target(s) and Exhibit 4.2.1 shall be deemed to be updated to include such Target(s) as Reserved Target(s). Following: (a) the [* * *] of the Selection Period, with respect
to any Reserved Targets that are not [* * *]; and (b) the Selection Period, with respect to any Reserved Targets that are[* * *]; any such Reserved Targets not selected as Initial Collaboration Targets shall
cease to be Reserved Targets and shall no longer be subject to this Agreement (including Section 3.5), except that such Targets may be selected as Replacement Targets of Collaboration Targets to the extent they otherwise satisfy the
requirements of Section 4.2.2. 
 4.2.2 Replacement of Collaboration Targets. Lilly may, at any time during the Research
Term, replace a Collaboration Target with another Target (excluding [* * *] Targets) (a “Replacement Target”) up to [* * *] times upon
written notice to Avidity and with Avidity’s written approval, which approval Avidity may withhold only if Avidity or any of its Affiliates: (a) has commenced or is actively conducting a bona fide internal program consisting of
research and development activities to research and develop any compound or product that is Directed Against the proposed Replacement Target[* * *]; (b) has an [***] that would conflict with the
inclusion of the Replacement Target as a Collaboration Target under this Agreement or would prevent or conflict with the exclusivity that Lilly would otherwise have under Section 3.5 with respect to such Target if included as a Collaboration
Target hereunder; or (c) has an [* * *] and [* * *]. Upon Avidity’s written approval, the previous Collaboration Target shall cease to be a
Collaboration Target and become a Discontinued 

  
 22 

 
Target, and the Replacement Target shall become a Collaboration Target. If Avidity disapproves of a proposed Replacement Target for one of the reasons specified above, and at a later time that
reason no longer applies to the Replacement Target (because, for example, Avidity has discontinued an internal program to research and develop a compound or product Directed Against the proposed Replacement Target), Avidity shall promptly notify
Lilly and if Lilly has not yet selected its maximum number of Replacement Targets, Lilly may select the Target subject to the notification as a Replacement Target. For clarity, Lilly may exercise such replacement right up to a total of
[* * *] times for all Collaboration Targets, and the maximum number of Replacement Targets that may become Collaboration Targets is [* * *] total. For further
clarity, any Targets that are chosen as replacements of Reserved Targets during the Selection Period shall not be considered Replacement Targets and shall not count towards the [* * *] maximum number of
Replacement Targets (except with respect to any Target that is not selected as an Initial Collaboration Target but is subsequently chosen as a Replacement Target for a Target selected as a Collaboration Target). 

4.2.3 Research Discontinuance. Without limiting Sections 12.3.1 and 12.3.2, subject to Lilly maintaining a Program for at least
[* * *] Collaboration Targets during the first [* * *] after the Effective Date, Lilly may discontinue the Research with respect to a Collaboration Target at
any time upon [* * *] prior written notice to Avidity. Upon expiration of such [* * *] period, such Target shall cease to be a Collaboration Target and become
a Discontinued Target. 
 4.3 Research Plans. 

4.3.1 Content. The Parties shall conduct Research for each Collaboration Target pursuant to a comprehensive written research plan (each,
a “Research Plan”) that sets forth, for each Program: (a) the objective of the applicable Research Plan and the non-clinical Research activities to be conducted by each of the
Parties to validate such Collaboration Target and to identify, develop, optimize, and select a Development Candidate, and the allocation of activities between the Parties; (b) the expected resources to be allocated to and the anticipated number
of FTEs to be dedicated to performing such Research; (c) a budget setting out by Calendar Quarter the anticipated Avidity Internal Costs and the Avidity External Costs to be 

  
 23 

 
incurred by Avidity and its Affiliates in the conduct of the Research for such Program (the “Research Budget”); (d) the timeline and milestones of such
activities; and (e) the Data Package. The Research Plans shall, in form and substance, substantially follow the form of Research Plan, in form and substance, as set forth on Exhibit 4.3, including with respect to the general
principles for allocation of responsibilities set forth therein, except to the extent the Parties agree to any deviations from such form with respect to any particular Collaboration Target. 

4.3.2 Approval and Amendments. Within [* * *] of the selection of a Collaboration Target
(including any Replacement Target selected under Section 4.2.2), the Parties shall prepare, discuss, and mutually agree on the Research Plan for such Collaboration Target, and shall determine the Data Package specific for such Collaboration
Target that constitutes a collection of information and pre-clinical results necessary to determine whether a particular Development Candidate Directed to such Collaboration Target will be further developed in
IND-enabling studies (the “Initial Data Package”). The JRC shall regularly review the Research Plans and the progress of activities being conducted under the Research Plans, in no event less
frequently than [* * *]. Either Party may propose amendments to the Research Plan for a Program from time to time as appropriate, to take into account completion, commencement, or cessation of activities
contemplated in the then-current Research Plan for such Program or any newly available information related to such Program. Such amendments shall be effective upon JRC approval and subject to the decision making in accordance with Section 2.7,
provided that any amendment to the Data Package (including the Initial Data Package) shall be subject to the mutual agreement of the Parties, and neither Party shall unreasonably withhold such agreement for any amendment to the Data Package as a
result of new scientific findings unless amendment based on such scientific findings would be necessary or consistent with the general practices customarily followed by Lilly. Notwithstanding the foregoing, if the Parties are unable to agree on an
amendment to a Data Package (including whether or not such amendment is necessary or useful) despite their good faith efforts, [* * *] determination shall control. The Parties shall update the Research
Plan and/or Research Budget as appropriate to account for the change in activities thereunder as a result of any amendment to the Data Package. 

4.4 Selection of Development Candidate. Within [* * *] after Avidity delivers a complete
Data Package (which the Parties agree is accurate and complete in all material respects) to the JRC, the JRC shall determine whether a Development Candidate should be further optimized by the Parties under and pursuant to the Research Plan. Upon
designation of a Development Candidate for further development under this Agreement, the Parties shall perform such additional Research allocated to them under the applicable Research Plan for formulation of a Product and further optimization of
such Product. If the [* * *] time period lapses without a decision by the JRC, then the dispute resolution provisions of Section 2.7 shall apply, with
[* * *] having the final authority on the determination of whether a Development Candidate should not be further developed under this Agreement. If the JRC (or the Executive Officers or
[* * *], in the case of the preceding sentence where the [* * *] time period lapses without a decision by the JRC) determines that a Development Candidate
should not be further developed under this Agreement, the applicable Collaboration Target will cease to be a Collaboration Target and will be a Discontinued Target subject to Section 4.7. Subject to Section 4.2.2 (including the maximum
number of Replacement Targets set forth in Section 4.2.2), Lilly may elect to replace such Discontinued Target with a Replacement Target. 

  
 24 

 For avoidance of doubt, if Lilly has expressed in such [* * *]
period its intention to pursue a Development Candidate for further optimization, then the end of the [* * *] period shall not itself result in the Collaboration Target becoming a Discontinued Target
unless and until determined by the JRC (or the Executive Officers or [* * *]). 
 4.5
Records; Reports. 
 4.5.1 Records. Avidity (and Lilly, to the extent any Research is assigned to Lilly under a Research Plan)
shall maintain, or cause to be maintained, during the Research Term and for a reasonable period of time thereafter that is consistent with industry standards, complete and accurate records of its Research for each Program in sufficient detail and in
a good scientific manner appropriate for scientific, patent, and regulatory purposes, which records will reasonably reflect all work performed by or on behalf of such Party under the Research Plan for each Program. Lilly may request a copy of any
such records of Avidity, except that Avidity may redact any portion of such records that Avidity reasonably determines to constitute Confidential Proprietary Information that is not licensed to Lilly hereunder, or to which Lilly does not otherwise
have a right hereunder. 
 4.5.2 Reports and Data Package. Avidity (and Lilly, to the extent any research is assigned to Lilly under a
Research Plan) shall report to Lilly (or Avidity, if applicable) through the JRC (or its designated subcommittee) its results in conducting Research under the Research Plan for each Program. For each Program, Avidity shall provide the JRC with:
(a) the deliverables set forth in the Research Plan for such Program in accordance with such Research Plan, including a written report summarizing the data and information generated under each Program within
[* * *] after the completion of Avidity’s Research for such Program; and (b) on a periodic basis during the Research Term, all data generated by or on behalf of Avidity in performance of the
Research for such Program under this Agreement. In no event will Avidity be required to provide Lilly or the JRC any data, results, or information outside the scope of the Research Plan. 

4.6 Research Term Extension. Notwithstanding anything to the contrary, Lilly may, in its sole discretion, extend the Research Term in up
to [* * *] additional increments of no less than [* * *] each, for up to a total of [* * *] of additional
extension each upon written notice to Avidity at least [* * *] prior to the expiration of the existing Research Term. The Research Term may not exceed [* * *]
after the Effective Date without Avidity’s prior written consent. If Lilly desires that Avidity conduct additional research or development activities after the expiration of the Research Term and Avidity agrees, in its sole discretion, to
conduct such additional activities, the Parties shall negotiate in good faith the terms and conditions of Avidity’s conduct of such additional activities. 

4.7 Discontinued Targets. Once a Collaboration Target becomes a Discontinued Target: (a) all rights and licenses granted under this
Agreement will terminate with respect to such Discontinued Target; and (b) either Party may develop and commercialize compounds and products that are Directed Against such Discontinued Target at its own cost. For clarity, the exclusivity
obligations of Section 3.5 do not apply to a Discontinued Target. If such Discontinued Target or the Compound Directed Against such Discontinued Target is Covered by a Lilly Patent, the Parties shall reasonably cooperate to discuss in good
faith a potential separate 

  
 25 

 
agreement detailing the transition to Avidity of Lilly’s rights and obligations (or portions thereof) with respect to such Discontinued Target or Compound Directed Against such Discontinued
Target, which shall at least include the obligation for Avidity to assume applicable obligations to Third Parties, and may provide for the payment of royalties or other compensation by Avidity to Lilly for the Commercialization by Avidity of any
Compound that includes any Lilly Patent; and provided, however, that Lilly shall have no obligation to grant Avidity a license to any Excluded Technologies or to discuss any such license as part of such good faith discussions. Notwithstanding the
foregoing, if the Parties are unable to agree on the terms of such a separation agreement within [* * *] of commencement of discussions with respect thereto despite their good faith efforts, Lilly shall
have no further obligation to enter into such an agreement or negotiate with Avidity with respect thereto. 
 4.8 Diligence. Each
Party shall use Commercially Reasonable Efforts to execute and to perform, or cause to be performed, the Research assigned to it in each Research Plan in a good scientific manner and in compliance with Applicable Law. 

4.9 Research Funding.  

4.9.1 Avidity Research Costs. Lilly shall reimburse Avidity for all Avidity Research Costs for each Program, provided, that such Avidity
Research Costs do not exceed [* * *] percent ([* * *]%) of the applicable Research Budget for such Program. If Avidity reasonably anticipates that it will exceed [* * *] percent
([* * *]%) of the applicable Research Budget for a Program, Avidity shall notify Lilly in writing and the Parties shall discuss in good faith whether to amend the Research Budget to address such overrun, provided that Avidity shall
maintain the Avidity Research Costs to avoid such budget overrun absent any change in the Research Plan or any scientific or regulatory reasons beyond the reasonable control of Avidity (taking into account matters of objectively reasonable
calculation and efficiency of application of Avidity Research Costs); further provided that (subject to the foregoing provision) Avidity shall not be required to perform any research activities or other development activities if such
activities would result in any Avidity Research Costs that would not be reimbursed by Lilly. 
 4.9.2 Cost Calculation
Mechanism. The Avidity Research Costs, and any other costs for which this Agreement requires Lilly reimburse or be responsible for Avidity’s costs, shall be calculated in accordance with this Section 4.9.2 as follows: 

(a) Lilly shall compensate Avidity for Avidity Research Costs, provided that the nature and scope of the work performed by Avidity:
(i) is set forth in the Research Plan; or (ii) has otherwise been approved in advance in writing by Lilly; 
 (b) Avidity shall
invoice Lilly for reimbursement of Avidity Internal Costs for each Program on a [* * *] within [* * *] following the end of the applicable Calendar Quarter.
Lilly shall then have [* * *] after its receipt of such invoice to review such invoice and raise any disputed amounts to Avidity. If Lilly does not dispute any amounts payable under an applicable invoice
during such [* * *] period, then Lilly shall pay the amounts payable under any such invoice in arrears and within [* * *] following such
[* * *] review period (i.e., [* * *] after its receipt of such invoice). Avidity shall submit with each invoice information and documentation
detailing the FTE costs applicable to Avidity’s efforts for such applicable Calendar Quarter period, including the work packages of the Research Plan items worked on and the number of FTEs assigned to each work package; 

  
 26 

 (c) Notwithstanding the foregoing, Avidity External Costs incurred by Avidity in accordance
with the Research Plan shall be invoiced separately by Avidity upon Avidity’s receipt of the applicable Third Party’s invoice. Irrespective of whether such payments are made in advance or in arrears, Lilly shall then have
[* * *] after its receipt of such invoice to review such invoice and raise any disputed amounts to Avidity. If Lilly does not dispute any amounts payable under an applicable invoice during such
[* * *] period, Lilly shall pay the amounts payable under any such invoice within [* * *] following such [* * *]
review period (i.e., [* * *] following its receipt of such invoice); provided, that, if Lilly reimburses Avidity for advance payments made by Avidity to any Third Party, Avidity shall
provide the final actual cost per invoiced period and a true up of actual cost compared to advance payment (planned cost) to Lilly. If the advance payment(s) turn out to be higher than the actual cost incurred by Avidity, Avidity shall credit the
respective amount of the advance payment to the next invoice or invoices payable by Lilly, and in the event there are no further invoices anticipated, shall reimburse Lilly within [* * *] of such true up;

 (d) As long as Avidity provides development support to Lilly and for a period of [* * *]
thereafter, Avidity shall maintain complete and accurate books and records regarding the Avidity Internal Costs and Avidity External Costs invoiced to Lilly. Lilly shall have the right to have an accounting firm inspect Avidity’s records solely
for purposes of determining the accuracy of the Avidity Internal Costs and the Avidity External Costs in accordance with Section 7.6 applied mutatis mutandis (subject only to replacing references to “Lilly” with references to
“Avidity,” and vice versa, and other analogous changes, including changes related to the subject matter of the audit); and 
 (e)
Lilly shall bear its own internal costs and out-of-pocket expenses with respect to any Research that Lilly conducts for each Program. 

4.10 Certain Standards Applicable to Work. All Research and development done by either Party for non-regulated work under this
Agreement will be conducted in accordance with the Research Plans, Eli Lilly and Company Good Research Practices, Eli Lilly and Company Animal Care and Use Requirement for Animal Researchers and Suppliers and all Applicable Laws, including those
regarding data privacy and data security laws and regulations. For purposes of this Agreement, “Eli Lilly and Company Good Research Practices” means the compiled set of shared research quality standards defining how
Lilly’s research laboratories conduct good science for non-regulated work as set forth in Exhibit 4.10 Part A. For purposes of this Agreement, “Eli Lilly and Company Animal Care and Use Requirement for Animal Researchers and
Suppliers” means the guidelines relating to animal care and use for research done on behalf of Lilly as set forth in Exhibit 4.10 Part B. If Lilly reasonably requests, Avidity will complete a self-assessment examination form
based on such quality standards. If it has not done so prior to the Effective Date, a duly authorized representative of Lilly may make an on-site visit to Avidity for the purpose of conducting a quality assessment or quality audit for non-regulated
work. Lilly may conduct compliance audits of Avidity during business hours, for a duration consistent with the quantity of material to be reviewed, and no more than [* * *], except in the case of audits for cause, in accordance with
the procedures set forth in Section 7.6 to ensure compliance with applicable GLP, GRP or GMP, provided Lilly has requested such audit with written notice of at least [* * *] and such audit does not
unreasonably interfere with Avidity’s operations. All such audits shall be done at Lilly’s cost and expense. 

  
 27 

 ARTICLE 5 

DEVELOPMENT, MANUFACTURING, AND REGULATORY MATTERS 

5.1 Development and Manufacturing Responsibilities. Except with respect to Research activities conducted by Avidity pursuant to a
Research Plan for a Program, Lilly shall be responsible for, and shall bear all costs associated with, the development and manufacture of Compounds and Products for such Program. Subject to the terms of this Agreement, all decisions concerning the
development of Compounds and Products following Research, including the clinical and regulatory strategy of Compounds and Products covered under this Agreement, is within the sole discretion of Lilly. 

5.2 Diligence. Lilly shall use Commercially Reasonable Efforts to develop and to obtain Regulatory Approval for
[* * *] per Collaboration Target in [* * *]. 
 5.3
Reports. Lilly shall keep Avidity reasonably informed as to the progress and results of its and its Affiliates’ and Sublicensees’ development activities under this Agreement. Without limiting the foregoing, on
[* * *] Lilly shall provide Avidity with a written report summarizing its development activities and the results thereof. In addition, Lilly shall make available to Avidity such additional information
about its development activities as may be reasonably requested by Avidity from time to time. Lilly’s obligations under this Section 5.3 shall cease upon the First Commercial Sale of a Product in the U.S. 

5.4 Regulatory Responsibilities. Except as provided under a Research Plan, as between the Parties, Lilly shall be responsible for the
preparation, submission, and maintenance of all Regulatory Filings and obtaining Regulatory Approvals (including the preparation and submission of the IND filing and for seeking IND approval) with respect to Compounds and Products developed and
shall have sole control over all interactions with the applicable Regulatory Authority. Avidity shall reasonably cooperate with Lilly, at Lilly’s reasonable request and expense, with respect to any regulatory matters related to Compounds or
Products. Lilly will own all right, title and interest in and to any and all Regulatory Filings and Regulatory Approvals for Compounds and Products and, as between the Parties, all such Regulatory Filings and Regulatory Approvals will be held in the
name of Lilly, and Avidity shall execute all documents and take all actions as are necessary or reasonably requested by Lilly to vest such title in Lilly. 

5.5 Adverse Event Reporting; Additional Agreement. Lilly shall establish, hold, and maintain the global safety database for Compounds
and Products with respect to information on adverse events concerning the Compounds and Products, as and to the extent required by Applicable Law. Upon request of either Party, the Parties shall negotiate and agree on any additional agreements
necessary for the development of Compounds and Products, including a pharmacovigilance agreement. 

  
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 ARTICLE 6 

COMMERCIALIZATION 
 6.1
General. Lilly shall have the sole right and be responsible for, and shall bear all costs associated with, the Commercialization of Products, including manufacturing, distribution, marketing, and sales activities. Subject to the terms of this
Agreement, all decisions concerning Commercialization of Products, including the marketing and sales of Products, and the design, price, and promotion of Products, is within the sole discretion of Lilly. 

6.2 Diligence. Lilly shall use Commercially Reasonable Efforts to achieve a First Commercial Sale for each Product for which it obtains
Regulatory Approval in [* * *]. 
 ARTICLE 7 

FEES, ROYALTIES, & PAYMENTS 

7.1 Upfront Payment. As partial consideration for the rights granted by Avidity to Lilly pursuant to the terms of this Agreement, Lilly
shall pay to Avidity a non-refundable, non-creditable payment equal to Twenty Million Dollars ($20,000,000) within [* * *]
of the Effective Date. 
 7.2 Milestone Payments. 

7.2.1 General. Lilly shall pay to Avidity certain non-refundable and non-creditable milestone payments (“Milestone Payments”) set forth in this Section 7.2: (a) within [* * *] following each of: (i) the
first Product for each Collaboration Target achieving the development milestone event set forth in Section 7.2.2 (the “Development Milestone Events”); and (ii) the first Product for each Collaboration Target
achieving the First Commercial Sale milestone event set forth in Section 7.2.3 (the “First Commercial Sale Milestone Events”); and (b) within [* * *]
following the end of the Calendar Quarter of the first occurrence of all Products in each Program collectively achieving the commercial milestone events set forth in Section 7.2.4 (the “Commercial Milestone Events”). For
clarity, no Milestone Payment is payable for subsequent or repeated achievements of the same Milestone Event with respect to the same Product, or any subsequent Products with respect to a Collaboration Target for which a Milestone Event has
occurred. For avoidance of doubt, the maximum number of each of the Milestone Events achievable is up to six (6) (i.e., only once per each Collaboration Target subject to this Agreement). 

7.2.2 Development Milestones. The Milestone Payments to be made by Lilly to Avidity pursuant to Section 7.2.1 with respect to the
first Product for each Collaboration Target to achieve a below Development Milestone Event during the Term are as follows (each such Milestone Payment, a “Development Milestone Payment”): 

  
 29 

			
	 Development Milestone Event
	  	Milestone Payment
	 [***]
	  	$[***]
	 [***]
	  	$[***]
	 [***]
	  	$[***]

 The maximum total amount payable under this Section 7.2.2 shall not exceed
[* * *] Dollars ($[* * *]) (i.e. [* * *] Dollars ($[* * *])
for each of up to six (6) Collaboration Targets). Notwithstanding the foregoing, if a Product for a particular Collaboration Target is discontinued prior to the First Commercial Sale of such Product, then
[* * *]. For illustration purposes only, assume [* * *]. If (a) a Development Milestone Event for a Product Directed To a Collaboration Target is achieved
and payment with respect to any previous Development Milestone Event for such Collaboration Target has not been made by Lilly to Avidity, then all previous Development Milestone Events for such Collaboration Target shall be deemed to have occurred;
or (b) Lilly achieves Regulatory Approval for a Product Directed To a Collaboration Target and payment with respect to any Development Milestone Event for such Collaboration Target has not been made by Lilly to Avidity then all Development
Milestone Events for such Collaboration Target shall be deemed to have occurred; and in each case of (a) and (b) Lilly shall pay Avidity all such unpaid payments with respect to such previous Development Milestone Events for such Collaboration
Target at the same time that the Milestone Payment for the later Development Milestone Event is paid or within [* * *] of such Regulatory Approval. 

7.2.3 First Commercial Sale Milestones. The Milestone Payments to be made by Lilly to Avidity pursuant to Section 7.2.1
with respect to the first Product for each Collaboration Target to achieve a below First Commercial Sale Milestone Event during the Term are as follows: 

  
 30 

			
	 First Commercial Sale Milestone Event
	  	Milestone Payment
	 [***]
	  	$[***]
	 [***]
	  	$[***]
	 [***]
	  	$[***]

 7.2.4 Commercial Milestones. The Milestone Payments to be made by Lilly to Avidity pursuant to
Section 7.2.1 with respect to each Collaboration Target to achieve the below Commercial Milestone Events are as follows: 
  

			
	 Commercial Milestone Event
	  	Milestone Payment
	 First Calendar Year in which annual Net Sales of all Products for such Collaboration Target
exceed [***] Dollars ($[***])
	  	$[***]
	 First Calendar Year in which annual Net Sales of all Products for such Collaboration Target
exceed [***] Dollars ($[***])
	  	$[***]
	 First Calendar Year in which annual Net Sales of all Products for such Collaboration Target
exceed [***] Dollars ($[***])
	  	$[***]
	 First Calendar Year in which annual Net Sales of all Products for such Collaboration Target
exceed [***] Dollars ($[***])
	  	$[***]

 7.3 Royalties on Products. 

7.3.1 Royalty Term. Lilly shall pay Avidity royalties as set forth in this Section 7.3 on a Product-by-Product and country-by-country basis in the Territory during the period of time beginning on the First Commercial
Sale of such Product in such country and continuing until the later of: (a) the expiration or abandonment of the last-to-expire Valid Claim in such country Covering
such Product; or (b) ten (10) years after the First Commercial Sale of such Product in such country (the “Royalty Term”). 

  
 31 

 7.3.2 Royalty Rates. Lilly shall pay Avidity
non-refundable, non-creditable royalties as set forth below on aggregate annual Net Sales of all Products for each Collaboration Target in the Territory during the
Royalty Term, as calculated by multiplying the applicable royalty rate set forth below by the corresponding portion of aggregate Net Sales of all Products for such Collaboration Target in such Calendar Year. 

 

			
	 Aggregate Annual Net Sales of all Products for a Collaboration Target
in the Territory
	  	Royalty Rate
	 [***] Dollars ($[***])
	  	[***]%
	 [***] Dollars ($[***])
	  	[***]%
	 [***] Dollars ($[***])
	  	[***]%
	 [***] Dollars ($[***])
	  	[***]%

 7.3.3 Valid Claim. In any Calendar Quarter during the Royalty Term for a Product for which there is no
longer a Valid Claim of an Avidity Patent that Covers such Product in a country, the royalty rates provided in Section 7.3.2 for the Product will be reduced in such country by [* * *] percent
([* * *]%) for such Calendar Quarter (in addition to Sections 7.3.4 and 7.3.5, but subject to Section 7.3.6). 

7.3.4 Biosimilar Products. On a country-by-country and Product-by-Product basis: (a) upon the first commercial sale of one or more Biosimilar Products with respect to a Product in any country in the Territory during the
Royalty Term, the royalty rates provided in Section 7.3.2 for the Product will be reduced in such country by [* * *] percent ([* * *]%) (in addition to
Sections 7.3.3 and 7.3.5, but subject to Section 7.3.6); and (b) from and after the first Calendar Quarter in which Biosimilar Products (individually or in the aggregate) have a market share of
[* * *] percent ([* * *]%) or more in a given country (measured in local currency, over the Calendar Quarter, as reported by a customary market intelligence
service used by Lilly), the royalty rates provided in Section 7.3.2 for the Product will be reduced in such country to [* * *] percent ([* * *]%) of the
royalties otherwise payable under Section 7.3.2. 
 7.3.5 Third Party Payments. Lilly may deduct from any royalty
payments to Avidity under this Section 7.3 for each Product (after application of Sections 7.3.3 and 7.3.4, but subject to Section 7.3.6) an amount equal to [* * *] percent
([* * *]%) of any royalties paid by Lilly to a Third Party in consideration for a right or license under such Third Party’s interest in any Patents that would, absent such a right or license, be
infringed by the researching, developing, making, having made, using, keeping, importing, exporting, offering for sale, sale, or other exploitation of the Compounds in the Field in the Territory. 

  
 32 

 7.3.6 Cumulative Limit on Deductions. Notwithstanding anything to the
contrary, in no circumstances will the royalties payable to Avidity under this Section 7.3 in any Calendar Quarter be reduced, as a result of Section 7.3.3, Section 7.3.4 and Section 7.3.5 in the aggregate below
[* * *] percent ([* * *]%) of the royalties otherwise payable under Section 7.3.2. 

7.3.7 Payment; Reports. Royalty payments due by Lilly to Avidity under this Section 7.3 will be calculated and reported
[* * *]. All royalty payments due under this Section 7.3 shall be paid within [* * *] after the end of each Calendar Quarter and shall be accompanied by a
report setting forth Net Sales and royalty for each Product by Lilly and its Affiliates and Sublicensees in the Territory. 
 7.4
Convertible Note. Pursuant to the terms of the Convertible Note Purchase Agreement between the Parties, Lilly will purchase a convertible promissory note from Avidity in the amount of Fifteen Million Dollars ($15,000,000); provided,
that, in no event shall Lilly own more than twenty percent (20%) of the voting securities of Avidity or its Affiliates. 
 7.5 Method
of Payment; Currency Conversion. Unless otherwise agreed by the Parties, all payments due under this Agreement shall be paid in Dollars by wire transfer or electronic funds transfer of immediately available funds to an account designated by the
payee; provided however, that Lilly shall only be required to disburse funds to the payee’s jurisdiction of incorporation or to a jurisdiction in which the payee has a significant business presence. When conversion of payments from any currency
other than Dollars is required, Lilly’s then-current standard exchange rate methodology will be employed for the translation of foreign currency sales into Dollars; provided, that this methodology is used by Lilly in the translation of
its foreign currency operating results, is consistent with U.S. GAAP, is audited by Lilly’s independent certified public accountants in connection with the audit of the consolidated financial statements of Lilly, and is used for external
reporting of foreign currency operating results. 
 7.6 Records and Audits. Lilly shall keep, and shall cause its Affiliates and
Sublicensees to keep, complete and accurate records which may be necessary to ascertain properly and to verify the royalty payments due hereunder. Such records shall be kept for such period of time required by Applicable Laws, but no less than
[* * *] following the end of the Calendar Quarter to which they pertain. Within the Term, Avidity shall not more than once each year have the right to have a “Big 4” accounting firm
(i.e., KPMG, PwC, Deloitte or Ernst & Young) reasonably acceptable to Lilly inspect Lilly’s records for the purpose of determining the accuracy of royalty payments for a period covering not more than
[* * *] following the Calendar Quarter to which they pertain. No period will be audited more than once and each audit must be reasonable in scope. The independent, certified public accountant selected
shall keep confidential any information obtained during such inspection and shall report to Avidity and Lilly only the amounts of Net Sales and royalties due and payable. Such audits may be exercised during normal business hours upon reasonable
prior written notice to Lilly. Avidity shall bear the full cost of such audit unless such audit discloses an underpayment by Lilly of more than [* * *] percent
([* * *]%), and which underpayment is also at least [* * *] Dollars ($[* * *]), of the amount of royalties or
other payments due under this Agreement for any applicable Calendar Quarter, in which case, Lilly shall bear the cost of such audit and shall remit to Avidity the amount of any underpayment within [* * *]
of the date the auditor’s written report is received. Any overpayment by Lilly revealed by an audit shall be credited against future payments owed by Lilly to Avidity (and if no further payments are due, shall be refunded by Avidity at the
request of Lilly within [* * *] of the receipt of the request). 

  
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 7.7 Late Payments. If any payment due under this Agreement is not paid when due in
accordance with the applicable provisions of this Agreement, the payment shall accrue interest from the date due at the rate of prime (as reported in The Wall Street Journal (Eastern U.S. edition))
[* * *] or the maximum rate allowable by Applicable Law, whichever is less. The payment of such interest shall not limit the Party entitled to receive payment from exercising any other rights it may have
as a consequence of the lateness of any payment. 
 7.8 Taxes. 

7.8.1 Cooperation and Coordination. The Parties acknowledge and agree that it is their mutual objective and intent to
minimize, to the extent feasible and in compliance with Applicable Laws, taxes payable with respect to their collaborative efforts under this Agreement and that they shall use reasonable efforts to cooperate and coordinate with each other to achieve
such objective. 
 7.8.2 Payment of Tax. The upfront, milestones, royalties and other amounts payable by Lilly to
Avidity to this Agreement (each, a “Payment”) shall be paid free and clear of any and all taxes, except for any withholding taxes required by Applicable Law. Except as provided in this Section 7.8.2. Avidity shall be solely
responsible for paying any and all taxes (other than withholding taxes required by Applicable Law to be deducted from Payments and remitted by Lilly) levied on account of, or measured in whole or in part by reference to, any Payments it receives.
Lilly shall deduct or withhold from the Payments any taxes that it is required by Applicable Law to deduct or withhold. Notwithstanding the foregoing, if Avidity is entitled under any applicable tax treaty to a reduction of rate of, or the
elimination of, applicable withholding tax, it may deliver to Lilly or the appropriate Governmental Authority (with the assistance of Lilly to the extent that this is reasonably required and is expressly requested in writing) the prescribed forms
necessary to reduce the applicable rate of withholding or to relieve Lilly of its obligation to withhold such tax and Lilly shall apply the reduced rate of withholding or dispense with withholding as the case may be; provided that Lilly has received
evidence, in a form satisfactory to Lilly, of Avidity’s delivery of all applicable forms (and, if necessary, its receipt of appropriate governmental authorization) at least [* * *] prior to the time
Payments are due. If in accordance with the foregoing, Lilly withholds any amounts of tax, it shall pay to Avidity the balance when due, make timely payment to the proper tax authority of the withheld amount and send to Avidity proof of such payment
within [* * *] following such payments. 

  
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 ARTICLE 8 

INTELLECTUAL PROPERTY 

8.1 Ownership of Intellectual Property. 

8.1.1 Proprietary Technology. As between the Parties, and subject to the licenses granted under this Agreement, Avidity retains all of
its rights, title and interests in and to the Avidity Technology existing as of the Effective Date (including the Avidity Proprietary Technology) and any Avidity Proprietary Technology created or acquired thereafter, and Lilly retains all of its
rights, title and interests in and to the Lilly Technology existing as of the Effective Date (including the Lilly Proprietary Technology) and any Lilly Proprietary Technology created or acquired thereafter. 

8.1.2 Inventorship. Inventorship as between the Parties will be determined in accordance with U.S patent laws. All such
determinations shall be documented to ensure that the Patent claims in any divisional or continuation patent applications reflect appropriate inventorship. 

8.1.3 Program Inventions. 

(a) Ownership. The Parties anticipate to both contribute Proprietary Technology under the Research Plan to facilitate the innovation of
technology and optimization of Compounds and Products under this Agreement. The Parties shall jointly own an undivided one-half interest in and to all Inventions and
Know-How made during the Research Term in the course of performing the activities under the Research Plan (“Program Inventions”), regardless of inventorship and whether or
not patentable. The Party making each such Program Invention shall and hereby does assign to the other Party an undivided one-half interest in such first Party’s right, title, and interest in and to all
Program Inventions made by or on behalf of such first Party. The inventing Party shall take (and cause its employees, agents, contractors and Sublicensees (if applicable) to take) such further actions reasonably requested by the other Party to
evidence such assignment and to obtain Patent and other intellectual property rights protection for such Program Inventions. Subject to the licenses granted hereunder, each Party has full rights to exploit and license such Program Inventions (and
any Patent rights therein), without any obligation or requirement of an accounting to the other Party and each Party hereby consents to such exploitation and licensing of the other Party for Program Inventions, provided, for clarity, that this
consent does not extend to the practice of other Patent rights Controlled by the consenting Party. Furthermore, notwithstanding the foregoing, each Party agrees to hold Program Inventions (and any Know-How
therein) in confidence subject to the same permitted disclosures set forth in Section 11.1.4 (applied mutatis mutandis to the Program Inventions consistent with each Party’s rights to exploit the Program Inventions) and shall
not disclose such Know-How to a Third Party unless under terms of confidentiality that preserve the Parties’ ability to pursue Patent rights as set forth under Section 8.2. 

  
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 (b) Independent Development. Nothing in this Agreement shall be construed as
limiting either Party’s right to research, develop, improve and in-license technology related to its Proprietary Technology outside the scope of this Agreement in its ordinary course of business, and any
resulting inventions made by such Party outside the scope of this Agreement in its ordinary course of business shall be deemed such Party’s Proprietary Technology and solely owned by such Party, and not be deemed Program Inventions.
[* * *] shall not use its final decision making authority to expand the scope of the Research Plan to include activities that would ordinarily be conducted by
[* * *] to improve the [* * *] except when the inclusion of such activities under the Research Plan is consistent with the objective(s) of the applicable
Research Plan (as set forth in such Research Plan). 
 (c) Contribution of Licensed Proprietary Technology. Each Party shall
inform the other Party in writing, prior to contributing to Research to be conducted under any Research Plan, any portion of its Proprietary Technology that is in-licensed from a Third Party, the contribution
of which would prevent or conflict with the ownership and use rights with respect to Patents and Know-How contemplated by this Agreement; however, for avoidance of doubt, this Section 8.1.3 shall not
limit or modify Lilly’s ability to license Patents pursuant to Section 7.3.5. 
 8.1.4 Assignment Obligation. Each
Party shall cause all employees, independent contractors, consultants, and others who perform activities for such Party under this Agreement to be under an obligation to assign (or, if such Party is unable to cause such person or entity to agree to
such assignment obligation despite such Party using reasonable efforts to negotiate such assignment obligation, provide a license, preferably exclusive, under) to such Party their rights in and to any Inventions and all intellectual property rights
therein, except where Applicable Law requires otherwise and except in the case of governmental, not-for-profit and public institutions that have standard policies
against such an assignment (in which case a Party shall obtain a suitable license, preferably exclusive, or right to obtain such a license). Each Party shall use reasonable efforts to promptly disclose to the other Party all Inventions, including
any invention disclosures, or other similar documents, submitted to it by its employees, agents or independent contractors describing such Inventions, and all information relating to such Inventions to the extent necessary or useful for the
preparation, filing and maintenance of any Patent with respect to such Invention. 
 8.2 Patent Prosecution and Maintenance. 

8.2.1 Patent Representatives. Each Party shall designate to the other Party in writing a patent Prosecution and Maintenance
representative to liaise with the other Party’s Prosecution and Maintenance representative with respect to the Prosecution and Maintenance of Patents under this Section 8.2. Each Party may update its patent Prosecution and Maintenance
representative at any time upon written notice to the other Party. 
 8.2.2 Product-Specific Patents. As between the Parties:
(a) Lilly has the first right, but not the obligation, to Prosecute and Maintain any Avidity Patents that include a specific claim to a Compound or a Product and/or the specific component of the Avidity Proprietary Technology that is
incorporated in such Compound or Product (the “Product-Specific Patents”) at Lilly’s sole cost and expense; and (b) Avidity has the first right, but not the obligation, to Prosecute and Maintain any
Avidity Patents that are not Product-Specific Patents (the “Avidity-Controlled Patents”). For clarity, Product-Specific Patents include, but are not limited to composition of matter, uses, formulations, doses, dosing
regimens, and manufacturing 

  
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patents. The Party handling the Prosecution and Maintenance of a given Avidity Patent under this Section 8.2.2 (the “Prosecuting Party”) shall keep the other Party
reasonably informed of the status of the applicable Avidity Patent and shall promptly provide the other Party with all material correspondence received from any patent authority in connection therewith. In addition, the Prosecuting Party shall
promptly provide the other Party with drafts of all proposed material filings and correspondence to any patent authority with respect to the applicable Avidity Patent for the other Party’s review and comment prior to the submission of such
proposed filings and correspondences, and the Prosecuting Party shall consider the other Party’s reasonable comments in good faith. If Lilly is the Prosecuting Party, Lilly shall Prosecute and Maintain any Avidity Patents in a manner that is
consistent with Lilly’s overall patent strategy. The Prosecuting Party shall notify the other Party of its intention to suspend or cease any Prosecution and Maintenance of any Avidity Patent. The Prosecuting Party shall provide such notice at
least [* * *] prior to any filing or payment due date, or any other due date that requires action, in connection with such Avidity Patent. In such event, the Prosecuting Party shall permit the other
Party, at the other Party’s discretion and at its sole expense, to continue Prosecution and Maintenance of such Avidity Patent; provided, that in the case where Lilly is the Prosecuting Party and Avidity desires to continue Prosecution and
Maintenance of such Avidity Patent, Avidity shall not continue such Prosecution and Maintenance if Lilly reasonably objects to such Prosecution or Maintenance. 

8.2.3 Program Patents. Subject to [* * *] final decision making authority
pursuant to Section 2.7, the Working Group for patent prosecution shall determine which Party has the first right, but not the obligation, to Prosecute and Maintain the Program Patents other than Product-Specific Patents, at such Party’s
sole cost and expense. The Prosecuting Party shall keep the other Party reasonably informed of the status of the Program Patents and shall promptly provide such other Party with all material correspondence received from any patent authority in
connection therewith. In addition, the Prosecuting Party shall promptly provide the other Party with drafts of all proposed material filings and correspondence to any patent authority with respect to the Program Patents for such other Party’s
review and comment prior to the submission of such proposed filings and correspondences, and the Prosecuting Party shall consider the other Party’s reasonable comments in good faith. The Prosecuting Party shall notify the other Party of its
intention to suspend or cease any Prosecution and Maintenance of any Program Patent at least [* * *] prior to any filing or payment due date, or any other due date that requires action, in connection with
such Program Patent. In such event, the Prosecuting Party shall permit the other Party, at its discretion and at its sole expense, to continue Prosecution and Maintenance of such Program Patent; provided, that in the case where Lilly is the
Prosecuting party and Avidity desires to continue Prosecution and Maintenance of such Program Patent, Avidity shall not continue such prosecution and maintenance if Lilly reasonably objects to the prosecution or maintenance by Avidity of such
Program Patent. 
 8.2.4 Lilly Patents. As between the Parties, Lilly has the sole responsibility, at Lilly’s discretion
and at Lilly’s sole cost and expense, to Prosecute and Maintain all Lilly Patents. 

  
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 8.2.5 Separation of Patent Claims. If a Party determines that an
application for a Patent filed, or sought to be filed, by the other Party contains a claim or claims that Cover both such determining Party’s Proprietary Technology and/or any Program Invention, the Parties agree that, to the extent
practicable, such application shall be divided into two (2) or more Patent applications, so that each application shall contain claims that cover only one of Avidity Proprietary Technology or Lilly Proprietary Technology (as applicable), on the
one hand, or the Program Invention(s), on the other hand. If such division is not practicable, or a single claim covers both Lilly Proprietary Technology or Avidity Proprietary Technology (as applicable), on the one hand, and a Program Invention, on
the other hand, such Patent application shall be deemed to be within the Program Inventions and subject to the provisions of Section 8.1.3(a). 

8.2.6 Cooperation of the Parties. Each Party shall cooperate fully with the other Party, through the patent
prosecution Working Group, in the Prosecution and Maintenance of Patents under this Section 8.2 at its own cost (except as expressly set forth otherwise in this Article 8), including by: (a) executing all papers and instruments, or
requiring its employees or contractors, to execute such papers and instruments, to enable the other Party to apply for and to Prosecute and Maintain such Patents in any country as permitted by this Section 8.2; and (b) promptly informing
the other Party of any matters coming to such Party’s attention that may affect the Prosecution and Maintenance of any such Patents. 

8.3 Infringement or Misappropriation by Third Parties. 

8.3.1 Notice. Each Party shall notify the other within [* * *] of becoming aware of any
alleged or threatened infringement by a Third Party of any of the Avidity Patents, Lilly Patents, or Program Patents, which infringing activity involves the using, making, importing, offering for sale, or selling a Compound or Product, in each case
in the Field in the Territory, and any related declaratory judgment, opposition, or similar action alleging the invalidity, unenforceability or non-infringement of any of the Avidity Patents, Lilly Patents, or
Program Patents (collectively “Infringement”). 
 8.3.2 Avidity-Controlled Patents. As between the
Parties, Avidity has the sole right to bring and control any legal action in connection with any Infringement of the Avidity-Controlled Patents at its own expense. Avidity shall keep Lilly reasonably informed of the status of the applicable
Avidity-Controlled Patents. Lilly may, at its own expense, be represented in any such action by counsel of its own choice. If Avidity does not bring such legal action within [* * *] after the notice
provided pursuant to Section 8.3.1, Lilly may bring and control any legal action in connection with such Infringement of such Avidity-Controlled Patent at its own expense as it reasonably determines appropriate so long as Avidity does not
reasonably object to such action. 
 8.3.3 Product-Specific Patents. As between the Parties, Lilly has the first right to bring
and control any legal action in connection with any Infringement of any Product-Specific Patents at its own expense. Lilly shall keep Avidity reasonably informed of the status of such enforcement efforts for the Product-Specific Patents and shall
consider in good faith Avidity’s comments thereon. Lilly shall provide Avidity with drafts of all material papers to be filed with the court and shall in good faith consider all reasonable comments thereto by Avidity before filing such papers.
Avidity may, at its own expense, be represented in any such action by counsel of its own choice. If Lilly does not bring such legal action within [* * *] after the notice provided pursuant to
Section 8.3.1, Avidity may bring and control any legal action in connection with such Infringement of such Product-Specific Patent at its own expense as it reasonably determines appropriate so long as Lilly does not reasonably object to such
action. 

  
 38 

 8.3.4 Program Patents. As between the Parties, Lilly has the first
right to bring and control any legal action in connection with any Infringement of any Program Patents at its own expense as it reasonably determines appropriate. Lilly shall keep Avidity reasonably informed of the status of such enforcement efforts
for the Program Patents and shall consider in good faith Avidity’s comments thereon. Lilly shall provide Avidity with drafts of all material papers to be filed with the court and shall in good faith incorporate all reasonable comments thereto
by Avidity before filing such papers. Avidity may, at its own expense, be represented in any such action by counsel of its own choice. If Lilly does not bring such legal action within [* * *] after the
notice provided pursuant to Section 8.3.1, Avidity may bring and control any legal action in connection with such Infringement of any Program Patents at its own expense as it reasonably determines appropriate so long as Lilly does not
reasonably object to such action. 
 8.3.5 Lilly Patents. Lilly has the sole right to initiate any proceedings or take other
appropriate actions against an Infringement of any Lilly Patent (excluding the Program Patents, which are separately addressed in Section 8.3.4) or to defend against any challenge of a Lilly Patent (excluding the Program Patents, which are
separately addressed in Section 8.3.4). 
 8.3.6 Allocation of Recoveries. Any recoveries resulting from enforcement
action relating to a claim of Infringement shall be first applied against payment of each Party’s costs and expenses in connection therewith. The enforcing Party will retain any such recoveries in excess of such costs and expenses, provided
that if Lilly is the enforcing Party, then such excess recoveries are deemed [* * *]. 

8.3.7 Cooperation. At the request and expense of the Party bringing an action under this Section 8.3, the other Party shall
provide reasonable assistance in connection therewith, including by executing reasonably appropriate documents, cooperating in discovery and joining as a party to the action if required by Applicable Law to pursue such action. In connection with any
such enforcement action, the Party bringing the action shall not enter into any settlement admitting the invalidity or non-infringement of, or otherwise impairing the other Party’s rights in the applicable Patents without the prior written
consent of the other Party. 
 8.4 Defense and Settlement of Third Party Claims. Each Party shall promptly notify the other in writing
of: (a) any allegation by a Third Party that the activity of either of the Parties pursuant to this Agreement infringes or may infringe the intellectual property rights of such Third Party; or (b) any declaratory judgment action that is
brought naming either Party as a defendant and alleging invalidity of any of the Lilly Patents, Avidity Patents, or Program Patents. Avidity has the sole right to control any defense of any such claim involving alleged infringement of Third Party
rights by Avidity’s activities at its own expense and by counsel of its own choice, and Lilly may, at its own expense, to be represented in any such action by counsel of its own choice. Lilly has the sole right to control any defense of any
such claim involving alleged infringement of Third Party rights by Lilly’s activities at its own expense and by counsel of its own choice, and Avidity may, at its own expense, to be represented in any such action by counsel of its own choice.
Neither Party may settle any patent infringement litigation under this Section 8.4 in a manner that admits the invalidity or unenforceability of the other Party’s Patents or a Program Patent or imposes on the other Party restrictions or
obligations or other liabilities, without the written consent of such other Party, which consent shall not be unreasonably withheld, conditioned, or delayed. 

  
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 8.5 Patent Extension. The Parties shall cooperate in determining which Patent
claiming or covering a Compound or Product should be extended, and thereafter the Parties shall cooperate in obtaining patent term restorations, supplemental protection certificates or their equivalents, and other forms of patent term extensions for
a given Compound or Product with respect to any applicable Avidity Patent, Lilly Patent, or Program Patent in any country or region where applicable. [* * *] shall have final decision making authority
with respect to decisions regarding patent term extension with respect to Product-Specific Patents, Lilly Patents and Program Patents. 
 8.6
CREATE Act. It is the Parties’ intention that this Agreement is a “joint research agreement” as that phrase is defined in 35 U.S.C. § 102(c) as amended by the Cooperative Research and Technology Enhancement (CREATE) Act,
including the provisions of 35 U.S.C. § 102(b)(2)(c). The Parties agree to cooperate and to take reasonable actions to maximize the protections available for the Compounds and Products under such safe harbor provisions. 

8.7 Trademarks. Lilly shall have the right to select, and will be free, in its sole discretion, to use and to register in any trademark
office in the Territory, any trademark for use with a Compound or Product. As between the Parties, Lilly shall own all right, title and interest in and to any such trademarks adopted by Lilly for use with a Compound and Product, and is responsible
for the registration, filing, maintenance and enforcement thereof. 
 ARTICLE 9 

REPRESENTATIONS, WARRANTIES AND COVENANTS 

9.1 Mutual Representations and Warranties. Each of Lilly and Avidity represent and warrant, as of the Effective Date, that: 

9.1.1 it is duly organized and validly existing under in the Applicable Laws of the jurisdiction of its incorporation or formation, as
applicable, has full corporate, limited liability company or other power and authority, as applicable, to enter into this Agreement and to carry out the provisions hereof, and has sufficient facilities, experienced personnel or other capabilities
(including via Affiliates and/or Third Parties) to enable it to perform its obligations under this Agreement; 
 9.1.2 it is duly authorized
to execute and deliver this Agreement and to perform its obligations hereunder, and the individual executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate, limited liability company or other action, as
applicable; and 
 9.1.3 this Agreement is legally binding upon it and enforceable in accordance with its terms (except as the enforceability
thereof may be limited by bankruptcy, bank moratorium or similar laws affecting creditors’ rights generally and laws restricting the availability of equitable remedies and may be subject to general principles of equity whether or 

  
 40 

 
not such enforceability is considered in a proceeding at law or in equity) and the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate
action and do not and will not: (a) conflict with, or constitute a default or result in a breach under, any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, or violate any Applicable
Law; or (b) require any consent or approval of its stockholders or similar. 
 9.2 Avidity Representations and Warranties.
Avidity represents and warrants to Lilly that, as of the Effective Date: 
 9.2.1 No Targets Encumbered. There are no Targets that are
subject to an executed agreement between Avidity and a Third Party or Avidity’s commitment to negotiate an agreement with a Third Party that would prevent or conflict with the inclusion of the Target as a Collaboration Target under this
Agreement on an exclusive basis as set forth in Section 3.5. 
 9.2.2 No Grants that Conflict with this Agreement. Avidity and
its Affiliates have not granted, and will not grant during the Term, any rights (or other encumbrances) to any Third Party to Avidity Technology that prevent or conflict with the rights granted to Lilly hereunder. 

9.2.3 Control over Know-How and Patents. Avidity has Control over all Know-How and Patent rights owned by it or its Affiliates as of the Effective Date that are necessary or reasonably useful for the Research, development, registration, manufacturing (including formulation) or
Commercialization of the Compounds and Products as known to be contemplated by this Agreement as of the Effective Date. 
 9.2.4 Existing
Patents. 
 (a) All Patent rights contained in the Avidity Technology existing as of the Effective Date that are issued or subject to a
pending application for issuance (the “Existing Patents”) are listed on Exhibit 1.14 and all such Existing Patents are: (i) to the extent issued (unless otherwise indicated on Exhibit
1.14), subsisting and not invalid or unenforceable, in whole or in part; (ii) solely and exclusively owned or exclusively licensed to Avidity, free of any encumbrance, lien or claim of ownership by any Third Party; (iii) to the
extent subject to a pending application for issuance, being diligently prosecuted in the respective patent offices in which such applications have been filed in accordance with Applicable Law and, to Avidity’s knowledge, Avidity and its
Affiliates have presented all relevant references, documents and information to the relevant patent examiner at the relevant patent office; and (iv) to Avidity’s knowledge, filed and maintained properly and correctly, and all applicable
fees applicable thereto have been paid on or before the due date for payment.  
 (b) To Avidity’s knowledge, neither Avidity
nor any of its Affiliates have taken any action that would render any invention claimed in the Existing Patents unpatentable. 
 (c) The
Existing Patents represent all Avidity Patents that relate to the Avidity Technology or the exploitation thereof as of the Effective Date. 

  
 41 

 (d) To Avidity’s knowledge, other than the rights granted under this Agreement, no
rights or licenses are required under any Patent rights to practice the Avidity Technology as contemplated in the Research Plan as of the Effective Date, or to Research, develop, manufacture (including to formulate), Commercialize or otherwise
exploit the Products as contemplated herein by reason of the incorporation of Avidity Technology in such Products. 
 9.2.5 No Third Party
Agreements. There are no license or other agreements with Third Parties regarding the exploitation of any Avidity Technology or other materials contemplated to be provided by Avidity to Lilly hereunder, to which Avidity or its Affiliate is a
party. 
 9.2.6 Litigation and Actions Relating to Intellectual Property. Avidity: (a) has not received any written notice of any
threatened claims or litigation seeking to invalidate or otherwise challenge the Avidity Technology, including the Avidity Patents, or Avidity’s or its Affiliates’ rights therein; and (b) is not aware of any pending or threatened
action, suit, proceeding or claim by a Third Party asserting that Avidity or any of its Affiliates is infringing or has misappropriated or otherwise is violating any Patent right, trade secret or other proprietary right of any Third Party as would
reasonably be expected to impair the ability of Avidity to fulfill any of its obligations under this Agreement. 
 9.2.7 Other Material
Claims and Actions. There are no claims, actions, or proceedings pending or, to Avidity’s knowledge, threatened by any Third Party; nor, to Avidity’s knowledge, are there any formal inquiries initiated or written notices received that
may lead to the institution of any such legal proceedings, in each case (or in aggregate) against Avidity or its properties, assets or business, which if adversely decided, would, individually or in the aggregate, have a material adverse effect on,
or prevent Avidity’s ability to conduct the Research or to grant the licenses or rights granted to Lilly under this Agreement. 
 9.2.8
Assignment by Employees, Agents and Consultants. Avidity has obtained from each of its current employees, consultants and contractors, and will obtain from each of its future employees, consultants and contractors, in each case who perform
research or development activities pursuant to this Agreement, written agreements containing obligations of confidentiality and non-use and an assignment to Avidity of all inventions (and all of such
Person’s rights thereto) for which Avidity or Lilly is intended to have ownership or license rights under this Agreement such that no such employee, contractor or consultant shall retain any rights to such inventions that would prevent or
conflict with Lilly’s rights of ownership or use of such inventions contemplated by this Agreement. 
 9.2.9 No Government
Funding. The inventions claimed or covered by the Avidity Patents: (a) were not conceived, discovered, developed or otherwise made in connection with any research activities funded, in whole or in part, by the federal government of the
United States of America or any agency thereof; (b) are not a “subject invention” as that term is described in 35 U.S.C. Section 201(e) and (c) are not otherwise subject to the provisions of the Patent and Trademark Law
Amendments Act of 1980, as amended, codified at 35 U.S.C. §§ 200-212, as amended, as well as any regulations promulgated pursuant thereto, including in 37 C.F.R. Part 401. 

  
 42 

 9.2.10 Regulatory Documentation. Avidity and its Affiliates have generated, prepared,
maintained and retained all Regulatory Documentation that is required to be maintained or retained pursuant to and in accordance with, to the extent applicable, good laboratory and clinical practice and Applicable Law and all such information is
true, complete and correct in all material respects and what it purports to be. “Regulatory Documentation” means all: (a) applications (including all INDs and applications for Regulatory Approval), registrations, licenses,
authorizations and approvals (including Regulatory Approvals); (b) correspondence and reports submitted to or received from Regulatory Authorities (including minutes and official contact reports relating to any communications with any
Regulatory Authority) and all supporting documents with respect thereto, including all adverse event files and complaint files; (c) supplements or changes to any of the foregoing following Regulatory Approval; and (d) clinical and other
data, including Clinical Trial data, contained or relied upon in any of the foregoing; in each case ((a), (b), (c) and (d)) relating to a Collaboration Target and Compounds Directed Against a Collaboration Target. 

9.2.11 Balance Sheet. Avidity has less than sixteen million nine hundred thousand Dollars ($16,900,000) of total assets as stated on
Avidity’s last regularly prepared balance sheet dated December 31, 2018. 
 9.3 Mutual Covenants. 

9.3.1 Employees, Consultants and Contractors. Each Party covenants that it has obtained or will obtain written agreements from each of
its employees, consultants and contractors who perform research or development activities pursuant to this Agreement, which agreements will obligate such persons to obligations of confidentiality and non-use
and to assign inventions in a manner consistent with the provisions of this Agreement. 
 9.3.2 Debarment. Each Party represents,
warrants and covenants to the other Party that neither it nor its officers, employees, agents, consultants or any other person used by such Party in the performance of the respective research and development activities under this Agreement is:
(a) debarred or disqualified under the U.S. Federal Food, Drug and Cosmetic Act; (b) listed by any government or regulatory agencies as ineligible to participate in any government healthcare programs or government procurement or non-procurement programs (as that term is defined in 42 U.S.C. § 1320a-7b(f)), or excluded, debarred, suspended or otherwise made ineligible to participate in any such
program; or (c) convicted of a criminal offense related to the provision of healthcare items or services, or is subject to any such pending action. Each Party will not during the Term knowingly, employ or use, directly or indirectly, including
through Affiliates the services of any such person. In the event that either Party becomes aware of the debarment or disqualification or threatened debarment or disqualification of any person providing services to such Party, directly or indirectly,
including through Affiliates or, in the case of Lilly, Sublicensees, which directly or indirectly relate to activities contemplated by this Agreement, such Party shall promptly notify the other Party in writing and such Party shall cease employing,
contracting with, or retaining any such person to perform any such services. 

  
 43 

 9.4 Compliance. 

9.4.1 Compliance with this Agreement. Each of the Parties shall, and shall cause their respective Affiliates to, comply in all material
respects with the terms of this Agreement. 
 9.4.2 Compliance with Applicable Laws. Each Party covenants to the other that in the
performance of its obligations under this Agreement, such Party shall comply with, and shall cause its Affiliates and its and its Affiliates’ employees and contractors to comply, with all Applicable Laws. No Party shall, or shall be required
to, undertake any activity under or in connection with this Agreement which violates, or which it believes, in good faith, may violate, any Applicable Laws. 

9.4.3 Compliance with Party Specific Regulations. In carrying out their respective obligations under this Agreement, the Parties agree
to cooperate with each other as may reasonably be required to help ensure that each is able to fully meet its obligations with respect to all judgments, decrees, orders or similar decisions issued by any Governmental Authority specific to a Party,
and all consent decrees, corporate integrity agreements, or other agreements or undertakings of any kind by a Party with any Governmental Authority, in each case as the same may be in effect from time to time and applicable to a Party’s
activities contemplated by this Agreement (the “Party Specific Regulations”). Neither Party shall be obligated to pursue any course of conduct that would result in such Party being in material breach of any Party Specific
Regulation applicable to it; provided that in the event that a Party refuses to fulfill its obligations under this Agreement in any material respect on such basis, the other Party shall have the right to terminate this Agreement in accordance with
Section 12.2; however, under such circumstances, such termination shall be the sole remedy for such terminating Party and such terminating Party shall not be entitled to any other remedy under law or equity. All Party Specific Regulations are
binding only in accordance with their terms and only upon the Party to which they relate. 
 9.4.4 Compliance with Internal Compliance
Codes. All Internal Compliance Codes shall apply only to the Party to which they relate. The Parties agree to cooperate with each other to help insure that each Party is able to comply with the substance of its respective Internal Compliance
Codes and, to the extent practicable, each Party shall operate in a manner consistent with its Internal Compliance Codes applicable to its performance under this Agreement. “Internal Compliance Codes,” as used in this
Section 9.4.4, means a Party’s internal policies and procedures intended to ensure that a Party complies with Applicable Laws, Party Specific Regulations, and such Party’s internal ethical, medical and similar standards. 

9.4.5 Compliance with Anti-Corruption Laws. In connection with this Agreement, the Parties shall comply with all applicable local,
national, and international laws, regulations, and industry codes dealing with government procurement, conflicts of interest, corruption or bribery, including, if applicable, the U.S. Foreign Corrupt Practices Act of 1977, as amended, and any laws
enacted to implement the Organisation of Economic Cooperation and Development Convention on Combating Bribery of Foreign Officials in International Business Transactions. 

  
 44 

 9.4.6 Prohibited Conduct. Without limiting the other obligations of the Parties set
forth in this Section 9.4, each Party covenants to the other that, as of the Effective Date and in the performance of its obligations under this Agreement through the expiration and termination of this Agreement, such Party and, to its
knowledge, its Affiliates and its and its Affiliates’ employees and contractors, in connection with the performance of their respective obligations under this Agreement, have not made, offered, given, promised to give, or authorized, and will
not make, offer, give, promise to give, or authorize, any bribe, kickback, payment or transfer of anything of value, directly or indirectly through Third Parties, to any Government Official for the purpose of: (a) improperly influencing any act
or decision of the Person or Government Official; (b) inducing the Person or Government Official to do or omit to do an act in violation of a lawful or otherwise required duty; (c) securing any improper advantage; or (d) inducing the
Person or Government Official to improperly influence the act or decision of any organization, including any government or government instrumentality, to assist any Party in obtaining or retaining business. For the purpose of this Section
“Government Official” means: (x) any officer, employee (including physicians, hospital administrators, or other healthcare professionals), agent, representative, department, agency, de facto official, representative,
corporate entity, instrumentality or subdivision of any government, military or international organization, including any ministry or department of health or any state-owned or affiliated company or hospital; (y) any candidate for political
office, any political party or any official of a political party, in each case for the purpose of obtaining or retaining business for or with, or directing business to, any Person, including either Party; or (z) any Person acting in an official
capacity on behalf of any of the foregoing. 
 9.5 Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS Article 9, NEITHER
PARTY MAKES ANY REPRESENTATIONS OR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, QUALITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT, OR VALIDITY OF PATENT CLAIMS. NOTHING IN THIS
AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN BY EITHER PARTY THAT EITHER PARTY WILL BE SUCCESSFUL IN OBTAINING ANY PATENTS OR THAT ANY PATENTS WILL ISSUE BASED ON A PENDING APPLICATION. WITHOUT LIMITING THE RESPECTIVE
RIGHTS AND OBLIGATIONS OF THE PARTIES EXPRESSLY SET FORTH HEREIN, EACH PARTY SPECIFICALLY DISCLAIMS ANY GUARANTEE THAT THE PRODUCTS WILL BE SUCCESSFUL, IN WHOLE OR IN PART. 

ARTICLE 10 

INDEMNIFICATION 
 10.1
Indemnity. 
 10.1.1 By Avidity. Subject to Section 10.1.3, Avidity shall defend, indemnify and hold harmless
Lilly and its Affiliates, and their respective directors, officers, employees, and agents (each, a “Lilly Indemnitee”) from and against any and all costs, fees, expenses, losses, liabilities, and damages, including reasonable
legal expenses and attorneys’ fees (collectively, “Losses”) to which any Lilly Indemnitee may become subject as a result of any claim, demand, 

  
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 action or other proceeding by any Third Party (a “Claim”) to the extent such Losses
arise out of: (a) the gross negligence or willful misconduct of Avidity or its Affiliates in connection with its activities under this Agreement; (b) the breach of this Agreement or the representations, warranties, and covenants made
hereunder by Avidity; or (c) the research, development, or use of any Compound or Product by or on behalf of Avidity or its Affiliates (including from product liability and intellectual property infringement claims, but except to the extent
resulting from the incorporation of Lilly Proprietary Technology therein); except, in each case, to the extent such Losses result from matters subject to clause (a), (b), or (c) of Section 10.1.2. 

10.1.2 By Lilly. Subject to Section 10.1.3, Lilly shall defend, indemnify and hold harmless Avidity, its Affiliates, and their
respective directors, officers, employees and agents (each, an “Avidity Indemnitee”) from and against any and all Losses to which any Avidity Indemnitee may become subject as a result of any Claim to the extent such Losses
arise out of: (a) the gross negligence or willful misconduct of Lilly, its Affiliates, or their respective Sublicensees in connection with its activities under this Agreement; (b) the breach of this Agreement or the representations,
warranties and covenants made hereunder by Lilly; or (c) the research, development, manufacture, use, offer for sale, sale, or other exploitation of any Compound or Product by or on behalf of Lilly, its Affiliates, or their respective
Sublicensees (including from product liability and intellectual property infringement claims, but except to the extent resulting from the incorporation of Avidity Proprietary Technology therein); except, in each case, to the extent such Losses
result from matters subject to clause (a), (b) or (c) of Section 10.1.1. 
 10.1.3 Procedure. A Party that intends to claim
indemnification under this Article 10 (the “Indemnitee”) shall promptly notify the Indemnitor (the “Indemnitor”) in writing of any Claim in respect of which the Indemnitee intends to claim such
indemnification. The failure to deliver written notice to the Indemnitor within a reasonable time after the commencement of any action with respect to a Claim shall only relieve the Indemnitor of its indemnification obligations under this Article 10
if and to the extent the Indemnitor is actually and materially prejudiced thereby. The Indemnitor has sole control of the defense or settlement thereof. The Indemnitee shall cooperate fully with the Indemnitor and its legal representatives in the
investigation of any action with respect to a Claim covered by this indemnification. The Indemnitee may participate at its expense in the Indemnitor’s defense of and settlement negotiations for any Claim with counsel of the Indemnitee’s
own selection. The Indemnitor shall not settle any Claim without the prior written consent of the Indemnitee, not to be unreasonably withheld. So long as the Indemnitor is actively defending the Claim in good faith, the Indemnitee shall not settle
or compromise any such Claim without the prior written consent of the Indemnitor. If the Indemnitor does not assume and conduct the defense of the Claim as provided above: (a) the Indemnitee may defend against, consent to the entry of any
judgment, or enter into any settlement with respect to such Claim in any manner the Indemnitee may deem reasonably appropriate (and the Indemnitee need not consult with, or obtain any consent from, the Indemnitor in connection therewith); and
(b) the Indemnitor shall remain responsible to indemnify the Indemnitee as provided in this Article 10. 
 10.2 Insurance. During
the Term, each Party shall maintain such types and amounts of liability insurance (including self-insurance) as is normal and customary in the industry generally for similarly situated parties and adequate to cover its obligations under this
Agreement, and Avidity will upon request provide Lilly with a certificate of insurance in that regard, along with any amendments and revisions thereto. 

  
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 ARTICLE 11 

CONFIDENTIALITY 
 11.1
Confidential Proprietary Information. 
 11.1.1 Confidential Proprietary Information. In connection with this Agreement, Lilly
may disclose certain confidential information that is Lilly Proprietary Technology to Avidity and Avidity may disclose certain confidential information that is Avidity Proprietary Technology to Lilly (such confidential information,
“Confidential Proprietary Information”). Without limiting the foregoing, the terms of this Agreement are the Confidential Proprietary Information of both Parties and shall be treated confidentially by each of the Parties,
subject to the exceptions set forth in Section 11.1.6. Information exchanged by the Parties pursuant to the Confidential Disclosure Agreement shall be governed by such Confidential Disclosure Agreement, provided that any such information that
is subsequently exchanged by the Parties under this Agreement shall, from that time, be governed by the terms of this Agreement (including the requirement to mark or prominently designate Avidity Proprietary Technology or Lilly Proprietary
Technology as such, in accordance with Sections 1.15 and 1.78, at the time of the subsequent exchange or immediately thereafter). 
 11.1.2
Restrictions. A Party (the “Receiving Party”) that receives Confidential Proprietary Information from the other Party (the “Disclosing Party”) shall keep all the Disclosing Party’s
Confidential Proprietary Information in confidence with the same degree of care with which the Receiving Party holds its own confidential information (but in no event less than a commercially reasonable degree of care). A Receiving Party shall not
use the Disclosing Party’s Confidential Proprietary Information except in connection with the performance of its obligations and exercise of its rights under this Agreement. 

11.1.3 Exceptions. The obligations of confidentiality and restriction on use of Confidential Proprietary Information under
Section 11.1.2 do not apply to any information that the Receiving Party can prove by competent written evidence: (a) is now, or hereafter becomes, through no act or failure to act on the part of the Receiving Party, generally known or
available to the public; (b) is known by the Receiving Party at the time of receiving such information, other than by previous disclosure of the Disclosing Party, or its Affiliates, employees, agents, consultants, or contractors; (c) is
hereafter furnished to the Receiving Party without restriction by a Third Party who has no obligation of confidentiality or limitations on use with respect thereto, as a matter of right; or (d) is independently discovered or developed by the
Receiving Party without the use of Confidential Proprietary Information belonging to the Disclosing Party. Specific information shall not be deemed to be within any of the foregoing exclusions merely because it is embraced by more general
information falling within those exclusions. 

  
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 11.1.4 Permitted Disclosures. The Receiving Party may disclose Confidential
Proprietary Information belonging to the Disclosing Party as expressly permitted by this Agreement or if and to the extent such disclosure is reasonably necessary in the following instances: 

(a) Prosecution and Maintenance of Patents as permitted by this Agreement; 

(b) Regulatory Filings for Product that such Party has a license or right to develop hereunder in a given country or jurisdiction; 

(c) prosecuting or defending litigation as permitted by this Agreement; 

(d) complying with applicable court orders or governmental regulations, including mutually recognized securities laws; 

(e) in response to a valid request by a U.S., state, foreign, provincial, or local tax authority, in which case either Party may disclose, a
copy of this Agreement (including any Exhibits, schedules, ancillary agreements, and amendments hereto); 
 (f) disclosure to its and its
Affiliates’ employees, consultants, contractors and agents, and to Sublicensees (in the case of Lilly), in each case on a need-to-know basis in connection with the
research, development, making, having made, use, keeping, import, export, offering for sale, selling, or otherwise exploiting Products in the Field in the Territory, and commercialization of the Product in accordance with the terms of this
Agreement, in each case under written obligations of confidentiality and non-use at least as stringent as those herein; and 

(g) disclosure to potential and actual investors, acquirers, licensees and other financial or commercial partners solely for the purpose of
evaluating or carrying out an actual or potential investment, acquisition, or collaboration, in each case under written obligations of confidentiality and non-use at least as stringent as those herein;
provided, however, that with respect to disclosure to actual or bona fide potential investors, such disclosure is under a written obligation of confidentiality that is consistent with market terms, including a shorter period of time
during which such information must be held confidential. 
 Notwithstanding the foregoing, if a Party is required to make a disclosure of the other
Party’s Confidential Proprietary Information pursuant to Section 11.1.4(c) or (d), it shall, except where impracticable, give reasonable advance notice to the other Party of such disclosure and use efforts to secure confidential treatment
of such Confidential Proprietary Information at least as diligent as such Party would use to protect its own Confidential Proprietary Information, but in no event less than reasonable efforts. Any information disclosed pursuant to
Section 11.1.4(c) or (d) remains Confidential Proprietary Information and subject to the restrictions set forth in this Agreement, including the foregoing provisions of this Article 11. 

11.1.5 Public Domain Information and Residual Knowledge. Nothing in this Agreement shall prevent a Party from using any Know-How that is in the public domain. A Party shall also not be restricted under, and shall not be in breach of, this Agreement from using, within or outside this Agreement and for any purpose, any general
knowledge, skill, and expertise acquired by its employees (or its Affiliates’ employees) in their performance of this 

  
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Agreement (“Residuals”) solely to the extent such Residuals shall have been retained in the unaided memory (without intentional memorization) of such employees in
intangible form and without use by the Party or such employees of tangible copies of any Confidential Proprietary Information of the other Party; provided that this provision will not be deemed in any event to provide any right to infringe the
Patent rights of the other Party or of Third Parties that have licensed or provided materials to the other Party; provided, further, that a Party’s use of such Residuals is on an “as is, where is” basis, with all faults and all
representations and warranties disclaimed and at such Party’s sole risk. 
 11.1.6 Disclosure of Agreement. Notwithstanding the
foregoing, either Party or its Affiliates may disclose the relevant terms of this Agreement: (a) to the extent required or advisable to comply with the rules and regulations promulgated by the U.S. Securities and Exchange Commission or any
equivalent governmental agency in any country in the Territory, provided that such Party shall submit a confidential treatment request in connection with such disclosure and shall submit with such confidential treatment request only such redacted
form of this Agreement as may be mutually agreed in writing by the Parties; (b) upon request from a Governmental Authority (such as a tax authority), provided the disclosing Party uses reasonable efforts to ensure the Governmental Authority
maintains such terms as confidential; (c) to applicable licensors, to the extent necessary to comply with the terms of any Third Party license agreement, the rights under which are sublicensed to the other Party under this Agreement; and
(d) to the extent necessary to perform obligations or exercise rights under this Agreement, to any Sublicensee, collaborator or potential Sublicensee or potential collaborator of such Party, provided that any Sublicensee, collaborator or
potential Sublicensee or collaborator agree in writing to be bound by obligations of confidentiality and non-use no less protective of the Disclosing Party than those set forth in this Agreement. 

11.1.7 Survival. Each Party’s obligations under this Section 11.1 apply during the Term and continue for
[* * *] thereafter with respect to Confidential Proprietary Information. 
 11.2
Publicity. The Parties shall issue a joint press release in the form attached hereto as Exhibit 11.2 promptly after the Effective Date. Thereafter, either Party may make subsequent public disclosure of the contents of such press
release and, except as permitted under Section 11.1.4 and this Section 11.2, neither Party shall issue any subsequent press release or public statement disclosing information relating to this Agreement or the transactions contemplated hereby or
the terms hereof without the prior written consent of the other Party, not to be unreasonably withheld, conditioned, or delayed; provided however, that neither Party will be prevented from complying with any duty of disclosure it may have pursuant
to Applicable Laws or pursuant to the rules of any recognized stock exchange or quotation system subject to the restrictions set forth in Sections 11.1.4 and 11.1.5. If either Party desires to issue a press release or other public statement
disclosing information relating to this Agreement or the transactions contemplated hereby or the terms hereof, the issuing Party will provide the other Party with a copy of the proposed press release or public statement. The issuing Party shall
specify with each such proposed press release or public statement, taking into account the urgency of the matter being disclosed, a reasonable period of time within which the Receiving Party may provide any comments on such proposed press release or
public statement. If the reviewing Party provides any comments, the Parties shall consult with one another on such 

  
 49 

 
proposed press release or public statement and work in good faith to prepare a mutually acceptable press release or public statement. Each Party may repeat any information relating to this
Agreement that has already been publicly disclosed in accordance with this Section 11.2, provided such information continues as of such time to be accurate. 

11.3 Publication. Lilly shall be entitled to issue scientific publications and make presentations with respect to the Compounds, the
Products, the Programs, or their testing in accordance with Lilly’s internal guidelines without approval by Avidity, and Lilly shall be in control of any publications or scientific presentations regarding the Products or their testing subject
to this Section 11.3. Avidity shall not issue any scientific publications regarding the Compounds, the Products or their testing without Lilly’s prior written consent. With respect to any paper or presentation proposed for disclosure by
Lilly or its Affiliates that includes Confidential Proprietary Information of Avidity (excluding any information that falls under the exceptions of Section 11.1.3), Avidity may review and comment on such proposed paper or presentation. Lilly
shall submit to Avidity the proposed publication or presentation (including posters, slides, abstracts, manuscripts, marketing materials and written descriptions of oral presentations) at least [* * *]
prior to the date of submission for publication or the date of presentation, whichever is earlier, of any of such submitted materials. Avidity shall review such submitted materials and respond to Lilly as soon as reasonably possible, but in any
case, within [* * *] after receipt thereof. At the option of Avidity, Lilly shall: (a) delete from such proposed publication or presentation any Confidential Proprietary Information of Avidity; and
(b) upon a determination that such publication contains patentable material, delay the date of such submission for publication or the date of such presentation for [* * *] to permit the appropriate
Party to seek appropriate patent protection. 
 ARTICLE 12 

TERM & TERMINATION 

12.1 Term. This Agreement commences on the Effective Date and, unless terminated earlier as provided in this Article 12, shall continue
on a Product-by-Product basis until the expiration of the last Royalty Term in the Territory for such Product (the “Term”). Upon the expiration
of the Royalty Term for a Product in a particular country, the licenses granted by Avidity to Lilly under Section 3.1.1 with respect to such Product and such country shall survive and become perpetual, fully-paid, and royalty-free, and shall
remain exclusive (even as to Avidity and its Affiliates). 
 12.2 Termination for Material Breach. 

12.2.1 Termination. Either Party may terminate this Agreement upon written notice to the other Party if such other Party materially
breaches its obligations under this Agreement and, after receiving written notice from the non-breaching Party identifying such material breach in reasonable detail, fails to cure such material breach within
thirty (30) days from the date of such notice; provided that if such non-payment related breach is not reasonably capable of cure within such thirty (30)-day
period, the breaching Party may submit, prior to the end of such thirty (30)-day period, a reasonable plan to cure the breach within an additional sixty (60) days, in which case the other Party may not
terminate this Agreement for so long as the breaching Party is using Commercially Reasonable Efforts to implement such cure plan within such additional sixty (60) days. 

  
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 12.2.2 Dispute. If the alleged breaching Party disputes in good faith the existence
or materiality of a breach specified in a notice provided by the other Party in accordance with Section 12.2.1, and such alleged breaching Party provides the other Party notice of such dispute within such thirty
(30)-day period, then the non-breaching Party may not terminate this Agreement under Section 12.2.1 unless and until it has been finally determined pursuant to
Article 13 that the alleged breaching Party has materially breached this Agreement and such Party fails to cure such breach within thirty (30) days following such court’s decision. During the pendency of such dispute, all of the terms and
conditions of this Agreement shall remain in effect and the Parties shall continue to perform all of their respective obligations hereunder. 

12.2.3 Lilly Option to Continue Agreement. Notwithstanding anything to the contrary under this Agreement, after the Research Term, Lilly
shall have the right, at its option and by written notice to Avidity, in lieu of exercising its right to terminate this Agreement under this Section 12.2, to instead continue this Agreement in accordance with its terms subject to Lilly’s
making all payments due from Lilly to Avidity (offset by any damages resulting from Avidity’s material breach, as finally determined under Article 13, that are not otherwise previously paid directly to Lilly by Avidity), and in which case:
(a) the JRC will disband; and (b) Avidity will have no further right; (i) under Section 8.2.2 and Section 8.3.3, to receive information with respect to, be represented by counsel in, object to the commencement of, share
in recoveries from, or otherwise participate in enforcement of Product-Specific Patents by Lilly; or (ii) under Section 8.4, to participate and be represented in any claim of infringement that the commercialization of a Product infringes
the Patent rights of a Third Party. 
 12.2.4 Know-How Transfer. Within thirty
(30) days following Lilly’s election not to terminate this Agreement under Section 12.2.3, Avidity shall disclose or deliver to Lilly, to the extent not previously provided, copies of all data and information in Avidity’s (or its
Affiliates’) possession relating to the Avidity Know-How which is reasonably necessary for Lilly’s Research, development or Commercialization of such Product (including for regulatory purposes). Upon
Lilly’s reasonable request, Avidity will: (a) provide reasonable technical assistance to Lilly during such disclosure or delivery set forth in the preceding sentence; and (b) make its employees and
non-employee consultants reasonably available at their respective places of employment to consult with Lilly on issues arising in the course of Lilly’s Research, development or Commercialization and in
connection with any request related to a Product from any Regulatory Authority, including regulatory, scientific, technical and clinical testing issues. The Know-How transfer to be undertaken under this
Section 12.2.4 shall be overseen by a Working Group established for such purposes, which Working Group may put in place a technology transfer plan expressly identifying Know-How owned or Controlled by
Avidity or its Affiliates to be transferred and the timing for such transfer. 
 12.3 Termination by Lilly. 

12.3.1 Partial Termination. Lilly may, at any time in its sole discretion and without cause, terminate this Agreement on a Collaboration
Target-by-Collaboration Target basis upon at least; (a) sixty (60) days’ prior written notice to Avidity if a First Commercial Sale

  
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has not occurred for the lead Product with respect to such Collaboration Target; or (b) one hundred eighty (180) days’ prior written notice to Avidity if a First Commercial Sale of
the lead Product for such Collaboration Target has occurred. Notwithstanding the foregoing, but without limiting Lilly’s right to terminate this Agreement in its entirety pursuant to Section 12.2.1, Lilly may not exercise its rights under
this Section 12.3.1 to terminate this Agreement on a Collaboration Target-by-Collaboration Target basis prior to the third anniversary of the Effective Date if the
effect of such termination is to cause there to be Programs for fewer than three (3) Collaboration Targets. 
 12.3.2 Entire
Agreement. Lilly may, in its sole discretion, terminate this Agreement in its entirety at any time and without cause upon at least: (a) sixty (60) days’ prior written notice to Avidity if a First Commercial Sale has not occurred for
any Product; or (b) one hundred eighty (180) days’ prior written notice to Avidity if a First Commercial Sale of any Product has occurred. 

12.4 Termination for Patent Challenges. Except to the extent the following is unenforceable under the Applicable Law of a jurisdiction,
then: 
 12.4.1 if Lilly, its Affiliates, or Sublicensees, directly or indirectly: (a) initiate or request an interference or opposition
proceeding with respect to any Avidity Patents; (b) make, file, or maintain any claim, demand, lawsuit, or cause of action to challenge the validity or enforceability of any Avidity Patents; or (c) oppose any extension of, or the grant of
a supplementary protection certificate with respect to, any Avidity-Controlled Patent, in each case other than in response to a threat of an infringement claim or as necessary to secure allowance of an Avidity-owned patent claim, then Avidity may
terminate this Agreement solely with respect to the challenged Avidity Patent(s) with respect to any Programs or Products to which such patent challenge relates upon thirty (30) days’ prior written notice to Lilly; and 

12.4.2 if Avidity, its Affiliates, or Sublicensees, directly or indirectly, (a) initiate or request an interference or opposition
proceeding with respect to any Lilly Patents, (b) make, file, or maintain any claim, demand, lawsuit, or cause of action to challenge the validity or enforceability of any Lilly Patents, or (c) oppose any extension of, or the grant of a
supplementary protection certificate with respect to, any Lilly Patents, in each case other than in response to a threat of an infringement claim or as necessary to secure allowance of a Lilly-owned patent claim, then Lilly may terminate this
Agreement with respect to the challenged Lilly Patent(s) with respect to any Programs or Products to which such patent challenge relates upon thirty (30) days’ prior written notice to Avidity. 

12.5 Effects of Termination. The following shall apply upon termination of this Agreement made in accordance with this Article 12. If
this Agreement is terminated with respect to a Collaboration Target, such Collaboration Target is a Terminated Target. Each Product and any Compounds contained in such Product that were Directed Against such Terminated Target are Terminated
Products. If this Agreement is terminated in its entirety, all Collaboration Targets are Terminated Targets and all Products are Terminated Products. 

  
 52 

 12.5.1 Termination of Licenses. All licenses for Terminated Products granted under
Article 3 terminate automatically as of the termination effective date; provided that, if Lilly (or its Affiliates or Sublicensees) has inventory of usable Product(s) as of the effective date of termination, then Lilly (and its Affiliates and
Sublicensees) may continue to sell off such inventory of Products in the Field in the Territory (and fulfill customer orders therefor) until the earlier to occur of one hundred eighty (180) days after the effective date of termination and the
date on which Lilly (or its Affiliates or Sublicensees) no longer has such inventory of Product(s) and shall pay Avidity any applicable royalties due based on such sales. Any permitted sublicense granted by Lilly or its Affiliate to a Third Party
under the licenses granted to Lilly under this Agreement shall survive the termination of this Agreement, provided that, in the case where termination of this Agreement for Lilly’s uncured material breach pursuant to Section 12.2, such
Sublicensee did not cause such uncured material breach. If permitted under such a surviving sublicense, effective upon termination of this Agreement, such sublicense shall become a direct license from Avidity to such Sublicensee, provided, that, if
assignment of the sublicense or such conversion of the sublicense to a direct license is not permitted under the applicable sublicense, Lilly shall be entitled to retain its right to payment thereunder and shall remain liable for royalties under
Section 7.3 of this Agreement with respect to sales by such Sublicensee. 
 12.5.2 Destruction of Confidential Proprietary
Information. Subject to the potential transfer of any data and information covered below in Section 12.5.3, each Receiving Party shall destroy (at the Disclosing Party’s written request) all such Confidential Proprietary Information of
the Receiving Party in its possession as of the effective date of expiration or termination (with the exception of one copy of such Confidential Proprietary Information, which may be retained by the legal department of the Receiving Party to confirm
compliance with the non-use and non-disclosure provisions of this Agreement), and any Confidential Proprietary Information of the Disclosing Party contained in its
laboratory notebooks or databases, provided that each Receiving Party may retain and continue to use such Confidential Proprietary Information of the Disclosing Party to the extent necessary to exercise any surviving rights, licenses or
obligations under this Agreement. Notwithstanding the foregoing, a Receiving Party shall not be required to destroy any computer files created during automatic system back up that are subsequently stored securely by it and not readily accessible to
its employees, consultants, or others who received the Disclosing Party’s Confidential Proprietary Information under this Agreement. 

12.5.3 Reversion. In the event of any termination of this Agreement in its entirety or with respect to a Program, if requested by
Avidity, the Parties shall negotiate in good faith to enter into a separate agreement detailing the potential transition to Avidity of Lilly’s rights and obligations (or portions thereof) with respect to any Terminated Target or Terminated
Product, in each case that is Covered by a Lilly Patent, which agreement may provide for the payment of royalties or other compensation by Avidity to Lilly for the Commercialization by Avidity of any such Terminated Target or Terminated Product; and
provided that: (a) Lilly shall have no obligation to negotiate or grant a license to any Excluded Technologies; (b) Lilly shall have no obligation to provide Avidity any Excluded Technology (including any Antibody) used in such Terminated
Targets or Terminated Products (or any rights to any such Excluded Technology or Antibody); and (c) with respect to any Lilly Technology that is licensed to Lilly from a Third Party, Lilly shall have no obligation to negotiate with such Third
Party for, or grant, any sublicense rights to Avidity, but shall advise Avidity of the identity of such Third Party licensor and the nature of the relevant Lilly Technology, and Avidity shall be solely responsible, at its sole cost and expense, for
obtaining and negotiating for any rights to such Third Party’s 

  
 53 

 
technology or intellectual property. Notwithstanding the foregoing, if the Parties are unable to agree on the terms of such a transition agreement within thirty (30) days of commencement of
discussions with respect thereto despite their good faith efforts, Lilly shall have no further obligation to enter into such an agreement or negotiate with Avidity with respect thereto. 

12.6 Survival. Expiration or termination of this Agreement shall not relieve the Parties of any obligation or right accruing prior to
such expiration or termination. Except as set forth below or elsewhere in this Agreement, the obligations and rights of the Parties under the following provisions of this Agreement shall survive expiration or termination of this Agreement:
Article 1 (to the extent such definitions are used in surviving provisions), Article 10 (with respect to claims for which the cause of action arose prior to the effective date of termination), and Article 13, and Section 4.5.1,
Section 4.7 (provided that such provision shall only survive for [* * *] after expiration or termination of this Agreement), Section 7.1 (unless terminated by Lilly pursuant to
Section 12.2), Section 7.2 (with respect to Milestone Events reached prior to such expiration or termination), Section 7.3 (with respect to sales of Product made before such expiration or termination or pursuant to
Section 12.2.3), Section 7.5, Section 7.6, Section 7.7, Section 7.8, Section 8.1, Section 8.2, Section 8.3 (except for Sections 8.3.2 and 8.3.3), Section 8.4 (except with regard to Lilly Patents or Avidity
Patents), Section 8.6, Section 11.1 (for the [* * *] survival period in Section 11.1.7), Section 12.5, this Section 12.6, Section 14.1, Section 14.2, Section 14.5,
Section 14.9, Section 14.11, Section 14.16, and Section 14.17. 
 12.7 Bankruptcy Code. If this Agreement is
rejected by a Party as a debtor under Section 365 of the United States Bankruptcy Code or similar provision in the bankruptcy laws of another jurisdiction (the “Code”), then, notwithstanding anything else in this
Agreement to the contrary, all licenses and rights to licenses granted under or pursuant to this Agreement by the Party in bankruptcy to the other Party are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the Code (or
similar provision in the bankruptcy laws of the jurisdiction), licenses of rights to “intellectual property” as defined under Section 101(35A) of the Code (or similar provision in the bankruptcy laws of another applicable
jurisdiction). The Parties agree that a Party that is a licensee of rights under this Agreement shall retain and may fully exercise all of its rights and elections under the Code, and that upon commencement of a bankruptcy proceeding by or against a
Party under the Code, the other Party shall be entitled to a complete duplicate of, or complete access to (as such other Party deems appropriate), any such intellectual property and all embodiments of such intellectual property, if not already in
such other Party’s possession, shall be promptly delivered to such other Party: (a) upon any such commencement of a bankruptcy proceeding upon written request therefor by such other Party, unless the bankrupt Party elects to continue to
perform all of its obligations under this Agreement; or (b) if not delivered under the foregoing subclause (a), upon the rejection of this Agreement by or on behalf of the bankrupt Party upon written request therefor by the other Party. The
foregoing provisions of this Section 12.7 are without prejudice to any rights a Party may have arising under the Code. 

  
 54 

 ARTICLE 13 

GOVERNING LAW; DISPUTE RESOLUTION 

13.1 Governing Law. This Agreement is governed by and will be construed in accordance with the laws of the State of New York,
without reference to its conflict of laws principles. The United Nations Convention of International Contracts on the Sale of Goods (the Vienna Convention) does not apply to this Agreement. 

13.2 Disputes. The Parties recognize that controversies or claims arising out of, relating to, or in connection with this Agreement may
arise from time to time. It is the objective of the Parties to establish procedures to facilitate the resolution of disputes in an expedient manner by mutual cooperation and without resort to litigation. To accomplish this objective, the Parties
shall follow the procedures set forth in this Article 13 to resolve any dispute. If any dispute, claim or controversy of any nature arising out of or relating to this Agreement, including any action or claim based on tort, contract or statute, or
concerning the interpretation, effect, termination, validity, performance or breach of this Agreement (each, a “Dispute”), arises between the Parties, either Party may refer the Dispute to Executive Officers of each Party for
resolution within [* * *] of a written request by either Party to the other Party. Each Party, within [* * *] after a Party has received such written request
from the other Party to so refer such Dispute, shall notify the other Party in writing of the Executive Officer to whom such Dispute is referred. If, after an additional [* * *] after the notice of
Dispute, such Executive Officers have not succeeded in negotiating a resolution of the Dispute, and a Party wishes to pursue the matter, each such Dispute, controversy or claim that is not an “Excluded Claim” (defined in Section 13.5)
may, subject to each Party consenting, be submitted for nonbinding mediation administered by the American Arbitration Association (“AAA”) pursuant to its Commercial Mediation Procedures in effect at the time such Dispute
arises (the “AAA Mediation Procedures”), or the Parties may seek to resolve the Dispute in any federal court having jurisdiction thereof located in New York, New York as further described in Section 13.4. The option to
mediate under this Article 13 shall extend to any claims by or against the Parties and their respective Affiliates and any agents, principals, officers, directors, or employees of either of the Parties or their respective Affiliates. 

13.3 Mediation. Any mediation that the Parties decide to pursue shall be conducted by a single neutral mediator experienced in the
business of pharmaceuticals. If the issues in dispute involve scientific, technical or commercial matters, the mediator chosen hereunder may engage experts that have educational training or industry experience sufficient to demonstrate a reasonable
level of relevant scientific, medical and industry knowledge, as necessary to help resolve the dispute. The Parties shall select the mediator promptly following the initiation of the mediation. If the Parties are unable or fail to agree upon the
mediator within [* * *] following the initiation of mediation, the mediator shall be appointed by AAA. The mediation shall be conducted in New York, New York, and all proceedings and communications shall
be in English. Except to the extent necessary to enforce a legal right or as may be required by law, neither a Party nor a mediator may disclose the existence, content, or results of a mediation without the prior written consent of both Parties. In
no event shall a mediation be initiated after the date when commencement of a legal or equitable proceeding based on the dispute, controversy or claim would be barred by the applicable New York statute of limitations. Each

  
 55 

 
Party shall bear its own costs and expenses and attorneys’ fees and an equal share of the mediator’s fees and any administrative fees of mediation. For clarity, notwithstanding anything
to the contrary in this Agreement or as set forth in the AAA Mediation Procedures, under no circumstance shall any such mediation findings or rulings be binding on either Party, unless the Parties subsequently mutually agree to the contrary in
writing. No agreement to mediate shall preclude either Party from subsequently withdrawing from the mediation and commencing an action as described in Section 13.4. 

13.4 Litigation; Equitable Relief. The Federal courts located in New York, New York shall have exclusive jurisdiction over, and
shall be the exclusive venue for resolution of, any Dispute not resolved through the informal Dispute-resolution procedures described above. If, within [* * *] following (a) a notice by either Party
to the other that it does not believe the Dispute can be resolved through the Executive Officers when the Parties do not agree to mediation or (b) if the Parties agree to mediation, termination of such mediation, neither Party has commenced
proceedings seeking to resolve such Dispute in any federal court having jurisdiction, then such Dispute and all related rights, demands, claims, actions, causes of action, suits, proceedings and Losses of every kind and nature shall be deemed to
have been irrevocably waived and released, to the fullest extent permitted under Applicable Laws. Either Party may, at any time and without waiving any remedy under this Agreement, seek from any court having jurisdiction any temporary injunctive or
provisional relief necessary to protect the rights or property of that Party. Any final judgment resolving a Dispute may be enforced by either Party in any court having appropriate jurisdiction. 

13.5 Excluded Claims. As used in this Article 13, the term “Excluded Claim” means any dispute, controversy or
claim that concerns: (a) the validity, enforceability or infringement of any patent, trademark or copyright; or (b) any antitrust, anti-monopoly or competition law or regulation, whether or not statutory. Any Excluded Claim may be
submitted by either Party to any court of competent jurisdiction over such Excluded Claim. 
 ARTICLE 14 

MISCELLANEOUS 
 14.1
Entire Agreement; Amendment. This Agreement, including the Exhibits hereto, sets forth the complete, final and exclusive agreement and all the covenants, promises, agreements, warranties, representations, conditions and understandings between
the Parties hereto with respect to the subject matter hereof and supersedes, as of the Effective Date, all prior and contemporaneous agreements and understandings between the Parties with respect to the subject matter hereof, including the
Confidential Disclosure Agreement. The foregoing may not be interpreted as a waiver of any remedies available to either Party as a result of any breach, prior to the Effective Date, by the other Party of its obligations under the Confidential
Disclosure Agreement. No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the Parties unless reduced to writing and signed by an authorized officer of each Party. 

  
 56 

 14.2 Limitation of Liability. NEITHER PARTY MAY RECOVER FROM THE OTHER
PARTY ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THIS SECTION 14.2 SHALL NOT BE CONSTRUED TO
LIMIT EITHER PARTY’S INDEMNIFICATION OBLIGATIONS UNDER Article 10. 
 14.3 Independent Contractors. The relationship between
Lilly and Avidity created by this Agreement is solely that of independent contractors. This Agreement does not create any agency, distributorship, employee-employer, partnership, joint venture or similar business relationship between the Parties.
Neither Party is a legal representative of the other Party, and neither Party can assume or create any obligation, representation, warranty, or guarantee, express or implied, on behalf of the other Party. 

14.4 Notice. Any notice required or permitted to be given by this Agreement must be in writing, in English. Any and all notices or
other communications or deliveries required or permitted to be provided hereunder must be in writing and will be deemed given and effective if: (a) delivered by hand or by overnight courier with tracking capabilities; (b) mailed postage
prepaid by first class, registered, or certified mail; or (c) delivered by facsimile or electronic mail followed by delivery via either of the methods set forth in clauses (a) and (b) of this Section 14.4, in each case, addressed as
set forth below unless changed by notice so given: 
  

			
	If to Avidity:	  	 Avidity Biosciences, Inc.
 10975 N. Torrey Pines
Rd.
 Suite 150
 La Jolla, CA 92037

Attn: Chief Business Officer

[* * *]

[* * *]
  

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

Cooley LLP
 3175 Hanover Street

Palo Alto, CA 94304

[* * *]

[* * *]

[* * *]

		
	If to Lilly:	  	 Eli Lilly and Company
 Lilly Corporate
Center
 Indianapolis, Indiana 46285
 Attn: Senior Vice
President, Corporate Business Development
 [* * *]

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

 
 Eli Lilly and Company

Lilly Corporate Center
 Indianapolis, IN 46285

Attn: General Counsel

[* * *]

  
 57 

 Avidity shall also provide a copy of any notice (via
e-mail if available) to Lilly’s Alliance Manager. 
 14.5 Severability. If, for any
reason, any part of this Agreement is adjudicated invalid, unenforceable, or illegal by a court of competent jurisdiction, such adjudication shall not, to the extent feasible, affect or impair, in whole or in part, the validity, enforceability, or
legality of any remaining portions of this Agreement. All remaining portions will remain in full force and effect. 
 14.6 Non-Use of Names. Avidity shall not use the name, trademark, logo, or physical likeness of Lilly or its respective officers, directors or employees, or any adaptation of any of them, in any advertising,
promotional or sales literature, without Lilly’s prior written consent. Avidity shall require its Affiliates to comply with the foregoing. Lilly shall not use the name, trademark, logo, or physical likeness of Avidity or its officers, directors
or employees, or any adaptation of any of them, in any advertising, promotional or sales literature, without Avidity’s prior written consent. Lilly shall require its Affiliates and Sublicensees to comply with the foregoing. 

14.7 Assignment. Neither Party may assign or transfer this Agreement or any rights or obligations hereunder without the prior written
consent of the other, except that a Party may make such an assignment or transfer without the other Party’s consent to: (a) its Affiliate, provided that such Party shall remain primarily liable for any acts or omissions of such Affiliate;
or (b) to an Acquirer in connection with a Change of Control, subject to Section 14.8. Any permitted assignee shall, in writing to the non-assigning Party, expressly assume performance of such
assigning Party’s rights and obligations. Any permitted assignment is binding on the successors of the assigning Party. Any assignment or attempted assignment by either Party in violation of the terms of this Section 14.7 is null, void and
of no legal effect. 
 14.8 Avidity Change of Control. 

14.8.1 Notification of Change of Control. Avidity shall provide Lilly with prompt written notice of any Change of Control of
Avidity, which notice shall describe in reasonable detail the nature of the transaction and the identity of the Acquirer. If not prohibited under Applicable Law or by the terms of any written agreement between Avidity and any Third party, Avidity
shall provide such notice to Lilly prior to execution of any agreement(s) that would result in the Change of Control of Avidity. 

14.8.2 Change of Control with Lilly Competitor. If Avidity undergoes a Change of Control involving a Lilly Competitor, then: 

(a) Lilly may, by written notice delivered to Avidity within [* * *] following the earlier of
first public announcement of such Change of Control or Avidity’s written notice to Lilly (pursuant to Section 14.8.1), elect to retain its rights to Compounds or Products under this Agreement, in which case: (i) the JRC shall be
immediately disbanded, and 

  
 58 

 
all approval rights of the JRC shall become approval rights of the corresponding Party (i.e., mutual agreement by the Parties or final decision making authority by a Party); (ii) Avidity shall
only have the right to receive high level summary reports from Lilly under Section 5.3 without the inclusion of any Lilly Confidential Proprietary Information; (iii) Lilly shall have the option, upon written notice to Avidity, to transfer
all [* * *]; (iv) any expenses [* * *]; and (v) Avidity shall thereafter have no right (A) under Section 8.2.2 to take over and continue the
filing, prosecution, maintenance and defense of a Product-Specific Patent proposed to be abandoned by Lilly, (B) under Section 8.2.2 and Section 8.3.3, to receive information with respect to, be represented by counsel in, object to
the commencement of, share in recoveries from, or otherwise participate in enforcement of Product-Specific Patents by Lilly, (C) under Section 8.5 to consult with respect to Lilly’s decision to seek patent term extensions,
supplemental protection certificates and the like for Product-Specific Patents, or (D) under Section 8.4, to participate and be represented in any claim of infringement that the commercialization of a Product infringes the Patent rights of
a Third Party; and 
 (b) Avidity shall implement and enforce effective walls and screens between personnel working on the business of
Avidity related to the transactions contemplated by this Agreement, on the one hand, and the business of Avidity collaborating with the Lilly Competitor, on the other hand, to ensure that no information directly relating to any Compounds or Products
or the transactions contemplated by this Agreement is accessible by such Lilly Competitor and that the same level of diligence is applied to such activities after the consummation of such Change of Control as compared to prior to the consummation of
such Change of Control. 
 14.8.3 Acquirer with
[* * *]. Following any Change of Control of Avidity to an Acquirer that owns or controls any Patent rights directed to Avidity Proprietary Technology
or inventions, Avidity shall [* * *], provided that such requirement shall not apply (a) to any Antibody-related Patent rights that may be owned or controlled by such Acquirer if such Patent rights
would not otherwise be considered Avidity Patents, or (b) to the extent Lilly is in material breach of this Agreement and has failed to cure such breach in the applicable time period set forth in Section 13.2. 

14.9 Waivers. The failure of a Party to insist upon strict performance of any provision of this Agreement or to exercise any right
arising out of this Agreement shall neither impair that provision or right nor constitute a waiver of that provision or right, in whole or in part, in that instance or in any other instance. Other than any deemed waiver and release under
Section 13.4, any waiver by a Party of a particular provision or right shall be in writing, shall be as to a particular matter and, if applicable, for a particular period of time and shall be signed by such Party. 

  
 59 

 14.10 Force Majeure. Neither Party shall be responsible to the other for any
failure or delay in performing any of its obligations under this Agreement or for other nonperformance hereunder (excluding, in each case, the obligation to make payments when due) if such delay or nonperformance is caused by strike, fire, flood,
earthquake, accident, war, act of terrorism, act of God or of the government of any country or of any local government, or by any other cause unavoidable or beyond the control of any Party hereto. In such event, such affected Party shall use
Commercially Reasonable Efforts to resume performance of its obligations and will keep the other Party informed of actions related thereto. 

14.11 Interpretation. The captions and headings to this Agreement are for convenience only, and are to be of no force or effect in
construing or interpreting any of the provisions of this Agreement. Unless specified to the contrary, references to Articles, Sections, Schedules or Exhibits mean the particular Articles, Sections, Schedules or Exhibits to this Agreement and
references to this Agreement include all Exhibits hereto. In the event of any conflict between the main body of this Agreement and any Exhibit hereto, the main body of this Agreement shall prevail. Unless context otherwise clearly requires, whenever
used in this Agreement: (a) the words “include” or “including” shall be construed as incorporating, also, “but not limited to” or “without limitation”; (b) the word “day” or
“year” means a calendar day or year unless otherwise specified; (c) the word “notice” means notice in writing (whether or not specifically stated) and shall include notices, consents, approvals and other written
communications contemplated under this Agreement; (d) the words “hereof,” “herein,” “hereby” and derivative or similar words refer to this Agreement as a whole and not merely to the particular provision in which
such words appear; (e) the words “shall” and “will” have interchangeable meanings for purposes of this Agreement; (f) provisions that require that a Party, the Parties or a committee hereunder “agree,”
“consent” or “approve” or the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved minutes or otherwise; (g) words of any gender include the
other gender; (h) words using the singular or plural number also include the plural or singular number, respectively; (i) references to any specific law, rule or regulation, or article, section or other division thereof, shall be deemed to
include the then-current amendments thereto or any replacement law, rule or regulation thereof; (j) the phrase “non-refundable” shall not prohibit, limit or restrict either Party’s right to
obtain damages in connection with a breach of this Agreement; and (k) neither Party shall be deemed to be acting on behalf of the other Party. 

14.12 Counterparts; Electronic Signatures. This Agreement may be executed in any number of counterparts, each of which is
deemed an original, but all of which together constitute one instrument. This Agreement may be executed and delivered electronically and upon such delivery such electronic signature will be deemed to have the same effect as if the original signature
had been delivered to the other Party. 
 14.13 Expenses. Each Party shall pay its own costs, charges and expenses incurred in
connection with the negotiation, preparation and execution of this Agreement. 
 14.14 Further Assurances. Lilly and Avidity
hereby covenant and agree without the necessity of any further consideration, to execute, acknowledge and deliver any and all documents and take any action as may be reasonably necessary to carry out the intent and purposes of this Agreement. 

  
 60 

 14.15 No Third Party Beneficiary Rights. This Agreement is not intended to and
shall not be construed to give any Third Party any interest or rights (including any Third Party beneficiary rights) with respect to or in connection with any agreement or provision contained herein or contemplated hereby, except as otherwise
expressly provided for in this Agreement. 
 14.16 Construction. The Parties hereto acknowledge and agree that: (a) each
Party and its counsel reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision; (b) the rule of construction to the effect that any ambiguities are resolved against the drafting Party shall not be
employed in the interpretation of this Agreement; and (c) the terms and provisions of this Agreement shall be construed fairly as to all Parties hereto and not in a favor of or against any Party, regardless of which Party was generally
responsible for the preparation of this Agreement. 
 14.17 Cumulative Remedies. No remedy referred to in this Agreement is
intended to be exclusive unless explicitly stated to be so, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under law. 

14.18 Extension to Affiliates. Except as expressly set forth otherwise in this Agreement, each Party shall have the right to
extend the rights and immunities granted in this Agreement to one or more of its Affiliates. All applicable terms and provisions of this Agreement, except this right to extend, shall apply to any such Affiliate to which this Agreement has been
extended to the same extent as such terms and provisions apply to the Party extending such rights and immunities. For clarity, Lilly extending the rights and immunities granted hereunder shall remain primarily liable for any acts or omissions of its
Affiliates. 
 [signature page follows] 

  
 61 

 IN WITNESS WHEREOF, the
Parties have caused this Agreement to be executed as of the Effective Date by their duly authorized representatives. 
 AVIDITY
BIOSCIENCES, INC. 
 By: /s/ Kent
Hawryluk                                     

Name: Kent Hawryluk 
 Title: Authorized Officer 

ELI LILLY AND COMPANY 

By: /s/ David A.
Ricks                                     

Name: David A. Ricks 
 Title: Chairman and CEO 

[Signature page to Research Collaboration and License Agreement] 

 Exhibit 1.14 

Avidity Patents 

[* * *] 

  
 Exhibit 1.14 - 1

 [* * *] 

  
 Exhibit 1.14 - 2

 [* * *] 

  
 Exhibit 1.14 - 3

 [* * *] 

  
 Exhibit 1.14 - 4

 Exhibit 4.2.1 

Reserved Targets 

[* * *] 

  
 Exhibit 4.2.1 –
1 

 Exhibit 4.3 

Initial Research Plan 

[* * *] 

  
 Exhibit 4.3 - 1

 [* * *] 

  
 Exhibit 4.3 - 2

 [* * *] 

  
 Exhibit 4.3 - 3

 [* * *] 

  
 Exhibit 4.3 - 4

 [* * *] 

  
 Exhibit 4.3 - 5

 [* * *] 

  
 Exhibit 4.3 - 6

 [* * *] 

  
 Exhibit 4.3 - 7

 Exhibit 4.10 

Part A: Eli Lilly and Company Good Research Practices 

[* * *]  

  
 Exhibit 4.10 - 1

 [* * *] 

  
 Exhibit 4.10 - 2

 Exhibit 4.10 

Part B: Eli Lilly and Company Animal Care and Use Requirement for Animal Researchers and Suppliers 

[* * *] 

  
 Exhibit 4.10 - 3

 Exhibit 11.2 

Joint Press Release 
  

					
	

	  		  	

 April XX, 2019 

For Release:        Draft B 

Refer to:        Mark Taylor; mark.taylor@lilly.com; (317) 276-5795
(Lilly Media) 
   Kevin Hern; hern_kevin_r@lilly.com; (317) 277-1838 (Lilly Investors)

   Leslie Ann Kerins; leslie@aviditybio.com; (858) 401-7900 (Avidity) 

  Ian Stone; ian@canalecomm.com; (619) 849-5388 (Avidity Media) 

Lilly and Avidity Biosciences Announce Licensing and Research Collaboration 

 

	 	•	 	 Collaboration will utilize Avidity’s antibody-oligonucleotide conjugate (AOC) technology to pursue
therapeutic targets initially focused on immunology and other indications 

  

	 	•	 	 Avidity to receive an upfront payment of $20 million and an investment of
$15 million 

  

	 	•	 	 Avidity eligible to receive up to approximately $405 million per target in development and
commercialization milestones, plus royalties  

 INDIANAPOLIS, IN, LA JOLLA, CA — Eli Lilly and Company (NYSE: LLY) and Avidity
Biosciences, Inc. today announced a global licensing and research collaboration focused on the discovery, development and commercialization of potential new medicines in immunology and other select indications. 

The companies will utilize Avidity’s proprietary Antibody-Oligonucleotide Conjugate (AOCTM)
technology platform to progress new therapeutic approaches toward clinical development and commercialization. AOCs combine the tissue selectivity of monoclonal antibodies and the precision of oligonucleotide-based therapeutics to overcome barriers
to the delivery of oligonucleotides and target genetic drivers of disease. 

  
 Exhibit 11.2 - 1

 “We are excited to expand our oligonucleotide research and development efforts through this strategic
collaboration with Avidity,” said Andrew C. Adams, Ph.D., chief scientific officer for RNA therapeutics at Lilly. “Their expertise in studying the combination of monoclonal antibodies and oligonucleotide-based therapies represent a
promising avenue of research toward development of the next generation of RNA based medicines” 
 “This collaboration with Lilly provides an
exceptional opportunity to leverage Avidity’s proprietary AOC platform in order to generate new therapeutic targets in disease areas that have been challenging to pursue using oligonucleotide-based approaches,” said Kent Hawryluk,
Avidity’s chief business officer. “Lilly’s extensive research, development, regulatory, and commercial capabilities make them an ideal partner, and we look forward to a long and productive relationship.” 

Under the terms of the agreement, Avidity will receive an upfront payment of $20 million, as well as an investment of $15 million. Avidity is also
eligible to receive up to approximately $405 million per target for development, regulatory and commercialization milestones, as well as tiered royalties ranging from the mid-single to low-double digits on product sales. 
 This transaction is subject to clearance under customary closing conditions. The
transaction will be reflected in Lilly’s reported results and financial guidance according to Generally Accepted Accounting Principles (GAAP). There will be no change to Lilly’s 2019 non-GAAP
earnings per share guidance as a result of this transaction. 
 About Avidity’s AOCTM
Technology Platform 
 Avidity’s Antibody Oligonucleotide Conjugate (AOCTM) technology
utilizes antibodies to target cells and tissues of interest and facilitate the uptake and internalization of oligonucleotide payloads. By combining the cellular and tissue selectivity of antibodies with the selectivity and efficiency of oligo-based
approaches, Avidity has demonstrated modulation of disease-related RNAs in diverse cell types and tissues including muscle, heart, liver, tumors and immune cells. 
  

  
 Exhibit 11.2 - 2

 About Avidity Biosciences, Inc. 

Avidity Biosciences, Inc. is a privately-held biotech company pioneering Antibody Oligonucleotide Conjugates
(AOCTM). AOCs combine the tissue selectivity of monoclonal antibodies and the precision of oligonucleotide-based therapeutics to overcome barriers to the delivery of oligonucleotides and
target genetic drivers of disease. Avidity has raised $30 million in venture financing from a top-tier group of investors, including Takeda Ventures, Alethea Capital, Alexandria Real Estate Equities,
Brace Pharma, EcoR1 Capital, F-Prime Capital, Moore Venture Partners, and Boxer Capital of Tavistock Group. 

About Eli Lilly and Company Lilly is a global healthcare leader that unites caring with discovery to create medicines that make life
better for people around the world. We were founded more than a century ago by a man committed to creating high-quality medicines that meet real needs, and today we remain true to that mission in all our work. Across the globe, Lilly employees work
to discover and bring life-changing medicines to those who need them, improve the understanding and management of disease, and give back to communities through philanthropy and volunteerism. To learn more about Lilly, please visit us at
www.lilly.com and http://newsroom.lilly.com/social-channels. C-LLY 
 Lilly Forward-Looking
Statement This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about the benefits of a collaboration between Lilly and Avidity, and reflects Lilly’s current
beliefs. However, as with any such undertaking, there are substantial risks and uncertainties in the process of drug development and commercialization. Among other things, there can be no guarantee that Lilly will realize the expected benefits of
the collaboration, or that the collaboration will yield commercially successful products. For a further discussion of these and other risks and uncertainties that could cause actual results to differ from Lilly’s expectations, please see
Lilly’s most recent Forms 10-K and 10-Q filed with the U.S. Securities and Exchange Commission. Lilly undertakes no duty to update forward-looking statements. 

#     #     # 

  
 Exhibit 11.2 - 3EX-10.12

 Exhibit 10.12 

LOAN AND SECURITY AGREEMENT 

THIS LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of August 7, 2015 (the “Effective Date”)
by and between SILICON VALLEY BANK, a California corporation (“Bank”), and AVIDITY NANOMEDICINES LLC, a Delaware limited liability company (“Borrower”), provides the terms on which Bank shall lend to Borrower and
Borrower shall repay Bank. The parties agree as follows: 
 1.    ACCOUNTING AND OTHER TERMS  

Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP.
Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13. All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such
terms are defined therein. 
 2.    LOAN AND TERMS OF PAYMENT  

2.1    Promise to Pay. Borrower hereby unconditionally promises to pay Bank the outstanding principal amount
of all Credit Extensions and accrued and unpaid interest thereon as and when due in accordance with this Agreement. 

2.1.1    Growth Capital Advances.  

(a)    Availability. Subject to the terms and conditions of this Agreement, Bank agrees to make advances to Borrower
(each a “Growth Capital Advance” and collectively the “Growth Capital Advances”), from time to time, prior to the Growth Capital Commitment Termination Date in an aggregate amount not to exceed the Growth Capital
Commitment. The Growth Capital Advances shall be available in two (2) tranches. The first tranche of the Growth Capital Advances shall be advanced to Borrower on or about the Effective Date in a single advance in an aggregate amount up to Two
Million Five Hundred Thousand Dollars ($2,500,000) (the “First Tranche Growth Capital Advance”). Provided that Borrower has satisfied the Tranche Two Milestone, the second tranche of the Growth Capital Advances may be advanced in a
single advance in an aggregate amount up to Two Million Five Hundred Thousand Dollars ($2,500,000) at any time commencing on September 30, 2015 through the Growth Capital Commitment Termination Date (the “Second Tranche Growth Capital
Advance”). After repayment, no Growth Capital Advance may be re-borrowed. 

(b)    Repayment. 

(i)    Interest-Only Payments. Borrower shall make monthly payments of interest-only on each Growth Capital
Advance commencing on the first (1st) calendar day of the first (1st) month following the month in which the Funding Date for such Growth Capital Advance occurs and continuing thereafter during the Interest-Only Period on the first (1st) calendar
day of each successive month. 

 (ii)    Principal and Interest Payments. Commencing on the first
(1st) calendar day of the first (1st) month following the Interest-Only Period for each Growth Capital Advance (the “Conversion Date”) and continuing on the first (1st) day of each month thereafter, Borrower shall make thirty-six (36) consecutive monthly payments of (A) principal which would fully amortize the outstanding Growth Capital Advance as of the Conversion Date over the Repayment Period, plus (B) accrued
interest. All unpaid principal and accrued and unpaid interest on each Growth Capital Advance is due and payable in full on the Growth Capital Maturity Date. 

(c)    Prepayment. 

(i)    Permitted Prepayment. At Borrower’s option, Borrower shall have the option to prepay all or any part
of the Growth Capital Advances advanced by Bank under this Agreement, provided Borrower (A) provides written notice to Bank of its election to exercise to prepay the Growth Capital Advances at least five (5) days prior to such prepayment,
and (B) pays, on the date of the prepayment (i) all applicable accrued and unpaid interest with respect to each prepaid Growth Capital Advance through the date the prepayment is made; plus (ii) all unpaid principal with respect to
such prepaid Growth Capital Advance; plus (iii) the applicable portion of the Final Payment; plus (iv) all other sums, if any, that shall have become due and payable hereunder with respect to this Agreement. Any partial prepayments, other
than the final prepayment, shall each be in an amount of not less than One Hundred Thousand Dollars ($100,000). 

(ii)    Mandatory Prepayment Upon an Acceleration.    If the Growth Capital Advances are
accelerated by Bank following the occurrence and continuance of an Event of Default or otherwise, Borrower shall immediately pay to Bank an amount equal to the sum of: (i) all accrued and unpaid interest with respect to each Growth Capital
Advance through the date the prepayment is made; plus (ii) all unpaid principal with respect to each Growth Capital Advance; plus (iii) the Final Payment; plus (iv) all other sums, if any, that shall have become due and payable as of
the date of repayment, including interest at the Default Rate with respect to any past due amounts. 
 2.2    Payment
of Interest on the Credit Extensions. 
 (a)    Interest Rate. Subject to Section 2.2(b), the principal amount
outstanding under the Growth Capital Advances shall accrue interest at a fixed per annum rate equal to the Basic Rate on the Funding Date, which interest shall be payable monthly in accordance with Section 2.2(d) below. 

(b)    Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations
shall bear interest at a rate per annum which is five percent (5.00%) above the rate that is otherwise applicable thereto (the “Default Rate”). Fees and expenses which are required to be paid by Borrower pursuant to the Loan
Documents (including, without limitation, Bank Expenses) but are not paid when due shall bear interest until paid at a rate equal to the highest rate applicable to the Obligations. Payment or acceptance of the increased interest rate provided in
this Section 2.2(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank. 

  
 2 

 (c)    Reserved. 

(d)    Payment; Interest Computation. Interest is payable monthly on the first (1st) calendar day of each month and
shall be computed on the basis of a three hundred sixty (360) day year for the actual number of days elapsed. In computing interest, (i) all payments received after 12:00 p.m. Pacific time on any day shall be deemed received at the opening
of business on the next Business Day, and (ii) the date of the making of any Credit Extension shall be included and the date of payment shall be excluded; provided, however, that if any Credit Extension is repaid on the same day on which it is
made, such day shall be included in computing interest on such Credit Extension. 
 2.3    Fees. Borrower shall
pay to Bank:  
 (a)    Final Payment. A Final Payment due on the earlier of (i) the Growth Capital
Maturity Date, (ii) the final payment date of each Growth Capital Advance, or (iii) at the time of a prepayment when due pursuant to the terms of Section 2.1.1(c); 

(b)    Good Faith Deposit. Borrower has paid to Bank a deposit of Ten Thousand Dollars ($10,000) (the “Good
Faith Deposit”) to initiate Bank’s due diligence review process. Any portion of the Good Faith Deposit not utilized to pay Bank Expenses will be returned to Borrower; 

(c)    Bank Expenses. All Bank Expenses (including reasonable attorneys’ fees and expenses for documentation
and negotiation of this Agreement) incurred through and after the Effective Date, when due (or, if no stated due date, upon demand by Bank); and 

(d)    Fees Fully Earned. Unless otherwise provided in this Agreement or in a separate writing by Bank, Borrower
shall not be entitled to any credit, rebate, or repayment of any fees earned by Bank pursuant to this Agreement notwithstanding any termination of this Agreement or the suspension or termination of Bank’s obligation to make loans and advances
hereunder. Bank may deduct amounts owing by Borrower under the clauses of this Section 2.3 pursuant to the terms of Section 2.4(c). Bank shall provide Borrower written notice of deductions made from the Designated Deposit Account pursuant to the
terms of the clauses of this Section 2.3. 
 2.4    Payments; Application of Payments; Debit of Accounts. 

 (a)    All payments to be made by Borrower under any Loan Document shall be made in immediately available funds in
Dollars, without setoff or counterclaim, before 12:00 p.m. Pacific time on the date when due. Payments of principal and/or interest received after 12:00 p.m. Pacific time are considered received at the opening of business on the next Business Day.
When a payment is due on a day that is not a Business Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable, shall continue to accrue until paid. 

(b)    Bank has the exclusive right to determine the order and manner in which all payments with respect to the
Obligations may be applied. Borrower shall have no right to specify the order or the accounts to which Bank shall allocate or apply any payments required to be made by Borrower to Bank or otherwise received by Bank under this Agreement when any such
allocation or application is not specified elsewhere in this Agreement. 

  
 3 

 (c)    Bank may debit any of Borrower’s deposit accounts, including
the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes Bank when due. These debits shall not constitute a set-off. 

2.5    Withholding. Payments received by Bank from Borrower under this Agreement will be made free and clear
of and without deduction for any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any Governmental Authority (including any interest, additions to tax or penalties
applicable thereto). Specifically, however, if at any time any Governmental Authority, applicable law, regulation or international agreement requires Borrower to make any withholding or deduction from any such payment or other sum payable hereunder
to Bank, Borrower hereby covenants and agrees that the amount due from Borrower with respect to such payment or other sum payable hereunder will be increased to the extent necessary to ensure that, after the making of such required withholding or
deduction, Bank receives a net sum equal to the sum which it would have received had no withholding or deduction been required, and Borrower shall pay the full amount withheld or deducted to the relevant Governmental Authority. Borrower will, upon
request, furnish Bank with proof reasonably satisfactory to Bank indicating that Borrower has made such withholding payment; provided, however, that Borrower need not make any withholding payment if the amount or validity of such withholding payment
is contested in good faith by appropriate and timely proceedings and as to which payment in full is bonded or reserved against by Borrower. The agreements and obligations of Borrower contained in this Section 2.5 shall survive the termination of
this Agreement. 
 3.    CONDITIONS OF LOANS  

3.1    Conditions Precedent to Initial Credit Extension. Bank’s obligation to make the initial Credit
Extension is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without
limitation: 
 (a)    duly executed original signatures to the Loan Documents; 

(b)    duly executed original signatures to the Warrant; 

(c)    duly executed original signatures to the Control Agreement; 

(d)    the Operating Documents and long-form good standing certificate of Borrower certified by the Secretary of State (or
equivalent agency) of Borrower’s jurisdiction of organization or formation, as of a date no earlier than thirty (30) days prior to the Effective Date; 

(e)    duly executed original signatures to the completed Borrowing Resolutions for Borrower; 

(f)    certified copies, dated as of a recent date, of financing statement searches, as Bank may request, accompanied by
written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released;

  
 4 

 (g)    the Perfection Certificate of Borrower, together with the duly
executed original signature thereto; 
 (h)    a copy of Borrower’s Registration Rights Agreement, Investors’
Rights Agreement, and any amendments thereto; 
 (i)    evidence satisfactory to Bank that the insurance policies and
endorsements required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing lender loss payable and/or additional insured clauses or endorsements in favor of Bank; and 

(j)    payment of the fees and Bank Expenses then due as specified in Section 2.4 hereof. 

3.2    Conditions Precedent to all Credit Extensions. Bank’s obligations to make each Credit Extension,
including the initial Credit Extension, is subject to the following conditions precedent: 
 (a)    timely receipt of an
executed Payment/Advance Form; 
 (b)    the representations and warranties in this Agreement shall be true, accurate,
and complete in all material respects on the date of the Payment/Advance Form and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such
date, and no Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in this Agreement
remain true, accurate, and complete in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof;
and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; and 

(c)    Bank determines to its sole, but reasonable satisfaction that there has not been a Material Adverse Change. 

3.3    Covenant to Deliver. Borrower agrees to deliver to Bank each item required to be delivered to Bank
under this Agreement as a condition precedent to any Credit Extension. Borrower expressly agrees that a Credit Extension made prior to the receipt by Bank of any such item shall not constitute a waiver by Bank of Borrower’s obligation to
deliver such item, and the making of any Credit Extension in the absence of a required item shall be in Bank’s sole discretion. 

  
 5 

 3.4    Procedures for Borrowing. Subject to the prior
satisfaction of all other applicable conditions to the making of a Growth Capital Advance set forth in this Agreement, to obtain a Growth Capital Advance, Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail,
facsimile, or telephone by 12:00 p.m. Pacific time on the Funding Date of a Growth Capital Advance. Together with any such electronic or facsimile notification, Borrower shall deliver to Bank by electronic mail or facsimile a completed
Payment/Advance Form executed by a Responsible Officer or his or her designee. Bank may rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Bank shall credit Growth Capital Advances to the
Designated Deposit Account. Bank may make Growth Capital Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Growth Capital Advances are necessary to meet Obligations
which have become due. 
 4.    CREATION OF SECURITY INTEREST.  

4.1    Grant of Security Interest. Borrower hereby grants Bank, to secure the payment and performance in full
of all of the Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. 

Borrower acknowledges that it previously has entered, and/or may in the future enter, into Bank Services Agreements with Bank. Regardless of
the terms of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to have all such Obligations secured by the first
priority perfected security interest in the Collateral granted herein (subject only to Permitted Liens that are permitted pursuant to the terms of this Agreement to have superior priority to Bank’s Lien in this Agreement). 

If this Agreement is terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity
obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations (other than inchoate indemnity obligations) and at such time as Bank’s obligation to make Credit Extensions has terminated, Bank shall, at the sole cost
and expense of Borrower, release its Liens in the Collateral and all rights therein shall revert to Borrower. In the event (x) all Obligations (other than inchoate indemnity obligations), except for Bank Services, are satisfied in full, and
(y) this Agreement is terminated, Bank shall terminate the security interest granted herein upon Borrower providing cash collateral acceptable to Bank in its good faith business judgment for Bank Services, if any. In the event such Bank
Services consist of outstanding Letters of Credit, Borrower shall provide to Bank cash collateral in an amount equal to (x) if such Letters of Credit are denominated in Dollars, then at least one hundred five percent (105%); and (y) if
such Letters of Credit are denominated in a Foreign Currency, then at least one hundred ten percent (110%), of the Dollar Equivalent of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in
connection therewith (as estimated by Bank in its business judgment), to secure all of the Obligations relating to such Letters of Credit. 

  
 6 

 4.2    Priority of Security Interest. Borrower represents,
warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that are permitted pursuant to the
terms of this Agreement to have superior priority to Bank’s Lien under this Agreement). If Borrower shall acquire a commercial tort claim, Borrower shall promptly notify Bank in a writing signed by Borrower of the general details thereof and
grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Bank. 

4.3    Authorization to File Financing Statements. Borrower hereby authorizes Bank to file financing
statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, except dispositions permitted herein, by either
Borrower or any other Person, shall be deemed to violate the rights of Bank under the Code. 

5.    REPRESENTATIONS AND WARRANTIES  

Borrower represents and warrants as follows: 

5.1    Due Organization, Authorization; Power and Authority. Borrower is duly existing and in good standing
as a Registered Organization in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any other jurisdiction in which the conduct of its business or its ownership of property requires that it be
qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. In connection with this Agreement, Borrower has delivered to Bank a completed certificate signed by Borrower,
entitled “Perfection Certificate”. Borrower represents and warrants to Bank that (a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an
organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower
has none; (d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one, its chief executive office as well as Borrower’s mailing address (if different than its chief executive office); (e)
Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information
set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete (it being understood and agreed that Borrower may from time to time update certain information in the Perfection Certificate after
the Effective Date to the extent permitted by one or more specific provisions in this Agreement and provided that the Perfection Certificate shall be deemed to be updated to reflect the information provided in any notice delivered by Borrower to
Bank pursuant to Section 7.2 of this Agreement). 
 The execution, delivery and performance by Borrower of the Loan Documents to which it is
a party have been duly authorized, and do not (i) conflict with any of Borrower’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law, (iii) contravene,
conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or assets may be bound or affected,
(iv) require any action by, filing, registration, or qualification with, or Governmental Approval 

  
 7 

 
from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect) or (v) conflict with, contravene, constitute a default
or breach under, or result in or permit the termination or acceleration of, any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which it is a party or by which it is bound in which the default could
reasonably be expected to have a material adverse effect on Borrower’s business. 
 5.2    Collateral.
Borrower has good title to, rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no Collateral Accounts at
or with any bank or financial institution other than Bank or Bank’s Affiliates except for the Collateral Accounts described in the Perfection Certificate (as the same may be updated from time to time) delivered to Bank in connection herewith
and which Borrower has taken such actions as are necessary to give Bank a perfected security interest therein, pursuant to the terms of Section 6.6(b). The Accounts are bona fide, existing obligations of the Account Debtors. 

The Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection
Certificate. None of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to Section 7.2. All Inventory is in all material respects of good and marketable
quality, free from material defects. 
 Borrower is the sole owner of the Intellectual Property which it owns or purports to own except for (a) non-exclusive licenses granted to its customers in the ordinary course of business and licenses that could not result in a legal transfer of title of the licensed property but that may be exclusive in
respects other than territory and that may be exclusive as to territory only as to discrete geographical areas outside of the United States, (b) over-the-counter
software that is commercially available to the public, and (c) material Intellectual Property licensed to Borrower and noted on the Perfection Certificate (as the same may be updated from time to time pursuant to Section 6.8(b)). Each Patent
which it owns or purports to own and which is material to Borrower’s business is valid and enforceable, and no part of the Intellectual Property which Borrower owns or purports to own and which is material to Borrower’s business has been
judged invalid or unenforceable, in whole or in part. To the best of Borrower’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights of any third party except to the extent such claim would not
reasonably be expected to have a material adverse effect on Borrower’s business. Except as noted on the Perfection Certificate (as the same may be updated from time to time pursuant to Section 6.8(b)), Borrower is not a party to, nor is it
bound by, any Restricted License. 
 5.3    Reserved.  

5.4    Litigation. There are no actions or proceedings pending or, to the knowledge of any
Responsible Officer, threatened in writing by or against Borrower or any of its Subsidiaries involving more than, individually or in the aggregate, Two Hundred Fifty Thousand Dollars ($250,000). 

  
 8 

 5.5    Financial Statements; Financial Condition. All
consolidated financial statements for Borrower and any of its Subsidiaries delivered to Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations as of
the dates and for the periods presented. There has not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Bank. 

5.6    Solvency. The fair salable value of Borrower’s consolidated assets (including goodwill
minus disposition costs) exceeds the fair value of Borrower’s liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they
mature. 
 5.7    Regulatory Compliance. Borrower is not an “investment company” or a
company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and
U of the Federal Reserve Board of Governors). Borrower (a) has complied in all material respects with all Requirements of Law, and (b) has not violated any Requirements of Law the violation of which could reasonably be expected to have a
material adverse effect on its business. None of Borrower’s or any of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing,
producing, storing, treating, or transporting any hazardous substance other than legally. Borrower and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices
to, all Government Authorities that are necessary to continue their respective businesses as currently conducted except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. 

5.8    Subsidiaries; Investments. Borrower does not own any stock, partnership, or other ownership
interest or other equity securities except for Permitted Investments. 
 5.9    Tax Returns and Payments;
Pension Contributions. Borrower has timely filed all required tax returns and reports or extensions therefor, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by
Borrower except (a) to the extent such taxes are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as such reserve or other appropriate provision, if any, as shall be required in
conformity with GAAP shall have been made therefor, or (b) if such taxes, assessments, deposits and contributions do not, individually or in the aggregate, exceed Fifty Thousand Dollars ($50,000). 

To the extent Borrower defers payment of any contested taxes, Borrower shall (i) notify Bank in writing of the commencement of, and any
material development in, the proceedings, and (ii) post bonds or take any other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a
“Permitted Lien.” Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower. Borrower has paid all amounts necessary to
fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not 

  
 9 

 
withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be
expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

5.10    Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions solely as working
capital, and to fund its general business requirements and not for personal, family, household or agricultural purposes. 

5.11    Full Disclosure. No written representation, warranty or other statement of Borrower in any
certificate or written statement given to Bank, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Bank, contains any untrue statement of a
material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based
upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 

5.12    Definition of “Knowledge.” For purposes of the Loan Documents, whenever a
representation or warranty is made to Borrower’s knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge, after reasonable
investigation, of any Responsible Officer. 
 6.    AFFIRMATIVE COVENANTS  

Borrower shall do all of the following: 

6.1    Government Compliance.  

(a)    Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of
formation and maintain qualification in each other jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower’s business or operations. Borrower shall comply, and have each
Subsidiary comply, in all material respects, with all laws, ordinances and regulations to which it is subject. 

(b)    Obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the
Loan Documents to which it is a party and the grant of a security interest to Bank in all of the Collateral. Borrower shall promptly provide copies of any such obtained Governmental Approvals to Bank. 

6.2    Financial Statements, Reports, Certificates. Provide Bank with the following:  

(a)    Monthly Financial Statements. As soon as available, but no later than thirty (30) days after the last
day of each month, a company prepared consolidating (if applicable) and consolidated balance sheet and income statement (including a statement of cash flows, if prepared by Borrower in the ordinary course of business) covering Borrower’s
consolidated and Borrower’s and each of its Subsidiary’s operations for such month certified by a Responsible Officer and in a form reasonably acceptable to Bank (the “Monthly Financial Statements”); 

  
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 (b)    Monthly Compliance Certificate. Within thirty
(30) days after the last day of each month and together with the Monthly Financial Statements, a duly completed Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such month, Borrower was in full compliance
with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants set forth in this Agreement, if any, and such other information as Bank may reasonably request; 

(c)    Annual Operating Budget and Financial Projections. As soon as available, within thirty (30) days after
the last day of Borrower’s fiscal year, but in no event later than seven (7) days after approval by Borrower’s Board of Managers, and as more frequently updated, (i) annual operating budgets (including income statements, balance
sheets and cash flow statements, by month) for the upcoming fiscal year of Borrower, and (ii) annual financial projections for the following fiscal year (on a quarterly basis) as approved by Borrower’s Board of Managers, together with any
related business forecasts used in the preparation of such annual financial projections; 
 (d)    Annual Audited
Financial Statements. As soon as available, but no later than one hundred (180) days after the last day of Borrower’s fiscal year, audited consolidated financial statements of Borrower prepared in accordance with GAAP, consistently
applied, together with an unqualified opinion on such financial statements from an independent certified public accounting firm reasonably acceptable to Bank; 

(e)    Other Statements. Within five (5) days of delivery, copies of all statements, reports and notices made
available to Borrower’s security holders or to any holders of Subordinated Debt; 
 (f)    SEC Filings. In
the event that Borrower becomes subject to the reporting requirements under the Exchange Act within five (5) days of filing, copies of all periodic and other reports, proxy statements and other materials filed by Borrower with the SEC, any
Governmental Authority succeeding to any or all of the functions of the SEC or with any national securities exchange, or distributed to its shareholders, as the case may be. Documents required to be delivered pursuant to the terms hereof (to the
extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which Borrower posts such documents, or provides a link
thereto, on Borrower’s website on the Internet at Borrower’s website address; provided, however, Borrower shall promptly notify Bank in writing (which may be by electronic mail) of the posting of any such documents; 

(g)    Legal Action Notice. A prompt report of any legal actions pending or threatened in writing against Borrower
or any of its Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, Two Hundred Fifty Thousand Dollars ($250,000) or more; and 

  
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 (h)    Other Financial Information. Other financial information
reasonably requested by Bank. 
 6.3    Inventory; Returns. Keep all Inventory in good and marketable
condition, free from material defects. Returns and allowances between Borrower and its Account Debtors shall follow Borrower’s customary practices as they exist at the Effective Date. Borrower must promptly notify Bank of all returns,
recoveries, disputes and claims that involve more than Fifty Thousand Dollars ($50,000). 
 6.4    Taxes;
Pensions. Timely file, and require each of its Subsidiaries to timely file, all required tax returns and reports or extensions thereof and timely pay, and require each of its Subsidiaries to timely pay, all foreign, federal, state and
local taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.9 hereof, and shall deliver to Bank, on demand, appropriate
certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms. 

6.5    Insurance.  

(a)    Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s
industry and location and as Bank may reasonably request. Insurance policies shall be in a form, with financially sound and reputable insurance companies that are not Affiliates of Borrower, and in amounts that are satisfactory to Bank. All property
policies shall have a lender’s loss payable endorsement showing Bank as the sole lender loss payee. All liability policies shall show, or have endorsements showing, Bank as an additional insured. Bank shall be named as lender loss payee and/or
additional insured with respect to any such insurance providing coverage in respect of any Collateral. 
 (b)    Ensure
that proceeds payable under any property policy are, at Bank’s option, payable to Bank on account of the Obligations. Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and is continuing, Borrower shall have the
option of applying the proceeds of any casualty policy up to Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate for all losses under all casualty policies in any one year, toward the replacement or repair of destroyed or damaged
property; provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Bank has been granted a first priority security
interest, and (b) after the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Bank, be payable to Bank on account of the Obligations. 

(c)    At Bank’s request, Borrower shall deliver certified copies of insurance policies and evidence of all premium
payments. Each provider of any such insurance required under this Section 6.5 shall agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to Bank, that it will give Bank thirty (30) days (ten
(10) days for non-payment of premium) prior written notice before any such policy or policies shall be materially altered or canceled. If Borrower fails to obtain insurance as required under this

  
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Section 6.5 or to pay any amount or furnish any required proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this
Section 6.5, and take any action under the policies Bank deems prudent. 
 6.6    Operating Accounts. 

 (a)    Maintain its primary and its Subsidiaries’ primary operating and other deposit accounts and securities
accounts with Bank and Bank’s Affiliates. 
 (b)    Provide Bank five (5) days prior written notice before
establishing any Collateral Account at or with any bank or financial institution other than Bank or Bank’s Affiliates. For each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial
institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral
Account in accordance with the terms hereunder which Control Agreement may not be terminated without the prior written consent of Bank. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll
taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Bank by Borrower as such. 

6.7    Reserved.  

6.8    Protection of Intellectual Property Rights.  

(a)    (i) Protect, defend and maintain the validity and enforceability of its Intellectual Property material to the
business; (ii) promptly advise Bank in writing of material infringements or any other event that could reasonably be expected to materially and adversely affect the value of its Intellectual Property material to the business; and (iii) not
allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without the Bank’s written consent which shall not be unreasonably withheld. 

(b)    Provide written notice to Bank within ten (10) days of entering or becoming bound by any Restricted License
(other than over-the-counter software that is commercially available to the public). Borrower shall take such commercially reasonable steps as Bank reasonably requests
to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any Restricted License to be deemed “Collateral” and for Bank to have a security interest in it that might otherwise be restricted or
prohibited by law or by the terms of any such Restricted License, whether now existing or entered into in the future, and (ii) Bank to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance
with Bank’s rights and remedies under this Agreement and the other Loan Documents. 
 6.9    Litigation
Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank, without expense to Bank, Borrower and its officers, employees and agents and Borrower’s books and records, to the
extent that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower. 

  
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 6.10    Access to Collateral; Books and Records. Allow
Bank, or its agents, at reasonable times, on one (1) Business Day’s notice (provided no notice is required if an Event of Default has occurred and is continuing), to inspect the Collateral and audit and copy Borrower’s
Books. Such inspections or audits shall be conducted no more often than once every twelve (12) months unless an Event of Default has occurred and is continuing in which case such inspections and audits shall occur as often as Bank shall
determine is necessary. The foregoing inspections and audits shall be at Borrower’s expense, and the charge therefor shall be Eight Hundred Fifty Dollars ($850) per person per day (or such higher amount as shall represent Bank’s
then-current standard charge for the same), plus reasonable out-of-pocket expenses. In the event Borrower and Bank schedule an audit more than ten (10) days in
advance, and Borrower cancels or seeks to reschedule the audit with less than ten (10) days written notice to Bank, then (without limiting any of Bank’s rights or remedies), Borrower shall pay Bank a fee of One Thousand Dollars
($1,000) plus any out-of-pocket expenses incurred by Bank to compensate Bank for the anticipated costs and expenses of the cancellation or rescheduling. 

6.11    Formation or Acquisition of Subsidiaries. Notwithstanding and without limiting the negative
covenants contained in Sections 7.3 and 7.7 hereof, at the time that Borrower forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Effective Date, Borrower shall, if requested by Bank in its sole discretion
(a) cause such new Subsidiary to provide to Bank a joinder to this Agreement to cause such Subsidiary to become a co-borrower hereunder or Guarantor, together with such appropriate financing statements
and/or Control Agreements, all in form and substance reasonably satisfactory to Bank (including being sufficient to grant Bank a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary), (b)
provide to Bank appropriate certificates and powers and financing statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary (or if such new Subsidiary is a Foreign Subsidiary, not more than sixty-five percent
(65%) of the presently existing and hereafter arising issued and outstanding shares of equity interests owned by Borrower of any such Foreign Subsidiary which shares entitle the holder thereof to vote for managers or any other matter), in form and
substance satisfactory to Bank, and (c) provide to Bank all other documentation in form and substance satisfactory to Bank, including one or more opinions of counsel, for a Foreign Subsidiary, satisfactory to Bank, if requested by Bank in its
sole discretion, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above. Any document, agreement, or instrument executed or issued pursuant to this Section 6.11 shall be a
Loan Document. 
 6.12    Further Assurances. Execute any further instruments and take further action as
Bank reasonably requests to perfect or continue Bank’s Lien in the Collateral or to effect the purposes of this Agreement. Deliver to Bank, within five (5) days after the same are sent or received, copies of all correspondence,
reports, documents and other filings with any Governmental Authority regarding compliance with or maintenance of Governmental Approvals or Requirements of Law or that could reasonably be expected to have a material effect on any of the Governmental
Approvals or otherwise on the operations of Borrower or any of its Subsidiaries. 

  
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 7.    NEGATIVE COVENANTS  

Borrower shall not do any of the following without Bank’s prior written consent: 

7.1    Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively,
“Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of
worn-out, surplus or obsolete Equipment that is, in the reasonable judgment of Borrower, no longer economically practicable to maintain or useful in the ordinary course of business of Borrower;
(c) consisting of Permitted Liens and Permitted Investments; (d) consisting of the sale or issuance of any limited liability company interests of Borrower permitted under Section 7.2 of this Agreement; (e) consisting of
Borrower’s use or transfer of money or Cash Equivalents in a manner that is not prohibited by the terms of this Agreement or the other Loan Documents; (f) of non-exclusive licenses for the use of the
property of Borrower or its Subsidiaries in the ordinary course of business and licenses that could not result in a legal transfer of title of the licensed property but that may be exclusive in respects other than territory and that may be exclusive
as to territory only as to discrete geographical areas outside of the United States; (g) sales or discounting of delinquent accounts in the ordinary course of business; and (h) not otherwise permitted by this Section 7.1 in an amount not
to exceed Fifty Thousand Dollars ($50,000) in the aggregate in any fiscal year. 
 7.2    Changes in Business,
Management, Ownership, or Business Locations. (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably
related thereto; (b) liquidate or dissolve; or (c) (i) fail to provide notice to Bank of any Key Person(s) departing from or ceasing to be employed by Borrower within five (5) Business Days after his/her/their departure from Borrower;
or (ii) enter into any transaction or series of related transactions in which the equity holders of Borrower who were not equity holders immediately prior to the first such transaction own more than forty-nine percent (49%) of the voting equity
of Borrower immediately after giving effect to such transaction or related series of such transactions (other than by the sale of Borrower’s equity securities in a public offering or to venture capital or private equity investors so long as
Borrower identifies to Bank the venture capital or private equity investors at least seven (7) Business Days prior to the closing of the transaction and provides to Bank a description of the material terms of the transaction). 

Borrower shall not, without at least thirty (30) days prior written notice to Bank: (1) add any new offices or business locations,
including warehouses (unless such new offices or business locations contain less than One Hundred Thousand Dollars ($100,000) in Borrower’s assets or property) or deliver any portion of the Collateral valued, individually or in the aggregate,
in excess of One Hundred Thousand Dollars ($100,000) to a bailee at a location other than to a bailee and at a location already disclosed in the Perfection Certificate, (2) change its jurisdiction of organization, (3) change its
organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization. If Borrower intends to deliver any portion of the Collateral valued, individually
or in the aggregate, in excess of One Hundred Thousand Dollars ($100,000) to a bailee, and Bank and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the
Collateral, then Borrower will first receive the written consent of Bank, and such bailee shall execute and deliver a bailee agreement in form and substance satisfactory to Bank. 

  
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 7.3    Mergers or Acquisitions. Merge or consolidate, or
permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the equity interests or property of another Person (the
“Target”) (including, without limitation, by the formation of any Subsidiary) (an “Acquisition”) other than in connection with a Permitted Acquisition. A Subsidiary may merge or consolidate into another
Subsidiary or into Borrower. 
 7.4    Indebtedness. Create, incur, assume, or be liable for any
Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 

7.5    Encumbrance. Create, incur, allow, or suffer any Lien on any of its property, or assign or
convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any Collateral not to be subject to the first priority security interest granted herein (subject
only to purchase money Liens permitted under clause (c) of the definition of Permitted Liens that are permitted pursuant to the terms of this Agreement to have superior priority to Bank’s Lien under this Agreement), or enter into any
agreement, document, instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging, pledging, granting
a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Liens” herein. 

7.6    Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to the
terms of Section 6.6(b) hereof. 
 7.7    Distributions; Investments. (a) Pay any dividends or make
any distribution or payment or redeem, retire or purchase any equity interests; provided that (i) Borrower may convert any of its convertible securities into other securities pursuant to the terms of such convertible securities or
otherwise in exchange thereof, (ii) Borrower may pay dividends solely in equity interests, (iii) Borrower may repurchase the equity interests of former employees or consultants pursuant to equity repurchase agreements so long as an Event
of Default does not exist at the time of such repurchase and would not exist after giving effect to such repurchase provided that the aggregate amount of all such repurchases does not exceed Two Hundred Fifty Thousand Dollars ($250,000) per fiscal
year (or in any amount where the consideration for such repurchase is the cancellation of Indebtedness under non-cash loans to current or former employees, officers, managers, or consultants relating to the
purchase of equity securities of Borrower pursuant to equity purchase plans or equity compensation arrangements approved by Borrower’s board of managers), and (iv) Borrower may distribute equity securities to former or current employees,
officers, consultants or managers on the exercise of employee equity options approved by Borrower’s board of managers (collectively, “Permitted Distributions”); or (b) directly or indirectly make any Investment (including,
without limitation, by the formation of any Subsidiary) other than Permitted Investments, or permit any of its Subsidiaries to do so. Notwithstanding the foregoing, Subsidiaries of Borrower shall be permitted to pay dividends or make distributions
to Borrower. 

  
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 7.8    Transactions with Affiliates. Directly or
indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for (a) transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less
favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person, (b) equity investments in Borrower, (c) unsecured debt financings from Borrower’s
investors so long as all such Indebtedness shall constitute unsecured Subordinated Debt, (d) compensation arrangements and benefit plans for officers and other employees of Borrower and its Subsidiaries entered into or maintained in the
ordinary course of business, (e) reasonable and customary fees paid to members of Borrower’s Board of Managers and its Subsidiaries in the ordinary course of business, (f) transactions between or among Borrower and any of its
Subsidiaries that are not otherwise prohibited hereunder, and (g) transactions permitted pursuant to Section 7.2 and 7.7 hereof. 

7.9    Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under
the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof, provide
for earlier or greater principal, interest, or other payments thereon, or adversely affect the subordination thereof to Obligations owed to Bank. 

7.10    Compliance. Become an “investment company” or a company controlled by an
“investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the
Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with
the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any of its Subsidiaries to do so; withdraw or permit
any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be
expected to result in any material liability of Borrower, including any material liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

8.    EVENTS OF DEFAULT  

Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement: 

8.1    Payment Default. Borrower fails to (a) make any payment of principal or interest on any Credit
Extension when due, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day cure period shall not apply to payments due on the Growth Capital Maturity
Date). During the cure period, the failure to make or pay any payment specified under clause (b) hereunder is not an Event of Default (but no Credit Extension will be made during the cure period); 

  
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 8.2    Covenant Default.  

(a)    Borrower fails or neglects to perform any obligation in Sections 6.2, 6.4, 6.5, 6.6, 6.8(b), 6.10 or violates any
covenant in Section 7; or 
 (b)    Borrower fails or neglects to perform, keep, or observe any other term, provision,
condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has
failed to cure the default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within
such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such
reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period). Cure periods provided under this section shall not apply, among other things, to
financial covenants or any other covenants set forth in clause (a) above; 
 8.3    Material Adverse Change.
A Material Adverse Change occurs;  
 8.4    Attachment; Levy; Restraint on Business.  

(a)    (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity
under the control of Borrower (including a Subsidiary), or (ii) a notice of lien or levy is filed against any of Borrower’s assets by any Governmental Authority, and the same under subclauses (i) and (ii) hereof are not, within ten
(10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure period; or 

(b)    (i) any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a
trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting all or any material part of its business; 

8.5    Insolvency. (a) Borrower or any of its Subsidiaries is unable to pay its debts (including
trade debts) as they become due or otherwise becomes insolvent; (b) Borrower or any of its Subsidiaries begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower or any of its Subsidiaries and is not
dismissed or stayed within thirty (30) days (but no Credit Extensions shall be made while any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 

8.6    Other Agreements. There is, under any agreement to which Borrower is a party with a third
party or parties, (a) any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount individually or in the aggregate in excess of Two Hundred Fifty
Thousand Dollars ($250,000); or (b) any breach or default by Borrower, the result of which could reasonably be expected to have a material adverse effect on Borrower’s business, provided, however, that the Event of Default under this
Section 8.6 caused by the occurrence of a breach or default under such other agreement shall be cured or waived for purposes of this Agreement upon Bank receiving written 

  
 18 

 notice from the party asserting such breach or default of such cure or waiver of the breach or default under
such other agreement, if at the time of such cure or waiver under such other agreement (x) Bank has not declared an Event of Default under this Agreement and/or exercised any rights with respect thereto; (y) any such cure or waiver does
not result in an Event of Default under any other provision of this Agreement or any Loan Document; and (z) in connection with any such cure or waiver under such other agreement, the terms of any agreement with such third party are not modified
or amended in any manner which could in the good faith business judgment of Bank be materially less advantageous to Borrower; 

8.7    Judgments; Penalties. One or more fines, penalties or final judgments, orders or decrees for
the payment of money in an amount, individually or in the aggregate, of at least Two Hundred Fifty Thousand Dollars ($250,000) (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall
be rendered against Borrower by any Governmental Authority, and the same are not, within ten (10) days after the entry, assessment or issuance thereof, discharged, satisfied, or paid, or after execution thereof, stayed or bonded pending appeal,
or such judgments are not discharged prior to the expiration of any such stay (provided that no Credit Extensions will be made prior to the satisfaction, payment, discharge, stay, or bonding of such fine, penalty, judgment, order or decree); 

8.8    Misrepresentations. Borrower or any Person acting for Borrower makes any representation,
warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in
any material respect when made; 
 8.9    Subordinated Debt. Any document, instrument, or agreement
evidencing any Subordinated Debt shall for any reason be revoked or invalidated or otherwise cease to be in full force and effect, any Person shall be in breach thereof or contest in any manner the validity or enforceability thereof or deny
that it has any further liability or obligation thereunder, or the Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement; or 

8.10    Governmental Approvals. Any Governmental Approval shall have been (a) revoked,
rescinded, suspended, modified in a materially adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications for
renewal of any of such Governmental Approval or that could result in the Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification or non-renewal (i) cause, or could reasonably be expected to cause, a Material Adverse Change, or (ii) materially adversely affects the legal qualifications of Borrower to hold such Governmental
Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to materially adversely affect the status of or legal
qualifications of Borrower to hold any Governmental Approval in any other jurisdiction. 

  
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 9.    BANK’S RIGHTS AND REMEDIES  

9.1    Rights and Remedies. Upon the occurrence and during the continuance of an Event of Default, Bank may,
without notice or demand, do any or all of the following: 
 (a)    declare all Obligations immediately due and payable
(but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank); 

(b)    stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other
agreement between Borrower and Bank; 
 (c)    demand that Borrower (i) deposit cash with Bank in an amount equal
to at least one hundred five percent (105%) of the Dollar Equivalent (or one hundred ten percent (110%) if the Dollar Equivalent is denominated in Foreign Currency) of the aggregate face amount of all Letters of Credit remaining undrawn (plus all
interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment)), to secure all of the Obligations relating to such Letters of Credit, as collateral security for the repayment of any
future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of any Letters of Credit; 

(d)    terminate any FX Contracts; 

(e)    verify the amount of, demand payment of and performance under, and collect any Accounts and General Intangibles,
settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Bank considers advisable, and notify any Person owing Borrower money of Bank’s security interest in such funds; 

(f)    make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its
security interest in the Collateral. Borrower shall assemble the Collateral if Bank requests and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain possession of any part of the
Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its premises, without charge, to
exercise any of Bank’s rights or remedies; 
 (g)    apply to the Obligations any (i) balances and deposits of
Borrower it holds, or (ii) any amount held by Bank owing to or for the credit or the account of Borrower; 

(h)    ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the
Collateral. Bank is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, Patents, Copyrights, mask works, rights of use of any name, trade secrets, trade names, Trademarks, and
advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section,
Borrower’s rights under all licenses and all franchise agreements inure to Bank’s benefit; 

  
 20 

 (i)    place a “hold” on any account maintained with Bank
and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 

(j)    demand and receive possession of Borrower’s Books; and 

(k)    exercise all rights and remedies available to Bank under the Loan Documents or at law or equity, including all
remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof). 

9.2    Power of Attorney. Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of
payment or security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for
amounts and on terms Bank determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the
Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Bank or a third party as the Code permits. Borrower hereby appoints Bank as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Bank’s security interest in the Collateral regardless of
whether an Event of Default has occurred until all Obligations have been satisfied in full and Bank is under no further obligation to make Credit Extensions hereunder. Bank’s foregoing appointment as Borrower’s attorney in fact, and all of
Bank’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Bank’s obligation to provide Credit Extensions terminates. 

9.3    Protective Payments. If Borrower fails to obtain the insurance called for by Section 6.5 or
fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document or which may be required to preserve the Collateral, Bank may obtain such insurance or make such
payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest rate applicable to the Obligations, and secured by the Collateral. Bank will make reasonable efforts to provide Borrower
with notice of Bank obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default. 

9.4    Application of Payments and Proceeds Upon Default. If an Event of Default has occurred and is
continuing, Bank shall have the right to apply in any order any funds in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or
otherwise, to the Obligations. Bank shall pay any surplus to Borrower by credit to the Designated Deposit Account or to other Persons legally entitled thereto; Borrower shall remain liable to Bank for any deficiency. If Bank, directly or indirectly,
enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or
deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor. 

  
 21 

 9.5    Bank’s Liability for Collateral. So long as
Bank complies with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b)
any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the
Collateral. 
 9.6    No Waiver; Remedies Cumulative. Bank’s failure, at any time or times, to
require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith. No waiver
hereunder shall be effective unless signed by the party granting the waiver and then is only effective for the specific instance and purpose for which it is given. Bank’s rights and remedies under this Agreement and the other Loan Documents are
cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity. Bank’s exercise of one right or remedy is not an election and shall not preclude Bank from exercising any other remedy under this Agreement or
other remedy available at law or in equity, and Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence. 

9.7    Demand Waiver. Borrower waives demand, notice of default or dishonor, notice of payment and
nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrower is liable. 

10.    NOTICES 

All notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be
in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt
requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when
delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address indicated below. Bank or Borrower may change its mailing or electronic mail address or
facsimile number by giving the other party written notice thereof in accordance with the terms of this Section 10. 

  
 22 

					
	If to Borrower:	  	Avidity NanoMedicines LLC
		  	10975 N. Torrey Pines Road
		  	Suite 150
		  	La Jolla, California 92037
		  	Attn:	  	Leigh Elkolli
		
	If to Bank:	  	Silicon Valley Bank
		  	4370 La Jolla Village Drive, Suite 1050
		  	San Diego California 92122
		  	Attn:	  	Anthony Flores, Vice President

 11.    CHOICE OF LAW, VENUE, JURY TRIAL WAIVER AND JUDICIAL REFERENCE 

Except as otherwise expressly provided in any of the Loan Documents, California law governs the Loan Documents without regard to principles of
conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from
bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Bank. Borrower expressly submits and consents in
advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the
granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons,
complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement and that service so made shall be
deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid. 

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH
PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 
 WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR
RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or 

  
 23 

 
controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge
of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the
federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California
Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and
permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If during the course of any dispute, a party desires to seek
provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief. The proceeding before the private
judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall be conducted in the same manner as it would be before a
court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and orders applicable to judicial proceedings in the same manner as a trial court judge. The parties
agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to California Code of Civil Procedure
§ 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The private judge shall also determine all issues relating to the
applicability, interpretation, and enforceability of this paragraph. 
 This Section 11 shall survive the termination of this Agreement.

 12.    GENERAL PROVISIONS  

12.1    Survival. All covenants, representations and warranties made in this Agreement continue in
full force until this Agreement has terminated pursuant to its terms and all Obligations have been satisfied (other than inchoate indemnity obligations). Those obligations that are expressly specified in this Agreement as surviving this
Agreement’s termination shall continue to survive notwithstanding this Agreement’s termination. 

12.2    Successors and Assigns. This Agreement binds and is for the benefit of the successors and
permitted assigns of each party. Borrower may not assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted or withheld in Bank’s discretion). Bank has the right, without the
consent of or notice to Borrower, to sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents
(other than the Warrant, as to which assignment, transfer and other such actions are governed by the terms thereof). 

  
 24 

 12.3    Indemnification. Borrower agrees to indemnify, defend and
hold Bank and its directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Bank (each, an “Indemnified Person”) harmless against: (i) all obligations, demands, claims, and
liabilities (collectively, “Claims”) claimed or asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (ii) all losses or expenses (including Bank Expenses) in any way suffered,
incurred, or paid by such Indemnified Person as a result of, following from, consequential to, or arising from transactions between Bank and Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly
caused by such Indemnified Person’s gross negligence or willful misconduct. 
 This Section 12.3 shall survive until all statutes of
limitation with respect to the Claims, losses, and expenses for which indemnity is given shall have run. 

12.4    Time of Essence. Time is of the essence for the performance of all Obligations in this
Agreement. 
 12.5    Severability of Provisions. Each provision of this Agreement is severable from
every other provision in determining the enforceability of any provision. 
 12.6    Correction of Loan
Documents. Bank may correct patent errors and fill in any blanks in the Loan Documents consistent with the agreement of the parties. 

12.7    Amendments in Writing; Waiver; Integration. No purported amendment or modification of any
Loan Document, or waiver, discharge or termination of any obligation under any Loan Document, shall be enforceable or admissible unless, and only to the extent, expressly set forth in a writing signed by the party against which enforcement or
admission is sought. Without limiting the generality of the foregoing, no oral promise or statement, nor any action, inaction, delay, failure to require performance or course of conduct shall operate as, or evidence, an amendment, supplement or
waiver or have any other effect on any Loan Document. Any waiver granted shall be limited to the specific circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether similar or dissimilar, or give
rise to, or evidence, any obligation or commitment to grant any further waiver. The Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings,
representations, warranties, and negotiations between the parties about the subject matter of the Loan Documents merge into the Loan Documents. 

12.8    Counterparts. This Agreement may be executed in any number of counterparts and by different
parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement. 

12.9    Confidentiality. In handling any confidential information, Bank shall exercise the same
degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates (such Subsidiaries and Affiliates, together with Bank, collectively,
“Bank Entities”); (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, Bank shall use its best 

  
 25 

 
efforts to obtain any prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order; (d) to
Bank’s regulators or as otherwise required in connection with Bank’s examination or audit; (e) as Bank considers appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of Bank so
long as such service providers have executed a confidentiality agreement with Bank with terms no less restrictive than those contained herein. Confidential information does not include information that is either: (i) in the public domain or in
Bank’s possession when disclosed to Bank, or becomes part of the public domain (other than as a result of its disclosure by Bank in violation of this Agreement) after disclosure to Bank; or (ii) disclosed to Bank by a third party, if Bank
does not know that the third party is prohibited from disclosing the information. 
 Bank Entities may use anonymous forms of confidential
information for aggregate datasets, for analyses or reporting, and for any other uses not expressly prohibited in writing by Borrower. The provisions of the immediately preceding sentence shall survive termination of this Agreement. 

12.10    Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrower and
Bank arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled. 

12.11    Electronic Execution of Documents. The words “execution,” “signed,”
“signature” and words of like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a
manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions
Act. 
 12.12    Captions. The headings used in this Agreement are for convenience only and shall
not affect the interpretation of this Agreement. 
 12.13    Construction of Agreement. The parties
mutually acknowledge that they and their attorneys have participated in the preparation and negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty
to exist. 
 12.14    Relationship. The relationship of the parties to this Agreement is determined
solely by the provisions of this Agreement. The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of parties to an arm’s-length contract. 
 12.15    Third Parties. Nothing in this
Agreement, whether express or implied, is intended to: (a) confer any benefits, rights or remedies under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors and
assigns; (b) relieve or discharge the obligation or liability of any person not an express party to this Agreement; or (c) give any person not an express party to this Agreement any right of subrogation or action against any party to this
Agreement. 

  
 26 

 13.    DEFINITIONS  

13.1    Definitions. As used in the Loan Documents, the word “shall” is mandatory, the word
“may” is permissive, the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular includes the plural, and numbers denoting amounts that are set off in brackets are
negative. As used in this Agreement, the following capitalized terms have the following meanings: 
 “Account” is any
“account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to Borrower. 

“Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter
be made. 
 “Affiliate” is, with respect to any Person, each other Person that owns or controls directly or indirectly the
Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that
Person’s managers and members. 
 “Agreement” is defined in the preamble hereof. 

“Authorized Signer” is any individual listed in Borrower’s Borrowing Resolution who is authorized to execute the Loan
Documents, including any Growth Capital Advance request, on behalf of Borrower. 
 “Bank” is defined in the preamble
hereof. 
 “Bank Entities” is defined in Section 12.9. 

“Bank Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses)
for preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to Borrower. 

“Bank Services” are any products, credit services, and/or financial accommodations previously, now, or hereafter provided to
Borrower or any of its Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management services (including, without limitation, merchant services, direct deposit of payroll, business credit cards,
and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s various agreements related thereto (each, a “Bank Services Agreement”).

  
 27 

 “Basic Rate” is the per annum rate of interest (based on a year of 360
days) equal to the sum of (a) U.S. Treasury note yield to maturity for a term equal to the Treasury Note Maturity as reported in the Federal Reserve Statistical Release H.15-Selected Interest Rates under
the heading “U.S. Government Securities/Treasury Constant Maturities” on the Funding Date, plus (b) three and sixth tenths of one percent (3.60%). (In the event Release H.15 is no longer published, Bank shall select a comparable
publication to determine the U.S. Treasury note yield to maturity.) 
 “Borrower” is defined in the preamble hereof. 

“Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records
regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information. 

“Borrowing Resolutions” are, with respect to any Person, those resolutions substantially in the form attached hereto as
Exhibit D. 
 “Business Day” is any day that is not a Saturday, Sunday or a day on which Bank is closed. 

“Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or
any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either
Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.; (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue; and (d) money market funds at least ninety-five percent
(95%) of the assets of which constitute Cash Equivalents of the kinds described in clauses (a) through (c) of this definition. 

“Claims” is defined in Section 12.3. 

“Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of
California; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article
or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on any Collateral is governed by
the Uniform Commercial Code in effect in a jurisdiction other than the State of California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the
provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 

“Collateral” is any and all properties, rights and assets of Borrower described on Exhibit A. 

  
 28 

 “Collateral Account” is any Deposit Account, Securities Account, or
Commodity Account. 
 “Commodity Account” is any “commodity account” as defined in the Code with such additions
to such term as may hereafter be made. 
 “Compliance Certificate” is that certain certificate in the form attached hereto
as Exhibit B. 
 “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of
that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation, in each case, directly or indirectly guaranteed, endorsed, co-made, discounted
or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or
commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent
Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 

“Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a
Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Bank pursuant to which Bank obtains control (within the meaning of the Code) over such
Deposit Account, Securities Account, or Commodity Account. 
 “Conversion Date” is defined in Section 2.1.1(b). 

“Copyrights” are any and all copyright rights, copyright applications, copyright registrations and like protections in each
work of authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret. 

“Credit Extension” is any Growth Capital Advance, or any other extension of credit by Bank for Borrower’s benefit. 

“Default Rate” is defined in Section 2.2(b). 

“Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may hereafter
be made. 
 “Designated Deposit Account” is the multicurrency account denominated in Dollars, account number
                    , maintained by Borrower with Bank. 

  
 29 

 “Dollars,” “dollars” or use of the sign
“$” means only lawful money of the United States and not any other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful money of the United States.

 “Dollar Equivalent” is, at any time, (a) with respect to any amount denominated in Dollars, such amount, and
(b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing rate of exchange in San Francisco, California, for sales of the
Foreign Currency for transfer to the country issuing such Foreign Currency. 
 “Domestic Subsidiary” is a Subsidiary that
is an entity organized under the laws of the United States or any state or territory thereof. 
 “Effective Date” is
defined in the preamble hereof. 
 “Equipment” is all “equipment” as defined in the Code with such additions to
such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 

“ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations. 

“Event of Default” is defined in Section 8. 

“Exchange Act” is the Securities Exchange Act of 1934, as amended. 

“Final Payment” is a payment (in addition to and not a substitution for the regular monthly payments of principal and accrued
interest) due on the dates set forth in Sections 2.1.1(c) and 2.3(a), equal to eight percent (8.00%) of the original principal amount of the applicable Growth Capital Advance. 

“First Tranche Growth Capital Advance” is defined in Section 2.1.1(a). 

“Foreign Currency” means lawful money of a country other than the United States. 

“Foreign Subsidiary” is a Subsidiary that is not an entity organized under the laws of the United States or any state or
territory thereof. 
 “Funding Date” is any date on which a Credit Extension is made to or for the account of Borrower
which shall be a Business Day. 
 “FX Contract” is any foreign exchange contract by and between Borrower and Bank under
which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency on a specified date. 

“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles
Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the
accounting profession, which are applicable to the circumstances as of the date of determination. 

  
 30 

 “General Intangibles” is all “general intangibles” as defined in
the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims, income and other tax refunds, security and other deposits, payment intangibles,
contract rights, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and
business interruption insurance), payments of insurance and rights to payment of any kind. 
 “Good Faith Deposit” is
defined in Section 2.3(b). 
 “Governmental Approval” is any consent, authorization, approval, order, license, franchise,
permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 

“Governmental Authority” is any nation or government, any state or other political subdivision thereof, any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any
self-regulatory organization. 
 “Growth Capital Advance” and “Growth Capital Advances” is defined in
Section 2.1.1(a). 
 “Growth Capital Commitment” is Five Million Dollars ($5,000,000). 

“Growth Capital Commitment Termination Date” is the earlier to occur of (a) March 31, 2016 or (b) an Event of
Default. 
 “Growth Capital Maturity Date” is, for each Growth Capital Advance,
thirty-six (36) months after the Conversion Date for such Growth Capital Advance. 

“Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such as
reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and (d) Contingent Obligations. 

“Indemnified Person” is defined in Section 12.3. 

“Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code or any other
bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 

  
 31 

 “Intellectual Property” means, with respect to any Person, means all of
such Person’s right, title, and interest in and to the following: 
 (a)    its Copyrights, Trademarks and Patents;

 (b)    any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented
inventions, know-how, operating manuals; 
 (c)    any and all source code; 

(d)    any and all design rights which may be available to such Person; 

(e)    any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the
right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above; and 

(f)    all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents. 

“Interest-Only Period” means, for each Growth Capital Advance, a twelve (12) month period, commencing on the Funding
Date of each Growth Capital Advance and continuing through the last day of the twelve (12th) consecutive month following such Funding Date. 

“Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term
as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of
Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 

“Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities),
and any loan, advance or capital contribution to any Person. 
 “Key Person” is Borrower’s Chief Executive Officer,
who is Troy Wilson, PHD, JD as of the Effective Date. 
 “Letter of Credit” is a standby or commercial letter of credit
issued by Bank upon request of Borrower based upon an application, guarantee, indemnity, or similar agreement. 
 “Lien” is
a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property. 

“Loan Documents” are, collectively, this Agreement and any schedules, exhibits, certificates, notices, and any other
documents related to this Agreement, the Warrant, any Bank Services Agreement, any subordination agreement, any note, or notes or guaranties executed by Borrower or any guarantor, and any other present or future agreement by Borrower and/or any
guarantor with or for the benefit of Bank in connection with this Agreement or Bank Services, all as amended, restated, or otherwise modified. 

  
 32 

 “Material Adverse Change” is (a) a material impairment in the
perfection or priority of Bank’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrower; or (c) a material impairment of
the prospect of repayment of any portion of the Obligations. 
 “Monthly Financial Statements” is defined in Section
6.2(a). 
 “Obligations” are Borrower’s obligations to pay when due any debts, principal, interest, fees, Bank
Expenses, and other amounts Borrower owes Bank now or later, whether under this Agreement, the other Loan Documents (other than the Warrant), or otherwise, including, without limitation, all obligations relating to letters of credit (including
reimbursement obligations for drawn and undrawn letters of credit), cash management services, and foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of
Borrower assigned to Bank, and to perform Borrower’s duties under the Loan Documents (other than the Warrant). 
 “Operating
Documents” are, for any Person, such Person’s formation documents, as certified by the Secretary of State (or equivalent agency) of such Person’s jurisdiction of organization on a date that is no earlier than thirty (30) days
prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such
Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto. 

“Patents” means all patents, patent applications and like protections including without limitation improvements, divisions,
continuations, renewals, reissues, extensions and continuations-in-part of the same. 

“Payment/Advance Form” is that certain form attached hereto as Exhibit C. 

“Perfection Certificate” is defined in Section 5.1. 

“Permitted Acquisition” means any Acquisition, consisting of a single transaction or a series of related transactions, by the
Borrower in the form of Acquisitions of any other Person if (a) total cash consideration for all such Acquisitions does not in the aggregate exceed Two Hundred Fifty Thousand Dollars ($250,000) in any fiscal year of Borrower; (b) the
Target shall be in a similar line of business as that of the Borrower; (c) the Target shall be a going concern, not involved in any material litigation that is not fully covered by reserves and/or insurance; (d) no Event of Default has
occurred and is continuing or would exist after giving effect to such Acquisition; (e) Borrower is the surviving legal entity; (f) no Indebtedness shall be assumed by any Borrower in connection with such Acquisition (other than
Indebtedness permitted under clauses (d), (e), (f), and (g) of the definition of Permitted Indebtedness existing at the time of such Acquisition and not incurred in connection therewith); and (g) the Acquisition is not a hostile
Acquisition. 

  
 33 

 “Permitted Indebtedness” is: 

(a)    Borrower’s Indebtedness to Bank under this Agreement and the other Loan Documents; 

(b)    Indebtedness existing on the Effective Date and shown on the Perfection Certificate; 

(c)    Subordinated Debt; 

(d)    unsecured Indebtedness to trade creditors incurred in the ordinary course of business; 

(e)    Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business;

 (f)    Indebtedness secured by Liens permitted under clauses (a) and (c) of the definition of “Permitted
Liens” hereunder; 
 (g)    unsecured Indebtedness not otherwise permitted by Section 7.4 in an aggregate principal
amount not to exceed Fifty Thousand Dollars ($50,000) at any time; 
 (h)    unsecured Indebtedness in connection with
credit cards incurred in the ordinary course of business not to exceed One Hundred Fifty Thousand Dollars ($150,000); 

(i)    intercompany Indebtedness that otherwise constitutes an Investment permitted under clause (f) of the
definition of Permitted Investments; and 
 (j)    extensions, refinancings, modifications, amendments and restatements
of any items of Permitted Indebtedness (a) through (i) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be.

 “Permitted Investments” are: 

(a)    Investments (including, without limitation, Subsidiaries) existing on the Effective Date and shown on the
Perfection Certificate; 
 (b)    Investments consisting of Cash Equivalents and Investments permitted by
Borrower’s investment policy; 
 (c)    Investments consisting of the endorsement of negotiable instruments for
deposit or collection or similar transactions in the ordinary course of Borrower; 
 (d)    Investments consisting of
deposit accounts in which Bank has a perfected security interest; 
 (e)    Investments accepted in connection with
Transfers permitted by Section 7.1; 

  
 34 

 (f)    Investments (i) by Borrower in Subsidiaries (including
Subsidiaries formed or acquired after the Effective Date) not to exceed Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate in any fiscal year and (ii) by Subsidiaries in other Subsidiaries (including Subsidiaries formed or acquired
after the Effective Date) not to exceed Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate in any fiscal year or in Borrower; 

(g)    Investments consisting of (i) travel advances and employee relocation loans and other employee loans and
advances in the ordinary course of business, and (ii) loans to employees, officers or managers relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee equity purchase plans or agreements approved by
Borrower’s Board of Managers; 
 (h)    Investments (including debt obligations) received in connection with the
bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; 

(i)    Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and
suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (i) shall not apply to Investments of Borrower in any Subsidiary; 

(j)    Repurchases of equity permitted by Section 7.7; 

(k)    joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing of technology, or licensing of technology that could not result in a legal transfer of title of the licensed property that may be exclusive in respects other than territory and that may be
exclusive as to territory only as to discreet geographical areas outside of the United States the development of technology or the providing of technical support, provided that any cash investments by Borrower do not exceed Two Hundred Fifty
Thousand Dollars ($250,000) in the aggregate in any fiscal year; and 
 (l)    other Investments not otherwise permitted
by Section 7.7 not exceeding Fifty Thousand Dollars ($50,000) in the aggregate outstanding at any time. 
 “Permitted
Liens” are: 
 (a)    Liens existing on the Effective Date and shown on the Perfection Certificate or arising
under this Agreement and the other Loan Documents; 
 (b)    Liens for taxes, fees, assessments or other government
charges or levies, either (i) not due and payable or (ii) being contested in good faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal
Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder; 
 (c)    purchase money Liens
(i) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more than Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate amount outstanding, or (ii) existing on Equipment
when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment; 

  
 35 

 (d)    Liens of carriers, warehousemen, suppliers, landlords or other
Persons that are possessory in nature arising in the ordinary course of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000) and which are
not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto; 

(e)    Liens to secure payment of workers’ compensation, employment insurance,
old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA); 

(f)    Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in
(a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase; 

(g)    leases or subleases of real property granted in the ordinary course of Borrower’s business (or, if referring
to another Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal property (other than Intellectual Property) granted in the
ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do not prohibit granting Bank a security interest therein;

 (h)    non-exclusive licenses of Intellectual Property granted to third
parties in the ordinary course of business and licenses of Intellectual Property that could not result in a legal transfer of title of the licensed property that may be exclusive in respects other than territory and that may be exclusive as to
territory only as to discreet geographical areas outside of the United States; 
 (i)    Security deposits under real
property leases that are made in the ordinary course of business not to exceed One Hundred Thousand Dollars ($100,000) in the aggregate ay any time; 

(j)    Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of
Default under Sections 8.4 and 8.7; and 
 (k)    Liens in favor of other financial institutions arising in connection
with Borrower’s deposit and/or securities accounts held at such institutions, provided that Bank has a perfected security interest in the amounts held in such deposit and/or securities accounts except to the extent permitted in Section 6.8.

 “Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust,
unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 

  
 36 

 “Registered Organization” is any “registered organization” as
defined in the Code with such additions to such term as may hereafter be made. 
 “Repayment Period” is, for each Growth
Capital Advance, a period of time equal to thirty-six (36) consecutive months commencing on the Conversion Date for such Growth Capital Advance. 

“Requirement of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or
common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is
subject. 
 “Responsible Officer” is any of the Chief Executive Officer, Chief Business Officer, President, Chief Financial
Officer, Director of Finance, and Controller of Borrower. 
 “Restricted License” is any material license or other
agreement with respect to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property, or (b) for which
a default under or termination of could interfere with the Bank’s right to sell any Collateral. 
 “SEC” shall mean
the Securities and Exchange Commission, any successor thereto, and any analogous Governmental Authority. 
 “Second Tranche Growth
Capital Advance” is defined in Section 2.1.1(a). 
 “Securities Account” is any “securities account” as
defined in the Code with such additions to such term as may hereafter be made. 
 “Subordinated Debt” is indebtedness
incurred by Borrower subordinated to all of Borrower’s now or hereafter indebtedness to Bank (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and the
other creditor), on terms acceptable to Bank. 
 “Subsidiary” is, as to any Person, a corporation, partnership, limited
liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by
such Person. Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower. 

“Trademarks” means any trademark and servicemark rights, whether registered or not, applications to register and
registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks. 

  
 37 

 “Tranche Two Milestone” means the date on which Bank receives and approves
evidence reasonably satisfactory to Bank, in its sole discretion, that Borrower has successfully identified a pre-development candidate for the PSMA/AR program or another pipeline program identified by
Borrower. 
 “Transfer” is defined in Section 7.1. 

“Treasury Note Maturity” is thirty-six (36) months. 

“Warrant” is that certain Warrant to Purchase Limited Liability Company Interest dated as of the Effective Date executed by
Borrower in favor of Bank, as the same may be amended, modified, supplemented or restated from time to time. 
 [Signature page follows.]

  
 38 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as
of the Effective Date. 
  

			
	 BORROWER:

	
	 AVIDITY NANOMEDICINES LLC

	By:	 	/s/ Troy Wilson
	Name:	 	 Troy Wilson, Ph.D., J.D.

	Title:	 	 President and Chief Executive Officer

  

			
	 BANK:

	
	 SILICON VALLEY BANK

	 By:
	 	/s/ Anthony Flores
	 Name:
	 	 Anthony Flores

	 Title:
	 	 Vice President

 [Signature Page to Loan and Security Agreement] 

 EXHIBIT A – COLLATERAL DESCRIPTION 

The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property: 

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license
agreements, franchise agreements, General Intangibles (except as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures,
letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and

 All Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all
substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

Notwithstanding the foregoing, the Collateral does not include (a) more than 65% of the presently existing and hereafter arising issued
and outstanding shares of equity owned by Borrower of any controlled foreign corporation (as defined in the Internal revenue Code of 1986, as amended) which shares entitle the holder thereof to vote for directors or any other matter, (b) any
rights under any lease, instrument, contract or agreement to which Borrower is a party or any rights or interest thereunder if and only for so long as the Bank’s security interest shall constitute or result in a breach, termination or default
under any lease, instrument, contract or agreement (other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Code, or any other applicable law or principles of equity); provided, however, that upon termination of such prohibition, such interest shall immediately
become Collateral without any action by Borrower or Bank, or (c) any Intellectual Property; provided, however, the Collateral shall include all Accounts and all proceeds of Intellectual Property. If a judicial authority (including a U.S.
Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall
automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security interest in such Accounts and such other property of Borrower that are proceeds of the
Intellectual Property. 
 Pursuant to the terms of a certain negative pledge arrangement with Bank, Borrower has agreed not to encumber any
of its Intellectual Property without Bank’s prior written consent. 

 EXHIBIT B 

COMPLIANCE CERTIFICATE 

 

			
	   TO:    SILICON VALLEY BANK
	  	Date:                             
		
	   FROM: AVIDITY NANOMEDICINES LLC
	  	

 The undersigned authorized officer of AVIDITY NANOMEDICINES LLC (“Borrower”) certifies that
under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”): 
 (1)
Borrower is in complete compliance for the period ending                      with all required covenants except as noted below;
(2) there are no Events of Default; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be
applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true,
accurate and complete in all material respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes,
assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries
relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank. 
 Attached are
the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The
undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is
delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance
status by circling Yes/No under “Complies” column. 
  

					
	 Reporting Covenants
	  	 Required
	  	 Complies

	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes        No
			
	Annual financial statement (CPA Audited) + CC	  	FYE within 180 days	  	Yes        No
			
	Financial Projections	  	FYE within 30 days not later than 7 days after Board approval and more frequently as updated	  	Yes        No

									
	 Other Matters
	  				  			
			
	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries? If yes, provide copies of any such amendments or changes with this
Compliance Certificate.	  	 	Yes	 	  	 	No	 
	
	 The following are the exceptions with respect to the certification above: (If no exceptions exist, state
“No exceptions to note.”)
	  

	
	 	 
	 	 

  

					
	        AVIDITY NANOMEDICINES LLC	 	BANK USE ONLY
		
		 	Received by:
                                         
               
	        By:
                                         
                   	 		 	                         AUTHORIZED SIGNER
	         Name:

        Title:
	 	Date:
                                         
                           
		
		 	Verified:
                                         
                   
		 		 	                         AUTHORIZED SIGNER
		 	Date:
                                         
                           
		
		 	Compliance Status:    Yes    No

 EXHIBIT C – LOAN PAYMENT/ADVANCE REQUEST FORM 

DEADLINE FOR SAME DAY PROCESSING IS
NOON PACIFIC TIME 
  

			
	 Fax To:
  
	  	
                   
                     Date:
                                         
               
  

	LOAN PAYMENT:	  	 
	AVIDITY NANOMEDICINES LLC
	 	 
	From Account
#                                         
                               	  	To Account
#                                         
                                       
	                             
                   (Deposit Account #)	  	                            
                    (Loan Account #)
	 	 
	Principal
$                                         
                                       	  	and/or Interest
$                                         
                                   
	 	 
	Authorized
Signature:                                       
                         	  	            Phone Number:
                                         
                       
	 	 
	 Print Name/Title:
                                         
                             

 
	  	 
		  	
	LOAN ADVANCE:	  	 
	 
	Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance
are for an outgoing wire.
	 	 
	From Account
#                                         
                           	  	To Account
#                                         
                                   
	                             
                   (Loan Account #)	  	                            
                (Deposit Account #)
	 	 
	Amount of Advance
$                                         
                   	  	 
	 
	All Borrower’s representations and warranties in the Loan and Security Agreement are true, correct and
complete in all material respects on the date of the request for an advance; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in
the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date:
	 	 
	Authorized
Signature:                                       
                     	  	Phone Number:
                                         
                   
	 Print Name/Title:
                                         
                           
  
	  	 
		  	
	OUTGOING WIRE REQUEST:	  	 
	Complete only if all or a portion of funds from the loan advance above is to be wired.
	Deadline for same day processing is noon, Pacific Time	  	 
	 	 
	Beneficiary Name:
                                         
                           	  	Amount of Wire:
$                                         
                           
	Beneficiary Bank:
                                         
                            	  	Account Number:
                                         
                           
	City and State:
                                         
                                 	  	 
	 	 
	Beneficiary Bank Transit (ABA) #:
                                        
	  	Beneficiary Bank Code (Swift, Sort, Chip, etc.):
                            
	  	  	            (For International Wire Only)
	 	 
	Intermediary Bank:
                                         
                       	  	Transit (ABA) #:
                                         
                                   
	For Further Credit to:
                                         
                                         
                                         
                                         
            
	 
	Special Instruction:
                                         
                                         
                                         
                                         
                
	 
	By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in
accordance with and subject to the terms and conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me (us).
	 	 
	Authorized
Signature:                                       
                     	  	2nd Signature (if
required):                                       
                     
	Print
Name/Title:                                       
                             	  	Print
Name/Title:                                       
                             
	
Telephone #:                       
                                         
            
  
	  	
Telephone #:                       
                                         
        
  

 EXHIBIT D 

Form of Borrowing Resolutions 
 (see
attached) 

 

 
 LIMITED LIABILITY COMPANY BORROWING CERTIFICATE 

 

					
	BORROWER:	  	 AVIDITY NANOMEDICINES LLC
	  	 DATE: August 7, 2015

	BANK:	  	 SILICON VALLEY BANK
	  	

 I/We hereby certify as follows, as of the date set forth above: 

Borrower is duly organized, existing and in good standing as a 

                 member-managed 

                 manager-managed 

limited liability company under the laws of the State of Delaware, and that we are all of Borrower’s 

                 members 

                 managers 

and that Borrower’s name shown above is the exact legal name of Borrower. 

We/ I certify that at a duly held meeting of Borrower (or by other authorized company action) the following resolutions were adopted. Such
resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and Silicon Valley Bank (“Bank”) may rely on them until Bank receives written notice of
revocation from Borrower. 
 RESOLVED, that any one of the following individuals, whose names,
titles and signatures are below, may act on behalf of Borrower: 
  

							
	Name	  	Title	  	Signature	  	Authorized to Add or Remove Signatories
				
	                                 
                       	  	                                 
                       	  	                                 
                       	  	☐
				
	                                 
                       	  	                                 
                       	  	                                 
                       	  	☐
				
	                                 
                       	  	                                 
                       	  	                                 
                       	  	☐
				
	                                 
                       	  	                                 
                       	  	                                 
                       	  	☐

 RESOLVED FURTHER, that any one of the persons
designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower. 

RESOLVED FURTHER, that such individuals may, on behalf of Borrower: 

Borrow Money. Borrow money from Bank. 

Execute Loan Documents. Execute any loan documents Bank requires. 

Grant Security. Grant Bank a security interest in any of Borrower’s assets. 

Negotiate Items. Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower
has an interest and receive cash or otherwise use the proceeds. 

 Apply for Letters of Credit. Apply for letters of credit from Bank. 

Enter Derivative Transactions. Execute spot or forward foreign exchange contracts, interest rate swap agreements, or other
derivative transactions. 
 Further Acts. Designate other individuals to request advances, pay fees and costs and execute other
documents or agreements (including documents or agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effect these resolutions. 

RESOLVED FURTHER, that all acts authorized by the above resolutions and any prior acts
relating thereto are ratified. 
 The persons listed above are Borrower’s members/managers or employees with their titles and signatures shown
next to their names. 
 The execution, delivery, and performance of this Certificate are within the undersigned’s powers, have been duly authorized,
and are not in conflict with nor constitute a breach of any provision contained in the undersigned’s operating agreement, nor will they constitute an event of default under any material agreement to which the undersigned is a party or by which
the undersigned is bound. No consent from any other party is required to execute this Certificate. 
 We/I certify that the persons listed below are
Borrower’s members/managers with their signatures shown above their names. 
 We/I have read all the provisions of this Limited
Liability Company Borrowing Certificate, and we certify and agree to its terms. 
  

					
	  
	 	 	  	  

	  
	 	 	  	  

	 [print name]

 
	 		  	 [print name]

 

	 [title]

 
	 		  	 [title]

 

	 [print name]

 
	 		  	 [print name]

 

	[title]	 		  	[title]

  
 2 

 FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT 

THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into June 9, 2017, by and between
SILICON VALLEY BANK, a California corporation (“Bank”), and AVIDITY BIOSCIENCES LLC, a Delaware corporation (“Borrower”). 

RECITALS 

A.    Bank and Borrower have entered into that certain Loan and Security Agreement dated as of August 7, 2015 (as the
same may from time to time be amended, modified, supplemented or restated, the “Loan Agreement”). 

B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement. 

C.    Borrower has requested that Bank amend the Loan Agreement to (i) add a new term loan and (ii) make certain
other revisions to the Loan Agreement as more fully set forth herein. 
 D.    Bank has agreed to so amend certain
provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 

1.    Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings
given to them in the Loan Agreement. 
 2.    Existing Growth Capital Advances. Borrower hereby
acknowledges that Bank made Growth Capital Advances to Borrower in the original aggregate principal amount not to exceed Five Million Dollars ($5,000,000) (the “Existing Growth Capital Term Loan”). Borrower acknowledges and
agrees that as of the date hereof, the aggregate outstanding principal balance of the Existing Growth Capital Term Loan is Four Million Ninety-Seven Thousand Two Hundred Twenty-Two Dollars and Twenty-Eight
Cents ($4,097,222.28). Borrower and Bank acknowledge and agree that there is no further availability to borrow under the Existing Growth Capital Term Loan. Borrower represents and warrants to Bank that all of such sum is due and owing Bank, without
offset or defense of any kind or nature and in the event Borrower has any offsets or defenses thereto, Borrower hereby irrevocably waives all such offsets and defenses. Borrower acknowledges and agrees that the execution of this Agreement is not
intended to and shall not cause or result in a novation with respect to the Existing Growth Capital Term Loan. Borrower shall, on or about the date hereof, and in conjunction with Borrower’s execution of this Amendment, use a
portion of the proceeds from the Tranche One Term Loan Advance to repay in full in cash all of the Obligations owing to Bank under the Existing Growth Capital Term Loan, including, without limitation, the amount of the Final Payment due to Bank
under the Loan Agreement. 

 3.    Amendments to Loan Agreement. 

3.1    Section 2.1 (Promise to Pay). Section 2.1 of the Loan Agreement is hereby
amended by adding the following immediately after Section 2.1.1 as Section 2.1.2: 
 2.1.2    Term Loan
Advances.  
 (a)    Availability. Subject to the terms and conditions of this
Agreement, upon Borrower’s request, Bank shall make term loan advances available to Borrower in an aggregate original principal amount not to exceed Seven Million Dollars ($7,000,000) (each such advance is referred to herein as a “Term
Loan Advance” and, collectively, as the “Term Loan Advances”) available in two (2) tranches as follows: (i) the first (1st) tranche shall be made on or about the First Amendment Effective Date in the original
principal amount equal to Five Million Dollars ($5,000,000) (the “Tranche One Term Loan Advance”) and (ii) provided that the Tranche Two Term Loan Milestone is satisfied, the second (2nd) tranche shall be
available during the Tranche Two Term Loan Draw Period in the aggregate original principal amount not to exceed Two Million Dollars ($2,000,000) (the “Tranche Two Term Loan Advance”). A portion of the proceeds from the Tranche One
Term Loan Advance shall be used to repay in full in cash all of the Obligations owing to Bank under the Growth Capital Advances, including the Final Payment. Each Tranche Two Term Loan Advance must be in an amount equal to at least Five Hundred
Thousand Dollars ($500,000). After repayment, no Term Loan Advance (or any portion thereof) may be re-borrowed. 

(b)    Repayment. 

(i)    Interest-Only Payments. Borrower shall make monthly payments of interest-only on each Term
Loan Advance commencing on the first (1st) calendar day of the first (1st) month following the month in which the Funding Date for such Term Loan Advance occurs and continuing thereafter during the Interest-Only Period on the first (1st) calendar
day of each successive month. 
 (ii)    Principal and Interest Payments. Commencing on the first
(1st) calendar day of the first (1st) month following the Interest-Only Period for each Term Loan Advance (the “Term Loan Conversion Date”) and continuing on the first (1st) calendar day of each month thereafter, Borrower shall
repay each Term Loan Advance in (i) the Applicable Number of equal monthly installments of principal, plus (ii) monthly payments of accrued interest at the rate set forth in Section 2.2(a). All outstanding principal and accrued and
unpaid interest under each Term Loan Advance, and all other outstanding Obligations with respect to such Term Loan Advance, are due and payable in full on the Term Loan Maturity Date. 

(c)    Permitted Prepayment. At Borrower’s option, Borrower shall have the option to prepay all
or any part of the Term Loan Advances, provided Borrower (i) delivers written notice to Bank of its election to prepay the Term Loan Advances at least 

  
 2 

 
five (5) days prior to such prepayment, and (B) pays, on the date of the prepayment (i) all applicable accrued and unpaid interest with respect to each prepaid Term Loan Advance
through the date the prepayment is made; plus (ii) all unpaid principal with respect to such prepaid Term Loan Advance; plus (iii) the applicable portion of the Prepayment Fee plus (iv) the applicable portion of the Term Loan Final
Payment; plus (v) all other sums, if any, that shall have become due and payable hereunder with respect to this Agreement. Any partial prepayments, other than the final prepayment, shall each be in an amount of not less than One Hundred
Thousand Dollars ($100,000). 
 (d)    Mandatory Prepayment Upon an Acceleration. If the Term Loan
Advances are accelerated by Bank following the occurrence and during the continuance of an Event of Default, Borrower shall immediately pay to Bank an amount equal to the sum of (i) all outstanding principal plus accrued and unpaid interest
with respect to the Term Loan Advances, (ii) the Prepayment Fee, (iii) the Term Loan Final Payment, and (iv) all other sums, if any, that shall have become due and payable with respect to the Term Loan Advances, including interest at
the Default Rate with respect to any past due amounts. 
 3.2    Section 2.2 (Payment of Interest
on the Credit Extensions). Section 2.2(a) of the Loan Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 

(a)    Interest Rate. Subject to Section 2.2(b), the outstanding principal amount of each Term
Loan Advance shall accrue interest at a floating per annum rate equal to one-fifth of one percent (0.20%) above the Prime Rate, which interest shall be payable monthly in accordance with Section 2.2(d)
below. 
 3.3    Section 2.3 (Fees). Section 2.3 of the Loan Agreement is hereby
amended by adding the following immediately after clause (d) as clauses (e), (f), and (g), respectively: 

(e)    Prepayment Fee. The Prepayment Fee when due hereunder; 

(f)    Term Loan Final Payment. The Term Loan Final Payment when due hereunder; and 

(g)    Term Loan Good Faith Deposit Fee. Borrower has paid to Bank a deposit of Ten Thousand Dollars
($10,000) (the “Term Loan Good Faith Deposit”) to initiate Bank’s due diligence review process. Any portion of the Term Loan Good Faith Deposit not utilized to pay Bank Expenses will be deposited into the Designated Deposit
Account. 
 3.4    Section 3.4 (Procedures for Borrowing). Section 3.4 of the Loan
Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 

3.4    Procedures for Borrowing. Subject to the prior satisfaction of all other applicable
conditions to the making of a Term Loan Advance set forth in this Agreement, to obtain a Term Loan Advance, Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Pacific

  
 3 

 
time on the Funding Date of a Term Loan Advance. Together with any such electronic or facsimile notification, Borrower shall deliver to Bank by electronic mail or facsimile a completed
Payment/Advance Form executed by a Responsible Officer or his or her designee. Bank may rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Bank shall credit Term Loan Advances to the Designated
Deposit Account. Bank may make Term Loan Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Term Loan Advances are necessary to meet Obligations which have become due.

 3.5    Section 6.10 (Access to Collateral; Books and Records). Section 6.10
of the Loan Agreement is hereby amended by deleting the reference to “Eight Hundred Fifty Dollars ($850)” therein and inserting in lieu thereof “One Thousand Dollars ($1,000)”. 

3.6    Section 8.1 (Payment Default). Section 8.1 of the Loan Agreement is hereby
amended by deleting the first sentence thereof in its entirety and replacing it with the following: 
 Borrower fails to (i) make any
payment of principal or interest on any Credit Extension when due, or (ii) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day cure period shall not apply
to payments due on the Term Loan Maturity Date). 
 3.7    Section 10 (Notices). Section 10 of
the Loan Agreement is hereby amended by deleting Borrower’s notice information in its entirety and replacing it with the following: 

If to Borrower:        Avidity Biosciences LLC 

                       
         10975 N. Torrey Pines Road, Suite 150 

                       
         La Jolla, California 92037 

                       
         Attn: Leigh Elkolli 
 3.8    Section 13 (Definitions).

 (a)    The following terms and their respective definitions set forth in Section 13.1 of the Loan Agreement are
hereby amended by deleting them in their entirety and replacing them with the following: 
 “Authorized
Signer” is any individual listed in Borrower’s Borrowing Resolution who is authorized to execute the Loan Documents, including any Term Loan Advance request, on behalf of Borrower. 

“Credit Extension” is any Term Loan Advance, or any other extension of credit by Bank for Borrower’s
benefit. 

  
 4 

 “Warrant” is (a) the Warrant to Purchase Limited
Liability Company Series A Preferred Units dated as of the Effective Date executed by Borrower in favor of Bank and (b) the Warrant to Purchase Limited Liability Company Common Units dated as of the First Amendment Effective Date executed by
Borrower in favor of Bank, each as the same may be amended, modified, supplemented or restated from time to time. 

(b)    The following terms and their respective definitions are hereby added to the list set forth in Section 13.1 of
the Loan Agreement in alphabetical order: 
 “Applicable Number” is
thirty-six (36); provided, however, (a) upon Bank’s receipt of evidence satisfactory to Bank in its sole and absolute discretion that Borrower has, after the First Amendment Effective Date, received
milestone payments in the aggregate amount of not less than Two Million Dollars ($2,000,000), the Applicable Number shall automatically be thirty (30), and (b) upon the Funding Date of the initial Tranche Two Term Loan Advance, the Applicable
Number shall automatically be twenty-four (24). 
 “First Amendment Effective Date” is June 9, 2017.

 “Prepayment Fee” is an additional fee, payable to Bank, with respect to each Term Loan Advance, in an
amount equal to (a) two percent (2%) of the aggregate outstanding principal amount of the Term Loan Advances if the prepayment is made on or before the first (1st) anniversary of the Effective Date and (b) one percent (1%) of the aggregate
outstanding principal amount of the Term Loan Advances if the prepayment is made after the first (1st) anniversary of the Effective Date but before the Term Loan Maturity Date. Notwithstanding the foregoing, no Prepayment Fee shall be charged if the
Term Loan Advances are replaced with a new facility from Bank. 
 “Prime Rate” is the rate of interest per
annum from time to time published in the money rates section of The Wall Street Journal or any successor publication thereto as the “prime rate” then in effect; provided that, in the event such rate of interest is less than zero, such rate
shall be deemed to be zero for purposes of this Agreement; and provided further that if such rate of interest, as set forth from time to time in the money rates section of The Wall Street Journal, becomes unavailable for any reason as determined by
Bank, the “Prime Rate” shall mean the rate of interest per annum announced by Bank as its prime rate in effect at its principal office in the State of California (such Bank announced Prime Rate not being intended to be the lowest rate of
interest charged by Bank in connection with extensions of credit to debtors); provided that, in the event such rate of interest is less than zero, such rate shall be deemed to be zero for purposes of this Agreement. 

“Term Loan Advance” or “Term Loan Advances” is defined in Section 2.1.2(a). 

“Term Loan Conversion Date” is defined in Section 2.1.2(b)(ii). 

  
 5 

 “Term Loan Final Payment” is a payment (in addition to and
not a substitution for the regular monthly payments of principal and accrued interest) due on the earliest to occur of (a) the Term Loan Maturity Date, (b) the final payment date of each Term Loan Advance, or (c) the prepayment of the
Term Loan Advances in full pursuant to Section 2.1.2(d) or 2.1.2(e), equal to the original aggregate principal amount of the Term Loan Advances multiplied by the Term Loan Final Payment Percentage. 

“Term Loan Final Payment Percentage” is six and one-half of one
percent (6.50%). 
 “Term Loan Good Faith Deposit” is defined in Section 2.3(g). 

“Term Loan Interest-Only Period” is the period commencing on the first (1st) calendar day of the first (1st)
month following the month in which the Funding Date for such Term Loan Advance occurs and ending on June 1, 2018; provided, however, (a) upon Bank’s receipt of evidence satisfactory to Bank in its sole and reasonable discretion that
Borrower has, after the First Amendment Effective Date, received milestone payments in the aggregate amount of not less than Two Million Dollars ($2,000,000), the Term Loan Interest-Only Period shall automatically be extended to December 1,
2018, and (b) upon the Funding Date of the initial Tranche Two Term Loan Advance, the Term Loan Interest-Only Period shall automatically be extended to June 1, 2019. 

“Term Loan Maturity Date” is June 1, 2021. 

“Tranche One Term Loan Advance” is defined in Section 2.1.2(a). 

“Tranche Two Term Loan Advance” is defined in Section 2.1.2(a). 

“Tranche Two Term Loan Draw Period” means the period commencing June 30, 2018 and ending
September 30, 2018. 
 “Tranche Two Term Loan Milestone” means Bank’s receipt of evidence
reasonably satisfactory to Bank that Borrower has, after the Funding Date of the Tranche One Term Loan Advance, (a) closed milestone or up-front payments in the aggregate amount of not less than Four
Million Dollars ($4,000,000) and (b) secured one new pharmaceutical partnership. 
 3.9    Exhibit
C (Loan Payment/Advance Request Form). The Payment/Advance Form attached to the Loan Agreement as Exhibit C is replaced in its entirety with the Payment/Advance Form attached
hereto as Exhibit C. From and after the date hereof, all references in the Loan Agreement to the Payment/Advance Form shall be deemed to refer to the Payment/Advance Form in the form attached hereto as Exhibit C. 

4.    Limitation of Amendments.  

4.1    The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be
limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have
or may have in the future under or in connection with any Loan Document. 

  
 6 

 4.2    This Amendment shall be construed in connection with and
as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

 4.3    In addition to those Events of Default specifically enumerated in the Loan Documents, the failure to
comply with the terms of any covenant or agreement contained herein shall constitute an Event of Default and shall entitle Bank to exercise all rights and remedies provided to Bank under the terms of any of the other Loan Documents as a result of
the occurrence of the same. 
 5.    Representations and Warranties. To induce Bank to enter into this
Amendment, Borrower hereby represents and warrants to Bank as follows: 
 5.1    Immediately after giving
effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to
an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 

5.2    Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations
under the Loan Agreement, as amended by this Amendment; 
 5.3    The organizational documents of Borrower
delivered to Bank on the First Amendment Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 

5.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations
under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
 5.5    The execution and
delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower,
(b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the
organizational documents of Borrower; 
 5.6    The execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any
governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and 

  
 7 

 5.7    This Amendment has been duly executed and delivered by
Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of
general application and equitable principles relating to or affecting creditors’ rights. 

6.    Integration. This Amendment and the Loan Documents represent the entire agreement about this
subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this
Amendment and the Loan Documents. 
 7.    Counterparts. This Amendment may be executed in any number of
counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 

8.    Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and
delivery to Bank of this Amendment by each party hereto, (b) due execution and delivery to Bank of the Warrant to Purchase Limited Liability Company Common Units dated as of the date hereof by each party thereto (the “2017
Warrant”), (c) Borrower’s payment of the Final Payment, (d) Borrower’s payment of Bank’s legal fees and expenses in connection with the negotiation and preparation of this Amendment and the 2017 Warrant. 

[Signature page follows.] 

  
 8 

 IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered as of the date first written above. 
  

			
	BORROWER:
	
	AVIDITY BIOSCIENCES LLC
		
	By:	 	 /s/ Troy Wilson

		 	Name: Troy Wilson
		 	Title: President and CEO
	
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 /s/ Anthony Flores

		 	Name: Anthony Flores
		 	Title: Director

  
 [Signature Page to First
Amendment to Loan and Security Agreement] 

 SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT 

THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into August 1, 2018, by
and between SILICON VALLEY BANK, a California corporation (“Bank”), and AVIDITY BIOSCIENCES LLC, a Delaware limited liability company (“Borrower”). 

RECITALS 

A.    Bank and Borrower have entered into that certain Loan and Security Agreement dated as of August 7, 2015 (as the
same may from time to time be amended, modified, supplemented or restated, the “Loan Agreement”). 

B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement. 

C.    Borrower has requested that Bank amend the Loan Agreement to make certain revisions to the Loan Agreement as more
fully set forth herein. 
 D.    Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the
extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 

1.    Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to
them in the Loan Agreement. 
 2.    Amendments to Loan Agreement. 

2.1    Tranche Two Term Loan Advance. Notwithstanding Section 2.1.2 of the Loan Agreement to the
contrary, the Tranche Two Term Loan Advance in the aggregate principal amount of up to Two Million Dollars ($2,000,000) is available to Borrower from the date hereof upon Bank’s receipt of evidence satisfactory to Bank in its sole and absolute
discretion that Borrower has received aggregate Gross Proceeds of at least Three Million Dollars ($3,000,000). 

2.2    Section 6.2 (Financial Statements, Reports, Certificates). Section 6.2 of the Loan Agreement is
hereby amended by adding the following clause (i) immediately after clause (h) thereof: 

(i)    Beneficial Ownership Information. A prompt written notice of any changes to the beneficial
ownership information set out in the Beneficial Ownership Information Disclosure Form. Borrower understands and acknowledges that Bank relies on such true, accurate and
up-to-date beneficial ownership information to meet Bank’s regulatory obligations to obtain, verify and record information about the beneficial owners of its legal
entity customers. 

 2.3    Section 6.7 (Financial Covenants). Section 6.7
of the Loan Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 

6.7    Financial Covenants. 

(a)     Milestone Payments and Pharmaceutical Partnership. Provide to Bank by no later than
December 31, 2018 evidence reasonably satisfactory to Bank in its sole and absolute discretion that Borrower has (a) closed milestone or up-front payments in the aggregate amount of not less than
Four Million Dollars ($4,000,000) and (b) secured at least one (1) new pharmaceutical partnership (the “Milestone and Partnership Covenant”). In the event that Borrower fails to comply with the Milestone and Partnership
Covenant, Borrower shall immediately pay to Bank (the “Mandatory Tranche Two Prepayment”) the outstanding principal balance of the Tranche Two Term Loan Advance in the aggregate principal amount of Two Million Dollars ($2,000,000)
plus all accrued and unpaid interest thereon. Borrower’s failure to make the Mandatory Tranche Two Prepayment shall constitute an immediate Event of Default under this Agreement. For purposes of clarification, Borrower’s failure to comply
with the Milestone and Partnership Covenant shall not constitute an immediate Event of Default so long as Borrower immediately makes the Mandatory Tranche Two Prepayment. 

2.4    Section 8.2 (Covenant Default). Section 8.2(a) of the Loan Agreement is hereby amended by
deleting it in its entirety and replacing it with the following: 
 (a)    Borrower fails or neglects to
perform any obligation in Sections 6.2, 6.4, 6.5, 6.6, 6.7, 6.8(b), 6.10 or violates any covenant in Section 7; or 

2.5    Section 13 (Definitions). 

(a)    The following terms and their respective definitions set forth in Section 13.1 of the Loan Agreement are hereby
amended by deleting them in their entirety and replacing them with the following: 
 “Applicable Number” is thirty-six (36); provided, however, (a) on the Funding Date of the initial Tranche Two Term Loan Advance, the Applicable Number shall automatically be reduced to thirty (30), and (b) upon Bank’s
receipt of evidence satisfactory to Bank in its sole and absolute discretion that Borrower has, after the First Amendment Effective Date, satisfied the Milestone and Partnership Covenant, the Applicable Number shall automatically be reduced to
twenty-four (24). 
 “Term Loan Interest-Only Period” is the period commencing on the first (1st) calendar
day of the first (1st) month following the month in which the Funding Date for such Term Loan Advance occurs and ending on June 1, 2018; provided, however, (a) on the Funding Date of the Tranche Two Term Loan Advance in the amount of Two
Million Dollars ($2,000,000) subject to the terms and conditions herein, the Term Loan Interest-Only Period shall automatically be extended to December 1, 2018, and (b) upon 

  
 2 

 
Bank’s receipt of evidence satisfactory to Bank in its sole and reasonable discretion that Borrower has, after the First Amendment Effective Date, satisfied the Milestone and Partnership
Covenant, the Term Loan Interest-Only Period shall automatically be extended to June 1, 2019. 
 (b)    The
following defined terms are hereby added to the list set forth in Section 13.1 of the Loan Agreement in alphabetical order: 

“Financing” means a new bona fide round of equity financing or Subordinated Debt with investors and on terms
satisfactory to Bank in its sole discretion. 
 “Gross Proceeds” means the gross proceeds (in cash) received
by Borrower from a Financing,. 
 2.6    Exhibit B (Compliance Certificate). Exhibit B to the Loan
Agreement is hereby replaced in its entirety with Exhibit B attached hereto. From and after the date hereof, all references in the Loan Agreement to the Compliance Certificate shall be deemed to refer to the Compliance Certificate attached
hereto as Exhibit B. 
 3.    Limitation of Amendments. 

3.1    The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall
be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now
have or may have in the future under or in connection with any Loan Document. 
 3.2    This Amendment shall be
construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall
remain in full force and effect. 
 3.3    In addition to those Events of Default specifically enumerated in the
Loan Documents, the failure to comply with the terms of any covenant or agreement contained herein shall constitute an Event of Default and shall entitle Bank to exercise all rights and remedies provided to Bank under the terms of any of the other
Loan Documents as a result of the occurrence of the same. 
 4.    Representations and Warranties. To
induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows: 

4.1    Immediately after giving effect to this Amendment (a) the representations and warranties contained in
the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and
(b) no Event of Default has occurred and is continuing; 

  
 3 

 4.2    Borrower has the power and authority to execute and
deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 

4.3    The organizational documents of Borrower delivered to Bank on the First Amendment Effective Date remain
true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 

4.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations
under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
 4.5    The execution and
delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower,
(b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the
organizational documents of Borrower; 
 4.6    The execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any
governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and 

4.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower,
enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating
to or affecting creditors’ rights. 
 5.    Integration. This Amendment and the Loan Documents
represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this
Amendment and the Loan Documents merge into this Amendment and the Loan Documents. 
 6.    Counterparts.
This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 

7.    Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery
to Bank of this Amendment by each party hereto, and (b) Borrower’s payment of Bank’s legal fees and expenses in connection with the negotiation and preparation of this Amendment. 

[Signature page follows.] 

  
 4 

 IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered as of the date first written above. 
  

			
	 BORROWER:

	
	AVIDITY BIOSCIENCES LLC
		
	By:	 	/s/ Troy Wilson
	Name:	 	
	Title:	 	

  

			
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	/s/ Kristine Rohmer
	Name:	 	Kristine Rohmer
	Title:	 	Vice President

 [Signature Page to Second Amendment to Loan and Security Agreement] 

 EXHIBIT B 

COMPLIANCE CERTIFICATE 
  

			
	 TO:    SILICON VALLEY BANK
	  	Date:                     

 FROM: AVIDITY BIOSCIENCES LLC 

The undersigned authorized officer of AVIDITY BIOSCIENCES LLC (“Borrower”) certifies that under the terms and conditions of
the Loan and Security Agreement between Borrower and Bank (the “Agreement”): 
 (1) Borrower is in complete compliance
for the period ending                      with all required covenants except as noted below; (2) there are no Events of Default;
(3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and
warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material
respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed
by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits
of which Borrower has not previously provided written notification to Bank. 
 Attached are the required documents supporting the
certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may
be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not
otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under
“Complies” column. 
  

					
	 Reporting Covenants
	  	 Required
	  	 Complies

	 Monthly financial statements with Compliance Certificate
	  	Monthly within 30 days	  	Yes    No
	 Annual financial statement (CPA Audited) + CC
	  	FYE within 180 days	  	Yes    No
	 Financial Projections
	  	FYE within 30 days not later than 7 days after Board approval and more frequently as updated	  	Yes    No

			
	 Financial Covenant
	 	 Complies

	 Borrower has:
	 	
	 (a) Closed milestone or up-front payments in the aggregate
amount of at least $4,000,000 and (b) secured at least 1 new pharmaceutical partnership by December 31, 2018
	 	Yes        No
	 (i) If Borrower fails to meet clause (a), paid unpaid principal with respect to the Tranche Two
Term Loan Advance plus all accrued and unpaid interest thereon
	 	Yes        No

 Other Matters 
  

			
	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries? If yes, provide copies of any such amendments or changes with this
Compliance Certificate.	 	Yes         No

 The following are the exceptions with respect to the certification above: (If no exceptions exist, state
“No exceptions to note.”) 
  
  

 
  
  

									
	AVIDITY BIOSCIENCES LLC	 		 	BANK USE ONLY
					
	By:	 	 	 		 	Received by:	 	 
	Name:	 		 		 		 	AUTHORIZED SIGNER
	Title:	 		 		 	Date:	 	 
					
		 		 		 	Verified:	 	 
		 		 		 		 	AUTHORIZED SIGNER
		 		 		 	Date:	 	 
				
		 		 		 	Compliance Status:  Yes    No

 THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT 

THIS THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into December 27, 2018,
by and between SILICON VALLEY BANK, a California corporation (“Bank”), and AVIDITY BIOSCIENCES LLC, a Delaware limited liability company (“Borrower”). 

RECITALS 

A.    Bank and Borrower have entered into that certain Loan and Security Agreement dated as of August 7, 2015 (as the
same may from time to time be amended, modified, supplemented or restated, the “Loan Agreement”). 

B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement. 

C.    Borrower has requested that Bank amend the Loan Agreement to make certain revisions to the Loan Agreement as more
fully set forth herein. 
 D.    Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the
extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 

1.    Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to
them in the Loan Agreement. 
 2.    Amendments to Loan Agreement. 

2.1    Section 6.7 (Financial Covenants). Section 6.7 of the Loan Agreement is hereby amended by
deleting the first sentence thereof in its entirety and replacing it with the following: 
 Provide to Bank by no later than
January 31, 2019 evidence reasonably satisfactory to Bank in its sole and absolute discretion that Borrower has (a) closed milestone or up-front payments in the aggregate amount of not less than Four
Million Dollars ($4,000,000) and (b) secured at least one (1) new pharmaceutical partnership (the “Milestone and Partnership Covenant”). 

2.2    Exhibit B (Compliance Certificate). Exhibit B to the Loan Agreement is hereby replaced in its
entirety with Exhibit B attached hereto. From and after the date hereof, all references in the Loan Agreement to the Compliance Certificate shall be deemed to refer to the Compliance Certificate attached hereto as Exhibit B. 

 3.    Limitation of Amendments. 

3.1    The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall
be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now
have or may have in the future under or in connection with any Loan Document. 
 3.2    This Amendment shall be
construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall
remain in full force and effect. 
 3.3    In addition to those Events of Default specifically enumerated in the
Loan Documents, the failure to comply with the terms of any covenant or agreement contained herein shall constitute an Event of Default and shall entitle Bank to exercise all rights and remedies provided to Bank under the terms of any of the other
Loan Documents as a result of the occurrence of the same. 
 4.    Representations and Warranties. To
induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows: 

4.1    Immediately after giving effect to this Amendment (a) the representations and warranties contained in
the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and
(b) no Event of Default has occurred and is continuing; 
 4.2    Borrower has the power and authority to
execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 

4.3    The organizational documents of Borrower delivered to Bank on the First Amendment Effective Date remain
true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 

4.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations
under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
 4.5    The execution and
delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower,
(b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the
organizational documents of Borrower; 

  
 9 

 4.6    The execution and delivery by Borrower of this Amendment
and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption
by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and 

4.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower,
enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating
to or affecting creditors’ rights. 
 5.    Integration. This Amendment and the Loan Documents
represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this
Amendment and the Loan Documents merge into this Amendment and the Loan Documents. 
 6.    Counterparts.
This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 

7.    Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery
to Bank of this Amendment by each party hereto, and (b) Borrower’s payment of Bank’s legal fees and expenses in connection with the negotiation and preparation of this Amendment. 

[Signature page follows.] 

  
 10 

 IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered as of the date first written above. 
 BORROWER: 

AVIDITY BIOSCIENCES LLC 
  

			
	By:	 	 /s/ Troy Wilson

	Name:	 	
	Title:	 	

  

			
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 /s/ Kristine Rohmer

	Name:	 	Kristine Rohmer
	Title:	 	Vice President

 [Signature Page to Third Amendment to Loan and Security Agreement] 

 EXHIBIT B 

COMPLIANCE CERTIFICATE 

TO:    SILICON VALLEY
BANK                                         
                                         
                                      Date:
                     

FROM:    AVIDITY BIOSCIENCES LLC 

The undersigned authorized officer of AVIDITY BIOSCIENCES LLC (“Borrower”) certifies that under the terms and conditions of
the Loan and Security Agreement between Borrower and Bank (the “Agreement”): 
 (1) Borrower is in complete compliance
for the period ending                          with all required covenants except as noted below; (2) there are no
Events of Default; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in
all material respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and
contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee
payroll or benefits of which Borrower has not previously provided written notification to Bank. 
 Attached are the required documents
supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no
borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used
but not otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under
“Complies” column. 
  

					
	 Reporting Covenants
	  	 Required
	  	 Complies

	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No
	Annual financial statement (CPA Audited) + CC	  	FYE within 180 days	  	Yes    No
	Financial Projections	  	FYE within 30 days not later than 7 days after Board approval and more frequently as updated	  	Yes    No

					
	 Financial Covenant
	  	 Complies
	 
	 Borrower has:
	  			
	 (a) Closed milestone or up-front payments in the aggregate
amount of at least $4,000,000 and (b) secured at least 1 new pharmaceutical partnership by January 31, 2019
	  	 	Yes    No	 
	 (i) If Borrower fails to meet clause (a), paid unpaid principal with respect to the Tranche Two
Term Loan Advance plus all accrued and unpaid interest thereon
	  	 	Yes    No	 

  

					
	 Other Matters
	  		  	
			
	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries? If yes, provide copies of any such amendments or changes with this
Compliance Certificate.	  	Yes	  	No

 The following are the exceptions with respect to the certification above: (If no exceptions exist, state
“No exceptions to note.”) 
  
  

 
  
  

									
	AVIDITY BIOSCIENCES LLC	 		 	BANK USE ONLY
					
	By:	 	
                     
                            
	 		 	Received by:	 	
                     
                        

	Name:	 		 		 		 	AUTHORIZED SIGNER
	Title:	 		 		 	Date:	 	
                     
                        

					
		 		 		 	Verified:	 	
                     
                        

		 		 		 		 	AUTHORIZED SIGNER
		 		 		 	Date:	 	
                     
                        

				
		 		 		 	Compliance Status:    Yes    No

 DEFAULT WAIVER AND FOURTH AMENDMENT 

TO LOAN AND SECURITY AGREEMENT 

THIS DEFAULT WAIVER AND FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered
into February 25, 2019, by and between SILICON VALLEY BANK, a California corporation (“Bank”), and AVIDITY BIOSCIENCES LLC, a Delaware limited liability company (“Borrower”). 

RECITALS 

A.    Bank and Borrower have entered into that certain Loan and Security Agreement dated as of August 7, 2015 (as the
same may from time to time be amended, modified, supplemented or restated, the “Loan Agreement”). 

B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement. 

C.    Borrower is currently in default of the Loan Agreement for failing to comply with the Mandatory Tranche Two
Prepayment covenant set forth in Section 6.7(a) of the Loan Agreement (the “Existing Default”). 

D.    Borrower has requested that Bank waive the Existing Default and amend the Loan Agreement to make certain revisions
to the Loan Agreement as more fully set forth herein. 
 E.    Bank has agreed to waive the Existing Default and so
amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 

1.    Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to
them in the Loan Agreement. 
 2.    Waiver of Existing Default. Borrower acknowledges and agrees that
unless the Existing Default is waived by Bank, such Existing Default would constitute an Event of Default under the Loan Documents. Bank hereby waives the Existing Default and waives any right and remedies against Borrower under the Loan Documents
solely with respect to the Existing Default. Bank’s agreement to waive the Existing Default shall in no way obligate Bank to make any other modifications to the Loan Agreement or to waive Borrower’s compliance with any other terms of the
Loan Documents, and shall not limit or impair Bank’s right to demand strict performance of all other terms and covenants of the Loan Agreement or any of the Loan Documents as of any date. The waiver set forth above shall not be deemed or
otherwise construed to constitute a waiver of any other provisions of the Loan Agreement or any of the Loan Documents in connection with any other transaction. 

 3.    Amendments to Loan Agreement. 

3.1    Section 6.7 (Financial Covenants). 

(a)    Section 6.7 of the Loan Agreement is hereby amended by deleting the first sentence thereof in its entirety and
replacing it with the following: 
 Provide to Bank, evidence reasonably satisfactory to Bank, in its sole and absolute discretion, by no
later than (a) February 28, 2019, that Borrower has signed a definitive agreement for the Milestone Payments and Pharmaceutical Partnership Transaction and (b) April 15, 2019, that the Milestone Payments and Pharmaceutical
Partnership Transaction has closed and Borrower has received all funds due to Borrower upon the closing of the Milestone Payments and Pharmaceutical Partnership Transaction (the “Milestone and Partnership Covenant”). 

(b)    Section 6.7 of the Loan Agreement is hereby amended by adding the following clause (b) immediately after
clause (a) thereof: 
 (b)    Minimum Liquidity. Maintain at all times, through and
including the date on which Borrower satisfies the Milestone and Partnership Covenant, unrestricted and unencumbered (other than Liens in favor of Bank or Bank’s Affiliates) cash with Bank of at least Two Million Dollars ($2,000,000). 

3.2    Section 13 (Definitions). The following defined term is hereby added to Section 13.1 of the Loan
Agreement in alphabetical order: 
 “Milestone Payments and Pharmaceutical Partnership Transaction” means
(a) milestone or up-front payments in the aggregate amount of not less than Four Million Dollars ($4,000,000) and (b) securing at least one (1) new pharmaceutical partnership. 

3.3    Exhibit B (Compliance Certificate). Exhibit B to the Loan Agreement is hereby replaced in its
entirety with Exhibit B attached hereto. From and after the date hereof, all references in the Loan Agreement to the Compliance Certificate shall be deemed to refer to the Compliance Certificate attached hereto as Exhibit B. 

4.    Limitation of Waiver and Amendments. 

4.1    The waiver and amendments set forth in Section 2, above, are effective for the purposes set forth herein
and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank
may now have or may have in the future under or in connection with any Loan Document. 
 4.2    This Amendment
shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and
shall remain in full force and effect. 

  
 15 

 4.3    In addition to those Events of Default specifically
enumerated in the Loan Documents, the failure to comply with the terms of any covenant or agreement contained herein shall constitute an Event of Default and shall entitle Bank to exercise all rights and remedies provided to Bank under the terms of
any of the other Loan Documents as a result of the occurrence of the same. 
 5.    Representations and
Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows: 

5.1    Immediately after giving effect to this Amendment (a) the representations and warranties contained in
the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and
(b) no Event of Default (other than the Existing Default) has occurred and is continuing; 
 5.2    Borrower
has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 

5.3    The organizational documents of Borrower delivered to Bank on the First Amendment Effective Date remain
true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 

5.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations
under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
 5.5    The execution and
delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower,
(b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the
organizational documents of Borrower; 
 5.6    The execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any
governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and 

5.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower,
enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating
to or affecting creditors’ rights. 

  
 16 

 6.    Integration. This Amendment and the Loan Documents
represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this
Amendment and the Loan Documents merge into this Amendment and the Loan Documents. 
 7.    Counterparts.
This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 

8.    Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery
to Bank of this Amendment by each party hereto and (b) Borrower’s payment of Bank’s legal fees and expenses in connection with the negotiation and preparation of this Amendment. 

[Signature page follows.] 

  
 17 

 IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered as of the date first written above. 
  

			
	BORROWER:
	
	AVIDITY BIOSCIENCES LLC
		
	By:	 	 /s/ Troy Wilson

		 	Name: Troy Wilson
		 	Title: President & CEO
	
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 /s/ Kristine Rohmer

		 	Name: Kristine Rohmer
		 	Title: Vice President

 [Signature Page to Default Waiver and Fourth Amendment to Loan and Security Agreement] 

 EXHIBIT B 

COMPLIANCE CERTIFICATE 

TO:      SILICON VALLEY
BANK                                         
                                         
                              Date:
                             

FROM: AVIDITY BIOSCIENCES LLC 

The undersigned authorized officer of AVIDITY BIOSCIENCES LLC (“Borrower”) certifies that under the terms and conditions of
the Loan and Security Agreement between Borrower and Bank (the “Agreement”): 
 (1) Borrower is in complete compliance
for the period ending                                  with all required covenants
except as noted below; (2) there are no Events of Default; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality
qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date
shall be true, accurate and complete in all material respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local
taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its
Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank. 

Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP
consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance
with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 

Please indicate compliance status by circling Yes/No under “Complies” column. 

 

					
	 Reporting Covenants
	  	 Required
	  	 Complies

	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No
	Annual financial statement (CPA Audited) + CC	  	FYE within 180 days	  	Yes    No
	Financial Projections	  	FYE within 30 days not later than 7 days after Board approval and more frequently as updated	  	Yes    No

 [Signature Page to Default Waiver and Fourth Amendment to Loan and Security Agreement] 

													
	 Financial Covenants
	  	Required	 	  	Actual	 	  	Complies	 
	 Borrower has:
	  				  				  			
	 Definitive agreement by February 28, 2019 and closed and funded by April 15, 2019 for: (a) milestone or up-front payments in the aggregate amount of at least $4,000,000 and (b) securing at least 1 new pharmaceutical partnership
	  				  				  	 	Yes    No	 
	 (i) If Borrower fails to meet clause (a), paid unpaid principal with respect to the Tranche Two Term Loan Advance plus
all accrued and unpaid interest thereon
	  				  				  	 	Yes    No	 
	Borrower maintains at all times through and including the date on which Borrower satisfies the Milestone and Partnership Covenant:	  				  				  			
	 Unrestricted and unencumbered cash at Bank
	  	3	$2,000,000	 	  	$	                     	 	  	 	Yes    No	 

  

					
	 Other Matters
	  		  	
			
	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries? If yes, provide copies of any such amendments or changes with this
Compliance Certificate.	  	Yes	  	No

 The following are the exceptions with respect to the certification above: (If no exceptions exist, state
“No exceptions to note.”) 

					
	
	 
	 

  

					
	        AVIDITY BIOSCIENCES LLC	 	BANK USE ONLY
		
		 	Received by:
                                         
               
	        By:
                                         
                   	 		 	                         AUTHORIZED SIGNER
	         Name:

        Title:
	 	Date:
                                         
                           
		
		 	Verified:
                                         
                   
		 		 	                         AUTHORIZED SIGNER
		
		 	Date:
                                         
                           
		
		 	Compliance Status:    Yes    No

 DEFAULT WAIVER AND FIFTH AMENDMENT 

TO LOAN AND SECURITY AGREEMENT 

THIS DEFAULT WAIVER AND FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered
into April 12, 2019, by and between SILICON VALLEY BANK, a California corporation (“Bank”), and AVIDITY BIOSCIENCES, INC. (formerly known as AVIDITY BIOSCIENCES LLC), a Delaware corporation (“Borrower”). 

RECITALS 

A.    Bank and Borrower have entered into that certain Loan and Security Agreement dated as of August 7, 2015 (as the
same may from time to time be amended, modified, supplemented or restated, the “Loan Agreement”). 

B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement. 

C.    Borrower is currently in default of the Loan Agreement for failing to comply with the Milestone and Partnership
Covenant set forth in Section 6.7 of the Loan Agreement (the “Existing Default”). 

D.    Borrower has requested that Bank waive the Existing Default and amend the Loan Agreement to make certain revisions
to the Loan Agreement as more fully set forth herein. 
 E.    Bank has agreed to waive the Existing Default and so
amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 

1.    Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to
them in the Loan Agreement. 
 2.    Waiver of Existing Default. Borrower acknowledges and agrees that
unless the Existing Default is waived by Bank, such Existing Default would constitute an Event of Default under the Loan Documents. Bank hereby waives the Existing Default and waives any right and remedies against Borrower under the Loan Documents
solely with respect to the Existing Default. Bank’s agreement to waive the Existing Default shall in no way obligate Bank to make any other modifications to the Loan Agreement or to waive Borrower’s compliance with any other terms of the
Loan Documents, and shall not limit or impair Bank’s right to demand strict performance of all other terms and covenants of the Loan Agreement or any of the Loan Documents as of any date. The waiver set forth above shall not be deemed or
otherwise construed to constitute a waiver of any other provisions of the Loan Agreement or any of the Loan Documents in connection with any other transaction. 

 3.    Amendments to Loan Agreement. 

3.1    Section 6.7 (Financial Covenants). 

(a)    Section 6.7(a) of the Loan Agreement is hereby amended by deleting it in its entirety and replacing it with the
following: 
 (a)    Milestone Payments and Pharmaceutical Partnership. Provide to Bank evidence
reasonably satisfactory to Bank, in its sole and absolute discretion, by no later than April 30, 2019, that (a) Borrower has signed a definitive agreement for the Milestone Payments and Pharmaceutical Partnership Transaction and
(b) the Milestone Payments and Pharmaceutical Partnership Transaction has closed and Borrower has received all funds due to Borrower upon the closing of the Milestone Payments and Pharmaceutical Partnership Transaction (the “Milestone
and Partnership Covenant”). In the event that Borrower fails to comply with the Milestone and Partnership Covenant, Bank shall apply the funds in the Pledged Account to the outstanding principal balance of the Tranche Two Term Loan Advance
plus all accrued and unpaid interest thereon and the Term Loan Final Payment (the “Mandatory Tranche Two Prepayment”). Borrower’s failure to make the Mandatory Tranche Two Prepayment shall constitute an immediate Event of
Default under this Agreement. For purposes of clarification, Borrower’s failure to comply with the Milestone and Partnership Covenant shall not constitute an immediate Event of Default so long as Borrower immediately makes the Mandatory Tranche
Two Prepayment. 
 (b)    Section 6.7(b) of the Loan Agreement is hereby amended by deleting it in its entirety and
replacing it with the following: 
 (b)    Pledged Account. Maintain, at all times through and
including the date on which Borrower satisfies the Cash Pledge Release Milestone, unrestricted funds in the Pledged Account of at least the Minimum Pledged Account Value. 

3.2    Section 13 (Definitions). 

(a)    The following defined term set forth in Section 13.1 of the Loan Agreement is hereby amended by deleting it in
its entirety and replacing it with the following: 
 “Loan Documents” are, collectively, this Agreement and
any schedules, exhibits, certificates, notices, and any other documents related to this Agreement, the Warrant, the Cash Pledge Agreement, any Bank Services Agreement, any subordination agreement, any note, or notes or guaranties executed by
Borrower or any guarantor, and any other present or future agreement by Borrower and/or any guarantor with or for the benefit of Bank in connection with this Agreement or Bank Services, all as amended, restated, or otherwise modified. 

  
 22 

 (b)    The following defined terms are hereby added to Section 13.1
of the Loan Agreement in alphabetical order: 
 “Cash Pledge Agreement” is that certain Bank Services Cash
Pledge Agreement between Bank and Borrower dated as of April         , 2019 with respect to the Pledged Account, as the same may from time to time be amended, modified, supplemented or restated.

 “Cash Pledge Release Milestone” is Bank’s receipt of evidence reasonably satisfactory to Bank, in
its sole and absolute discretion, that the Milestone Payments and Pharmaceutical Partnership Transaction has closed and Borrower has received all funds due to Borrower upon the closing of the Milestone Payments and Pharmaceutical Partnership
Transaction. 
 “Minimum Pledged Account Value” means One Million Eight Hundred Sixty-Three Thousand Three
Hundred Thirty-Three Dollars and Thirty-Two Cents ($1,863,333.32). 

“Pledged Account” is the multicurrency account denominated in Dollars, account number (last 4 digits only),
maintained by Borrower with Bank and pledged to Bank pursuant to the Cash Pledge Agreement to secure the payment and performance in full of all of the Obligations, together with any successor to such account, irrespective of whether the successor
account bears a different name or account number and including any account to which the assets contained in the Pledged Account have been transferred. 

3.3    Release of Cash Pledge Agreement. Provided that no Event of Default has occurred and is continuing,
if Borrower achieves the Cash Pledge Release Milestone, Bank will, at Borrower’s sole cost and expense, promptly release Bank’s security interest in the Pledged Account and terminate the Cash Pledge Agreement. 

3.4    Exhibit B (Compliance Certificate). Exhibit B to the Loan Agreement is hereby replaced in its
entirety with Exhibit B attached hereto. From and after the date hereof, all references in the Loan Agreement to the Compliance Certificate shall be deemed to refer to the Compliance Certificate attached hereto as Exhibit B. 

4.    Limitation of Waiver and Amendments. 

4.1    The waiver and amendments set forth in Sections 2 and 3, above, are effective for the purposes set
forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy
which Bank may now have or may have in the future under or in connection with any Loan Document. 
 4.2    This
Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and
confirmed and shall remain in full force and effect. 
 4.3    In addition to those Events of Default
specifically enumerated in the Loan Documents, the failure to comply with the terms of any covenant or agreement contained herein shall constitute an Event of Default and shall entitle Bank to exercise all rights and remedies provided to Bank under
the terms of any of the other Loan Documents as a result of the occurrence of the same. 

  
 23 

 5.    Representations and Warranties. To induce Bank to
enter into this Amendment, Borrower hereby represents and warrants to Bank as follows: 
 5.1    Immediately
after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and
warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default (other than the Existing Default) has occurred and is continuing; 

5.2    Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations
under the Loan Agreement, as amended by this Amendment; 
 5.3    The organizational documents of Borrower
delivered to Bank on the First Amendment Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 

5.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations
under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
 5.5    The execution and
delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower,
(b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the
organizational documents of Borrower; 
 5.6    The execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any
governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and 

5.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower,
enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating
to or affecting creditors’ rights. 
 6.    Integration. This Amendment and the Loan Documents
represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this
Amendment and the Loan Documents merge into this Amendment and the Loan Documents. 

  
 24 

 7.    Counterparts. This Amendment may be executed in any
number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 

8.    Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery
to Bank of this Amendment by each party hereto, (b) the due execution and delivery to Bank of the Cash Pledge Agreement by each party thereto, and (c) Borrower’s payment of Bank’s legal fees and expenses in connection with the
negotiation and preparation of this Amendment. 
 [Signature page follows.] 

  
 25 

 IN WITNESS WHEREOF, the parties hereto
have caused this Amendment to be duly executed and delivered as of the date first written above. 
 BORROWER: 

AVIDITY BIOSCIENCES, INC. 
  

			
	By:	 	 /s/ Troy Wilson

	Name:	 	
	Title:	 	
	
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 /s/ Kristine Rohmer

	Name:	 	Kristine Rohmer
	Title:	 	Vice President

 [Signature Page to Default Waiver and Fifth Amendment to Loan and Security Agreement] 

 EXHIBIT B 

COMPLIANCE CERTIFICATE 

TO:      SILICON VALLEY
BANK                                         
                                         
                                  Date:
                         

FROM: AVIDITY BIOSCIENCES, INC. 

The undersigned authorized officer of AVIDITY BIOSCIENCES, INC. (“Borrower”) certifies that under the terms and conditions of
the Loan and Security Agreement between Borrower and Bank (the “Agreement”): 
 (1) Borrower is in complete compliance
for the period ending                          with all required covenants except as noted below; (2) there are no
Events of Default; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in
all material respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and
contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee
payroll or benefits of which Borrower has not previously provided written notification to Bank. 
 Attached are the required documents
supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no
borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used
but not otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance
status by circling Yes/No under “Complies” column. 
  

					
	 Reporting Covenants
	  	 Required
	  	 Complies

	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No
	Annual financial statement (CPA Audited) + CC	  	FYE within 180 days	  	Yes    No
	Financial Projections	  	FYE within 30 days not later than 7 days after Board approval and more frequently as updated	  	Yes    No

													
	 Financial Covenants
	  	Required	 	  	Actual	 	  	Complies	 
	 Borrower has:
	  				  				  			
	 Definitive agreement and closed and funded by April 30, 2019 for: (a) milestone or up-front payments in the aggregate amount of at least $4,000,000 and (b) securing at least 1 new pharmaceutical partnership
	  				  				  	 	Yes    No	 
	 (i) If Borrower fails to meet clause (a), applied the amount of funds in the Pledged Account to the unpaid principal
with respect to the Tranche Two Term Loan Advance plus all accrued and unpaid interest thereon and the Term Loan Final Payment
	  				  				  	 	Yes    No	 
	Maintain minimum cash in the Pledged Account through and including the date Borrower satisfies the Cash Pledge Release Milestone	  	3	$1,863,333.32	 	  	$	                     	 	  			

  

					
	 Other Matters
	  		  	
			
	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries? If yes, provide copies of any such amendments or changes with this
Compliance Certificate.	  	Yes	  	No

 The following are the exceptions with respect to the certification above: (If no exceptions exist, state
“No exceptions to note.”) 

					
	
	 
	 

  

					
	        AVIDITY BIOSCIENCES, INC.	 	BANK USE ONLY
		
		 	Received by:
                                         
               
	        By:
                                         
                   	 		 	                         AUTHORIZED SIGNER
	         Name:

        Title:
	 	Date:
                                         
                           
		
		 	Verified:
                                         
                   
		 		 	                         AUTHORIZED SIGNER
		
		 	Date:
                                         
                           
		
		 	Compliance Status:    Yes    No

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