Document:

ex10-2.htm

Exhibit 10.2

 

SEPARATION AGREEMENT
AND GENERAL RELEASE

 

This Separation Agreement and General Release (“Agreement”) is executed on the dates set forth on the signature page by and between LRAD Corporation (“Company”), whose principal business address is 16990 Goldentop Road, Suite A, San Diego, California 92127, and Thomas R. Brown (“Executive”).

 

WHEREAS, Executive is employed by the Company as President and Chief Executive Officer; 

 

WHEREAS, Executive and the Company’s Board of Directors (the “Board”) have determined that it is in the best interest of the Company that Executive resign from his position as President and Chief Executive Officer of the Company, effective as of June 30, 2016 (such date, the “Resignation Date”); 

 

WHEREAS, Executive and the Board have determined that it is in the best interest of the Company that from the Resignation Date and during the “Transition Period” (as defined in this Agreement), Executive continue to provide transitional and consulting services to the Company on the terms and subject to the conditions set forth in this Agreement; 

 

WHEREAS, the Company has offered to provide Executive with separation pay and other consideration in exchange for the promises, covenants and other consideration to be provided by Executive as set forth herein, in accordance with the terms hereof; and

 

WHEREAS, Executive is willing to accept such consideration to be provided to him in exchange for the promises, covenants and other consideration set forth herein, in accordance with the terms hereof.

 

NOW, THEREFORE, in consideration of the promises, covenants and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Resignation; Termination of Employment. Predicated upon the agreements between the Board and Executive as set forth herein, Executive has submitted to the Company his resignation from his position as President and Chief Executive Officer of the Company and as an officer, director and employee of the Company and its subsidiaries and affiliates, whereby he has notified the Company that he will resign from such positions effective as of the Resignation Date. The Company has accepted his resignation effective as of the Resignation Date. Executive will continue to serve as President and Chief Executive Officer of the Company and as a director on the Board through the Resignation Date. Executive will continue to diligently pursue the responsibilities of the President and Chief Executive Officer in substantially the same manner as he has in the past as long as he remains in such position, and shall continue to diligently serve in his capacity as a member of the Board in the same manner as he has in the past. On the Resignation Date, Executive shall execute and deliver any additional written documents reasonably requested by the Company necessary to effectuate his resignation as President and Chief Executive Officer of the Company and as a director on the Board and as an officer, director and employee of each subsidiary of the Company. On the Resignation Date, Executive’s employment with the Company and its subsidiaries and affiliates shall automatically, and without further action, terminate (the “Termination”). 

 

 

 

 

  

2.             Payment of Salary and Benefits through the Resignation Date and Unpaid Accrued Vacation and Statutory Payments. From the date hereof through the Resignation Date, the Company will pay Executive his regular salary in accordance with the Company’s regular payroll practices and all benefits to which he is eligible on the date hereof shall continue to accrue on the same terms. All unpaid accrued vacation leave owed to him through the Resignation Date and other benefits to which Executive is statutorily entitled, if any, shall be paid to Executive on the Resignation Date. Executive shall submit any expenses for reimbursement incurred by Executive on or before the Resignation Date no later than 60 days after the Resignation Date. Executive’s participation in the Company’s 401(k) plan, and his eligibility to receive the Company’s standard matching contributions shall continue through the Resignation Date to the extent permitted by the terms of the 401(k) plan and applicable law. Except as expressly provided in this Agreement, Executive’s entitlement, participation in, and accrual of, all other salary, compensation or benefits from the Company will cease as of the Resignation Date, except that Executive will have such rights in such benefits as are required by law and plan documents, including without limitation, Executive’s vested benefits in the Company’s 401(k) plan, in accordance with and to the extent permitted by law and plan documents.

 

3.              Transition and Consulting Services. From the Resignation Date until December 31, 2016 or such earlier date as the Company notifies Executive in writing that such services are no longer needed (the “Separation Date”), Executive will perform such transitional and consulting services as the Company may reasonably request (the “Services”). As compensation for Executive providing the Services, Executive will receive the payments set forth in Section 4 below and three-hundred dollars ($300) per hour. The Services will generally be performed at such locations as are reasonably agreed by Executive and the Company in good faith; provided, that, Executive will perform the Services on the premises of the Company (or its applicable affiliate) when reasonably requested by the Company. The relationship between Executive and the Company from the Resignation Date to the Separation Date (the “Transition Period”) will be that of an independent contractor and consultant. With the prior written approval of the Company, Executive shall be reimbursed for reasonable out-of-pocket expenses incurred by Executive in the performance of the Services, subject to prompt submission of supporting documentation and otherwise in accordance with the Company’s reimbursement policies as in effect from time to time.

 

4.              Payments and Benefits. In full satisfaction of the Company’s obligations to Executive in respect of Executive’s Termination, and in consideration of Executive’s execution of this Agreement and the release contained herein, and Executive’s other continuing obligations under this Agreement and as additional consideration for Executive providing the Services, the Company will provide to Executive the payments and benefits set forth in this Section 4. Except as provided in this Agreement, Executive will be entitled to no compensation or benefits from the Company or its affiliates with respect to Executive’s Termination, the Services, or Executive’s other continuing obligations under this Agreement.

 

4.1.     Executive’s Participation in Bonus Plan. Notwithstanding anything to the contrary in the Company’s 2016 incentive bonus plan, as approved by the Compensation Committee of the Board on October 16, 2015 (the “Bonus Plan”), Executive is entitled to participate fully in the Bonus Plan, and any amount owed to Executive under the Bonus Plan will be paid to Executive in accordance with the terms of the Bonus Plan; provided that such participation will be based on Executive’s annual base salary immediately prior to the Resignation Date. 

 

4.2.     Health Insurance Benefits. Executive and Executive’s dependents may continue to participate in the Company’s group health plans through the Resignation Date in accordance with their terms and conditions. During the Transition Period, Executive will continue to participate in the Company’s group health plan as permitted by the terms of the group health plan and applicable law. If Executive is not entitled to participate in the Company’s group health plan following the Resignation Date, and if Executive properly and timely elects to continue health coverage, Executive will be eligible to continue medical benefits coverage for himself and his dependents pursuant to the federal Consolidated Omnibus Budget Reconciliation Act and any applicable state COBRA-like statute that provides mandated eligibility for group health continuation coverage (collectively, “COBRA”) until the date that is twenty-four (24) months following the Resignation Date, and the Company will pay or reimburse Executive’s health insurance premiums under COBRA during such period of time; provided, that, (i) to the extent such continuation would adversely affect the tax status of the plan pursuant to which the coverage is provided or result in taxability of benefits or penalties (including without limitation, pursuant to Section 2716 of the Public Health Service Act, the Patient Protection and Affordable Care Act, or Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) or (ii) if the Company is otherwise unable to continue to provide such continuation pursuant to its group health plan, then, in each case, this provision shall terminate and an amount equal to each remaining Company premium payment shall thereafter be paid to Executive, as taxable income, in substantially equal monthly installments over such twenty-four (24) month period (or remaining portion thereof). Notwithstanding anything to the contrary in this Section 4.2, if Executive becomes employed with another employer during such period and is eligible for comparable healthcare coverage under another employer-provided plan (as determined in the good faith discretion of the Company), the Company shall not be obligated to continue to provide the payment or reimbursement pursuant to this Section 4.2.

 

 

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4.3.     Additional Consideration. The Company will pay to Executive, in a lump sum payment, payable on the Resignation Date, an amount equal to $566,500 (which is equal to two (2) years’ salary at the rate Executive was being paid at the Resignation Date) less applicable tax withholding and other deductions.

 

4.4.     Stock Options. On the Separation Date, the vesting and exercisability of all of Executive’s outstanding options to purchase the Company’s common stock issued pursuant to any equity incentive plan of the Company will be accelerated such that the options will be fully vested as of the Separation Date, and shall remain exercisable pursuant to the terms thereof until either (i) the twenty-four (24) month anniversary of the Separation Date, or (ii) the stated expiration date of the applicable option, whichever is earlier in time, at which time all of Executive’s unexercised options will expire and terminate. Notwithstanding the foregoing, this Section 4.5 shall not apply to stock awards issued under or held in any plan sponsored by the Company that is intended to be qualified under Section 401(a) of the Code. 

 

5.             Independent Contractor. The Company and Executive acknowledge and agree that Executive’s status during the Transition Period will be that of an independent contractor only and not an employee, agent, partner, or joint venturer of or with the Company or its affiliates. Executive acknowledges that Executive is and will be solely responsible for the payment of all federal, state, local, and foreign taxes that are required by applicable laws or regulations to be paid with respect to all compensation and benefits payable or provided for the Services hereunder.

 

6.             Release of All Claims by Executive. 

 

6.1.     In consideration of the payments and benefits provided to Executive under this Agreement, which Executive acknowledges he is not otherwise entitled to receive, Executive hereby generally and completely releases the Company and its current and former directors, officers, employees, stockholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates and assigns (collectively, the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct or omissions occurring prior to or on the Effective Date (collectively, the “Released Claims”). The Released Claims include, but are not limited to: (a) all claims arising out of or in any way related to Executive’s employment with the Company, or the termination of that employment; (b) all claims related to Executive’s compensation or benefits from the Company including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options or any other ownership interests in the Company; (c) all claims for breach of contract, wrongful termination and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including claims for fraud, defamation, emotional distress and discharge in violation of public policy; and (e) all federal, state and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (the “ADEA”), the California Labor Code, and the California Fair Employment and Housing Act (as amended). Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded Claims”): (i) any rights or claims for indemnification Executive may have pursuant to any written indemnification agreement with the Company to which Executive is a party, the charter, bylaws or operating agreements of the Company, or under applicable law; (ii) any rights that are not waivable as a matter of law; or (iii) any claims arising from the Company’s breach of this Agreement. In addition, nothing in this Release prevents Executive from filing, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission, the Department of Labor, or the California Department of Fair Employment and Housing, except that Executive hereby waives his right to any monetary benefits in connection with any such claim, charge or proceeding. Executive hereby represents and warrants that, other than the Excluded Claims, Executive is not aware of any claims he has or might have against any of the Released Parties that are not included in the Released Claims. 

 

 

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6.2.     Executive acknowledges that he is knowingly and voluntarily waiving and releasing any rights he may have under the ADEA (“ADEA Waiver”). Executive also acknowledges that the consideration given for the ADEA Waiver is in addition to anything of value to which he was already entitled. Executive is advised by this writing, as required by the ADEA, that: (a) his waiver and release do not apply to any claims that may arise after he signs this Agreement; (b) Executive should consult with an attorney prior to executing this release; (c) Executive has 21 days within which to consider this release (although Executive may choose to voluntarily execute this release earlier); (d) Executive has 7 days following the execution of this release to revoke this Agreement (in a written revocation directed to the Chairman of the Board); and (e) this Agreement will not be effective until the eighth day after Executive signs this Agreement, provided Executive has not earlier revoked this Agreement (the “Effective Date”). Executive will not be entitled to receive any of the benefits specified by this Agreement unless and until this Agreement becomes effective.

 

6.3.     In granting the release herein, which includes claims that may be unknown to Executive at present, Executive acknowledges that he has read and understands Section 1542 of the California Civil Code: “A general release does not extend to claims that the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” Executive hereby expressly waives and relinquishes all rights and benefits under that section and any law or legal principle of similar effect in any jurisdiction with respect to the releases granted herein, including but not limited to the release of unknown and unsuspected claims granted in this Agreement.

 

7.             Publicity; SEC Filing. The Company shall provide Executive with the opportunity to review and provide reasonable comments on any Form 8-K or press release issued by the Company reporting Executive’s separation from the Company. The parties acknowledge and agree that this Agreement will be publicly filed with the SEC. 

 

8.             Covenant Not to Disclose Confidential or Proprietary Information.

 

8.1.     Executive acknowledges that the Company’s business is highly competitive and that the Company’s books, records and documents, technical information concerning its products, finances, marketing, business planning, customers and business associates all comprise confidential business information and trade secrets of the Company (collectively, “Confidential Information”) which are valuable, special and unique assets of the Company and which the Company uses in its business to obtain a competitive advantage over the Company’s competitors that do not know or use this information. Executive further acknowledges having had access to such Confidential Information and that protection of the Confidential Information against unauthorized disclosure and use is of critical importance to the Company in maintaining its competitive position. Accordingly, Executive hereby agrees that, in further consideration for the additional consideration described above, Executive will not, at any time, make any unauthorized disclosure of any Confidential Information or make any use thereof, except for the benefit and on behalf of the Company and only with written authorization of the Company. 

 

 

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8.2.     All written materials, records and other documents, in any format or medium, that were made by, or came into the possession of, Executive during the period of his employment by the Company which contain or disclose Confidential Information are and remain the property of the Company. Executive agrees to return to the Company the same, and all copies, derivatives and extracts thereof as of the Resignation Date, or destroy such documents at Executive’s option if discovered after the Resignation Date.

 

9.             Intellectual Property Ownership. Executive has no rights to any of the Company’s concepts, inventions, processes, methodologies or trademarks, nor does Executive have any rights to any materials that have been copyrighted by the Company. The Company owns all rights to its patents, inventions, trademarks, service marks, trade names and other trade indicia. The Company owns all copyright rights to its materials, including materials prepared by Executive. Any inventions, concepts, processes, methodologies, trademarks, works or other material subject to copyright, that were developed by Executive in part or in whole in connection with Executive’s duties and responsibilities with or for the Company, shall belong entirely to the Company, and Executive shall cooperate fully with the Company to perfect its ownership and title thereto, at Company’s sole expense and cost. 

 

10.           Non-Solicitation and Non-Disparagement. 

 

10.1.     Executive agrees that in further consideration of the payments and benefits provided under this Agreement, during his employment with the Company and for a period of two (2) years following the Resignation Date, Executive shall not, on his own behalf or on behalf of any other person, partnership, entity, association or corporation, directly or indirectly hire or seek to hire any employee of the Company or in any other manner attempt directly or indirectly to influence, induce or encourage any employee of the Company to leave the employment of the Company, nor shall Executive use or disclose to any person, partnership, entity, association or corporation any information concerning the names, addresses or personal telephone numbers of any employee of the Company. 

 

10.2.     Executive agrees, at all times, to speak well of the Company and not make any disparaging or denigrating statements or comments about the Company or its operations, products, services, members, managers, officers, employees, agents or representatives. The Company agrees that, following the Resignation Date, it shall advise its directors and executive officers not to disparage Executive, either orally or in writing, at any time; provided that they may confer in confidence with the Company’s and their legal representatives and make truthful statements as required by law.

 

11.           Reasonableness of Covenants and Remedies for Breach of Covenants.

 

11.1.     Executive acknowledges and agrees that the restrictions and agreements in the covenants contained in Sections 8, 9 and 10 above are reasonable and necessary to protect the Company’s goodwill and legitimate business interests, that compliance with the terms of these covenants shall not cause Executive any undue hardship, and that any violation of the said covenants will cause substantial and irreparable harm to the Company that will not be quantifiable and for which no adequate remedy will exist at law. Company acknowledges and agrees that the restrictions and agreements in the covenants contained in Section 10 above are reasonable and necessary to protect Executive’s reputation legitimate business and personal interests, that compliance with the terms of these covenants shall not cause Company any undue hardship, and that any violation of the said covenants will cause substantial and irreparable harm to Executive that will not be quantifiable and for which no adequate remedy will exist at law. 

 

 

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11.2.     Executive agrees that, in the event he breaches or threatens to breach any of the covenants or agreements contained in Section 8, 9 and 10, the Company shall have the right to seek and obtain, and a court of competent jurisdiction may issue, a temporary restraining order, a preliminary or permanent injunction, or other order granting equitable relief (with any requirements for posting of a bond being hereby expressly waived), restraining or enjoining him from engaging in conduct or actions in violation of any such covenants. In addition, the Company shall be entitled to any and all other remedies available to it at law or in equity, and no action by the Company in pursuing a given remedy shall constitute an election to forego other remedies. Company agrees that, in the event that it breaches or threatens to breach any of the covenants or agreements contained in Section 10, Executive shall have the right to seek and obtain, and a court of competent jurisdiction may issue, a temporary restraining order, a preliminary or permanent injunction, or other order granting equitable relief (with any requirements for posting of a bond being hereby expressly waived), restraining or enjoining Company from engaging in conduct or actions in violation of any such covenants. In addition, Executive shall be entitled to any and all other remedies available to him at law or in equity, and no action by Executive in pursuing a given remedy shall constitute an election to forego other remedies.

 

12.           Return of Company Property. Executive covenants and agrees that he has or will return to the Company on or before the Resignation Date, all property of any kind or character that he received from the Company during the course of and relating to his employment, including, without limitation, all credit cards, telephone cards, cell phones, computers, personnel records (except personnel records previously provided by the Company to Executive and that specifically relate to Executive), handbooks or manuals, instructional or training books or materials, records, samples, financial information, business plans, marketing plans, computers or other electronic equipment, customer lists or records of customer usage, pricing lists, vendor lists or any other similar information that Executive had or has in his possession, custody or control.

 

13.            No Admission of Liability or Wrongdoing. This Agreement shall not be construed as an admission by the Company that it has acted wrongfully with respect to Executive, or that Executive has acted wrongfully toward the Company. 

 

14.            Executive’s Right to Review Agreement with Counsel; Attorneys’ Fees. Executive fully understands that he has the right to discuss all aspects of this Agreement with a private attorney; that he has availed himself of that right to the extent he desires to do so; that he fully understands all of the provisions of this Agreement; and that he is entering into this Agreement voluntarily. Company shall reimburse the legal fees of Executive actually incurred in connection with this Agreement up to a maximum amount of $5,000, payable within 30 days of Executive’s submission of supporting documentation with respect thereto, but in no event later than December 31, 2016. 

 

15.           Acknowledgement. Executive acknowledges that this Agreement is written in a manner that he understands, and that he, in fact, understands the terms, conditions and effect of this Agreement; that he does not waive rights or claims that may arise after the date this Agreement is executed; and that the rights and claims released and waived by him herein are in exchange for additional consideration in addition to anything of value to which Executive already is entitled. 

 

 

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16.           Section 409A of the Code. 

 

16.1.     This Agreement is intended to be exempt from, or, to the extent that such requirements are applicable, comply with, the requirements of Section 409A and shall be interpreted and administered in accordance with that intent. If any provision of this Agreement would otherwise conflict with or frustrate this intent, that provision will be interpreted and deemed amended so as to avoid the conflict. Further, for purposes of the limitations on nonqualified deferred compensation under Section 409A, each payment of compensation under this Agreement shall be treated as a separate payment of compensation for purposes of applying the deferral election rules under Section 409A and the exclusion from Section 409A for certain short-term deferral amounts. Anything to the contrary herein notwithstanding, in the event that any such benefit or payment is deemed to result in the imposition of taxes and/or penalties under Section 409A, the Company and Executive agree to renegotiate in good faith any such benefit or payment so that either (i) Section 409A will not apply or (ii) such benefit or payment does not result in the imposition of taxes and/or penalties under Section 409A, provided, however, that any resulting renegotiated terms shall provide to Executive, to the extent reasonably practicable, the after-tax economic equivalent based on what otherwise would have been provided to Executive pursuant to the terms of this Agreement. Notwithstanding anything herein to the contrary, Executive acknowledges and agrees that in the event that any tax is imposed under Section 409A in respect of any compensation or benefits payable to Executive, whether under or in connection with this Agreement or otherwise, then (i) the payment of such tax shall be solely Executive’s responsibility, and (ii) neither the Company, its affiliates nor any of their respective past or present directors, officers, employees or agents shall have any liability for any such tax.

 

16.2.     Notwithstanding anything to the contrary in this Agreement, no compensation or benefits, including without limitation any payments or benefits payable under Section 4 of this Agreement, shall be paid to Executive during the six (6)-month period following Executive’s “separation from service” from the Company (within the meaning of Section 409A) (a “Separation from Service”) to the extent that the Company determines that paying such amounts at the time or times indicated in this Agreement would result in a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code. If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such six (6)-month period (or such earlier date upon which such amount can be paid under Section 409A of the Code without resulting in a prohibited distribution, including as a result of Executive’s death), the Company shall pay Executive a lump-sum amount equal to the cumulative amount that would have otherwise been payable to Executive during such six (6)-month period.

 

16.3.     All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the period of time specified in this Agreement, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made no later than the last calendar day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

17.           Golden Parachute Excise Tax Best Results. If any payments or benefits provided for in this Agreement (a) constitute “parachute payments” within the meaning of the Code Section 280G and (b) would be subject to the excise tax imposed by Section 4999 of the Code, then such benefits shall either be: (i) delivered in full, or (ii) delivered as to such lesser extent which would result in no portion of such severance benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income and employment taxes and the excise tax imposed by Section 4999, results in the receipt by Executive, on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code. Unless the Company and Executive otherwise agree in writing, any determination required under this Section will be made in writing by Squar Milner LLP, the Company’s independent public accounts (the “Accountants”), whose determination will be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section. Any reduction in payments and/or benefits required by this Section shall occur in the following order: (1) reduction of cash payments; and (2) reduction of other benefits paid to Executive. In the event that acceleration of vesting of equity awards is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant for Executive’s equity awards. If two or more equity awards are granted on the same date, each award will be reduced on a pro-rata basis. In no event will Executive exercise discretion in the order of any reduction in payments contemplated by this Section.

 

 

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18.           General Provisions.

 

18.1.     Entire Agreement and Modification. Executive has carefully read and fully understands all of the terms of this Agreement. Executive and Company agree that this Agreement sets forth the entire agreement between Executive and the Company regarding the subject matter referenced herein and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter, including without limitation the employment letter between Executive and the Company dated August 23, 2006. Executive acknowledges that he has not relied upon any representations or statements, written or oral, not set forth in this Agreement. This Agreement cannot be modified except in writing and signed by both parties.

 

18.2.     Severability. If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement, and all other provisions shall remain in full force and effect.

 

18.3.     Applicable Law, Jurisdiction and Venue. This Agreement is entered into under, and shall be governed for all purposes by, the laws of the State of California. Any action to enforce any right hereunder, to obtain a declaration of any right or obligation hereunder, or to recover for any breach hereof shall be brought in San Diego, California. Executive hereby expressly consents to the jurisdiction and venue of the foregoing courts for such purposes.

 

18.4.     Assignment. This Agreement will be binding upon and will inure to the benefit of the parties and their respective successors and assigns. Executive may not assign any right or obligation hereunder without the Company’s prior written consent. The Company may assign its rights and obligations hereunder to any successor in interest. 

 

18.5.     Execution/Counterparts. This Agreement may be executed in any number of counterparts, which counterparts, when so executed and delivered, shall be deemed to be an original, and all counterparts, taken together, shall constitute one and the same instrument. This Agreement may be executed by facsimile or email copy and such facsimile or email copy of an original signature shall be given the same force and effect of an original signature.

 

 

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18.6.     Headings. The paragraph headings have been inserted for purposes of convenience and shall not be used for interpretive purposes.

 

18.7.     Attorneys’ Fees. If any party to this Agreement brings an action or proceeding to enforce its rights hereunder, the prevailing party shall be entitled to recover its costs and expenses, including reasonable attorneys’ fees, if any, incurred in connection with such action.

 

[Signature Page Follows] 

 

 

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IN WITNESS WHEREOF, the parties have executed this Separation Agreement and General Release on the dates set forth below.

 

	
Executive 
	
LRAD Corporation
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
Signature: /s/ Thomas R. Brown            
	
By: 
	
/s/ John G. Coburn 
	
 

	
 Thomas R. Brown
	
Name:
	
John G. Coburn
	
 

	
 
	
Its:
	
Chairman of the Board
	
 

	 	 	 	 
	Date: March 11, 2016 	Date:	March 11, 2016	 

    

 

 

10EX-10.8

 Exhibit 10.8 

SPONSORED RESEARCH AGREEMENT NO. UTA13-001113 

This Sponsored Research Agreement (“Agreement”) is made between The University of Texas at Austin, Austin, Texas (“University”), an
institution of higher education created by the Constitution and law of the State of Texas under The University of Texas System (“System”) and Aeglea Development Company, Inc., AERase, Inc., AEMase, Inc., AECase, Inc., AE4ase, Inc., AE5ase,
Inc., and AE6ase, Inc., all Delaware C corporations with their principal place of business at 815 A Brazos St., #101, Austin TX 78701 (each a “Sponsor Entity” and collectively, “Sponsor”). Aeglea Development Company, Inc. may be
referred to herein as the “Funding Sponsor” or “Sponsor Entity” as appropriate. 
 RECITALS 

A. Sponsor desires that University perform certain research work hereinafter described and is willing to advance funds to sponsor such
research; 
 B. Sponsor desires to obtain certain rights to patents and technology developed during the course of such research with a view
to profitable commercialization of such patents and technology for the Sponsor’s benefit; and 
 C. University is willing to perform
such research and to grant rights to such patents and technology; 
 NOW THEREFORE, in consideration of the mutual covenants and promises herein contained,
the University and Sponsor agree as follows: 
 1. EFFECTIVE DATE 

This Agreement shall be effective as of December 1, 2013 (the “Effective Date”). 

2. RESEARCH PROGRAM 

2.1 University will use reasonable efforts to conduct the Research Program described in Attachment A (“Research Program”), and will furnish the
facilities necessary to carry out said Research Program. The Research Program will be under the direction of Professor George Georgiou (“Principal Investigator”), or (his or her) successor as mutually agreed to by the parties and
will be conducted by the Principal Investigator at the University. University agrees to use reasonable efforts to perform the Research Program in a manner consistent with its status as an institution of higher education. University shall perform the
Research Program in accordance with (i) established University policies and procedures, including, but not limited to, policies and procedures applicable to research involving human subjects, human tissues or organs, laboratory animals, and
hazardous agents and materials, and (ii) all applicable federal, state, and local laws, rules, regulations and guidelines. 
  

 
 [***]Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect
to this information. 

 2.2 The Research Program shall be performed during the period from the Effective Date for a period of 12 month
periods thereafter (the “Research Term”). Funding Sponsor shall have the option of extending the Research Program under mutually agreeable support terms. 

2.3 Sponsor understands that University’s primary mission is education and advancement of knowledge, and consequently the Research Program will be
designed to carry out that mission. The manner of performance of the Research Program shall be determined solely by the Principal investigator. University does not guarantee specific results, and the Research Program will be conducted only on a
reasonable efforts basis. 
 2.4 University will keep accurate financial and scientific records relating to the Research Program and will make such records
available to Sponsor or its authorized representative throughout the Term of the Agreement during normal business hours upon reasonable notice. 
 2.5
Sponsor understands that University may be involved in similar research on behalf of itself and others. University shall be free to continue such research provided that it is conducted separately from the Research Program hereinafter defined, and
Sponsor shall not gain any rights via this Agreement to such other research. 
 2.6 University does not guarantee that any patent rights will result from
the Research Program, that the scope of any patent rights obtained will cover Sponsor’s commercial interests, or that any such patent rights will be free of dominance by other patents, including those based upon inventions made by other
inventors in The University of Texas System independent of the Research Program. 
 3. COMPENSATION 

3.1 Sponsor obligations under this Article 3 shall be limited to Funding Sponsor. 

3.2 As consideration for the performance by University of its obligations under this Agreement, Funding Sponsor will pay the University an amount equal to its
reasonable, documented expenditures and reasonable overhead (such overhead to not exceed the rate set forth in University’s indirect rate agreement with the U.S. Federal Government) in conducting the Research Program subject to a maximum
expenditure limitation of $386,252, provided that in any and all events, the amounts charged by University shall not, without Funding Sponsor’s prior written consent, exceed the amount. Payments shall be made as follows (subject to the possible
later return of funds if uncommitted and unexpended, under Section 3.3): 
  

	 	(a)	Upon execution of all parties to the Agreement: $193,126; 

  

	 	(b)	$96,563 by March 31, 2014; and 

  

	 	(c)	$96,563 by June 30, 2014 

 Payments should be made within 30 days of the receipt of an undisputed invoice
sent via mail and email and payable to The University of Texas at Austin, make reference to the Principal Investigator, Agreement number and title of the Research Program funded under this Agreement, and submitted to the address in
Article 3.5. 
  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  
 2 

 3.3 University shall maintain all Research Program funds in a separate account and shall expend such funds for
wages, supplies, equipment, travel, and other operational expenses in connection with the Research Program. It is understood that funds of the Research Program which are not used in a particular quarter may be used in subsequent quarters, and that
the Principal Investigator may transfer funds within the budget as needed without Funding Sponsor’s approval, as long as such transfers do not effect a change in the scope of work of the Research Program. It is also understood that subject to
Section 10.4, uncommitted and unexpended funds remaining at the termination of the Agreement shall be returned to Funding Sponsor within ninety (90) days of the effective date of termination; provided, however, that the parties agree that
in order to minimize administrative close-out expenses, if funds remaining upon termination or expiration of the Agreement equal $250.00 or less, such funds shall be retained by the University and disposed of in accordance with University policy.

 3.4 University shall retain title to all equipment purchased and/or fabricated by it with funds provided by Funding Sponsor under this Agreement. 

3.5 
  

			
	 Checks shall be made payable to University

and sent to:
	  	 Invoices shall be mailed and emailed to

Funding Sponsor at:

	 The University of Texas at Austin

Office of Accounting — SPAA
	  	 Aeglea Development Company

815-A Brazos, Ste_#101

	 P.O. Box 7159
	  	 Austin TX 78701

	 Austin, Texas 78713-7159
	  	 Attn: David G. Lowe

	 (512) 471-6231
	  	 Phone: [phone]

	Tax ID #: 746000203	  	 Fax: (866) 873-2149

		  	 E-mail: [email]

 4. CONSULTATION AND REPORTS 

4.1 Sponsor’s designated representative (“Designated Representative”) for consultation and communications with the Principal Investigator shall
be David G. Lowe or such other person as Sponsor may from time to time designate in writing to University and the Principal Investigator. 
 4.2
During the term of the Agreement, Sponsor’s representatives may consult informally with University’s representatives regarding the project, both personally and by telephone. Access to work carried on in University laboratories in the
course of these investigations shall be entirely under the control of University personnel but shall be made available on a reasonable basis. 
 4.3 The
Principal Investigator will make up to one oral report(s) monthly and quarterly written reports accompanied by a presentation describing the results and accomplishments obtained and plans going forward. Changes or amendments to the Research Program
if any, will be discussed at the quarterly meeting and described in a written amendment to the Research 
  

 
 [***]Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect
to this information. 

  
 3 

 
Program as requested by Sponsor’s Designated Representative. The Principal Investigator shall also submit a comprehensive final report within ninety (90) days of termination of the
Agreement which shall consist of a report of all activities undertaken and accomplishments achieved through the Research 

5. PUBLICITY 

Neither party shall make reference to the other in a press release or any other written statement in connection with work performed under this Agreement, if
it is intended for use in the public media, except as required by the Texas Public Information Act or other law or regulation. University, however, shall have the right to acknowledge Sponsor’s support of the investigations under this Agreement
in scientific or academic publications and other scientific or academic communications, without Sponsor’s prior approval. In any statements, the scope and nature of participation shall be described accurately and appropriately. 

6. PUBLICATION AND ACADEMIC RIGHTS: CONFIDENTIALITY 

6.1 University and the Principal Investigator have the right to publish or otherwise publicly disclose information gained in the course of this Agreement,
except for Sponsor’s Confidential Information. In order to avoid loss of patent rights as a result of premature public disclosure of patentable information, University will submit (a) any prepublication materials and (b) a copy of any
materials to be publicly disclosed to Sponsor for review and comment thirty (30) days in advance of its planned submission for publication or public disclosure to the extent possible, but in the case of any requests under the Texas Public
Information Act, prior to release of any information to the requestor. Funding Sponsor may request in writing, and University shall agree to, (i) the deletion of any Confidential Information provided by Sponsor, and (iii) a delay of such
proposed publication or public disclosure for an additional period, not to exceed sixty (60) days, in order to protect the potential patentability of any technology described therein. Funding Sponsor shall be entitled to receive in any such
publication or public disclosure an acknowledgment of its sponsorship of the Research Program. University shall have final authority to determine the scope and content of any publications or disclosures provided that in no event shall any
publication or disclosure include Sponsor’s Confidential Information. 
 6.2 It is anticipated that inventions or discoveries arising from the Research
Program (“Inventions”) shall be discussed with Funding Sponsor concurrently with their reduction to practice by the Principal Investigator. It is understood that the University investigators may discuss the research being performed under
this Agreement with other University investigators but shall not reveal Confidential Information to such investigators unless such investigators have signed a nondisclosure agreement. 

6.3 In conjunction with the Research Program, Sponsor may wish to disclose certain of its confidential and/or proprietary information (“Confidential
Information”) to University during the term of this Agreement. Confidential Information will be transmitted in writing and clearly marked “Confidential,” “Proprietary,” or similarly, or if disclosed orally will be reduced to

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  
 4 

 
writing by Disclosing Party, clearly marked “Confidential,” “Proprietary,” or similarly, and transmitted to the Contact Person of Receiving Party within thirty (30) days
after oral disclosure. No license under or title to any invention, patent, trademark, trade name or other intellectual property or other rights or interests in the Confidential Information now or hereafter owned by or controlled by any Party is
granted either expressly, by implication, estoppel or otherwise by the Agreement. All Confidential Information is provided “AS IS” and without warranty, express or implied, of any kind. 

University will use Confidential Information solely for the purpose of conducting the Research Program, and shall use reasonable efforts to
prevent the disclosure of Confidential Information to third parties during the term of this Agreement and for a period of five (5) years after its expiration or termination. If required, University may disclose Confidential Information to a
governmental authority or by order of a court of competent jurisdiction, provided that such disclosure is subject to all applicable governmental or judicial protection available for like information and reasonable advance notice is given to Funding
Sponsor. University’s obligations with respect to Confidential Information shall not apply to information that (a) is already in University’s possession at the time of disclosure; (b) is or later becomes part of the public domain
through no fault of University; (c) is received on a non-confidential basis from a third party having no obligations of confidentiality or nonuse to University’s; or (d) independently developed by University. Notwithstanding the
foregoing, University may retain one archival copy of the Confidential Information received in a secure location to be used solely to determine its obligations under the Agreement. 

The Parties agree that, in the event of breach or threatened breach or intended breach of the Agreement, each Party, in addition to any other
rights and remedies available to it at law or in equity, may seek injunctive or equitable relief without the necessity of posting bond or proving that it has no adequate remedy at law. 

7. PATENTS, COPYRIGHTS AND TECHNOLOGY RIGHTS 

7.1 Title to Inventions conceived and reduced to practice solely by University shall reside in University (“University Inventions”). Title to all
Inventions conceived and reduced to practice solely by Sponsor shall reside in Sponsor (“Sponsor Inventions”). Title to all inventions and discoveries conceived and reduced to practice jointly by Sponsor and University shall reside jointly
in Sponsor and University (“Joint Inventions”). University hereby grants to Sponsor an exclusive first option to negotiate a royalty- bearing exclusive license for any invention or discovery that is conceived or reduced to practice during
the term of this Agreement directly resulting from the performance of research hereunder to the extent that University is able to do so under applicable law. It is contemplated that, in the majority of instances, Sponsor will be asked to determine
whether it will exercise its option prior to the filing of the first patent application. University reserves for itself a royalty-free, irrevocable license to make and use such University Inventions and Joint Inventions for its own research and
educational purposes, but not for commercial purposes during the option period. If a University Invention or Joint Invention arises from the Research Program, the Principal Investigator shall promptly submit an invention 

 
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  
 5 

 
disclosure (http://www.otc.utexas.edu/InventorForms.jsp) to University’s Office of Technology Commercialization (“OTC”). University will provide to Sponsor a full copy of
such disclosure promptly after such disclosure is received by OTC. Sponsor may review (and University shall provide to Sponsor) any and all patentability and freedom to operate opinions that have been commissioned by the University. A Sponsor Entity
shall then have ninety (90) days from receipt of such disclosure of any University Invention or Joint Invention to notify University of its desire to enter into such a license agreement, and a non-binding term sheet and thereafter a license
agreement shall be negotiated in good faith within a period not to exceed six (6) months (“License Option Period”) from the applicable Sponsor Entity’s notification to University of its desire to enter into a license agreement,
or such period of time as the parties shall mutually agree in writing. The parties agree to negotiate, in good faith, a license agreement with terms and conditions substantially similar to existing license agreements between the parties, to the
extent allowed by current law, University policy, and reasonable updates to financial terms. During the License Option Period, University agrees that it will not offer its rights in University Inventions or Joint Inventions to any third party or
negotiate with third parties with respect to those rights. If the parties fail to enter into a license agreement within the License Option Period under the provisions of this Section 7.1, University rights in University Inventions and Joint
Inventions shall be disposed of in accordance with University policies with no further obligations to Sponsor. 
 7.2 “Background Intellectual
Property” (“BIP”) means intellectual property and the legal rights therein (including, but not limited to, inventions, patent applications, patents, copyrights, and any information embodying proprietary data such as technical data and
computer software) of University developed or created by Principal Investigator(s) before the Effective Date of the Research Program and necessary for the full exercise of all intellectual property which is related to the Research Program.
University BIP is listed in Attachment B of this Agreement. The Parties agree that nothing in this Agreement grants either Party any rights to any background intellectual property of the other Party created before the Effective Date of the
Agreement. 
 7.3 The applicable Sponsor Entity has the right to elect to have patent applications filed on any University Invention or Joint Invention, and
if it does so, then such Sponsor Entity shall reimburse University for all documented, out-of-pocket patent expenses incurred by University, including those for patentability opinions, within thirty (30) days of such Sponsor Entity’s
receipt of an invoice from University. Such patent expenses shall include, but not be limited to, the cost of any prior activities investigating patentability of said invention before exercise of the option, such as search and opinion for
patentability, that may have been performed by University pursuant to its arrival at a judgment of commercially exploitable status. Following expiration of the License Option Period, and in the event that University grants a license to any
University Inventions to a third party (the “Third Party License”), University shall pay to the applicable Sponsor Entity its reasonable costs incurred in connection with the preparation, filing, prosecution and maintenance of the licensed
University Inventions or Joint Inventions paid under the Third Party License with the following priority for payment: i) in one full payment from the fees reimbursed to University by a third party under the executed license; or if necessary, ii) on
a quarterly basis, a royalty (the “Third Party Royalty”) equal to one hundred percent (100%) of 
  

 
 [***]Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect
to this information. 

  
 6 

 
University’s net licensing revenue attributable to the Third Party License (including license fees, royalties, revenue sharing, milestone payments and other monetary payments) until such
time as University has paid to such Sponsor Entity aggregate Third Party Royalties equal to such Sponsor Entity’s reasonable costs incurred in connection with the preparation, filing, prosecution and maintenance of the licensed University
Inventions. 
 7.4 At its discretion, University may allow the applicable Sponsor Entity to instruct Prosecution Counsel directly for University Inventions
and Joint Inventions, provided, that prior written approval is obtained and the Prosecution Counsel remains counsel to the University with an appropriate contract (and shall not jointly represent such Sponsor Entity unless requested by such Sponsor
Entity and approved by University, not to be unreasonably denied, and an appropriate engagement letter and conflict, waiver are in effect). If such Sponsor Entity wishes to instruct Prosecution Counsel directly or change Prosecution Counsel, such
Sponsor Entity may request to do so by following the University’s procedures for such. Subject to the terms herein University reserves in its sole discretion the ability to change Prosecution Counsel and to approve or disapprove any requested
changes by such Sponsor Entity. The Parties agree that they share a common legal interest to get valid enforceable patents in strategically important countries and that both Parties will maintain as privileged all information received pursuant to
this Section 7. Each Party agrees to cooperate fully in the preparation, filing, and prosecution of any patent and any joint patent, as described herein. Such cooperation includes without limitation executing all papers and instruments, or requiring
its representatives to execute such papers and instruments, so as to effectuate the ownership of such intellectual property rights. 
 7.5 Notwithstanding
anything to the contrary set forth herein, University hereby grants to Sponsor a perpetual, irrevocable, worldwide, non-exclusive, royalty free right and license, with the right to sublicense to third parties through multiple tiers, to use the Data
and Results for any and all purposes. Data and Results mean all data, information and results arising from the Research Program that are included in the Research Program deliverables but are not inventions and discoveries for which a patent
invention disclosure is made. 
 8. LIABILITY 

8.1 Sponsor agrees to defend (and subject to the statutory duties of the Texas State Attorney General to defend University, if applicable),indemnify and hold
harmless System, University, their Regents, officers, agents and employees from any liability, loss or damage they may suffer as a result of third party claims, demands, costs or judgments against them arising out of the activities to be carried out
pursuant to the obligations of this Agreement, including but not limited to the use by Sponsor of the results obtained from the activities performed by University under this Agreement; provided, however, that the following is excluded from
Sponsor’s obligation to defend, indemnify and hold harmless: 
  

	 	(a)	the negligent failure of University to substantially comply with any applicable FDA or other governmental requirements; or 

  

 
 [***]Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect
to this information. 

  
 7 

	 	(b)	the negligence or willful malfeasance of any Regent, officer, agent or employee of University or System 

 8.2
To the extent authorized by the constitution and laws of the State of Texas, University agrees to defend, indemnify and hold harmless Sponsor, its officers, agents and employees from any liability, loss or damage they may suffer as a result of third
party claims, demands, costs or judgments against them arising out of (i) the negligence or willful malfeasance of any Regent, officer, agent or employee of University or System or (ii) breach of this Agreement by any Regent, officer,
agent or employee of University or System, provided, however, that University shall not be obligated to hold harmless any Sponsor Indemnitee from claims arising out of the negligence or willful malfeasance of Sponsor. 

8.3 Both parties agree that upon receipt of a notice of claim or action arising out of the activities to be carried out pursuant to the Research Program, the
party receiving such notice will notify the other party promptly. 
 9. INDEPENDENT CONTRACTOR 

For the purposes of this Agreement and all services to be provided hereunder, the parties shall be, and shall be deemed to be, independent contractors and not
agents or employees of the other party. Neither party shall have authority to make any statements, representations or commitments of any kind, or to take any action which shall be binding on the other party, except as may be expressly provided for
herein or authorized in writing. 
 10. TERM AND TERMINATION 

10.1 This Agreement shall commence on the Effective Date and extend until the end of the Research Term, unless sooner terminated in accordance with the
provisions of this Article 10. 
 10.2 This Agreement may be terminated by Sponsor for its convenience upon sixty (60) days prior written notice to
University. 
 10.3 In the event that either party shall be in default of its material obligations under this Agreement and shall fail to remedy such
default within sixty (60) days after receipt of written notice thereof, this Agreement may be terminated at the option of the party not in default upon expiration of the sixty (60) day period. 

10.4 This Agreement shall terminate automatically and immediately if Sponsor becomes bankrupt or insolvent and/or enters receivership or trusteeship, whether
by voluntary act of Sponsor or otherwise. 
 10.5 Termination or cancellation of this Agreement shall not affect the rights and obligations of the parties
accrued prior to termination. Upon termination, (i) Sponsor shall pay University for all reasonable expenses incurred or committed to be expended due pursuant to Section 3 hereof as of the effective termination date, including salaries for
appointees for the remainder of their 
  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  
 8 

 
appointment and (ii) University shall return to Sponsor or destroy any Confidential Information in its possession or control, subject to University’s right to keep an archival copy
pursuant to Section 6.3. 
 10.6 Any provisions of this Agreement which by their nature extend beyond termination shall survive such termination
including, without limitation, Sections 6 and 7. 
 10.7 This Agreement will terminate with respect to any individual Sponsor Entity at such time as it is
no longer a wholly owned subsidiary of Aeglea BioTherapeutics Holdings LLC and upon such a termination the respective Sponsor Entity shall be removed as a party to this Agreement. Sponsor will provide prompt written notice of the same to University.

 11. ATTACHMENTS 

Attachments A and B are incorporated and made a part of this Agreement for all purposes. 

12. USE OF HUMAN SUBJECTS (if applicable) 

12.1 University will conduct all research in accordance with Federal Wide Assurance #2030, written protocol, applicable law, and University’s ethical
standards. In the event a research participant has a research related injury neither University nor the Sponsor are responsible for any resulting medical care. 

12.2 If the Sponsor is responsible for monitoring research, then the Sponsor must alert University’s Institutional Review Board (“IRB”) when
research findings: 
  

	 	(a)	Affect the safety of the participants 

  

	 	(b)	Affect the willingness of research participants to continue participation 

  

	 	(c)	Influence the conduct of the study 

  

	 	(d)	Alter the IRB’s approval for the study 

 12.3 In the event research findings indicate that current and
past participants are at increased risk that was not anticipated at the time of the study design, the Principal Investigator, in accordance with both University IRB Policy and Procedures and the informed consent agreement, will immediately inform
research participants of risk alteration. 
 13. GENERAL 

13.1 Neither Party can assign its rights under this Agreement without the prior written consent of the other Party, which consent will not be unreasonably
withheld. Notwithstanding the foregoing, no such consent shall be needed for a assignment by any Sponsor Entity to another Sponsor Entity of part or all of the assigning Sponsor Entity’s interest. After a Party has received 

 
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  
 9 

 
a written request for consent to assign, the receiving Party will respond in writing within thirty (30) days. If the receiving Party does not respond in writing within thirty (30) days, that
Party’s silence will be deemed to mean that the receiving Party consents to the assignment. Any assignment made without the written or deemed consent of the non-assigning Party will be null and void. Subject to the approval of University, which
may not be unreasonably withheld, Sponsor is permitted to assign this Agreement in connection with a merger or a sale or transfer of substantially all of its assets; provided, however, that such assignee shall have expressly assumed all of the
obligations and liabilities of Sponsor under this Agreement, and provided, further that, University may assign its right to receive payments hereunder. 

13.2 This Agreement constitutes the entire and only agreement between the parties relating to the Research Program, and all prior negotiations,
representations, agreements and understandings are superseded hereby. No agreements altering or supplementing the terms hereof may be made except by means of a written document signed by the duly authorized representatives of University and Funding
Sponsor. Terms and conditions which may be set forth (front, reverse, attached or incorporated) in any purchase order issued by Sponsor in connection with this Agreement shall not apply, except for informational billing purposes; i.e., reference to
purchase order number, address for submission of invoices, or other invoicing items of a similar informational nature. 
 13.3 Any notice required by this
Agreement by Articles 7, 8 or 10 shall be given prepaid, first class, certified mail, return receipt requested, addressed in the case of University to: 

The University of Texas System, O.G.C. 

201 West 7th Street 
 Austin, Texas
78701 
 Attention: Intellectual Property Section 

Phone: (512) 499-4462 
 FAX:
(512) 499-4523 
 Vice President for Research 

The University of Texas at Austin 

P.O. Box 7996, Mail Code G1400 

Austin, Texas 78713 
 Attention:
Technology Licensing Specialist 
 Phone: (512) 471-2995 

FAX: (512) 475-6894 
  

 
 [***]Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect
to this information. 

  
 10 

 or in the case of the Sponsor to: 

Aeglea Development Company, Inc. 

815-A Brazos St., #101 
 Austin TX
78701 
 Attn: David G. Lowe 

Phone: [phone] 
 FAX:
(866) 873-2149 
 E-Mail: [email] 
 or at
such other addresses as may be given from time to time in accordance with the terms of this notice provision. 
 Notices and other communications regarding
the day-to-day administration and operations of this Agreement shall be mailed (or otherwise delivered), addressed in the case of University to: 

The University of Texas at Austin 

Office of Industry Engagement 

North Office Building-A, Suite 5.2 

Post Office Box 7727, MC A9300 

Austin, Texas 78712-1736 

Attention: Bill Catlett, Director 

Phone: (512) 471-3866 
 FAX:
(512) 471-7839 
 E-mail: industry@austin.utexas.edu 

with a copy to: 
 Dr. George Georgiou 

The University of Texas at Austin 

Department of Chemical Engineering 

Austin, Texas 78712 
 Phone: [phone]

 E-Mail: [email] 
 or in the case of Sponsor
to: 
 Aeglea Development Company, Inc. 

815-A Brazos St., #101 
 Austin TX
78701 
 Attn: David G. Lowe 

Phone: [phone] 
 FAX:
(866) 873-2149 
 E-Mail: [email] 
  

 
 [***]Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect
to this information. 

  
 11 

 13.4 This Agreement shall be governed by, construed, and enforced in accordance with the internal laws of the
State of Texas. 
 13.5 Each Party acknowledges that this Agreement and the performance thereof are subject to compliance with any and all applicable United
States laws, regulations, or orders, including those that may relate to the export of technical data, and each Party agrees to comply with all such laws, regulations and orders, including, if applicable, all requirements of the International Traffic
in Arms Regulations and/or the Export Administration Act, as may be amended. Sponsor further agrees that if the export laws are applicable, it will not disclose or re-export any technical data under this Agreement to any countries for which the
United States government requires an export license or other supporting documentation at the time of export or transfer, unless Sponsor has obtained prior written authorization from the U.S. Office of Export Control or other authority responsible
for such matters. 
 13.6 If any provision contained in this Agreement is held invalid, unenforceable or contrary to laws then the validity of the remaining
provisions of this Agreement shall remain in full force. In such instance, Parties shall use their best efforts to replace the invalid provision(s) with legally valid provisions having an economic effect as close as possible to the original intent
of Parties. 
 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives. 

 

									
	THE UNIVERSITY OF TEXAS AT AUSTIN	 		 	AEGLEA DEVELOPMENT COMPANY, INC.
			
	/s/ Ty Helpinstill	 		 	/s/ David G. Lowe
	By: Ty Helpinstill	 		 	By: David G Lowe
					
	Title:	 	Assoc Dir, Office of Industry Engagement	 		 	Title:	 	CEO
					
	Date:	 	19 December 2013	 		 	Date:	 	12/24/13

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  
 12 

									
	AERASE, INC.	 		 	AEMASE, INC.
			
	/s/ David G. Lowe	 		 	/s/ David G. Lowe
	By: David G Lowe	 		 	By: David G Lowe
					
	Title:	 	CEO	 		 	Title:	 	CEO
					
	Date:	 	12/24/13	 		 	Date:	 	12/24/13

  

									
	AECASE, INC.	 		 	AE4ASE, INC.
			
	/s/ David G. Lowe	 		 	/s/ David G. Lowe
	By: David G Lowe	 		 	By: David G Lowe
					
	Title:	 	CEO	 		 	Title:	 	CEO
					
	Date:	 	12/24/13	 		 	Date:	 	12/24/13

  

									
	AE5ASE, INC.	 		 	AE6ASE, INC.
			
	/s/ David G. Lowe	 		 	/s/ David G. Lowe
	By: David G Lowe	 		 	By: David G Lowe
					
	Title:	 	CEO	 		 	Title:	 	CEO
					
	Date:	 	12/24/13	 		 	Date:	 	12/24/13

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  
 13 

 ATTACHMENT A — RESEARCH PROGRAM 

Aeglea LLC will sponsor research in the laboratory of Professor George Georgiou, Depts of Chemical Engineering, Biomedical Engineering and
Molecular Biosciences on the engineering, optimization and initial animal validation of human enzyme therapeutics for the following purposes: 

Specific Aim 1. The systemic depletion of amino acids for cancer therapy, as elaborated below. 

Specific Aim 2. Enzyme replacement for the treatment of patients having inborn metabolic defects, primarily but not limited to diseases
stemming from mutations impacting physiological enzymatic function. 
 It is anticipated that during the 2013-2014 fiscal year, the work to
be carried out at the Georgiou lab will focus primarily, but not exclusively on Specific Aim 1. During this period the Georgiou lab will seek to focus on the engineering and optimization of the following enzymes: 

 

	 	1.1	[***] 

  

	 	1.2	[***] 

  

	 	1.3	[***] 

  

	 	1.4	[***] 

 Studies to be performed under 1.1-1.4 may include: 

 

	 	a)	Engineering enzymes having high catalytic proficiency (kcat/Km) and substrate specificity, as required for human therapeutic purposes. 

 

	 	b)	High thermodynamic stability in vitro and in physiological fluids, namely in human serum 

  

	 	c)	Formulation of the enzymes from 1.1-1.4 for prolonged circulation half-life by conjugation or polyethylene glycol or similar means. 

  

	 	d)	Development of lab scale processes for the preparative production of these enzymes at scale. 

  

	 	e)	In vitro studies to evaluate the effect of the engineered enzymes from 1.1-1.4 on cancer cell lines and, if available on primary tumor cells. 

 

	 	f)	Evaluation of the efficacy of the enzymes from 1.1-1.4 above in xenograft tumor mouse models, as applicable. 

  

	 	g)	Mechanistic studies as might be required to support Investigative New Drug applications (IND) to the FDA specifically addressing the impact of enzymes from 1.1-1.4 on cell cycle arrest, autophagy and apoptotic death of
cancer cells. 

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  
 14 

			
	Background IP * and party owning or controlling that BIP	  	 Restrictions on BIP**
  

(If restrictions exist, describe nature of restrictions and third party that holds the rights thereto.) (If no restrictions exist, state
“none”)

		
	Owned by The University of Texas at Austin:	  	Exclusively licensed by Sponsor:
		
	 Engineering of L-Cysteine/L-Cystine degrading enzymes for therapeutic purposes.
	  	 PLA number PM1400601 (6337 GEO)
  

BIP: 61/871,727 (provisional patent application number)

		
	 Improvement on UTSB 741 “Engineered methionine gammal-lyase enzymes and pharmacological preparations thereof
	  	 PLA number PM4011501 (6314 GEO)
  

BIP: 61/871,768 (provisional patent application number)

 * “Background II” means any and all patents or patent applications for inventions, discoveries or
technology developed prior to the date hereof which necessarily would be infringed by the making, use or sale of a product the making, use or sale of which would also infringe a claim of a patent or patent application for any invention, discovery or
technology reasonably expected to result from the performance of the Research Program. If the BIP is applicable to multiple items, components, or processes identify both the BIP and each such item, component, or process. 

**Restrictions on BIP may include licenses granted by the owner of the BIP or industrial sponsorship arrangements that allow the sponsor
rights to review publications or to negotiate a license. Indicate whether development was funded either exclusively or partially by a government or non-government source, and list the source. Enter any reason that owner’s ability to grant
licenses in the BIP could be restricted. Identify basis of restriction (e.g., rights from a pre-existing agreement, rights in data generated under another contract, limited purpose rights under this or a prior contract, or specifically negotiated
licenses). 
  

			
	Printed Name:	 	George Georgiou
		
	Title:	 	Professor
		
	Signature	 	/s/ George Georgiou
		
	Date	 	 December 6, 2013

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  
 15 

 ATTACHMENT B 

SPONSORED RESEARCH AGREEMENT UTA13-001113 

Identification of Background IP and Restrictions on its Use, Release, 

or Disclosure 
 University’s Principal
Investigator asserts that the following identifies the Background IP (BIP) developed by University researchers performing under the Research Program and restrictions that exist on the rights of the entity owning or controlling the BIP to use,
release, or disclose the BIP. 
 Controlled by George Georgiou and exclusively licensed by Sponsor: 

 

			
	“Arginase formulations and methods”
	Serial No. 13/380,776	  	United States
	Serial No. PCT/US2010/040205	  	International
	Serial No. 61/221,396	  	United States
	Serial No. 10800270.0 (Publication No. EP2449102)	  	European Patent Office
	Serial No. 12111085.9	  	Hong Kong
	Serial No. 2012-517824	  	Japan
	Serial No. 2,766,039	  	Canada
	“Engineered Enzymes with Methionine-Gamma-Lyase Enzymes and
Pharmacological Preparations Thereof”
	Serial No. 61/301,368	  	United States
	Serial No. 13/020,268	  	United States
	Serial No. PCT/US2011/023606	  	International
	Serial No. 2011212885•	  	Australia
	Serial No. 2,788,689	  	Canada
	Serial No. 201180013307.X	  	China
	Serial No. 11740355	  	European Patent Office
	Serial No. 2012-552084	  	Japan
	Serial No. 10-2012-7023176	  	Republic of Korea .
	“Compositions of Engineered Human Arginases and Methods for Treating
Cancer”
	Serial No. 12/610,685	  	United States
	Serial No. 61/110,218	  	United States
	Serial No. PCT/US2009/062969	  	International
	 Serial No. 09824219.1

(Publication No. EP2350273)
	  	European Patent Office
	Serial No. 12100429.7	  	Hong Kong
	Serial No. 2,742,497	  	Canada
	Serial No. 2011-534855 (Publication No. JP2012507301)	  	Japan

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  
 16 

 Amendment 1 

To Sponsored Research Agreement UTA13-001113 (“Agreement”) 

Betwee 
 The University of
Texas at Austin (“UT”) 
 And 

Aeglea Development Company, Inc., AERase, Inc., AEMase, Inc., AECase, Inc., AE4ase, Inc., 

AE5ase, Inc., and AE6ase, Inc. (each a “Sponsor Entity” and collectively, “Sponsor”) 

The purpose of this Amendment: 
 To extend
the period of performance and increase the limitation of funding to perform additional research. 
 This Sponsored Research Agreement
is modified by mutual agreement of the Parties 
 as follows: 

 

	1.	Attachment A, Statement of Work, is appended with the Statement of Work included with this Amendment 1 as Attachment A-1, attached hereto. 

 

	2.	Section 2.2 is hereby replaced with the following: “The Research Program shall be performed during the period from the Effective Date through and including January 15, 2016 (the “Research
Term”). Funding Sponsor shall have the option of extending the Research Program under mutually agreeable support terms. 

  

	3.	Section 3.2, first paragraph and payment schedule, are hereby replaced with the following: “As consideration for the performance by University of its obligations under this Agreement, Funding Sponsor will pay
the University an amount equal to its reasonable, documented expenditures and reasonable overhead (such overhead to not exceed the rate set forth in University’s indirect rate agreement with the U.S. Federal Government) in conducting the
Research Program subject to a maximum expenditure limitation of $761,252, an increase of $375,000 over the currently funded amount of $386,252, provided that in any and all events, the amounts charged by University shall not, without Funding
Sponsor’s prior written consent, exceed the amount of the maximum expenditure limitation. Funding Sponsor has paid University $386,252 as consideration for its performance under the Research Program as described in Attachment A. Payments under
the following Attachment A-1 shall be made as follows (subject to the possible later return of funds if uncommitted and unexpended, under Section 3.3): 

  

	 	a)	Upon execution of all parties to the Agreement: $93,750; 

  

	 	b)	$93,750 by March 31, 2015; and 

  

	 	c)	$93,750 by June 30, 2015 

  

	 	d)	$93,750 by Sept 30, 2015” 

  

			
	Effective Date of the Sponsored Research Agreement:	  	December 1, 2013
	Effective Date of Amendment:	  	January 15, 2015

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  

					
	Sponsor: Aeglea	  	PI: George Georgiou	  	SRA Amendment No. 1
	The University of Texas at Austin	  	17 	  	Agreement No. UTA13-001113

 All other terms and conditions of this Sponsored Research Agreement remain unchanged. 

 

									
	THE UNIVERSITY OF TEXAS AT AUSTIN	 		 	AEGLEA DEVELOPMENT COMPANY, INC.
			
	/s/ Ty Helpinstill	 		 	/s/ David G. Lowe
	By: Ty Helpinstill	 		 	By: David G Lowe
	Title:	 	Assoc Dir, Office of Industry Engagement	 		 	Title:	 	CEO
	Date:	 	28 October 2014	 		 	Date:	 	11/13/14

  

									
	AERASE, INC.	 		 	AEMASE, INC.
			
	/s/ David G. Lowe	 		 	/s/ David G. Lowe
	By: David G Lowe	 		 	By: David G Lowe
	Title:	 	CEO	 		 	Title:	 	CEO
	Date:	 	11/13/14	 		 	Date:	 	11/13/14

  

									
	AECASE, INC.	 		 	AE4ASE, INC.
			
	/s/ David G. Lowe	 		 	/s/ David G. Lowe
	By: David G Lowe	 		 	By: David G Lowe
	Title:	 	CEO	 		 	Title:	 	CEO
	Date:	 	11/13/14	 		 	Date:	 	11/13/14

  

									
	AE5ASE, INC.	 		 	AE6ASE, INC.
			
	/s/ David G. Lowe	 		 	/s/ David G. Lowe
	By: David G Lowe	 		 	By: David G Lowe
	Title:	 	CEO	 		 	Title:	 	CEO
	Date:	 	11/13/14	 		 	Date:	 	11/13/14

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  

					
	Sponsor: Aeglea	  	PI: George Georgiou	  	SRA Amendment No. 1
	The University of Texas at Austin	  	18	  	Agreement No. UTA13-001113

 Attachment A-1, Statement of Work 

Aeglea LLC will sponsor research in the laboratory of Professor George Georgiou, Departments of Chemical Engineering, Biomedical Engineering
and Molecular Biosciences on the engineering, optimization and initial animal validation of human enzyme therapeutics for the following purposes: 

Specific Aim 1. The systemic depletion of amino acids for cancer therapy. 

Specific Aim 2. Enzyme replacement for the treatment of patients having inborn metabolic defects, primarily but not limited to diseases
stemming from mutations impacting physiological enzymatic function. 
 It is anticipated that during the 2014-2015 fiscal year most of the
work to be carried out at the Georgiou lab will focus primarily, but not exclusively on Specific Aim 1. During this period the Georgiou lab will seek to focus on the engineering and optimization of the following enzymes: 

 

	 	1.1.	[***] 

  

	 	1.2.	[***] 

  

	 	1.3.	[***] 

  

	 	1.4.	[***]: 

  

	 	a)	Engineering enzymes having high catalytic proficiency (kcat/Km) and substrate specificity, as required for human therapeutic purposes. 

 

	 	b)	High thermodynamic stability in vitro and in physiological fluids, namely in human serum 

  

	 	c)	Formulation of the enzymes from 1.1-1.4 for prolonged circulation half-life by conjugation or polyethylene glycol or similar means. 

  

	 	d)	Development of lab scale processes for the preparative production of these enzymes at scale. 

  

	 	e)	In vitro studies to evaluate the effect of the engineered enzymes from 1.1-1.4 on cancer cell lines and, if available on primary tumor cells. 

 

	 	f)	Evaluation of the efficacy of the enzymes from 1.1-1.4 above in xenograft tumor mouse models, as applicable. 

  

	 	g)	Mechanistic studies as might be required to support Investigative New Drug applications (IND) to the FDA specifically addressing the impact of enzymes from 1.1-1.4 on cell cycle arrest, autophagy and apoptotic death of
cancer cells. 

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  

					
	Sponsor: Aeglea	  	PI: George Georgiou	  	SRA Amendment No. 1
	The University of Texas at Austin	  	19	  	Agreement No. UTA13-001113

 Amendment 01 

To Sponsored Research Agreement UTA13-001113 (“Agreement”) 

This Amendment to the Sponsored Research Agreement (“Agreement”) is made between The University of Texas at Austin, Austin, Texas
(“University”), an institution of higher education created by the Constitution and law of the State of Texas under The University of Texas System (“System”) and Aeglea Development Company, Inc., AERase, Inc., AEMase, Inc.,
AECase, Inc., AE4ase, Inc., AE5ase, Inc., and AE6ase, Inc., all Delaware C corporations with their principal place of business at 815 A Brazos St., #101, Austin TX 78701 (each a “Sponsor Entity” and collectively, “Sponsor”).
Aeglea Development Company, Inc. may be referred to herein as the “Funding Sponsor” or “Sponsor Entity” as appropriate. 

The purpose of this Amendment: 
 Sponsor
and University desire to amend the terms of the Agreement to extend the performance period at no cost as set forth below. 
 This
Agreement is modified by mutual agreement of the Parties as follows: 
 1. Article 2. Research Program, paragraph 2.2 is hereby amended to read: 

The Research Program shall be performed during the period from the Effective Date through and including January 15, 2015. Funding Sponsor
shall have the option of extending the Research Program under mutually agreeable support terms. 
 All other terms and conditions of this
Agreement remain unchanged. 
 IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their duly authorized representatives. 

 

									
	THE UNIVERSITY OF TEXAS AT AUSTIN	 		 	AEGLEA DEVELOPMENT COMPANY, INC.
			
	/s/ Ty Helpinstill	 		 	/s/ David G. Lowe
	By: Ty Helpinstill	 		 	By: David G Lowe
	Title:	 	Assoc Dir, Office of Industry Engagement	 		 	Title:	 	CEO
	Date:	 	24 September 2014	 		 	Date:	 	9/23/14

  

									
	AERASE, INC.	 		 	AEMASE, INC.
			
	/s/ David G. Lowe	 		 	/s/ David G. Lowe
	By: David G Lowe	 		 	By: David G Lowe
	Title:	 	CEO	 		 	Title:	 	CEO
	Date:	 	9/23/14	 		 	Date:	 	9/23/14

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

									
	AECASE, INC.	 		 	AE4ASE, INC.
			
	/s/ David G. Lowe	 		 	/s/ David G. Lowe
	By: David G Lowe	 		 	By: David G Lowe
	Title:	 	CEO	 		 	Title:	 	CEO
	Date:	 	9/23/14	 		 	Date:	 	9/23/14

  

									
	AE5ASE, INC.	 		 	AE6ASE, INC.
			
	/s/ David G. Lowe	 		 	/s/ David G. Lowe
	By: David G Lowe	 		 	By: David G Lowe
	Title:	 	CEO	 		 	Title:	 	CEO
	Date:	 	9/23/14	 		 	Date:	 	9/23/14

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

 Amendment 3 

To Sponsored Research Agreement UTA13-001113 (“Agreement”) 

Between 
 The University
of Texas at Austin (“UT”) 
 And 

Aeglea Development Company, Inc., AERase, Inc., AEMase, Inc., AECase, Inc., AE4ase, 

Inc., AE5ase, Inc., and AE6ase, Inc. (each a “Sponsor Entity” and collectively, “Sponsor”) 

The purpose of this Amendment: 
 To
correct the numeration of the prior amendment and increase the limitation of funding to perform additional research, and restructure payment terms, 

This Sponsored Research Agreement is modified by mutual agreement of the Parties as follows: 

 

	1.	“Amendment 1” executed between the parties on November 13, 2014, is restated as and shall hereafter be known as “Amendment 2.” 

 

	2.	Attachment A, Research Program, is appended with the statement of work included with this Amendment 3 as Attachment A-2, attached hereto. 

 

	3.	Section 2.2 is hereby replaced with the following: “The Research Program shall be performed during the period from the Effective Dale through and including August 31, 2016 (the “Research Term”).
Funding Sponsor shall have the option of extending the Research Program under mutually agreeable support terms. 

  

	4.	Section 3.2, first paragraph and the payment schedule, are hereby replaced with the following: “As consideration for the performance by University of its obligations under this Agreement, Funding Sponsor will
pay the University an amount equal to its reasonable, documented expenditures and reasonable overhead (such overhead to not exceed the rate set forth in University’s indirect rate agreement with the U.S. Federal Government) in conducting the
Research Program subject to a maximum expenditure limitation of $1,323,752, an increase of $562,500 over the currently funded amount of $761,252, provided that in any and all events, the amounts charged by University shall not, without Funding
Sponsor’s prior written consent, exceed the amount of the maximum expenditure limitation. Payments shall be made as follows (subject to the possible later return of funds if uncommitted and unexpended, under Section 3.3):

  

	 	a)	$573,752 - PAID TO DATE (consisting of $386,252 under the initial Agreement and $187,500 under Amendment 2) 

  

	 	b)	$375,000 due upon execution of this Amendment, which shall include the $93,750 previously due June 30, 2015 under Amendment 2, invoice issued on June 29, 2015 

 

	 	c)	$187,500 due on January 31, 2016, invoice to be issued by December 31, 2015 

  

	 	d)	$187,500 due on April 30, 2016, invoice to be issued by March 31, 2016 

  

					
	 Sponsor: Aeglea
	 	PI: George Georgiou	 	SRA Amendment No. 3
	 The University of Texas at Austin
	 	Page 1 of 5	 	Agreement No. UTA13-001113
	[***] Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933,
as amended. Confidential treatment has been requested with respect to this information.

	5.	Section 3.5 is hereby amended to change the Sponsor contact information for University invoices to: accounting@aegleabio.com, and for questions: Jo O’Keefe, 512-900-3662, (Alternate contacts: April
Duley, aduley@aegleabio.com, 512-900-3826, and Charles York, cyork@aegleabio.com, 512-394-4188) 

 All other terms and
conditions of this Sponsored Research Agreement remain unchanged. 
  

									
	THE UNIVERSITY OF TEXAS AT AUSTIN	 		 	AEGLEA DEVELOPMENT COMPANY, INC.
			
	 /s/ Ty Helpinstill
	 		 	 /s/ Charles York

	By:	 	Ty Helpinstill	 		 	By:	 	Charles York
	Title:	 	Assoc Dir, Office of Industry Engagement	 		 	Title:	 	Sr. Vice President of Finance + Accounting
	Date:	 	3 Aug 2015	 		 	Date:	 	10 Aug 2015
			
	AERASE, INC.	 		 	AEMASE, INC.
			
	 /s/ Charles York
	 		 	 /s/ Charles York

	By:	 	Charles York	 		 	By:	 	Charles York
	Title:	 	Sr. Vice President of Finance + Accounting	 		 	Title:	 	Sr. Vice President of Finance + Accounting
	Date:	 	10 Aug 2015	 		 	Date:	 	10 Aug 2015
			
	AECASE, INC.	 		 	AE4ASE, INC.
			
	 /s/ Charles York
	 		 	 /s/ Charles York

	By:	 	Charles York	 		 	By:	 	Charles York
	Title:	 	Sr. Vice President of Finance + Accounting	 		 	Title:	 	Sr. Vice President of Finance + Accounting
	Date:	 	10 Aug 2015	 		 	Date:	 	10 Aug 2015
			
	AE5ASE, INC.	 		 	AE6ASE, INC.
			
	 /s/ Charles York
	 		 	 /s/ Charles York

	By:	 	Charles York	 		 	By:	 	Charles York
	Title:	 	Sr. Vice President of Finance + Accounting	 		 	Title:	 	Sr. Vice President of Finance + Accounting
	Date:	 	10 Aug 2015	 		 	Date:	 	10 Aug 2015

  

					
	 Sponsor: Aeglea
	 	PI: George Georgiou	 	SRA Amendment No. 3
	 The University of Texas at Austin
	 	Page 2 of 5	 	Agreement No. UTA13-001113
	[***] Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933,
as amended. Confidential treatment has been requested with respect to this information.

 Attachment A-2 

Statement of Work 
 Aeglea
LLC will sponsor research in the laboratory of Professor George Georgiou, Departments of Chemical Engineering, Biomedical Engineering and Molecular Biosciences on the engineering, optimization and initial animal validation of human enzyme
therapeutics for the following purposes: 
 Specific Aim 1. The systemic depletion of amino acids for cancer therapy. 

Specific Aim 2. Enzyme replacement for the treatment of patients having inborn metabolic defects, primarily but not limited to diseases
stemming from mutations impacting physiological enzymatic function. 
 During the 2014-2015 fiscal year the Georgiou lab has been focusing on Specific Aim
1; the engineering and optimization of the following enzymes: 
  

	 	1.1.	[***] 

	 	1.2.	[***] 

	 	1.3.	[***] 

	 	1.4.	[***] 

 It is anticipated that during the 2015-2016 fiscal year most of the work to be
carried out at the Georgiou lab will focus primarily on Specific Aim 1 but also Specific Aim 2. During this period the Georgiou lab will seek to focus on the engineering and optimization of the following enzyme programs: 

1.1. [***] 
 1.2. [***] 

1.3. [***] 
 2.1. Specific Aim 1 

2.2. Specific Aim 2 
 2.4. Specific Aim 3 

Studies to be performed under 1.1-2.4 may include: 
  

	•	 	Recombination (DNA shuffling) and screening of variants identified from pfunkel library: 

  

	 	–	[***] 

  

	 	–	[***] 

  

	 	–	[***] 

  

	•	 	Biophysical studies aimed at [***] 

  

					
	 Sponsor: Aeglea
	 	PI: George Georgiou	 	SRA Amendment No. 3
	 The University of Texas at Austin
	 	Page 3 of 5	 	Agreement No. UTA13-001113
	[***] Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933,
as amended. Confidential treatment has been requested with respect to this information.

	 	–	Excipients: survey of buffer, pH, excipient conditions for effect on activity, aggregation etc. 

  

	 	–	Preliminary stress tests 

  

	 	•	 	Develop assays for transsulfuration enzyme expression 

  

	 	•	 	Proof of concept experiments in triple negative breast cancer 

  

	1.2	[***] program 

  

	 	•	 	[***] 

  

	1.3.	[***] 

  

	 	•	 	1.3.1 Proof of concept studies for immune-oncology studies. 

  

	 	•	 	[***] 

  

	 	•	 	1.3.2. [***] 

  

	 	•	 	1.3.3. [***] 

  

	 	•	 	1.3.4. [***] 

 2. SRA expansion 

The purpose of the SRA expansion is to further support activities outlined in the initial 2015-2016 scope of work and to provide expanded research for: 

 

	 	a)	the treatment of patients having inborn metabolic defects, primarily but not limited to diseases stemming from mutations impacting physiological enzymatic function 

 

	 	b)	the treatment of patients with solid or hematologic malignancies 

 Specific Aim 1: [***] 

Specific Aim 2: [***] 
 Specific Aim 3.
[***] 
 2.1 Specific Aim 1: 
 Recombination (DNA
shuffling) and screening of variants identified from a scanning saturation library of [***] 
  

	 	–	[***] 

  

					
	 Sponsor: Aeglea
	 	PI: George Georgiou	 	SRA Amendment No. 3
	 The University of Texas at Austin
	 	Page 4 of 5	 	Agreement No. UTA13-001113
	[***] Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933,
as amended. Confidential treatment has been requested with respect to this information.

	 	–	Tertiary screening for expression, kinetics and stability (purified protein) 

  

	 	•	 	Biophysical studies of selected variants 

  

	 	•	 	[***] 

  

	 	•	 	PD study in mice to evaluate Cystine & Cysteine levels following single dose administration 

 2.2
Specific Aim 2: 
  

	 	•	 	Method development to support analysis of [***] in animal models (see below) 

  

	 	•	 	Evaluation of [***] 

  

	 	•	 	[***] 

  

	 	•	 	[***]. 

 2.3 Specific Aim 3: 
  

	 	•	 	[***] 

  

	 	•	 	[***] 

  

	 	•	 	Other scaffold TBD 

  

					
	 Sponsor: Aeglea
	 	PI: George Georgiou	 	SRA Amendment No. 3
	 The University of Texas at Austin
	 	Page 5 of 5	 	Agreement No. UTA13-001113
	[***] Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933,
as amended. Confidential treatment has been requested with respect to this information.

 Amendment 4 

To Sponsored Research Agreement UTA13-001113 (“Agreement”) 

Between 
 The University
of Texas at Austin (“UT”) 
 And 

Aeglea BioTherapeutics, Inc., Aeglea Development Company, Inc., AERase, Inc., AEMase, 

Inc., AECase, Inc., AE4ase, Inc., AE5ase, Inc., and AE6ase, Inc. (each a “Sponsor Entity” 

and collectively, “Sponsor”) 

 

The purpose of this Amendment: 

To name a new sponsor entity and to change the designated Funding Sponsor under the Agreement. 

 

This Sponsored Research Agreement is modified by mutual agreement of the parties as follows: 

 

	1.	Aeglea BioTherapeutics, Inc. is hereby added to the Agreement as a new Sponsor Entity. 

  

	2.	All rights and obligations of Funding Sponsor referred to in the Agreement are hereby assigned from Aeglea Development Company, Inc. to Aeglea BioTherapeutics, Inc., who is designated as the new Funding Sponsor under
the Agreement. 

  

	3.	Section 13.3 is hereby amended to change Sponsor contact information to: 

 Aeglea
BioTherapeutics, Inc. 
 901 S. MoPac Expressway, Suite 250 

Barton Oaks Plaza One 
 Austin, TX
78746 
 Attn: Charles N. York II 

Phone: [phone] 
 E-Mail: [email]

  

All other terms and conditions of this Sponsored Research Agreement remain unchanged. 

 

									
	THE UNIVERSITY OF TEXAS AT AUSTIN	 		 	AEGLEA DEVELOPMENT COMPANY, INC.
			
	/s/ Bill Catlett	 		 	/s/ Charles York
	By:	 	Bill Catlett	 		 	By:	 	Charles N. York II
	Title:	 	Director, Office of Industry Engagement	 		 	Title:	 	Chief Financial Officer
					
	Date:	 	05 NOV 15	 		 	Date:	 	04 NOV 2015

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  

					
	Sponsor: Aeglea	  	PI: George Georgiou	  	SRA Amendment No. 4
	The University of Texas at Austin	  	Page 1 of 2	  	Agreement No. UTA13-001113

									
	AERASE, INC.	 		 	AEMASE, INC.
			
	/s/ Charles York	 		 	/s/ Charles York
	By:	 	Charles N. York II	 		 	By:	 	Charles N. York II
	Title:	 	Chief Financial Officer	 		 	Title:	 	Chief Financial Officer
					
	Date:	 	04 NOV 2015	 		 	Date:	 	04 NOV 2015
			
	AECASE, INC.	 		 	AE4ASE, INC.
			
	/s/ Charles York	 		 	/s/ Charles York
	By:	 	Charles N. York II	 		 	By:	 	Charles N. York II
	Title:	 	Chief Financial Officer	 		 	Title:	 	Chief Financial Officer
					
	Date:	 	04 NOV 2015	 		 	Date:	 	04 NOV 2015
			
	AE5ASE, INC.	 		 	AE6ASE, INC.
			
	/s/ Charles York	 		 	/s/ Charles York
	By:	 	Charles N. York II	 		 	By:	 	Charles N. York II
	Title:	 	Chief Financial Officer	 		 	Title:	 	Chief Financial Officer
					
	Date:	 	04 NOV 2015	 		 	Date:	 	04 NOV 2015

  

			
	AEGLEA BIOTHERAPEUTICS, INC.
	
	/s/ Charles York
	By:	 	Charles N. York II
	Title:	 	Chief Financial Officer
		
	Date:	 	04 NOV 2015

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  

					
	Sponsor: Aeglea	  	PI: George Georgiou	  	SRA Amendment No. 4
	The University of Texas at Austin	  	Page 2 of 2	  	Agreement No. UTA13-001113

 Amendment 5 

To Sponsored Research Agreement UTA13-001113 (“Agreement”) 

Between 
 The University
of Texas at Austin (“UT”) 
 And 

Aeglea BioTherapeutics, Inc., Aeglea Development Company, Inc., AERase, Inc., AEMase, 

Inc., AECase, Inc., AE4ase, Inc., AE5ase, Inc., and AE6ase, Inc. (each a “Sponsor Entity” 

and collectively, “Sponsor”) 

 

The purpose of this Amendment: 

To increase the limitation of funding in order to purchase equipment to be used to perform the research. 

 

This Sponsored Research Agreement is modified by mutual agreement of the parties as follows: 

 

	1.	Attachment A, Research Program, is appended with the listing of equipment to be purchased and used to perform the Research Program, and included with this Amendment 5 as Attachment A-3, attached hereto.

  

	2.	Section 3.2, first paragraph and the payment schedule, are hereby replaced with the following: “As consideration for the performance by University of its obligations under this Agreement, Funding Sponsor will
pay the University an amount equal to its reasonable, documented expenditures and reasonable overhead (such overhead to not exceed the rate set forth in University’s indirect rate agreement with the U.S. Federal Government) in conducting the
Research Program subject to a maximum expenditure limitation of $1,406,211, an increase of $82,459 over the currently funded amount of $1,323,752, provided that in any and all events, the amounts charged by University shall not, without Funding
Sponsor’s prior written consent, exceed the amount of the maximum expenditure limitation. Payments shall be made as follows (subject to the possible later return of funds if uncommitted and unexpended, under Section 3.3):

  

	 	a)	$948,752 — PAID TO DATE 

  

	 	b)	$187,500 due on January 31, 2016, invoice issued on January 5, 2016 

  

	 	c)	$82,459 due upon execution of this Amendment and within fourteen (14) days of receipt 

  

	 	of	an undisputed invoice sent via email to the address in Article 3.5 

  

	 	d)	$187,500 due on April 30, 2016, invoice to be issued by March 3 I , 2016 

 

All other terms and conditions of this Sponsored Research Agreement remain unchanged. 

[Signature Page Follows] 
  

 
 [***]Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect
to this information. 

  

					
	Sponsor: Aeglea	  	PI: George Georgiou	  	SRA Amendment No. 5
	The University of Texas at Austin	  	Page 1 of 9	  	Agreement No. UTA13-001113

									
	THE UNIVERSITY OF TEXAS AT AUSTIN	 		 	AEGLEA DEVELOPMENT COMPANY, INC.
			
	/s/ Ty Helpinstill	 		 	/s/ Charles York
	By:	 	Ty Helpinstill, Assoc. Director	 		 	By:	 	Charles N. York II
	Title:	 	Office of Industry Engagement	 		 	Title:	 	Chief Financial Officer
	Date:	 	6 Jan 2016	 		 	Date:	 	07 Jan 2016
			
	AERASE, INC.	 		 	AEMASE, INC.
			
	/s/ Charles York	 		 	/s/ Charles York
	By:	 	Charles N. York II	 		 	By:	 	Charles N. York II
	Title:	 	Chief Financial Officer	 		 	Title:	 	Chief Financial Officer
	Date:	 	07 Jan 2016	 		 	Date:	 	07 Jan 2016
			
	AECASE, INC.	 		 	AE4ASE, INC.
			
	/s/ Charles York	 		 	/s/ Charles York
	By:	 	Charles N. York II	 		 	By:	 	Charles N. York II
	Title:	 	Chief Financial Officer	 		 	Title:	 	Chief Financial Officer
	Date:	 	07 Jan 2016	 		 	Date:	 	07 Jan 2016
			
	AE5ASE, INC.	 		 	AE6ASE, INC.
			
	/s/ Charles York	 		 	/s/ Charles York
	By:	 	Charles N. York II	 		 	By:	 	Charles N. York II
	Title:	 	Chief Financial Officer	 		 	Title:	 	Chief Financial Officer
	Date:	 	07 Jan 2016	 		 	Date:	 	07 Jan 2016
				
	AEGLEA BIOTHERAPEUTICS, INC.	 		 		 	
				
	/s/ Charles York	 		 		 	
	By:	 	Charles N. York II	 		 		 	
	Title:	 	Chief Financial Officer	 		 		 	
	Date:	 	07 Jan 2016	 		 		 	

  
  

[***]Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect to this information. 

  

					
	Sponsor: Aeglea	  	PI: George Georgiou	  	SRA Amendment No. 5
	The University of Texas at Austin	  	Page 2 of 9	  	Agreement No. UTA13-001113

 Attachment A-3: Equipment 

[***] [Redacted Seven Pages] 
  

 
 [***]Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Confidential treatment has been requested with respect
to this information.

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