Document:

EX-10.2

 Exhibit 10.2 

EXAGEN DIAGNOSTICS, INC. 

2013 STOCK OPTION PLAN 

1. Purposes of the Plan. This purpose of this Stock Option Plan (as more fully defined as “Plan” below) is to provide
incentives to attract, retain and motivate eligible persons whose present and potential contributions are important to the success of the Corporation (as defined below). The Plan provides for options, which qualify as incentive stock options
pursuant to Section 422 of the Code as well as options which do not so qualify. 
 2. Effective Date and Duration of Plan. The
Plan will become effective immediately upon its adoption by the Board of Directors of the Corporation. The Plan is subject to approval by the shareholders of the Corporation within 12 months before or after the date the Board of Directors adopts the
Plan. The Plan will terminate on December 31, 2022, or at an earlier time as the Board of Directors may fix, and no Option will be granted under the Plan after that date. An Option outstanding at the date of termination will remain in effect
until it is exercised, expires, or is otherwise canceled, settled or terminated as provided herein or in the applicable Stock Option Agreement. 

3. Definitions. The following terms are used throughout the Plan, and whenever used in the capitalized form, except as otherwise
expressly provided, the term will be deemed to have the following meaning: 
 a. “Affiliate” means any individual,
corporation, partnership, association, joint-stock company, trust, unincorporated association or other entity (other than the Corporation) that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under
common control with the Corporation. 
 b. “Board of Directors” means the Board of Directors of the Corporation, or any
committee of the Board of Directors established and authorized by the Board of Directors to carry out the obligations of the Board of Directors under the Plan. 

c. “Cause” means: 

(1) any act or omission defined in any employment agreement or arrangement in existence on the date of Termination between the Participant
and the Corporation or Affiliate which permits the Corporation or Affiliate to terminate the employment agreement or arrangement between the Participant and the Corporation or Affiliate, for cause, or 

(2) in the event there is no employment agreement or arrangement in existence between the Participant and the Corporation or Affiliate at
Termination, or if the term “cause” is not defined in the employment agreement or arrangement, “Cause” means (a) any act or omission of a criminal nature, or any act of malfeasance or wrongdoing affecting the Corporation or
an Affiliate the result of which is detrimental to the interests of the Corporation or an Affiliate; (b) the material breach of a fiduciary duty owing to the Corporation or Affiliate, including without limitation, fraud and embezzlement;
(c) conduct or the omission of conduct on the part of the Participant which constitutes a material breach of any statutory or common-law duty of loyalty to the Corporation or its Affiliate; (d) the breach of any covenant not to compete

  
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with the Corporation or its Affiliate; or (e) engaging in any act of disloyalty or any conduct clearly tending to bring discredit upon the Corporation or its Affiliate, or any conduct which
causes or reasonably could cause substantial harm to the Corporation or its Affiliate, as determined by the Board of Directors in their sole discretion. 

d. “Common Stock” means the shares of the common stock of the Corporation that are the subject of this Plan under Paragraph
4, whether now issued or to be issued in the future, and any other stock or security resulting from adjustments made in Paragraph 16. 
 e.
“Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder. 
 f.
“Corporation” means Exagen Diagnostics, Inc., and includes any successor or assignee corporation(s) into which the Corporation may be merged, changed or consolidated, any corporation for whose securities the securities of the
Corporation will be exchanged, and any assignee of or successor to substantially all of the assets of the Corporation. 
 g.
“Disability” means “disability” as defined in Section 22(e)(3) of the Code. 
 h. “Fair Market
Value” means the price per share of Common Stock on any relevant date as determined in accordance with the following provisions: 

(1) If the Common Stock is at the time listed on any stock exchange, then the Fair Market Value shall be the closing selling price per share
of Common Stock on the date in question on the stock exchange determined by the Board of Directors to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published
in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 

(2) If the Common Stock is at the time not listed on any stock exchange, then the Fair Market Value shall be determined by the Board of
Directors in accordance with Section 409A of the Code after taking into account such factors as the Board of Directors shall deem appropriate. 

i. “Greater Than 10% Shareholder” means a Participant who at the time of the grant of the Option owns more than ten percent
of the total combined voting power of all classes of stock of the Corporation or its Affiliates after taking into account the constructive ownership rules of Section 424(d) of the Code. For purposes of this definition, a Participant is
considered to own the stock owned, directly or indirectly, by or for the Participant’s, spouse, ancestors (such as parents and grandparents), lineal descendants, and siblings (whether by whole or half blood), as well as a proportional interest
of stock owned, directly or indirectly, by or for a corporation, partnership, trust, or estate of which the Participant is a shareholder, partner, or beneficiary. 

j. “Incentive Stock Option” means an Option that is intended to qualify as an “incentive stock option” under
Section 422 of the Code or any successor provision thereto. 

  
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 k. “Management Objectives” means the performance objectives established pursuant
to this Plan, which may include, but not be limited to, (1) objectives relating to Corporation-wide performance or (2) objectives relating to the performance of a Participant, the division, department or function within the Corporation or
an Affiliate by which a Participant is employed or with respect to which the Participant provides consulting services. The Board of Directors may adjust Management Objectives and the related minimum acceptable level of achievement if, in the sole
judgment of the Board of Directors, events or transactions have occurred after the Option Grant Date that are unrelated to the performance of the Participant and result in distortion of the Management Objectives or the related minimum acceptable
level of achievement. 
 l. “Nonqualified Option” means an Option that is not intended to qualify as an Incentive Stock
Option. 
 m. “Option” means an Incentive Stock Option or Nonqualified Option to purchase Common Stock in the Corporation
granted under the Plan. 
 n. “Option Grant Date” means the date on which the Board of Directors authorizes the grant to a
Participant of an Option. 
 o. “Option Price” means the price at which the Corporation’s Common Stock may be
purchased under an Option as provided in the applicable Stock Option Agreement. 
 p. “Participant” means a person who is
selected by the Corporation to receive an Option. 
 q. “Plan” means the Exagen Diagnostics, Inc. 2013 Stock Option Plan,
as set forth in this document and as amended from time to time. 
 r. “Representative” means, if the Participant is living,
but incapacitated, the person or entity acting as the conservator, guardian or temporary guardian of the Participant or as his attorney-in-fact or agent under a valid durable power of attorney. If the Participant has died, then
“Representative” means: (a) the person or entity acting as the personal representative of a Participant’s estate pursuant to the last will and testament of a Participant or appointed by a judge in an in testate probate action,
or, if applicable, (b) the person or entity which is the beneficiary of the Participant. 
 s. “Stock Option
Agreement” means an agreement entered into between a Participant and the Corporation as described in Paragraphs 7 and 8. 
 t.
“Stock Restriction Agreement” means an agreement in the form prescribed by the Corporation whereby stock of the Corporation is subject to certain restrictions and the Corporation is given certain rights to require the sale of stock
upon the occurrence of certain events or, if a restriction is violated. 
 u. “Termination” means, for purposes of this
Plan with respect to a Participant, that the Participant no longer is providing services to the Corporation as an employee, officer, director or consultant. 

  
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 v. “Transfer” means any sale, gift, assignment, distribution, conveyance,
pledge, hypothecation, encumbrance, or other transfer of title, whether by operation of law or otherwise. 
 4. Stock Subject to the
Plan. 
 a. Subject to adjustment as provided in Paragraph 16, an aggregate of 1,708,080 shares of the Corporation’s common stock
will be available for issuance pursuant to the grant of Options. The shares will be authorized and either unissued or issued shares of common stock of the Corporation that have been reacquired by the Corporation and held as treasury shares. Options
which remain unissued at the termination of this Plan will cease to be reserved for the purpose of the Plan, but until termination of the Plan, the Corporation will at all times reserve a sufficient number of shares of common stock of the
Corporation to meet the requirements of the Plan. 
 b. If any Option granted is subsequently cancelled, forfeited, expires or is terminated
for any reason without having been exercised, any shares of Common Stock subject to such Option will again be available and may thereafter be granted or otherwise applied under this Plan. 

5. Term of Options. Options will be granted for such terms as the Board of Directors will determine, but no Incentive Stock Option will
be exercisable after ten years from the Option Grant Date. Notwithstanding the above, if an Incentive Stock Option is granted to a Participant who is a Greater Than 10% Shareholder at the time the Incentive Stock Option is granted, the term with
respect to such Incentive Stock Option will not be in excess of five years from the Option Grant Date. The term of any Incentive Stock Option may be subject to termination prior to the expiration of the ten-year period (or five-year period in the
case of a Greater Than 10% Shareholder) as provided in the Plan or applicable Stock Option Agreement. 
 6. Eligible Employees;
Successive Grants. Incentive Stock Options may be granted only to employees (including officers and directors who are also employees) of the Corporation. Nonqualified Options may be granted to employees, officers, directors and consultants of
the Company, provided that such consultants render bona fide services not in connection with the offer and sale of securities in a capital-raising transaction. The Corporation, by action of the Board of Directors and subject to the provisions of the
Plan, may grant Options to individuals selected by the Board of Directors of such number of shares as may be determined by the Board of Directors. In making this selection the Board of Directors may give consideration to the functions and
responsibilities of the respective individual, the present and potential contributions of such individual to the Corporation, the value of the individual’s service to the Corporation and such other factors deemed relevant by the Board of
Directors in its sole discretion. Successive grants may be made to the same Participant regardless of whether any Options previously granted to the Participant remain unexercised and outstanding. 

7. Granting of Option. The Corporation in its discretion may require as a condition of the granting of an Option that a Participant
make any representation or warranty to the Corporation as the Board of Directors may deem appropriate, necessary, or required by any applicable law or regulation. This may include, but not be limited to, a representation or

  
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warranty that the shares are being acquired only for investment and without any present intention to sell or distribute such shares. An Option will be deemed to have been granted only when
(i) the Board of Directors has designated the Participant to receive an Option and determined the number of shares to be granted and the exercise price of the Option and (ii) a Stock Option Agreement has been executed by the Corporation
and delivered or mailed to the selected individual. Nothing contained in the Plan or any resolution adopted or to be adopted by the Board of Directors, and no action taken by the Board of Directors will constitute the granting of any Option without
the execution by the Corporation of a Stock Option Agreement. In addition, any grants of Options will be subject to the following conditions: 

a. Each grant shall specify the conditions, if any, under which the Option shall become exercisable including, but not limited to, the period
or periods of continuous employment, or continuous engagement of the consulting services, of the Participant by the Corporation or an Affiliate, or the achievement of Management Objectives, that are necessary before the Option, or installments
thereof, shall become exercisable, and any grant may provide for the acceleration of the exercisability of an Option, including, without limitation, in the event of a change in control of the Corporation or other similar transaction or event. 

b. Options granted may be Nonqualified Options, Incentive Stock Options, or combinations thereof, and the type of Option granted shall be set
forth in the applicable Stock Option Agreement. 
 c. The aggregate Fair Market Value of the Common Stock subject to Incentive Stock
Options, determined as of the Option Grant Date, which are first exercisable by a Participant during any calendar year under this Plan (or any other stock option plan required to be taken into account under Section 422(d) of the Code) shall not
exceed $100,000. To the extent that the aggregate Fair Market Value of the Common Stock to which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under all plans of the Corporation and its
Affiliates) exceeds $100,000, such Incentive Stock Options will be treated as Nonqualified Options. 
 8. Acceptance of Option by
Participant. Any person selected to receive an Option must elect to accept the Option under this Plan within ten business days after the date on which the Stock Option Agreement executed by the Corporation has been delivered or mailed to them.
The person selected may elect to accept such Option by executing and delivering a copy of the Stock Option Agreement to the Corporation, and will at that time become a “Participant.” No Option granted may be exercised prior to such
acceptance. If an Option is not accepted with the applicable ten-business day period, the Option will expire automatically at the end of the ten-day period, unless extended in writing by the President of the Corporation, and the person selected to
receive such Option shall have no further rights with respect to that Option. 
 9. Option Price. The price per share of Common Stock
purchasable under Options granted pursuant to the Plan may be equal to or greater than the Fair Market Value on the Option Grant Date, provided, however, that the Option Price with respect to each Incentive Stock Option shall not be less than 100%
(or 110% in the case of a Greater Than 10% Shareholder) of the Fair Market Value on the Option Grant Date. The full Option Price for the shares purchased must be paid when the Option is exercised. 

  
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 10. Exercise of Option in Installments. The Board of Directors may provide that an Option
will vest over time and become exercisable in one or more installments. If an Option grant provides for the vesting of the Option in installments, a Participant will have the right, after the Option has been granted and accepted by the Participant
as provided in the Plan, to exercise the Option and purchase from the Corporation the related number of shares of Common Stock only to the extent that the Option has vested in accordance with the dates and times provided for by the Board of
Directors in the installment schedule included in the Stock Option Agreement. A Participant has no right whatsoever to exercise an Option, or any installment thereof, until the Option, or the installment thereof, has vested as provided in the Stock
Option Agreement. 
 11. Method of Exercising Option. Subject to the terms and conditions of the Plan, the Participant or
Representative may exercise an Option by delivery of written notice of intent to exercise the Option to the Corporation, at the corporate offices at 851 University Blvd SE, Suite 200, Albuquerque, NM, 87106. 

a. Each notice must state the election to exercise the Option and the number of shares which are being purchased, indicate in what name the
certificate will be issued (including joint tenancy with right of survivorship between the Participant and another person, if so opted and if permitted under the Stock Option Agreement and Stock Restriction Agreement), and will be signed by the
Participant or Representative exercising the Option and, if the Participant is married, by his or her spouse. If a Representative is exercising the Option, the Representative will attach proof, satisfactory to the Corporation, of such person’s
right to exercise the Option as the Representative of the Participant. Each notice will be accompanied by a check payable to the order of the Corporation for the total Option Price for the shares being purchased. If the Corporation is required to
withhold on account of any present or future tax imposed as a result of such exercise, the notice of exercise will be accompanied by a check payable to the order of the Corporation in the amount specified by the Corporation that is sufficient to
cover any taxes required to be withheld by the Corporation. 
 b. If the Board of Directors requires the execution of a Stock Restriction
Agreement, or other agreement, as a condition of exercise of an Option, the Stock Restriction Agreement, or other agreement, will be executed by the Participant or Representative and, if Participant is married, by his or her spouse before any
certificate for Common Stock is issued. 
 c. The Corporation will deliver the certificate representing the shares of Common Stock purchased
as soon as practicable after receipt of (i) the notice, (ii) the payment for the total Option Price and any applicable tax withholding, and (iii) the signed Stock Restriction Agreement or other agreement (if applicable). The
certificate evidencing the ownership of the Common Stock of the Corporation will be registered in the name of the person indicated in the notice, or if none, then in the name of the Participant or Representative. The certificate will be delivered to
the Participant or Representative as provided in the notice, or to others, if so provided in the notice. All shares of Common Stock that will be purchased upon the exercise of the Option as provided in the Plan will be fully paid and nonassessable.

 12. Nontransferabilitv of Options. Except as provided in the Plan or the Stock Option Agreement, no Participant, Representative,
or any other person or entity may Transfer an Option in any way (whether by operation of law or otherwise), other than by will or the laws of descent 

  
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and distribution. The Option is exercisable during a Participant’s lifetime only by the Participant or his Representative. The Option will not be subject to execution, attachment, or similar
process. Any attempted Transfer of an Option contrary to the provisions of the Plan or the Stock Option Agreement, and the levy, attachment, or any similar process upon the Option will be null and void and without effect. In the event of any
Transfer of the Option, or levy, attachment or similar process, the Corporation will have the right to terminate the Option by notice to that effect to the person entitled to exercise the Option under the Plan, provided that the termination of the
Option will not prejudice any rights or remedies which the Corporation may have under the Plan, the Stock Option Agreement, or otherwise. 

13. Termination. Unless otherwise specified in a Stock Option Agreement, in the event that a Participant is terminated: 

a. Any unexercised Incentive Stock Options held by the Participant must be exercised as follows: 

(1) Within twelve (12) months after Termination of Employment if such termination is the result of the Participant’s disability as
defined in Section 22(e)(3) of the Code and any such Option that is unexercised at the end of the twelve-month period will expire automatically, or 

(2) Within three (3) month after Termination, if such termination is for any reason other than the death or disability of the
Participant or as provided in Paragraph 13.b. below, and any such Option that is unexercised at the end of the three-month period will expire automatically. 

b. Notwithstanding any other provision of the Plan, unless otherwise provided in the applicable Stock Option Agreement, an Option (whether
vested or unvested) will terminate automatically if (i) the Participant’s Termination is for Cause or (ii) during any post-Termination period in which the Option may be exercised, the Participant engages in conduct that would have
constituted Cause. 
 14. Death of a Participant. If a Participant’s Termination is on account of the Participant’s death
(or the Participant dies within three months after a Termination other than for Cause), any Option held by the Participant may be exercised, to the extent that the Participant will have been entitled to do so on the date of the Participant’s
death, by the Participant’s Representative within twelve months of the date of the Participant’s death, unless such an Option expires earlier under the terms of the applicable Stock Option Agreement or the Plan. Any Option or portion
thereof which is not exercised at the end of the twelve-month period will expire automatically. 
 15. Administration of the Plan.
The Board of Directors of the Corporation will administer the Plan. Subject to the provisions of the Plan, the Board of Directors shall have full power, authority, and discretion to make such interpretations and determinations and to adopt, amend,
and rescind such rules and regulations for the administration of the Plan and Options, as it may deem necessary, desirable or convenient, in its sole discretion. Any interpretation or determination of the Board of Directors will be final and binding
upon all parties. 

  
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 a. Powers of the Board of Directors. In particular, the Board of Directors will have the
authority to determine the following: 
 (1) The persons who will be granted Options; 

(2) The number of Options to be made available; 

(3) The number of shares of Common Stock to be covered by each Option; 

(4) The Option Price, subject to the limits established in the Plan; 

(5) The times at which Options will be granted 

(6) The conditions on exercise of any Options; 

(7) Additional terms, conditions and restrictions to be included in Stock Option Agreements; 

(8) When or whether a Participant is disabled (based upon written opinions from two medical doctors); 

(9) Whether and for what reason an employee of the Corporation or an Affiliate has incurred a Termination; 

(10) Appointment and compensation of agents, counsel, auditors or other specialists to aid it in the discharge of its duties with respect to
the Plan; and 
 (11) Construction and interpretation of this Plan and any Stock Option Agreement and all other actions and determinations
deemed necessary or advisable for the administration of this Plan. 
 b. Authority to Require Conditions Precedent. The Board of
Directors may impose upon any and all Participants any conditions precedent to the receipt of Options under this Plan which it may deem appropriate to assure that the Corporation will secure the expected benefits from granting Options, including,
without limitation a requirement that a Participant agree to remain in the employ of the Corporation for a specified period or that a Participant agree in writing that, in the event the Participant ceases to be an employee, director, officer,
advisor or consultant of the Corporation for any reason, the Participant will not, for a specified period from the date of such cessation, engage in any activity or business which would be competitive with the business of the Corporation, or that
the Participant will not disclose any trade secrets of the Corporation. 
 c. Modifications to the Plan: The Corporation’s Board
of Directors may at any time and from time to time modify and amend the Plan in such manner as the Board of Directors deems advisable, but may not, without the approval of the Corporation’s shareholders, make any alteration in the Plan (except
as provided in Paragraph 16) which operates (i) to increase the total number of shares which may be issued under the Plan, (ii) to extend the term 

  
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during which Options may be granted under the Plan, or (iii) to reduce the Option price per share after the Option is granted. No notice to eligible employees, Participants, or
Representatives need be given by the Board of Directors upon a modification. The Board may not amend the Plan in any manner which would have the effect of preventing Incentive Stock Options issued under the Plan from being incentive stock options as
defined in Section 422 of the Code. Without any obligations to do so, the Board of Directors may amend any Option, without the consent of the Participant, as necessary to comply with applicable laws or to have such Option comply with the
requirements of Section 409A of the Code or an applicable exception thereto. 
 d. Termination of the Plan. The Board of
Directors may terminate the Plan at any time upon 30 days written notice to the Participants or Representatives of the date fixed for termination; provided, however. no such action shall deprive a Participant, without his or her consent, of any
Option granted pursuant to the Plan unless the termination of the Plan is a result of the occurrence of an event specified in Paragraph 16. Upon the occurrence of an event specified in Paragraph 16 and a decision by the Board of Directors to
terminate the Plan, the Participant or Representative may exercise Options at any time during the 30-day period specified in the preceding sentence or, if earlier, until the date on which the Option otherwise would expire by its terms, and all
Options (whether vested or unvested) shall expire automatically on the date that the Plan terminates. 
 16. Adjustments. 

a. Changes in Capital Structure: In the event that the outstanding shares of the Corporation’s Common Stock is changed by a stock
dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Corporation without consideration, then (a) the number of shares reserved for issuance
under this Plan, and (b) the Exercise Prices of and number of shares subject to outstanding Options will be proportionately adjusted, as determined by the Board of Directors in its sole discretion, subject to any required action by the Board of
Directors or the shareholders of the Corporation and compliance with applicable securities laws; provided, however, fractional shares will be rounded down to the nearest number of whole shares. 

b. Dissolution or Liquidation: In the event of the dissolution or liquidation of the Corporation, any Option granted under the Plan
will expire as of the date to be fixed by the Board of Directors pursuant to Paragraph 15.d. 
 c. Corporate Transaction: 

(1) The term “Corporate Transaction” will mean (i) a merger or consolidation in which securities possessing more than 50% of
the total combined voting power of the Corporation’s outstanding securities are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction or (ii) the sale, transfer or
other disposition of all or substantially all of the Corporation’s assets in complete liquidation or dissolution of the Corporation. 

(2) Except as otherwise set forth in a Stock Option Agreement, in the event of any Corporate Transaction, each outstanding Option shall
become fully vested and shall 

  
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be exercisable for the 30-day period immediately preceding the consummation of the Corporate Transaction; provided, however, that the exercise of any portion of an Option during such 30-day
period that would not have been vested but for this provision is contingent upon and subject to the consummation of the Corporate Transaction and such exercise and accelerated vesting pursuant to this paragraph will be rescinded if such Corporate
Transaction is not consummated. 
 (3) The Board of Directors shall have complete discretion to provide, on such terms and conditions as it
deems appropriate and without the consent of the Participant, to terminate an outstanding Option pursuant to a Corporate Transaction in exchange for a cash payment, to be made to the Participant, equivalent to the difference between (i) the
aggregate Fair Market Value of the shares of Common Stock subject to the Option immediately prior to the consummation of the Corporate Transaction and (ii) the aggregate Option Price for such shares. 

(4) Any Options that are outstanding as of the consummation of the Corporate Transaction shall expire automatically, except to the extent
Options are assumed by a successor to the Corporation or otherwise continued in effect pursuant to the terms of the Corporate Transaction. 

17. Participant’s Employment. Nothing in this Plan or related documents will be construed to create or imply any contract of
employment between a Participant and the Corporation, confer upon the Participant any right to continue in the employ of the Corporation, or right to continue to provide services to the Corporation, nor will it affect or restrict the right of the
Corporation to terminate such employment or services at any time. Unless otherwise expressly set forth in a separate employment agreement or other agreement between the Participant and the Corporation or an Affiliate, the employment of or engagement
to render services by a Participant is at-will, and the Participant or Corporation may terminate such employment or engagement at any time for any reason, with or without Cause. 

18. No Rights of Shareholder. No Participant or Representative will have rights as a shareholder with respect to any shares covered by
an Option until the date of issuance of a stock certificate for shares of Common Stock, following the proper exercise of an Option. No Participant or Representative will have rights with respect to dividends or other distributions for which a record
date is established prior to the date the stock certificate is issued. 
 19. No Obligation to Disclose. The Corporation will have no
duty or obligation to affirmatively disclose to an employee, Participant or Representative any material information regarding the Corporation at any time prior to or in connection with the grant or exercise of an Option. 

20. Restriction on Issuance of Shares. Each Option granted under the Plan will be subject to the requirement that if the Board of
Directors determines, in its sole discretion, that the listing, registration or qualification on any securities exchange or pursuant to any state or federal law, or the consent or approval of any governmental regulatory body is necessary or
desirable in connection with the granting of the shares covered by the Option or the purchase of such shares, then no Option may be exercised in whole or in part unless such listing, registration, qualification, consent or approval has been effected
or obtained free of any conditions not acceptable to the Board of Directors. 

  
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 21. Registration Under Securities Laws. The Common Stock, which is the subject of these
Options, has not been registered under the Securities Act of 1933. Therefore, all shares of stock issued upon exercise of an Option must be held for investment purposes. 

22. Legend. All shares of Common Stock issued pursuant to the Plan and the Stock Option Agreement will bear a legend stating the
following restriction or an abbreviation thereof: 
 “The shares of stock represented by this certificate (1) have not been
registered under the Securities Act of 1933 or under the securities laws of any state and may not be sold or transferred except upon such registration or upon receipt by the Corporation of an opinion of counsel satisfactory to the Corporation, that
registration is not required for such sale or transfer; and (2) are subject to certain restrictions upon the transfer thereof, and to certain rights and obligations, all as more specifically set forth in the Exagen Diagnostics, Inc. Stock
Option Plan and the Exagen Diagnostics, Inc. Stock Option Agreement. Copies of the Plan and the Stock Option Agreement are available for inspection at the registered office of the Corporation.” 

Shares of Common Stock issued under the Plan may bear such other legends or restrictions as the Board of Directors determines is necessary or advisable. 

23. Consultation With Advisors. Each Participant or Representative is expected to consult his own advisors with respect to the tax and
securities consequences of holding an Option and exercising an Option. 
 24. Indemnification. In addition to any other rights of
indemnification granted by a third party or by law, the Corporation will indemnify, defend and hold harmless the Board of Directors (collectively), and the individual members of the Board of Directors, against the reasonable expenses, (including
attorneys’ fees), actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or any threat thereof, or in connection with any appeal, to which they or any of them may be a party by reason of any act or
omission in connection with the Plan or any Option granted by them, and against all amounts paid by them in settlement thereof (provided such settlement is approved by legal counsel selected by the Corporation) or paid by them in satisfaction of a
judgment in any action, suit or proceeding, unless it is adjudged in such action, suit or proceeding that such indemnified party is liable for gross negligence or gross misconduct in the performance of his duties; provided, however, that within 60
days after institution of any such action, suit or proceeding the indemnified party may in writing elect to defend the same at its sole expense, and if such election is made, the Corporation will have no further liability or obligations to the
indemnified party under this paragraph. 
 25. Governing Law. The Plan will be governed by the law of the State of New Mexico (other
than its law respecting choice of law), and will be interpreted under, construed under and enforced pursuant to the internal laws of the state of New Mexico applicable to agreements made and to be performed wholly within the State of New Mexico.

 26. Severability. If any term, provision, covenant, paragraph, or condition of the 

  
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Plan, Stock Option Agreement or any other documents or materials relating to the Plan is held to be invalid, illegal, or unenforceable by any court or arbitrator of competent jurisdiction, as to
such jurisdiction, that provision shall be limited (“blue-penciled”) to the minimum extent necessary so that the Plan, Stock Option Agreement, document, or material, as applicable, shall otherwise remain enforceable in full force and
effect. To the extent such provision cannot be so modified, the offending provision shall, as to such jurisdiction, be deemed severable from the remainder of the Plan, Stock Option Agreement, document, or material, as applicable, and the remaining
provisions thereof shall be construed to preserve, to the maximum permissible extent, the intent and purposes thereof. 
 27. Binding
Effect. Any actions taken under the provisions of this Plan and any rules adopted by the Board of Directors will bind the Corporation and all recipients of Options pursuant to this Plan. This Plan will inure to the benefit of and be binding upon
the Corporation, its employees, and their respective successors, heirs and assigns. 
 28. Withholding and Taxes. To the extent that
the Corporation is required to withhold federal, state, local or foreign taxes in connection with any payment made or benefit realized by a Participant or other person under this Plan, and the amounts available to the Corporation for the withholding
are insufficient, it shall be a condition to the receipt of any such payment or the realization of any such benefit that the Participant or such other person make arrangements satisfactory to the Corporation for payment of the balance of any taxes
required to be withheld. The Corporation shall not be responsible for payment by any Participant of the proper amount of taxes relating to the grant or exercise of Options. The Corporation intends, but is not required to ensure, that Options issued
under the Plan are exempt from or in compliance in all respects with Section 409A of the Code and shall interpret and administer the Options in accordance with such intention. Notwithstanding any provision to the contrary, all liability
associated with participation in the Plan, including, without limitation, any liabilities imposed under Section 409A of the Code, shall be borne by the Participant. 

29. Certain Terminations of Employment or Consulting Services, Hardships and Approved Leaves of Absence. Notwithstanding any other
provision of this Plan to the contrary, in the event of a Termination by reason of death, disability, normal retirement, early retirement, with the consent of the Corporation, termination of employment or consulting services, as applicable, to enter
public service with the consent of the Corporation or leave of absence approved by the Corporation, or in the event of hardship or other special circumstances, of a Participant who holds an Option that is not immediately and fully exercisable, the
Board of Directors may take any action that it deems to be equitable under the circumstances or in the best interests of the Corporation, including without limitation, waiving or modifying any limitation or requirement with respect to any Option
under this Plan. 
 30. Use of Proceeds. Any cash proceeds received by the Corporation from the sale of Common Stock under the Plan
shall be used for any corporate purpose. 

  
 12 

 Exagen Corporation 

2013 Stock Option Plan 

Appendix 
 Regarding Plan
Amendments 
  

					
	 	  	Date of Board
Approval	  	Date of
Shareholder
Approval
	 Initial adoption of plan (1,708,080 shares)
	  	December 13, 2012	  	December 13, 2012
	 Increase of share reserve (17,835,798 shares)
	  	May 27, 2014	  	May 27, 2014
	 Clarification of share reserve (8,893,246 shares)
	  	May 29, 2014	  	N/A

 EXAGEN DIAGNOSTICS, INC. 

STOCK OPTION PLAN 

STOCK OPTION AGREEMENT    # [    ] 

This Stock Option Agreement (“Agreement”) is made and entered into effective as of the Date of Grant set forth below (the
“Date of Grant”) by and between Exagen Diagnostics, Inc., a Delaware corporation (the “Company”), and the participant named below (“Participant”) pursuant to the Company’s Stock
Option Plan (the “Plan”). Capitalized terms not defined herein will have the meaning ascribed to such terms in the Plan. 
  

					
	Participant:	  	  
	  	
	Social Security Number:	  	  
	  	
	Address:	  	  
	  	
		  	  
	  	
	Total Option Shares:	  	  
	  	
	Exercise Price Per Share:	  	  
	  	
	Date of Grant:	  	  
	  	
	Vesting Dates:	  	  
	  	
		  	  
	  	
		  	  
	  	
	Expiration Date:	  	  
	  	
	Type of Stock Option	  		  	
	(Check one):	  	[    ] Incentive Stock Option	  	
		  	[    ] Nonqualified Stock Option	  	

 1. Grant of Option. The Company hereby grants to Participant an option (the
“Option”) to purchase the total number of shares of Common Stock ($.001 par value per share) of the Company set forth above (the “Shares”) at the Exercise Price Per Share set forth above (the “Exercise
Price”), subject to all of the terms and conditions of this Agreement and the Plan. In consideration of and as a precondition to the grant of the Option, Participant, on behalf of Participant and all persons or parties claiming through the
Participant, including any successor or assign, as of the date hereof forever waives, releases, discharges and covenants not to sue the Company or its successors, assigns, shareholders, affiliates, partners, officers, directors, employees, agents,
attorneys, accountants, and representatives from or on any and all past, present, or future claims, demands, causes of action, suits, damages, costs, expenses, losses, liabilities or obligations, whatsoever, whether at law or equity, know or
unknown, arising directly or indirectly from or in connection with any stock option previously granted to Participant by the Company. 

 2. Exercise Period. 

2.1 Exercise Period of Option. As stated pursuant to the vesting dates above. 

2.2 Vesting of Options. Shares that are vested pursuant to the schedule set forth in Section 2.1 hereof are “Vested
Shares”. Shares that are not vested pursuant to the schedule set forth in Section 2.1 hereof are “Unvested Shares”. 

2.3 Expiration. These Options will expire on the Expiration Date set forth above and must be exercised, if at all, on or before the
Expiration Date. 
 3. Termination. If Participant is terminated for Cause, then this Option will expire on Participant’s
Termination Date, or at such later time and on such conditions as determined by the Board of Directors. In the event of termination for any other reason, this Option will be exercisable, as to Vested Shares, in accordance with the terms of the Plan.

 4. Non-transferability of Option. This Option may not be transferred in any manner other than by will or the laws of
descent and distribution and, during the Participant’s lifetime, may be exercised only by Participant. The terms of this Option will be binding upon the successors and assigns of Participant. 

5. Tax Consequences. Set forth below is a brief summary as of the Effective Date of the Plan of some of the tax consequences of
exercise of this Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PARTICIPANT SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.

 5.1 Exercise of ISO. If this Option qualifies as an ISO, there will be no regular federal or state income tax liability
upon the exercise of this Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as a tax preference item for federal income tax purposes and may subject the
Participant to the alternative minimum tax in the year of exercise. 
 5.2 Exercise of Nonqualified Stock Option.
If this Option does not qualify as an ISO, there may be a regular federal and state income tax liability upon the exercise of this Option. Participant will be treated as having received compensation income (taxable at ordinary income tax rates)
equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Participant is or was an employee of the Company, the Company will be required to withhold from Participant’s compensation
or collect from Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. 

6. Governing Plan Document. The Option is subject to all the provisions of the Plan, the provisions of which are hereby made a part of
the Option, and is further subject to all interpretations, amendments, rules and regulations, which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of the Option and those of
the Plan, the provisions of the Plan shall control. 

 7. Entire Agreement. The Plan is incorporated herein by reference. A copy of the Plan
may be obtained from the Corporation. This Agreement and the Plan constitute the entire agreement of the parties and supersede all prior undertakings and agreements with respect to the subject matter hereof. 

8. Acceptance. Participant hereby acknowledges receipt of a copy of the Plan and this Agreement. Participant has read and understands
the terms and provisions thereof, and accepts this Option subject to all the terms and conditions of the Plan and this Agreement. Participant acknowledges that there may be adverse tax consequences upon exercise of this Option or disposition of the
Shares and that Participant should consult a tax adviser prior to such exercise or disposition. 
  

									
	EXAGEN DIAGNOSTICS, INC:	 		 	PARTICIPANT:
					
	By:	 	  
	 		 	By:	 	  

	Name:	 	  
	 		 	Name	 	  

	Title:EX-10.5

 Exhibit 10.5 

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED
MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 LICENSE AGREEMENT 

THIS LICENSE AGREEMENT the “Agreement”) is entered into as of September 13, 2007
(“Effective Date”) by and between Prometheus Laboratories Inc., a California corporation, having a principal place of business at 9410 Carroll Park Drive, San Diego, California 92121, and its Affiliates
(“Prometheus”), and Proprius, Inc., a Delaware corporation, having a principal place of business at 12264 El Camino Real, Suite 350, San Diego, California 92130, and its Affiliates
(“Proprius”). 
 BACKGROUND 

WHEREAS, Prometheus has developed Patent Rights and Prometheus Know-how (each as defined below) relating to methotrexate metabolites and
pharmacogenetics; 
 WHEREAS, Proprius has expertise regarding research and development, clinical development, marketing and sale of
therapeutics and diagnostics in rheumatologic and autoimmune diseases; and 
 WHEREAS, Prometheus desires to grant Proprius a license on the
terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the recitals and the mutual covenants and obligations
contained herein, Prometheus and Proprius agree as follows: 
  

	 	1.	DEFINITIONS 

 1.1 “Affiliate” of an entity shall mean any entity that controls, is
controlled by, or is under common control with such entity. An entity shall be deemed to be in control of another entity if it owns or controls, directly or indirectly, more than fifty percent (50%) of the outstanding voting equity of the other
entity (or other equity or ownership voting interest in the event that such entity is other than a corporation). 
 1.2 “Confidential
Information” shall mean all written information and data provided by one Party to the other hereunder and marked “Confidential” or a reasonable equivalent thereof or, if disclosed orally, visually or in some other form, is summarized
in a writing identified as “Confidential” or a reasonable equivalent thereof and provided to the other Party within thirty (30) days of such disclosure; provided, however, that during the term of this Agreement, the Prometheus
Know-how shall be deemed the Confidential Information of both Parties. Notwithstanding the foregoing, Confidential Information of a Party shall not include information that the other Party (the “recipient”) can demonstrate: 

(a) is known to the recipient and not subject to prior confidentiality obligations to Prometheus (i.e., knowledge of former Prometheus
employees), as evidenced by its written records, before receipt thereof under this Agreement; 
 (b) is disclosed to the recipient without
restriction after acceptance of this Agreement by a Third Party who has the right to make such disclosure; 
 (c) is or becomes part of the
public domain through no breach of this Agreement; or 
 (d) is independently developed, as evidenced by its written records, by or for the
recipient by individuals or entities who have not had access to the information disclosed hereunder. 

  
 -1- 

 1.3 “Contract Quarter” shall mean a period of three (3) consecutive months ending
on March 31, June 30, September 30 or December 31; provided, however, that each of the first and last Contract Quarters during the term of this Agreement may be less than three (3) full consecutive months. 

1.4 “Contract Year” shall mean a period of four (4) consecutive Contract Quarters ending on December 31 of any calendar
year; provided, however, that the first and last Contract Years during the term of this Agreement may be less than four (4) consecutive Contract Quarters in that the first Contract Year shall begin on the Effective Date, and the last Contract
Year shall end upon termination or expiration of this Agreement in accordance with Article 10. 
 1.5 “FDA” shall mean the United
States Food and Drug Administration or its successor entity. 
 1.6 “Inventors” shall mean the inventors named in the patents and
patent applications listed in Exhibit 1.9 hereto. 
 1.7 “Licensed Product” shall mean any product, product part or service
which is made, used, distributed or sold and which, but for the licenses granted in Article 2 of this Agreement, would infringe a Valid Claim in the Patent Rights, in a country in which it is made, used, distributed, sold or imported. 

1.8 “Net Sales” shall mean the gross invoiced price of Licensed Products sold to a Third Party (other than a Sublicensee, unless
such Sublicensee is the end user of such Licensed Products), less the following: (a) credits, allowances, discounts, rebates and chargebacks provided to a Third Party; (b) freight, postage, transportation and insurance costs incurred in
delivering Licensed Products (only to the extent such costs are included in such gross invoiced price); (c) cash, quantity and trade discounts actually given to Third Parties; (d) rebates and administrative fees actually paid to group
purchasing organizations; (e) sales, use, value-added, excise and other similar taxes to the extent included in such gross invoiced price; and (f) custom duties, surcharges and other governmental charges incurred in connection with the
exportation or importation of Licensed Products to the extent such amounts are included in such gross invoiced price. All such amounts set forth above shall be determined in accordance with generally accepted accounting principles
(“GAAP”). 
 Notwithstanding the foregoing, if a Licensed Product is sold or provided as part of a system, package, or combination product or
service that contains one or more components that could be sold separately (a “Combination Product”), Net Sales of a Combination Product will be calculated by multiplying the Net Sales from the sale of such Combination Product (determined
in accordance with the preceding paragraph) by the fraction A/B where “A” is the fair market value of the Licensed Product when supplied or priced separately from the other components of the Combination Product, and “B” is
the fair market value of the Combination Product. In the event that no market price is available for the Licensed Product when supplied or priced separately from the other components, fair market value shall be determined in good faith by Proprius
and Prometheus taking into account, among other factors as the parties may deem relevant, the number of components in such Combination Product. 
 For
purposes of this Section 1.8, fair market value shall mean the gross sales price to a Third Party in an arm’s-length sale or exchange of consideration for an identical item or service sold or provided in the same quantity and at the same
time and place as the sale or exchange for which such gross sales price or value is to be determined. 
 1.9 “Patent Rights” shall
mean the patents and the patent applications listed in Exhibit 1.9, and all provisionals, substitutions, extensions, re-examinations, reissues, renewals, divisions, 

  

	

  
 -2- 

 
continuations, improvements or continuations-in-part therefor or thereof, and all patents claiming priority to any such patents or patent applications to the extent owned or controlled by
Prometheus and all foreign counterparts of the foregoing. 
 1.10 “Party” shall mean either Prometheus or Proprius and
“Parties” shall mean both Prometheus and Proprius. 
 1.11 “Prometheus Know-how” shall mean all non-patented and
unpublished documentation, information and data relating solely to the development of products based solely on the Patent Rights owned or controlled by Prometheus, as of the Effective Date. Prometheus Know-how shall only include research, clinical
and manufacturing data and documentation, sample report forms from the clinical studies, case report forms, clinical databases, protocols and completed patient informed consent forms, copies of research notebooks standard operating procedures and
laboratory procedures, New York State validation reports, raw clinical data files, marketing materials, clinical experience program data, and animation files, draft sales aids or other promotional material, and market research; all to be provided
“as is” without any representation or warranty regarding accuracy or completeness or compliance with laws, regulations or guidance documents and the extent available and transferable. 

1.12 “Reasonable Commercial Efforts” shall mean a level of effort by a Party [***]. 

1.13 “Regulatory Authority” or “Regulatory Authorities” shall mean any federal, state, local or international regulatory
agency, department, bureau or other governmental entity, including, but not limited to, the FDA, which is responsible for issuing approvals, licenses, registrations or authorizations necessary for the manufacture, use, storage, import, transport or
sale of Licensed Products in a regulatory jurisdiction. 
 1.14 “Samples” shall mean, to the extent in the possession and control
of Prometheus as of the Effective Date, all serum specimens, plasma specimens, blood specimens, red blood cells, leukocytes, DNA or RNA material and lymphoblastoid cells generated from patients and/or healthy human subjects, used by the Inventors in
their discovery of, and other research on, the development of products based solely on the Patent Rights. 
 1.15 “Sublicensee”
shall mean a Third Party to which Proprius, its Affiliate or Sublicensee grants a sublicense of its rights under this Agreement. 
 1.16
“Sublicensee Royalties” shall mean [***] 
 1.17 “Sublicense Fees” shall mean [***] 

  

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 -3- 

 [***] 

1.18 “Territory” shall mean the entire world. 

1.19 “Third Party” shall mean a natural person, corporation, partnership, joint venture, trust, any governmental authority or other
business entity or organization, and any other recognized organization other than the Parties and/or their Affiliates. 
 1.20
“Trademarks” shall mean “Trexscore” and “Veritrex”. 
 1.21 “Valid Claim” shall mean a claim of
(a) an issued or granted and unexpired patent included in Patent Rights, which claim has not been held invalid or unenforceable by a court or agency of competent jurisdiction from which no further appeal can be taken, or which has not been
admitted by the patentee to be invalid or unenforceable; or (b) a pending patent application included in the Patent Rights, so long as such application is being prosecuted and the claim in question has not been abandoned by the owner of the
application and provided that such patent application has not been pending for more than [***] from the earliest filing date from which such claim takes priority in the country in question. 

 

	 	2.	RIGHTS GRANTED/MATERIAL TRANSFER 

 2.1 License to Patent Rights and Prometheus Know-how.
Subject to the terms and conditions of this Agreement, Prometheus hereby grants to Proprius an exclusive (even as to Prometheus) royalty-bearing right and license under the Patent Rights and Prometheus Know-how, with the right to further sublicense
in accordance with this Agreement, to commercialize, develop, research, use, make, have made, sell, offer for sale, have sold and import Licensed Products in the Territory. Provided, however that such right and license shall not include the right to
promote any Licensed Products to gastroenterologists or to directly or indirectly, participate in the development or commercialization of any Licensed Product for use in diagnosing or treating any gastrointestinal diseases. Proprius shall have the
exclusive right (even as to Prometheus) to publicly disclose or use Prometheus Know-how in support of Proprius’ and its Sublicensees’ development and commercialization efforts related to Licensed Products. 

2.2 Sublicensing. [***] agrees that any agreement for the sublicense of any rights granted to it under this Article 2 [***] shall
promptly provide [***] with a copy of each sublicense granted hereunder. In any event, [***] shall remain responsible for all obligations under this Agreement following any sublicense of the rights granted under this Article 2. 

2.3 Material Transfer by Prometheus. Within ninety (90) days of the Effective Date and subject to receipt of any necessary Third
Party approvals or consents (which Prometheus does not guaranty or warrant will be obtainable), Prometheus shall provide to Proprius the Samples for use by Proprius solely for technology validation and development purposes with respect to Licensed
Products in the Territory. Except as otherwise provided under this Agreement, all Samples will remain the sole 

  

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 -4- 

 
property of Prometheus, will be used only by Proprius and its Sublicensees in furtherance of the development and commercialization of Licensed Products, and only in a manner consistent with the
protocol originally submitted to, and approved by, the respective IRBs of the institutions through which the Samples were collected. Prometheus shall provide to Proprius true and complete copies of each such protocol and a description of the Samples
to which such protocol applies. The Samples supplied under this Section 2.3 must be used with prudence and appropriate caution in any experimental work, because not all of their characteristics may be known. THE SAMPLES ARE PROVIDED “AS
IS” AND WITHOUT ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE OR ANY WARRANTY THAT THE USE OF THE SAMPLES WILL NOT INFRINGE OR
VIOLATE ANY PATENT OR OTHER PROPRIETARY RIGHTS OF ANY THIRD PARTY. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, PROMETHEUS SHALL HAVE NO LIABILITY (INCLUDING BUT NOT LIMITED TO DIRECT, INDIRECT, CONSEQUENTIAL OR EXEMPLARY) TO PROPRIUS RELATING
TO THE SAMPLES REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH LIABILITY OR DAMAGES. 
 2.4 No Implied Rights. Proprius shall
have no licenses or other rights other than those expressly granted in this Agreement, and, in particular and without limiting the foregoing, nothing in this Agreement shall be construed to grant Proprius any licenses or other rights in any
intellectual property rights, information or data owned or controlled by Prometheus or any of its Affiliates, except as expressly set forth in this Agreement. 

2.5 Restrictions on Development and Commercialization of Licensed Products. Notwithstanding any other provision of this Agreement,
during the term of this Agreement, Proprius (and its Affiliates and Sublicensees) agrees that it will not, directly or indirectly, market or promote the Licensed Products to gastroenterologists nor will it (or any of its Affiliates or Sublicensees),
directly or indirectly, participate in the development or commercialization of any Licensed Product for use in diagnosing or treating any gastrointestinal diseases. 

2.6 Right of First Negotiation. If, during the two (2) year period beginning on the First Commercial Sale of a Licensed Product by
Proprius, (i) Proprius desires to divest or sublicense all or substantially all of its business relating to the Licensed Products (whether by sale, license or otherwise) to a Third Party, or (ii) a Third Party initiates such discussions
with Proprius and Proprius is interested in entertaining such discussions (both (1) and (ii) are collectively referred to as a “Business Opportunity”), then Proprius will promptly notify Prometheus in writing
thereof, with such notice containing a reasonably complete summary of reasonably available information necessary to evaluate the Business Opportunity; provided, however, that Proprius shall not be obligated to disclose to Prometheus the identity of
any such Third Party, the terms proposed by such Third Party (if confidential) or any other confidential or proprietary information of such Third Party. If Prometheus indicates interest in pursuing the Business Opportunity within [***] business days
of Prometheus’ receipt of Proprius’ written notice, the Parties will negotiate in good faith to enter into a definitive agreement. If the Parties are unable to enter into a definitive agreement within [***] days after Proprius’
receipt of Prometheus’ indication of interest, or if Prometheus does not so indicate an interest in pursuing the Business Opportunity within the [***] business day period, Proprius will be free to execute such Business Opportunity with a Third
Party provided that Proprius shall not offer the Business Opportunity to a Third Party on terms more favorable then those offered to Prometheus or on terms worth less to Proprius then those offered by Prometheus for the Business Opportunity. In no
event shall Proprius be obligated to enter into any such transaction with Prometheus. Notwithstanding anything in this Agreement to the contrary, any Business Opportunity entered into by Proprius with a Third Party will be subject to
Prometheus’ rights under this Agreement, including, without limitation, Prometheus’ right to receive the payments set forth in Article 5. 

  

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 -5- 

	 	3.	LICENSED PRODUCT DEVELOPMENT AND COMMERCIALIZATION 

 3.1 Development and Clinical Testing
Activities. Proprius shall use Reasonable Commercial Efforts to undertake development activities for the Licensed Product, including, but not limited to, conducting or having conducted, and completing or having completed, all clinical studies
and other activities required for approvals from the applicable Regulatory Authorities. Proprius shall bear the costs and expenses related to the development of the Licensed Products. 

3.2 Regulatory Approvals. Proprius shall use Reasonable Commercial Efforts to submit to and obtain acceptance from the applicable
Regulatory Authorities of the appropriate regulatory filing for one or more Licensed Products in the Territory. In addition, and without limiting the generality of the foregoing, Proprius by either Proprius, an Affiliate or a Sublicensee shall use
its Reasonable Commercial Efforts to achieve the first commercial sale of a Licensed Product in the Territory (“First Commercial Sale”) on or before December 31, 2008. Proprius shall bear the costs and expenses
related to the obtaining of the appropriate regulatory approvals for the Licensed Products. 
 3.3 Remedies for Failure to use Reasonable
Commercial Efforts to Achieve First Commercial Sale. In the event Proprius does not achieve the First Commercial Sale on or before December 31, 2008, the Parties shall discuss in good faith whether a modification of such obligation,
including the date, is appropriate. Except as otherwise agreed to by the Parties pursuant to this Section 3.3, if Proprius’ failure to achieve the First Commercial Sale continues through March, 31, 2009, then Prometheus shall have the
right to terminate this Agreement by written notice thereof to Proprius, as further set forth in Section 10.2. 
 3.4 Licensed
Product Development and Marketing. Proprius shall use Reasonable Commercial Efforts, by itself, an Affiliate or through a Sublicensee, to develop Licensed Products in the United States and in such other regions in the Territory as Proprius deems
commercially reasonable, and to market and sell Licensed Products in all regions in the Territory where appropriate regulatory and marketing approvals have been obtained from the applicable Regulatory Authorities. Proprius, at Proprius’ own
expense, or as applicable, a Sublicensee, at its own expense, shall be responsible for all development and commercial activities related to undertaking the obligations pursuant to this Section 3.4. 

3.5 Trademark License: Labeling. All packaging for Licensed Products shall display Proprius’ trade dress and a trademark suitable
to Proprius which may, but need not, be a Trademark, at Proprius’ sole discretion. Prometheus hereby grants to Proprius a royalty-free license to use the Trademarks in connection with the commercialization of Licensed Products in the Territory.
All packaging and labeling for Licensed Products shall include all appropriate trademark and patent markings in order to reasonably protect such Trademarks and Patent Rights. Proprius acknowledges Prometheus’ exclusive right, title and interest
in and to the Trademarks and acknowledges that nothing herein will be construed to grant to Proprius any rights in such Trademarks except as expressly provided herein. Proprius further acknowledges that its use of the Trademarks will not create in
Proprius any right, title or interest in the Trademarks, and that all use of the Trademarks and the goodwill generated thereby will inure solely to the benefit of Prometheus. Proprius shall make only claims, representations or warranties directly or
indirectly to any Third Party about the Licensed Product that are consistent with the Licensed Product’s approval from applicable Regulatory Authorities and other scientific literature. During the Term of this Agreement, Proprius shall be
solely responsible for maintaining the Trademarks, including all costs and expenses relating thereto. 
 3.6 Customer Service and
Technical Support. Proprius, at Proprius’ own expense, or as applicable, a Sublicensee, at its own expense, shall be responsible for and use Reasonable Commercial Efforts in providing training, customer service and technical support for
Licensed Products. 

  
 -6- 

 3.7 Export Control Laws. Proprius shall comply with all applicable export laws,
restrictions and regulations of the Department of Commerce or other United States or foreign agency or authority, and shall not export, or allow any export or re-export of any Confidential Information or Licensed Products in violation of any such
restrictions, laws or regulations. 
 3.8 Progress Reports. Once every six (6) months prior to the date of the First Commercial
Sale and once every Calendar Year, thereafter, Proprius will submit to Prometheus a progress report covering in reasonable detail (i) activities by Proprius related to the development and testing of Licensed Product (or the commercialization of
Licensed Products after development), and (ii) the obtaining of regulatory approvals necessary for marketing Licensed Product. 
  

	 	4.	REGULATORY COMPLIANCE MATTERS AND COMPLAINTS 

 4.1 Regulatory Matters. In addition to the
obligations set forth in Article 3 of this Agreement, Proprius, at Proprius’ own expense, or as applicable, a Sublicensee, at its own expense, shall be responsible for and take all appropriate corrective or other actions regarding all
regulatory matters related to the Licensed Products and the Trademarks in the Territory, including responses to inquiries from Regulatory Authorities in accordance with all applicable laws. 

4.2 Complaints and Recalls. 

(a) Licensed Product Complaints. Proprius, at Proprius’ own expense, or as applicable, a Sublicensee at its own expense, shall
investigate, respond to and take all appropriate corrective or other actions regarding all complaints associated with the manufacture and/or distribution of Licensed Products which are made, used, distributed or sold by or on behalf of Proprius or
any of its Sublicensees in accordance with all applicable laws. 
 (b) Licensed Product Recalls. Proprius, at Proprius’ own
expense, or as applicable, a Sublicensee at its own expense, and, subject to an order or directive from a Regulatory Authority, shall be responsible to conduct and to pay for the costs of any recall or withdrawal of Licensed Products made, used,
distributed or sold by or on behalf of Proprius or any of its Sublicensees in accordance with all applicable laws. Promptly, in accordance with all applicable laws and if possible, prior to making such recall, Proprius shall advise Prometheus of the
situation and any facts relating to the advisability of the recall, destruction or withholding from the market of the Licensed Product in the Territory. 

4.3 Record keeping. Proprius (and its Affiliates and Sublicensees) shall keep records of its sales and customers and other records
sufficient to adequately administer a recall of each such Licensed Product and reasonably cooperate in any decision to recall, retrieve and/or replace any Licensed Product, in accordance with all applicable laws and regulatory requirements. 

4.4 Fines and Penalties. Any fines and/or penalties for failure by Proprius to comply with any requirement or regulation shall be the
sole responsibility of Proprius. 
  

	 	5.	PAYMENTS 

 5.1 Up Front Fee. Within sixty (60) days after the Effective Date,
Proprius shall make a nonrefundable up front payment to Prometheus of [***] U.S. Dollars (U.S.$[***] ) (the “Up Front Fee”). 

  

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 -7- 

 5.2 Preferred Stock. Within 30 days after the Effective Date, Proprius shall deliver to
Prometheus a certificate for 200,000 shares of Proprius Series A Preferred Stock, $0.0001 par value per share (“Series A Preferred Stock”), registered in the name of Prometheus. In regard to the Preferred Stock,
Proprius hereby represents and warrants as follows: 
 (a) Proprius has duly authorized the issuance of 38,000,000 shares of its Preferred
Stock, having the rights, restrictions, privileges and preferences set forth in the Certificate of Amendment attached hereto as Exhibit 5.2 (the “Certificate of Amendment”) and Proprius has adopted and filed the
Certificate of Amendment with the Secretary of State of the State of Delaware. 
 (b) The authorized capital stock of Proprius (immediately
prior to the issuance of the Preferred Stock to Prometheus) consists of 32,000,000 shares of common stock, $0.0001 par value per share (the “Common Stock”), of which 3,004,166 shares are issued and outstanding and 1,170,834
shares have been reserved for issuance pursuant to subscription, warrant, option, convertible security or other right (contingent or otherwise), and 38,000,000 shares of preferred stock (“Preferred Stock”), of which
21,000,000 shares have been designated as Series A Preferred Stock of which 6,105,406 are issued and outstanding. No other shares or series of capital has been designated or is issued or outstanding. All of the issued and outstanding shares of
Common Stock and Preferred Stock have been duly authorized and validly issued and are fully paid and nonassessable. Except for the Preferred Stock and as provided in this Agreement, (i) no subscription, warrant, option, convertible security or
other right (contingent or otherwise) to purchase or acquire any shares of capital stock of the Company is authorized or outstanding, (ii) Proprius has no obligation (contingent or otherwise) to issue any subscription, warrant, option,
convertible security or other such right or to issue or distribute to holders of any shares of its capital stock any evidences of indebtedness or assets of the Company, (iii) Proprius has no obligation (contingent or otherwise) to purchase,
redeem or otherwise acquire any shares of its capital stock or any interest therein or to pay any dividend or make any other distribution in respect thereof, and (iv) there are no outstanding or authorized stock appreciation, phantom stock or
similar rights with respect to Proprius. All of the issued and outstanding shares of capital stock of Proprius have been offered, issued and sold by Proprius in compliance with applicable federal and state securities laws. 

(c) The issuance and delivery of the shares of Series A Preferred Stock in accordance with this Agreement, and the issuance and delivery of
the shares of Common Stock issuable upon conversion of the Preferred Stock, have been duly authorized by all necessary corporate action on the part of Proprius, and all such shares have been duly reserved for issuance. The shares of Series A
Preferred Stock when so issued and delivered pursuant to this Agreement, and the shares of Common Stock issuable upon conversion of the Preferred Stock, when issued upon such conversion, will be duly and validly issued, fully paid and
non-assessable. 
 In regard to the issuance of the shares of the Series A Preferred Stock to Prometheus, Prometheus hereby represents and warrants that
Prometheus is acquiring the Series A Preferred Stock, and the shares of Common Stock into which the Series A Preferred Stock may be converted, for its own account for investment and not with any present intention of distributing or selling the same,
and Prometheus has no present or contemplated agreement, undertaking, arrangement, obligation, indebtedness or commitment providing for the disposition thereof. Prometheus is an “accredited investor” as defined in Rule 501(a) under the
Securities Act. 
 5.3 Milestone Payments. In addition to the payments described in Sections 5.1 and 5.4 of this Agreement, Proprius
shall make the following one-time cash milestone payments to Prometheus within ninety (90) days of the occurrence of the applicable event: 

  
 -8- 

					
	 MILESTONE EVENT
	  	PAYMENT	 
	 First Commercial Sale by Proprius, its Affiliates or Sublicensees
	  	U.S.$	[***	] 
	 Achievement of greater than or equal to U.S.$[***] in cumulative Net Sales of all Licensed Products (determined in the aggregate for
sales by Proprius, its Affiliates and Sublicensees)
	  	U.S.$	[***	] 
	 Achievement of greater than or equal to U.S.$[***] in cumulative Net Sales of all Licensed Products (determined in the aggregate for
sales by Proprius, its Affiliates and Sublicensees)
	  	U.S.$	[***	] 
	 Achievement of greater than or equal to U.S.$[***] in cumulative Net Sales of all Licensed Products (determined in the aggregate for
sales by Proprius, its Affiliates and Sublicensees)
	  	U.S.$	[***	] 
	 Achievement of greater than or equal to U.S.$[***] in cumulative Net Sales of all Licensed Products (determined in the aggregate for
sales by Proprius, its Affiliates and Sublicensees)
	  	U.S.$	[***	] 

 Notwithstanding the foregoing, Proprius shall not be obligated to make payments under this Section 5.3 which total more
than [***] U.S. Dollars (U.S.$[***]) in any calendar year (the “Milestone Payment Cap”). Any amounts in excess of the Milestone Payment Cap for any calendar year shall be carried forward and paid on March 31 of the next
calendar year (subject again, in such calendar year, to the Milestone Payment Cap). 
 5.4 Royalty Payments to Prometheus. In partial
consideration of the license rights granted to Proprius hereunder, Proprius shall pay to Prometheus royalties based on Net Sales of Licensed Products by Proprius and its Affiliates (but not Sublicensees provided that Sublicensees shall be included
if Proprius has sublicensed its rights hereunder without having devoted material efforts to the development of Licensed Products and without retaining material development and/or commercialization rights related to the Licensed Products), in
countries where a Valid Claim of the Patent Rights covering such Licensed Products exists at the rate of [***] percent ([***]%). 
 Subject to the
termination provisions of Article 10 of this Agreement, Proprius’ obligation to pay royalties to Prometheus on Licensed Products covered by a Valid Claim of the Patent Rights in each country shall expire on the date when the last patent
containing a Valid Claim in such country expires, lapses or is invalidated. 
 5.5 Sublicense Fees and Sublicensee Royalties. In
addition to the royalties and milestones payable pursuant to Sections 5.3 and 5.4 of this Agreement, Proprius shall pay to Prometheus the following amounts: 

(a) If the Sublicensee is [***] or any successor organization to [***] (hereinafter “[***]” shall include such successor
organizations), then Proprius shall pay to Prometheus: 
  

	 	(i)	[***] percent ([***]%) of any Sublicensee Royalties received by Proprius from [***] or any of its Affiliates or Sublicensees, provided however, that under no circumstances shall such payment to Prometheus by Proprius
under this Section 5.5(a)(i) be less then [***] percent ([***]%) of the Net Sales of [***] and its Affiliates or Sublicensees nor shall it be more then [***] percent ([***]%) of the Net Sales of [***] and its Affiliates or Sublicensees; plus

  

	 	(ii)	[***] percent ([***]%) of Sublicense Fees received by Proprius from [***] or any of its Affiliates or Sublicensees. 

  

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 -9- 

 (b) In the case of any other Sublicensee: 

 

	 	(i)	[***] percent ([***]%) of any Sublicensee Royalties received by Proprius from such Sublicensee or any of its Affiliates or Sublicensees, provided however, that under no circumstances shall such payment to Prometheus by
Proprius under this Section 5.5(b)(i) be less then [***] percent ([***]%) of the Net Sales of such Sublicensee and its Affiliates or Sublicensees nor shall it be more then [***] percent ([***]%) of the Net Sales of such Sublicensee and its
Affiliates or Sublicensees; plus 

  

	 	(ii)	[***] percent ([***]%) of Sublicense Fees received by Proprius from such Sublicensee or any of its Affiliates or Sublicensees. 

For the avoidance of doubt, except as specifically set forth above relating to [***] under Section 5.5 (a), in the event that Proprius sublicenses any or
all of its rights to any other third party without having devoted material efforts to the development of Licensed Products and without retaining material development and/or commercialization rights related to the Licensed Products, Proprius shall
pay to Prometheus a royalty pursuant to Section 5.4 (and not Section 5.5(b)) based upon the Net Sales of any Sublicensee’s (or its Affiliates). 

5.6 Royalty Reduction. Any royalty payable to Prometheus under Section 5.4 of this Agreement may be reduced up to a maximum of
[***] percent ([***]%) of the royalty otherwise due on a Calendar Quarter basis for any and all royalties to the extent, and only to the extent, it is reasonable and necessary for Proprius to pay such royalties to a Third Party in order to
manufacture, use or sell a Licensed Product (up to the actual extent of the royalties paid to such Third Party) under a license of intellectual property rights entered into by Proprius with respect to the Licensed Product, provided that under no
circumstances shall the royalty rate payable to Prometheus hereunder be reduced below two and one-half percent (2 1⁄2%). 

5.7 Terms of Payment. 

(a) Within [***] days following the end of each Contract Quarter during the Term, Proprius shall make the payments to Prometheus set forth in
Sections 5.4 of this Agreement based on Net Sales during the previous Contract Quarter. Royalty payments due to Prometheus under Section 5.5 shall be due within [***] days following the end of each Contract Quarter during the Term as well. 

(b) With each quarterly payment made under this Section 5.7, Proprius shall deliver to Prometheus a full and accurate accounting of all
Net Sales by Proprius, and its Affiliates and Sublicensees as well as all Sublicense Fees and Sublicensee Royalties received from Sublicensees and their Affiliates, if any, for the relevant Contract Quarter. Each such report shall include at least
the following information: (i) quantity of each Licensed Product sold by Proprius, and its Affiliates and Sublicensees on a country-by-country basis; (ii) gross sales of Licensed Products by Proprius, and its Affiliates and Sublicensees on
country-by-country basis; (iii) any deductions from gross sales used to arrive at Net Sales; (iv) the quantity and type of Sublicense Fees and Sublicensee Royalties received from Sublicensees and their Affiliates; and
(v) Proprius’ computation of the aggregate earned royalties payable to Prometheus under Sections 5.4 and 5.5, respectively. 

(c) Within [***] calendar days of the end of each Calendar Quarter, Proprius shall provide Prometheus with its best estimate of all the
payments due to Prometheus hereunder for such prior Calendar Quarter from Proprius, its affiliates and its Sublicensees. 

  

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 -10- 

 (d) All royalty and milestone and Sublicense Royalties and Sublicense Fee payments due
Prometheus shall be made in United States dollars by wire transfer to a bank and account specified by Prometheus in writing. For sales made or Sublicense Fees or Sublicensee Royalties received in currency other than United States dollars, amounts
payable under this Agreement shall be converted to United States dollars as would be required for reporting under GAAP. In no event shall the applicable royalties exceed the maximum amount payable under the applicable laws, regulations or
administrative rulings of the territory or country which restricts the royalty rate or amount payable on Net Sales in such territory or country. 

5.8 Taxation of Royalties. Where any sum due to be paid to Prometheus hereunder is subject to any withholding or similar tax, the
Parties shall use reasonable efforts to do all such acts and things and to sign all such documents as will enable them to take advantage of any applicable double taxation agreement or treaty or appeal procedure. In the event there is no applicable
double taxation agreement or treaty, or appeal procedure, or if any appeal procedure has been exhausted or if an applicable double taxation agreement or treaty or appeal procedure reduces but does not eliminate such withholding or similar tax,
notwithstanding any pending appeal, Proprius shall pay such withholding or similar tax to the appropriate government authority as may be required, deduct the amount paid from the amount due Prometheus and secure and send to Prometheus reasonable
evidence of such payment. 
 5.9 Restrictions on Remittance. If, at any time, legal restrictions prevent the prompt remittance of
part or all royalties with respect to any country where Licensed Products are sold, Proprius shall have the right to make such payments by depositing the amount thereof in local currency to Prometheus’ account in a bank or other depository
institution in such country. 
 5.10 Late Payments. Any payment, including without limitation, royalty, Sublicense Fees, Sublicensee
Royalties, and milestone payments, made by Proprius under this Agreement after the date such payment is due shall bear interest at the lesser of 1 1/2% per month and the maximum rate permitted by applicable law. 

 

	 	6.	BOOKS AND RECORDS 

 6.1 Procedures. Proprius shall keep full and accurate accounting
records of Net Sales, Sublicense Fees and Sublicensee Royalties in sufficient detail to determine the amounts payable to Prometheus under Sections 5.3, 5.4 and 5.5. Such records, together with all necessary supporting data, shall be kept at
Proprius’ offices at the address set forth above or such other address as Proprius may indicate in writing to Prometheus. Upon reasonable notice to Proprius, Prometheus shall have the right during normal business hours to have an independent
certified public accounting firm to audit on a confidential basis Proprius’ financial records pertaining to Net Sales, Sublicense Fees and Sublicensee Royalties to verify the amounts payable pursuant to this Agreement; provided, however, that
such audit shall neither (a) take place more frequently than once in a Contract Year, nor (b) cover records for more than the preceding three (3) Contract Years, nor (c) cover any Contract Year that was previously audited
pursuant to this Section 6.1. The accounting firm will disclose to Prometheus only whether the amounts reported by Proprius are correct or incorrect and the specific details concerning any discrepancies. An adjustment in payment shall be made
within five (5) business days of demonstration of any underpayment or overpayment. Any underpayment shall include interest as specified in Section 5.10. 

6.2 Cost of Audits. The fees and expenses of an audit requested by Prometheus pursuant to Section 6.1 of this Agreement shall be
borne by Prometheus; provided, however, that if any audit reveals that Proprius underpaid the royalties, milestone payments, Sublicense Fees or Sublicensee Royalties due under this Agreement as to the period being audited by more than ten percent
(10%) of the 

  
 -11- 

 
amount that was payable for such period, then Proprius shall, in addition to paying any such deficiency, reimburse Prometheus for the cost of such audit. 

6.3 Period to be Kept. Proprius shall retain all books and records it is required to maintain under Section 6.1 for [***] from the
end of the Contract Year of the Net Sales (or Sublicense Fees or Sublicensee Royalties) to which the books and records pertain. 
  

	 	7.	REPRESENTATIONS AND WARRANTIES 

 7.1 Mutual Warranties. Each of the Parties represents
and warrants to the other Party as follows: 
 (a) It is duly organized and validly existing under the laws of its state of incorporation,
and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof. 
 (b) It is duly
authorized to execute and deliver this Agreement and to perform its obligations hereunder, and any person executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate action. 

(c) This Agreement is legally binding upon such Party and enforceable in accordance with its terms, subject to the effects of bankruptcy,
insolvency or other laws of general application affecting the enforcement of creditor rights and judicial principles affecting the availability of specific performance and general principles of equity whether enforceability is considered a
proceeding at law or equity. The execution, delivery and performance of this Agreement by it does not conflict with any material agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, nor violate
any material law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it. 
 (d) To the
best of its knowledge, it has sufficient legal and/or beneficial title and ownership under its intellectual property rights necessary for it to fulfill its obligations under this Agreement. 

7.2 Intellectual Property Warranties. As of the effective date, Prometheus represents and warrants to Proprius as follows: 

(a) Prometheus is the sole and exclusive owner, with the right to license or sublicense, of all its right, title and interest in and to the
Patent Rights with the right to license to Proprius; 
 (b) To the best of Prometheus’ knowledge and belief without independent
inquiry, the Patent Rights have not been obtained through any fraudulent activity or misrepresentation; 
 (c) There are no suits, claims
or proceedings pending or, expressly threatened in writing, against Prometheus in any court or by or before any governmental body or agency with respect to the Patent Rights or the Prometheus Know-how or the making, having made, using, selling,
offering for sale or importing Licensed Products; 
 (d) To the best of Prometheus’ knowledge without independent inquiry, there are
no suits pending or threatened that challenge the validity of any of the patents within Patent Rights, and Prometheus has no actual knowledge of any information or action that may jeopardize the validity, enforcement or ownership of the Patent
Rights; and 

  

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 -12- 

 (e) Prometheus does not own, control or have rights to any patents or patent applications other
than those licensed or sublicensed to Proprius according to the terms of this Agreement, having claims that would restrict Proprius’ making, having made, using, selling, offering for sale or importing Licensed Products as such Licensed Products
exist on the Effective Date. 
 7.3 Disclaimer. Except as expressly set forth in this Agreement, NEITHER PARTY MAKES ANY
REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED. ALL OTHER REPRESENTATIONS OR WARRANTIES, EXPRESSED AND IMPLIED, INCLUDING, WITHOUT LIMITATION, NONINFRINGEMENT, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
HEREBY DISCLAIMED. 
 Without limiting the generality of the foregoing, and except as expressly set forth in this Agreement, Prometheus makes no
(a) representation or warranty as to the validity of any patent or other intellectual property rights which are the subject of this Agreement, (b) representation or warranty that anything made, used, imported, offered for sale, sold or
otherwise disposed of under any of the Patent Rights or the Prometheus Know-how is or will be free from infringement of patents or other intellectual property rights of Third Parties, or (c) grant, by implication, estoppel, or otherwise, of any
license, option, covenant or right other than those which are expressly stated in this Agreement, including without limitation any license under any patent or patent application (or claim thereof) not within the Patent Rights. 

 

	 	8.	PATENTS. 

 8.1 Prosecution of Patent Rights. Proprius, at Proprius’ own expense,
shall file, prosecute, issue and maintain all the Patent Rights. Proprius shaft provide Prometheus the right to review and comment on draft submissions to any patent office with respect to the Patent Rights reasonably in advance of any applicable
due dates. Proprius shall consider in good faith the requests and suggestions of Prometheus with respect to strategies for filing and prosecuting the Patent Rights. In connection with Proprius’ performance of its obligations under this
Section 8.1, Proprius shall provide written notification to Prometheus of significant activities resulting from Proprius’ actions under this Section 8.1 and shall provide Prometheus with reasonable access to and copies of the records
related to such activities. Accordingly, Proprius shall provide Prometheus with copies of (a) all actions, notices and other correspondence received from the U.S. Patent and Trademark Office or any foreign equivalent, (b) responses and
correspondence to the U.S. Patent and Trademark Office or any foreign equivalent, and (c) the original issued patent documents, certificates or equivalents thereof. In the event Proprius elects or has elected not to pursue patent protection or
to continue to prosecute or maintain any patent or patent application of the Patent Rights, Proprius shall so advise Prometheus in writing not less than [***] days prior to any potential loss of rights; then, Prometheus shall have the right, but not
the obligation, to assume prosecution or maintenance of such patent or patent application of the Patent Rights. If Prometheus elects to assume maintenance of such patent or if Prometheus elects to assume prosecution of such patent application, then
thereafter, the license to such patent-n the region in question shall either revert to a non-exclusive license or be removed from the Patent Rights, in the sole discretion, and upon the written election, of
Prometheus. 
 8.2 Third Party Infringement of Patent Rights. Each Party agrees to bring to the attention of the other Party any
Third Party product it discovers or has discovered which relates to any of the Patent Rights, and to cooperate with each other so that each Party can determine whether a Third Party product may infringe a Valid Claim of a Patent Right. To the extent
a Party believes a Third Party may infringe the Patent Rights, the Parties shall reasonably cooperate to address such concerns. Notwithstanding such cooperation, in the event of alleged Third Party infringement, Proprius, at its sole discretion, may
pursue enforcement within [***] days of obtaining knowledge of 

  

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 -13- 

 
such alleged infringement. Prior to taking any formal action to enforce the Patent Rights or prior to communicating to the alleged infringing Third Party regarding such alleged infringement,
Proprius shall notify Prometheus in writing of Proprius’ intentions to so act. [***] In the event Proprius does not pursue enforcement within the [***] day period, Prometheus, at Prometheus’ sole cost, upon prior written notice to
Proprius, may (but shall be under no obligation to act) pursue such enforcement action, and if Prometheus obtains any awards or settlement, then Prometheus shall retain exclusively all settlements or awards. 

8.3 Infringement involving Third Party Patents. If a Third Party commences suit, or threatens to do so, on the basis of a claim that a
Licensed Product manufactured, used or sold by or on behalf of Proprius infringes a patent of such Third Party, Proprius shall be responsible for defending such claim at its sole expense, except as expressly provided in Section 11.1. 

8.4 Patent Marking. Proprius shall use reasonable efforts to place all appropriate patent and other intellectual property notices,
markings and indicia on Licensed Product and marketing literature for Licensed Products as needed to protect the Patent Rights and the rights for damages for infringement thereof. 

 

	 	9.	CONFIDENTIALITY AND PUBLIC ANNOUNCEMENTS 

 9.1 Confidentiality. It is contemplated that
in the course of the performance of this Agreement each Party may disclose from time to time Confidential Information to the other Party. Each Party agrees (a) not to use Confidential Information received from the other for any purpose other
than the performance of its rights and obligations hereunder, and (b) not to disclose Confidential Information so received to any Third Party, except as is necessary for such performance (provided such disclosure is subject to similar or more
restrictive confidentiality obligations as set forth herein) or as is required by a court or governmental authority or with the written consent of the disclosing Party. In the event that such disclosure to a Third Party is required as set forth
above, the disclosing Party shall give to the Party from whom the Confidential Information was received the greatest practical prior written notice so as to permit the latter to take all possible action to perfect and/or safeguard its rights in the
Confidential Information. The obligations of the Parties relating to Confidential Information shall expire five (5) years after the later of the termination of this Agreement or the expiration of any Patent Rights; provided, however, each of
Proprius’ and Prometheus’ obligations to keep Prometheus Know-how confidential shall not expire so long as such know-how is within the definition of Confidential Information provided in this Agreement. 

9.2 Public Announcements. Within a reasonable time following the Effective Date of this Agreement, the Parties will issue a joint press
release announcing the existence of this Agreement in the form and substance mutually agreed upon by the Parties. Except as set forth in the preceding sentence, neither Party shall make any public announcement concerning the transactions
contemplated herein, or make any public statement which includes the name of the other Party or any of its Affiliates or otherwise use the name of the other Party or any of its Affiliates in any public statement or document, without the written
consent of the other Party, which consent shall not be unreasonably withheld; provided, however, that either Party may make such public announcements or disclosures as may be required by regulation, law or judicial order. Except for any regulatory,
legal or judicial disclosure obligation, any such public announcement proposed by a Party that names the other Party shall first be provided in draft to the other Party which shall have fifteen (15) business days to review such draft prior to
the issue or publication of the disclosure. Except as expressly permitted by this Section 9.2, neither Party shall publish or otherwise disclose the existence of this Agreement, or its terms, without the other

  

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 -14- 

 
Party’s prior written consent; provided, however, that a Party may disclose the existence and/or terms of this Agreement to such Party’s professional advisors and, on a confidential
basis and subject to a written confidentiality agreement not less stringent then the confidentiality terms contained herein and of which the other Party is a third party beneficiary, to potential Third Party investors or acquirors or, in the case of
Proprius, to potential Sublicensees, in each case in connection with due diligence or similar investigations by such Third Parties. 
  

	 	10.	TERM AND TERMINATION 

 10.1 Term. This Agreement shall commence on the Effective Date and
shall remain in effect for the term of any royalty obligations under Sections 5.4 and 5.5 of this Agreement, unless otherwise terminated earlier pursuant to this Article 10. 

10.2 Termination by Either Party. Either Party may terminate this Agreement upon written notice to the other Party in the event the
other Party (a) materially breaches this Agreement and fails to cure such breach within [***] days after receipt of written notice of breach from the non-breaching Party, or (b) makes a general assignment for the benefit of creditors, has
a receiver appointed on its behalf, or files or otherwise becomes subject to bankruptcy or insolvency proceedings which continues unstayed and in effect for a period of [***] days. 

10.3 Termination by Prometheus. In addition to the rights set forth under Section 10.2 related to material breach of this
Agreement by Proprius, Prometheus may immediately terminate this Agreement as set forth in Section 3.3. 
 10.4 Termination by
Proprius. In addition to the rights set forth under Section 10.2 related to material breach of this Agreement by Prometheus, Proprius may terminate this Agreement with sixty (60) days written notice, without cause. 

10.5 Rights Upon Termination. 

(a) Upon termination of this Agreement pursuant to Section 10.2 or 10.3 or 10.4: (i) all rights under the licenses granted
hereunder shall automatically terminate, and (ii) any sublicenses (but not any liabilities accrued to date) granted hereunder by Proprius to Third Parties shall remain in effect, but shall be assigned to Prometheus provided that: (A) such
sublicense was properly granted hereunder, (B) Prometheus shall have no obligation thereunder other than the obligation to grant the license or sublicense to the applicable Third Party(ies) as set forth in such sublicenses, (C) all
restrictions and limitations of this Agreement shall apply to the sublicense as though this Agreement continued in effect, (D) Prometheus shall receive all consideration due in connection with the sublicense and, in any event, the payments to
Prometheus based upon the sublicense and activity thereunder shall be at least as great as they would have been to Prometheus had the Agreement remained in effect and such actions had been taken by Proprius, and (E) in addition to any
termination rights under the sublicense agreement, Prometheus shall be entitled to terminate such sublicense on the same basis as is provided herein for termination of this Agreement. 

(b) Expiration or termination of this Agreement shall not relieve the Parties of any obligation accruing prior to such expiration or
termination. Except as set forth below or elsewhere in this Agreement, any accrued rights to payment and the obligations and rights of the Parties under Sections 1, 4, 6, 7, 9, 10, 11, and 12 shall survive expiration or termination of this
Agreement. 
 (c) Within thirty (30) days following the termination of this Agreement, except to the extent and for so long as a Party
is entitled to retain license rights under this Agreement, 

  

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 -15- 

 
each Party shall, upon written request, deliver to the other Party any and all Confidential Information, and any copies thereof, of the other Party in its possession, except that the Party will
be entitled to retain one (1) copy of all documents in its legal archives. [***] 
 (d) Upon termination (but not expiration) of this
Agreement, Proprius agrees to immediately discontinue the manufacture and sale of the Licensed Products and the use of the Patent Rights and Prometheus Know-how; provided, however, unless this Agreement is terminated pursuant to
Section 10.2 for a breach by Proprius, that for up to [***] months after such termination, Proprius shall have the right to sell any existing merchantable inventory of Licensed Products as of the date of termination at its normal prices, unless
discounted prices were previously allowed or authorized by Proprius. The sale of all such inventory, however, shall be subject to all of the terms and conditions of this Agreement, including the royalty provisions of Article 5. 

 

	 	11.	INDEMNIFICATION; INSURANCE AND LIMITATION OF LIABILITY 

 11.1 Indemnification by
Prometheus. Prometheus shall indemnify, defend and hold harmless Proprius and its officers, directors, employees, agents and representatives (“Proprius Indemnitees”) from and against any and all liabilities, claims,
demands, actions, suits, losses, damages, costs and expenses (including reasonable attorneys’ fees) based upon or arising out of Third Party claims resulting from Prometheus’ negligence, willful or deliberate misconduct, recklessness or
breach of any covenant, agreement, representation or warranty made by Prometheus in this Agreement; provided that Prometheus shall not be required to indemnify Proprius or any Proprius Indemnitee to the extent such liabilities, claims, demands,
actions, suits, losses, damages, costs and expenses arise from the negligence, willful or deliberate misconduct, or recklessness of a Proprius Indemnitee, Proprius’ breach of this Agreement or any other matter for which Proprius is responsible
to indemnify Prometheus pursuant to Section 11.2 of this Agreement. 
 11.2 Indemnification by Proprius. Proprius shall
indemnify, defend and hold harmless Prometheus and its officers, directors, employees, agents and representatives (“Prometheus Indemnitees”) from and against any and all liabilities, claims, demands, actions, suits, losses,
damages, costs and expenses (including reasonable attorneys’ fees) based upon or arising out of Third Party claims resulting from Proprius’ (or its Affiliates’ or Sublicensees’) negligence, willful or deliberate misconduct,
recklessness, or relating to the development or commercialization of Licensed Products or Patent Rights hereunder by Proprius (or its Affiliates or Sublicensees) or breach of any covenant, agreement, representation or warranty made by Proprius (or
its Affiliates or Sublicensees) in this Agreement; provided that Proprius shall not be required to indemnify Prometheus or any Prometheus Indemnitee to the extent such liabilities, claims, demands, actions, suits, losses, damages, costs and expenses
arise from the negligence, willful or deliberate misconduct, or recklessness of a Prometheus Indemnitee, Prometheus’ breach of this Agreement or any other matter for which Prometheus is responsible to indemnify Proprius pursuant to
Section 11.1 of this Agreement. 
 11.3 Conditions of Indemnification. If either Party proposes to seek indemnification from the
other under the provisions of this Article 11, it shall notify the other Party within fifteen (15) days of receipt of notice of any such claim or suit and shall cooperate fully with the other Party in the defense of such claims or suits. No
settlement or compromise shall be binding on a Party hereto without 

  

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 -16- 

 
its prior written consent which shall not be unreasonably withheld. Failure to provide such notice will not relieve indemnity obligation except to the extent adversely effected by failure to
receive notice. 
 11.4 Insurance. During the Term, Proprius shall carry occurrence-based liability insurance with policy limits of
at least two million dollars ($2,000,000) per occurrence and five million dollars ($5,000,000) annual aggregate. Upon request, Proprius shall provide Prometheus with evidence of such insurance. Proprius shall have Prometheus and its respective
Affiliates, directors, officers, employees, scientists and agents named as additional insured parties on any product liability insurance (or professional liability insurance covering services) policies maintained by Proprius, its Affiliates and
Sublicensees applicable to the Licensed Products, and shall ensure that such insurance may not be amended, terminated or allowed to expire without thirty (30) days’ prior notice to such additional insureds. 

11.5 Limitation of Liability. NEITHER PARTY SHALL BE ENTITLED TO RECOVER FROM THE OTHER PARTY ANY SPECIAL, INDIRECT, INCIDENTAL,
CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION, LOST PROFITS, IN CONNECTION WITH THIS AGREEMENT OR ANY LICENSE GRANTED HEREUNDER, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. FOR THE PURPOSE OF CLARITY, NOTHING IN
THIS SECTION IS INTENDED TO LIMIT THE INDEMNIFICATION OBLIGATIONS OF ANY PARTY WITH RESPECT TO THE CHARACTERIZATION OF ANY CLAIM BY A THIRD PARTY AS SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES. 

 

	 	12.	MISCELLANEOUS 

 12.1 Entire Agreement. This Agreement, together with the exhibits,
constitutes the entire agreement between the Parties concerning the subject matter hereof and supersedes all written or oral prior agreements or understandings with respect thereto. Notwithstanding anything in this Section 12.1 to the contrary,
the Confidentiality Agreement between the Parties effective November 4, 2005, shall remain in full force and effect. 
 12.2
Amendment or Modification. No amendment, modification or release from any provision of this Agreement shall be binding, unless in writing signed by an authorized representative of each Party, and no purchase order or acknowledgment form of a
Party shall be binding on the other Party. 
 12.3 Severability. If any term or provision of this Agreement shall for any reason be
held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other term or provision hereof, and this Agreement shall be interpreted and construed as if such term or provision, to the
extent the same shall have been held to be invalid, illegal or unenforceable, had never been contained herein. 
 12.4 Assignment.
Neither Party shall assign this Agreement in whole or in part without the prior written consent of the other Party; provided, however, that subject to Section 2.6 herein, either Party may assign this Agreement without such consent to an
Affiliate, in connection with the transfer or sale of substantially its entire business to which this Agreement pertains, or in the event of its merger or consolidation with another company; provided, that, for purposes of clarity, intellectual
property rights of a party to such transaction other than one of the initial Parties to this Agreement shall not be included in the technology licensed hereunder. The rights and obligations of the Parties under this Agreement shall be binding upon
and inure to the benefit of the successors and permitted assigns of the Parties. Any assignment not in accordance with this Agreement shall be void. 

  
 -17- 

 12.5 Independent Contractor. It is expressly agreed that Prometheus and Proprius shall be
independent contractors and that the relationship between the two Parties shall not constitute a partnership, joint venture or agency of any kind. Neither Party shall have the authority to make any statement, representations or commitments of any
kind on behalf of the other, or to take any action, which shall be binding on the other Party, without the prior written consent of the other Party. 

12.6 Notices. All notice hereunder shall be in writing and shall be delivered (a) personally, (b) by overnight delivery,
delivery prepaid, (c) mailed by express mail service, or (d) given by facsimile, to the following addresses of the respective Parties: 

If to Prometheus: 
 Prometheus
Laboratories Inc. 
 9410 Carroll Park Drive 

San Diego, California 92121 

Attn: Chief Executive Officer 

Facsimile Number: (858) 410-1945 

With a copy to: 
 Legal Department

 Prometheus Laboratories Inc. 

9410 Carroll Park Drive 
 San
Diego, California 92121 
 Facsimile Number (858) 410-1945 

If to Proprius: 
 12264 El Camino
Real, Suite 350 
 San Diego, California 92130 

Attn: Chief Executive Officer 

Facsimile Number: (858) 225-3553 

Notices shall be effective upon receipt if personally delivered, on the next business day following deposit with an overnight delivery
service, on the second business day following the date of delivery to the express mail service if sent by express mail, or the date of transmission (or next business day if transmitted on a non-business day) if sent by facsimile and the sending
machine prints a verification of receipt by the receiving machine. A Party may change its address listed above by notice to the other Party. 

12.7 Force Majeure. Any delay in the performance of any of the duties or obligations of either Party under this Agreement caused by an
event outside the affected Party’s reasonable control shall not be considered a breach of this Agreement, and the time required for performance shall be extended for a period equal to the period of such delay. Such events shall include, without
limitation: acts of God; riots; embargoes; labor disputes, including strikes, lockouts, job actions, or boycotts; fires; explosions; earthquakes; floods; shortages of material or energy; or other unforeseeable causes beyond the reasonable control
and without the fault or negligence of the Party so affected. The Party so affected shall give prompt notice to the other Party of such cause and shall take whatever reasonable steps are necessary to relieve the effect of such cause as rapidly as
possible. 
 12.8 Governing Law. This Agreement shall be construed, interpreted and governed by the laws of the State of California,
without regard to conflicts of law principles and without regard to the United Nations Convention on Contracts for the International Sale of Goods. 

  
 -18- 

 12.9 Dispute Resolution. The parties hereto expressly agree that in the event of any
dispute, controversy or claim by any party against the other party regarding this Agreement, the prevailing party shall be entitled to reimbursement by the other party to the proceeding of reasonable attorney’s fees and costs incurred by the
prevailing party. Any dispute, controversy or claim arising hereunder or in any way related to this Agreement shall be resolved by arbitration in the County of San Diego, State of California by JAMS-Endispute. The arbitration shall be conducted by a
sole arbitrator appointed by JAMS-Endispute (the “Arbitrator”). The Arbitrator’s decision shall be final and binding on all parties. The Arbitrator shall have no authority to award damages for emotional distress, punitive damages or
equitable relief. The parties intend that this arbitration provision be irrevocable and be construed as broadly as possible. The arbitration shall be governed by the provisions of California’s Arbitration Act, and judgment upon the award
rendered by the Arbitrator may be entered by any court having jurisdiction thereof. Notwithstanding the above, to the full extent allowed by law, either Party may bring an action in any court of competent jurisdiction for injunctive relief (or any
other provisional remedy) to protect the Parties’ rights or enforce the Parties’ obligations under this Agreement pending final resolution of any claims related thereto in an arbitration proceeding as provided above. In addition, either
Party may bring an action in any court of competent jurisdiction to resolve disputes pertaining to the validity, construction, scope, enforceability, infringement or other violations of patents or other proprietary or intellectual property rights.

 12.10 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and its respective
assigns and successors in interest. 
 12.11 Waiver. No waiver or modification of any of the terms of this Agreement shall be valid
unless in writing and signed by an authorized representative of the Parties. Failure by either Party to enforce any rights under this Agreement shall not be construed as a waiver of such rights, nor shall a waiver by either Party in one or more
instances be construed as constituting a continuing waiver or as a waiver in other instances. 
 12.12 Exhibits. All exhibits that
are attached to this Agreement are incorporated herein by reference. 
 12.13 Headings. The headings used in this Agreement are for
convenience and reference purposes only and shall not affect the meaning or interpretation of this Agreement. 
 12.14 Counterparts.
This Agreement may be executed in two (2) or more original counterparts, each of which shall be deemed an original, but both of which together shall constitute one and the same instrument. 

  
 -19- 

 IN WITNESS WHEREOF, each Party has caused this Agreement to be executed on its behalf by its duly
authorized officer as of the Effective Date. 
  

									
	PROMETHEUS LABORATORIES INC.	 		 	PROPRIUS, INC.
					
	By:	 	 /s/ Joseph M. Limber
	 		 	By:	 	 /s/ Michael J. Walsh

									
					
	Printed Name:	 	 Joseph M. Limber
	 		 	Printed Name:	 	 Michael J. Walsh

									
					
	Title:	 	 President, CEO
	 		 	Title:	 	 President & CEO

					
	Date:	 	 September 19, 2007
	 		 	Date:	 	 September 13, 2007

  
 -20- 

 Exhibit 1.9 

PATENT RIGHTS 

 MTX PORTFOLIO 

CONFIDENTIAL 
 PATENT PROPERTY
STATUS REPORT 
  

													
	 TTC Ref
 Country

ATTY(s) Handling
	  	 Client’s Ref
	  	 Title
	  	 Inventor
	  	 Application

No.
 Filing Date
	  	 Patent No.

Issue Date
	  	 Status Remarks

	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]
	[***]	  		  	[***]	  	[***]	  	[***]	  		  	[***]

  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -1-

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