Document:

Exhibit 10.2
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BICYCLE THERAPEUTICS PLC
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2020 EQUITY INCENTIVE PLAN
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Adopted by the Board on April 23, 2020 and approved by Shareholders on June 29, 2020
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Cooley (UK) LLP, Dashwood, 69 Old Broad Street, London EC2M 1QS, UK
T: +44 (0) 20 7583 4055  F: +44 (0) 20 7785 9355 www.cooley.com
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Table of Contents
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1.PURPOSE‌1

2.ELIGIBILITY‌1

3.ADMINISTRATION AND DELEGATION‌1

3.1Administration‌1

3.2Appointment of Committees‌1

4.SHARES AVAILABLE FOR AWARDS‌1

4.1Number of Shares‌1

4.2Share Recycling‌2

4.3Incentive Option Limitations‌2

4.4Substitute Awards‌2

4.5Deed Poll‌3

4.6Prior Plan and Pre-IPO Option Contracts‌3

5.OPTIONS AND SHARE APPRECIATION RIGHTS‌3

5.1General‌3

5.2Exercise Price‌3

5.3Duration‌4

5.4Exercise‌4

5.5Payment Upon Exercise‌4

6.RESTRICTED SHARES; RESTRICTED SHARE UNITS; PERFORMANCE SHARE UNITS‌5

6.1General‌5

6.2Duration‌5

6.3Restricted Shares.‌6

6.4Restricted Share Units.‌7

6.5Performance Share Units.‌7

7.OTHER SHARE BASED AWARDS‌7

8.ADJUSTMENTS FOR CHANGES IN SHARES AND CERTAIN OTHER EVENTS‌7

8.1Equity Restructuring‌7

8.2Corporate Events‌8

8.3Administrative Stand Still‌9

8.4General‌9

9.GENERAL PROVISIONS APPLICABLE TO AWARDS‌10

9.1Transferability‌10

9.2Documentation‌10

9.3Discretion‌10

9.4Termination of Status‌10

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Table of Contents
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9.5Withholding‌10

9.6Amendment of Award; Repricing‌11

9.7Conditions on Delivery of Shares‌11

9.8Acceleration‌12

9.9Additional Terms of Incentive Options‌12

10.MISCELLANEOUS‌12

10.1No Right to Employment or Other Status‌12

10.2No Rights as Shareholder; Certificates‌12

10.3Effective Date and Term of Plan‌13

10.4Amendment of Plan‌13

10.5Provisions for Foreign Participants‌13

10.6Section 409A‌13

10.7Limitations on Liability‌14

10.8Data Privacy‌15

10.9Severability‌15

10.10Governing Documents‌15

10.11Governing Law and Jurisdiction‌16

10.12Claw-back Provisions‌16

10.13Other Group Company policies‌16

10.14Titles and Headings‌16

10.15Conformity to Applicable Laws‌16

10.16Relationship to Other Benefits‌16

10.17Broker-Assisted Sales‌17

11.DEFINITIONS‌17

NON-EMPLOYEE SUB-PLAN‌1

APPENDIX 1 OPTION GRANT NOTICE‌2

APPENDIX 2 RESTRICTED SHARE UNIT GRANT NOTICE‌8

APPENDIX 3 PERFORMANCE SHARE UNIT GRANT NOTICE‌15

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BICYCLE THERAPEUTICS PLC: 2020 EQUITY INCENTIVE PLAN
	1.	PURPOSE

The Plan’s purpose is to enhance the Company’s ability to attract, retain and motivate persons who make (or are expected to make) important contributions to the Company by providing these individuals with equity ownership opportunities. Capitalized terms used in the Plan are defined in Section 11.
	2.	ELIGIBILITY

Service Providers are eligible to be granted Awards under the Plan, subject to the limitations described herein.
	3.	ADMINISTRATION AND DELEGATION

	3.1	Administration 

The Plan is administered by the Administrator. The Administrator has authority to determine which Service Providers receive Awards, grant Awards, set Award terms and conditions, and designate whether such Awards will cover Ordinary Shares or ADSs, subject to the conditions and limitations in the Plan. The Administrator also has the authority to take all actions and make all determinations under the Plan, to interpret the Plan and Award Agreements and to adopt, amend and repeal Plan administrative rules, guidelines and practices as it deems advisable. The Administrator may correct defects and ambiguities, supply omissions and reconcile inconsistencies in the Plan or any Award as it deems necessary or appropriate to administer the Plan and any Awards. The Administrator’s determinations under the Plan are in its sole discretion and will be final and binding on all persons having or claiming any interest in the Plan or any Award.
	3.2	Appointment of Committees 

To the extent Applicable Laws permit, the Board may delegate any or all of its powers under the Plan to one or more Committees or officers of the Company or any of its Subsidiaries. The Board may abolish any Committee or re-vest in itself any previously delegated authority at any time.
	4.	SHARES AVAILABLE FOR AWARDS

	4.1	Number of Shares 

Subject to adjustment under Section 8 and the terms of this Section 4, Awards may be made under the Plan (taking account of Awards granted under the Non-Employee Sub-Plan) in an aggregate amount up to 4,773,557 Shares (the Share Reserve) (which includes (i) 544,866 Shares, being a number of Shares equal to the Prior Plan’s Available Reserve; (ii) 2,645,465 Shares, being the number of Shares granted under the Prior Plan and which is subsisting as of the Effective Date that may be granted under the Plan pursuant to Section 4.2(b); and (iii) 1,008,547 Shares, being the number of Shares granted under the Pre-IPO Option Contracts and which is subsisting as of the Effective Date that may be granted under the Plan pursuant to Section 4.2(b)). In addition, the Share Reserve will automatically increase on January 1st of 

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the year following the year in which the Company’s shareholders approve the Plan and ending on (and including) January 1, 2030, in an amount equal to 5% of the total number of Shares outstanding on December 31st of the preceding calendar year. Notwithstanding the foregoing, the Board may act prior to January 1st of a given year to provide that there will be no January 1st increase in the Share Reserve for such year or that the increase in the Share Reserve for such year will be a lesser number of Shares than would otherwise occur pursuant to the preceding sentence.
4.2Share Recycling. 
		(a)	If all or any part of an Award or Awards granted under the Plan or the Non-Employee Sub-Plan expires, lapses or is terminated, exchanged for cash, surrendered, repurchased or cancelled without having been fully exercised or is withheld to satisfy a tax withholding obligation in connection with an Award or to satisfy a purchase or exercise price of an Award, the unused Shares covered by the Award or Awards granted under the Plan or the Non-Employee Sub-Plan will, as applicable, become or again be available for Awards granted under the Plan and/or the Non-Employee Sub-Plan. 

		(b)	If all or any part of an option or options to acquire unissued Shares that was granted under the Prior Plan or the Pre-IPO Option Contracts and which is subsisting as of the Effective Date expires, lapses or is terminated, exchanged for cash, surrendered, repurchased or cancelled without having been fully exercised or is withheld to satisfy a tax withholding obligation in connection with an option or to satisfy a purchase or exercise price of an option, in each case on or after the Effective Date, the unused Shares covered by such option or options under the Prior Plan or Pre-IPO Option Contracts (as applicable) shall increase the Share Reserve and shall become available for Awards granted under the Plan and/or the Non-Employee Sub-Plan subject to a maximum of (i) 2,645,465 Shares in respect of the Prior Plan; and (ii) 1,008,547 Shares in respect of the Pre-IPO Option Contracts.

4.3Incentive Option Limitations. 
Subject to adjustment under Section 8, no more than 14,391,000 Shares may be issued pursuant to the exercise of Incentive Options.
4.4Substitute Awards. 
In connection with an entity’s merger or consolidation with the Company or the Company’s acquisition of an entity’s property or stock, the Administrator may grant Awards in substitution for any options or other equity or equity-based awards granted before such merger or consolidation by such entity or its affiliate. Substitute Awards may be granted on such terms as the Administrator deems appropriate, notwithstanding limitations on Awards in the Plan. Substitute Awards will not count against the Share Reserve (nor shall Shares subject to a Substitute Award be added to the Shares available for Awards under the Plan as provided above), except that Shares acquired by exercise of substitute Incentive Options will count against the maximum number of Shares that may be issued pursuant to the exercise of Incentive Options under the Plan. Additionally, in the event that a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines has shares 

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available under a pre-existing plan approved by shareholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan (and Shares subject to such Awards shall not be added to the Shares available for Awards under the Plan as provided above); provided that Awards using such available shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not Employees or Directors prior to such acquisition or combination.
4.5Deed Poll. 
The Administrator may grant Awards by entering into a deed poll and, as soon as practicable after the Company has executed the deed poll, the Administrator shall enter into an Award Agreement
4.6Prior Plan and Pre-IPO Option Contracts. 
Upon the Effective Date, (1) no further new awards may be granted over Shares under the Prior Plan or pursuant to the Pre-IPO Option Contracts; and (2) the number of Shares subject to the Prior Plan’s Available Reserve shall cease to be available for grant under the Prior Plan and shall become available for grant hereunder pursuant to Section 4.1 above.
	5.	OPTIONS AND SHARE APPRECIATION RIGHTS

5.1General. 
The Administrator may grant Options or Share Appreciation Rights to Service Providers subject to the limitations in the Plan, including any limitations in the Plan that apply to Incentive Options. The Administrator will determine the number of Shares covered by each Option and Share Appreciation Right, the exercise price of each Option and Share Appreciation Right and the conditions and limitations applicable to the exercise of each Option and Share Appreciation Right. A Share Appreciation Right will entitle the Participant (or other person entitled to exercise the Share Appreciation Right) to receive from the Company upon exercise of the exercisable portion of the Share Appreciation Right an amount determined by multiplying the excess, if any, of the Fair Market Value of one Share on the date of exercise over the exercise price per Share of the Share Appreciation Right by the number of Shares with respect to which the Share Appreciation Right is exercised, subject to any limitations of the Plan or that the Administrator may impose and payable in cash, Shares valued at Fair Market Value or a combination of the two as the Administrator may determine or provide in the Award Agreement. A Participant will have no rights of a shareholder with respect to Shares subject to any Option or Share Appreciation Right unless and until any Shares are delivered in settlement of the Option or Share Appreciation Right.
5.2Exercise Price. 

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The Administrator will establish each Option’s and Share Appreciation Right’s exercise price and specify the exercise price in the Award Agreement. The exercise price will not be less than 100% of the Fair Market Value on the grant date of the Option or Share Appreciation Right.
5.3Duration. 
Each Option or Share Appreciation Right will be exercisable at such times and as specified in the Award Agreement, provided that the term of an Option or Share Appreciation Right will not exceed ten years. Notwithstanding the foregoing and unless determined otherwise by the Company, in the event that on the last business day of the term of an Option or Share Appreciation Right (other than an Incentive Option) (i) the exercise of the Option or Share Appreciation Right is prohibited by Applicable Laws, as determined by the Company, or (ii) Shares may not be purchased or sold by the applicable Participant due to any Company insider trading or dealing policy (including blackout periods), the term of the Option or Share Appreciation Right shall be extended until the date that is thirty (30) days after the end of the legal prohibition, black-out period, as determined by the Company; provided, however, in no event shall the extension last beyond the ten year term of the applicable Option or Share Appreciation Right. Notwithstanding the foregoing, if the Participant, prior to the end of the term of an Option or Share Appreciation Right, violates the non-competition, non-solicitation, confidentiality or other similar restrictive covenant provisions of any employment contract, confidentiality and nondisclosure agreement or other agreement between the Participant and the Company or any of its Subsidiaries, the right of the Participant and the Participant’s transferees to exercise any Option or Share Appreciation Right issued to the Participant shall terminate immediately upon such violation, unless the Company otherwise determines. In addition, if, prior to the end of the term of an Option or Share Appreciation Right, the Participant is given notice by the Company or any of its Subsidiaries of the Participant’s Termination of Service by the Company or any of its Subsidiaries for Cause, and the effective date of such Termination of Service is subsequent to the date of the delivery of such notice, the right of the Participant and the Participant’s transferees to exercise any Option or Share Appreciation Right issued to the Participant shall be suspended from the time of the delivery of such notice until the earlier of (i) such time as it is determined or otherwise agreed that the Participant’s service as a Service Provider will not be terminated for Cause as provided in such notice or (ii) the effective date of the Participant’s Termination of Service by the Company or any of its Subsidiaries for Cause (in which case the right of the Participant and the Participant’s transferees to exercise any Option or Share Appreciation Right issued to the Participant will terminate immediately upon the effective date of such Termination of Service).
5.4Exercise. 
Options and Share Appreciation Rights may be exercised by delivering to the Company a written notice of exercise, in a form the Administrator approves (which may be electronic), signed by the person authorized to exercise the Option or Share Appreciation Right, together with, as applicable, payment in full (i) as specified in Section 5.5 for the number of Shares for which the Award is exercised and (ii) as specified in Section 9.5 for any applicable taxes. Unless the Administrator otherwise determines, an Option or Share Appreciation Right may not be exercised for a fraction of a Share.
5.5Payment Upon Exercise. 

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Subject to any Company insider trading or dealing policy (including blackout periods) and Applicable Laws, the exercise price of an Option must be paid by:
		(a)	cash, wire transfer of immediately available funds or by check payable to the order of the Company, provided that the Company may limit the use of one of the foregoing payment forms if one or more of the payment forms below is permitted;

		(b)	if there is a public market for Shares at the time of exercise, unless the Company otherwise determines, (A) delivery (including telephonically to the extent permitted by the Company) of an irrevocable and unconditional undertaking by a broker acceptable to the Company to deliver promptly to the Company sufficient funds to pay the exercise price, or (B) the Participant’s delivery to the Company of a copy of irrevocable and unconditional instructions to a broker acceptable to the Company to deliver promptly to the Company cash or a check sufficient to pay the exercise price; provided that such amount is paid to the Company at such time as may be required by the Administrator;

		(c)	to the extent permitted by the Administrator, delivery (either by actual delivery or attestation) of Shares owned by the Participant which, when valued at their Fair Market Value on the exercise date, have a value sufficient to pay the exercise price;

		(d)	to the extent permitted by the Administrator, except with respect to Incentive Options, surrendering Shares then issuable upon the Option’s exercise which, when valued at their Fair Market Value on the exercise date; have a value sufficient to pay the exercise price

		(e)	to the extent permitted by the Administrator, delivery of a promissory note or any other property that the Administrator determines is good and valuable consideration; or

		(f)	to the extent permitted by the Company, any combination of the above payment forms approved by the Administrator.

	6.	RESTRICTED SHARES; RESTRICTED SHARE UNITS; PERFORMANCE SHARE UNITS

6.1General. 
The Administrator may grant Restricted Shares, or the right to purchase Restricted Shares, to any Service Provider, subject to the Company’s right to repurchase all or part of such shares at their issue price or other stated or formula price from the Participant (or to require forfeiture of such shares) if conditions the Administrator specifies in the Award Agreement are not satisfied before the end of the applicable restriction period or periods that the Administrator establishes for such Award. In addition, the Administrator may grant to Service Providers Restricted Share Units, which may be subject to vesting and forfeiture conditions during the applicable restriction period or periods, as set forth in an Award Agreement. The Administrator will determine and set forth in the Award Agreement the terms and conditions for each Restricted Share and Restricted Share Unit Award, subject to the conditions and limitations contained in the Plan.
6.2Duration. 

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Each Restricted Share, Restricted Share Unit or Performance Share Unit will vest at such times and as specified in the Award Agreement, provided that the vesting schedule of a Restricted Share, Restricted Share Unit or Performance Share Unit will not exceed ten years. Notwithstanding the foregoing and unless determined otherwise by the Company, in the event that on the normal vesting date of a Restricted Share, Restricted Share Unit or Performance Share Unit (i) the vesting of the Restricted Share, Restricted Share Unit or Performance Share Unit is prohibited by Applicable Laws, as determined by the Company, or (ii) Shares may not be purchased or sold by the applicable Participant due to any Company insider trading or dealing policy (including blackout periods), the vesting date of the Restricted Share, Restricted Share Unit or Performance Share Unit shall be deferred until the end of the legal prohibition, black-out period, as determined by the Company. Notwithstanding the foregoing, if the Participant, prior to the vesting date of a Restricted Share, Restricted Share Unit or Performance Share Unit, violates the non-competition, non-solicitation, confidentiality or other similar restrictive covenant provisions of any employment contract, confidentiality and nondisclosure agreement or other agreement between the Participant and the Company or any of its Subsidiaries, the right of the Participant and the Participant’s transferees to receive Shares on the vesting of the Restricted Share, Restricted Share Unit or Performance Share Unit issued to the Participant shall terminate immediately upon such violation, unless the Company otherwise determines. In addition, if, prior to the vesting date of a Restricted Share, Restricted Share Unit or Performance Share Unit, the Participant is given notice by the Company or any of its Subsidiaries of the Participant’s Termination of Service by the Company or any of its Subsidiaries for Cause, and the effective date of such Termination of Service is subsequent to the date of the delivery of such notice, the right of the Participant and the Participant’s transferees to receive Shares on the vesting of the Restricted Share, Restricted Share Unit or Performance Share Unit issued to the Participant shall be suspended from the time of the delivery of such notice until the earlier of (i) such time as it is determined or otherwise agreed that the Participant’s service as a Service Provider will not be terminated for Cause as provided in such notice or (ii) the effective date of the Participant’s Termination of Service by the Company or any of its Subsidiaries for Cause (in which case the right of the Participant and the Participant’s transferees to receive Shares on the vesting of the Restricted Share, Restricted Share Unit or Performance Share Unit issued to the Participant will terminate immediately upon the effective date of such Termination of Service).
	6.3	Restricted Shares.

		(a)	Dividends. 

Participants holding Restricted Shares will be entitled to all ordinary cash dividends paid with respect to such Shares, unless the Administrator provides otherwise in the Award Agreement. In addition, unless the Administrator provides otherwise, if any dividends or distributions are paid in Shares, or consist of a dividend or distribution to holders of Restricted Shares of property other than an ordinary cash dividend, the Shares or other property will be subject to the same restrictions on transferability and forfeitability as the Restricted Shares with respect to which they were paid.
		(b)	Certificates. 

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The Company may require that the Participant deposit in escrow with the Company (or its designee) any certificates issued in respect of Restricted Shares, together with a stock transfer form endorsed in blank.
	6.4	Restricted Share Units.

		(a)	Settlement. 

The Administrator may provide that settlement of Restricted Share Units will occur upon or as soon as reasonably practicable after the Restricted Share Units vest or will instead be deferred, on a mandatory basis or at the Participant’s election.
		(b)	Shareholder Rights. 

A Participant will have no rights of a shareholder with respect to Shares subject to any Restricted Share Unit unless and until the Shares are delivered in settlement of the Restricted Share Unit.
	6.5	Performance Share Units.

		(a)	Settlement. 

The Administrator may provide that settlement of Performance Share Units will occur upon or as soon as reasonably practicable after the Performance Share Units vest or will instead be deferred, on a mandatory basis or at the Participant’s election.
		(b)	Shareholder Rights. 

A Participant will have no rights of a shareholder with respect to Shares subject to any Performance Share Unit unless and until the Shares are delivered in settlement of the Performance Share Unit.
	7.	OTHER SHARE BASED AWARDS 

Other Share Based Awards may be granted to Participants, including Awards entitling Participants to receive Shares to be delivered in the future (whether based on specified Performance Criteria or otherwise), in each case subject to any conditions and limitations in the Plan. Such Other Share Based Awards will also be available as a payment form in the settlement of other Awards, as standalone payments and as payment in lieu of compensation to which a Participant is otherwise entitled. Other Share Based Awards may be paid in Shares or other property, as the Administrator determines. Subject to the provisions of the Plan, the Administrator will determine the terms and conditions of each Other Share Based Award, including any purchase price, performance goal (which may be based on the Performance Criteria), transfer restrictions, and vesting conditions, which will be set forth in the applicable Award Agreement.
	8.	ADJUSTMENTS FOR CHANGES IN SHARES AND CERTAIN OTHER EVENTS

8.1Equity Restructuring. 

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In connection with any Equity Restructuring, notwithstanding anything to the contrary in this Section 8, the Administrator will equitably adjust the Share Reserve, the number of Shares available for the grant of Incentive Options under Section 4.3 above and each outstanding Award as it deems appropriate to reflect the Equity Restructuring, which may include adjusting the number and type of securities subject to each outstanding Award and/or the Award’s exercise price or grant price (if applicable), granting new Awards to Participants, and making a cash payment to Participants. The adjustments provided under this Section 8.1 will be nondiscretionary and final and binding on the affected Participant and the Company; provided that the Administrator will determine whether an adjustment is equitable.
8.2Corporate Events. 
		(a)	Subject to Section 8.2(b) below, in the event of any Equity Restructuring, dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), capitalization, share issue, offer, subdivision, reorganization, merger, consolidation, combination, amalgamation, repurchase, recapitalization, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, or sale or exchange of Shares or other securities of the Company, Change in Control, issuance of warrants or other rights to purchase Shares or other securities of the Company, other similar corporate transaction or event, other unusual or nonrecurring transaction or event affecting the Company or its financial statements or any change in any Applicable Laws or accounting principles (any “Corporate Event”), the Administrator, on such terms and conditions as it deems appropriate, either by the terms of the Award or by action taken prior to the occurrence of such transaction or event (except that action to give effect to a change in Applicable Laws or accounting principles may be made within a reasonable period of time after such change) and either automatically or upon the Participant’s request, is hereby authorized to take any one or more of the following actions whenever the Administrator determines that such action is appropriate in order to (x) prevent dilution or enlargement of the benefits or potential benefits intended by the Company to be made available under the Plan or with respect to any Award granted or issued under the Plan, (y) to facilitate such transaction or event or (z) give effect to such changes in, or prevent a breach of, Applicable Laws or accounting principles:

		(i)	To provide for the cancellation of any such Award in exchange for either an amount of cash or other property with a value equal to the amount that could have been obtained upon the exercise or settlement of the vested portion of such Award or realization of the Participant’s rights under the vested portion of such Award, as applicable; provided that, if the amount that could have been obtained upon the exercise or settlement of the vested portion of such Award or realization of the Participant’s rights, in any case, is equal to or less than zero (as determined by the Administrator in its discretion), then the Award may be terminated without payment.  In addition, such payments under this provision may, in the Administrator’s discretion, be delayed to the same extent that payment of consideration to the holders of Ordinary Shares in connection with the Corporate Event is delayed as a result of escrows, earn outs, holdbacks or any other contingencies;

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		(ii)	To provide that such Award shall vest and, to the extent applicable, be exercisable as to all shares covered thereby, notwithstanding anything to the contrary in the Plan or the provisions of such Award;

		(iii)	To provide that such Award be assumed by the successor or survivor corporation, or a parent or Subsidiary thereof, or shall be substituted for by awards covering the equity securities of the successor or survivor corporation, or a parent or Subsidiary thereof, with appropriate adjustments as to the number and kind of shares and/or applicable exercise or purchase price, in all cases, as determined by the Administrator;

		(iv)	To make adjustments in the number and type of shares (or other securities or property) subject to outstanding Awards and/or with respect to which Awards may be granted under the Plan (including, but not limited to, adjustments of the limitations in Section 4 hereof on the maximum number and kind of shares which may be issued) and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding Awards;

		(v)	To replace such Award with other rights or property selected by the Administrator; and/or

		(vi)	To provide that the Award will terminate and cannot vest, be exercised or become payable after the applicable transaction or event.

The Administrator need not take the same action or actions with respect to all Awards or portions thereof or with respect to all Participants.  The Administrator may take different actions with respect to the vested and unvested portions of an Award.
		(b)	In the event of a Change in Control, Awards will vest in full effective immediately prior to the occurrence of such Change in Control.  Any such Awards granted in the form of Options may be exercised immediately prior to the occurrence of such Change in Control or within such period thereafter not exceeding 6 months as the Administrator shall determine.  Any Options not exercised within such period shall lapse.

8.3Administrative Stand Still. 
In the event of any pending Corporate Event or other similar transaction, for administrative convenience, the Administrator may refuse to permit the exercise of any Award for up to sixty days before or after such Corporate Event or other similar transaction.
8.4General. 
Except as expressly provided in the Plan or the Administrator’s action under the Plan, no Participant will have any rights due to any subdivision or consolidation of Shares of any class, dividend payment, increase or decrease in the number of Shares of any class, issue, rights issue, offer or dissolution, liquidation, merger, or consolidation of the Company or other corporation. Except as expressly provided with respect to an Equity Restructuring under Section 8.1 above or the Administrator’s action under the Plan, no issuance by the Company of Shares of any class, or securities convertible into Shares of any class, will affect, and no adjustment will be made regarding, the number of Shares subject to an Award or the Award’s 

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grant or exercise price. The existence of the Plan, any Award Agreements and the Awards granted hereunder will not affect or restrict in any way the Company’s right or power to make or authorize (i) any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, (ii) any Corporate Event or (iii) sale or issuance of securities, including securities with rights superior to those of the Shares or securities convertible into or exchangeable for Shares. The Administrator may treat Participants and Awards (or portions thereof) differently under this Section 8.
	9.	GENERAL PROVISIONS APPLICABLE TO AWARDS

9.1Transferability. 
Except as the Administrator may determine or provide in an Award Agreement or otherwise for Awards other than Incentive Options, Awards may not be sold, assigned, transferred, pledged or otherwise encumbered, either voluntarily or by operation of law, except by will or the laws of descent and distribution, or, subject to the Administrator’s consent, pursuant to a domestic relations order, and, during the life of the Participant, will be exercisable only by the Participant. References to a Participant, to the extent relevant in the context, will include references to a Participant’s authorized transferee that the Administrator specifically approves.
9.2Documentation. 
Each Award will be evidenced in an Award Agreement, which may be written or electronic, as the Administrator determines. Each Award may contain terms and conditions in addition to those set forth in the Plan.
9.3Discretion. 
Except as the Plan otherwise provides, each Award may be made alone or in addition or in relation to any other Award. The terms of each Award to a Participant need not be identical, and the Administrator need not treat Participants or Awards (or portions thereof) uniformly.
9.4Termination of Status. 
The Administrator will determine how the disability, death, retirement, authorized leave of absence or any other change or purported change in a Participant’s Service Provider status affects an Award and the extent to which, and the period during which, the Participant, the Participant’s legal representative, conservator, guardian or Designated Beneficiary may exercise rights under the Award, if applicable.
9.5Withholding. 
Each Participant must pay the Company, or make provision satisfactory to the Administrator for payment of, any taxes (which includes any social security contributions or the like) required by law to be withheld or paid by the Company or by any Subsidiary that is the employing entity of the Participant in connection with such Participant’s Awards by the date of the event creating the tax liability. The Company may deduct an amount sufficient to satisfy such tax obligations based on the minimum statutory withholding rates (or such other rate as may be determined by the Company after considering any accounting consequences or costs) from any payment of any kind otherwise due to a Participant. Subject to any Company insider trading or dealing 

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policy (including blackout periods), Participants may satisfy such tax obligations (i) in cash, by wire transfer of immediately available funds, by check made payable to the order of the Company, provided that the Company may limit the use of the foregoing payment forms if one or more of the payment forms below is permitted, (ii) to the extent permitted by the Administrator, in whole or in part by delivery of Shares, including Shares retained from the Award creating the tax obligation, valued at their Fair Market Value, (iii) if there is a public market for Shares at the time the tax obligations are satisfied, unless the Company otherwise determines, (A) delivery (including telephonically to the extent permitted by the Company) of an irrevocable and unconditional undertaking by a broker acceptable to the Company to deliver promptly to the Company sufficient funds to satisfy the tax obligations, or (B) delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions to a broker acceptable to the Company to deliver promptly to the Company cash or a check sufficient to satisfy the tax and/or social security withholding, provided that such amount is paid to the Company at such time as may be required by the Administrator, or (iv) to the extent permitted by the Company, any combination of the foregoing payment forms approved by the Administrator. If any tax and/or social security withholding obligation will be satisfied under clause (ii) of the immediately preceding sentence by the Company’s retention of Shares from the Award creating the tax obligation and there is a public market for Shares at the time the tax obligation is satisfied, the Company may elect to instruct any brokerage firm determined acceptable to the Company for such purpose to sell on the applicable Participant’s behalf some or all of the Shares retained and to remit the proceeds of the sale to the Company or its designee, and each Participant’s acceptance of an Award under the Plan will constitute the Participant’s authorization to the Company and instruction and authorization to such brokerage firm to complete the transactions described in this sentence.
9.6Amendment of Award; Repricing. 
The Administrator may amend, modify or terminate any outstanding Award, including by substituting another Award of the same or a different type, reducing the exercise price, changing the exercise or settlement date, converting an Incentive Option to a Non-Qualified Option, or by amending, waiving or relaxing any Performance Condition. The Participant’s consent to such action will be required unless (i) the action, taking into account any related action, does not materially and adversely affect the Participant’s rights under the Award, or (ii) the change is permitted under Section 8 or pursuant to Section 10.6. Without limitation to the foregoing, the Administrator may, without the approval of the shareholders of the Company, reduce the exercise price per share of outstanding Options or Share Appreciation Rights or cancel outstanding Options or Share Appreciation Rights in exchange for cash, other Awards or Options or Share Appreciation Rights with an exercise price per share that is less than the exercise price per share of the original Options or Share Appreciation Rights.
9.7Conditions on Delivery of Shares. 
The Company will not be obligated to deliver any Shares under the Plan or remove restrictions from Shares previously delivered under the Plan until (i) all Award conditions have been met or removed to the Company’s satisfaction, (ii) as determined by the Company, all other legal matters regarding the issuance and delivery of such Shares (including payment of nominal value) have been satisfied, including any applicable securities laws and stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to the Company such representations or agreements as the Administrator deems necessary or 

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appropriate to satisfy any Applicable Laws. The Company’s inability to obtain authority from any regulatory body having jurisdiction, which the Administrator determines is necessary to the lawful issuance and sale of any securities, will relieve the Company of any liability for failing to issue or sell such Shares as to which such requisite authority has not been obtained.
9.8Acceleration. 
The Administrator may at any time provide that any Award will become immediately vested and fully or partially exercisable, free of some or all restrictions or conditions, or otherwise fully or partially realizable.
9.9Additional Terms of Incentive Options. 
The Administrator may grant Incentive Options only to employees of the Company, any of its present or future parent or subsidiary corporations, as defined in Sections 424(e) or (f) of the Code, respectively, and any other entities the employees of which are eligible to receive Incentive Options under the Code. If an Incentive Option is granted to a Greater Than 10% Shareholder, the exercise price will not be less than 110% of the Fair Market Value on the Option’s grant date, and the term of the Option will not exceed five years. All Incentive Options will be subject to and construed consistently with Section 422 of the Code. By accepting an Incentive Option, the Participant agrees to give prompt notice to the Company of dispositions or other transfers (other than in connection with a Change in Control) of Shares acquired under the Option made within (i) two years from the grant date of the Option or (ii) one year after the transfer of such Shares to the Participant, specifying the date of the disposition or other transfer and the amount the Participant realized, in cash, other property, assumption of indebtedness or other consideration, in such disposition or other transfer. Neither the Company nor the Administrator will be liable to a Participant, or any other party, if an Incentive Option fails or ceases to qualify as an “incentive stock option” under Section 422 of the Code. Any Incentive Option or portion thereof that fails to qualify as an “incentive stock option” under Section 422 of the Code for any reason, including becoming exercisable with respect to Shares having a fair market value exceeding the $100,000 limitation under Treasury Regulation Section 1.422-4, will be a Non-Qualified Option.
	10.	MISCELLANEOUS

10.1No Right to Employment or Other Status. 
No person will have any claim or right to be granted an Award, and the grant of an Award will not be construed as giving a Participant the right to continued employment or any other relationship with the Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant free from any liability or claim under the Plan or any Award, except as expressly provided in an Award Agreement.
10.2No Rights as Shareholder; Certificates. 
Subject to the Award Agreement, no Participant or Designated Beneficiary will have any rights as a shareholder with respect to any Shares to be distributed under an Award until becoming the record holder of such Shares. Notwithstanding any other provision of the Plan, unless the Administrator otherwise determines or Applicable Laws require, the Company will not be required to deliver to any Participant certificates evidencing Shares issued in connection with 

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any Award and instead such Shares may be recorded in the books of the Company (or, as applicable, its transfer agent or stock plan administrator). The Company may place legends on certificates issued under the Plan that the Administrator deems necessary or appropriate to comply with Applicable Laws.
10.3Effective Date and Term of Plan. 
The Plan will become effective on the day it is approved by the Company’s shareholders (the Effective Date) and, unless earlier terminated by the Board, will remain in effect until the tenth anniversary of the Effective Date, but Awards previously granted may extend beyond that date in accordance with the Plan. If the Plan is not approved by the Company’s shareholders, the Plan will not become effective, no Awards will be granted under the Plan and the Prior Plan will continue in full force and effect in accordance with its terms. No Incentive Option may be granted after the tenth anniversary of the earlier of (i) the date the Plan is adopted by the Board or (ii) the Effective Date. 
10.4Amendment of Plan. 
The Administrator may amend, suspend or terminate the Plan at any time; provided that no amendment, other than an increase to the Share Reserve, may materially and adversely affect any Award outstanding at the time of such amendment without the affected Participant’s consent. No Awards may be granted under the Plan during any suspension period or after Plan termination. Awards outstanding at the time of any Plan suspension or termination will continue to be governed by the Plan and the Award Agreement, as in effect before such suspension or termination. The Board will obtain shareholder approval of any Plan amendment to the extent necessary to comply with Applicable Laws.
10.5Provisions for Foreign Participants. 
The Administrator may modify Awards granted to Participants who are nationals of, or employed in, a jurisdiction outside the United Kingdom and the United States or establish subplans or procedures under the Plan to address differences in laws, rules, regulations or customs of such international jurisdictions with respect to tax, securities, currency, employee benefit or other matters, including as may be necessary in the Administrator’s discretion to grant Awards under any tax-favourable regime that may be available in any jurisdiction.
10.6Section 409A. 
The following provisions only apply to Participants subject to tax in the United States.
		(a)	General. 

The Company intends that all Awards be structured to comply with, or be exempt from, Section 409A, such that no adverse tax consequences, interest, or penalties under Section 409A apply. Notwithstanding anything in the Plan or any Award Agreement to the contrary, the Administrator may, without a Participant’s consent, amend this Plan or Awards, adopt policies and procedures, or take any other actions (including amendments, policies, procedures and retroactive actions) as are necessary or appropriate to preserve the intended tax treatment of Awards, including any such actions intended to (A) exempt this Plan or any Award from Section 409A, or 

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(B) comply with Section 409A, including regulations, guidance, compliance programs and other interpretative authority that may be issued after an Award’s grant date. The Company makes no representations or warranties as to an Award’s tax treatment under Section 409A or otherwise. The Company will have no obligation under this Section 10.6 or otherwise to avoid the taxes, penalties or interest under Section 409A with respect to any Award and will have no liability to any Participant or any other person if any Award, compensation or other benefits under the Plan are determined to constitute noncompliant “nonqualified deferred compensation” subject to taxes, penalties or interest under Section 409A.
		(b)	Separation from Service. 

If an Award constitutes “nonqualified deferred compensation” under Section 409A, any payment or settlement of such Award upon a termination of a Participant’s Service Provider relationship will, to the extent necessary to avoid taxes under Section 409A, be made only upon the Participant’s “separation from service” (within the meaning of Section 409A), whether such “separation from service” occurs upon or after the termination of the Participant’s Service Provider relationship. For purposes of this Plan or any Award Agreement relating to any such payments or benefits, references to a “termination,” “termination of employment” or like terms means a “separation from service.”
		(c)	Payments to Specified Employees. 

Notwithstanding any contrary provision in the Plan or any Award Agreement, any payment(s) of “nonqualified deferred compensation” required to be made under an Award to a “specified employee” (as defined under Section 409A and as the Administrator determines) due to his or her “separation from service” will, to the extent necessary to avoid taxes under Section 409A(a)(2)(B)(i) of the Code, be delayed for the six-month period immediately following such “separation from service” (or, if earlier, until the specified employee’s death) and will instead be paid (as set forth in the Award Agreement) on the day immediately following such six-month period or as soon as administratively practicable thereafter (without interest). Any payments of “nonqualified deferred compensation” under such Award payable more than six months following the Participant’s “separation from service” will be paid at the time or times the payments are otherwise scheduled to be made.
10.7Limitations on Liability. 
Notwithstanding any other provisions of the Plan, no individual acting as a director, officer, other employee or agent of the Company or any Subsidiary will be liable to any Participant, former Participant, spouse, beneficiary, or any other person for any claim, loss, liability, or expense incurred in connection with the Plan or any Award, and such individual will not be personally liable with respect to the Plan because of any contract or other instrument executed in his or her capacity as an Administrator, director, officer, other employee or agent of the Company or any Subsidiary. The Company will indemnify and hold harmless each director, officer, other employee and agent of the Company or any Subsidiary that has been or will be granted or delegated any duty or power relating to the Plan’s administration or interpretation, against any cost or expense (including attorneys’ fees) or liability (including any sum paid in settlement of 

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a claim with the Administrator’s approval) arising from any act or omission concerning this Plan unless arising from such person’s own fraud or bad faith.
10.8Data Privacy. 
		(a) 
	As a condition for receiving any Award, each Participant acknowledges that the Company and any Subsidiary may collect, use and transfer, in electronic or other form, personal data as described in this section by and among the Company and its Subsidiaries and affiliates exclusively for implementing, administering and managing the Participant’s participation in the Plan. The Company (as above) may hold certain personal information about a Participant, including the Participant’s name, address and telephone number; birthdate; social security, insurance number or other identification number; salary; nationality; job title(s); any Shares held in the Company (as above); and Award details, to implement, manage and administer the Plan and Awards (the “Data”). The Company (as above) may transfer the Data amongst themselves as necessary to implement, administer and manage a Participant’s participation in the Plan, and the Company (as above) may transfer the Data to third parties assisting the Company with Plan implementation, administration and management. These recipients may be located in the Participant’s country, or elsewhere, and the Participant’s country may have different data privacy laws and protections than the recipients’ country. By accepting an Award, each Participant acknowledges that such recipients may receive, possess, use, retain and transfer the Data, in electronic or other form, to implement, administer and manage the Participant’s participation in the Plan, including any required Data transfer to a broker or other third party with whom the Company or the Participant may elect to deposit any Shares. The Data related to a Participant will be held only as long as necessary to implement, administer, and manage the Participant’s participation in the Plan. A Participant may, at any time, view the Data that the Company holds regarding such Participant, request additional information about the storage and processing of the Data regarding such Participant and recommend any necessary corrections to the Data regarding the Participant in writing, without cost, by contacting the local human resources representative.

		(b)
	For the purpose of operating the Plan in the European Union and the United Kingdom, the Company will collect and process information relating to Participants in accordance with the privacy notice which is provided to each Participant. 

10.9Severability. 
If any portion of the Plan or any action taken under it is held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the illegal or invalid provisions had been excluded, and the illegal or invalid action will be null and void.
10.10Governing Documents. 
If any contradiction occurs between the Plan and any Award Agreement or other written agreement between a Participant and the Company (or any Subsidiary) that the Administrator has approved, the Plan will govern, unless it is expressly specified in such Award Agreement or other written document that a specific provision of the Plan will not apply.

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All Awards will be subject to Applicable Laws on insider trading and dealing and any specific insider trading or dealing policy adopted by the Company.
10.11Governing Law and Jurisdiction. 
The Plan and all Awards, including any non-contractual obligations arising in connection therewith, will be governed by and interpreted in accordance with the laws of England and Wales, disregarding any jurisdiction’s choice-of-law principles requiring the application of a jurisdiction’s laws other than that of England and Wales and the courts of England and Wales shall have exclusive jurisdiction to hear any dispute.
10.12Claw-back Provisions. 
All Awards (including any proceeds, gains or other economic benefit the Participant actually or constructively receives upon receipt or exercise of any Award or the receipt or resale of any Shares underlying the Award) will be subject to any Company claw-back policy that may be adopted from time to time to the extent such policy applies to the relevant Participant, including any claw-back policy adopted to comply with Applicable Laws (including the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations promulgated thereunder) as set forth in such claw-back policy or the Award Agreement.
	10.13	Other Group Company policies

All Awards (including any proceeds, gains or other economic benefit the Participant actually or constructively receives upon receipt or exercise of any Award or the receipt or resale of any Shares underlying the Award) will be subject to any relevant Company or Group Company policy to the extent such policy applies to the relevant Participant, including but not limited to any remuneration policy and/or share retention, ownership, or holding policy that may be adopted from time to time.
10.14Titles and Headings. 
The titles and headings in the Plan are for convenience of reference only and, if any conflict, the Plan’s text, rather than such titles or headings, will control.
10.15Conformity to Applicable Laws. 
Participant acknowledges that the Plan is intended to conform to the extent necessary with Applicable Laws. Notwithstanding anything herein to the contrary, the Plan and all Awards will be administered only in conformance with Applicable Laws. To the extent Applicable Laws permit, the Plan and all Award Agreements will be deemed amended as necessary to conform to Applicable Laws and may be unilaterally cancelled by the Company (with the effect that all Participant’s rights thereunder lapse with immediate effect) if the Administrator determines in its reasonable discretion that such conformity is not possible or practicable.
10.16Relationship to Other Benefits. 
No payment under the Plan will be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of 

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the Company or any Subsidiary except as expressly provided in writing in such other plan or an agreement thereunder.
10.17Broker-Assisted Sales. 
In the event of a broker-assisted sale of Shares in connection with the payment of amounts owed by a Participant under or with respect to the Plan or Awards, including amounts to be paid under the final sentence of Section 9.5: (a) any Shares to be sold through the broker-assisted sale will be sold (subject in all cases to the Administrator having regard to the orderly marketing and disposal of such Shares, and having the discretion to delay broker-assisted sales for such reasons) on the day the payment first becomes due, or as soon thereafter as practicable; (b) such Shares may be sold as part of a block trade with other Participants in the Plan in which all Participants receive an average price; (c) the applicable Participant will be responsible for all broker’s fees and other costs of sale, and by accepting an Award, each Participant agrees to indemnify and hold the Company harmless from any losses, costs, damages, or expenses relating to any such sale; (d) to the extent the Company or its designee receives proceeds of such sale that exceed the amount owed, the Company will pay such excess in cash to the applicable Participant as soon as reasonably practicable; (e) the Company and its designees are under no obligation to arrange for such sale at any particular price; and (f) in the event the proceeds of such sale are insufficient to satisfy the Participant’s applicable obligation, the Participant may be required to pay immediately upon demand to the Company or its designee, or the Company or any Subsidiary may withhold from any payment to be made to the Participant (including but not limited to that Participant’s salary), an amount in cash sufficient to satisfy any remaining portion of the Participant’s obligation.
	11.	DEFINITIONS

As used in the Plan, the following words and phrases will have the following meanings:
“ADSs” means American Depositary Shares, representing Ordinary Shares on deposit with a U.S. banking institution selected by the Company and which are registered pursuant to a Form F-6.
“Administrator” means the Board or a Committee to the extent that the Board’s powers or authority under the Plan have been delegated to such Committee.
“Applicable Laws” means any applicable laws, including without limitation: (a) the requirements relating to the administration of equity incentive plans under English, U.S. federal and state securities, tax and other applicable laws, rules and regulations, the applicable rules of any stock exchange or quotation system on which the Shares are listed or quoted and the applicable laws and rules of any other country or jurisdiction where Awards are granted; and (b) corporate, securities, tax or other laws, statutes, rules, requirements or regulations, whether U.S. federal, state, local or foreign, applicable in the United Kingdom, United States or any other relevant jurisdiction.
“Award” means, individually or collectively, a grant under the Plan of Options, Share Appreciation Rights, Restricted Shares, Restricted Share Units or Other Share Based Awards.

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“Award Agreement” means a written agreement evidencing an Award, which may be electronic, that contains such terms and conditions as the Administrator determines, consistent with and subject to the terms and conditions of the Plan.
“Board” means the Board of Directors of the Company.
“Cause” means (i) if a Participant is a party to a written employment or consulting agreement with the Company or any of its Subsidiaries or an Award Agreement in which the term “cause” is defined (a “Relevant Agreement”), “Cause” as defined in the Relevant Agreement, and (ii) if no Relevant Agreement exists, (A) the Administrator’s determination that the Participant failed to substantially perform the Participant’s duties (other than a failure resulting from the Participant’s Disability); (B) the Administrator’s determination that the Participant failed to carry out, or comply with any lawful and reasonable directive of the Board or the Participant’s immediate supervisor; (C) the occurrence of any act or omission by the Participant that could reasonably be expected to result in (or has resulted in) the Participant’s conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any felony or indictable offense or crime involving moral turpitude; (D) the Participant’s unlawful use (including being under the influence) or possession of illegal drugs on the premises of the Company or any of its Subsidiaries or while performing the Participant’s duties and responsibilities for the Company or any of its Subsidiaries; or (E) the Participant’s commission of an act of fraud, embezzlement, misappropriation, misconduct, or breach of fiduciary duty against the Company or any of its Subsidiaries.
“Change in Control” means and includes each of the following:
		(a)	a Sale; or

		(b)	a Takeover.

The Administrator shall have full and final authority, which shall be exercised in its sole discretion, to determine conclusively whether a Change in Control has occurred pursuant to the above definition, the date of the occurrence of such Change in Control and any incidental matters relating thereto; provided that any exercise of authority in conjunction with a determination of whether a Change in Control is a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5) shall be consistent with such regulation.
“Code” means the Internal Revenue Code of 1986, as amended, and the regulations issued thereunder.
“Committee” means one or more committees or subcommittees of the Board, which may include one or more Company directors or executive officers, to the extent Applicable Laws permit. To the extent required to comply with the provisions of Rule 16b-3, it is intended that each member of the Committee will be, at the time the Committee takes any action with respect to an Award that is subject to Rule 16b-3, a “non-employee director” within the meaning of Rule 16b-3; however, a Committee member’s failure to qualify as a “non-employee director” within the meaning of Rule 16b-3 will not invalidate any Award granted by the Committee that is otherwise validly granted under the Plan.
“Company” means Bicycle Therapeutics Plc, registered in England and Wales with company number 11036004, or any successor.

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“Control” has the meaning given in section 995(2) of the UK Income Tax Act 2007, unless otherwise specified.
“Corporate Event” has the meaning given to it in Section 8.2(a).“Designated Beneficiary” means the beneficiary or beneficiaries the Participant designates, in a manner the Administrator determines, to receive amounts due or exercise the Participant’s rights if the Participant dies or becomes incapacitated. Without a Participant’s effective designation, “Designated Beneficiary” will mean the Participant’s estate.“Director” means a Board member.
“Disability” means a permanent and total disability under Section 22(e)(3) of the Code, as amended.
“Effective Date” has the meaning given to it in Section 10.3.
“Employee” means any employee of the Company or its Subsidiaries.
“Equity Restructuring” means a nonreciprocal transaction between the Company and its shareholders, such as a share dividend, share split, spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend, that affects the number or kind of Shares (or other Company securities) or the price of Shares (or other Company securities) and causes a change in the per share value of the Shares underlying outstanding Awards.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Fair Market Value” means, as of any date, the value of Shares determined as follows: (i) if the Shares are listed on any established stock exchange, its Fair Market Value will be the closing sales price for Shares as quoted on such exchange for the last day preceding such date during which a sale occurred, as reported in The Wall Street Journal or another source the Administrator deems reliable; (ii) if the Shares are not traded on a stock exchange but is quoted on a national market or other quotation system, the closing sales price on the last date preceding such date during which a sale occurred, as reported in The Wall Street Journal or another source the Administrator deems reliable; or (iii) without an established market for the Shares, the Administrator will determine the Fair Market Value in its discretion. 
“Greater Than 10% Shareholder” means an individual then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of equity securities of the Company or its parent or subsidiary corporation, as defined in Section 424(e) and (f) of the Code, respectively.
“Incentive Option” means an Option intended to qualify as an “incentive stock option” as defined in Section 422 of the Code.
“Non-Employee Sub-Plan” means the Non-Employee Sub-Plan to the Plan adopted by the Board.
“Non-Qualified Option” means an Option not intended or not qualifying as an Incentive Option.
“Option” means an option to purchase Shares.
“Ordinary Share” means an ordinary share of £0.01 each in the capital of the Company.

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“Other Share Based Awards” means awards of Shares, and other awards valued wholly or partially by referring to, or are otherwise based on, Shares or other property.
“Participant” means a Service Provider who has been granted an Award.
“Performance Criteria” mean the criteria (and adjustments) that the Administrator may select for an Award to establish performance goals for a performance period. 
“Plan” means this 2020 Equity Incentive Plan.
“Pre-IPO Option Contracts” means the standalone contracts pursuant to which the Company granted options over Shares prior to 23 May 2019, as amended from time to time.
“Prior Plan” means the Bicycle Therapeutics Share Option Plan adopted by the Board on 9 May 2019 as amended from time to time.
“Prior Plan’s Available Reserve” means the number of Shares available for the grant of new awards under the Prior Plan as of immediately prior to the Effective Date.
“Restricted Shares” means Shares awarded to a Participant under Section 6 subject to certain vesting conditions and other restrictions.
“Restricted Share Unit” means an unfunded, unsecured right to receive, on the applicable settlement date, one Share or an amount in cash or other consideration determined by the Administrator to be of equal value as of such settlement date, subject to certain vesting conditions and other restrictions.
“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act.
“Sale” means the sale of all or substantially all of the assets of the Company.
“Section 409A” means Section 409A of the Code and all regulations, guidance, compliance programs and other interpretative authority thereunder.
“Securities Act” means the Securities Act of 1933, as amended.
“Service Provider” means an Employee or a Director who is an Employee.
“Share” means an Ordinary Share or the number of ADSs equal to an Ordinary Share.
“Share Appreciation Right” means a Share Appreciation right granted under Section 5.
“Share Reserve” has the meaning given to it in Section 4.1.
“Subsidiary” means any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing at least 50% of the total combined voting power of all classes of securities or interests in one of the other entities in such chain.

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“Substitute Awards” means Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously granted, or the right or obligation to make future awards, in each case by a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines.
“Takeover” means if any person (or a group of persons acting in concert) (the “Acquiring Person”):
		(i)	obtains Control of the Company as the result of making a general offer to:-

		(A)	acquire all of the issued ordinary share capital of the Company, which is made on a condition that, if it is satisfied, the Acquiring Person will have Control of the Company; or

		(B)	acquire all of the shares in the Company which are of the same class as the Shares; or

		(ii)	obtains Control of the Company as a result of a compromise or arrangement sanctioned by a court under Section 899 of the UK Companies Act 2006, or sanctioned under any other similar law of another jurisdiction; or

		(iii)	becomes bound or entitled under Sections 979 to 985 of the UK Companies Act 2006 (or similar law of another jurisdiction) to acquire shares of the same class as the Shares; or

		(iv)	obtains Control of the Company in any other way.

“Termination of Service” means the date the Participant ceases to be a Service Provider.
​
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NON-EMPLOYEE SUB-PLAN 
TO THE BICYCLE THERAPEUTICS PLC 2020 EQUITY INCENTIVE PLAN
This sub-plan (the "Non-Employee Sub-Plan") to the Bicycle Therapeutics Plc 2020 Equity Incentive Plan (the “Plan”) governs the grant of Awards to Consultants (defined below) and Directors who are not Employees. The Non-Employee Sub-Plan incorporates all the provisions of the Plan except as modified in accordance with the provisions of this Non-Employee Sub-Plan. 
Awards granted pursuant to the Non-Employee Sub-Plan are not granted pursuant to an “employees’ share scheme” for the purposes of UK legislation.
For the purposes of the Non-Employee Sub-Plan, the provisions of the Plan shall operate subject to the following modifications: 
1.Interpretation
In the Non-Employee Sub-Plan, unless the context otherwise requires, the following words and expressions have the following meanings:
“Consultant” means any person, including any adviser, engaged by the Company or its parent or Subsidiary to render services to such entity if the consultant or adviser: (i) renders bona fide services to the Company; (ii) renders services not in connection with the offer or sale of securities in a capital-raising transaction and does not directly or indirectly promote or maintain a market for the Company’s securities; and (iii) is a natural person.
“Service Provider” means a Consultant or Director who is not an Employee.
2.Eligibility
Service Providers are eligible to be granted Awards under the Non-Employee Sub-Plan.
​
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APPENDIX 1
OPTION GRANT NOTICE
BICYCLE THERAPEUTICS PLC
2020 EQUITY INCENTIVE PLAN [:NON-EMPLOYEE SUB-PLAN]1
Capitalized terms not specifically defined in this Option Grant Notice (the “Grant Notice”) have the meanings given to them in the 2020 Equity Incentive Plan [:Non-Employee Sub-Plan]2 (as amended from time to time, the “Plan”) of Bicycle Therapeutics Plc (the “Company”).
The Company has granted to the participant listed below (“Participant”) the option described in this Grant Notice (the “Option”), subject to the terms and conditions of the Plan and the Option Agreement attached as Exhibit A (the “Agreement”), both of which are incorporated into this Grant Notice by reference.
	Participant:
		
	Grant Date:
		
	Exercise Price per Share:
		
	Shares Subject to the Option:
		
	Final Expiration Date:
		
	Vesting Commencement Date:
		
	Vesting Schedule3:
		[The Option shall vest in full on the Grant Date] 4.
[1/36th of the total number of Shares under Option shall vest at the end of each calendar month following the Grant Date, subject to Participant remaining continuously a Service Provider as of each such date] 5.
[1/4 of the total number of Shares under Option shall vest on the first anniversary of the Vesting Commencement Date, and 1/36th of the remaining number of Shares under Option shall vest monthly thereafter, subject to Participant remaining continuously a Service Provider as of each such date]6.

1 For Consultants and Directors who are not Employees
2 For Consultants and Directors who are not Employees
3 Selection of applicable vesting schedule, or determination that a different vesting schedule shall apply, subject to discretion of Administrator.
4 For options granted to members of the Company’s board of directors (who are not Employees) as part of the Company’s annual grant on or following the date of its annual general meeting.
5 For other options granted to members of the Company’s board of directors (who are not Employees).
6 For other options granted to Employees.

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	Type of Option
		[Incentive Option7/Non-Qualified Option8]

By Participant’s signature below, Participant agrees to be bound by the terms of this Grant Notice, the Plan, the Agreement and any Group Company policy that may be applicable to the Participant and the Option from time to time (the “Policies”).  Participant has reviewed the Plan, this Grant Notice, the Agreement and the Policies in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, this Grant Notice, the Agreement and the Policies. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, this Grant Notice or the Agreement.
​
	BICYCLE THERAPEUTICS PLC
	PARTICIPANT

	By:
			
	:
	Name
		[Participant Name]

		Title:
		

​

7 For US taxpayer employees.
8 For all other Service Providers.

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Exhibit A
OPTION AGREEMENT
Capitalized terms not specifically defined in this Agreement have the meanings specified in the Grant Notice or, if not defined in the Grant Notice, in the Plan.
	1.	GENERAL

1.1Grant of Option. 
The Company has granted to Participant the Option effective as of the grant date set forth in the Grant Notice (the “Grant Date”).
1.2Incorporation of Terms of Plan. 
The Option is subject to the terms and conditions set forth in this Agreement and the Plan, which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan will control.
	2.	PERIOD OF EXERCISABILITY

2.1Commencement of Exercisability. 
The Option will vest and become exercisable according to the vesting schedule in the Grant Notice (the “Vesting Schedule”) except that any fraction of a Share as to which the Option would be vested or exercisable will be accumulated and will vest and become exercisable only when a whole Share has accumulated. Notwithstanding anything in the Grant Notice, the Plan or this Agreement to the contrary, except as otherwise determined by the Administrator or provided in a binding written agreement between Participant and the Company, the Option will immediately expire and be forfeited as to any portion that is not vested and exercisable as of Participant’s Termination of Service for any reason.
2.2Duration of Exercisability. 
The Vesting Schedule is cumulative. Any portion of the Option which vests and becomes exercisable will remain vested and exercisable until the Option expires. The Option will be forfeited immediately upon its expiration.
2.3Expiration of Option. 
The Option may not be exercised to any extent by anyone after, and will expire on, the first of the following to occur:
		(a)	The final expiration date in the Grant Notice;

		(b)	Except as the Administrator may otherwise approve, the expiration of twelve (12) months from the date of Participant’s Termination of Service; and

		(c)	Except as the Administrator may otherwise approve, Participant’s Termination of Service for Cause.

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	3.	EXERCISE OF OPTION

3.1Person Eligible to Exercise. 
During Participant’s lifetime, only Participant may exercise the Option. After Participant’s death, any exercisable portion of the Option may, prior to the time the Option expires, be exercised by Participant’s Designated Beneficiary as provided in the Plan.
3.2Partial Exercise. 
Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised, in whole or in part, according to the procedures in the Plan at any time prior to the time the Option or portion thereof expires, except that the Option may only be exercised for whole Shares.
	3.3	Tax Withholding.

		(a)	The Company has the right and option, but not the obligation, to treat Participant’s failure to provide timely payment in accordance with the Plan of any withholding tax arising in connection with the Option as Participant’s election to satisfy all or any portion of the withholding tax by requesting the Company retain Shares otherwise issuable under the Option.

		(b)	Participant acknowledges that Participant is ultimately liable and responsible for all taxes owed in connection with the Option, regardless of any action the Company or any Subsidiary takes with respect to any tax and/or social security withholding obligations that arise in connection with the Option. Neither the Company nor any Subsidiary makes any representation or undertaking regarding the treatment of any tax and/or social security withholding in connection with the awarding, vesting or exercise of the Option or the subsequent sale of Shares. The Company and the Subsidiaries do not commit and are under no obligation to structure the Option to reduce or eliminate Participant’s tax and/or social security liability.

	4.	OTHER PROVISIONS

4.1Adjustments. 
Participant acknowledges that the Option is subject to adjustment, modification and termination in certain events as provided in this Agreement and the Plan.
4.2Notices. 
Any notice to be given under the terms of this Agreement to the Company must be in writing and addressed to the Company in care of the Company’s Secretary at the Company’s principal office or the Secretary’s then-current email address. Any notice to be given under the terms of this Agreement to Participant must be in writing and addressed to Participant (or, if Participant is then deceased, to the person entitled to exercise the Option) at Participant’s last known mailing address or email address in the Company’s personnel files. By a notice given pursuant to this Section, either party may designate a different address for notices to be given to that party. Any notice will be deemed duly given: (i) if sent by email, when actually received; and (ii) 

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if sent by certified mail (return receipt requested) and deposited with postage prepaid in the applicable national mail, when delivered by a nationally recognized express shipping company.
4.3Titles. 
Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
4.4Conformity to Applicable Laws. 
Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent necessary with all Applicable Laws and, to the extent Applicable Laws permit, will be deemed amended as necessary to conform to Applicable Laws, and this Option may be unilaterally cancelled by the Company (with the effect that all Participant’s rights hereunder lapse with immediate effect) if the Administrator determines in its reasonable discretion that such conformity is not possible or practicable.
4.5Successors and Assigns. 
The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.
4.6Limitations Applicable to Section 16 Persons. 
Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement and the Option will be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3) that are requirements for the application of such exemptive rule. To the extent Applicable Laws permit, this Agreement will be deemed amended as necessary to conform to such applicable exemptive rule.
4.7Entire Agreement. 
The Plan, the Grant Notice and this Agreement (including any exhibit hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof.
4.8Agreement Severable. 
In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the provision will be severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement.
4.9Limitation on Participant’s Rights. 
Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts 

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payable and may not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. Participant will have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the Option, and rights no greater than the right to receive the Shares as a general unsecured creditor with respect to the Option, as and when exercised pursuant to the terms hereof.
4.10Not a Contract of Employment. 
Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right to continue in the employ or service of the Company or any Subsidiary or interferes with or restricts in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between the Company or a Subsidiary and Participant.
4.11Counterparts. 
The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable Laws, each of which will be deemed an original and all of which together will constitute one instrument.
4.12Incentive Options. 
If the Option is designated as an Incentive Option:
		(a)	Participant acknowledges that to the extent the aggregate fair market value of shares (determined as of the time the option with respect to the shares is granted) with respect to which options intended to qualify as “incentive stock options” under Section 422 of the Code, including the Option, are exercisable for the first time by Participant during any calendar year exceeds $100,000 or if for any other reason such options do not qualify or cease to qualify for treatment as “incentive stock options” under Section 422 of the Code, such options (including the Option) will be treated as non-qualified options. Participant further acknowledges that the rule set forth in the preceding sentence will be applied by taking the Option and other options into account in the order in which they were granted, as determined under Section 422(d) of the Code. 

		(b)	Participant also acknowledges that if the Option is exercised more than three (3) months after Participant’s Termination of Service, other than by reason of death or Disability, the Option will be taxed as a Non-Qualified Option.

		(c)	Participant will give prompt written notice to the Company of any disposition or other transfer of any Shares acquired under this Agreement if such disposition or other transfer is made (a) within two (2) years from the Grant Date or (b) within one (1) year after the transfer of such Shares to Participant. Such notice will specify the date of such disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness or other consideration, by Participant in such disposition or other transfer.

​
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APPENDIX 2
RESTRICTED SHARE UNIT GRANT NOTICE
BICYCLE THERAPEUTICS PLC
2020 EQUITY INCENTIVE PLAN [:NON-EMPLOYEE SUB-PLAN]9
Capitalized terms not specifically defined in this Restricted Share Unit Grant Notice (the “Grant Notice”) have the meanings given to them in the 2020 Equity Incentive Plan [: Non-Employee Sub-Plan]10 (as amended from time to time, the “Plan”) of Bicycle Therapeutics Plc (the “Company”).
​
The Company has granted to the participant listed below (“Participant”) the Restricted Share Units (the “RSUs”) described in this Grant Notice (the “Award”), subject to the terms and conditions of the Plan and the Restricted Share Unit Agreement attached as Exhibit A (the “Agreement”), both of which are incorporated into this Grant Notice by reference.
​
	Participant:
		
	Grant Date:
		
	Number of RSUs:
		
	Vesting Commencement Date:
		
	Vesting Schedule11:
		[The Award shall vest in full on the Grant Date] 12.
[1/12th of the total number of Shares under Award shall vest at the end of each quarter following the Grant Date, subject to Participant remaining continuously a Service Provider as of each such date] 13.
[1/4 of the total number of Shares under Award shall vest on the first anniversary of the Vesting Commencement Date, and 1/12th of the remaining number of Shares under Award shall vest quarterly thereafter, subject to Participant remaining continuously a Service Provider as of each such date]14.

9 For Consultants and Directors who are not Employees
10 For Consultants and Directors who are not Employees
11 Selection of applicable vesting schedule, or determination that a different vesting schedule shall apply, subject to discretion of Administrator.
12 For RSUs granted to members of the Company’s board of directors (who are not Employees) as part of the Company’s annual grant on or following the date of its annual general meeting.
13 For other RSUs granted to members of the Company’s board of directors (who are not Employees).
14 For RSUs granted to Employees.

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By Participant’s signature below, Participant agrees to be bound by the terms of this Grant Notice, the Plan, the Agreement and any Group Company policy that may be applicable to the Participant and the Award from time to time (the “Policies”). Participant has reviewed the Plan, this Grant Notice, the Agreement and the Policies in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, this Grant Notice, the Agreement and the Policies. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, this Grant Notice or the Agreement.
	BICYCLE THERAPEUTICS PLC
	PARTICIPANT

	By:
			
	:
	Name
		[Participant Name]

		Title:
		

​
​

9
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Exhibit A
RESTRICTED SHARE UNIT AGREEMENT
Capitalized terms not specifically defined in this Agreement have the meanings specified in the Grant Notice or, if not defined in the Grant Notice, in the Plan.
	1.	GENERAL

	1.1	Award of RSUs.

The Company has granted the RSUs to Participant effective as of the grant date set forth in the Grant Notice (the “Grant Date”). Each RSU represents the right to receive one Share or, at the option of the Company, an amount of cash, in either case, as set forth in this Agreement. Participant will have no right to the distribution of any Shares or payment of any cash until the time (if ever) the RSUs have vested.
1.2Incorporation of Terms of Plan. 
The RSUs are subject to the terms and conditions set forth in this Agreement and the Plan, which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan will control.
1.3Unsecured Promise. 
The RSUs will at all times prior to settlement represent an unsecured Company obligation payable only from the Company’s general assets.
	2.	VESTING; FORFEITURE AND SETTLEMENT

2.1Vesting; Forfeiture. 
The RSUs will vest according to the vesting schedule in the Grant Notice except that any fraction of an RSU that would otherwise be vested will be accumulated and will vest only when a whole RSU has accumulated. In the event of Participant’s Termination of Service for any reason, all unvested RSUs will immediately and automatically be cancelled and forfeited, except as otherwise determined by the Administrator or provided in a binding written agreement between Participant and the Company. 
	2.2	Settlement.

		(a)	RSUs will be paid in Shares or cash at the Company’s option as soon as administratively practicable after the vesting of the applicable RSU, but in no event more than sixty (60) days after the RSU’s vesting date (except as otherwise provided in Section 2.2(d) below). Notwithstanding the foregoing, to the extent permitted under Applicable Laws, the Company may delay any payment under this Agreement that the Company reasonably determines would violate Applicable Laws until the earliest date the Company reasonably determines the making of the payment will not cause such a violation.

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		(b)	If an RSU is paid in cash, the amount of cash paid with respect to the RSU will equal the Fair Market Value of a Share on the day immediately preceding the payment date. 

		(c)	If an RSU is paid in Shares, Participant may be required to pay the nominal value thereof in the same manner as provided for Withholding Taxes below. 

		(d)	If the date Shares would otherwise be distributed pursuant to Section 2.2(a) (the “Original Issuance Date”) falls on a date that is not a business day, delivery of Shares will instead occur on the next following business day. In addition, if:

		(i)	the Original Issuance Date does not occur (1) during an “open window period” applicable to Participant, as determined by the Company in accordance with the Company’s then-effective policy on trading in Company securities, or (2) on a date when Participant is otherwise permitted to sell Shares on an established stock exchange or stock market (including but not limited to under a previously established written trading plan that meets the requirements of Rule 10b5-1 under the Exchange Act and was entered into in compliance with the Company’s policies (a “10b5-1 Arrangement”)), and 

		(ii)	either (1) Withholding Taxes do not apply, or (2) the Company decides, prior to the Original Issuance Date, (A) not to satisfy Withholding Taxes by withholding Shares from the Shares otherwise due, on the Original Issuance Date, to Participant under the Award, and (B) not to permit Participant to enter into a “same day sale” commitment with a broker-dealer (including but not limited to a commitment under a 10b5-1 Arrangement) and (C) not to permit Participant to pay the Withholding Taxes in cash, 

then the Shares that would otherwise be issued to Participant on the Original Issuance Date will not be delivered on such Original Issuance Date and will instead be delivered on the first business day when Participant is not prohibited from selling Shares of the in the open public market, but, if the Company determines that Participant may be subject to taxation in the United States, in no event later than December 31 of the calendar year in which the Original Issuance Date occurs (that is, the last day of Participant’s taxable year in which the Original Issuance Date occurs), or, if and only if permitted in a manner that complies with United States Treasury Regulations Section 1.409A-1(b)(4), no later than the date that is the 15th day of the third calendar month of the applicable year following the year in which the Shares under the Award are no longer subject to a “substantial risk of forfeiture” within the meaning of Treasury Regulations Section 1.409A-1(d).
	3.	TAXATION AND TAX WITHHOLDING

3.1Representation. 
Participant represents to the Company that Participant has reviewed with Participant’s own tax advisors the tax and/or social security consequences of this Award and the transactions contemplated by the Grant Notice and this Agreement. Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.
	3.2	Tax Withholding.

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		(a)	On each vesting date, and on or before the time Participant receives a distribution of the shares underlying the RSUs, and at any other time as reasonably requested by the Company in accordance with applicable tax laws, Participant hereby authorizes any required withholding from the shares issuable to Participant and/or otherwise agree to make adequate provision in cash for any sums required to satisfy the federal, state, local and foreign tax and/or social security withholding obligations of the Company or any parent or Subsidiary that arise in connection with Participant’s RSUs (the “Withholding Taxes”).  Participant hereby authorizes the Company and/or the relevant parent or Subsidiary, or their respective agents, at their discretion, to satisfy the obligations with regard to all Withholding Taxes by one or a combination of the following: (i) withholding from any compensation otherwise payable to Participant by the Company or any parent or Subsidiary; (ii) causing Participant to tender a cash payment (which may be in the form of a check, electronic wire transfer or other method permitted by the Company); (iii) withholding shares from the shares issued or otherwise issuable to Participant in connection with Participant’s RSUs with a fair market value (measured as of the date shares are issued to Participant) equal to the amount of such Withholding Taxes; provided, however, that the number of such shares so withheld will not exceed the amount necessary to satisfy the required tax and/or social security withholding obligations using the minimum statutory withholding rates for federal, state, local and, if applicable, foreign tax purposes, including payroll taxes, that are applicable to supplemental taxable income; and, provided, further, that to the extent necessary to qualify for an exemption from application of Section 16(b) of the Exchange Act, if applicable, such share withholding procedure will be subject to the prior approval of the Company’s Remuneration Committee; or (iv) by requiring Participant to enter into a “same day sale” commitment with a broker-dealer in a manner satisfactory to the Company (including but not limited to a commitment under a 10b5-1 Arrangement).

		(b)	Participant acknowledges that Participant is ultimately liable and responsible for all taxes owed in connection with the RSUs, regardless of any action the Company or any Subsidiary takes with respect to any tax and/or social security withholding obligations that arise in connection with the RSUs. Neither the Company nor any Subsidiary makes any representation or undertaking regarding the treatment of any tax and/or social security withholding in connection with the awarding, vesting or payment of the RSUs or the subsequent sale of Shares. The Company and the Subsidiaries do not commit and are under no obligation to structure the RSUs to reduce or eliminate Participant’s tax and/or social security liability.

	4.	OTHER PROVISIONS

4.1Adjustments. 
Participant acknowledges that the RSUs and the Shares subject to the RSUs are subject to adjustment, modification and termination in certain events as provided in this Agreement and the Plan.
4.2Notices. 
Any notice to be given under the terms of this Agreement to the Company must be in writing and addressed to the Company in care of the Company’s Secretary at the Company’s principal 

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office or the Secretary’s then-current email address. Any notice to be given under the terms of this Agreement to Participant must be in writing and addressed to Participant at Participant’s last known mailing address or email address. By a notice given pursuant to this Section, either party may designate a different address for notices to be given to that party. Any notice will be deemed duly given: (i) if sent by email, when actually received; and (ii) if sent by certified mail (return receipt requested) and deposited with postage prepaid in the applicable national mail, when delivered by a nationally recognized express shipping company.
4.3Titles. 
Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
4.4Conformity to Securities Laws. 
Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent necessary with all Applicable Laws and, to the extent Applicable Laws permit, will be deemed amended as necessary to conform to Applicable Laws, and the RSUs may be unilaterally cancelled by the Company (with the effect that all Participant’s rights hereunder lapse with immediate effect) if the Administrator determines in its reasonable discretion that such conformity is not possible or practicable.
4.5Successors and Assigns. 
The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.
4.6Limitations Applicable to Section 16 Persons. 
Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement, and the RSUs will be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3) that are requirements for the application of such exemptive rule. To the extent Applicable Laws permit, this Agreement will be deemed amended as necessary to conform to such applicable exemptive rule.
4.7Entire Agreement. 
The Plan, the Grant Notice and this Agreement (including any exhibit hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof.
4.8Agreement Severable. 

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In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the provision will be severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement.
4.9Limitation on Participant’s Rights. 
Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and may not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. Participant will have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the RSUs, and rights no greater than the right to receive cash or the Shares as a general unsecured creditor with respect to the RSUs, as and when settled pursuant to the terms of this Agreement.
4.10Not a Contract of Employment. 
Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right to continue in the employ or service of the Company or any Subsidiary or interferes with or restricts in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between the Company or a Subsidiary and Participant.
4.11Counterparts. 
The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable Laws, each of which will be deemed an original and all of which together will constitute one instrument.
​

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APPENDIX 3
PERFORMANCE SHARE UNIT GRANT NOTICE15
BICYCLE THERAPEUTICS PLC
2020 EQUITY INCENTIVE PLAN [:NON-EMPLOYEE SUB-PLAN]16
Capitalized terms not specifically defined in this Performance Share Unit Grant Notice (the “Grant Notice”) have the meanings given to them in the 2020 Equity Incentive Plan [:Non-Employee Sub-Plan]17 (as amended from time to time, the “Plan”) of Bicycle Therapeutics Plc (the “Company”).
​
The Company has granted to the participant listed below (“Participant”) the Performance Share Units (the “PSUs”) described in this Grant Notice (the “Award”), subject to the terms and conditions of the Plan and the Performance Share Unit Agreement attached as Exhibit A (the “Agreement”), both of which are incorporated into this Grant Notice by reference.
	Participant:
		
	Grant Date:
		
	Target Number of PSUs:
		
	Vesting Commencement Date:
		
	Vesting Schedule18:
		Subject to the Administrator’s determination as to whether, and the extent to which, the vesting conditions specified on Attachment I to this Grant Notice (the “PSU Vesting Criteria”) have been met:
[1/12th of the total number of Shares under Award shall vest at the end of each quarter following the Grant Date, subject to Participant remaining continuously a Service Provider as of each such date] 19.
[1/4 of the total number of Shares under Award shall vest on the first anniversary of the Vesting Commencement Date, and 1/12th of the remaining number of Shares under Award shall vest quarterly thereafter, subject to Participant remaining continuously a Service Provider as of each such date]20.  

15 Form of PSU grant notice and agreement provided in case the company decides to grant PSUs in the future.
16 For Consultants and Directors who are not Employees
17 For Consultants and Directors who are not Employees
18 Selection of applicable vesting schedule, or determination that a different vesting schedule shall apply, subject to discretion of Administrator.
19 For PSUs granted to members of the Company’s board of directors (who are not Employees).
20 For PSUs granted to Employees.

15

​

The Target Number of PSUs specified herein represents the number of shares that would become issuable pursuant to the Award if the Company were to achieve exactly 100% of the performance metric described in Attachment I to this Grant Notice. The number of shares subject to the Award that may become issuable to you, if any, are subject to increase or decrease based on the Company's actual performance against such performance metric and will be determined in accordance with conditions specified in the PSU Vesting Criteria. 
By Participant’s signature below, Participant agrees to be bound by the terms of this Grant Notice, the Plan, the Agreement and any Group Company policy that may be applicable to the Participant and the Award from time to time (the “Policies”). Participant has reviewed the Plan, this Grant Notice, the Agreement and the Policies in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, this Grant Notice, the Agreement and the Policies. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, this Grant Notice or the Agreement.
​
	BICYCLE THERAPEUTICS PLC
	PARTICIPANT

	By:
			
	:
	Name
		[Participant Name]

		Title:
		

​
​
​
​
​
​
Attachment I
PSU Vesting Criteria 
Performance Metric: 
​
[To be confirmed]
​
Performance Target: 
​

	​
 ​
​

	​

	​

	​
​
​
	-16-
	​

​

​

[To be confirmed]
​
Calculation of final number of shares that may vest:
​
[To be confirmed]
​
​
​

	​
 ​
​

	​

	​

	​
​
​
	-17-
	​

​

​

Exhibit A
PERFORMANCE SHARE UNIT AGREEMENT
Capitalized terms not specifically defined in this Agreement have the meanings specified in the Grant Notice or, if not defined in the Grant Notice, in the Plan.
	1.	GENERAL

	1.1	Award of PSUs.

The Company has granted the PSUs to Participant effective as of the grant date set forth in the Grant Notice (the “Grant Date”). Each PSU represents the right to receive one Share or, at the option of the Company, an amount of cash, in either case, as set forth in this Agreement. Participant will have no right to the distribution of any Shares or payment of any cash until the time (if ever) the PSUs have vested.
1.2Incorporation of Terms of Plan. 
The PSUs are subject to the terms and conditions set forth in this Agreement and the Plan, which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan will control.
1.3Unsecured Promise. 
The PSUs will at all times prior to settlement represent an unsecured Company obligation payable only from the Company’s general assets.
	2.	VESTING; FORFEITURE AND SETTLEMENT

2.1Vesting; Forfeiture. 
		(a)	The PSUs will vest according to the vesting schedule in the Grant Notice except that any fraction of a PSU that would otherwise be vested will be accumulated and will vest only when a whole PSU has accumulated. In the event of Participant’s Termination of Service for any reason, all unvested PSUs will immediately and automatically be cancelled and forfeited, except as otherwise determined by the Administrator or provided in a binding written agreement between Participant and the Company.   

	2.2	Settlement.

		(c)	PSUs will be paid in Shares or cash at the Company’s option as soon as administratively practicable after the vesting of the applicable PSU, but in no event more than sixty (60) days after the PSU’s vesting date (except as otherwise provided in Section 2.2(d) below). Notwithstanding the foregoing, to the extent permitted under Applicable Laws, the Company may delay any payment under this Agreement that the Company reasonably determines would violate Applicable Laws until the earliest date the Company reasonably determines the making of the payment will not cause such a violation.

	​
 ​
​

	​

	​

	​
​
​
	-18-
	​

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​

		(d)	If a PSU is paid in cash, the amount of cash paid with respect to the PSU will equal the Fair Market Value of a Share on the day immediately preceding the payment date. 

		(e)	If a PSU is paid in Shares, Participant may be required to pay the nominal value thereof in the same manner as provided for Withholding Taxes below.

		(f)	If the date Shares would otherwise be distributed pursuant to Section 2.2(a) (the “Original Issuance Date”) falls on a date that is not a business day, delivery of Shares will instead occur on the next following business day. In addition, if:

		(i)	the Original Issuance Date does not occur (1) during an “open window period” applicable to Participant, as determined by the Company in accordance with the Company’s then-effective policy on trading in Company securities, or (2) on a date when Participant is otherwise permitted to sell Shares on an established stock exchange or stock market (including but not limited to under a previously established written trading plan that meets the requirements of Rule 10b5-1 under the Exchange Act and was entered into in compliance with the Company’s policies (a “10b5-1 Arrangement”)), and 

		(ii)	either (1) Withholding Taxes do not apply, or (2) the Company decides, prior to the Original Issuance Date, (A) not to satisfy Withholding Taxes by withholding Shares from the Shares otherwise due, on the Original Issuance Date, to Participant under the Award, and (B) not to permit Participant to enter into a “same day sale” commitment with a broker-dealer (including but not limited to a commitment under a 10b5-1 Arrangement) and (C) not to permit Participant to pay the Withholding Taxes in cash, 

then the Shares that would otherwise be issued to Participant on the Original Issuance Date will not be delivered on such Original Issuance Date and will instead be delivered on the first business day when Participant is not prohibited from selling Shares of the in the open public market, but, if the Company determines that Participant may be subject to taxation in the United States, in no event later than December 31 of the calendar year in which the Original Issuance Date occurs (that is, the last day of Participant’s taxable year in which the Original Issuance Date occurs), or, if and only if permitted in a manner that complies with United States Treasury Regulations Section 1.409A-1(b)(4), no later than the date that is the 15th day of the third calendar month of the applicable year following the year in which the Shares under the Award are no longer subject to a “substantial risk of forfeiture” within the meaning of Treasury Regulations Section 1.409A-1(d).
	3.	TAXATION AND TAX WITHHOLDING

3.1Representation. 
Participant represents to the Company that Participant has reviewed with Participant’s own tax advisors the tax and/or social security consequences of this Award and the transactions contemplated by the Grant Notice and this Agreement. Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.

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	3.2	Tax Withholding.

		(g)	On each vesting date, and on or before the time Participant receives a distribution of the shares underlying the PSUs, and at any other time as reasonably requested by the Company in accordance with applicable tax laws, Participant hereby authorizes any required withholding from the shares issuable to Participant and/or otherwise agree to make adequate provision in cash for any sums required to satisfy the federal, state, local and foreign tax and/or social security withholding obligations of the Company or any parent or Subsidiary that arise in connection with Participant’s PSUs (the “Withholding Taxes”).  Participant hereby authorizes the Company and/or the relevant parent or Subsidiary, or their respective agents, at their discretion, to satisfy the obligations with regard to all Withholding Taxes by one or a combination of the following: (i) withholding from any compensation otherwise payable to Participant by the Company or any parent or Subsidiary; (ii) causing Participant to tender a cash payment (which may be in the form of a check, electronic wire transfer or other method permitted by the Company); (iii) withholding shares from the shares issued or otherwise issuable to Participant in connection with Participant’s PSUs with a fair market value (measured as of the date shares are issued to Participant) equal to the amount of such Withholding Taxes; provided, however, that the number of such shares so withheld will not exceed the amount necessary to satisfy the required tax and/or social security withholding obligations using the minimum statutory withholding rates for federal, state, local and, if applicable, foreign tax purposes, including payroll taxes, that are applicable to supplemental taxable income; and, provided, further, that to the extent necessary to qualify for an exemption from application of Section 16(b) of the Exchange Act, if applicable, such share withholding procedure will be subject to the prior approval of the Company’s Remuneration Committee; or (iv) by requiring Participant to enter into a “same day sale” commitment with a broker-dealer in a manner satisfactory to the Company (including but not limited to a commitment under a 10b5-1 Arrangement).

		(h)	Participant acknowledges that Participant is ultimately liable and responsible for all taxes owed in connection with the PSUs, regardless of any action the Company or any Subsidiary takes with respect to any tax and/or social security withholding obligations that arise in connection with the PSUs. Neither the Company nor any Subsidiary makes any representation or undertaking regarding the treatment of any tax and/or social security withholding in connection with the awarding, vesting or payment of the PSUs or the subsequent sale of Shares. The Company and the Subsidiaries do not commit and are under no obligation to structure the PSUs to reduce or eliminate Participant’s tax and/or social security liability.

	4.	OTHER PROVISIONS

4.1Adjustments. 
Participant acknowledges that the PSUs and the Shares subject to the PSUs are subject to adjustment, modification and termination in certain events as provided in this Agreement and the Plan.
4.2Notices. 

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Any notice to be given under the terms of this Agreement to the Company must be in writing and addressed to the Company in care of the Company’s Secretary at the Company’s principal office or the Secretary’s then-current email address. Any notice to be given under the terms of this Agreement to Participant must be in writing and addressed to Participant at Participant’s last known mailing address or email address in the Company’s personnel files. By a notice given pursuant to this Section, either party may designate a different address for notices to be given to that party. Any notice will be deemed duly given: (i) if sent by email, when actually received; and (ii) if sent by certified mail (return receipt requested) and deposited with postage prepaid in the applicable national mail, when delivered by a nationally recognized express shipping company.
4.3Titles. 
Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
4.4Conformity to Applicable Laws. 
Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent necessary with all Applicable Laws and, to the extent Applicable Laws permit, will be deemed amended as necessary to conform to Applicable Laws, and the PSUs may be unilaterally cancelled by the Company (with the effect that all Participant’s rights hereunder lapse with immediate effect) if the Administrator determines in its reasonable discretion that such conformity is not possible or practicable.
4.5Successors and Assigns. 
The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.
4.6Limitations Applicable to Section 16 Persons. 
Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement and the PSUs will be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3) that are requirements for the application of such exemptive rule. To the extent Applicable Laws permit, this Agreement will be deemed amended as necessary to conform to such applicable exemptive rule.
4.7Entire Agreement. 
The Plan, the Grant Notice and this Agreement (including any exhibit hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof.

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4.8Agreement Severable. 
In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the provision will be severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement.
4.9Limitation on Participant’s Rights. 
Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and may not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. Participant will have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the PSUs, and rights no greater than the right to receive cash or the Shares as a general unsecured creditor with respect to the PSUs, as and when settled pursuant to the terms of this Agreement.
4.10Not a Contract of Employment. 
Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right to continue in the employ or service of the Company or any Subsidiary or interferes with or restricts in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between the Company or a Subsidiary and Participant.
4.11Counterparts. 
The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable Laws, each of which will be deemed an original and all of which together will constitute one instrument.

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​Document

EXHIBIT 10.1

Certain identified information has been excluded from the exhibit because it is both (i) not material and (ii) would likely cause competitive harm to the Company, if publicly disclosed.  Double asterisks denote omissions.

 LICENSE AGREEMENT

DATED AS OF FEBRUARY 8TH, 2015

BETWEEN

SHIRATORI PHARMACEUTICAL CO., LTD.

AND

CENSA PHARMACEUTICALS INC.

ARTICLE 1   DEFINITIONS
ARTICLE 2   LICENSES
2.1 License Grant to Censa
2.2 Sublicense Rights
2.3 Disclosure Of Licensed Know-How
2.4 Additional Rights
ARTICLE 3   DEVELOPMENT AND COMMERCIALIZATION
3.1 Development
3.2 Regulatory Matters
3.3 Commercialization of Product
3.4 Censa Access to Development Information and Shiratori Personnel and Consultants
3.5 Joint Manufacturing Committee and Joint Concerns
3.6 Development Phase Drug Substance Supply
3.7 Development Assistance Services
3.8 Commercial Phase Drug Substance Supply
3.9 Failure to Supply and Second Source of Supply
ARTICLE 4 INITIAL PAYMENT AND MILESTONE PAYMENTS
4.1 Milestone Payments
4.2 Backup or Alternative Revenue
ARTICLE 5 ROYALTIES
5.1 Royalty Rates
5.2 Term of Royalties
5.3 No Obligation
5.4 Offset
5.5 Reports and Payments
5.6 Taxes and Withholding
5.7 Currency Exchange
5.8 Maintenance of Records; Audits
ARTICLE 6 REPRESENTATIONS, WARRANTIES, AND COVENANTS
6.1 Mutual Representation and Warranties
6.2 Additional Shiratori Respresentations, Warranties, and Covenants
ARTICLE 7 CONFIDENTIALITY; PUBLIC ANNOUNCEMENTS
7.1 Confidentiality
7.2 Authorized Disclosure
7.3 SEC Filings
7.4 Public Announcements
7.5 Survival
ARTICLE 8 INDEMNIFICATION
8.1 Indemnification by Censa
8.2 Indemnification by Shiratori
8.3 Insurance Proceeds
8.4 Survival
8.5 Insurance

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ARTICLE 9 TERM AND TERMINATION
9.1 Term
9.2 Voluntary Termination by Censa
9.3 Termination for Material Breach
9.4 Consequences of Termination or Material Breach
9.5 Bankruptcy
9.6 Liabilities
ARTICLE 10 INTELLECTUAL PROPERTY
10.1 Ownership of Intellectual Property
10.2 Patent Prosecution
10.3 Infringement Actions Against Thrid Parties
10.4 Infringement of Third Party Intellectual Property Rights
10.5 Offset
10.6 Compulsory Licenses
10.7 Marks for the Product
10.8 No Trademark Rights
10.9 Invention Dates
10.10 No Other Rights to Censa Intellectual Property
ARTICLE 11 DISPUTES, GOVERNING LAW
11.1 Disputes
11.2 Governing Law
ARTICLE 12 MISCELLANEOUS
12.1 Assignment
12.2 Further Actions
12.3 Force Majeure
12.4 Notices
12.5 Amendment
12.6 Waiver
12.7 Counterparts
12.8 Descriptive Headings
12.9 Severability
12.10 Entire Agreement of the Parties
12.11 Independent Contractors
12.12 Accrued Rights; Surviving Obligations
12.13 Compliance With Export Regulations
12.14 No Third Party Beneficiaries
12.15 No Strict Construction
12.16 Language
Schedules / APPENDICES
Schedule 6.2(b) – Licensed Patents / Appendix A – Development Plan

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LICENSE AGREEMENT

THIS LICENSE AGREEMENT (the “Agreement”), dated as of February 8th, 2016 (the “Effective Date”), is made by and between Shiratori Pharmaceutical Co., Ltd., a Kabushiki Kaisha (KK) corporation organized and existing under the laws of Japan and having its principal office at 2-3-7 Akanehama, Narashino-shi, Chiba-ken, 275-0024 JAPAN (“Shiratori”) and Censa Pharmaceuticals Inc., a corporation organized and existing under the laws of the State of Delaware and having its principal office at 222 Third Street, Suite 2240, Cambridge, Massachusetts 02142 USA (“Censa”).  Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Article 1.

WITNESSETH:

WHEREAS, Shiratori has developed the Product and is the owner of, or has the right to license to Censa, certain Licensed Technology relating thereto;

WHEREAS, manufacture of the Product involves the practice of patented inventions and relies on know-how developed at the expense of Shiratori;

WHEREAS, Censa is a specialty pharmaceutical company focusing on development and commercialization of innovative pharmaceutical drug products for the treatment of Central Nervous System (CNS) diseases;

WHEREAS, Shiratori wishes to serve as supplier of the Product for clinical and commercial purposes;

WHEREAS, Censa wishes to gain access to the Product for use in connection with and furtherance of its development and commercialization;

WHEREAS, Shiratori qua licensor wishes to grant a license to Censa under the Licensed Technology to research, have researched, develop, have developed, make, have made, use, import, market, have marketed, offer for sale, sell and have sold the Product in the Territory; and 

WHEREAS, Censa qua licensee wishes to obtain such a license from Shiratori, subject to the terms and conditions set forth in this Agreement;
 
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

ARTICLE 1.
DEFINITIONS
When used in this Agreement, each of the following capitalized terms shall have the meanings set forth in this Article 1.

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1.1  “Affiliate” means any corporation, company, partnership or other entity which controls, is controlled by, or is under common control with a specified entity. For purposes of this definition, “control” shall be presumed to exist where one entity owns directly or indirectly more than fifty percent (50%) (or such lesser percentage as may be the maximum percentage allowed to be owned by a foreign corporation under the applicable laws or regulations of a particular jurisdiction outside of the United States) of the equity having the power to vote in the election of directors or to direct the management and policies of another entity.
1.2 “Business Day” means any day except a Saturday, Sunday, or any other day on which a commercial bank in Tokyo, Japan or Boston, Massachusetts is authorized to close.  Any reference in this Agreement to “day” whether or not capitalized shall refer to a calendar day, not a Business Day.
1.3 “Commercially Reasonable Efforts” means efforts and resources commonly used by a Party for a product owned by it or to which it has rights at a similar stage in its development or product life and of similar market potential taking into account efficacy, safety, the anticipated Regulatory Authority approved labeling, the competitiveness of alternative products in the marketplace or under development, the patent and other proprietary position of the product, the likelihood of Regulatory Approval, the profitability of the product and other relevant factors.
1.4 “Confidential Information” means all proprietary materials, know-how or other information (whether or not patentable) regarding a Party’s technology, products, business information or objectives, which is designated as confidential in writing by the Disclosing Party, whether by letter or by the use of an appropriate stamp or legend, prior to or at the time any such material, know-how or other information is disclosed by the Disclosing Party to the other Party.  Notwithstanding anything contained in the foregoing to the contrary, materials, know-how or other information which is orally, electronically or visually disclosed by a Party, or is disclosed in writing without an appropriate letter, stamp or legend, shall constitute Confidential Information of a Party (i) if the Disclosing Party, within [**] days after such disclosure, delivers to the other Party a written document or documents describing the materials, know-how or other information and referencing the place and date of such oral, visual, electronic or written disclosure and the names of the persons to whom such disclosure was made, or (ii) such information is of the type that is customarily considered to be confidential information by persons engaged in activities that are substantially similar to the activities being engaged in by the Parties.
1.5 “Controls” or “Controlled” means with respect to the Licensed Technology, ownership or the possession of a respective license prior to or during the term of this Agreement and the ability to grant licenses or sublicenses without violating applicable laws or the terms of any agreement or other arrangement with, or the rights of, any Third Party.
1.6 “Effective Date” means the date set forth in the preamble to this Agreement.
1.7 “European Union” means, from time to time, those countries that are members of the European Union.
1.8 “Evaluation Period” means the period of [**] months commencing with the Effective Date.
1.9 “FDA” means the United States Food and Drug Administration, or any successor agency thereof.

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1.10 “First Commercial Sale” means, with respect to any Product approved for commercial sale, the first arm's length sale by Censa or its Affiliates or sublicensees of such Product to a Third Party.
1.11 “Force Majeure” means any occurrence beyond the reasonable control of a Party that prevents or substantially interferes with the performance by the Party of any of its obligations hereunder, if such occurs by reason of any act of God, flood, fire, explosion, earthquake, strike, lockout, labor dispute, casualty or accident; or war, revolution, civil commotion, acts of public enemies, blockage or embargo; or any injunction, law, order, proclamation, regulation, ordinance, demand or requirement of any government or of any subdivision, authority or representative of any such government; or breakdown of plant, inability to procure or use materials, labor, equipment, transportation, or energy sufficient to meet manufacturing needs without the necessity of allocation; or any other cause whatsoever, whether similar or dissimilar to those above enumerated, beyond the reasonable control of such Party, if and only if the Party affected shall have used reasonable efforts to avoid such occurrence and to remedy it promptly if it shall have occurred.
1.12 “IND” means an Investigational New Drug Application, as defined in the U.S. Federal Food, Drug, and Cosmetic Act, as amended, and the regulations promulgated thereunder, and its foreign equivalent for initiating clinical trials in the United States or any corresponding foreign country.
1.13 “Licensed Know-How” means the following to the extent owned or Controlled by Shiratori and/or its Affiliates (a) as of the Effective Date or (b) arising at any time during the term of this Agreement solely by Shiratori or jointly by Shiratori and Censa: technical, scientific and other know-how, data, materials, information, trade secrets, ideas, formulae, inventions, discoveries, processes, protocols, techniques, manufacturing processes, equipment for use in manufacturing and testing, sources of supply of components and raw materials and results of experimentation and testing as are reasonably necessary or useful for the research, development, registration, packaging, manufacture, use, distribution, or sale of the Product in the Territory, and shall include, without limitation, all data related to pre-clinical data, chemistry manufacturing control (CMC) data, regulatory information, reports, studies, clinical studies, processes and pre-clinical, chemistry manufacturing control (CMC), and other data.  Licensed Know-How excludes Licensed Patents.
1.14 “Licensed Patents” means the following patent applications and patents owned or Controlled by Shiratori (a) as of the Effective Date or (b) arising at any time during the term of this Agreement solely by Shiratori or jointly by Shiratori and Censa, and all patents issuing from such patent applications and patents and otherwise arising from any improvement or enhancement of the manufacturing processes for or methods related to Sepiapterin, during the term of this Agreement: (i) [**] (ii)  [**] entitled [**]; and (iii) certain other patents owned by Shiratori, as are reasonably necessary or useful for the manufacture, use, and sale of the Product in the Territory, including the patent applications and/or patents listed on Schedule 6.2 (b) attached hereto, and all foreign counterparts of any or to any of the aforesaid patents and/or patent applications, and including, without limitation, as it may relate to any such patent applications and patents all provisional applications, substitutions, continuations, continuations-in-part, divisions, and renewals, all letters patent granted thereon, and 

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all patents-of-addition, reissues, reexaminations and extensions or restorations by existing or future extension or restoration mechanisms, certificates of invention or applications for certificates of invention, all supplementary protection certificates, substitutions, confirmations, registrations, revalidations, additions, continuations, continuations in-part, and divisions of any or to any of the aforesaid patent applications and patents.  Licensed Patents excludes Licensed Know-How.
1.15 “Licensed Technology” means the Licensed Know-How and the Licensed Patents.
1.16 “NDA” means a New Drug Application pursuant to 21 U.S.C. Section 355(b)(1), as amended, and the regulations promulgated thereunder, submitted to the FDA or any successor application or procedure and any foreign counterpart of a U.S. New Drug Application for approval to market, including, where applicable, applications for pricing and reimbursement approval.
1.17 “Net Sales” means the gross amount invoiced by Censa and/or its Affiliates and/or sublicensees on account of sales of the Product to Third Parties (including without limitation Third Party distributors and wholesalers), less the total of:
(a) Trade, cash, quantity or other discounts not already reflected in the invoice price;
(b) Excise, sales and other consumption taxes (including VAT on the sale of the Product) and custom duties to the extent included in the invoice price;
(c) Freight, insurance and other transportation charges to the extent included in the invoice price;
(d) Amounts repaid or credited by reason of rejections, defects, recalls or returns or because of chargebacks, retroactive price reductions, refunds or billing errors; and
(e) Compulsory payments and rebates directly related to sales of the Product, accrued, paid or deducted pursuant to agreements (including, but not limited to, managed care agreements) or governmental regulations. 
Use of the Product for promotional or sampling purposes and for use in clinical trials contemplated under this Agreement shall not be considered in determining Net Sales.  In the case of any sale of the Product between or among Censa and its Affiliates or sublicensees for resale, Net Sales shall be calculated as above only on the value charged or invoiced on the first arm’s length sale thereafter to a Third Party.
1.18 “Party” means Censa or Shiratori each individually as the case may be, and “Parties” means Censa and Shiratori together collectively.
1.19 “Person” means any individual, firm, corporation, partnership, limited liability company, trust, unincorporated organization or other entity or a government agency or political thereto, and shall include any successor (by merger or otherwise) of such Person.
1.20 “Product” means any final pharmaceutical product in finished form containing Sepiapterin as active pharmaceutical ingredient (API) covered by Licensed Patents or using Licensed Know-How. 
1.21 “Drug Substance” means Sepiapterin for use in the Product.

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1.22 “Regulatory Approval” means the technical, medical and scientific licenses, registrations, authorizations and approvals (including, without limitation, IND's, approvals of NDAs, supplements and amendments, pre- and post- approvals, pricing and Third Party reimbursement approvals, and labeling approvals, together with all supplements thereto) of any national, supra-national, regional, state or local regulatory agency, department, bureau, commission, council or other governmental entity, necessary for the development, manufacture, distribution, marketing, promotion, offer for sale, use, import, export or sale of Product(s) in a regulatory jurisdiction.
1.23 “Regulatory Authority” means any national (e.g., the FDA), supra-national (e.g., the European Commission, the Council of the European Union, or the European Agency for the Evaluation of Medicinal Products), regional, state or local regulatory agency, department, bureau, commission, council or other governmental entity in each country of the Territory involved in the granting of Regulatory Approval.
1.24 “Regulatory Filings” means, collectively, INDs, Biologics License Applications, Drug Master Files, NDAs and any other comparable filings as may be required by Regulatory Authorities to obtain Regulatory Approvals.
1.25 “Territory” means all the countries and territories of the world outside of Japan.
1.26 “Third Party(ies)” means any Person other than Shiratori, Censa, and their respective Affiliates.
1.27 “Valid Claim” means a claim of an issued and unexpired patent or supplementary protection certificate within the Licensed Patents, which claim or supplementary protection certificate has not been held invalid or unenforceable by a court or other government agency of competent jurisdiction from which no appeal can be taken as of right or has been taken and has not been admitted to be invalid, canceled, or unenforceable through re-examination or disclaimer, opposition procedure, nullity suit.
1.28 Additional Definitions.  Each of the following terms is defined in the section of this Agreement indicated below:
Term Section

Breach Notice 9.3
Breaching Party 9.3
Censa Introductory Paragraph
Censa Indemnified Parties 8.2
Censa Inventions 10.1(a)
Development Plan 3.1
Disclosing Party 7.1
Initial Term 3.8(a)
Insolvent Party 9.5
Inventions 10.1
Joint Inventions 10.1(c)
Joint Manufacturing Committee or JMC 3.5
Manufacturing Cost 3.6
Marks 10.7

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[**] 2.4
Non-Breaching Party 9.3
Paragraph IV Notice 10.3(e)
Receiving Party 7.1
Services Agreement 3.7
Shiratori Introductory Paragraph
Shiratori Indemnified Parties 8.1
Shiratori Inventions 10.1(b)
Supply Agreement 3.8
Withholding Taxes 5.6

ARTICLE 2.
LICENSES
2.1 License Grants to Censa.  Shiratori hereby grants to Censa the sole and exclusive, even as to Shiratori, worldwide right and license, with the right to sublicense, under the Licensed Technology to research, have researched, develop, have developed, use, import, export, market, have marketed, offer for sale, sell and have sold, and otherwise commercialize the Product in the Territory.
2.2 Sublicense Rights.  Censa shall have the right in its sole discretion to grant sublicenses and/or to transfer this Agreement without consent by Shiratori.  In the event of sublicense by Censa, Censa promptly shall notify Shiratori in writing of the granting of such sublicense.  Each sublicense granted by Censa shall not conflict with the terms of this Agreement and Censa shall be responsible for the performance of each sublicensee of all obligations incumbent on Censa under this Agreement.  In addition, Censa may, without Shiratori’s consent, appoint distributors and sub-distributors throughout the Territory to assist in the commercialization of the Product if those distributors and sub-distributors do not require a sublicense under the License to commercialize the Product; provided, however, that no such appointment may adversely impact payments due from Censa to Shiratori.
2.3 Disclosure of Licensed Know-How.  To the extent Shiratori has not already done so, promptly after the Effective Date, Shiratori shall make available to Censa the Licensed Know-How not previously furnished to Censa.  During the term of this Agreement, Shiratori shall disclose Licensed Know-How promptly to Censa as soon as such Licensed Know-How becomes available to Shiratori.
2.4 Additional Rights.  Upon Censa’s written request, Shiratori shall make Commercially Reasonable Efforts to assist Censa in obtaining the exclusive license to certain intellectual property owned or Controlled by [**] related to the clinical use of Sepiapterin, including but not limited to [**] (the “[**]”).  In the event that Censa obtains the [**], Censa shall sublicense licensed rights to Shiratori in Japan.  The Parties equitably shall share the cost of obtaining the [**] on a pro-rata basis to be mutually determined.
ARTICLE 3.
DEVELOPMENT AND COMMERCIALIZATION
3.1 Development.  

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(a) During the Evaluation Period, (i) Censa shall conduct initial pre-clinical studies in order to determine the feasibility of the Product as provided for in the “Development Plan” set forth as Appendix A to and incorporated by reference in this Agreement and (ii) Shiratori shall supply to Censa the amount of Drug Substance reasonably necessary, and in any event at least [**] grams of Drug Substance, to conduct such studies.
(b) From and after the Effective Date, Censa shall have full legal and financial responsibility for all costs that are incurred and all activities that are undertaken after the signing of this Agreement, which are related to the development, safety, Regulatory Filings, required periodic reporting to the Regulatory Authorities, Regulatory Approvals, and other activities required by Censa or its sublicensee(s) (or their respective agents or distributors) to obtain appropriate Regulatory Approvals for, and to commercialize, the Product in the Territory.  Other than as expressly provided for in this Agreement, Censa shall not assume, nor shall Censa be liable for, any costs or activities (whether scientific, financial or otherwise) relating to the Product that were incurred or undertaken prior to the signing of this Agreement (including without limitation any costs, expenses, damages, losses, fines, penalties or the like that may be awarded or assessed after the signing of this Agreement, but which arise out of the events and activities that occurred prior to the signing of this Agreement)
(c) Provided that the Affiliates, sublicensees and other Third Parties agree to substantially the same terms of confidentiality in Article 7, Censa may appoint such Affiliates, sublicensee(s) and other Third Parties to perform any and all development activities necessary to obtain Regulatory Approvals for the Product in the Territory.
(d) Censa shall, in a manner consistent with the effort Censa devotes to its own products having the same or similar potential value as the Product, exercise its Commercially Reasonable Efforts and diligence in developing and commercializing the Product, and in undertaking those investigations and actions required to obtain appropriate Regulatory Approvals to market the Product in the Territory.  All such activity shall be undertaken at Censa’s expense.  Shiratori shall use reasonable efforts to assist or to provide consultation at Censa’s expense in support of the pre-clinical and clinical development of the Product.
3.2 Regulatory Matters.  Censa shall have complete control over, and authority and responsibility for, the regulatory strategies relating to the development and commercialization of the Product in the Territory and shall be responsible for all Regulatory Filings and Regulatory Approvals relating to the Product immediately after the Effective Date.  Shiratori shall transfer to Censa or take other action necessary to make available to Censa any Regulatory Filings and Regulatory Approvals (and updates thereof) initially filed by Shiratori.  Censa shall oversee, monitor and coordinate all regulatory actions, communications and filings with and submissions, including filings and submissions of supplements and amendments thereto, to any Regulatory Authority with respect to the Product.  Shiratori shall provide to Censa on a timely basis all necessary information to enable compliance with all regulatory obligations on a global basis, including without limitation filing updates, records related to product manufacturing and processes, pharmacovigilance filings, and investigator notifications.  Censa shall be responsible for interfacing, corresponding and meeting with all Regulatory Authorities with respect to the Product.  Shiratori shall cooperate with Censa to provide 

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all reasonable assistance and take all actions reasonably requested by Censa that are necessary or desirable (a) to enable Censa to comply with any law applicable to the Product, including, but not limited to, report adverse drug experience reports (and serious adverse drug experience reports) to Regulatory Authorities and (b) to coordinate with Censa regarding regulatory, development, manufacturing, and related status of the Product, Drug Substance, and its precursors in Japan.
3.3 Commercialization of Product.  Censa shall have the sole discretion and exclusive right to commercialize, sell, market, promote and distribute the Product in the Territory.
3.4 Censa Access to Development Information and Shiratori Personnel and Consultants.    Shiratori shall make available to Censa all relevant and readily available material and information related to Drug Substance, including but not limited to process development and manufacturing quality assurance (QA) / quality control (QC) documentation, GMP and government inspection reports and certifications, preclinical data, clinical data, and regulatory filings and correspondence, within the reasonable control of Shiratori, as soon as reasonably practicable and in any event within [**] days of execution and delivery of a this Agreement.
3.5 Joint Manufacturing Committee and Joint Concerns.  The Parties shall establish a Joint Manufacturing Committee (the “JMC”) comprised of an equal number of members from each Party.  The JMC shall manage the overall relationship between the Parties, including chemistry manufacturing and control information in support of Regulatory Filings for Regulatory Approval of the Product in the Territory and forecast for supply of Drug Substance.  In furtherance of the overall relationship between the Parties in general and Drug Substance supply in particular, whether for development-phase purposes under Section 3.6 below or commercialization-phase purposes under Section 3.8 below, Shiratori promptly and continuously shall inform the JMC of any and all discoveries, improvements, inventions, intellectual property or other proprietary rights, title, and interest that arise (including without limitation invention or similar disclosures) in Japan relevant to the Product, Licensed Patents, or Licensed Know-How.  Improvements by Censa to the manufacturing method specifically described in the Licensed Patent set forth in Section 1.14(i) above that are dominated by the claims of such Licensed Patent shall be communicated by Censa to Shiratori and may be used solely by Shiratori without compensation to Censa.  Pre-clinical and clinical data developed by either of the Parties in connection with development and use of the Product shall be communicated between the Parties and may be used as the case may be (i) by Censa in the Territory and (ii) by Shiratori in Japan, respectively, without compensation by either Party to the other Party.  The JMC shall establish a process for joint evaluation relative to the relationship between the Parties and performance of this Agreement, including without limitation as it may relate to patent filing, prosecution, maintenance, and enforcement pursuant to this Agreement.
3.6 Development Phase Drug Substance Supply.
(a) Shiratori shall be solely responsible for supplying Drug Substance for manufacturing pre-clinical and clinical supplies of Product.
(b) Shiratori shall supply Drug Substance solely to Censa and shall not, either directly or indirectly, market or sell Drug Substance anywhere in the Territory, excluding only the supply of Drug Substance to Censa under this Agreement.  Censa shall procure Drug Substance solely from Shiratori during the development phase.  For clarity and the avoidance of doubt, (i) Shiratori shall not supply Drug Substance to any Third Party 

11

and (ii) Censa shall not procure Drug Substance from any Third Party during the development phase.
(c) Shiratori may use qualified Third-Party subcontractors to manufacture Drug Substance with the prior written approval of Censa.
(d) Shiratori shall supply Drug Substance to Censa in sufficient quantities for Censa to conduct its Development Plan (as set forth in Appendix A) at a price determined by the lowest of (i) the Manufacturing Cost plus [**] percent ([**]%) or (ii) the following respective amounts: Shiratori’s “Manufacturing Cost” for this purpose, whether manufactured directly by Shiratori or through approved subcontractors, shall mean the direct materials cost, direct labor cost, and reasonably allocated manufacturing overhead consistent with generally accepted accounting principles (GAAP) in the contract manufacturing of pharmaceutical products. 
									
	Product	Amount of Drug Substance (as denominated in grams or kilograms)
	Price to Censa
	Non-GLP
GLP 
	[**]g
[**]g 
	¥    [**]
¥  [**]

									
	cGMP
	[**]g	¥  [**]
	cGMP
	[**]Kg	¥  [**]
	cGMP	[**]Kg	¥ [**]

For clarity and the avoidance of doubt, in no event shall the actual price paid by Censa exceed the applicable amount set forth in the “Price to Censa” column of the table immediately above.
(e) The dates for the actual supply of Drug Substance during the Evaluation Period and the development phase shall be agreed upon between the Parties but in any event Shiratori shall not be obligated to supply Drug Substance earlier than the following dates: (i) For the [**]g of Drug Substance for non-GLP Product, [**] months from the Effective Date, (ii) for the [**]g of Drug Substance for GLP and/or cGMP Product as the case may be, [**] months from the Effective Date, or (iii) For [**]Kg of Drug Substance for cGMP Product, [**] months from the Effective Date.
(f) From and after the Effective Date, Shiratori shall work with Censa in good faith to improve Drug Substance manufacturing processes, manufacturing efficiencies and yield, and to reduce the overall Manufacturing Cost of Drug Substance.
(g) As soon as reasonably practicable, and in any event within [**] months from the Effective Date, Shiratori and Censa mutually shall execute and deliver a quality agreement providing for the quality of Drug Substance being supplied by Shiratori to Censa with related provisions customary for an agreement of that nature.
3.7 Development Assistance Services Agreement.  In the event Censa desires to have Shiratori provide advisory assistance or other services not otherwise expressly provided for in thisAgreement, and Shiratori agrees to do so, then the parties will endeavor to negotiate and enter into a definitive agreement on mutually acceptable terms and conditions, providing for the specified services to be performed by Shiratori (the “Services Agreement”) to be more fully described in one or more Scopes of Work, each Scope of Work to provide the basis for the payment by Censa to Shiratori for the services to be rendered by Shiratori and estimating the cost to Censa (provisions for determining 

12

the cost shall be negotiated and included in the Services Agreement).  Neither Party will have any legal obligation to enter into any Services Agreement.  If a Services Agreement is entered into, then neither Party will have any legal obligation to enter into any Scope of Work thereunder.
3.9 Commercialization Phase Drug Substance Supply.
(a) During the Evaluation Period the Parties shall negotiate in good faith the terms and conditions of a commercial-scale Drug Substance supply agreement (the “Supply Agreement”).  The conditions to be negotiated shall include customary terms and conditions as may be found in comparable contract manufacturing agreements in the pharmaceutical industry, including customary rights for audit, inspection, quality systems assurance, forecasting and ordering, and governance of the Supply Agreement.
(b) For clarity and the avoidance of doubt, in no event shall any actual price to be paid by Censa under the Supply Agreement exceed the applicable amount set forth in the “Price to Censa” column of the table set forth in Section 3.6(d) above or Manufacturing Cost plus [**] percent ([**]%), whichever amount is less.  Notwithstanding the foregoing sentence, if Shiratori notifies Censa in writing during the Evaluation Period that it is not interested in entering into the Supply Agreement, then Censa shall have all rights provided for in Section 3.9 below including without limitation the right to enter into a commercial supply agreement with a Third Party.
3.9 Failure to Supply and Second Source of Supply.  The Supply Agreement shall contain failure to supply provisions pursuant to which Censa has the right to manufacture Drug Substance itself and/or to engage a Third Party to manufacture Drug Substance on Censa’s behalf if Shiratori fails to supply Drug Substance pursuant to Censa’s purchase orders.  In the event such failure to supply continues for the period of time mutually set forth in the Supply Agreement, this Agreement shall be amended to include the license granted from Shiratori to Censa under Section 2.1 above the right to make and have made the Product in the Territory.  The Supply Agreement also shall contain second source provisions pursuant to which Censa in any event has the right to supply Drug Substance for itself or through a qualified Third Party to meet marketing needs in the Territory.
ARTICLE 4.
INITIAL PAYMENT AND MILESTONE PAYMENTS
4.1 Milestone Payments.  Each of the following amounts shall be payable by Censa to Shiratori in U.S. Dollars within [**] days following confirmation by Censa that the specified event has occurred:
(a) US$[**] upon [**]
(b) US$[**] upon [**]
(c) US$[**] upon [**]
(d) US$[**] upon [**]
(e) US$[**] upon [**]
(f) US$[**] upon [**]

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For clarity and the avoidance of doubt, the obligation of Censa (or its sublicensee, as the case may be) to pay the foregoing amounts shall apply and shall survive notwithstanding any sublicense by Censa under this Agreement.
4.2 Backup or Alternative Product.  For clarity and the avoidance of doubt, it is understood that if, for any reason whatsoever, the development of the Product is discontinued in any indication prior to such Product achieving Regulatory Approval, the selection of a backup of such Product or a different Product for development in that same or a different indication shall not trigger the reimbursement by Shiratori or further payment by Censa of any milestone already paid with respect to the terminated Product.
ARTICLE 5.
ROYALTIES
5.1 Royalty Rates.  In further consideration of the licenses granted in this Agreement, Censa shall pay to Shiratori royalties on the Product based on aggregate Net Sales of such Product on a country-by-country basis in the Territory in the amount of [**] percent ([**]%).
5.2 Term of Royalties.  Royalties shall be payable for each full calendar year during the term of this Agreement and on an aggregate pro rata basis for the first and last year of commercialization during the term of this Agreement if such first and last years are not comprised of a full twelve (12) months, as follows:
(a) With respect to royalties payable for the countries of the European Union, until expiration of the last-to-expire Licensed Patent Controlled by Shiratori covering the European Union if the making, having made, using, offering to sell, selling or importing of such Product by Censa, its Affiliates or its sublicensees (or the distributors of any of them) in the absence of this Agreement, would infringe one or more Valid Claim of the Licensed Patents in the European Union.
(b) With respect to royalties payable for the United States, until the expiration of the last-to-expire Licensed Patent Controlled by Shiratori covering the United States if the making, having made, using, offering to sell, selling or importing of such Product by Censa, its Affiliates or its sublicensees (or the distributors of any of them) in the absence of this Agreement, would infringe one or more Valid Claim of the Licensed Patents in the United States.
(c) With respect to royalties payable for any other country in the Territory, until the expiration of the last-to-expire Licensed Patent Controlled by Shiratori covering the relevant country on a country-by-country basis if the making, having made, using, offering to sell, selling or importing of such Product by Censa, its Affiliates or its sublicensees (or the distributors of any of them) in the absence of this Agreement, would infringe one or more Valid Claim of the Licensed Patents in the relevant country.
5.3 No Obligation.  Notwithstanding any other provision in this Agreement to the contrary, Censa shall have no obligation to launch any Product in any country.  In addition, Censa may, in its sole discretion, discontinue its commercialization of any Product in any country.
5.4 Offset.  

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(a) In the event that Censa is required to pay a non-affiliated Third Party royalty or other amounts with respect to a Product under agreements for patent rights or other technologies that Censa in its reasonable judgment determines are necessary or desirable to license or acquire with respect to the Product or Licensed Technology (including without limitation amounts paid in connection with the [**]), and only if Censa obtains a prior written consent from Shiratori (which consent shall not be unreasonably, conditioned, delayed, or withheld by Shiratori) to pay such royalty or other amounts, then amounts owed by Censa to Shiratori under this Agreement will be reduced by the amounts paid by Censa to non-affiliated Third Parties; provided, however, that the maximum reduction shall be [**] percent ([**]%) of the amounts otherwise owed by Censa to Shiratori.
5.5 Reports and Payments.
(a) Cumulative Royalties.  The obligation to pay royalties under this Article 5 shall be imposed only once (i) with respect to any sale of the same unit of Product and (ii) with respect to a single unit of Product regardless of how many Valid Claims or other Licensed Patents included in the Licensed Technology would, but for this Agreement, be infringed by the making, using or selling of such Product.
(b) Statements and Payments.  Censa shall deliver to Shiratori within [**] days after the end of each calendar quarter a report setting forth for such calendar quarter the following information on a Product-by-Product basis and a country-by country basis: (i) Net Sales of such Product and (ii) the royalty due hereunder for the sale of such Product.  The total royalty due for the sale of the Product during such calendar quarter shall be remitted within [**] business days from the time such report is made if and to the extent Censa actually then has received corresponding proceeds from applicable Net Sales, or, if and to extent Censa then has not received such proceeds, as soon as reasonably practicable after receiving such proceeds.
5.6 Taxes and Withholding.  Any payments made by Censa to Shiratori under this Agreement shall be reduced by the amount that Censa is required to pay or withhold pursuant to any applicable law, including, but not limited to, foreign and United States federal, state or local tax law (“Withholding Taxes”).  Any such Withholding Taxes required by law to be paid or withheld shall be an expense of, and borne solely by, Shiratori.  Censa shall submit to Shiratori reasonable proof of payment of the Withholding Taxes within a reasonable period of time after such Withholding Taxes are remitted to the proper authority.  The Parties shall reasonably cooperate in completing and filing documents required under the provisions of any applicable tax laws or under any other applicable law in connection with the making of any required tax payment or withholding payment, or in connection with any claim to a refund of or credit for any such payment.  The Parties shall charge each other value-added taxes in accordance with the applicable law in addition to any consideration or payment agreed upon.
5.7 Currency Exchange.  With respect to Net Sales invoiced in U.S. dollars, the Net Sales and the amounts due to Shiratori hereunder shall be expressed in U.S. dollars.  With respect to Net Sales invoiced in a currency other than U.S. dollars, the Net Sales shall be expressed in the domestic currency of the entity making the sale, together with the U.S. dollar equivalent, calculated using the arithmetic average of the spot rates on the last Business Day of each month of the calendar 

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quarter in which the Net Sales were made.  The “closing mid-point rates” found in the “Dollar spot forward against the Dollar” table published by The Financial Times or any other publication as agreed to by the Parties shall be used as the source of spot rates to calculate the average as defined in the preceding sentence.  All payments shall be made in United States dollars.  If at any time legal restrictions in any country in the Territory prevent the prompt remittance of any payments with respect to sales in that country, Censa shall have the right and option to make such payments by depositing the amount thereof in local currency to Shiratori’s account in a bank or depository in such country.
5.8 Maintenance of Records; Audit.  For a period of [**] years, Censa shall maintain and shall cause its Affiliates and sublicensees to maintain complete and accurate books and records in connection with the sale of the Product, as necessary to allow the accurate calculation of royalties due hereunder including any records required to calculate any royalty adjustments hereunder.  [**] per calendar year, Shiratori shall have the right to engage an independent accounting firm acceptable to Censa, at Shiratori’s expense, which shall have the right to examine in confidence the relevant Censa records as may be reasonably necessary to determine and/or verify the amount of royalty payments due hereunder.  Such examination shall be conducted during Censa’s normal business hours, after at least [**] days' prior written notice to Censa and shall take place at Censa’s facility(ies) where such records are maintained.  Each such examination shall be limited to pertinent books and records for any year ending not more than [**] months prior to the date of request.  Before permitting such independent accounting firm to have access to such books and records, Censa may require such independent accounting firm and its personnel involved in such audit, to sign a confidentiality agreement (in form and substance reasonably acceptable to Censa) as to any of the confidential information of Censa, its Affiliates or sublicensees which is to be provided to such accounting firm or to which such accounting firm shall have access, while conducting the audit under this Section.  Shiratori’s independent accounting firm shall prepare and provide to both Shiratori and Censa a written report disclosing only whether the royalty reports submitted and royalties paid by Censa are correct or incorrect and the specific details concerning any discrepancies.  No other information shall be provided to Shiratori.  In the event there was an underpayment by Censa hereunder, Censa shall promptly (but in no event later than [**] days after Censa’s receipt of the independent auditor’s report so correctly concluding) make payment to Shiratori of any shortfall.  In the event that there was an overpayment by Censa hereunder, Shiratori shall promptly (but in no event later than [**] days after Shiratori’s receipt of the independent auditor’s report so correctly concluding) refund to Censa the excess amount.  In the event any payment by Censa shall prove to have been incorrect by more than [**] percent ([**]%) to Shiratori’s detriment, Censa shall pay the reasonable fees and costs of Shiratori’s independent auditor for conducting such audit.
ARTICLE 6.
REPRESENTATIONS, WARRANTIES, AND COVENANTS
6.1 Mutual Representations and Warranties.  Each Party respectively hereby represents and warrants to the other Party that:
(a) such Party is a corporation duly organized, validly existing and in good standing under the laws of the state or other jurisdiction of incorporation or formation and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof;

16

(b) such Party is duly authorized, by all requisite corporate action, to execute and deliver this Agreement and the execution, delivery and performance of this Agreement by such Party does not require any shareholder action or approval, and the Person executing this Agreement on behalf of such Party is duly authorized to do so by all requisite corporate action;
(c) no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority is required on the part of such Party in connection with the valid execution, delivery and performance of this Agreement, except where the failure to obtain any of the foregoing would not have a material adverse impact on the ability of such Party to meet its obligations hereunder;
(d) this Agreement is a legal and valid obligation binding upon such Party and enforceable in accordance with its terms except as (i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights and (ii) equitable principles of general applicability; and
(e) the execution, delivery and performance by it of this Agreement and its compliance with the terms and provisions of this Agreement does not and shall not conflict with or result in a breach of any of the terms or provisions of (i) any other contractual or other obligations of such Party, (ii) the provisions of its charter, operating documents or bylaws, or (iii) any order, writ, injunction or decree of any court or governmental authority entered against it or by which it or any of its property is bound except where such breach or conflict would not materially impact the Party’s ability to meet its obligations hereunder.
6.2 Additional Shiratori Representations, Warranties, and Covenants.  Shiratori represents, warrants, and covenants to Censa that: 
(a) it has the full right, power and authority to grant the licenses granted to Censa under Article 2 hereof; 
(b) all Licensed Patents included within the Licensed Technology which are existing as of the Effective Date are listed on Schedule 6.2(b) hereto and, as of the Effective Date, such Licensed Patents are existing and, to its knowledge, are not invalid or unenforceable, in whole or in part;
(c) except as previously disclosed to Censa in writing (i) it is the sole and exclusive owner or the exclusive Censa of the rights, title, and interest in and to the Licensed Technology, free and clear of any liens, charges or encumbrances, including, without limitation, all Licensed Patents included in the Licensed Technology, and (ii) no Third Party has any right, title or interest in or to the Licensed Technology;
(d) except as disclosed to Censa in writing (i) all inventors (who are known as of the Effective Date) of any inventions included within the Licensed Technology have assigned (or are deemed to have assigned by applicable law) their entire right, title and interest in and to such inventions and the corresponding Licensed Patents to Shiratori and (ii) no Person, other than those Persons named as inventors on any patent or patent 

17

application included within the Licensed Technology, is an inventor of the invention(s) claimed in such patent or patent application;
(e) as of the Effective Date, there are no claims, judgments or settlements against, or owed by, Shiratori or, to its knowledge, pending or threatened claims or litigation relating to the Licensed Technology and during the term of this Agreement Shiratori shall promptly notify Censa in writing upon learning of any such actual or threatened claim, judgment or settlement;
(f) during the term of this Agreement, Shiratori shall use Commercially Reasonable Efforts not to diminish the rights under the Licensed Technology; 
(g) except as previously disclosed to Censa in writing, as of the Effective Date it is not aware of any patent, patent application or other intellectual property right of any Third Party which could materially adversely affect the ability of either Party to carry out its respective obligations hereunder or the ability of Censa to exercise or exploit any of the rights or licenses granted to it under this Agreement;
(h) except as previously disclosed to Censa in writing, it has no knowledge of any material information which would negatively affect the ability of Censa to use the Licensed Technology;
(i) during the term of this Agreement, Shiratori shall not grant any right to any Third Party relating to any of the Licensed Technology which would conflict with, limit or adversely affect the rights granted to Censa hereunder; 
(j) Shiratori shall fulfill its covenants in relation to the JMC as provided for in Section 3.5 above; and
(k) Drug Substance sold by Shiratori to Censa for use in preclinical development and clinical trials of the Product shall meet applicable specifications at the time of delivery, and shall have been manufactured in compliance with law applicable in the country of manufacture, the United States, and the European Union.
ARTICLE 7.
CONFIDENTIALITY; PUBLIC ANNOUNCEMENTS
7.1 Confidentiality.  Except to the extent expressly authorized by this Agreement or otherwise agreed in writing, the Parties agree that, until [**] years after the expiration or termination of this Agreement, each Party (the “Receiving Party”) receiving hereunder any Confidential Information of the other Party (the “Disclosing Party”) or information of the other Party marked “Confidential” shall keep such information confidential and shall not publish or otherwise disclose or use for any purpose other than as provided for in this Agreement, except to the extent that it can be established by the Receiving Party that the Confidential Information:
(a) was already known to the Receiving Party, or its Affiliates (other than under an obligation of confidentiality) at the time of disclosure by the Disclosing Party, and such Receiving Party can so demonstrate by documentary evidence to that effect;
(b) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the Receiving Party;

18

(c) became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission in breach of a confidentiality obligation;
(d) was disclosed to the Receiving Party or its Affiliates other than under an obligation of confidentiality by a Third Party who had no obligation to the Disclosing Party or its Affiliate not to disclose such information to others; or
(e) was independently discovered or developed by the Receiving Party or its Affiliates without the use of the Confidential Information belonging to the Disclosing Party or its Affiliates and the Receiving Party can so demonstrate by documentary evidence to that effect.
Each Party's Affiliates may receive, use and provide Confidential Information in the performance of the rights and obligations described in this Agreement.
7.2 Authorized Disclosure.  Each Party may disclose Confidential Information belonging to the other Party to the extent such disclosure is reasonably necessary to:
(a) file or prosecute patent applications claiming inventions included within the Licensed Technology;
(b) prosecute or defend litigation;
(c) exercise rights hereunder provided such disclosure is covered by terms of confidentiality similar to those set forth in this Agreement; and
(d) comply with applicable governmental laws and regulations.
In the event a Party shall deem it necessary to disclose, pursuant to this Section 7.2, Confidential Information belonging to the other Party, such Party shall, to the extent possible, give reasonable advance notice of such disclosure to the other Party and take reasonable measures to ensure confidential treatment of such information.  For clarity and the avoidance of doubt, Censa in any event may disclose (i) the existence of its license and related Product rights under this Agreement, (ii) under appropriate confidentiality protection the terms and conditions of this Agreement to current and potential investors, investment bankers and other financial advisors, and strategic partners, and (iii) as required by government and regulatory authorities including without limitation the United States Securities and Exchange Commission.
7.3 SEC Filings.  The Parties shall agree in advance with each other on the terms of this Agreement to be redacted in any Securities and Exchange Commission filings.
7.4 Public Announcements.  The Parties agree on the importance of coordinating their public announcements respecting this Agreement and the subject matter thereof. Neither Party shall make any public release, public statement or other disclosure concerning this Agreement or its terms, without the prior written consent and approval of the other Party, which approval shall not be unreasonably conditioned, delayed, or withheld.  Notwithstanding the preceding sentence, each Party may make any disclosures, statements or releases regarding this Agreement or its terms as are required by applicable law; provided, however, that the Party seeking to make such disclosure gives the other Party at least [**] days prior written notice of such disclosure (unless a shorter time period for such 

19

disclosure is required by applicable law) and provides such Party in good faith the right to review and comment upon such disclosure.  In addition, Censa may disclose the existence and terms of this Agreement to its accountants, attorneys, and other professional advisors under a duty of confidentiality and to a Third Party under a duty of confidentiality in connection with any proposed or consummated financing or a proposed or consummated sale of all or substantially all of Censa’s business to which this Agreement relates.
7.5 Survival.    The provisions of this Article 7 shall survive termination or expiration of this Agreement.
ARTICLE 8.
INDEMNIFICATION
8.1 Indemnification by Censa.  Censa agrees to defend Shiratori and its Affiliates at Censa’s cost and expense, and shall indemnify and hold Shiratori and its Affiliates and their respective directors, officers, employees and agents (the “Shiratori Indemnified Parties”) harmless from and against any losses, costs, damages, fees or expenses arising out of any Third Party claim relating to (i) any material breach by Censa of any of its representations, warranties or obligations pursuant to this Agreement, (ii) the negligence or willful misconduct of Censa in the performance of any of its obligations pursuant to this Agreement, or (iii) Censa’s use of the Drug Substance or Product if and to the extent Drug Substance or Product meets or exceeds applicable written specifications.  In the event of any such claim against the Shiratori Indemnified Parties by any Third Party, Shiratori shall promptly notify Censa in writing of the claim and Censa shall manage and control, at its sole expense, the defense of the claim and its settlement; provided that Censa shall not agree to any settlement that would admit liability on the part of Shiratori or involve relief other than the payment of money, without the approval of Shiratori, such approval not to be unreasonably conditioned, delayed, or withheld.  The Shiratori Indemnified Parties shall cooperate with Censa and may, at their option and expense, be represented in any such action or proceeding.  Censa shall not be liable for any litigation costs or expenses incurred by the Shiratori Indemnified Parties without Censa’s prior written authorization.  In addition, Censa shall not be responsible for the indemnification or defense of any Shiratori Indemnified Party arising from any negligent or intentional acts by any Shiratori Indemnified Party or the breach by Shiratori of any representation, warranty or obligation under this Agreement, or any claims compromised or settled without its prior written consent.
8.2 Indemnification by Shiratori.  Shiratori agrees to defend Censa and its Affiliates at Shiratori’s cost, and shall indemnify and hold Censa and its Affiliates and their respective directors, officers, employees and agents (the “Censa Indemnified Parties”) harmless from and against any losses, costs, damages, fees or expenses arising out of any Third Party claim relating to (i) any material breach by Shiratori of any of its representations, warranties or obligations pursuant to this Agreement or (ii) the negligence or willful misconduct of Shiratori in the performance of any of its obligations pursuant to this Agreement.  In the event of any claim against the Censa Indemnified Parties by any Third Party, Censa shall promptly notify Shiratori in writing of the claim and Shiratori shall manage and control, at its sole expense, the defense of the claim and its settlement; provided that Shiratori shall not agree to any settlement that would admit liability on the part of Censa or involve relief other than the payment of money, without the approval of Censa, not to be unreasonably conditioned, delayed, or withheld.  The Censa Indemnified Parties shall cooperate with Shiratori and may, at their option and expense, be represented in any such action or proceeding.  Shiratori shall not be liable for 

20

any litigation costs or expenses incurred by the Censa Indemnified Parties without Shiratori’s prior written authorization.  In addition, Shiratori shall not be responsible for the indemnification or defense of any Censa Indemnified Party arising from any negligent or intentional acts by any Censa Indemnified Party, or the breach by Censa of any representation, warranty or obligation under this Agreement, or any claims compromised or settled without its prior written consent.
8.3 Insurance Proceeds.  Any indemnification hereunder shall be made net of any insurance proceeds recovered by the indemnified Party; provided, however, that if, following the payment to the indemnified Party of any amount under this Article 8, such indemnified Party recovers any insurance proceeds in respect of the claim for which such indemnification payment was made, the indemnified Party shall promptly pay an amount equal to the amount of such proceeds (but not exceeding the amount of such indemnification payment) to the indemnifying Party.
8.4 Survival.    The indemnification obligations set forth in this Article 8 shall survive the termination or expiration of this Agreement.
8.5 Insurance.  Each Party further agrees to use its Commercially Reasonable Efforts to obtain and maintain commercial general liability insurance, including products liability insurance in timely fashion with respect to clinical-trial commencement, with reputable and financially secure insurance carriers or self-insurance, in such amounts and subject to such deductibles as the Parties may agree based upon standards prevailing in the industry at the time.
ARTICLE 9.
TERM AND TERMINATION
9.1 Term.
(a) Unless earlier terminated by mutual agreement of the Parties or pursuant to the provisions of this Article 9, this Agreement shall continue in full force and effect on a country-by-country and Product-by-Product basis until the obligation to pay royalties with respect to the sale of such Product in such country expires or this Agreement is earlier terminated in accordance with the terms hereof.
(b) On a country-by-country basis and on a Product-by-Product basis, upon the scheduled expiration (as contemplated in Section 5.2) of the obligation to pay Royalties with respect to the sale of such Product in such country, the licenses granted hereunder shall become non-exclusive, fully paid up, royalty-free, perpetual and irrevocable, notwithstanding subsequent expiration or termination of this Agreement.
9.2 Voluntary Termination.  
(a) By Censa.  At any time during the term of this Agreement, Censa may elect to terminate this Agreement upon sixty (60) days’ prior written notice to Shiratori.  Censa shall, as of the effectiveness of such termination, be relieved of any and all further obligations to make payments to Shiratori under this Agreement to the extent not accrued prior to such termination.  Censa also shall be relieved of any and all further obligations with respect to patents and patent applications in the Territory
(b) By Shiratori.  Unless otherwise agreed between the Parties in writing, Shiratori may elect to terminate this Agreement upon sixty (60) days’ prior written notice to Censa in the event that Censa fails (i) to achieve Regulatory Approval in either the United States 

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or European Union for at least one indication within six (6) years or (ii) to launch the Product in the United States or European Union within seven (7) years from the Effective Date.  Censa shall, as of the effectiveness of such termination, be relieved of any and all further obligations to make payments to Shiratori under this Agreement to the extent not accrued prior to such termination.  Censa also shall be relieved of any and all further obligations with respect to patents and patent applications in the Territory.
9.3 Termination for Material Breach.  
(a) Upon a material breach of this Agreement by Censa or Shiratori (in such capacity, the “Breaching Party”), the other Party (in such capacity, the “Non-Breaching Party”) may provide written notice (a “Breach Notice”) to the Breaching Party specifying the material breach.  If the Breaching Party fails to cure such material breach during the [**] day period (or, if applicable, such longer period, but not to exceed [**] days, as would be reasonably necessary for a diligent party to cure such material breach, provided the Breaching Party has commenced and continues its diligent efforts to cure during the initial [**] day period following the date on which the Breach Notice is provided) following the date on which the Breach Notice is provided, then the other Party may terminate this Agreement immediately upon the expiration of the [**] day (or other longer) period upon written notice to the Breaching Party.
(b) Notwithstanding any other provisions of this Agreement to the contrary, the consequences of termination for material breach set forth above shall not become effective until after final and unappealable adjudication of the occurrence and failure to timely cure any such material breach.
9.4 Consequences of Termination or Material Breach.
(a) Voluntary Termination by Censa.  In the event this Agreement is voluntarily terminated by Censa pursuant to Section 9.2(a) above, all licenses granted by Shiratori to Censa pursuant to Section 2.1 above shall terminate
(b) Voluntary Termination by Shiratori.  In the event this Agreement is voluntarily terminated by Shiratori pursuant to Section 9.2(b) above, all licenses granted by Shiratori to Censa pursuant to Section 2.1 above shall terminate.
(c) Material Breach by Censa.  In the event that Censa commits a material breach of this Agreement and such material breach is not cured in accordance with the provisions of Section 9.3 above, then at Shiratori’s election to terminate this Agreement, all licenses granted by Shiratori to Censa pursuant to Section 2.1 shall terminate.
(d) Material Breach by Shiratori.  In the event that Shiratori commits a material breach of this Agreement and such material breach is not cured in accordance with the provisions of Section 9.3 above, then Censa may in its discretion, terminate this Agreement, in which event all licenses granted by Shiratori to Censa pursuant to Section 2.1 above shall terminate, but Censa (in addition to its indemnification rights under Section 8.2 above) shall have the right to compensation from Shiratori for any and all losses, costs, damages, fees or expenses Censa and its Affiliates and sublicensees may incur as a result of such material breach.  In the event Censa decides 

22

not to terminate this Agreement for material breach by Shiratori, Censa shall have the right to continue to develop and to commercialize the Product provided that the royalties otherwise payable by Censa to Shiratori pursuant to Article 5 shall be reduced by [**] Percent ([**]%), and Censa shall also have the right to offset any costs it may incur as a result of such material breach against the amounts payable to Shiratori hereunder.
(e) Additional Remedies.  The rights of the Non-Breaching Party set forth in paragraphs (b) or (c) of this Section 9.4 above shall be in addition to any other remedies to which the Non-Breaching Party may otherwise be entitled at law or equity for such breaches.
(f) Rights and Duties Upon Termination.  Upon early termination of this Agreement, in its entirety or with respect to any country or Product, Censa shall notify Shiratori of the amount of Product that Censa, its Affiliates and sublicensees then have on hand for sale in such country(ies), the sale of which would, but for the termination, be subject to royalty.  Censa, its Affiliates and sublicensees shall thereupon be permitted to sell that amount of Product, provided that Censa shall pay the royalty thereon to Shiratori at the time provided for in this Agreement.
9.5 Bankruptcy.  Each Party may, in addition to any other remedies available to it by law or in equity, exercise the rights set forth below by written notice to the other Party (the “Insolvent Party”), in the event the Insolvent Party shall have become insolvent or bankrupt, or shall have made an assignment for the benefit of its creditors, or there shall have been appointed a trustee or receiver of the Insolvent Party or for all or a substantial part of its property, or any case or proceeding shall have been commenced or other action taken by or against the Insolvent Party in bankruptcy or seeking reorganization, liquidation, dissolution, winding-up arrangement, composition or readjustment of its debts or any other relief under any bankruptcy, insolvency, reorganization or other similar act or law of any jurisdiction now or hereafter in effect, or there shall have been issued a warrant of attachment, execution, restraint or similar process against any substantial part of the property of the Insolvent Party, and any such event shall have continued for [**] days undismissed, unbonded, or undischarged.  All rights and licenses granted under or pursuant to this Agreement by Shiratori are, and shall otherwise be deemed to be, for purposes of Section 365 (n) of the U.S.  Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101 of the U.S.  Bankruptcy Code.  The Parties agree that Censa as licensee of such rights under this Agreement shall retain and may fully exercise all of its rights and elections under the U.S.  Bankruptcy Code.  The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against Shiratori under the U.S.  Bankruptcy Code, Censa shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, and same, if not already in the its possession, shall be promptly delivered to it (i) upon any such commencement of a bankruptcy proceeding upon its written request therefor, unless Shiratori elects to continue to perform all of its obligations under this Agreement or (ii) if not delivered under (i) above, upon the rejection of this Agreement by or on behalf of Shiratori upon written request therefor by Censa.
9.6 Liabilities.  Expiration or termination of this Agreement shall not release either Party from any obligation or liability which shall have accrued at the time of termination, or preclude 

23

either Party from pursuing all rights at law and in equity with respect to any breach under this Agreement.  Notwithstanding the foregoing, except as may be the case under Article 8, neither Party shall be liable for punitive, exemplary or consequential damages incurred by the other Party arising out of any default under this Agreement.
ARTICLE 10.
INTELLECTUAL PROPERTY
10.1 Ownership of Intellectual Property.  It is anticipated that during the course and as a result of the Parties’ performance under this Agreement discoveries, improvements, inventions, writings, and other technology, whether or not patentable or copyrightable (collectively, “Inventions”) may be conceived, made, or reduced to practice by the respective personnel of Censa and/or Shiratori.  Ownership of Inventions shall be determined as follows:  
(a) Any Inventions conceived, made, or reduced to practice solely by employees of or Third Parties acting on behalf of Censa or a Censa Affiliate or sublicensee (“Censa Inventions”) shall be owned by Censa and recorded in a conception register and shall be submitted to Censa patent counsel.  Censa promptly shall disclose to Shiratori the conception, making, or reduction to practice of Censa Inventions.
(b) Any Inventions conceived, made, or reduced to practice solely by employees of or Third Parties acting on behalf of Shiratori or a Shiratori Affiliate (“Shiratori Inventions”) shall be owned by Shiratori and recorded in a conception register and shall be submitted to Shiratori patent counsel.  Shiratori promptly shall disclose to Censa the conception, making, or reduction to practice of Shiratori Inventions.
(c) All Inventions that are conceived, made, or reduced to practice jointly by employees of Censa or a Censa Affiliate or sublicensee or Third Parties acting on their behalf, on the one hand, and Shiratori or a Shiratori Affiliate or Third Parties acting on their behalf, on the other hand, and which are not Censa Inventions or Shiratori Inventions, are “Joint Inventions” and shall be jointly owned by the Parties (with patent-related responsibilities allocated at a ratio agreed upon by the Parties in good faith as provided for in Section 10.2(b) below) and recorded in a conception register and shall be submitted to both Censa and Shiratori patent counsel. Each Party promptly shall disclose to the other Party the conception, making, or reduction to practice of Joint Inventions.
(d) Inventorship of Inventions will be determined in accordance with principles of U.S. patent law.  In the case of trade secrets or know-how not intended for patent application, inventorship will be determined under such principles by treating such Inventions as if they were patentable.
10.2 Patent Prosecution
(a) Patent Prosecution of Solely Owned Inventions.  As to Censa Inventions or Shiratori Inventions, respectively, the Party owing such Inventions shall be solely responsible for the filing, prosecution (including oppositions), and maintenance of all patent applications of such Inventions, and such Party shall have sole responsibility for all fees with respect to such patent applications and all fees necessary for maintenance and enforcement, both in the Territory and in Japan.

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(b) Patent Prosecution of Joint Inventions.  In the Territory, as between the Parties, Censa shall be responsible for the filing, prosecution (including oppositions), and maintenance of all patent applications of Joint Inventions, and in Japan, Shiratori shall be responsible for filing, prosecution (including oppositions), and maintenance of all patent applications of Joint Inventions.  The Parties shall share pro-rata based on each Party’s respective ownership share in the applicable patent the obligation and responsibility for all fees with respect to such patent applications and all fees necessary for maintenance and enforcement equitably.  In Japan, as between the Parties, Shiratori be responsible for, and shall keep Censa currently apprised of, all steps taken or to be taken in the prosecution of the Licensed Patents and any improvements and shall promptly furnish Censa with copies of all patent applications and material correspondence with all patent offices in Japan.
(c) Patent Applications Issued.  In the event any patent applications having Valid Claims issue during the term of this Agreement, Shiratori shall notify Censa within [**] Business Days thereof and shall assist Censa in listing the patents with the appropriate Regulatory Authority in the Territory within [**] days of issuance thereof.  If the regulatory law changes in the Territory, Shiratori agrees to assist Censa with any patent listing with a Regulatory Authority within the appropriate period of time.
(d) Patent Extensions and Supplementary Protection Certificates.  Shiratori shall file all applications and take all actions necessary to obtain patent extensions pursuant to 35 USC 156 or like foreign statutes for Licensed Patents licensed to Censa hereunder.
(e) Licensed Patents and Related Technology Generally.  Shiratori and its patent counsel or other legally authorized or agents shall consult with Censa in all aspects of the filing, prosecution (including oppositions), and maintenance of the Licensed Patents and other Licensed Technology and shall provide Censa sufficient opportunity to comment on any related document that Shiratori intends to file or to cause to be filed with the relevant governmental authority in advance of such filing.  Any actions recommended by Censa for such purpose shall not be unreasonably denied or delayed by Shiratori.
10.3 Infringement Actions Against Third Parties.
(a) Shiratori and Censa shall promptly notify each other of any infringement or unauthorized use of any Licensed Technology that may come to their attention.  Shiratori shall promptly undertake, at Shiratori’s expense, reasonable efforts to obtain a discontinuance of the aforesaid infringement or unauthorized use and, if not successful, Shiratori shall bring suit against such infringer or unauthorized user.  Censa, within a reasonable period of time and at its option and expense, shall have the right to participate in any such suit.  Shiratori shall not enter into any settlement agreement with respect to such suit without Censa's consent.
(b) If Shiratori fails to obtain a discontinuance of said infringement or unauthorized use and/or fails to promptly bring suit against such Third Party, then in any such event Shiratori shall give notice in writing to Censa of the circumstance of such infringement or unauthorized use, including such evidence of infringement as Shiratori may possess and the numbers of the patents and patent applications so infringed.  Censa may, in its 

25

discretion (but is not required to) (i) obtain a discontinuance of the alleged infringing operation or unauthorized use or (ii) bring suit against such Third Party.  Any suit by Censa shall be either in the name of Censa, or in the name of Shiratori, or jointly by Censa and Shiratori, as may be required by the law of the forum.  For this purpose, Shiratori shall execute such legal papers necessary for the prosecution of such suit as may be reasonably requested by Censa.
(c) It is understood and agreed that the Party to this Agreement that institutes the suit or action shall bear solely all costs and expenses associated therewith (excepted as otherwise provided in this Agreement) and shall be entitled to retain and keep any and all sums received, obtained, collected or recovered whether by judgment, settlement or otherwise, as a result of such suit.  In addition, with respect to any suit for infringement or unauthorized use of the Licensed Know-How and/or Licensed Patents, the Party that did not institute suit, shall render all reasonable assistance to the Party that did institute suit at the assisting Party's cost and expense, including executing all documents as may be reasonably requested by the Party that did institute suit.
(d) Shiratori and Censa shall keep each other fully informed of all efforts to obtain discontinuation of unauthorized uses and infringements.
(e) Infringements also shall include notices received by Shiratori or Censa under 21 USC §355(b)(3) or §355(j)(2)(3) (a “Paragraph IV Notice”).  When a Paragraph IV Notice is received by Shiratori or Censa, each shall notify the other in writing within [**] Business Days after receipt thereof.  If Shiratori has not brought suit within [**] days of the date of the Paragraph IV Notice, Censa, at its sole discretion, may bring suit.
10.4 Infringement of Third Party Intellectual Property Rights.  Each Party hereto shall notify the other Party promptly in the event of the receipt of notice of any action, suit or claim alleging infringement by Drug Substance or Product of any Third Party patent, trademark, know-how or intellectual property in the Territory.  Shiratori shall indemnify and hold Censa harmless in the event that the use, promotion, or sale of Drug Substance infringe or violate any Third Party’s patent or know-how, provided such infringement or unauthorized use does not arise or result from the negligence, misconduct or omission of Censa.  In such event, Shiratori shall immediately and thoroughly inform Censa of such Third Party’s claim or action, and Shiratori shall take all provisional measures so as to protect and preserve Censa’s interests hereunder.
10.5 Offset.  In the event that it is necessary, in Censa's reasonable judgment, for Censa to make royalty or other payments to a Third Party in order for Censa to exercise or continue to exercise the rights granted to Censa pursuant to the terms of this Agreement in relation to the Product, or Licensed Technology, and only if Censa obtains a prior written consent from Shiratori (which consent shall not be unreasonably conditioned, delayed, or withheld by Shiratori) to pay such royalty or other payments,  Censa shall be entitled to offset any amounts so paid to any Third Party against amounts due or which may become due to Shiratori under this Agreement; provided, however, that the maximum reduction shall be [**] percent ([**]%) of the amounts otherwise owed by Censa to Shiratori. Shiratori shall exercise its maximum efforts to protect the rights or interests of Censa obtained hereunder. 
10.6 Compulsory Licenses. 

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(a) In the event that during the term of this Agreement a Regulatory Authority in the Territory grants or compels Shiratori to grant a license to any Third Party(ies) for the Product in any country in the Territory, Censa shall have the benefit of any lower royalty rates granted to such Third Party(ies), but only to the extent that such royalty rates to such Third Party(ies) are more favorable than those granted Censa pursuant to this Agreement, and only during the period such Third Party(ies) sell Product in those countries of the Territory where compulsory license(s) exist and have achieved for a period of at least [**] consecutive months a combined total sales volume of at least [**] percent ([**]%) of Censa's, its Affiliate's and sublicensee’s sales of Product in such country(ies).
(b) If a Regulatory Authority in a country in the Territory imposes a maximum royalty rate, such that lower royalty rates than would otherwise apply under this Agreement are mandated in such country, then the royalty rates provided for in this Agreement shall be reduced to equal such lower rates for sales of the Product in such country for the period such lower royalty rate is required by any Regulatory Authority and shall cease when Censa's royalty payment obligations to Shiratori cease under this Agreement.
10.7 Marks for the Product.  Censa shall own all trademarks, service marks, trade names, brand names, slogans, logos, copyrights, trade dress, know-how (except as otherwise provided in this Agreement) and goodwill developed by Censa and associated with commercializing a Product (collectively, “Marks”).  Censa shall also own any domain names including any Marks.  Shiratori shall not have any right, title, interest or other license in or to any of the Marks, and all uses of such Marks shall inure solely to the benefit of Censa.
10.8 No Trademark Rights.  
(a) Except as otherwise provided in this Agreement, no right, express or implied, is granted by this Agreement to use in any manner the name “Shiratori Pharmaceutical,” “Censa Pharmaceuticals,” or any other trade name or trademark of the other Party or its Affiliates in connection with the performance of this Agreement.
(b) Notwithstanding the foregoing, Censa shall be entitled, at its option, to use Shiratori's brand name on its packaging and/or promotional materials; provided, however, that the use by Censa of Shiratori's brand name, Shiratori's corporate name, or any phrase incorporating such name, shall be prohibited unless and until Shiratori has agreed in advance in writing to the use, the language employed and its location on any packaging and/or promotional materials.
10.9 Invention Dates.  In order to protect the Licensed Patents under United States law, Shiratori agrees to maintain a policy which requires its employees to record and maintain all data and information relating to the Licensed Patents is such a manner as to enable the Parties to use such records to establish the earliest date of invention and/or diligence to reduction to practice.  At a minimum, the policy shall require such individuals to record all inventions generated by them in standard laboratory notebooks which are dated and corroborated by non-inventors on a regular, contemporaneous basis.
10.9 No Other Rights to Censa Intellectual Property.  Nothing in this Agreement shall be construed as granting to Shiratori any ownership interest, license, express or implied, or other right or 

27

title, in or to any technology or intellectual property of Censa, including but not limited to, know-how, patents, patent applications, trade secrets, products, formulations, delivery devices and chemical or biological materials.
ARTICLE 11.                                                                
DISPUTES, GOVERNING LAW                                                                                             
11.1 Disputes.  If the Parties are unable to resolve a dispute within [**] days after a matter is first considered, Censa or Shiratori, by written notice to the other, may have such dispute referred to its respective executive officer designated by each Party for attempted resolution by good faith negotiations.  Any such dispute shall be submitted to such executive officers no later than [**] days following such request by either Censa or Shiratori.  Such designated executive officers shall attempt in good faith to resolve any such dispute within [**] days after submission of the dispute.
11.2 Governing Law. This Agreement shall be construed and the respective rights of the Parties determined according to the substantive laws of the State of Delaware in the United States, notwithstanding the provisions governing conflict of laws under Delaware law to the contrary.  Each Party hereby irrevocably submits to the jurisdiction of any federal or state court in the State of Delaware to resolve any disputes arising out of or in any way relating to this Agreement.  The UNCITRAL Convention for the International Sale of Goods, as well as any other unified law relating to the conclusion and implementation of contracts for the international sale of goods, shall not apply.
ARTICLE 12.
MISCELLANEOUS
12.1 Assignment.  Either Party hereto may assign this Agreement without the other Party’s consent to an Affiliate or to the successor or assignee of all or substantially all of such Party’s business or assets related to the subject matter of this Agreement.  Other than by Censa, this Agreement shall not otherwise be assignable by either Party without the prior written consent of the other Party, which consent shall not be unreasonably conditioned, delayed, or withheld.  This Agreement shall be binding upon and inure to the benefit of the Parties’ permitted successors and assigns.  Notwithstanding any of the foregoing provisions of this Agreement, in the event such an assignment would trigger Withholding Taxes on amounts payable by the assigning Party to the other Party, the assigning Party shall be responsible for the payment of all such Withholding Taxes; provided, however, that if such Party uses a foreign tax credit received as a result of this payment of Withholding Taxes by the assigning Party and thereby reduces the amount of income tax that such Party otherwise would have paid, such Party shall refund to the assigning Party the amount of such reduction with respect to such foreign tax credit.
12.2 Further Actions.  Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.
12.3 Force Majeure.  No Party shall be liable to the other Party for loss or damages or shall have any right to terminate this Agreement for any default or delay attributable to any Force Majeure, if the Party affected shall give prompt notice of any such cause to the other Party.  The Party giving such notice shall thereupon be excused from such of its obligations hereunder as it is thereby disabled from performing for so long as it is so disabled, provided, however, that such affected Party commences and continues to use its Commercially Reasonable Efforts to cure such cause.

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12.4 Notices.

        Notices to Shiratori shall be addressed to:

Shiratori Pharmaceutical Co., Ltd.
2-3-7 Akanehama, Narashino-shi, Chiba-ken
275-0024 JAPAN
Facsimile No.: [**]

Notices to Censa shall be addressed to:

Censa Pharmaceuticals Inc.
222 Third Street, Suite 2240
Cambridge, Massachusetts 02142 USA
Attention: Jonathan Reis, M.D., MBA, Director
Facsimile No.: +1 (617) 225-7780

Either Party may change its address to which notices shall be sent by giving notice to the other Party in the manner provided in this Agreement.  Any notice required or provided for by the terms of this Agreement shall be in writing and shall be sent by (a) registered or certified mail, return receipt requested, postage prepaid, (b) a reputable overnight courier service, (c) first class mail, postage prepaid, (d) personal delivery, or (e) facsimile transmission, in each case properly addressed in accordance with the paragraph above.  The effective date of notice shall be the actual date of receipt by the Party receiving the same.
12.5 Amendment.  No amendment, modification or supplement of any provision of this Agreement shall be valid or effective unless made in writing and signed by a duly authorized officer of each Party.
12.6 Waiver.  No provision of this Agreement shall be waived by any act, omission or knowledge of a Party or its agents or employees except by an instrument in writing expressly waiving such provision and signed by a duly authorized officer of the waiving Party.
12.7 Counterparts.  This Agreement may be executed in counterparts and such counterparts taken together shall constitute one and the same agreement.
12.8 Descriptive Headings.  The descriptive headings of this Agreement are for convenience only, and shall be of no force or effect in construing or interpreting any of the provisions of this Agreement.
12.9 Severability.  If any provision hereof is held invalid, illegal or unenforceable in any respect in any jurisdiction, the Parties hereto shall substitute, by mutual consent, valid provisions for such invalid, illegal or unenforceable provisions which valid provisions in their economic effect are sufficiently similar to the invalid, illegal or unenforceable provisions that it can be reasonably assumed that the Parties would have entered into this Agreement with such valid provisions.  In case such valid provisions cannot be agreed upon, the invalid, illegal or unenforceable of one or several provisions of this Agreement shall not affect the validity of this Agreement as a whole, unless the invalid, illegal or unenforceable provisions are of such essential importance to this Agreement that it is to be reasonably 

29

assumed that the Parties would not have entered into this Agreement without the invalid, illegal or unenforceable provisions.
12.10 Entire Agreement of the Parties.  This Agreement, together with the CDA, and any schedules or exhibits hereto, constitutes and contains the complete, final and exclusive understanding and agreement of the Parties and cancels and supersedes any and all prior negotiations, correspondence, understandings and agreements whether oral or written, among the Parties respecting the subject matter hereof and thereof.
12.11 Independent Contractors.  The relationship between Censa and Shiratori created by this Agreement is one of independent contractors and neither Party shall have the power or authority to bind or obligate the other except as may be expressly set forth in this Agreement.
12.12 Accrued Rights; Surviving Obligations.  Unless explicitly provided otherwise in this Agreement, termination, relinquishment or expiration of the Agreement for any reason shall be without prejudice to any rights which shall have accrued to the benefit to any Party prior to such termination, relinquishment or expiration, including damages arising from any breach hereunder.  Such termination, relinquishment or expiration shall not relieve any Party from obligations which are expressly indicated to survive termination or expiration of the Agreement, including, without limitation, those obligations set forth in Articles 6, 7, 8, and 9, respectively.
12.13 Compliance with Export Regulations.  Neither Party shall export any technology licensed to it by the other Party under this Agreement except in compliance with U.S. export laws and regulations.
12.14 No Third Party Beneficiaries.  No person or entity other than Censa, Shiratori and their respective Affiliates and permitted assignees hereunder shall be deemed an intended beneficiary hereunder or have any right to enforce any obligation of this Agreement.
12.15 No Strict Construction.  This Agreement has been prepared jointly and shall not be strictly construed against either Party.
12.16 Language.  All documents and correspondence relating to this Agreement shall be in the English language.
IN WITNESS WHEREOF, duly authorized representatives of the Parties have duly executed and delivered this Agreement as of the Effective Date.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK; 
THE SIGNATURE PAGE IMMEDIATELY FOLLOWS]

30

SHIRATORI PHARMACEUTICAL CO., LTD.

By: /s/ Yutaka Shiratori 

Name: Yutaka Shiratori

Title: President

CENSA PHARMACEUTICALS INC.

By: /s/ Jonathan Reis

Name: Jonathan Reis 

Title: Chief Executive Officer  

31

Amendment No. 1 to License Agreement

Amendment No. 1 to
License Agreement

This Amendment No. 1 to License Agreement (“Amendment”) dated July 31st, 2017 (the “Effective Date”) amends that certain License Agreement dated as of February 8, 2015 by and between Shiratori Pharmaceutical Co., Ltd. having a principal place of business at 2-3-7 Akenahma, Narashina-shi, Chiba-ken, 275-0024 JAPAN (“Shiratori”) and Censa Pharmaceuticals Inc., having a principal place of business at 222 Third Street, Suite 2240, Cambridge, MA 02142 (“Censa”).

WHEREAS, the parties desire to modify the Agreement to reflect the understandings they have reached with respect to their relationship; and

        WHEREAS, capitalized terms used in this Amendment but not otherwise defined shall have the meaning ascribed to such terms in the Agreement.

        NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

Amendments.  The Agreement is hereby amended as follows:

1.Amended to Section 4.1.   The parties hereby acknowledge that the milestone payments set forth in Section 4.1(a) and 4.2(b) have been made in accordance with the Agreement. The remaining milestone payments due under Sections 4.1(c)-(f) (“Milestones”) are hereby replaced with the following:

(c)  USD[**]- upon [**]  This milestone shall be subject to the payment terms set forth in Section 2 and 3 below.

(d) USD[**] upon [**] 

(e) USD[**] upon [**]

(f) USD[**] upon [**]

(g) USD[**] upon [**]

(h)USD[**] upon [**]
(i)  USD[**] upon [**]

[**] 

2.Manufacturing and Supply of [**]kg of Drug Substance. By [**], Shiratori shall manufacture and deliver to Censa [**]kg of Drug Substance manufactured in 

Amendment No. 1 to License Agreement

accordance with cGMP and the terms and conditions of the Agreement (“[**]kg Batch”).  

3.Payment for the [**]Kg Batch and Milestone 4.1(c).  Payment for the [**]kg Batch and Milestone 4.1(c) shall be made by Censa in either cash or equity, at Censa’s option and in accordance with Section 4 below, within [**] of receipt and acceptance by Censa of the [**]kg Batch.  Censa shall pay interest on the said amounts due at an interest rate of [**] percent ([**]%) per annum.

4.Payment in Equity. At any time on or before the due date of the amounts set forth in Section 3 (the “Conversion Date”), Censa shall have the option to convert the unpaid amounts due, plus any accrued interest thereon through the Conversion Date, into common shares at a price equal to [**]% less than the purchase price per share of paid by the investors for securities in the Qualified Financing or in absence of a Qualified Financing at a purchase price equal to [**]% less than the price paid by investors in the 2016 Series A financing. For the purposes of this Agreement, “Qualified Financing” shall mean an investment in preferred or common stock of Censa in which Censa receives gross proceeds of at least $[**].  Upon payment in equity, Shiratori shall execute Censa’s stockholders’ agreement.

5. Inventorship of [**].   Shiratori’s personnel will be named as co-inventors, as identified on Exhibit A, for patent claims directed to the [**] as set forth in the provisional patent application entitled [**].    

6.Assignment to Censa: Shiratori shall assign to Censa all of Shiratori’s right, title, and interest in the [**] as detailed in Exhibit B.  Shiratori shall be solely responsible for any remuneration due to its personnel named as co-inventors in accordance with Section 5, including any remuneration required by the Japanese Patent Act or other applicable law. 

7.Ownership of [**]:  Upon the filing of non-provisional applications from the [**], Censa shall assign to Shiratori any Japanese national phase patent application of the Patent Property as detailed in Exhibit C, which  discloses various [**], as detailed in Exhibit C. Shiratori shall fully own such patent application in Japan and shall be responsible for any prosecution, maintenance and expenses (including the patent application filing expenses) thereof.

8.License to [**]:  Censa hereby grants to Shiratori a non-exclusive license to make, use, and sell products solely in Japan which would otherwise infringe claims directed to [**].  In consideration for the license grant by Censa, Shiratori shall reimburse Censa for [**]% of the cost associated with filing, prosecution and maintenance of claims directed to [**]. The non-exclusive license by Censa to Shiratori shall terminate immediately upon any Shiratori breach or termination of the License Agreement and/or this Amendment.  

2

Amendment No. 1 to License Agreement

9.Technology Transfer to Commercial Manufacturer. Shiratori will transfer all the technology and know-how necessary for Censa to manufacture Drug Substance as defined in the License Agreement.  Upon Censa’s request, Shiratori shall disclose the Licensed Technology as defined in the License Agreement to Censa’s designated third party manufacturer. Shiratori shall (a) designate qualified technical liaisons for communications with Censa's and its manufacturer’s technical staff, and (b) provide Censa’s and its manufacturer’s technical staff with technical assistance, including answering questions concerning the manufacture of the Product as Licensee reasonably requests.  Censa agrees to pay for reasonable and actual time spent by Shiratori for such technology transfer and support at a rate of $[**] per hour and in accordance with Section 3.7 of the Agreement and as agreed in advance by the Parties.

10.Miscellaneous. Except as modified and amended by this Amendment, the Agreement shall remain in full force and effect and in all other respects is ratified and confirmed by the parties. 

        
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their duly authorized representatives as of the date set forth in the introductory paragraph of this Amendment.

						
	CENSA PHARMACEUTICALS INC.

	SHIRATORI PHARMACEUTICAL CO., LTD
	By:  /s/ Jonathan Reis
	By:  /s/ Satoshi Shiratori

		
	

Jonathan Reis, CEO
	

Satoshi Shiratori

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Amendment No. 2 to License Agreement

        This Amendment No. 2 (“2nd Amendment”) dated May 28th, 2019 (the “Effective Date”) amends the License Agreement dated February 8, 2016 and Amendment No. 1 to the License Agreement dated July 31, 2017 (collectively the “Agreement”) between Shiratori Pharmaceutical Co., Ltd. having a principal place of business at 28F WBG Marive east 2-6-1 Nakase, Mihama-ku, Chiba-shi, Chiba 261-7090 JAPAN (“Shiratori”) and Censa Pharmaceuticals Inc., having a principal place of business at 65 Willian Street, Suite 200, Wellesley, MA 02481 (“Censa”).
        WHEREAS, the parties desire to modify the Agreement to reflect the understandings they have reached with respect to their relationship; and
        WHEREAS, capitalized terms used in this 2nd Amendment but not otherwise defined shall have the meaning ascribed to such terms in the Agreement.
        NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

Amendments. The Agreement is hereby amended as follows:

Sepiapterin [**]:  
1. Inventorship of the [**].  Shiratori’s personnel, as identified in Exhibit A, will be named as co-inventors for patent claims solely directed to the [**]. 

2. Assignment to Censa. Shiratori shall obtain assignments from Shiratori personnel, as identified in Exhibit A, and shall then assign to Censa of all of Shiratori’s right, title, and interest in the inventions of, or applications claiming priority to, [**].  Shiratori shall be solely responsible for any remuneration due to its personnel named as co-inventors in accordance with Section 1, including any remuneration required by the Japanese Patent Act or other applicable law.

3.  Section 7 of Amendment No. 1 to the License Agreement dated July 31, 2017 is hereby replaced in its entirety with the following: Censa shall file one or more Japanese national stage applications of, and/or Japanese divisional applications claiming priority to, [**].  Within [**] days after grant of each Japanese each, Censa will assign all right, title, and interest in the Japanese granted patent to Shiratori subject to Shiratori reimbursing Censa for the prosecution expenses (including the Japanese patent application filing expenses) thereof.  

4. Section 8 of Amendment No. 1 to the License Agreement dated July 31, 2017 is replaced in its entirety with the following:  Censa hereby grants to Shiratori a non-exclusive license to make, use, and sell products solely in Japan which would otherwise infringe claims directed to [**] in Japanese national stage applications of, and/or Japanese divisional applications claiming priority to [**].  In consideration for the license grant by Censa, Shiratori shall reimburse Censa for [**]% of the cost associated with filing, prosecution, and maintenance of claims directed to [**].  The non-exclusive license by Censa to Shiratori shall terminate immediately upon any Shiratori breach or termination of the License Agreement as amended.

[**]:
5. Section 1.14 of the License Agreement is hereby replaced in its entirety with the following: “Licensed Patents” means the following patent applications and patents owned or Controlled by Shiratori (a) as of the Effective Date or (b) arising at any time during the term of this Agreement solely by Shiratori or jointly by Shiratori and Censa, and all patents issuing from such patent applications and patents and otherwise arising from any improvement or enhancement of the manufacturing processes for or methods related to Sepiapterin, during the term of this Agreement: (i) [**] (ii) [**]; (iii) [**]; and (iv) certain other patents owned by Shiratori, as are reasonably necessary or useful for the manufacture, use, and sale of the Product 
in the Territory, including the patent applications and/or patents listed on Schedule 6.2(b) as amended, and all foreign counterparts of any or to any of the aforesaid patents and/or patent applications, and including, without limitation, as it may relate to any such patent applications and patents all provisional applications, substitutions, continuations, continuations-in-part, divisions, and renewals, all letters patent granted thereon, and all patents-of-addition, reissues, reexaminations and extensions or restorations by existing or future extension or restoration mechanisms, certificates, substitutions, confirmations, registrations, revalidations, additions, continuations, continuations-in-part, and divisions of any or to any of the aforesaid patent applications and patents.  Licensed Patents excludes Licensed Know-How.

6. Schedule 6.2(b) of the License Agreement is hereby replaced with the following:
        Licensed Patents
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[**]
        Granted Patent No. or Application No.
        [**]
        [**]

7. Assignment of [**]% Interest in [**]. Subject to consent from [**], Censa shall assign a [**]% interest in the inventions of [**] (“the Inventions”)  to Shiratori such that Censa will own a [**]% interest in the Inventions and Shiratori will own a [**]% interest in the Inventions.  Censa will control prosecution of any applications based on the Inventions and pay all associated costs with such prosecution, and shall by itself register its [**]% interest in the Inventions and Shiratori’s [**]% interest in the Inventions at the United States Patent and Trademark Office within [**] months after the conclusion of this 2nd Amendment. Shiratori shall provide any necessary documents and take any necessary actions requested by Censa for such registration.
In the event that Censa Discontinues (as defined herein), then at the written request of Shiratori, Censa shall terminate the [**]. “Discontinue(s)” shall mean when Censa or its assignee meets all of the following criteria at the same time: 1) it does not have any active pre-clinical or clinical studies of sepiapterin for a period of [**] months after the  last report or presentation on pre-clinical or clinical studies provided to Shiratori, 2) it is not marketing or selling sepiapterin, and 3) it does not have any regulatory submissions (e.g., IND, NDA, IMPD, or sNDA) relating to sepiapterin pending with either FDA,EMA or other regulatory authority.  

In the event of the termination of the [**], Censa shall provide any necessary documents and take any reasonable action requested by Shiratori in order that Shiratori will register its interests in the Inventions. 
In the event that Shiratori discontinues operations or files for bankruptcy, then Shiratori shall assign their [**]% interest in the inventions of [**] to Censa, its successor, or designated assignee.

8. Effect of the termination of the Agreement. Notwithstanding any articles of the Agreement, the provision of section 1,2,3,4 and 7 of this 2nd Amendment shall survive the termination of the Agreement.
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9. Miscellaneous. Except as modified and amended by this 2nd Amendment, the Agreement shall remain in full force and effect and in all other respects is ratified and confirmed by the parties.
IN WITNESS THEREOF, the parties have caused this 2nd Amendment to be executed by their duly authorized representatives as of the date set forth in the introductory paragraph of this 2nd Amendment.

CENSA PHARMACEUTICALS INC.          SHIRATORI PHARMACEUTICAL CO., LTD

/s/Jonathan Reis        /s/ Satoshi Shiratori
Jonathan Reis             Satoshi Shiratori
President & CEO            President

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Amendment No. 3 to License Agreement

        This Amendment No. 3 (“3rd  Amendment”) dated January 8th, 2020 (the “Effective Date”) amends the License Agreement dated February 8, 2016 and Amendment No. 1 to the License Agreement dated July 31, 2017 and  Amendment No. 2 to the License Agreement dated May 28th, 2019 (collectively the “Agreement”) between Shiratori Pharmaceutical Co., Ltd. having a principal place of business at 28F WBG Marive east 2-6-1 Nakase, Mihama-ku, Chiba-shi, Chiba 261-7090 JAPAN (“Shiratori”) and Censa Pharmaceuticals Inc., having a principal place of business at 65 Willian Street, Suite 200, Wellesley, MA 02481 (“Censa”).
        WHEREAS, the parties desire to modify the Agreement to reflect the understandings they have reached related to target dates for certain regulatory and commercial milestones; and
        WHEREAS, capitalized terms used in this 3rd Amendment but not otherwise defined shall have the meaning ascribed to such terms in the Agreement.
        NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

Amendments. The Agreement is hereby amended as follows:

1.Section 9.2b of the License Agreement is hereby replaced in its entirety with the following: 
By Shiratori.  Unless otherwise agreed between the Parties in writing, Shiratori may elect to terminate this Agreement upon sixty (60) days’ prior written notice to Censa in the event that Censa fails (i) to achieve Regulatory Approval in either the United States or European Union for at least one indication within eight (8) years from the Effective Date or (ii) to launch the Product in the United States or European Union within nine (9) years from the Effective Date.  Censa shall, as of the effectiveness of such termination, be relieved of any and all further obligations to make payments to Shiratori under this Agreement to the extent not accrued prior to such termination.  Censa also shall be relieved of any and all further obligations with respect to patents and patent applications in the Territory.

2.Section 5.1 of the License Agreement is hereby replaced in its entirety with the following: 
Royalty Rates.  In further consideration of the licenses granted in this Agreement, Censa shall pay to Shiratori royalties on the Product based on aggregate Net Sales of such Product on a country-by-country basis in the Territory in the amount of [**] percent ([**]%) ”Royalty Rate” or [**] percent ([**]%) “Reduced Royalty Rate”.

3.Section 5.2 of the License Agreement is hereby replaced in its entirety with the following: 

Term of Royalties.  Royalties under 5.1 shall be payable for each full calendar year during the term of this Agreement and on an aggregate pro rata basis for the first and last year of commercialization during the term of this Agreement if such first and last years are not comprised of a full twelve (12) months, as follows:
Royalty Rate shall be payable for the countries of the European Union, until expiration of the last-to-expire Licensed Patent Controlled by Shiratori covering the European Union if the making, having made, using, offering to sell, selling or importing of such Product by Censa, its Affiliates or its sublicensees (or the distributors of any of them) in the absence of this Agreement, would infringe one or more Valid Claim of the Licensed Patents in the European Union.  
Royalty Rate shall be payable for the United States, until the expiration of the last-to-expire Licensed Patent Controlled by Shiratori covering the United States if the making, having made, using, offering to sell, selling or importing of such Product by Censa, its Affiliates or its sublicensees (or the distributors of any of them) in the absence of this Agreement, would infringe one or more Valid Claim of the Licensed Patents in the United States.
Royalty Rate shall be payable for any other country in the Territory, until the expiration of the last-to-expire Licensed Patent Controlled by Shiratori covering the relevant country on a country-by-country basis if the making, having made, using, offering to sell, selling or importing of such Product by Censa, its Affiliates or its sublicensees (or the distributors of any of them) in the absence of this Agreement, would infringe one or more Valid Claim of the Licensed Patents in the relevant country.
(d)      Reduced Royalty Rate shall be payable for any country under Section 5.2 (a), 5.2 (b) or 5.2(c) for [**] years after the expiration of the last-to-expire Licensed Patent Controlled by Shiratori covering the relevant country on a country-by-country basis. 

2. Miscellaneous. Except as modified and amended by this 3rd Amendment, the Agreement shall remain in full force and effect and in all other respects is ratified and confirmed by the parties.

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IN WITNESS THEREOF, the parties have caused this 3rd Amendment to be executed by their duly authorized representatives as of the date set forth in the introductory paragraph of this 3rd Amendment.

CENSA PHARMACEUTICALS INC.          SHIRATORI PHARMACEUTICAL CO., LTD

/s/ Jonathan Reis                               /s/ Satoshi Shiratori
Jonathan Reis             Satoshi Shiratori
President & CEO            President

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Amendment No. 4 to License Agreement

        This Amendment No. 4 (the “4th Amendment”) dated April 9th, 2020 amends the License Agreement dated February 8, 2016 (the “Original Agreement”), as amended by Amendment No. 1 to the License Agreement dated July 31, 2017 (the “1st Amendment”), as further amended by Amendment No. 2 to the License Agreement dated May 28th, 2019 (the 2nd Amendment”) and as further amended by Amendment No. 3 to the License Agreement dated January 8th, 2020 (the “3rd Amendment”, together with the Original Agreement, 1st Amendment, and 2nd Amendment, the “Agreement”) by and between Shiratori Pharmaceutical Co., Ltd. having a principal place of business at 28F WBG Marive east 2-6-1 Nakase, Mihama-ku, Chiba-shi, Chiba 261-7090 JAPAN (“Shiratori”) and Censa Pharmaceuticals Inc., having a principal place of business at 65 Willian Street, Suite 200, Wellesley, MA 02481 (“Censa”).

        WHEREAS, the parties desire to modify the Agreement to reflect the understandings they have reached related to certain termination rights, royalty payments, and milestone payments; and
        WHEREAS, capitalized terms used in this 4th Amendment not otherwise defined shall have the meaning ascribed to such terms in the Agreement 
        NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

1.Section 9.2(b) of the Agreement, previously amended by the 3rd Amendment, is hereby deleted in its entirety and replaced with the following: 
(b)   By Shiratori.  Unless otherwise agreed between the Parties in writing, Shiratori may elect to terminate this Agreement upon sixty (60) days’ prior written notice to Censa in the event that Censa fails (i) to achieve Regulatory Approval in either the United States or European Union for at least one indication within ten (10) years from the Effective Date or (ii) to launch the Product in the United States or European Union within eleven (11) years from the Effective Date.  Censa shall, as of the effectiveness of such termination, be relieved of any and all further obligations to make payments to Shiratori under this Agreement to the extent not accrued prior to such termination.  Censa also shall be relieved of any and all further obligations with respect to patents and patent applications in the Territory. 
2.Section 5.2 (d) of the Agreement, previously amended by the 3rd Amendment, is hereby deleted it its entirety and replaced with the following: 
(d)  Reduced Royalty Rate shall be payable for any country under Section 5.2 (a), 5.2 (b) or 5.2(c) for [**] years after the expiration of the last-to-expire Licensed Patent Controlled by Shiratori covering the relevant country on a country-by-country basis. 

Amendment No. 4 to License Agreement

3.Section 4.1 of the Agreement, previously amended by 1st Amendment, is hereby amended as follows: 
The parties hereby acknowledge that the milestone payments set forth in Section 4.1(a), 4.1(b) and 4.1 (c) have been already made in accordance with the Agreement. The remaining milestone payments set forth in Sections 4.1(d)-(i) (“Milestones”) are hereby deleted in their entirety and replaced with the following:
(d) USD[**] – [**] upon [**]. 
(e) USD[**] – [**] upon [**].
(f) USD[**] – [**] upon [**].
(g) USD[**] - [**] upon [**]. 
(h)  USD[**] - [**] upon [**].
(i)  USD[**] - [**] upon [**].  
4. Miscellaneous: Except as modified and amended by this 4th Amendment, the Agreement shall remain in full force and effect and in all other respects is ratified and confirmed by the parties.

IN WITNESS THEREOF, the parties have caused this 4th Amendment to be executed by their duly authorized representatives as of the date set forth in the introductory paragraph of this 4th Amendment.

CENSA PHARMACEUTICALS INC.          SHIRATORI PHARMACEUTICAL CO., LTD

/s/ Jonathan Reis            /s/ Satoshi Shiratori    
Jonathan Reis             Satoshi Shiratori
President & CEO            President

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