Document:

2005 Amended and Restated Investor Rights Agreement

 EXHIBIT 4.4 
  

NOVACEA, INC. 
  
 2005 AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT 
  
 December 21, 2005 

 2005 AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT 
  
 This 2005 Amended and Restated Investor Rights Agreement (the
“Agreement”) is made as of December 21, 2005 among Novacea, Inc, a Delaware corporation (the “Company”), the stockholders listed on Exhibit A hereto (individually an
“Investor” and collectively the “Investors”), Oregon Health & Science University (“OHSU”), and University of Pittsburgh of the Commonwealth System of Higher Education
(“Pitt”). 
  
 RECITALS 

 
 The Company and certain of the Investors have entered into a 2005
Series C Preferred Stock Purchase Agreement (the “Purchase Agreement”) of even date herewith pursuant to which the Company wants to sell to such Investors and such Investors want to purchase from the Company shares of
the Company’s Series C Preferred Stock. One condition to such Investors’ obligations to purchase shares of the Company’s Series C Preferred Stock under the Purchase Agreement is that the Company and such Investors enter into this
Agreement in order to provide such Investors with certain rights to register shares of the Company’s Common Stock issuable upon conversion of the Series C Preferred Stock held by such Investors, certain rights to receive information
pertaining to the Company, and a right of first offer with respect to certain issuances by the Company of its securities. The Company wants to induce such Investors to purchase shares of Series C Preferred Stock pursuant to the Purchase
Agreement by agreeing to the terms and conditions set forth herein. 
  
 The Company had previously entered into that certain Amended and Restated Investor Rights Agreement dated December 16, 2003 among the Company and certain Investors (the “Prior Agreement”). The parties to the
Prior Agreement want to amend and restate the Prior Agreement in its entirety, and to accept the rights and restrictions created in this Agreement in lieu of the rights and restrictions contained in the Prior Agreement. Section 5.10 of the
Prior Agreement vested the authority to amend the Prior Agreement in the Company and the holders of sixty percent (60%) of the Registrable Securities (as defined in the Prior Agreement) and provided that any such amendment would be binding upon
all parties to the Prior Agreement. The holders of a majority of the Registrable Securities (as defined in the Prior Agreement) are entering into this Agreement, making this Agreement binding upon all of the parties to the Prior Agreement.

  
 AGREEMENT 
  
 The parties agree as follows: 
  
 1. Restrictions on Transferability; Registration Rights 
  
 1.1 Certain Definitions. As used in this
Agreement, the following terms have the following respective meanings: 
  
 “Board” means the board of directors of the Company. 
  

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 “Commission” means the Securities and Exchange Commission or any
other federal agency at the time administering the Securities Act. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar successor federal statute, and the rules and regulations thereunder, all as the same shall be in effect from
time to time. 
  
 “Form S-3 Initiating
Holders” means any Holder or Holders of the Registrable Securities then outstanding and who propose to register securities, the aggregate offering price of which, net of underwriting discounts and commissions, exceeds $1,000,000.

  
 “Holder” means
(i) any Investor holding Registrable Securities and (ii) any person holding Registrable Securities to whom the rights under this Agreement have been transferred in accordance with Section 1.11 hereof. 
  
 “Initiating Holders” means any
Holder or Holders who in the aggregate hold not less than twenty percent (20%) of the Registrable Securities then outstanding. 
  
 “IPO” means the first firmly underwritten public offering of the Common Stock of the Company to the general public
that is affected pursuant to a registration statement filed with, and declared effective by, the Commission under the Securities Act. 
  
 “New Securities” means any shares of capital stock of the Company, including Common Stock and Preferred Stock,
whether authorized or not, and rights, options, or warrants to purchase said shares of capital stock, and securities of any type whatsoever that are, or may become, convertible into capital stock; provided, however, that the term
“New Securities” does not include (i) the issuance of Common Stock upon the conversion of any then-outstanding bonds, debentures, notes or other evidences of indebtedness, and any warrants, shares or any other securities convertible
into, exercisable for, or exchangeable for Common Stock; (ii) the issuance of any Common Stock or bonds, debentures, notes or other evidences of indebtedness, and any warrants, shares or any other securities convertible into, exercisable for,
or exchangeable for Common Stock as a dividend on the Company’s stock; (iii) the issuance of shares of Common Stock (or options to purchase shares of Common Stock) to officers, employees, directors, advisors or consultants of the Company
under stock option or restricted stock purchase plans or agreements approved by the Board of Directors (not including the reissuance of shares repurchased by the Company from employees or consultants of the Company); (iv) the issuance of shares
of Common Stock or bonds, debentures, notes or other evidences of indebtedness, and any warrants, shares or any other securities convertible into, exercisable for, or exchangeable for Common Stock to lenders, financial institutions, equipment
lessors, or real estate lessors to the Company in connection with a bona fide borrowing or leasing transaction approved by the Board of Directors; (v) the issuance of shares of Common Stock or bonds, debentures, notes or other evidences of
indebtedness, and any warrants, shares or any other securities convertible into, exercisable for, or exchangeable for Common Stock in connection with development 
  

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 partnerships, licensing or collaboration arrangements, or similar transactions, in each case approved by
the Board of Directors; (vi) the issuance of Common Stock or bonds, debentures, notes or other evidences of indebtedness, and any warrants, shares or any other securities convertible into, exercisable for, or exchangeable for Common Stock
pursuant to the acquisition of another business by the Company by merger, purchase of substantially all of the assets or shares, or other reorganization whereby the Company or its stockholders own not less than a majority of the voting power of the
surviving or successor business, provided such transaction has been approved by the Board of Directors. 
  
 “Other Stockholders” means persons other than Holders who, by virtue of agreements with the Company, are entitled
to include their securities in certain registrations hereunder. 
  
 “Pro Rata Portion” means the ratio that (x) the sum of the number of shares of the Company’s Common Stock held by an Investor immediately prior to the issuance of New Securities,
assuming full exercise and/or conversion of the Shares and all Company securities exercisable and/or convertible into the Company’s Common Stock then held by such Investor, bears to (y) the sum of the total number of shares of the
Company’s Common Stock then outstanding, assuming full exercise and/or conversion of all Company securities exercisable and/or convertible into the Company’s Common Stock then outstanding. 
  
 The terms “register”,
“registered” and “registration” refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement. 
  
 “Registration Expenses” shall mean all expenses incurred by the Company in complying with Sections 1.3, 1.4, and 1.5 hereof, including, without limitation, all registration, qualification, listing and filing
fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, and the expense of any special audits incident to or required by any such registration (but excluding the compensation of regular
employees of the Company which shall be paid in any event by the Company), but shall not include Selling Expenses or fees and disbursements of counsel for the Holders. 
  
 “Registrable Securities” shall mean (i) shares of Common Stock issued or
issuable pursuant to the conversion of the Shares and (ii) any Common Stock of the Company issued as a dividend or other distribution with respect to or in exchange for or in replacement of the shares referenced in clause (i) above;
provided, however, that shares of Common Stock or other securities shall only be treated as Registrable Securities if and so long as they have not been (A) sold to or through a broker or dealer or underwriter in a public
distribution or a public securities transaction, (B) sold in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act under Section 4(1) thereof so that all transfer restrictions and restrictive
legends with respect thereto are removed upon the consummation of such sale, 
  

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 (C) transferred in a transaction pursuant to which the registration rights are not also assigned in
accordance with Section 1.11 hereof, or (D) with respect to each Holder, all such shares held by such Holder become eligible for sale under Rule 144 of the Securities Act (or any similar or successor rule) during any one ninety
(90) day period. 
  
 “Restricted
Securities” shall mean the securities of the Company required to bear the legend set forth in Section 1.2 hereof. 
  
 “Rule 144” means Rule 144 as promulgated by the Commission under the Securities Act, as such Rule may be amended
from time to time, or any similar successor rule that may be promulgated by the Commission. 
  
 “Rule 145” means Rule 145 as promulgated by the Commission under the Securities Act, as such Rule may be amended
from time to time, or any similar successor rule that may be promulgated by the Commission. 
  
 “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder or any similar federal statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time. 
  
 “Selling Expenses” shall mean all underwriting discounts, selling commissions and stock transfer taxes applicable
to the securities registered by the Holders and all fees and disbursements of counsel for any Holder. 
  
 “Shares” means the Company’s Series A-1 Preferred Stock, Series A-2 Preferred Stock, Series B Preferred
Stock, Series B-1 Preferred Stock, Series C Preferred Stock and Series C-1 Preferred Stock. 
  
 1.2 Restrictions. 
  
 (a) Each Holder agrees not to make any disposition of all or any portion of the Registrable Securities unless and until the transferee has agreed in
writing for the benefit of the Company to be bound by this Section 1.2 and Section 1.14, provided and to the extent such Sections are then applicable, and (i) there is then in effect a registration statement under the Securities Act
covering such proposed disposition and such disposition is made in accordance with such registration statement, or (ii) such Holder shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, and, if reasonably requested by the Company, such Holder shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition
will not require registration under the Securities Act. Notwithstanding the foregoing, no such registration statement or opinion of counsel shall be necessary for a transfer by a Holder which is (A) a partnership to its partners or retired
partners in accordance with partnership interests, (B) a limited liability company to its members or former members in accordance with their interest in the limited liability company, (C) a corporation to its shareholders in accordance
with their interests in the corporation, or (D) to the Holder’s family member or trust for the benefit of an individual Holder, provided in all 
  

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 cases enumerated in clauses (A) – (D) that the transferee is subject to the terms of this Section 1.2
and Section 1.14 as if such transferee were an original Holder hereunder. Each Holder consents to the Company making a notation on its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the
restrictions on transfer established in this Section 1.2. 
  
 (b) Each certificate representing Registrable Securities shall be stamped or otherwise imprinted with legends substantially in the following forms (in addition to any legend required under applicable state securities laws or the
Company’s charter documents): 
  
 “THE SHARES
REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SHARES MAY NOT BE SOLD, TRANSFERRED, OR PLEDGED IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE
COMPANY RECEIVES AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.” 
  
 “THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE
SHAREHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.” 
  
 (c) The Company shall promptly reissue unlegended certificates at the request of any Holder thereof if the Holder shall have obtained an opinion of counsel reasonably acceptable to the Company to the effect that the
securities proposed to be disposed of may lawfully be disposed of without registration, qualification, or legend. 
  
 1.3 Requested Registration. 
  
 (a) Request for Registration. If the Company shall receive from Initiating Holders a written request that the Company effect any registration,
qualification, or compliance, the Company will: 
  
 (i) promptly
deliver written notice of the proposed registration, qualification, or compliance to all other Holders; and 
  
 (ii) as soon as practicable, use its best efforts to effect such registration, qualification, or compliance (including, without limitation, the execution
of an undertaking to file post-effective amendments, appropriate qualification under applicable blue sky or other state securities laws, and appropriate compliance with applicable regulations issued under the Securities Act and any other
governmental requirements or regulations) as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Registrable Securities as are specified in such request, together with all or such portion of
the 
  

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 Registrable Securities of any Holder or Holders joining in such request as are specified in a written request delivered
to the Company within twenty (20) days after delivery of such written notice from the Company; 
  
 provided, however, that the Company shall not be obligated to take any action to effect any such registration, qualification, or compliance pursuant to this Section 1.3: 
  
 (A) Prior to the earlier of: (i) three (3) years
following the date of this Agreement, or (ii) six (6) months following the effective date of the IPO; 
  
 (B) After the Company has effected two (2) such registrations pursuant to this Section 1.3, such registrations have been
declared or ordered effective, and the securities offered pursuant to such registrations have been sold; 
  
 (C) During the period starting with the date thirty (30) days prior to the Company’s estimated date of filing of, and ending on
a date one hundred and eighty (180) days after the effective date of, a registration initiated by the Company; provided that the Company is actively employing in good faith all reasonable efforts to cause such registration
statement to become effective and that the Company’s estimate of the date of filing such registration statement is made in good faith; 
  
 (D) In any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting
such registration, qualification or compliance unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act; and 
  
 (E) If in the good faith judgment of the Board, such registration would be seriously detrimental to the
Company and the Board concludes, as a result, that it is essential to defer the filing of such registration statement at such time, and the Company thereafter delivers to the Initiating Holders a certificate, signed by the President or Chief
Executive Officer of the Company, stating that in the good faith judgment of the Board it would be detrimental to the Company or its stockholders for a registration statement to be filed in the near future, then the Company’s obligation to use
its best efforts to register, qualify, or comply under this Section 1.3 shall be deferred for a period not to exceed ninety (90) days from the delivery of the written request from the Initiating Holders; provided, however,
that the Company may not utilize this right more than twice in any twelve (12) month period; 
  
 Subject to the foregoing clauses (A) through (E), the Company shall file a registration statement covering the Registrable Securities so requested to be registered as soon as practicable after receipt of the
request or requests of the Initiating Holders. The registration statement filed pursuant to the request of the Initiating Holders may, subject to the provisions of Sections 1.3(c) and Section 1.13 hereof, include other securities of the Company
with respect to which registration rights have been granted, and may include securities being sold for the account of the Company. 
  

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 (b) Underwriting. The right of any Holder to registration pursuant to this Section 1.3 shall
be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. A Holder may elect to include in such underwriting all or a
part of the Registrable Securities held by such Holder. 
  
 (c)
Procedures. If the Company shall request inclusion in any registration pursuant to this Section 1.3 of securities being sold for its own account, or if other persons shall request inclusion in any registration pursuant to this
Section 1.3, the Initiating Holders shall, on behalf of all Holders, offer to include such securities in the underwriting and may condition such offer on their acceptance of the applicable provisions of this Section 1 (including without
limitation Section 1.14). The Company shall (together with all Holders or other persons proposing to distribute their securities through such underwriting) enter into and perform its obligations under an underwriting agreement in customary form
with the managing underwriter selected for such underwriting by a majority in interest of the Initiating Holders (which managing underwriter shall be reasonably acceptable to the Company). Notwithstanding any other provision of this
Section 1.3, if the managing underwriter advises the Initiating Holders in writing that marketing factors require a limitation of the number of shares to be underwritten, the number of shares to be included in the underwriting or registration
shall be allocated as set forth in Section 1.13. If any person who has requested inclusion in such registration as provided above disapproves of the terms of the underwriting, such person shall be excluded therefrom by written notice delivered
by the Company or the managing underwriter. Any Registrable Securities and/or other securities so excluded or withdrawn shall also be withdrawn from registration. 
  
 1.4 Registration on Form S-3. 
  
 (a) Qualification on Form S-3. After the IPO, the Company shall use its best efforts to qualify for registration on
Form S-3 or any comparable or successor form. To that end the Company shall register (whether or not required by law to do so) its Common Stock under the Exchange Act in accordance with the provisions of the Exchange Act following the effective
date of the first registration of any securities of the Company on Form S-1 or any comparable or successor form or forms. 
  
 (b) Request for Registration on Form S-3. After the Company has qualified for the use of Form S-3, if the Company shall receive from Form S-3
Initiating Holders a written request that the Company effect a registration on Form S-3 the Company will: 
  
 (i) promptly deliver written notice of the proposed registration to all other Holders; and 
  
 (ii) as soon as practicable, use its best efforts to effect such
registration, qualification, or compliance (including, without limitation, the execution of an undertaking to file post-effective amendments, appropriate qualification under applicable blue sky or other state securities laws, and appropriate
compliance with applicable regulations issued under the Securities Act and any other governmental requirements or regulations) as may be so 
  

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 requested and as would permit or facilitate the sale and distribution of all or such portion of such Registrable
Securities as are specified in such request, together with all or such portion of the Registrable Securities of any Holder or Holders joining in such request as are specified in a written request delivered to the Company within twenty (20) days
after delivery of such written notice from the Company; 
  
 provided,
however, that the Company shall not be obligated to take any action to effect any such registration, qualification, or compliance pursuant to this Section 1.4: 
  
 (A) After the sixth anniversary of the IPO; 
  
 (B) After the Company has effected two (2) such registrations pursuant to this Section 1.4 in any
given calendar year, such registrations have been declared or ordered effective and the securities offered pursuant to such registrations have been sold; 
  
 (C) During the period starting with the date thirty (30) days prior to the Company’s estimated date of filing of, and ending on
a date one hundred and eighty (180) days after the effective date of, a registration initiated by the Company; provided, that the Company is actively employing in good faith all reasonable efforts to cause such registration
statement to become effective and that the Company’s estimate of the date of filing such registration statement is made in good faith; 
  
 (D) In any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting
such registration, qualification, or compliance unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act; 
  
 (E) If in the good faith judgment of the Board, such registration would be seriously detrimental to the
Company and the Board concludes, as a result, that it is essential to defer the filing of such registration statement at such time, and the Company thereafter delivers to the Initiating Holders a certificate, signed by the President or Chief
Executive Officer of the Company, stating that in the good faith judgment of the Board it would be detrimental to the Company or its stockholders for a registration statement to be filed in the near future, then the Company’s obligation to use
its best efforts to register, qualify, or comply under this Section 1.4 shall be deferred for a period not to exceed sixty (60) days from the date of delivery of the written request from the Initiating Holders; provided,
however, that the Company may not utilize this right more than once in any twelve (12) month period. 
  
 (c) Underwriting; Procedure. If a registration requested under this Section 1.4 is for an underwritten offering, the provisions of Sections
1.3(b) and 1.3(c) shall apply to such registration. 
  

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 1.5 Company Registration. 
  
 (a) Notice of Registration. If the Company shall determine to register any of its securities, either for its own
account or the account of a security holder or holders other than (A) a registration pursuant to Sections 1.3 or 1.4 hereof, (B) a registration relating solely to employee benefit plans, (C) a registration relating solely to a Rule
145 transaction, or (D) a registration on any registration form that does not permit secondary sales, the Company will: 
  
 (i) promptly deliver to each Holder written notice thereof; and 
  

(ii) use its best efforts to include in such registration (and any related qualification under blue sky laws or other compliance), except as set forth
in Section 1.5(b) below, and in any underwriting involved therein, all the Registrable Securities specified in a written request or requests made by any Holder and delivered to the Company within ten (10) days after the written notice is
delivered by the Company. Such written request may include all or a portion of a Holder’s Registrable Securities. 
  
 (b) Underwriting; Procedures. If the registration of which the Company gives notice is for a registered public offering involving an underwriting,
the Company shall so advise the Holders as a part of the written notice given pursuant to Section 1.5(a)(i). In such event, the right of any Holder to registration pursuant to this Section 1.5 shall be conditioned upon such Holder’s
participation in such underwriting and the inclusion of Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company and the
other holders distributing their securities through such underwriting) enter into and perform their obligations under an underwriting agreement in customary form with the managing underwriter selected for such underwriting by the Company.
Notwithstanding any other provision of this Section 1.5, if the managing underwriter determines that marketing factors require a limitation of the number of shares to be underwritten, the managing underwriter may exclude all Registrable
Securities from, or limit the number of Registrable Securities to be included in, the registration and underwriting. The Company shall so advise all holders of securities requesting registration, and the number of shares of securities that are
entitled to be included in the registration and underwriting shall be allocated as set forth in Section 1.13. If any person who has requested inclusion in such registration as provided above disapproves of the terms of the underwriting, such
person shall be excluded therefrom by written notice delivered by the Company or the managing underwriter. Any Registrable Securities and/or other securities so excluded or withdrawn shall also be withdrawn from registration. 
  
 (c) Right to Terminate Registration. The Company shall have the right
to terminate or withdraw any registration initiated by it under this Section 1.5 prior to the effectiveness of such registration, whether or not any Holder has elected to include securities in such registration. 
  
 1.6 Registration Procedures. In the case of each registration,
qualification, or compliance effected by the Company pursuant to this Section 1, the Company will keep each Holder advised in writing as to the initiation of each registration, qualification, and compliance and as to the completion thereof and,
at its expense, the Company will use its best efforts to: 
  

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 (a) Prepare and file with the Commission a registration statement with respect to such securities and
use its best efforts to cause such registration statement to become and remain effective for at least ninety (90) days or until the distribution described in the registration statement has been completed, whichever occurs first;
provided, however, that (i) such 90-day period shall be extended for a period of time equal to the period the Holder refrains from selling any securities included in such registration at the request of an underwriter of common
stock or other securities of the Company, and (ii) in the case of any registration of Registrable Securities on Form S-3 which are intended to be offered on a continuous or delayed basis, such 90-day period shall be extended, if necessary, up
to one hundred eighty (180) days to keep the registration statement effective until all such Registrable Securities are sold, however in no event longer than one year from the effective date of the registration statement and provided that if
Rule 415, or any successor rule under the Securities Act, permits an offering on a continuous or delayed basis, and provided further that if applicable rules under the Securities Act governing the obligation to file a post-effective amendment
permit, in lieu of filing a post-effective amendment which (A) includes any prospectus required by Section 10(a)(3) of the Securities Act or (B) reflects facts or events representing a material or fundamental change in the information
set forth in the registration statement, the incorporation by reference of information required to be included in (A) and (B) above shall be contained in periodic reports filed pursuant to Section 13 or 15(d) of the Exchange Act in
the registration statement; 
  
 (b) Furnish to the Holders
participating in such registration and to the underwriters of the securities being registered such reasonable number of copies of the registration statement, preliminary prospectus, final prospectus, and such other documents as such underwriters may
reasonably request in order to facilitate the public offering of such securities; 
  
 (c) Prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection with such registration statements as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement; 
  
 (d) Notify each seller of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be
delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not misleading or incomplete in the light of the circumstances then existing, and at the request of any such seller, prepare and furnish to such seller a reasonable number of
copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchaser of such shares, such prospectus shall not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in the light of the circumstances then existing; 
  
 (e) Use its best efforts to register and qualify the securities covered by such registration statement under such other securities or blue sky laws of
such jurisdictions as 
  

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 shall be reasonably requested by the Holders, provided that the Company shall not be required in connection therewith or
as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions; 
  
 (f) Cause all such Registrable Securities to be listed on each securities exchange on which similar securities issued by the Company are then listed;

  
 (g) Provide a transfer agent and registrar for all
Registrable Securities and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration; 
  
 (h) Use its best efforts to furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this Section 1, on
the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 1, if such securities are being sold through underwriters, or, if such securities are not being sold
through underwriters, on the date that the registration statement with respect to such securities becomes effective, (i) an opinion, dated such date, of the counsel representing the Company for the purposes of such registration, in form and
substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities and (ii) a letter, dated such date, from the
independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the
Holders requesting registration of Registrable Securities (to the extent the then-applicable standards of professional conduct permit said letter to be addressed to the Holders). 
  
 (i) In the event of any underwritten public offering, enter into and perform its obligations under an underwriting
agreement, in usual and customary form, with the managing underwriter(s) of such offering. 
  
 1.7 Information by Holder. The Holder or Holders of Registrable Securities included in any registration shall furnish to the Company such information regarding such Holder or Holders, the Registrable Securities
held by them, and the distribution proposed by such Holder or Holders as the Company may request in writing and as shall be required in connection with any registration, qualification, or compliance referred to in this Section 1, and the
refusal to furnish such information by any Holder or Holder shall relieve the Company of its obligations in this Section 1 with respect to such Holder or Holders. Furthermore, the Company shall have no obligation with respect to any
registration requested pursuant to Section 1.3 or Section 1.4 of this Agreement if, as a result of the application of the preceding sentence, the number of shares or the anticipated aggregate offering price of the Registrable Securities to
be included in the registration does not equal or exceed the number of shares or the anticipated aggregate offering price required to originally trigger the Company’s obligation to initiate such registration as specified in the definition of
“Initiating Holders” or “Form S-3 Initiating Holders,” whichever is applicable. 
  

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 1.8 Indemnification. 
  
 (a) To the extent permitted by law, the Company will indemnify each Holder, each of its officers, directors, partners,
legal counsel, and accountants, and each person controlling such Holder within the meaning of Section 15 of the Securities Act, with respect to which registration, qualification, or compliance has been effected pursuant to this Section 1,
and each underwriter, if any, and each person who controls any underwriter within the meaning of Section 15 of the Securities Act, against all expenses, claims, losses, damages, or liabilities (or actions, proceedings, or settlements in respect
thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any registration statement, prospectus, offering circular, or other document (including any related registration statement,
notification, or the like), or any amendment or supplement thereto, incident to any such registration, qualification, or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or any violation by the Company of the Securities Act or any rule or regulation promulgated under the Securities Act applicable to the
Company in connection with any such registration, qualification, or compliance, and the Company will reimburse each such Holder, each of its officers, directors, partners, legal counsel, and accountants, and each person controlling such Holder, each
such underwriter and each person who controls any such underwriter, for any legal and any other expenses reasonably incurred in connection with investigating, preparing, defending, or settling any such claim, loss, damage, liability, or action, as
such expenses are incurred, provided that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability, or expense arises out of or is based on any untrue statement or omission or alleged untrue
statement or omission, made in reliance upon and in conformity with written information furnished to the Company by such Holder, controlling person, or underwriter and stated to be specifically for use therein. It is agreed that the indemnity
agreement contained in this Section 1.8 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be
unreasonably withheld). 
  
 (b) To the extent permitted by law,
each Holder will, if Registrable Securities held by such Holder are included in the securities as to which such registration, qualification, or compliance is being effected, indemnify the Company, each of its directors, officers, partners, legal
counsel, and accountants, and each underwriter, if any, of the Company’s securities covered by such a registration statement, each person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act,
and each other such Holder and Other Stockholder, each of their officers, directors, and partners, and each person controlling such Holder or Other Stockholder within the meaning of Section 15 of the Securities Act, against all claims, losses,
damages, and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement, prospectus, offering circular, or other document,
or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and such Holders, Other Stockholders, directors,
officers, partners, legal counsel, and accountants, persons, underwriters, or control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability, or action,
as 
  

 12 

 such expenses are incurred, in each case to the extent, but only to the extent, that such untrue statement (or alleged
untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular, or other document in reliance upon and in conformity with written information furnished to the Company by such Holder and
stated to be specifically for use therein, provided, however, that the obligations of such Holder hereunder shall not apply to amounts paid in settlement of any such claims, losses, damages, or liabilities (or actions in respect thereof) if such
settlement is effected without the consent of such Holder (which consent shall not be unreasonably withheld); and provided that that in no event shall any indemnity under this Section 1.8 exceed the net proceeds received by such Holder in such
offering. 
  
 (c) Each party entitled to indemnification under
this Section 1.8 (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge
of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense
of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such defense at such party’s expense, and provided further that the
failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 1 unless the failure to give such notice is materially prejudicial to an Indemnifying Party’s
ability to defend such action. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as
an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the
claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with the defense of such claim and litigation resulting therefrom. 
  
 (d) If the indemnification provided for in this Section 1.8 is held by
a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any claim, loss, damage, liability, or expense referred to therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder,
shall contribute to the amount paid or payable by such Indemnified Party as a result of such claim, loss, damage, liability, or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and
the Indemnified party on the other in connection with the statements or omissions that resulted in such claim, loss, damage, liability, or expense, as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party
and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact related to information supplied by the Indemnifying
Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. The Company and the Holders agree that it would not be just and equitable if
contribution pursuant to this Section 1.8 were based solely upon the number of entities from whom contribution was requested or by any other method of allocation which does not take account of the equitable considerations referred to above. In
no event shall any contribution by a Holder under this Section 1.8 exceed the net proceeds received by such Holder in such offering. 
  

 13 

 (e) The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages, and
liabilities referred to above in this Section 1.8 shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim, subject to the
provisions of Section 1.8(c). No person guilty of fraudulent misrepresentation (within the meaning of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 
  
 (f) Notwithstanding the foregoing, to the extent that the provisions on
indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

  
 (g) The obligations of the Company and Holders under this
Section 1.8 shall survive the completion of any offering of Registrable Securities in a registration statement. 
  
 1.9 Expenses of Registration. All Registration Expenses shall be borne by the Company; provided, however, that if the Holders bear
the Registration Expenses for any registration proceeding begun pursuant to Section 1.3 and subsequently withdrawn by the Holders registering shares therein, such registration proceeding shall not be counted as a requested registration pursuant
to Section 1.3. Furthermore, in the event that a withdrawal by the Holders is based upon material adverse information relating to the Company that is different from the information known or available (upon request from the Company or otherwise)
to the Holders requesting registration at the time of their request for registration under Section 1.3, such registration proceeding shall not be counted as a requested registration pursuant to Section 1.3, even though the Holders do not
bear the Registration Expenses for such registration. All Selling Expenses relating to securities registered on behalf of the Holders shall be borne by the holders of the registered securities included in such registration pro rata on the basis of
the number of shares so registered. 
  
 1.10 Rule 144
Reporting. With a view to making available the benefits of certain rules and regulations of the Commission which may at any time permit the sale of the Restricted Securities to the public without registration after such time as a public market
exists for the Common Stock of the Company, the Company agrees to use its best efforts to: 
  
 (a) Make and keep public information available, as those terms are understood and defined in Rule 144, at all times after the effective date that the Company becomes subject to the reporting requirements of the
Securities Act or the Exchange Act; 
  
 (b) File with the
Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements); and 
  

 14 

 (c) So long as a Holder owns any Restricted Securities, to furnish to the Holder forthwith upon request
a written statement by the Company as to its compliance with the reporting requirements of Rule 144 and of any other reporting requirements of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting
requirements), a copy of the most recent annual or quarterly report of the Company, and such other reports and documents of the Company and other information in the possession of or reasonably obtainable by the Company as a Holder may reasonably
request in availing itself of any rule or regulation of the Commission allowing a Holder to sell any such securities without registration. 
  
 1.11 Transfer of Registration Rights. The rights to cause the Company to register securities granted to any party hereto under Section 1 may
be assigned by a Holder only to (i) a transferee or assignee of not less than Five Hundred Thousand (500,000) shares of Registrable Securities (as appropriately adjusted for stock splits and the like), or (ii) another Holder who
already possesses registration rights as set forth herein, or (iii) a transferee or assignee acquiring at least ten percent (10%) of the outstanding stock of the Company, provided that the Company is given written notice at the time of or
within a reasonable time after said assignment, stating the name and address of the transferee or assignee and identifying the securities with respect to which such registration rights are being assigned, and, provided further, that the assignee of
such rights assumes in writing the obligations of such Holder under this Section 1. Notwithstanding the foregoing, no such assignment requirement shall be necessary for an assignment by a Holder which is (A) a partnership to its partners
or retired partners in accordance with partnership interests, (B) a limited liability company to its members or former members in accordance with their interest in the limited liability company, (C) a corporation to its shareholders in
accordance with their interests in the corporation, (D) to the Holder’s family member or trust for the benefit of an individual Holder or (E) an affiliate of Holder, provided, that, in each case, the assignee of such rights assumes in
writing the obligations of the assigning Holder under this Section 1. 
  
 1.12 Limitations on Subsequent Registration Rights. From and after the date hereof, the Company shall not, without the prior written consent of Holders who in the aggregate hold more than sixty percent
(60%) of the then outstanding Registrable Securities, enter into any agreement granting any holder or prospective holder of any securities of the Company registration rights the terms of which are more favorable than the registration rights
granted to Holders hereunder. 
  
 1.13 Procedure for
Underwriter Cutbacks. In any circumstance in which all of the Registrable Securities and other shares of Common Stock of the Company with registration rights (the “Other Shares”) requested to be included in a registration
on behalf of Holders or Other Stockholders cannot be so included as a result of limitations of the aggregate number of shares of Registrable Securities and Other Shares that may be so included, the number of shares of Registrable Securities and
Other Shares that may be so included shall be allocated among the Holders and Other Stockholders requesting inclusion of shares pro rata based upon the total number of Registrable Securities or Other Shares held by such Holders and Other
Stockholders, respectively; provided, however, that such allocation shall not operate to reduce the aggregate 
  

 15 

 number of Registrable Securities or Other Shares to be included in such registration if any Holder or Other Stockholder
does not request inclusion of the maximum number of shares of Registrable Securities or Other Shares allocated to such Holder or Other Stockholder pursuant to the above-described procedure, in which case the remaining portion of his allocation shall
be reallocated among those requesting Holders and Other Stockholders whose allocations did not satisfy their requests pro rata on the basis of total number of shares of Registrable Securities and Other Shares held by such Holders and Other
Stockholders, and this procedure shall be repeated until all shares of Registrable Securities and Other Shares which may be included in the registration on behalf of the Holders and Other Stockholders have been so allocated. The Company shall not
limit the number of shares of Registrable Securities to be included in a registration pursuant to this Agreement in order to include shares of stock issued to founders of the Company or to employees, officers, directors, or consultants pursuant to
the Company’s equity incentive plans, or in the case of registrations under Sections 1.3 or 1.4 hereof, in order to include in such registration securities registered for the Company’s own account. Notwithstanding the foregoing, the number
of shares of Registrable Securities included in a registration pursuant to this Agreement shall not be reduced below thirty percent (30%) of the securities included in such registration unless such offering is the IPO, in which case the selling
stockholders may be excluded entirely if the underwriters make the determination described above, and no other stockholder’s securities are included. 
  
 1.14 Standoff Agreement. Each Holder agrees in connection with any registration of the Company’s securities (other than a registration of
securities in a Rule 145 transaction or with respect to an employee benefit plan) that, upon request of the underwriters managing any underwritten offering of the Company’s securities, not to sell, make any short sale of, loan, pledge or
otherwise hypothecate or encumber, grant any option for the purchase of, or otherwise dispose of any Registrable Securities (other than those included in the registration) without the prior written consent of such underwriters, as the case may be,
for such period of time (not to exceed one hundred eighty (180) days from the effective date of such registration) in the case of a registration for the Company’s initial public offering as may be requested by such managing underwriters;
provided, that all officers and directors of the Company, and Eckard Weber, M.D., enter into similar agreements. 
  
 1.15 Termination of Rights. The rights of any particular Holder to cause the Company to register securities under Sections 1.3, 1.4, and 1.5
shall terminate with respect to such Holder on the earlier of (a) the six (6) year anniversary of the effective date of the Company’s IPO, (b) such time as Rule 144 is available for the sale of all of such Holder’s shares
during a three (3)-month period without registration, and (c) upon the termination of the entire Agreement upon a change of control of the Company, as provided in Section 5.12. 
  
 2. Right of First Refusal 
  

2.1 Right of First Refusal. 
  
 (a) Right of First Refusal to Apax. Subject to the terms and conditions contained in this Section 2.1, the Company hereby grants Apax
Partners, Inc. (“Apax”) the right of first refusal to purchase up to two (2) times Apax’s Pro Rata Portion of any New Securities if 
  

 16 

 such New Securities have a purchase price of at least $2.50 per share (as adjusted for any stock splits, consolidations
and the like), which the Company may, from time to time, propose to issue and sell. In the event Apax elects to purchase a portion of such New Securities pursuant to this Section 2.1(a) in excess of its Pro Rata Portion, such excess amount
shall reduce equally (i) the amounts of New Securities purchased by the Investors (other than Apax) pursuant to Section 2.1(b), and (ii) the amounts of New Securities purchased by any other purchaser of such New Securities (the
“New Purchasers”); provided, however, that the if the New Purchasers refuse to have their investment amounts reduced in accordance with this Section, the amount of New Securities purchased by the Investors (other than Apax)
pursuant to Section 2.1(b) shall be further reduced pro-rata in order to permit Apax to exercise it’s rights under this Section 2.1(a). 
  
 (b) Right of First Refusal to all Investors. Subject to the terms and conditions contained in this Section 2.1, the Company hereby grants to
each Investor the right of first refusal to purchase such Investor’s Pro Rata Portion of any New Securities which the Company may, from time to time, propose to issue and sell; provided however, that such Investor’s Pro Rata Portion is
subject to reduction as set forth in Section 2.1(a) above. 
  
 (c) Notice of Right. In the event the Company proposes to undertake an issuance of New Securities, it shall give each Investor written notice of its intention, describing the type of New Securities and the price and terms upon which
the Company proposes to issue the same. Each Investor shall have twenty (20) days from the date of delivery of any such notice to agree to purchase up to such Investor’s Pro Rata Portion of such New Securities, for the price and upon the
terms specified in the notice, by delivering written notice to the Company and stating therein the quantity of New Securities to be purchased. 
  
 (d) Lapse and Reinstatement of Right. The Company shall have sixty (60) days following the twenty (20)-day period described in
Section 2.1(c) to sell or enter into an agreement (pursuant to which the sale of New Securities covered thereby shall be closed, if at all, within thirty (30) days from the date of said agreement) to sell the New Securities with respect to
which the Investors’ right of first refusal was not exercised, at a price and upon terms no more favorable to the purchasers of such securities than specified in the Company’s notice. In the event the Company has not sold the New
Securities or entered into an agreement to sell the New Securities within said sixty (60)-day period (or sold and issued New Securities in accordance with the foregoing within thirty (30) days from the date of said agreement), the Company shall
not thereafter issue or sell any New Securities without first offering such securities to the Investors in the manner provided above. 
  
 2.2 Assignment of Right of First Refusal. The right of first refusal granted hereunder may not be assigned or transferred, except to (i) a
transferee or assignee of not less than Five Hundred Thousand (500,000) shares of Registrable Securities (as appropriately adjusted for stock splits and the like), or (ii) another Holder who already possesses registration rights as set
forth herein, or (iii) a transferee or assignee acquiring at least ten percent (10%) of the outstanding stock of the Company, provided that the Company is given written notice at the time of or within a reasonable time after said
assignment, stating the name and address of the transferee or assignee and identifying the securities with respect to which such right is being assigned, and, provided further, that the assignee of such right assumes in writing the obligations

  

 17 

 of such Holder under this Section 2. Notwithstanding the foregoing, no such assignment requirement shall be
necessary for an assignment by a Holder which is (A) a partnership to its partners or retired partners in accordance with partnership interests, (B) a limited liability company to its members or former members in accordance with their
interest in the limited liability company, (C) a corporation to its shareholders in accordance with their interests in the corporation, (D) to the Holder’s family member or trust for the benefit of an individual Holder or (E) an
affiliate of Holder, provided, that, in each case, the assignee of such rights assumes in writing the obligations of the assigning Holder under this Agreement. 
  

2.3 Termination of Right of First Refusal. The right of first refusal granted under Section 2.1 of this Agreement shall expire upon, and
shall not be applicable to, the IPO, and shall terminate with respect to any Non-Participating Investor pursuant to Section 4 hereof. 
  
 3. Affirmative Covenants of the Company. The Company hereby covenants and agrees, so long as any Investor holds Registrable Securities, as follows:

  
 3.1 Financial Information. So long as an Investor is a
holder of not less than Two Million (2,000,000) Shares (as adjusted for any stock splits, consolidations and the like) (such Investor, a “Major Investor”), the Company will furnish to such Major Investor the following
reports accompanied by a certificate of an officer of the Company in a form provided by Apax: 
  
 (a) As soon as practicable after the end of each fiscal year, and in any event within ninety (90) days thereafter, consolidated balance sheets of
the Company and its subsidiaries, if any, as of the end of such fiscal year, and consolidated statements of income and cash flows of the Company and its subsidiaries, if any, for such year, prepared in accordance with generally accepted accounting
principles consistently applied and setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and certified by independent public accountants of national standing selected by the Company;

  
 (b) As soon as practicable, but in any event within
forty-five (45) days after the end of each of the first three (3) quarters of each fiscal year of the Company, consolidated balance sheets of the Company and its subsidiaries, if any, as of the end of such quarterly period, and
consolidated statements of income and cash flows of the Company and its subsidiaries, if any, for such quarterly period, prepared in accordance with generally accepted accounting principles consistently applied and setting forth in each case in
comparative form the figures for the corresponding quarterly periods of the previous fiscal year, subject to changes resulting from normal year-end audit adjustments, all in reasonable detail and certified by the principal financial or accounting
officer of the Company, except such financial statements need not contain the notes required by generally accepted accounting principles; 
  
 (c) As soon as practicable after the end of each calendar month, and in any event within thirty (30) days thereafter, consolidated balance sheets of
the Company and its subsidiaries, if any, as of the end of each calendar month, and consolidated statements of income and cash flow for such period and for the current fiscal year to date; 
  

 18 

 3.2 Operating Plan and Budget. So long as an Investor is a Major Investor, as soon as practicable
upon approval or adoption by the Board, any in any event no later than thirty (30) days prior to the beginning of each fiscal year, the Company will furnish such Major Investor with the Company’s budget and operating plan (including
projected balance sheets and profit and loss and cash flow statements) for such fiscal year. 
  
 3.3 Inspection. So long as an Investor is a Major Investor, the Company shall permit such Major Investor, at such Major Investor’s expense, to visit and inspect the Company’s properties, to examine
its books of account and other records (and make copies and take extracts therefrom), and to discuss the Company’s affairs, finances and accounts with its officers, all at such reasonable times as may be requested by the Investor. 

 
 3.4 Vesting of Stock. Unless determined otherwise by the Board or a
committee thereof, all shares of the Company’s Common Stock, or options to purchase such Common Stock, issued after the date of this Agreement to employees, officers, directors, consultants and other service providers of the Company shall vest
according to the following schedule: 25% of the shares shall vest upon the completion of one (1) year of service and the remaining 75% of the shares shall vest in thirty six (36) equal monthly installments. 
  
 3.5 Assignment of Right of First Refusal on Common Stock. With respect
to any right of first refusal on sales or transfers held by the Company on shares of the Common Stock or options issued to purchase such Common Stock, in the event any holder of such shares or options elects to sell shares of Common Stock or options
covered by such right of first refusal and the Company elects not to or is unable to exercise its right of first refusal, the Company shall assign its right of first refusal on the transfer of such shares or options to the Investors. The procedures
for handling the assigned right of first refusal shall be substantially similar to the procedures set forth in Section 2 above. 
  
 3.6 Assignment of Right of First Refusal on OHSU Stock. Pursuant to Section 1 of the Stock Restriction Agreement, dated as of June 27,
2001, by and between the Company and OHSU, the Company holds a right of first refusal on transfers of certain shares of the Common Stock of the Company held by OHSU. This right is assignable. The Company covenants that if OHSU elects to sell shares
of Common Stock covered by the right of first refusal and the Company elects not to or is unable to exercise its right of first refusal, the Company shall assign its right of first refusal on the transfer of the shares held by OHSU to the Investors.
The procedures for handling the assigned right of first refusal shall be substantially similar to the procedures set forth in Section 2 above. 
  
 3.7 Assignment of Right of First Refusal on Pitt Stock. Pursuant to Section 2(i) of that certain Stock Issuance Agreement, dated as of
July 1, 2001, by and between the Company and Pitt, the Company holds a right of first refusal on transfers of certain shares of the Common Stock of the Company held by Pitt. This right is assignable. The Company covenants that if Pitt elects to
sell shares of Common Stock covered by the right of first refusal and the Company elects not to or is unable to exercise its right of first refusal, the Company shall assign its right of first refusal on the transfer of the shares held by Pitt to
the Investors. The procedures for handling the assigned right of first refusal shall be substantially similar to the procedures set forth in Section 2 above. 
  

 19 

 3.8 Qualified Small Business Stock. The Company covenants and agrees that it will use all
reasonable efforts to cause the Shares (and the shares of Common Stock issued or issuable upon conversion of thereof) held by the Holders to continue to qualify as “Qualified Small Business Stock” as defined in Section 1202(c) of the
Internal Revenue Code of 1986, as amended (the “Code”). Further, the Company covenants and agrees, on the reasonable request of any Holder, to conduct a reasonable investigation into the question of whether the Shares (and the
shares of Common Stock issued or issuable upon conversion of thereof) held by the Holders, remain “qualified small business stock” within the meaning of the Code, and to thereafter deliver to such Holder a duly executed Certificate of
Representations in the form attached hereto as Exhibit B (the “QSBS Certificate”). If the Company is unable to deliver an executed QSBS Certificate because representation statement 2 in the QSBS Certificate is inaccurate, the
Company covenants and agrees to deliver a statement explaining the reasons for such inaccuracy. 
  
 3.9 Termination of Covenants. The covenants set forth in this Section 3 shall terminate and be of no further force or effect after the date on
which the Company is required to file reports with the Commission pursuant to Section 13 or 15(d) of the Exchange Act. 
  
 3.10 Company Confidential Information. Notwithstanding anything to the contrary in this Section 3, no Investor by reason of this Agreement
shall have access to any trade secrets or classified information of the Company. Each Investor agrees to hold in confidence and trust and not to misuse or disclose any confidential information provided pursuant to this Section 3. 
  
 3.11 Directors’ Liability and Indemnification. The Company’s
Restated Charter (as defined below) and Bylaws shall provide (a) for elimination of the liability of director to the maximum extent permitted by law and (b) for indemnification of directors for acts on behalf of the Company to the maximum
extent permitted by law. In addition, the Company shall enter into and use its best efforts to at all times maintain indemnification agreements substantially in the form attached as Exhibit C hereto with each of its directors to indemnify
such directors and their respective funds to the maximum extent permissible under applicable law. 
  
 3.12 Director and Officer Insurance. The Company will use its best efforts to obtain and maintain in full force and effect director and officer
liability insurance, which shall include the respective funds of the directors. 
  
 3.13 Proprietary Information and Inventions Agreement. The Company shall require all employees and consultants to execute and deliver a Proprietary Information and Inventions Agreement substantially in a form
approved by the Company’s counsel or Board of Directors. Such agreement shall contain provisions with respect to confidentiality, corporate ownership of inventions and innovations during employment and non-competition and non-solicitation of
employees and customers during and after employment. 
  
 3.14
Compensation Committee. The Company covenants and agrees to use its best efforts to cause the member of the Board designated by Apax (the “Apax Designee”) to be a member of the Board’s Compensation Committee at
all times that such Apax Designee is a member of the Board. 
  

 20 

 4. Waiver of Right of First Refusal and Consent to Conversion. 
  
 4.1 Waiver of Right of First Refusal and Consent to Conversion.
Unless the holders of sixty percent (60%) of the Preferred Stock deem otherwise or the Board requests a different investment commitment, at any time following the initial issuance of the Company’s Series C Preferred Stock, if (a) the
Investors are entitled to exercise the right of first refusal set forth in Section 2.1(b) with respect to an equity financing of the Company in which one or more institutional investors who, prior to such financing, do not own shares of the
capital stock of the Company, invest a minimum of Five Million Dollars ($5,000,000) (a “Qualifying Financing”), and (b) a Major Investor does not exercise such Major Investor’s right of first refusal and acquire at
least (i) one half (1/2) of its Pro Rata Portion of the New Securities offered in such Qualifying Financing, or (ii) such lesser number of New Securities which have an aggregate purchase price equal to or in excess of one half of the
amount paid by such Major Investor for the shares of Series C Preferred Stock purchased by such Major Investor pursuant to the Purchase Agreement (as such number may be reduced pursuant to the last two sentences of this Section 4.1) (such Major
Investor, a “Non-Participating Investor”, and such minimum amount, the “Threshold Amount”), then the Non-Participating Investor (A) permanently waives such Investor’s right of first refusal
set forth in Section 2 with respect to any future offerings of New Securities, and (B) hereby agrees and consents to the conversion of all shares of Series B Preferred Stock held by such Major Investor into shares of Series B-1 Preferred
Stock, and all shares of Series C Preferred Stock held by such Major Investor into shares of Series C-1 Preferred Stock, which conversion shall be effective, without any further action of such Major Investor, immediately prior to the closing of such
Qualifying Financing. Notwithstanding the foregoing, in the event that any Major Investor acquires more than the Threshold Amount applicable to such Major Investor in a Qualifying Financing, then any amount in excess of such Major Investor’s
Threshold Amount may reduce any Non-Participating Investor’s Threshold Amount, provided that all other Major Investors consent to such reduction. In no event shall the Major Investors be required to invest, collectively, more than Seventeen
Million Three Hundred Eighty Thousand Dollars ($17,380,000) in a Qualifying Financing under this Section 4.1 and the Threshold Amount applicable to each Major Investor shall be reduced proportionately to give effect to this sentence.

  
 4.2 Transfer of Shares. The waiver provided for in this
Section 4 shall bind any purchaser, assignee, transferee or pledgee of the subject shares of Preferred Stock. Each applicable Investor agrees that, prior to selling, assigning, transferring or pledging the subject shares of Preferred Stock to
any person or entity, such Investor will ensure that such transferee shall have delivered to the Company a written agreement to be bound by the provisions of this Section 4. 
  
 4.3 Termination. The provisions of this Section 4 shall terminate and be of no further force and effect on the
date on which the Company raises a minimum of Thirty Million Dollars ($30,000,000) in one or more equity financing transactions following the date hereof. 
  

 21 

 5. Miscellaneous. 
  
 5.1 Governing Law. This Agreement shall be governed in all respects by the laws of the State of California without
regard to choice of laws or conflict of laws provisions thereof. 
  
 5.2 Successors and Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors, and administrators of the parties hereto. Nothing
in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as
expressly provided by this Agreement. 
  
 5.3 Entire
Agreement. This Agreement and the other documents delivered pursuant hereto constitute the full and entire understanding and agreement among the parties with regard to the subjects hereof and thereof. Neither this Agreement nor any term hereof
may be amended, waived, discharged or terminated other than by a written instrument signed by the party against whom enforcement of any such amendment, waiver, discharge or termination is sought, unless otherwise provided. 
  
 5.4 Notices, Etc. All notices and other communications required or
permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, return receipt requested, or otherwise delivered by hand or by messenger, addressed (a) if to an Investor, at such Investor’s
address set forth on Exhibit A, or at such other address as such Investor shall have furnished to the Company in writing, or (b) if to any other holder of any Shares, at such address as such holder shall have furnished the Company
in writing, or, until any such holder so furnishes an address to the Company, then to and at the address of the last holder of such Shares who has so furnished an address to the Company, or (c) if to the Company, at its address set forth on the
signature page of this Agreement addressed to the attention of the Corporate Secretary, or at such other address as the Company shall have furnished to the Investors. Unless specifically stated otherwise, if notice is provided by mail, it shall be
deemed to be delivered upon proper deposit in a mailbox, and if notice is delivered by hand or by messenger, it shall be deemed to be delivered upon actual delivery. 
  
 5.5 Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any Investor upon
any breach or default of the Company under this Agreement shall impair any such right, power, or remedy of such party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach
or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent, or approval of any kind or character on the
part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such
writing or as provided in this Agreement. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 
  

 22 

 5.6 Dispute Resolution Fees. If any action at law or in equity is necessary to enforce or
interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs, and disbursements in addition to any other relief to which such party may be entitled. 
  
 5.7 Counterparts. This Agreement may be executed in any number of
counterparts and signatures may be delivered by facsimile, each of which may be executed by less than all parties, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall
constitute one instrument. 
  
 5.8 Severability. If any
provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this
Agreement and the balance of this Agreement shall be enforceable in accordance with its terms. 
  
 5.9 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
  
 5.10 Amendment and Waiver. Any provision of this Agreement may be
amended or waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Company and an Investor or Investors holding, in the aggregate, more than sixty percent (60%) of the
outstanding shares of the Registrable Securities. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each Investor and the Company. In addition, the Company may waive performance of any obligation owing to it,
as to some or all of the Investors, or agree to accept alternatives to such performance, without obtaining the consent of any Investor. 
  
 5.11 Effect of Amendment or Waiver. The Investors and their successors and assigns acknowledge that by the operation of Section 5.10 hereof
Investors holding more than sixty percent (60%) of the outstanding Registrable Securities, acting in conjunction with the Company, will have the right and power to diminish or eliminate any or all rights pursuant to this Agreement. 

 
 5.12 Termination of Entire Agreement Upon Change of Control. This
Agreement shall terminate, and have no further force and effect, when the Company shall sell, convey or otherwise dispose of all or substantially all of its property or business or merge with or into or consolidate with any other corporation (other
than a wholly-owned subsidiary corporation) or effect any other transaction or series of related transactions in which more than fifty percent (50%) of the voting power of the Company is disposed of, and the Company is not the survivor;
provided, that this Agreement shall not be terminated following a merger effected solely for the purpose of changing the domicile of the Company or following an equity financing in which the Company is the surviving entity. 
  
 5.13 Rights of Investors. Each party to this Agreement shall have the
absolute right to exercise or refrain from exercising any right or rights that such party may have by reason 
  

 23 

 of this Agreement, including, without limitation, the right to consent to the waiver or modification of any obligation
under this Agreement, and such party shall not incur any liability to any other party or other holder of any securities of the Company as a result of exercising or refraining from exercising any such right or rights. 
  
 5.14 Prior Agreement. The Prior Agreement is hereby amended and
restated in full to read as set forth herein. Such amendment and restatement is effective upon execution of this Agreement by the Company and the holders of at least sixty percent (60%) of the Registrable Securities held by the Investors
outstanding as of the date of this Agreement. Upon such execution, all provisions of, rights granted and covenants made in the Prior Agreement are hereby waived, released and superseded in their entirety and shall have no further force to effect.

  
 5.15 Aggregation of Stock. All shares of Registrable
Securities held or acquired by affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement, and for the purposes of Section 4 of this Agreement. 
  
 5.16 Subsequent Signatories. Notwithstanding anything to the contrary
herein, if the Company shall issue additional shares of its Series C Preferred Stock subsequent to the date hereof, any holder of such shares may become a party to this Agreement by executing and delivering an additional counterpart signature page
to this Agreement, such holder shall theretofore be deemed one of the “Investors” for all purposes hereunder and Exhibit A to this Agreement shall be amended by the Company without the consent of the Investors, OHSU or Pitt to include such
holder. 
  
 [THIS SPACE LEFT BLANK INTENTIONALLY] 
  

 24 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

			
	COMPANY:
	
	 NOVACEA, INC.
 a Delaware
corporation

		
	By:	 	 /s/ Brad Goodwin

	 	 	Bradford S. Goodwin
	 	 	Chief Executive Officer

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

			
	Oregon Health & Science University
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 University of Pittsburgh of the Commonwealth
 System of Higher Education

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	  

 John G. Curd, M.D.

	
	  

 Bradford S. Goodwin

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

	
	
	 /s/ W. David Henner

	 W. David Henner, M.D.

	
	 
	 Tomasz M. Beer, M.D.

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

					
	 INVESTORS:

	
	 Apax Excelsior VI, L.P.

		
	 By:
	 	 Apax Excelsior VI Partners, L.P.

	 Its:
	 	 General Partner

		
	 By:
	 	 Apax Managers, Inc.

	 Its:
	 	 General Partner

			
	 	 	 By:
	 	 /s/ Gregory M. Case

	 	 	 Name:
	 	 Gregory M. Case

	 	 	 Title:
	 	 Vice-President

	
	 Apax Excelsior VI-A C.V.

		
	 By:
	 	 Apax Excelsior VI Partners, L.P.

	 Its:
	 	 General Partner

		
	 By:
	 	 Apax Managers, Inc.

	 Its:
	 	 General Partner

			
	 	 	 By:
	 	 /s/ Gregory M. Case

	 	 	 Name:
	 	 Gregory M. Case

	 	 	 Title:
	 	 Vice-President

	
	 Apax Excelsior VI-B C.V.

		
	 By:
	 	 Apax Excelsior VI Partners, L.P.

	 Its:
	 	 General Partner

		
	 By:
	 	 Apax Managers, Inc.

	 Its:
	 	 General Partner

			
	 	 	 By:
	 	 /s/ Gregory M. Case

	 	 	 Name:
	 	 Gregory M. Case

	 	 	 Title:
	 	 Vice-President

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

					
	Patricof Private Investment Club III, L.P.
		
	By:	 	Apax Excelsior VI Partners, L.P.
	Its:	 	General Partner
		
	By:	 	Apax Managers, Inc.
	Its:	 	General Partner
			
	 	 	By:	 	 /s/ Gregory M. Case

	 	 	Name:	 	Gregory M. Case
	 	 	Title:	 	Vice-President

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

					
	 Domain Partners V, L.P.

		
	 By:
	 	 One Palmer Square Associates V, L.L.C.

	 Its:
	 	 General Partner

			
	 	 	 By:
	 	 /s/ Kathleen K. Schoemaker

	 	 	 Name:
	 	 Kathleen K. Scheomaker

	 	 	 Title:
	 	 Managing Member

	
	 DP V Associates, L.P.

		
	 By:
	 	 One Palmer Square Associates V, L.L.C.

	 Its:
	 	 General Partner

			
	 	 	 By:
	 	 /s/ Kathleen K. Schoemaker

	 	 	 Name:
	 	 Kathleen K. Scheomaker

	 	 	 Title:
	 	 Managing Member

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

			
	 Lotus BioScience Investment Holdings Limited

		
	By:	 	 /s/ Wong Ken Lum and Mong Cheuk Wai

	Name:	 	Wong Ken Lum and Mong Cheuk Wai
	Title:	 	Directors

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

					
	NEA Ventures 2002, L.P.
		
	By:	 	 /s/ Cindy Crnkovich

	Name:	 	Cindy Crnkovich
	Title:	 	Vice President
	
	New Enterprise Associates 10, L.P.
		
	By:	 	NEA Partners 10, L.P.
	Its:	 	General Partner
			
	 	 	By:	 	 /s/ Mark W. Perry

	 	 	Name:	 	Mark W. Perry
	 	 	Title:	 	General Partner

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

			
	ProQuest Investments II, L.P.
		
	By:	 	ProQuest Associates II LLC
	Its:	 	General Partner
		
	By:	 	 /s/ Pasquale DeAngelis

	Name:	 	Pasquale DeAngelis
	Title:	 	Managing Member of the General Partner
	
	ProQuest Investments II Advisors Fund, L.P.
		
	By:	 	ProQuest Associates II LLC
	Its:	 	General Partner
		
	By:	 	 /s/ Pasquale DeAngelis

	Name:	 	Pasquale DeAngelis
	Title:	 	Managing Member of the General Partner

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

					
	Sofinnova Venture Partners V, LP
		
	By:	 	Sofinnova Management V, LLC
	Its:	 	General Partner
			
	 	 	By:	 	 /s/ James Healy

	 	 	Name:	 	  

	 	 	Title:	 	  

	
	Sofinnova Venture Affiliates V, LP
		
	By:	 	Sofinnova Management V, LLC
	Its:	 	General Partner
			
	 	 	By:	 	 /s/ James Healy

	 	 	Name:	 	  

	 	 	Title:	 	  

	
	Sofinnova Venture Principals V, LP
		
	By:	 	Sofinnova Management V, LLC
	Its:	 	General Partner
			
	 	 	By:	 	 /s/ James Healy

	 	 	Name:	 	  

	 	 	Title:	 	  

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

			
	St. Francis Growth Fund
		
	By:	 	 /s/ Kevin J. Makley

	Name:	 	Kevin J. Makley
	Title:	 	President

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

			
	The V Foundation
		
	By:	 	 /s/ Nick Valuano

	Name:	 	Nick Valuano
	Title:	 	CEO

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

					
	Versant Venture Capital II, L.P.
		
	By:	 	Versant Ventures II, L.L.C.
	Its:	 	General Partner
			
	 	 	By:	 	 /s/ Samuel Colella

	 	 	Name:	 	Samuel Colella
	 	 	Title:	 	Managing Director
	
	Versant Affiliates Fund II-A, L.P.
		
	By:	 	Versant Ventures II, L.L.C.
	Its:	 	General Partner
			
	 	 	By:	 	 /s/ Samuel Colella

	 	 	Name:	 	Samuel Colella
	 	 	Title:	 	Managing Director
	
	Versant Side Fund II, L.P.
		
	By:	 	Versant Ventures II, L.L.C.
	Its:	 	General Partner
			
	 	 	By:	 	 /s/ Samuel Colella

	 	 	Name:	 	Samuel Colella
	 	 	Title:	 	Managing Director

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

			
	Latham & Watkins LLP
		
	By:	 	 /s/ Alan C. Mendelson

	Name:	 	Alan C. Mendelson
	Title:	 	Senior Partner
	
	The Mendelson Family Trust
		
	By:	 	 /s/ Alan C. Mendelson

	Name:	 	Alan C. Mendelson
	Title:	 	Trustee
	
	VP Company Investments 2004, LLC
		
	By:	 	 /s/ Alan C. Mendelson

	Name:	 	Alan C. Mendelson
	Title:	 	Managing Member

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Investor Rights
Agreement as of the date first above written. 
  

			
	Sears Trust U/A Dtd 3/11/91
		
	By:	 	 /s/ Lowell E. Sears

	Name:	 	Lowell E. Sears
	Title:	 	Trustee

  
 Signature Page to
Amended and Restated Investor Rights Agreement 

 EXHIBIT A 
  
 Schedule of Investors 
  
 Apax Excelsior VI, L.P. 
 Apax Excelsior VI-A C.V. 
 Apax Excelsior VI-B C.V. 
 Patricof Private Investment Club III, L.P. 
 Domain Partners V, L.P. 
 DP V Associates, L.P. 
 Lotus Bioscience Ventures 
 New Enterprise Associates 10, L.P. 
 ProQuest Investments II, L.P. 
 ProQuest Investments II Advisors Fund, L.P. 
 Sofinnova Venture Partners V, LP 
 Sofinnova Venture Affiliates V, LP 
 Sofinnova Venture Principals V, LP 
 Versant Venture Capital II, L.P. 
 Versant Affiliates Fund II-A, L.P. 
 Versant Side Fund II, L.P. 
 NEA Ventures 2002, L.P. 
 The V Foundation 
 St. Francis Growth Fund 
 Bradford S. Goodwin 
 John G. Curd, M.D. 
 Mendelson Family Trust 
 Latham & Watkins LLP 
 Sears Trust U/A Dtd 3/11/91 
 VP Company Investments 2004, LLC 
 W. David Henner, M.D. 
 Tomasz M. Beer, M.D. 

 EXHIBIT B 
  
 Novacea, Inc. 
 a Delaware corporation 
  
 CERTIFICATE OF
REPRESENTATIONS 
  
 REGARDING QUALIFIED SMALL BUSINESS STOCK

  
 THIS CERTIFICATE OF REPRESENTATIONS REGARDING QUALIFIED
SMALL BUSINESS STOCK (this “Certificate”) is executed as of                     ,
             by Novacea, Inc., a Delaware corporation (the “Company”), for the benefit of [requesting Holder or Holders],
(“Shareholder”). As used herein, the term “Stock” means those shares of Company capital stock issued by the Company to Shareholder and described more fully on Schedule A hereto. 
  
 Representations 
  
 Subject to the limitations and qualifications set forth below, the Company hereby represents as follows: 
  
 1 . The Company has conducted a reasonable investigation into the question
of whether the Stock is “qualified small business stock” (“QSBS”) within the meaning of Section 1202(c) of the Internal Revenue Code of 1986, as amended (the “Code”); and 
  
 2. As of the date first above written, and assuming that Shareholder has not
sold, distributed, or otherwise transferred the Stock, all of the Stock is QSBS. 
  
 Qualifications and Limitations 
  
 1 .
Qualification of the Stock as QSBS is based, in part, on the value of Company stock or other assets at certain relevant times. For purposes of the representations made in this Certificate, the Company has made a good faith determination of such
values, taking into account all material facts and circumstances, but cannot guarantee that the Internal Revenue Service will not successfully assert that such determination is incorrect. 
  
 2. Qualification of the Stock as QSBS is based, in part, on whether the Company has been engaged in the active conduct of
one or more qualified trades or businesses. The term “qualified trade or business” set forth in Section 1202(e)(3) of the Code is not clearly defined in all respects. For purposes of the representations made in this Certificate, the
Company has made a good faith effort to apply the definition of qualified trade or business set forth in Section 1202(e)(3) of the Code, but cannot guarantee that the Internal Revenue Service will not successfully assert a contrary definition.

  
 3. Qualification of the Stock as QSBS is based, in part, on
whether at least eighty percent (by value) of the Company’s assets have been used in the active conduct of one or more 

 qualified trades or businesses. For this purpose, assets held as “working capital” of a qualified trade or
business within the meaning of Section 1202(e)(6) of the Code are treated as used in the active conduct of such trade or business. The term “working capital” set forth in Section 1202(e)(6) of the Code is not clearly defined in
all respects. For purposes of the representations made in this Certificate, the Company has made a good faith effort to apply the definition of working capital set forth in Section 1202(e)(6) of the Code, but cannot guarantee that the Internal
Revenue Service will not successfully assert a contrary definition. 
  
 4. Qualification of the Stock as QSBS is based, in part, on whether the Company purchased any of its stock from a person related to Shareholder during a relevant testing period. For purposes of the representations made in this Certificate,
the Company has made a good faith determination that such purchases did not occur, but cannot guarantee that the Internal Revenue Service will not successfully assert that such determination is incorrect. 
  
 IN WITNESS WHEREOF, the Company has executed this Certificate as of the date
first above written. 
  

			
	BY:	 	  

	 TITLE:
	 	  

 EXHIBIT C 
  
 Form of Indemnification Agreement 
  
 Intentionally OmittedNovacea, Inc. 2001 Stock Option Plan and forms of agreements relating thereto

 Exhibit 10.1 
  
 2001 STOCK OPTION PLAN 
  

OF 
  
 NOVACEA, INC. 
  
 1. Purpose 
  
 The purpose of this 2001 Stock Option Plan (the “Plan”) is to secure for Novacea, Inc. (the “Company”) the benefits arising from stock ownership by selected employees, consultants, advisers and directors of the Company
and its parent and subsidiary corporations, if any, who are important to the success and the growth of the business of the Company, and to help the Company and its parent and subsidiary corporations secure and retain the services of such persons.
The Plan will provide a means whereby such persons will be given an opportunity to purchase shares of the Common Stock of the Company under options, some of which are intended to qualify as incentive stock options (“Incentive Stock
Options”) under Section 422 of the Internal Revenue Code of 1986, as amended (“Internal Revenue Code”). 
  
 2. Definitions 
  
 “Act” means the Securities Act of 1933, as amended. 
  
 “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether now or
hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Internal Revenue Code. 
  
 “Board” means the Board of Directors of the Company. 
  
 “Committee” means the stock option committee of the Board, if one is designated. 
  
 “Company” shall have the meaning set forth in
Section 1 hereof. 
  
 “Common
Stock” means shares of the Company’s Common Stock, $0.001 par value. 
  
 “Fair Market Value” means (i) if the Common Stock is then listed on a national securities exchange, the closing sales price
of the Common Stock on the day such value is determined on the principal securities exchange on which such stock is then listed, or if there is no reported sale on that day, the average of the bid and asked quotations on such exchange on that day,
(ii) if the Common Stock is then publicly traded in the NASDAQ National Market System, the closing sales price of the Common Stock as reported by the NASDAQ National Market System on the day such value is determined, or if there is no reported
sale on that day, the average of the bid and asked quotations on that day, (iii) if the Common Stock is then publicly traded in the over-the-counter market (other than the NASDAQ National Market System), the mean between the closing bid and
asked prices of the Common Stock in the over-the-counter market on the day such value is determined or, if no shares were traded that day, on the next preceding day on which there was such a trade, or (iv) if the Common Stock is not then

 
separately quoted or publicly traded, the fair market value on the date such value is to be determined, as determined in good faith by the Board. 

 
 “Grantee” means an employee, consultant,
adviser or director of the Company or its parent or subsidiary corporations to whom an Option is granted. 
  
 “Incentive Stock Option” shall have the meaning set forth in Section 1 hereof. 
  
 “Internal Revenue Code” shall have the meaning set
forth in Section 1 hereof. 
  
 “Option” means any right to purchase, at a price and for the Term fixed by the Board in accordance with the Plan and subject to such other limitations and restrictions as the Board may impose, the number of shares of Common Stock
specified by the Board. 
  
 “Option
Agreement” means a written agreement in a form approved by the Board to be entered into by the Company and the Grantee. 
  
 “Parent” and “subsidiary” shall have the definitions of a parent corporation and a subsidiary corporation,
respectively, contained in Section 424 of the Internal Revenue Code. 
  
 “Plan” shall have the meaning set forth in Section 1 hereof. 
  
 “Successor” means the legal representative of the estate of a deceased Grantee or the person or persons who shall acquire the
right to exercise an Option by bequest or inheritance or by reason of the death of the Grantee. 
  
 “Term” means the period during which a particular Option may be exercised. 
  
 3. Effective Date of Plan 
  
 The Plan shall become effective on the date it is adopted by
the Board, subject, however, to its approval by the holders of a majority of the outstanding voting stock of the Company within twelve (12) months of such effective date. In the event that the Plan is not so approved by the Company’s
stockholders within twelve (12) months of the effective date, all Options issued hereunder shall be void. 
  
 4. Administration of the Plan 
  
 (a) The Plan shall be administered by the Compensation Committee of the Board (“Committee”), which Committee shall consist of
not less than two (2) directors, each of whom shall be an “outside director” within the meaning of Section 162(m) of the Internal Revenue Code and Section 1. 162-27 of the Treasury Regulations or any successor provision(s)
thereto. If there are not two (2) persons on the Board who meet the foregoing qualification the Committee may be comprised of any two (2) or more directors. The Committee shall serve at the pleasure of the Board and if a Committee is
constituted, all references in this Plan to the “Board” except those in Section 2, Section 3, Section 4(a) and Section 15 shall be deemed to refer to the Committee. If no Committee is constituted, the Plan shall be
administered by the Board. 
  

 2 

 (b) The Committee, if one be constituted, shall adopt such rules of procedure as it may
deem proper; provided, however, that it may only take action upon the agreement of a majority of the whole Committee. Any action which the Board or the Committee shall take through a written instrument signed by a majority of its members shall be as
effective as though taken at a meeting duly called and held. 
  
 (c) The powers of the Board shall include plenary authority to interpret the Plan, and, subject to the provisions hereof, to determine when and to whom Options shall be granted, the number of shares subject to each
Option, the method and medium of payment and the Term of each Option. 
  
 (d) The Board’s determinations under the Plan need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, grants under the Plan (whether or not such persons are
similarly situated). Without limiting the generality of the foregoing, the Board shall be entitled, among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Option Agreements as to the persons
to receive Options under the Plan. 
  
 5. Grant of Options:
Number and Source of Shares Subject to the Plan 
  
 (a) The Board may from time to time grant Options under the Plan for not more than Eleven Million (11,000,000) shares of Common Stock (subject to adjustment as provided in Section 12 hereof) which will be provided from authorized
and unissued Common Stock and which are not reserved for some other purpose or from treasury shares. 
  
 (b) The date of grant of an Option shall be the date specified by the Board which date shall not be earlier than the date the Board action
is final. 
  
 (c) Shares of Common Stock, as to
which Options previously granted shall for any reason lapse, shall be restored to the total number available for grant of Options. 
  
 6. Persons Eligible to Receive Options 
  
 (a) Options may be granted under the Plan to selected employees, consultants, advisers and directors of the Company or one or more of its
parent or subsidiary corporations, if any. Eligibility shall be determined by the Board (subject to Section 6(b) below), and such determination shall be final and conclusive upon all persons. 
  
 (b) Employees are eligible to receive either or both
Incentive Stock Options and Options other than Incentive Stock Options. Directors, consultants and/or advisers who are not also employees or officers of the Company or one or more of its parent or subsidiary corporations, if any, shall not be
eligible to receive Incentive Stock Options under the Plan. 
  
 (c) A Grantee who owns shares possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or one or more of its parent or subsidiary corporations, if any, may
only be granted an Option under the Plan if at the time such Option is granted the Option price is at least one hundred ten percent (110%) of the Fair Market Value of the shares subject to the Option, and, in the case of an Incentive Stock
Option, 

  

 3 

 
such Incentive Stock Option by its terms is not exercisable after the expiration of five (5) years from the date such Incentive Stock Option is granted.

  
 (d) To the extent that the aggregate Fair
Market Value (determined as of the time the Option is granted) of the shares with respect to which Incentive Stock Options are exercisable for the first time by a Grantee during any calendar year (under all plans of the Company and its parent and
subsidiary corporations, if any) exceeds such amount as the Internal Revenue Code shall then specify, if any, such Options shall be treated as Options which are not Incentive Stock Options. 
  
 7. Option Price, Payment, and Withholding 
  
 (a) The price per share to be paid by the Grantee to the
Company upon exercise of an Option shall not be less than 100% (85% in the case of Options other than Incentive Stock Options) of the Fair Market Value of the shares of Common Stock subject to the Option on the date the Option is granted. The
aggregate Option price shall be paid at the time of the exercise of the Option in full in cash or by check or, if permissible under applicable state law and in the discretion of the Board, in installments or in part by a promissory note or notes of
the Grantee bearing interest at such rate or rates as may be determined by the Board and secured by a security interest in the shares issued upon exercise and such other security as the Board, in its discretion, may require. In the sole discretion
of the Board, payment of the aggregate Option price may be made in whole or in part by delivery of shares of previously acquired Common Stock having a Fair Market Value (determined as of the date such Option was exercised) equal to all or part of
the aggregate Option price and, if and to the extent permissible and applicable, cash or a check or note payable to the Company for any remaining portion of the aggregate Option price. 
  
 (b) In connection with the exercise of an Option, the Company shall be entitled to require as a condition of
delivery of the shares issuable upon exercise thereof that the Grantee remit or, in appropriate cases agree to remit when due, an amount sufficient to satisfy all current or estimated future federal, state and local withholding tax requirements and
any federal social security or other employment tax or other tax requirements relating thereto. If permitted by the Board in its sole discretion, the Grantee may satisfy, in whole or in part, the foregoing withholding requirement by delivery of
shares of previously acquired Common Stock having a Fair Market Value (determined as of the date such Option was exercised) equal to all or part of the aggregate withholding taxes and, if permissible and applicable, cash or a check payable to the
Company for any remaining portion of the aggregate withholding taxes. 
  
 (c) If requested by the Board, prior to the acceptance of shares of Common Stock as provided in subparagraph (a) or (b) of this Section 7, the Grantee shall supply the Board with written representations
and warranties, including without limitation a representation and warranty that the Grantee has good and marketable title to such shares free and clear of liens and encumbrances. 
  

 4 

 8. Term of Options, Exercise of Option During Life of Grantee 
  
 (a) Each Option granted under the Plan shall be exercisable
at such time or times, or upon the occurrence of such event or events, and in such amounts, as the Board shall specify in the Option Agreement except that (i) no Option granted hereunder shall be for a Term exceeding ten (10) years (or
five (5) years as provided in Section 6(c) hereof) and (ii) all Options shall vest at a rate of no less than twenty percent (20%) per year over a period of five (5) consecutive years. 
  
 (b) Options shall be exercised by delivering or mailing to
the Company, Attention: Corporate Secretary: 
  
 (i) a notice, in the form prescribed by the Board, specifying the number of shares to be purchased; and 
  
 (ii) the total consideration therefor, as specified in the Option Agreement relating thereto. 
  
 (c) Upon receipt of such notice and payment, the Company
shall promptly deliver to the Grantee a certificate or certificates for the shares purchased, without charge to the Grantee for any issue or transfer tax. 
  
 (d) The Board may postpone any exercise of an Option for such time as the Board in its discretion may deem necessary or condition the
exercise thereof in such manner as the Board may determine in order to permit the Company with reasonable diligence (i) to effect or maintain the listing of such shares on any securities exchanges, or (ii) to effect or maintain
registration or qualification under the Act, or any applicable state statute, of the Plan or the shares issuable upon the exercise of the Option, or (iii) to determine that the Plan and issuance of such shares are exempt from registration or
qualification and in connection therewith to require (x) as a condition of the issuance of shares upon exercise of the Option that the Grantee represent and agree that the Grantee is acquiring shares of Common Stock upon exercise of such Option
for investment and without a view to the distribution or resale thereof in violation of the Act and any applicable state securities law and (y) that the certificates evidencing such shares bear a legend setting forth such representation. The
Company shall not be obligated by virtue of any Option Agreement or any provision of the Plan to recognize the exercise of an Option or to sell or issue shares in violation of the Act or of the law of any state having jurisdiction thereof. Any such
postponement shall not extend the Term of an Option; and neither the Company nor its directors or officers shall have any obligation or liability to the Grantee of an Option, or to the Grantee’s Successor, with respect to any shares as to which
the Option shall lapse because of such postponement. 
  
 (e) All Options granted under the Plan shall be nontransferable other than by will or by the laws of descent and distribution. An Option may be exercised during the lifetime of the Grantee only by the Grantee. 
  
 (f) Upon the exercise of an Option by the Grantee, the share
certificate or certificates may, at the request of the Grantee, be issued in the Grantee’s name and the name of another person as joint tenants with right of survivorship. 
  

 5 

 (g) An Option may contain such other terms, provisions and conditions not inconsistent
with the Plan as may be determined by the Board and any Option intended to be an Incentive Stock Option shall include such provisions and conditions as may be necessary to qualify the Option as an Incentive Stock Option. 
  
 (h) An Option may contain such restrictions and provisions
regarding the sale, transfer or disposition of the shares of Common Stock issued upon exercise thereof as may be determined by the Board. 
  
 9. Exercise of Option by Grantee on Cessation of Employment 
  
 The unexercised portion of any Option granted under the Plan shall automatically and without notice
terminate and become null and void at the time of the earliest to occur of the following: 
  
 (a) The expiration of not more than ten (10) years from the date on which such Option was granted; 
  
 (b) The expiration of ninety (90) days from the date of
termination (other than a termination described in Section 9(d) below or on account of death) of the Grantee’s employment with the Company or its parent or subsidiary corporations (or, in the case of a director, consultant or adviser who
is not an employee, within ninety (90) days from the date of termination of the Grantee’s directorship or consulting or advising arrangement, as the case may be), provided that if the Grantee shall die during such ninety (90) day
period, the provisions of Section 9(c) below shall apply; 
  
 (c) The expiration of one (1) year following the date of the Grantee’s death, if such death occurs during his or her employment with the Company or its parent or subsidiary corporations (or, in the case of a
director, consultant or adviser who is not an employee, during the term of his or her directorship or consulting or advising arrangement, as the case may be); 
  

(d) The expiration of one (1) year from the date of termination of the Grantee’s employment with the Company or its parent or
subsidiary corporations (or, in the case of a director, consultant or adviser who is not an employee, one (1) year from the date of termination of the Grantee’s directorship or consulting or advising arrangement, as the case may be), if
such termination is attributable to a disability of the Grantee within the meaning of Section 22(e)(3) of the Internal Revenue Code. The Board shall have the right to determine whether the Grantee’s termination is attributable to a
disability of the Grantee within the meaning of Section 22(e)(3) of the Internal Revenue Code, such determination of the Board to be final and conclusive. 
  

10. Right to Terminate Employment 
  
 Nothing contained in the Plan or in any Option granted pursuant to the Plan shall obligate the Company or its parent or subsidiary
corporations to continue to employ or engage any employee, consultant, adviser or director in such or in any other capacity with the Company, nor confer upon any employee, consultant, adviser or director any right to continue in the employ or as a
consultant, adviser or director of or in any other capacity with the Company or its parent 

  

 6 

 
or subsidiary corporations, if any, nor limit in any way the right of the Company or its parent or subsidiary corporations to amend, modify or terminate any
person’s compensation, employment, directorship or consulting or advising agreement at any time. 
  
 11. Stockholders’ Rights 
  
 No person shall have any rights of a stockholder by virtue of a grant of an Option except with respect to shares actually issued to that
person upon the exercise thereof. 
  
 12. Adjustments

  
 In the event that the shares of stock subject
to the Plan shall be changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another corporation (whether by reason of merger, consolidation, recapitalization, reclassification, split-up,
combination of shares, or otherwise) or if the number of such shares of stock shall be increased solely through the payment of a stock dividend, then there shall be substituted for or added to each share of stock of the Company theretofore
appropriated or thereafter subject or which may become subject to an Option under the Plan, the number and kind of shares of stock or other securities into which each outstanding share of stock of the Company shall be so changed, or for which each
such share shall be exchanged, or to which each such share shall be entitled, as the case may be. Outstanding Options shall also be appropriately amended as to price and other terms as may be necessary to reflect the foregoing events. In the event
there shall be any other change in the number or kind of the outstanding shares of stock of the Company subject to the Plan, or of any stock or other securities into which such stock shall have been changed, or for which it shall have been
exchanged, then if the Board, in its sole discretion, determines that such change equitably requires an adjustment in any Option theretofore granted or which may be granted under the Plan or the terms, such adjustments shall be made in accordance
with such determination. 
  
 Fractional shares
resulting from any adjustment in Options pursuant to this Section 12 shall be eliminated. Notice of any adjustment shall be given by the Company to each holder of an Option which shall have been so adjusted and such adjustment (whether or not
such notice is given) shall be final and conclusive for all purposes of the Plan. 
  
 13. Corporate Mergers, Acquisitions, Etc. 
  
 The Board may also grant Options having terms and provisions which vary from those specified in the Plan provided that any Option granted
pursuant to this Section 13 is granted in substitution for or in connection with the assumption of existing Options granted by another corporation and assumed or otherwise agreed to be provided for by the Company pursuant to or by reason of a
transaction involving a corporate merger, consolidation, acquisition of property or stock, separation, reorganization, or liquidation to which the Company is a party. 
  
 14. Proceeds from Sale of Stock 
  
 Proceeds from the sale of stock pursuant to Options granted under the Plan shall be added to the general
funds of the Company. 
  

 7 

 15. Termination, Suspension or Modification of Plan 
  
 The Plan shall terminate ten (10) years from the date
on which it is adopted by the Board but such termination shall not affect the validity of any outstanding Options or any restrictions or agreements contained therein. The Board may at any time terminate, suspend, or modify the Plan, except that the
Board shall not, without the authorization of the holders of a majority of the shares voted thereon at a meeting of stockholders duly called and held, increase the aggregate number of shares for which Options may be granted under the Plan (other
than through adjustment for changes in capitalization as hereinabove provided). No termination, suspension, or modification of the Plan shall adversely affect any right acquired by any Grantee or any Successor under the terms of an Option granted
before the date of such termination, suspension, or modification, unless such Grantee or Successor shall consent; but it shall be conclusively presumed that any adjustment for changes in capitalization as provided in Section 12 shall not
adversely affect any such right. Subject to the foregoing provisions of this Section 15, the Board expressly reserves the right, in its sole determination, to amend or modify the terms and provisions of the Plan and of any outstanding Options
thereunder to the extent necessary to qualify any or all Options for such favorable federal income tax treatment (including deferral of taxation upon exercise) as may be afforded employee stock options under the Internal Revenue Code or any
amendment thereto or other statutes or regulations which become effective after the effective date of the Plan. 
  
 16. Financial Information 
  
 The Company shall provide to each Grantee such financial information, at such times, as may be required under the California Corporate
Securities Law of 1968, as amended, and the regulations thereunder. 
  
 17. Optionee Restriction Agreements 
  
 The Board, in its discretion, may require, as a condition to the grant of an Option, a Grantee to enter into an Optionee Restriction Agreement which provides for, among other things, (a) a right of repurchase (which right shall lapse
at a rate of at least twenty percent (20%) per year over five years from the date the Option is granted) in favor of the Company to repurchase shares acquired upon the exercise of an Option, which right must be exercised for cash or
cancellation of purchase money indebtedness, at a price equal to the purchase price per share paid by the original Grantee for the shares, within ninety (90) days of, in the case of an employee, the date of termination of his or her employment
or, in the case of a director, consultant or adviser who is not an employee, the date of termination of his or her directorship or consulting or advising arrangement, as the case may be, and (b) market standoff provisions which require a
Grantee, upon request of the Company, to not sell or transfer shares acquired upon exercise of an Option for a specified period of time following the effective date of a registration statement under the Act. 
  

 8 

 INCENTIVE STOCK OPTION AGREEMENT 
  
 THIS STOCK OPTION AGREEMENT (the “Agreement”), made as of
                , 200    , by and between Novacea, Inc., a Delaware corporation (the “Company”), and
                 (the “Option Holder”), is made with reference to the following facts: 
  
 A. The Company is desirous of providing additional incentives to the Option Holder in rendering services to and on behalf of
the Company and its parent and subsidiary corporations and, in order to accomplish this result, has determined to grant the Option Holder the right and option to purchase shares of Common Stock, $.001 par value, of the Company (the “Common
Stock”) pursuant to the Company’s 2001 Stock Option Plan (the “Plan”) on the terms and conditions set forth herein. 
  
 B. The Option Holder is desirous of accepting said stock option on the terms and conditions set forth herein. 
  
 NOW, THEREFORE, it is agreed as follows: 
  
 1. Grant. The Company hereby grants to the Option Holder the right and
option to purchase, on the terms and conditions hereinafter set forth (the “Option”), all or any part of an aggregate of
                         (            ) shares of the
Common Stock at the purchase price of                          cents ($0.    ) per share (the
“Exercise Price”), exercisable from time to time in accordance with the provisions of this Agreement and the Plan pursuant to which this Agreement is being executed during a period expiring at the close of business ten (10) years from
the date of this Agreement (the “Expiration Date”). This Option not intended to be an “incentive stock option”. This Option will be treated as an “incentive stock option” as defined in Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”), and any regulations promulgated thereunder. 
  
 2. Exercise of Option. 
  
 (a) In order to exercise this Option, Option Holder shall take all of the following actions: (i) delivering or mailing to the
Company, Attention: Corporate Secretary, a notice of exercise, in the form specified by the Company, specifying therein the number of shares of Common Stock he has elected to purchase, accompanied by (A) payment in cash or by check payable to
the order of the Company for the Exercise Price multiplied by the number of shares to be purchased, and (B) if required, the letter described in Paragraph 6; (ii) making appropriate arrangements with the Company for the satisfaction of the
withholding requirements set forth in Paragraph 8 hereof; and (iii) executing and delivering to the Company the Acknowledgment and Statement of Decision Regarding Election Pursuant to Section 83(b) and a copy of the executed Election
Pursuant to Section 83(b) if applicable, in accordance with Section 5 of the Optionee Restriction Agreement attached hereto as Exhibit “A” and being executed concurrently herewith. Notwithstanding the foregoing, the aggregate
purchase price to be paid upon any exercise of this Option may, if permissible under applicable state law and in the discretion of the Board of Directors of the Company (the “Board”), be paid (1) in installments or in whole or in part
by a promissory note of the Option Holder (in a form reasonably satisfactory to the Company) and secured by a security interest in the shares issued upon such exercise 

  

 9 

 
(provided, however, that an amount equal to the par value of the Common Stock multiplied by the number of shares being issued upon exercise shall be paid in
cash) and/or (2) in whole or in part by delivery to the Company of shares of Common Stock previously acquired by the Option Holder having a Fair Market Value (determined as of the date of exercise of this Option and in the manner set forth in
the Plan) equal to the portion of the aggregate purchase price being paid by delivery of such shares and, in the case of (1) or (2), if and to the extent applicable, cash or a check (or, in the case of (2) only, a note) made payable to the
Company for any remaining portion of the aggregate purchase price. If so requested by the Board, prior to the acceptance of shares of Common Stock in satisfaction (in whole or in part) of the purchase price upon such exercise of this Option, the
Option Holder shall supply the Board with written representations and warranties, including without limitation a representation and warranty that the Option Holder has good and marketable title to such shares, free and clear of liens and
encumbrances. The exercise of this Option shall not be deemed effective unless and until the Option Holder has complied with all of the provisions of this Paragraph 2(a). No partial exercise of this Option may be for less than One Hundred
(100) shares and, in no event, shall the Company be required to issue fractional shares. 
  
 (b) This Option shall be immediately exercisable in full as to all of the shares covered hereby, conditioned upon the Option Holder
entering into the Optionee Restriction Agreement attached hereto as Exhibit “A” with respect to any unvested shares. The shares subject to this Option shall vest and/or be released from the Company’s Right of Repurchase, as set forth
in the Optionee Restriction Agreement, according to the schedule set forth on Schedule 1 to the Optionee Restriction Agreement. 
  
 3. Termination. The unexercised portion of this Option shall automatically and without notice terminate and become null and void at the time of the
earliest to occur of the following: 
  
 (a) The
Expiration Date; 
  
 (b) The expiration of ninety
(90) days from the date of termination of the Option Holder’s employment with the Company or its parent or subsidiary corporations (or, in the case of a director, consultant or adviser who is not an employee, within ninety (90) days
from the date of termination of the Option Holder’s directorship or consulting or advising arrangement, as the case may be) (other than a termination described in subparagraphs (d) or (e) below or on account of death); provided that
if the Option Holder shall die during such ninety (90) day period, the provisions of subparagraph (c) below shall apply; 
  
 (c) The expiration of eighteen (18) months following the date of the Option Holder’s death, if such death occurs during the
Option Holder’s employment with the Company or its parent or subsidiary corporations (or, in the case of a director, consultant or adviser who is not an employee, within eighteen (18) months from the date of termination of the Option
Holder’s directorship or consulting or advising arrangement, as the case may be); 
  
 (d) The expiration of one (1) year from the date of termination of the Option Holder’s employment with the Company or its parent
or subsidiary corporations (or, in the case of a director, consultant or adviser who is not an employee, within one (1) year from the 

  

 10 

 
date of termination of the Option Holder’s directorship or consulting or advising arrangement, as the case may be) if such termination is attributable
to a disability of the Option Holder within the meaning of Section 22(e)(3) of the Code. The Board shall have the right to determine whether the Option Holder’s termination is attributable to a disability of the Option Holder within the
meaning of Section 22(e)(3) of the Code, such determination of the Board to be final and conclusive; 
  
 (e) Upon the termination of the Option Holder’s employment with the Company or its parent or subsidiary corporations (or, in the case
of a director, consultant or adviser who is not an employee, within one (1) year from the date of termination of the Option Holder’s directorship or consulting or advising arrangement, as the case may be) if such termination is for Cause
(as defined below). The Board shall have the right to determine whether the Option Holder has been discharged for Cause and the date of such discharge; such determination of the Board to be final and conclusive. “Cause” for the Option
Holder’s termination will exist at any time after the happening of one or more of the following events, in each case as determined in good faith by the Company’s Board of Directors: 
  
 (i) The Option Holder’s gross negligence or willful
misconduct in the performance of his or her duties to the Company; 
  
 (ii) The Option Holder’s repeated or unjustified absence from the Company; 
  
 (iii) The Option Holder’s commission of any act of fraud with respect to the Company; 
  
 (iv) The Option Holder’s conviction of or plea of
guilty or nolo contendere to felony criminal conduct or a crime involving moral turpitude; or 
  
 (v) The Option Holder’s violation of any noncompetition or confidentiality agreement that the Option Holder has entered into with the
Company. 
  
 Nothing contained herein or in the Plan shall
obligate the Company or its parent or subsidiary corporations to continue to engage the Option Holder as an employee, consultant or advisor or in any other capacity with the Company, nor confer upon the Option Holder any right to continue in such
employment or engagement or in any other capacity with the Company or its parent or subsidiary corporations, nor limit in any way the right of the Company or its parent or subsidiary corporations to amend, modify or terminate his compensation,
employment or engagement at any time. 
  
 4.
Non-Assignability. This Option and the rights and privileges granted hereby shall not be transferred other than by will or by the laws of descent and distribution. Upon any attempt to transfer this Option or any right or privilege granted
hereby other than by 

  

 11 

 
will or by the laws of descent and distribution and contrary to the provisions hereof, this Option and said rights and privileges shall immediately become
null and void. 
  
 5. Anti-Dilution. In the event that the
shares of Common Stock subject to this Option shall be changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another corporation (whether by reason of merger, consolidation,
recapitalization, reclassification, split-up, combination of shares, or otherwise) or if the number of such shares of Common Stock shall be increased solely through the payment of a stock dividend, then there shall be substituted for or added to
each share of stock of the Company theretofore appropriated or thereafter subject to this Option the number and kind of shares of stock or other securities into which each outstanding share of stock of the Company shall be so changed, or for which
each such share shall be exchanged, or to which each such share shall be entitled, as the case may be. This Option shall also be appropriately amended as to Exercise Price and other terms as may be necessary to reflect the foregoing events. In the
event there shall be any other change in the number or kind of the outstanding shares of stock of the Company subject to this Option, or of any stock or other securities into which such stock shall have been changed, or for which it shall have been
exchanged, then if the Board, in its sole discretion, determines that such change equitably requires an adjustment in this Option, such adjustments shall be made in accordance with such determination. The Option Holder understands that if,
subsequent to the date of this Agreement, the Company issues additional shares of the Company’s securities, the percentage ownership of the Company represented by the number of shares of Common Stock subject to this Option will be
proportionately reduced by each such issuance and that the number of shares covered hereby and the Exercise Price shall not be adjusted except as otherwise set forth in this Agreement. 
  
 Fractional shares resulting from any adjustment in this Option pursuant to this Paragraph 5 shall be eliminated. Notice of
any adjustment shall be given by the Company to the Option Holder, such adjustment (whether or not such notice is given) to be final and conclusive for all purposes hereof. 
  
 6. Securities Law. The shares of Common Stock subject to this Option have not been registered under the Securities
Act of 1933, as amended (the “Act”), or registered or qualified under any applicable state securities laws. Accordingly, the Option Holder agrees that he will take any shares of Common Stock acquired pursuant to the exercise hereof in good
faith for purposes of investment and without a view to any distribution thereof in violation of the Act and the rules and regulations promulgated thereunder (or such applicable state securities laws). The Option Holder understands that the Company
will be relying upon the truth and accuracy of this representation in issuing the Common Stock without first registering the issuance thereof under the Act or under applicable state securities laws. The Option Holder acknowledges that he is aware
that the Common Stock issuable upon exercise hereof has not been registered (and there is no obligation on behalf of the Company to register such shares) under the Act (or such applicable state securities laws) and that such Common Stock will not be
freely tradeable and must be held by him indefinitely or until such time, if any, as herein provided and until such Common Stock is either registered under the Act or transfers may be made pursuant to an exemption from such registration as is
accorded by the Act or the rules and regulations promulgated thereunder (and such applicable state securities laws). In this regard, the Option Holder acknowledges that he is also aware that, if the exemption under Rule 144 of the rules and 

  

 12 

 
regulations promulgated under the Act becomes applicable to the Common Stock, shares of the Common Stock may be sold pursuant to said Rule only
(i) following the filing of any required reports by the Company under the Securities and Exchange Act of 1934, as amended, (ii) after the minimum holding period specified in said Rule has been satisfied, and (iii) thereafter, only in
limited amounts in the manner prescribed in said Rule. 
  
 The
Option Holder agrees that at the time of any exercise hereunder, he will provide the Company with a letter embodying the aforementioned expressions of understanding and intent and agrees that any shares issued to him following the exercise of any
option arising hereunder may bear such restrictive legend as the Company may deem necessary to reflect the status of such shares under the Act (and such applicable state securities laws). Before consenting to the removal of such legend and the
transfer of any such shares, the Company may insist upon the delivery to it of an opinion from counsel, satisfactory to it, that the contemplated transfer does not constitute a violation of the Act (or such applicable state securities laws).

  
 Notwithstanding the foregoing, the provisions of this
Paragraph 6 shall be suspended and be of no force or effect during any period during which the shares of Common Stock subject to this Option are registered under the Act. 
  
 7. Rights as a Stockholder. Neither the Option Holder nor any other person legally entitled to exercise this Option
shall be entitled to any of the rights or privileges of a stockholder of the Company in respect to any shares issuable upon any exercise of this Option unless and until a certificate or certificates representing such shares shall have been actually
issued and delivered to him. 
  
 8. Withholding,
Obligations. 
  
 (a) The Option Holder hereby
authorizes withholding from payroll and any other amounts payable to the Option Holder at the time the Option Holder exercises this Option, in whole or in part, or at any time thereafter as requested by the Company, and the Option Holder otherwise
agrees to make adequate provision for any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or an Affiliate (as defined in the Plan), if any, which arise in connection with the exercise of this
Option. 
  
 (b) Upon the Option Holder’s
request and subject to approval by the Company, in its sole discretion, and compliance with any applicable conditions or restrictions of law, the Company may withhold from fully vested shares of Common Stock otherwise issuable to the Option Holder
upon the exercise of this Option a number of whole shares of Common Stock having a Fair Market Value (determined as of the date of exercise of this Option and in the manner set forth in the Plan) not in excess of the minimum amount of tax required
to be withheld by law. If the date of determination of any tax withholding obligation is deferred to a date later than the date of exercise of this Option, share withholding pursuant to the preceding sentence shall not be permitted unless the Option
Holder makes a proper and timely election under Section 83(b) of the Internal Revenue Code, covering the aggregate number of shares of Common Stock acquired upon such exercise with respect to which such determination is otherwise deferred, to
accelerate the determination of such tax withholding obligation to the date of exercise of this Option. Notwithstanding the filing of such election, shares of Common Stock 

  

 13 

 
shall be withheld solely from fully vested shares of Common Stock determined as of the date of exercise of this Option that are otherwise issuable to the
Option Holder upon such exercise. Any adverse consequences to the Option Holder arising in connection with such share withholding procedure shall be the Option Holder’s sole responsibility. 
  
 (c) Notwithstanding any provision herein to the contrary,
the Option Holder may not exercise this Option unless the tax withholding obligations of the Company and/or any Affiliate are satisfied. Accordingly, the Option Holder may not be able to exercise this Option when desired even though this Option is
vested, and the Company shall have no obligation to issue a certificate for such shares of Common Stock. 
  
 9. Notices. Whenever under this Agreement notice is required to be given in writing, it shall be deemed to have been duly given upon personal
delivery, upon deposit with an air courier guaranteeing overnight delivery, or two (2) days after deposit in mail if mailed by registered or certified mail, postage prepaid, to the Company at the address set forth below or to Option Holder at
the address set forth on the last page hereof (or to such other address as either party shall have indicated to the other party by notice in accordance with this Paragraph): 
  

			
	 Company:
	  	NOVACEA, INC.
	 	  	601 Gateway Boulevard, Suite 800
	 	  	South San Francisco, CA 94080

  
 10. Benefit.
Except as otherwise specifically provided herein, this Agreement shall be binding upon and shall operate for the benefit of the Company and the Option Holder and his Successors (as defined in the Plan). 
  
 11. GOVERNING LAW. THIS AGREEMENT AND ANY RIGHTS AND OBLIGATIONS
ARISING HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. 
  
 12. Entire Agreement. This Agreement, the Plan and the Optionee Restriction Agreement (as defined below) together represent the entire agreement
between the parties hereto regarding the options on the Company’s Common Stock granted hereunder and supersede any and all previous written or oral agreements or discussions between the parties and any other person or legal entity concerning
the transactions contemplated herein or therein. Except as otherwise expressly provided herein, this Agreement cannot be amended or modified except by a written instrument executed by the parties hereto. 
  
 13. Construction. The headings of the Paragraphs are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement. If any of the provisions of this Agreement shall be unlawful, void or for any reason unenforceable, they shall be deemed separable from, and shall in no
way affect the validity or enforceability of, the remaining provisions of this Agreement. 
  
 14. Interpretation. In interpreting any provision of this Agreement, the masculine shall include the feminine and neuter, and vice versa and the singular shall include the plural, and vice versa. 
  

 14 

 15. Further Acts. The parties hereto agree to execute and deliver such further instruments as may
be reasonably necessary to carry out the intent of this Agreement. 
  
 16. Optionee Restriction Agreement. Concurrently herewith, Option Holder has executed and delivered to the Company an Optionee Restriction Agreement in substantially the form of Exhibit “A” to this Agreement (the
“Optionee Restriction Agreement”). 
  

 15 

 IN WITNESS WHEREOF, the parties have executed this Stock Option Agreement as of the day and year first
above written. 
  

									
	 NOVACEA, INC.
	 	 	 	 	 	 OPTION HOLDER:

					
	 By:
	 	 	 	 	 	 	 	 
	 	 	 Bradford S. Goodwin,
	 	 	 	 	 	 (Name)

	 	 	 Chief Executive Officer
	 	 	 	 	 	 
				
	 	 	 	 	 	 	Address for Notice:
				
	 	 	 	 	 	 	 
				
	 	 	 	 	 	 	 
				
	 	 	 	 	 	 	 

  

 16 

 CONSENT OF SPOUSE 
  
 The undersigned, the spouse of the Option Holder under the foregoing Stock Option Agreement (“Agreement”), does
hereby consent to and approve of each of the terms and conditions of the Agreement and agrees that the undersigned’s interest in the Agreement and the shares of Common Stock issuable upon exercise of the option granted thereunder are subject to
such terms and conditions. 
  
 Dated as of
                                        
                     
  

	
	
	 

  

 17 

 EXHIBIT A 
  
 NOVACEA, INC. 
  
 OPTIONEE RESTRICTION AGREEMENT 
  
 THIS OPTIONEE RESTRICTION AGREEMENT (the “Agreement”) is made and entered into as of ______, 20__ between Novacea, Inc., a Delaware corporation
(the “Company”), and ________________ (“Optionee”). 
  
 RECITALS: 
  
 A. Optionee owns as of the
date hereof an option (the “Option”) granted by the Company to purchase all or any part of an aggregate of ____________ (______) shares (the “Shares”) of the Common Stock of the Company, par value $.001 per share, at a purchase
price of ____________ cents ($0.__) per Share. The term “Shares” refers to all shares acquired or which could be acquired pursuant to such option and to all securities received in addition thereto or in replacement thereof, pursuant to or
in consequence of any stock dividend, stock split, recapitalization, merger, reorganization, exchange of shares or other similar event. 
  
 B. In order to provide assurance to certain present and future holders (collectively, the “Investors”) of the Preferred Stock of the Company
(the “Preferred Shares”) and thereby to assist in future equity financings of the Company, Optionee is willing to enter into this Agreement for the benefit of the Company, the Investors and any other person or entity who holds stock of the
Company from time to time. 
  
 THE PARTIES AGREE AS FOLLOWS:

  
 1. Company’s Right of First Refusal Respecting
Shares. 
  
 1.1 Right of First
Refusal. Subject to Section 1.5, in the event that the Optionee proposes to sell, pledge, or otherwise transfer any Shares, the Company shall have a right of first refusal (the “Right of First Refusal”) with respect to such
Shares. Optionee shall give a written notice (the “Transfer Notice”) to the Company describing fully any proposed transfer of Shares, including the number of Shares proposed to be transferred, the proposed transfer price, and the name and
address of the proposed transferee. The Transfer Notice shall be signed both by the Optionee and by the proposed transferee. The Company shall have the right to purchase all, but not less than all, of the Shares subject to the Transfer Notice at a
price per share equal to the lower of (i) the proposed per share transfer price, or (ii) the fair market value of a share of Common Stock of the Company, as most recently determined by the Board of Directors of the Company prior to
delivery of the Transfer Notice, by delivery of a notice of exercise of the Company’s Right of First Refusal within thirty (30) days after the date the Transfer Notice is delivered to the Company. The Company’s rights under this
Section 1. 1 shall be freely assignable, in whole or in part. 
  
 1.2 Transfer of Exercised Shares. If the Company fails to exercise the Right of First Refusal within thirty (30) days from the date the Transfer Notice is delivered to the 

 
Company, the Optionee may, not later than ninety (90) days following delivery to the Company of the Transfer Notice, conclude a transfer of the Shares
subject to the Transfer Notice on the terms and conditions described in the Transfer Notice. Any proposed transfer on terms and conditions different from those described in the Transfer Notice, as well as any subsequent proposed transfer by the
Optionee, shall again be subject to the Right of First Refusal and shall require compliance by the Optionee with the procedure described in Section 1.1 of this Agreement. If the Company exercises the Right of First Refusal, the parties shall
consummate the sale of Shares on the terms set forth in the Transfer Notice; provided, however, in the event the Transfer Notice provides for payment for the Shares other than in cash, the Company shall have the option of paying for the Shares by
the discounted cash equivalent of the consideration described in the Transfer Notice. 
  
 1.3 Binding Effect. The Right of First Refusal shall inure to the benefit of the successors and assigns of the Company and shall be
binding upon any transferee of Shares other than a transferee acquiring Shares in a transaction where the Company failed to exercise the Right of First Refusal (a “Free Transferee”) or a transferee of a Free Transferee. 
  
 1.4 Termination of the Company’s Right of First
Refusal. Notwithstanding anything in this Section 1, the Company shall have no Right of First Refusal, and Optionee shall have no obligation to comply with the procedures in Sections 1.1 through 1.3 after the earlier of (i) the
Company’s initial registered public offering of Common Stock to the public generally, or (ii) the date ten (10) years after the date of this Agreement. 
  
 1.5 Limitations to Rights. Without regard and not subject to the provisions of Sections 1.1 and 2.1;

  
 (i) The Optionee may sell or otherwise assign
for consideration Shares to any or all of his ancestors, descendants, spouse, or members of his immediate family, or to a custodian, trustee (including a trustee of a voting trust), executor, or other fiduciary for the account of his ancestors,
descendants, spouse, or members of his immediate family, provided that each such transferee or assignee, prior to the completion of the sale, transfer, or assignment, shall have executed documents assuming the obligations of the Optionee under this
Agreement with respect to the transferred securities. 
  
 (b) To the extent permitted by the Company, the Optionee may sell or transfer Shares in the first firmly underwritten public offering of securities of the Company registered under the Securities Act of 1933, as amended (the
“Act”). 
  
 2. Rights of Co-Sale. 
  
 2.1 The Rights of Investors. If at any time Optionee
proposes to sell any Shares to parties other than the Investors or their assignees or transferees (the “Eligible Holders”) in a transaction (the “Transaction”) not registered under the Act in reliance upon a claimed exemption
thereunder, then to the extent the Company has not exercised its Right of First Refusal as to any Shares being sold, any Eligible Holder (a “Selling Holder”) which notifies the Company in writing, within thirty (30) days after receipt
of the notification from the Optionee referred to in Section 2.2, shall have the opportunity to sell a pro rata portion of Shares 

  

 2 

 
which the Optionee proposes to sell to such third party in the Transaction; whereupon the Optionee shall assign so much of his interest in the agreement of
sale as the Selling Holder shall be entitled to and shall request hereunder, and the Selling Holder shall assume such part of the obligations of the Optionee under such agreement as shall relate to the sale of the Shares by the Selling Holder. For
the purposes of this Section 2, the “pro rata portion” which the Selling Holder shall be entitled to sell shall be an amount of shares equal to the total amount of Shares proposed to be sold multiplied by a fraction, the numerator of
which is the number of shares of Common Stock issuable upon conversion of the Preferred Shares and shares of Common Stock owned by a Selling Holder, and the denominator of which is the total number of such shares owned by all participating Selling
Holders and the Optionee. Each Selling Holder shall notify the Optionee whether it elects to sell an amount equal to, more than or less than its pro rata portion of the Shares so offered. Each Selling Holder shall be entitled to apportion Shares to
be sold among its partners and affiliates, provided that such Selling Holder notifies the Company of such allocation. 
  
 2.2 Notice. Prior to any sale by the Optionee of any Shares, the Optionee shall notify each Eligible Holder and the Company, in
writing, of his intention to sell such securities, setting forth the general terms under which he proposes to make such sale. Such notice shall be signed by the third parties, or a representative of such third parties, or shall be accompanied by a
letter of intent signed by the third parties or representatives of such third parties, to whom the sale, assignment or transfer is proposed and shall indicate the third parties’ concurrence with the description of the terms. 
  
 2.3 Failure to Notify. If within thirty
(30) days after the Optionee gives his notice to the Eligible Holders, the Eligible Holders do not notify the Company that they desire to sell all of their pro rata portion of the Shares described in such notice at the price and on the terms
and conditions set forth therein, then the Optionee may, not later than ninety (90) days following delivery of the notice under Section 2.2, as to the Shares to which the Eligible Holders do not indicate a desire to sell, conclude a
transfer on the terms and conditions described in the notice. In the event the Optionee has not sold the Shares or entered into an agreement to sell the Shares within such ninety (90) days, the Optionee shall not thereafter sell any Shares
without first notifying the Eligible Holders and the Company in the manner provided above. The exercise or non-exercise of the right to participate in one or more sales of Shares made by the Optionee shall not adversely affect an Eligible
Holder’s right to participate in subsequent sales of Shares by the Optionee pursuant to Section 2.1 hereof. 
  
 2.4 Termination. The obligations of the Optionee under this Section 2 shall terminate and be of no further force and effect
upon the occurrence the earlier of the two events described in subsection 1.4 of this Agreement. 
  
 3. Market Standoff. Optionee hereby agrees that if so requested by the Company or any representative of the underwriters in connection with any
registration of the offering of any securities of the Company under the Act, Optionee shall not sell or otherwise transfer any Shares for a period of one hundred eighty (180) days following the effective date of a Registration Statement filed
under the Act; provided, however, that such restriction shall apply only to the first two Registration Statements of the Company to become effective under the Act which include securities to be sold on behalf of the Company to the public in an
underwritten 

  

 3 

 
public offering under the Act. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the
end of such one hundred eighty (180) day period. 
  
 4.
Company’s Right to Repurchase Upon Termination of Engagement. 
  
 4.1 Repurchase Right. The Shares shall be subject to a right (but not obligation) of repurchase in favor of the Company (the “Right of Repurchase”). If the Optionee’s employment with the Company
or its parent or subsidiary corporations (or, in the case of a director, consultant or adviser who is not an employee, the Optionee’s directorship or consulting or advising arrangement, as the case may be) terminates for any reason whatsoever
(the “Engagement Termination”) before the Right of Repurchase expires in accordance with Schedule 1 hereto, the Company may purchase Shares subject to the Right of Repurchase at a purchase price per share equal to the purchase price per
share paid by the Optionee for the Shares (exclusive of any taxes paid upon acquisition of the stock). The Optionee may not dispose of or transfer any Shares while such Shares are subject to the Right of Repurchase and any such attempted transfer
shall be null and void. The Company’s rights under this Section 4.1 shall be freely assignable, in whole or in part. 
  
 4.2 Repurchase Procedure. The Company’s Right of Repurchase shall terminate if not exercised by written notice from the
Company to the Optionee within ninety (90) days from the date on which the Company learns of the Engagement Termination. If the Company exercises its Right of Repurchase, the Optionee shall promptly endorse and deliver to the Company the stock
certificates representing the Shares being repurchased, and the Company shall then pay promptly (but in no event later than ninety (90) days after the date of Engagement Termination), pursuant to the provisions of Section 4.3 of this
Agreement, the total repurchase price to the Optionee. 
  
 4.3 Repurchase Payment. If, at the time of repurchase, any notes are outstanding which represent any portion of the total purchase price for Shares being so repurchased, the repurchase price shall be paid first by cancellation of any
obligation for accrued but unpaid interest under such notes, next by cancellation of principal under such notes, and finally by payment of cash or check. 
  
 4.4 Binding Effect. The Company’s Right of Repurchase shall inure to the benefit of the successors and assigns of the Company
and shall be binding upon the Optionee and any representative, executor, administrator, heir, or legatee of the Optionee. 
  
 5. Taxes. Concurrently with the exercise of the Option to which this Agreement is an exhibit, the Optionee shall execute and deliver to the Company
(i) a copy of the Acknowledgment and Statement of Decision Regarding Election Pursuant to Section 83(b) of the Internal Revenue Code (the “Acknowledgement”) attached hereto as Exhibit 5A; and (ii) a copy of the Election
Pursuant to Section 83(b) of the Code, attached hereto as Exhibit 5B, if the Optionee has indicated in the Acknowledgment his or her decision to make such an election. The Optionee should consult his or her own tax advisor to determine if there
is a comparable election to file in the state of his or her residence and whether such filing is desirable under the circumstances. The Company may withhold from the Optionee’s wages, or require the Optionee 

  

 4 

 
to pay to the Company, any applicable withholding or employment taxes resulting from the lapse of any restrictions imposed on the Shares. 
  
 6. Stock Certificate Restrictive Legends. Stock certificates
evidencing Shares may bear such restrictive legends as the Company and the Company’s counsel deem necessary or advisable under applicable law or pursuant to this Agreement, including, without limitation, the following legends: 
  
 “THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO A RIGHT OF FIRST
REFUSAL BY THE COMPANY AND A RIGHT OF CO-SALE ON THE PART OF CERTAIN STOCKHOLDERS PURSUANT TO THE PROVISIONS OF AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL PURCHASER OF SUCH SECURITIES RELATING TO SUCH SECURITIES, AND MAY NOT BE SOLD OR
OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF SUCH AGREEMENT.” 
  
 “THE SECURITIES REPRESENTED HEREBY MAY BE SUBJECT TO A RIGHT OF REPURCHASE BY THE COMPANY, PURSUANT TO THE PROVISIONS OF AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL PURCHASER OF SUCH SECURITIES RELATING TO
SUCH SECURITIES SHOULD THE PERSON INITIALLY ISSUED THESE SECURITIES CEASE TO BE EMPLOYED BY OR ENGAGED AS A CONSULTANT OR ADVISOR TO THE COMPANY OR ANY AFFILIATE THEREOF.” 
  
 “THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO RESTRICTIONS ON TRANSFER FOR A PERIOD OF 180 DAYS FOLLOWING THE
EFFECTIVE DATE OF A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, FOR AN OFFERING OF THE COMPANY’S SECURITIES AS MORE FULLY PROVIDED IN THE AGREEMENT RELATING TO THE OPTION TO PURCHASE SUCH SECURITIES BETWEEN THE COMPANY
AND THE ORIGINAL PURCHASER OF SUCH SECURITIES.” 
  
 7.
Binding Effect. Subject to the limitations set forth in this Agreement, this Agreement shall be binding upon, and inure to the benefit of, the executors, administrators, heirs, legal representatives, successors, and assigns of the parties
hereto. 
  
 8. Damages. Optionee shall be liable to the
Company for all costs and damages, including incidental and consequential damages, resulting from a disposition of Shares which is not in conformity with the provisions of this Agreement. 
  

 5 

 9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of California applicable to contracts entered into and wholly to be performed within the State of California by California residents. The parties agree that the exclusive jurisdiction and venue of any action with respect to this
Agreement shall be in the Superior Court of California for the County of Orange or the United States District Court for the Central District of California, and each of the parties hereby submits itself to the exclusive jurisdiction and venue of such
courts for the purpose of such action. The parties agree that service of process in any such action may be effected by delivery of the summons to the parties in the manner provided for delivery of notices set forth in Section 10. 
  
 10. Notices. All notices and other communications under this Agreement
shall be in writing. Unless and until Optionee is notified in writing to the contrary, all notices, communications and documents directed to the Company and related to the Agreement, if not delivered by hand, shall be mailed, addressed as follows:

  

					
	 	 	 NOVACEA, INC.
 601 Gateway Boulevard, Suite 800
 South San Francisco, CA 94080
 Attention: President
	 	 

  
 Unless and until the Company is
notified in writing to the contrary, all notices, communications and documents intended for Optionee and related to this Agreement, if not delivered by hand, shall be mailed to Optionee’s last known address as shown on the Company’s books.
Notices and communications shall be mailed by registered or certified mail, return receipt requested, postage prepaid. All notices related to this Agreement shall be deemed received upon delivery or, if mailed, within five (5) days after
mailing in accordance with this Section 10. 
  
 IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 
  

			
	 NOVACEA, INC.

		
	 By:   
	 	 

			
	 	 	 Bradford S. Goodwin,

	 	 	 Chief Executive Officer

  
 Optionee hereby
accepts and agrees to be bound by all of the terms and conditions of this Agreement. 
  

			
		
	 Optionee:
	 	 
	 	 	 (Name)

  

 6 

 Optionee’s spouse indicates by the execution of this Agreement her consent to be bound by the terms
herein as to her interests, whether as community property or otherwise, if any, in the Shares. 
  

			
		
	 Optionee’s Spouse
	 	 

  

 7 

 EXHIBIT 5A 
  
 ACKNOWLEDGMENT AND STATEMENT 
  

OF DECISION REGARDING ELECTION 
  
 PURSUANT TO SECTION 83(b) OF 
  
 THE INTERNAL REVENUE CODE 
  
 The undersigned (which term includes the undersigned’s spouse), a holder of shares of common stock of NOVACEA, INC., a Delaware corporation (the
“Company”), hereby states as follows: 
  
 1. The
undersigned acknowledges receipt of a copy of the Company’s Optionee Restriction Agreement (the “Agreement”). The undersigned has carefully reviewed the Agreement. 
  
 2. The undersigned either [check as applicable]: 
  
  ̈
(a) has consulted, and has been fully advised by, the undersigned’s own tax advisor, ____________________________, whose business address is __________________________________________, regarding the federal, state and local tax
consequences of entering into the Agreement, and particularly regarding the advisability of making elections pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), and pursuant to the corresponding
provisions, if any, of applicable state laws; or 
  
  ̈ (b) as knowingly chosen not to consult such a tax advisor. 
  
 3. The undersigned hereby states that the undersigned has decided [check as applicable]: 
  
  ̈ (a) to make an election pursuant to Section 83(b) of the Code, and is submitting to the Company, together with the undersigned’s executed Agreement, an executed form
which is attached as Exhibit 5B to the Agreement; or 
  
  ̈ (b) not to make an election pursuant to Section 83(b) of the Code. 
  
 4. Neither the Company nor any subsidiary or representative of the Company
had made any warranty or representation to the undersigned with respect to the tax consequences of the Agreement or of the making or failure to make an election pursuant to Section 83(b) of the Code or the corresponding provisions, if any, of
applicable state law. 

 5. The undersigned is also submitting to the Company an executed original of an election, if any is made,
of the undersigned pursuant to provisions of state law corresponding to Section 83(b) of the Code, if any, which are applicable to the undersigned’s purchase of shares under the Agreement. 
  

					
	 Date:_____________________, 20___
	 	 	 	 
	  	 	 	 	 Signature

			
	  	 	 	 	  
	 	 	 	 	 Print Name

			
	 Date:_____________________, 20___
	 	 	 	 
	  	 	 	 	 Signature

			
	  	 	 	 	  
	 	 	 	 	 Print Name

  

 2 

 EXHIBIT 5B 
  
 ELECTION PURSUANT TO SECTION 83(b) OF THE 
  
 INTERNAL REVENUE CODE 
  
 The undersigned hereby elects pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), to include in the
undersigned’s gross income the excess (if any) of (x) the fair market value of the property described below, over (y) the amount the undersigned paid for such property plus, if the shares to which this election relates were acquired
by exercise of an “incentive stock option” within the meaning of Section 422 of the Code, the amount excluded from the undersigned’s income pursuant to Sections 421 and 422 of the Code. This election is made to the same effect,
and with the same limitations, with respect to the analogous provisions of Sections 83(b) (and, if applicable, Sections 421 and 422) of the Code under any applicable state statute. Pursuant to applicable Treasury Regulations the following
information is provided: 
  
 1. The undersigned’s name,
address and taxpayer identification (social security) number are: 
  
 Name:_____________________________________ 
  
 Address:_____________________________________ 
  
 Social
Security #:__________________________________ 
  
 2. The property
with respect to which the election is made consists of ___________ shares of Common Stock of NOVACEA, INC., a Delaware corporation (the “Company”). 
  
 3. The date on which the above property was transferred to the undersigned was ___________, 20__, and
the taxable year to which this election relates is 20__. 
  
 4. The above property is subject to the following restrictions: (a) a right of repurchase by the Company at the initial purchase price, if the undersigned ceases to be an employee of, or a consultant to, the Company or an affiliate of
the Company; and (b) a right of first refusal by the Company should the undersigned wish to transfer the shares to a person or entity other than the Company. 
  
 5. The fair market value of the above property at the time of transfer (determined without regard to any restrictions other
than those which by their terms will never lapse) is $_________ per share. 
  
 6. The amount paid for the above property by the undersigned was $_________ per share. 
  
 7. A copy of this election has been furnished to the Company, and a copy will be filed with the income tax return of the undersigned to which this
election relates. 

 8. If the shares to which this election relates were acquired by exercise of an “incentive stock
option” within the meaning of Section 422 of the Code, this election is protective only, is made solely to bar application of Section 83(a) of the Code, and is not an election of the undersigned actually to recognize income which
apart from this election is protected from recognition by Sections 421 and 422 of the Code. However, the undersigned does intend for this election to be an effective election under Section 83(b) of the Code for all purposes of the Alternative
Minimum Tax, and in particular for purposes of computing the adjustment described in Section 56(b)(3) of the Code. 
  
 If the shares to which this election relates were acquired by exercise of an incentive stock option, the amount expressly excluded from income pursuant to
Sections 421 and 422 of the Code is $_________. per share. 
  
 Date: ___________________, 20__. 
  

	
	
	 

  

 2 

 SCHEDULE 1 OF THE 
 OPTIONEE STOCK RESTRICTION 
 AGREEMENT 
  
 The Option shall vest and/or the Right of Repurchase shall expire on
March 29, 2005 with respect to 1/4th of the total number of shares acquired or to be acquired, and thereafter with respect to an additional 1/48th of the total remaining number of shares on the 1st day of each of the immediately following
calendar months. 
  
 Change in Control. In the event of a
Change in Control (as such term is defined below), then the Option shall vest and/or the Right of Repurchase shall expire with respect to fifty percent (50%) of the shares of Common Stock subject thereto. Thereafter, the Option shall vest
and/or the Right of Repurchase shall expire with respect to any unvested shares of Common Stock remaining subject thereto in equal monthly installments over the number of months remaining of the thirty-six (36) month period provided for in the
preceding paragraph. For example, assume at the time immediately prior to a Change in Control (i) the number of shares of Common Stock subject to the Option and/or Right of Repurchase is seventy-two (72) shares and (ii) the Option is
vesting and/or the Right of Repurchase is expiring, as applicable, monthly such that the Option will vest and/or the Right of Repurchase will expire with respect to two (2) shares each month over the next thirty-six (36) months. In such
event, upon a Change in Control (A) the Option shall vest and/or the Right of Repurchase shall expire with respect to thirty-six (36) of such shares immediately, and (B) the Option shall continue to vest and/or the Right of Repurchase
shall continue to expire in equal monthly installments with respect to the remaining thirty-six (36) shares of Common Stock subject to the Option and/or Right of Repurchase for the remainder of the thirty-six (36) month period provided for
in the preceding paragraph (i.e., the Option shall vest and/or the Right of Repurchase shall expire with respect to one (1) share per month). In addition, in the event of a Change in Control, if within the period beginning on the first
(1st) day of the calendar month immediately preceding the calendar month in which the effective date of such Change in Control occurs and ending on the last day of the thirteenth (13th) calendar month following the calendar month in which
the effective date of Change in Control occurs, the Optionee’s employment with or service to the Company terminates due to an involuntary termination thereof by the Company (or any successor) without Cause (as such term is defined below) (not
including a termination as a result of the Optionee’s death or disability) or due to a Constructive Termination (as such term is defined below), then the Option shall vest and/or the Right of Repurchase shall expire in full with respect to all
shares of Common Stock subject thereto as of the date of such termination of the Optionee’s employment or service. 
  
 Death. In the event of the Option Holder’s termination of employment with or service to the Company or its parent or subsidiary corporations
as a result of the Option Holder’s death, then the Option shall vest and/or the Right of Repurchase shall expire in full with respect to all shares of Common Stock subject thereto as of the date of the Option Holder’s death. 
  
 For purposes of this Schedule 1 only: 
  
 (a) “Cause” for the Optionee’s termination will exist at any
time after the happening of one or more of the following events, in each case as determined in good faith by the Company’s Board of Directors: 
  
 (i) The Optionee’s gross negligence or willful misconduct in the performance of his or her duties to the Company; 

 (ii) The Optionee’s repeated or unjustified absence from the Company; 
  
 (iii) The Optionee’s commission of any act of fraud
with respect to the Company; 
  
 (iv) The
Optionee’s conviction of or plea of guilty or nolo contendere to felony criminal conduct or a crime involving moral turpitude; or 
  
 (v) The Optionee’s violation of any noncompetition or confidentiality agreement that Optionee has entered into with the Company.

  
 (b) “Change in Control” means: (i) a sale,
lease or other disposition of all or substantially all of the assets of the Company; (ii) a merger or consolidation in which the Company is not the surviving entity and in which the holders of the Company’s outstanding voting stock
immediately prior to such transaction own, immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the entity surviving such transaction or the surviving entity’s parent;
(iii) a reverse merger in which the Company is the surviving entity but the shares of Common Stock outstanding immediately prior to the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or
otherwise, and in which the holders of the Company’s outstanding voting stock immediately prior to such transaction own, immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the
Company or the Company’s parent entity immediately after such transaction; or (iv) after the Listing Date (as such term is defined below), an acquisition by any person, entity or group within the meaning of Section 13(d) or 14(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any comparable successor provisions (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or subsidiary of the Company or
other entity controlled by the Company) of the beneficial ownership (within the meaning of Rule l3d-3 promulgated under the Exchange Act, or comparable successor rule) of securities of the Company representing at least fifty percent (50%) of
the combined voting power entitled to vote in the election of Directors; provided, however, that clauses (ii) and (iii) of this paragraph shall not apply to a merger effected exclusively for the purpose of changing the domicile of the
Company. 
  
 (c) “Constructive Termination” means
Optionee’s voluntary resignation following (i) any reduction in the Optionee’s level of base salary, or (ii) a relocation of the Optionee’s principal place of employment by more than fifty (50) miles (other than
reasonable business travel required as part of the job duties associated with the Optionee’s position), provided, and only in the event that, such change, reduction or relocation is effected by the Company without cause and without the
Optionee’s consent. 
  

 2 

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

									
	 Initialed by:
	 	 	 	NOVACEA, INC.
					
	 	 	 	 	 	 	 By:
	 	 

									
	 	 	 	 	 	 	 	 	 Bradford S. Goodwin,

	 	 	 	 	 	 	 	 	 Chief Executive Officer

									
					
	 	 	 	 	 	 	 Optionee:
	 	 
	 	 	 	 	 	 	 	 	 (Name)

  

 3 

 NON-QUALIFIED STOCK OPTION
AGREEMENT 
  
 THIS STOCK
OPTION AGREEMENT (the “Agreement”), made as of _______, 200__, by and between Novacea, Inc., a Delaware corporation (the “Company”), and _________ (the “Option Holder”), is made with reference to the following facts:

  
 A. The Company is desirous of providing additional incentives
to the Option Holder in rendering services to and on behalf of the Company and its parent and subsidiary corporations and, in order to accomplish this result, has determined to grant the Option Holder the right and option to purchase shares of
Common Stock, $.001 par value, of the Company (the “Common Stock”) pursuant to the Company’s 2001 Stock Option Plan (the “Plan”) on the terms and conditions set forth herein. 
  
 B. The Option Holder is desirous of accepting said stock option on the terms
and conditions set forth herein. 
  
 NOW, THEREFORE, it is agreed
as follows: 
  
 1. Grant. The Company hereby grants to the
Option Holder the right and option to purchase, on the terms and conditions hereinafter set forth (the “Option”), all or any part of an aggregate of ______________ (_____) shares of the Common Stock at the purchase price of ____________
cents ($0.__) per share (the “Exercise Price”), exercisable from time to time in accordance with the provisions of this Agreement and the Plan pursuant to which this Agreement is being executed during a period expiring at the close of
business ten (10) years from the date of this Agreement (the “Expiration Date”). This Option is not intended to be an incentive stock option. This Option will not be treated as an incentive stock option as defined in Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”), and any regulations promulgated thereunder. 
  
 2. Exercise of Option. 
  
 (a) In order to exercise this Option, Option Holder shall take all of the following actions: (i) delivering or mailing to the
Company, Attention: Corporate Secretary, a notice of exercise, in the form specified by the Company, specifying therein the number of shares of Common Stock he has elected to purchase, accompanied by (A) payment in cash or by check payable to
the order of the Company for the Exercise Price multiplied by the number of shares to be purchased, and (B) if required, the letter described in Paragraph 6; (ii) making appropriate arrangements with the Company for the satisfaction of the
withholding requirements set forth in Paragraph 8 hereof; and (iii) executing and delivering to the Company the Acknowledgment and Statement of Decision Regarding Election Pursuant to Section 83(b) and a copy of the executed Election
Pursuant to Section 83(b) if applicable, in accordance with Section 5 of the Optionee Restriction Agreement attached hereto as Exhibit “A” and being executed concurrently herewith. Notwithstanding the foregoing, the aggregate
purchase price to be paid upon any exercise of this Option may, if permissible under applicable state law and in the discretion of the Board of Directors of the Company (the “Board”), be paid (1) in installments or in whole or in part
by a promissory note of the Option Holder (in a form reasonably satisfactory to the Company) and secured by a security interest in the shares issued upon such exercise 

  

 4 

 
(provided, however, that an amount equal to the par value of the Common Stock multiplied by the number of shares being issued upon exercise shall be paid in
cash) and/or (2) in whole or in part by delivery to the Company of shares of Common Stock previously acquired by the Option Holder having a Fair Market Value (determined as of the date of exercise of this Option and in the manner set forth in
the Plan) equal to the portion of the aggregate purchase price being paid by delivery of such shares and, in the case of (1) or (2), if and to the extent applicable, cash or a check (or, in the case of (2) only, a note) made payable to the
Company for any remaining portion of the aggregate purchase price. If so requested by the Board, prior to the acceptance of shares of Common Stock in satisfaction (in whole or in part) of the purchase price upon such exercise of this Option, the
Option Holder shall supply the Board with written representations and warranties, including without limitation a representation and warranty that the Option Holder has good and marketable title to such shares, free and clear of liens and
encumbrances. The exercise of this Option shall not be deemed effective unless and until the Option Holder has complied with all of the provisions of this Paragraph 2(a). No partial exercise of this Option may be for less than One Hundred
(100) shares and, in no event, shall the Company be required to issue fractional shares. 
  
 (b) This Option shall be immediately exercisable in full as to all of the shares covered hereby, conditioned upon the Option Holder
entering into the Optionee Restriction Agreement attached hereto as Exhibit “A” with respect to any unvested shares. The shares subject to this Option shall vest and/or be released from the Company’s Right of Repurchase, as set forth
in the Optionee Restriction Agreement, according to the schedule set forth on Schedule 1 to the Optionee Restriction Agreement. 
  
 3. Termination. The unexercised portion of this Option shall automatically and without notice terminate and become null and void at the time of the
earliest to occur of the following: 
  
 (a) The
Expiration Date; 
  
 (b) The expiration of ninety
(90) days from the date of termination of the Option Holder’s employment with the Company or its parent or subsidiary corporations (or, in the case of a director, consultant or adviser who is not an employee, within ninety (90) days
from the date of termination of the Option Holder’s directorship or consulting or advising arrangement, as the case may be) (other than a termination described in subparagraphs (d) or (e) below or on account of death); provided that
if the Option Holder shall die during such ninety (90) day period, the provisions of subparagraph (c) below shall apply; 
  
 (c) The expiration of eighteen (18) months following the date of the Option Holder’s death, if such death occurs during the
Option Holder’s employment with the Company or its parent or subsidiary corporations (or, in the case of a director, consultant or adviser who is not an employee, within eighteen (18) months from the date of termination of the Option
Holder’s directorship or consulting or advising arrangement, as the case may be); 
  
 (d) The expiration of one (1) year from the date of termination of the Option Holder’s employment with the Company or its parent
or subsidiary corporations (or, in the case of a director, consultant or adviser who is not an employee, within one (1) year from the 

  

 5 

 
date of termination of the Option Holder’s directorship or consulting or advising arrangement, as the case may be) if such termination is attributable
to a disability of the Option Holder within the meaning of Section 22(e)(3) of the Code. The Board shall have the right to determine whether the Option Holder’s termination is attributable to a disability of the Option Holder within the
meaning of Section 22(e)(3) of the Code, such determination of the Board to be final and conclusive; 
  
 (e) Upon the termination of the Option Holder’s employment with the Company or its parent or subsidiary corporations (or, in the case
of a director, consultant or adviser who is not an employee, within one (1) year from the date of termination of the Option Holder’s directorship or consulting or advising arrangement, as the case may be) if such termination is for Cause
(as defined below). The Board shall have the right to determine whether the Option Holder has been discharged for Cause and the date of such discharge; such determination of the Board to be final and conclusive. “Cause” for the Option
Holder’s termination will exist at any time after the happening of one or more of the following events, in each case as determined in good faith by the Company’s Board of Directors: 
  
 (i) The Option Holder’s gross negligence or willful
misconduct in the performance of his or her duties to the Company; 
  
 (ii) The Option Holder’s repeated or unjustified absence from the Company; 
  
 (iii) The Option Holder’s commission of any act of fraud with respect to the Company; 
  
 (iv) The Option Holder’s conviction of or plea of
guilty or nolo contendere to felony criminal conduct or a crime involving moral turpitude; or 
  
 (v) The Option Holder’s violation of any noncompetition or confidentiality agreement that the Option Holder has entered into with the
Company. 
  
 Nothing contained herein or in the Plan shall
obligate the Company or its parent or subsidiary corporations to continue to engage the Option Holder as an employee, consultant or advisor or in any other capacity with the Company, nor confer upon the Option Holder any right to continue in such
employment or engagement or in any other capacity with the Company or its parent or subsidiary corporations, nor limit in any way the right of the Company or its parent or subsidiary corporations to amend, modify or terminate his compensation,
employment or engagement at any time. 
  
 4.
Non-Assignability. This Option and the rights and privileges granted hereby shall not be transferred other than by will or by the laws of descent and distribution. Upon any attempt to transfer this Option or any right or privilege granted
hereby other than by 

  

 6 

 
will or by the laws of descent and distribution and contrary to the provisions hereof, this Option and said rights and privileges shall immediately become
null and void. 
  
 5. Anti-Dilution. In the event that the
shares of Common Stock subject to this Option shall be changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another corporation (whether by reason of merger, consolidation,
recapitalization, reclassification, split-up, combination of shares, or otherwise) or if the number of such shares of Common Stock shall be increased solely through the payment of a stock dividend, then there shall be substituted for or added to
each share of stock of the Company theretofore appropriated or thereafter subject to this Option the number and kind of shares of stock or other securities into which each outstanding share of stock of the Company shall be so changed, or for which
each such share shall be exchanged, or to which each such share shall be entitled, as the case may be. This Option shall also be appropriately amended as to Exercise Price and other terms as may be necessary to reflect the foregoing events. In the
event there shall be any other change in the number or kind of the outstanding shares of stock of the Company subject to this Option, or of any stock or other securities into which such stock shall have been changed, or for which it shall have been
exchanged, then if the Board, in its sole discretion, determines that such change equitably requires an adjustment in this Option, such adjustments shall be made in accordance with such determination. The Option Holder understands that if,
subsequent to the date of this Agreement, the Company issues additional shares of the Company’s securities, the percentage ownership of the Company represented by the number of shares of Common Stock subject to this Option will be
proportionately reduced by each such issuance and that the number of shares covered hereby and the Exercise Price shall not be adjusted except as otherwise set forth in this Agreement. 
  
 Fractional shares resulting from any adjustment in this Option pursuant to this Paragraph 5 shall be eliminated. Notice of
any adjustment shall be given by the Company to the Option Holder, such adjustment (whether or not such notice is given) to be final and conclusive for all purposes hereof. 
  
 6. Securities Law. The shares of Common Stock subject to this Option have not been registered under the Securities
Act of 1933, as amended (the “Act”), or registered or qualified under any applicable state securities laws. Accordingly, the Option Holder agrees that he will take any shares of Common Stock acquired pursuant to the exercise hereof in good
faith for purposes of investment and without a view to any distribution thereof in violation of the Act and the rules and regulations promulgated thereunder (or such applicable state securities laws). The Option Holder understands that the Company
will be relying upon the truth and accuracy of this representation in issuing the Common Stock without first registering the issuance thereof under the Act or under applicable state securities laws. The Option Holder acknowledges that he is aware
that the Common Stock issuable upon exercise hereof has not been registered (and there is no obligation on behalf of the Company to register such shares) under the Act (or such applicable state securities laws) and that such Common Stock will not be
freely tradeable and must be held by him indefinitely or until such time, if any, as herein provided and until such Common Stock is either registered under the Act or transfers may be made pursuant to an exemption from such registration as is
accorded by the Act or the rules and regulations promulgated thereunder (and such applicable state securities laws). In this regard, the Option Holder acknowledges that he is also aware that, if the exemption under Rule 144 of the rules and 

  

 7 

 
regulations promulgated under the Act becomes applicable to the Common Stock, shares of the Common Stock may be sold pursuant to said Rule only
(i) following the filing of any required reports by the Company under the Securities and Exchange Act of 1934, as amended, (ii) after the minimum holding period specified in said Rule has been satisfied, and (iii) thereafter, only in
limited amounts in the manner prescribed in said Rule. 
  
 The
Option Holder agrees that at the time of any exercise hereunder, he will provide the Company with a letter embodying the aforementioned expressions of understanding and intent and agrees that any shares issued to him following the exercise of any
option arising hereunder may bear such restrictive legend as the Company may deem necessary to reflect the status of such shares under the Act (and such applicable state securities laws). Before consenting to the removal of such legend and the
transfer of any such shares, the Company may insist upon the delivery to it of an opinion from counsel, satisfactory to it, that the contemplated transfer does not constitute a violation of the Act (or such applicable state securities laws).

  
 Notwithstanding the foregoing, the provisions of this
Paragraph 6 shall be suspended and be of no force or effect during any period during which the shares of Common Stock subject to this Option are registered under the Act. 
  
 7. Rights as a Stockholder. Neither the Option Holder nor any other person legally entitled to exercise this Option
shall be entitled to any of the rights or privileges of a stockholder of the Company in respect to any shares issuable upon any exercise of this Option unless and until a certificate or certificates representing such shares shall have been actually
issued and delivered to him. 
  
 8. Withholding,
Obligations. 
  
 (a) The Option Holder hereby
authorizes withholding from payroll and any other amounts payable to the Option Holder at the time the Option Holder exercises this Option, in whole or in part, or at any time thereafter as requested by the Company, and the Option Holder otherwise
agrees to make adequate provision for any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or an Affiliate (as defined in the Plan), if any, which arise in connection with the exercise of this
Option. 
  
 (b) Upon the Option Holder’s
request and subject to approval by the Company, in its sole discretion, and compliance with any applicable conditions or restrictions of law, the Company may withhold from fully vested shares of Common Stock otherwise issuable to the Option Holder
upon the exercise of this Option a number of whole shares of Common Stock having a Fair Market Value (determined as of the date of exercise of this Option and in the manner set forth in the Plan) not in excess of the minimum amount of tax required
to be withheld by law. If the date of determination of any tax withholding obligation is deferred to a date later than the date of exercise of this Option, share withholding pursuant to the preceding sentence shall not be permitted unless the Option
Holder makes a proper and timely election under Section 83(b) of the Internal Revenue Code, covering the aggregate number of shares of Common Stock acquired upon such exercise with respect to which such determination is otherwise deferred, to
accelerate the determination of such tax withholding obligation to the date of exercise of this Option. Notwithstanding the filing of such election, shares of Common Stock 

  

 8 

 
shall be withheld solely from fully vested shares of Common Stock determined as of the date of exercise of this Option that are otherwise issuable to the
Option Holder upon such exercise. Any adverse consequences to the Option Holder arising in connection with such share withholding procedure shall be the Option Holder’s sole responsibility. 
  
 (c) Notwithstanding any provision herein to the contrary,
the Option Holder may not exercise this Option unless the tax withholding obligations of the Company and/or any Affiliate are satisfied. Accordingly, the Option Holder may not be able to exercise this Option when desired even though this Option is
vested, and the Company shall have no obligation to issue a certificate for such shares of Common Stock. 
  
 9. Notices. Whenever under this Agreement notice is required to be given in writing, it shall be deemed to have been duly given upon personal
delivery, upon deposit with an air courier guaranteeing overnight delivery, or two (2) days after deposit in mail if mailed by registered or certified mail, postage prepaid, to the Company at the address set forth below or to Option Holder at
the address set forth on the last page hereof (or to such other address as either party shall have indicated to the other party by notice in accordance with this Paragraph): 
  

			
	Company:	  	NOVACEA, INC.
	 	  	601 Gateway Boulevard, Suite 800
	 	  	South San Francisco, CA 94080

  
 10. Benefit.
Except as otherwise specifically provided herein, this Agreement shall be binding upon and shall operate for the benefit of the Company and the Option Holder and his Successors (as defined in the Plan). 
  
 11. GOVERNING LAW. THIS AGREEMENT AND ANY RIGHTS AND OBLIGATIONS
ARISING HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. 
  
 12. Entire Agreement. This Agreement, the Plan and the Optionee Restriction Agreement (as defined below) together represent the entire agreement
between the parties hereto regarding the options on the Company’s Common Stock granted hereunder and supersede any and all previous written or oral agreements or discussions between the parties and any other person or legal entity concerning
the transactions contemplated herein or therein. Except as otherwise expressly provided herein, this Agreement cannot be amended or modified except by a written instrument executed by the parties hereto. 
  
 13. Construction. The headings of the Paragraphs are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement. If any of the provisions of this Agreement shall be unlawful, void or for any reason unenforceable, they shall be deemed separable from, and shall in no
way affect the validity or enforceability of, the remaining provisions of this Agreement. 
  
 14. Interpretation. In interpreting any provision of this Agreement, the masculine shall include the feminine and neuter, and vice versa and the singular shall include the plural, and vice versa. 
  

 9 

 15. Further Acts. The parties hereto agree to execute and deliver such further instruments as may
be reasonably necessary to carry out the intent of this Agreement. 
  
 16. Optionee Restriction Agreement. Concurrently herewith, Option Holder has executed and delivered to the Company an Optionee Restriction Agreement in substantially the form of Exhibit “A” to this Agreement (the
“Optionee Restriction Agreement”). 
  

 10 

 IN WITNESS WHEREOF, the parties have executed this Stock Option Agreement as of the day and year first
above written. 
  

									
	 NOVACEA, INC.
	 	 	 	 	 	 OPTION HOLDER:

					
	 By:
	 	 	 	 	 	 	 	 
	 	 	 Bradford S. Goodwin,
	 	 	 	 	 	 (Name)

	 	 	 Chief Executive Officer
	 	 	 	 	 	 
				
	 	 	 	 	 	 	Address for Notice:
				
	 	 	 	 	 	 	 
				
	 	 	 	 	 	 	 
				
	 	 	 	 	 	 	 

  

 11 

 CONSENT OF SPOUSE 
  
 The undersigned, the spouse of the Option Holder under the foregoing Stock Option Agreement (“Agreement”), does
hereby consent to and approve of each of the terms and conditions of the Agreement and agrees that the undersigned’s interest in the Agreement and the shares of Common Stock issuable upon exercise of the option granted thereunder are subject to
such terms and conditions. 
  
 Dated as of
                                        
                     
  

	
	
	 

  

 12 

 EXHIBIT A 
  
 NOVACEA, INC. 
  
 OPTIONEE RESTRICTION AGREEMENT 
  
 THIS OPTIONEE RESTRICTION AGREEMENT (the “Agreement”) is made and entered into as of ______, 20__ between Novacea, Inc., a Delaware corporation
(the “Company”), and ________________ (“Optionee”). 
  
 RECITALS: 
  
 A. Optionee owns as of the
date hereof an option (the “Option”) granted by the Company to purchase all or any part of an aggregate of ____________ (            ) shares (the “Shares”) of
the Common Stock of the Company, par value $.001 per share, at a purchase price of ____________ cents ($0.__) per Share. The term “Shares” refers to all shares acquired or which could be acquired pursuant to such option and to all
securities received in addition thereto or in replacement thereof, pursuant to or in consequence of any stock dividend, stock split, recapitalization, merger, reorganization, exchange of shares or other similar event. 
  
 B. In order to provide assurance to certain present and future holders
(collectively, the “Investors”) of the Preferred Stock of the Company (the “Preferred Shares”) and thereby to assist in future equity financings of the Company, Optionee is willing to enter into this Agreement for the benefit of
the Company, the Investors and any other person or entity who holds stock of the Company from time to time. 
  
 THE PARTIES AGREE AS FOLLOWS: 
  
 1. Company’s Right of First Refusal Respecting Shares. 
  
 1.1 Right of First Refusal. Subject to Section 1.5, in the event that the Optionee proposes to
sell, pledge, or otherwise transfer any Shares, the Company shall have a right of first refusal (the “Right of First Refusal”) with respect to such Shares. Optionee shall give a written notice (the “Transfer Notice”) to the
Company describing fully any proposed transfer of Shares, including the number of Shares proposed to be transferred, the proposed transfer price, and the name and address of the proposed transferee. The Transfer Notice shall be signed both by the
Optionee and by the proposed transferee. The Company shall have the right to purchase all, but not less than all, of the Shares subject to the Transfer Notice at a price per share equal to the lower of (i) the proposed per share transfer price,
or (ii) the fair market value of a share of Common Stock of the Company, as most recently determined by the Board of Directors of the Company prior to delivery of the Transfer Notice, by delivery of a notice of exercise of the Company’s
Right of First Refusal within thirty (30) days after the date the Transfer Notice is delivered to the Company. The Company’s rights under this Section 1. 1 shall be freely assignable, in whole or in part. 
  
 1.2 Transfer of Exercised Shares. If the Company
fails to exercise the Right of First Refusal within thirty (30) days from the date the Transfer Notice is delivered to the 

 
Company, the Optionee may, not later than ninety (90) days following delivery to the Company of the Transfer Notice, conclude a transfer of the Shares
subject to the Transfer Notice on the terms and conditions described in the Transfer Notice. Any proposed transfer on terms and conditions different from those described in the Transfer Notice, as well as any subsequent proposed transfer by the
Optionee, shall again be subject to the Right of First Refusal and shall require compliance by the Optionee with the procedure described in Section 1.1 of this Agreement. If the Company exercises the Right of First Refusal, the parties shall
consummate the sale of Shares on the terms set forth in the Transfer Notice; provided, however, in the event the Transfer Notice provides for payment for the Shares other than in cash, the Company shall have the option of paying for the Shares by
the discounted cash equivalent of the consideration described in the Transfer Notice. 
  
 1.3 Binding Effect. The Right of First Refusal shall inure to the benefit of the successors and assigns of the Company and shall be
binding upon any transferee of Shares other than a transferee acquiring Shares in a transaction where the Company failed to exercise the Right of First Refusal (a “Free Transferee”) or a transferee of a Free Transferee. 
  
 1.4 Termination of the Company’s Right of First
Refusal. Notwithstanding anything in this Section 1, the Company shall have no Right of First Refusal, and Optionee shall have no obligation to comply with the procedures in Sections 1.1 through 1.3 after the earlier of (i) the
Company’s initial registered public offering of Common Stock to the public generally, or (ii) the date ten (10) years after the date of this Agreement. 
  
 1.5 Limitations to Rights. Without regard and not subject to the provisions of Sections 1.1 and 2.1;

  
 (i) The Optionee may sell or otherwise assign
for consideration Shares to any or all of his ancestors, descendants, spouse, or members of his immediate family, or to a custodian, trustee (including a trustee of a voting trust), executor, or other fiduciary for the account of his ancestors,
descendants, spouse, or members of his immediate family, provided that each such transferee or assignee, prior to the completion of the sale, transfer, or assignment, shall have executed documents assuming the obligations of the Optionee under this
Agreement with respect to the transferred securities. 
  
 (b) To the extent permitted by the Company, the Optionee may sell or transfer Shares in the first firmly underwritten public offering of securities of the Company registered under the Securities Act of 1933, as amended (the
“Act”). 
  
 2. Rights of Co-Sale. 
  
 2.1 The Rights of Investors. If at any time Optionee
proposes to sell any Shares to parties other than the Investors or their assignees or transferees (the “Eligible Holders”) in a transaction (the “Transaction”) not registered under the Act in reliance upon a claimed exemption
thereunder, then to the extent the Company has not exercised its Right of First Refusal as to any Shares being sold, any Eligible Holder (a “Selling Holder”) which notifies the Company in writing, within thirty (30) days after receipt
of the notification from the Optionee referred to in Section 2.2, shall have the opportunity to sell a pro rata portion of Shares 

  

 2 

 
which the Optionee proposes to sell to such third party in the Transaction; whereupon the Optionee shall assign so much of his interest in the agreement of
sale as the Selling Holder shall be entitled to and shall request hereunder, and the Selling Holder shall assume such part of the obligations of the Optionee under such agreement as shall relate to the sale of the Shares by the Selling Holder. For
the purposes of this Section 2, the “pro rata portion” which the Selling Holder shall be entitled to sell shall be an amount of shares equal to the total amount of Shares proposed to be sold multiplied by a fraction, the numerator of
which is the number of shares of Common Stock issuable upon conversion of the Preferred Shares and shares of Common Stock owned by a Selling Holder, and the denominator of which is the total number of such shares owned by all participating Selling
Holders and the Optionee. Each Selling Holder shall notify the Optionee whether it elects to sell an amount equal to, more than or less than its pro rata portion of the Shares so offered. Each Selling Holder shall be entitled to apportion Shares to
be sold among its partners and affiliates, provided that such Selling Holder notifies the Company of such allocation. 
  
 2.2 Notice. Prior to any sale by the Optionee of any Shares, the Optionee shall notify each Eligible Holder and the Company, in
writing, of his intention to sell such securities, setting forth the general terms under which he proposes to make such sale. Such notice shall be signed by the third parties, or a representative of such third parties, or shall be accompanied by a
letter of intent signed by the third parties or representatives of such third parties, to whom the sale, assignment or transfer is proposed and shall indicate the third parties’ concurrence with the description of the terms. 
  
 2.3 Failure to Notify. If within thirty
(30) days after the Optionee gives his notice to the Eligible Holders, the Eligible Holders do not notify the Company that they desire to sell all of their pro rata portion of the Shares described in such notice at the price and on the terms
and conditions set forth therein, then the Optionee may, not later than ninety (90) days following delivery of the notice under Section 2.2, as to the Shares to which the Eligible Holders do not indicate a desire to sell, conclude a
transfer on the terms and conditions described in the notice. In the event the Optionee has not sold the Shares or entered into an agreement to sell the Shares within such ninety (90) days, the Optionee shall not thereafter sell any Shares
without first notifying the Eligible Holders and the Company in the manner provided above. The exercise or non-exercise of the right to participate in one or more sales of Shares made by the Optionee shall not adversely affect an Eligible
Holder’s right to participate in subsequent sales of Shares by the Optionee pursuant to Section 2.1 hereof. 
  
 2.4 Termination. The obligations of the Optionee under this Section 2 shall terminate and be of no further force and effect
upon the occurrence the earlier of the two events described in subsection 1.4 of this Agreement. 
  
 3. Market Standoff. Optionee hereby agrees that if so requested by the Company or any representative of the underwriters in connection with any
registration of the offering of any securities of the Company under the Act, Optionee shall not sell or otherwise transfer any Shares for a period of one hundred eighty (180) days following the effective date of a Registration Statement filed
under the Act; provided, however, that such restriction shall apply only to the first two Registration Statements of the Company to become effective under the Act which include securities to be sold on behalf of the Company to the public in an
underwritten 

  

 3 

 
public offering under the Act. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the
end of such one hundred eighty (180) day period. 
  
 4.
Company’s Right to Repurchase Upon Termination of Engagement. 
  
 4.1 Repurchase Right. The Shares shall be subject to a right (but not obligation) of repurchase in favor of the Company (the “Right of Repurchase”). If the Optionee’s employment with the Company
or its parent or subsidiary corporations (or, in the case of a director, consultant or adviser who is not an employee, the Optionee’s directorship or consulting or advising arrangement, as the case may be) terminates for any reason whatsoever
(the “Engagement Termination”) before the Right of Repurchase expires in accordance with Schedule 1 hereto, the Company may purchase Shares subject to the Right of Repurchase at a purchase price per share equal to the purchase price per
share paid by the Optionee for the Shares (exclusive of any taxes paid upon acquisition of the stock). The Optionee may not dispose of or transfer any Shares while such Shares are subject to the Right of Repurchase and any such attempted transfer
shall be null and void. The Company’s rights under this Section 4.1 shall be freely assignable, in whole or in part. 
  
 4.2 Repurchase Procedure. The Company’s Right of Repurchase shall terminate if not exercised by written notice from the
Company to the Optionee within ninety (90) days from the date on which the Company learns of the Engagement Termination. If the Company exercises its Right of Repurchase, the Optionee shall promptly endorse and deliver to the Company the stock
certificates representing the Shares being repurchased, and the Company shall then pay promptly (but in no event later than ninety (90) days after the date of Engagement Termination), pursuant to the provisions of Section 4.3 of this
Agreement, the total repurchase price to the Optionee. 
  
 4.3 Repurchase Payment. If, at the time of repurchase, any notes are outstanding which represent any portion of the total purchase price for Shares being so repurchased, the repurchase price shall be paid first by cancellation of any
obligation for accrued but unpaid interest under such notes, next by cancellation of principal under such notes, and finally by payment of cash or check. 
  
 4.4 Binding Effect. The Company’s Right of Repurchase shall inure to the benefit of the successors and assigns of the Company
and shall be binding upon the Optionee and any representative, executor, administrator, heir, or legatee of the Optionee. 
  
 5. Taxes. Concurrently with the exercise of the Option to which this Agreement is an exhibit, the Optionee shall execute and deliver to the Company
(i) a copy of the Acknowledgment and Statement of Decision Regarding Election Pursuant to Section 83(b) of the Internal Revenue Code (the “Acknowledgement”) attached hereto as Exhibit 5A; and (ii) a copy of the Election
Pursuant to Section 83(b) of the Code, attached hereto as Exhibit 5B, if the Optionee has indicated in the Acknowledgment his or her decision to make such an election. The Optionee should consult his or her own tax advisor to determine if there
is a comparable election to file in the state of his or her residence and whether such filing is desirable under the circumstances. The Company may withhold from the Optionee’s wages, or require the Optionee 

  

 4 

 
to pay to the Company, any applicable withholding or employment taxes resulting from the lapse of any restrictions imposed on the Shares. 
  
 6. Stock Certificate Restrictive Legends. Stock certificates
evidencing Shares may bear such restrictive legends as the Company and the Company’s counsel deem necessary or advisable under applicable law or pursuant to this Agreement, including, without limitation, the following legends: 
  
 “THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO A RIGHT OF FIRST
REFUSAL BY THE COMPANY AND A RIGHT OF CO-SALE ON THE PART OF CERTAIN STOCKHOLDERS PURSUANT TO THE PROVISIONS OF AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL PURCHASER OF SUCH SECURITIES RELATING TO SUCH SECURITIES, AND MAY NOT BE SOLD OR
OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF SUCH AGREEMENT.” 
  
 “THE SECURITIES REPRESENTED HEREBY MAY BE SUBJECT TO A RIGHT OF REPURCHASE BY THE COMPANY, PURSUANT TO THE PROVISIONS OF AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL PURCHASER OF SUCH SECURITIES RELATING TO
SUCH SECURITIES SHOULD THE PERSON INITIALLY ISSUED THESE SECURITIES CEASE TO BE EMPLOYED BY OR ENGAGED AS A CONSULTANT OR ADVISOR TO THE COMPANY OR ANY AFFILIATE THEREOF.” 
  
 “THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO RESTRICTIONS ON TRANSFER FOR A PERIOD OF 180 DAYS FOLLOWING THE
EFFECTIVE DATE OF A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, FOR AN OFFERING OF THE COMPANY’S SECURITIES AS MORE FULLY PROVIDED IN THE AGREEMENT RELATING TO THE OPTION TO PURCHASE SUCH SECURITIES BETWEEN THE COMPANY
AND THE ORIGINAL PURCHASER OF SUCH SECURITIES.” 
  
 7.
Binding Effect. Subject to the limitations set forth in this Agreement, this Agreement shall be binding upon, and inure to the benefit of, the executors, administrators, heirs, legal representatives, successors, and assigns of the parties
hereto. 
  
 8. Damages. Optionee shall be liable to the
Company for all costs and damages, including incidental and consequential damages, resulting from a disposition of Shares which is not in conformity with the provisions of this Agreement. 
  

 5 

 9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of California applicable to contracts entered into and wholly to be performed within the State of California by California residents. The parties agree that the exclusive jurisdiction and venue of any action with respect to this
Agreement shall be in the Superior Court of California for the County of Orange or the United States District Court for the Central District of California, and each of the parties hereby submits itself to the exclusive jurisdiction and venue of such
courts for the purpose of such action. The parties agree that service of process in any such action may be effected by delivery of the summons to the parties in the manner provided for delivery of notices set forth in Section 10. 
  
 10. Notices. All notices and other communications under this Agreement
shall be in writing. Unless and until Optionee is notified in writing to the contrary, all notices, communications and documents directed to the Company and related to the Agreement, if not delivered by hand, shall be mailed, addressed as follows:

  

					
	 	 	 NOVACEA, INC.
 601 Gateway Boulevard, Suite
800
 South San Francisco, CA 94080
 Attention:
President
	 	 

  
 Unless and until the Company is
notified in writing to the contrary, all notices, communications and documents intended for Optionee and related to this Agreement, if not delivered by hand, shall be mailed to Optionee’s last known address as shown on the Company’s books.
Notices and communications shall be mailed by registered or certified mail, return receipt requested, postage prepaid. All notices related to this Agreement shall be deemed received upon delivery or, if mailed, within five (5) days after
mailing in accordance with this Section 10. 
  
 IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 
  

			
	NOVACEA, INC.
		
	By:	 	 
	 	 	Bradford S. Goodwin,
	 	 	Chief Executive Officer

  
 Optionee hereby
accepts and agrees to be bound by all of the terms and conditions of this Agreement. 
  

			
		
	Optionee:	 	 
	 	 	(Name)

  

 6 

 Optionee’s spouse indicates by the execution of this Agreement her consent to be bound by the terms
herein as to her interests, whether as community property or otherwise, if any, in the Shares. 
  

			
		
	 Optionee’s Spouse
	 	 
	 	 	 

  

 7 

 EXHIBIT 5A 
  
 ACKNOWLEDGMENT AND STATEMENT 
  

OF DECISION REGARDING ELECTION 
  
 PURSUANT TO SECTION 83(b) OF 
  
 THE INTERNAL REVENUE CODE 
  
 The undersigned (which term includes the undersigned’s spouse), a holder of shares of common stock of NOVACEA, INC., a Delaware corporation (the
“Company”), hereby states as follows: 
  
 1. The
undersigned acknowledges receipt of a copy of the Company’s Optionee Restriction Agreement (the “Agreement”). The undersigned has carefully reviewed the Agreement. 
  
 2. The undersigned either [check as applicable]: 
  
  ̈
(a) has consulted, and has been fully advised by, the undersigned’s own tax advisor, ____________________________, whose business address is __________________________________________, regarding the federal, state and local tax
consequences of entering into the Agreement, and particularly regarding the advisability of making elections pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), and pursuant to the corresponding
provisions, if any, of applicable state laws; or 
  
  ̈ (b) as knowingly chosen not to consult such a tax advisor. 
  
 3. The undersigned hereby states that the undersigned has decided [check as applicable]: 
  
  ̈ (a) to make an election pursuant to Section 83(b) of the Code, and is submitting to the Company, together with the undersigned’s executed Agreement, an executed form
which is attached as Exhibit 5B to the Agreement; or 
  
  ̈ (b) not to make an election pursuant to Section 83(b) of the Code. 
  
 4. Neither the Company nor any subsidiary or representative of the Company
had made any warranty or representation to the undersigned with respect to the tax consequences of the Agreement or of the making or failure to make an election pursuant to Section 83(b) of the Code or the corresponding provisions, if any, of
applicable state law. 

 5. The undersigned is also submitting to the Company an executed original of an election, if any is made,
of the undersigned pursuant to provisions of state law corresponding to Section 83(b) of the Code, if any, which are applicable to the undersigned’s purchase of shares under the Agreement. 
  

					
	 	 	 	 	 
	Date:_____________________, 20___	 	 	 	Signature
			
	  	 	 	 	  
	 	 	 	 	Print Name
			
	Date:_____________________, 20___	 	 	 	 
	 	 	 	 	Signature
			
	 	 	 	 	 
	 	 	 	 	Print Name

  

 2 

 EXHIBIT 5B 
  
 ELECTION PURSUANT TO SECTION 83(b) OF THE 
  
 INTERNAL REVENUE CODE 
  
 The undersigned hereby elects pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), to include in the
undersigned’s gross income the excess (if any) of (x) the fair market value of the property described below, over (y) the amount the undersigned paid for such property plus, if the shares to which this election relates were acquired
by exercise of an “incentive stock option” within the meaning of Section 422 of the Code, the amount excluded from the undersigned’s income pursuant to Sections 421 and 422 of the Code. This election is made to the same effect,
and with the same limitations, with respect to the analogous provisions of Sections 83(b) (and, if applicable, Sections 421 and 422) of the Code under any applicable state statute. Pursuant to applicable Treasury Regulations the following
information is provided: 
  
 1. The undersigned’s name,
address and taxpayer identification (social security) number are: 
  
 Name: _________________________________ 
  
 Address:
___________________________________ 
  
 Social Security #:
_______________________________ 
  
 2. The property with respect
to which the election is made consists of __________ shares of Common Stock of NOVACEA, INC., a Delaware corporation (the “Company”). 
  
 3. The date on which the above property was transferred to the undersigned was ____________________, 20___, and the taxable year to which this election
relates is 20___. 
  
 4. The above property is subject to the
following restrictions: (a) a right of repurchase by the Company at the initial purchase price, if the undersigned ceases to be an employee of, or a consultant to, the Company or an affiliate of the Company; and (b) a right of first
refusal by the Company should the undersigned wish to transfer the shares to a person or entity other than the Company. 
  
 5. The fair market value of the above property at the time of transfer (determined without regard to any restrictions other than those which by their
terms will never lapse) is $__________ per share. 
  
 6. The
amount paid for the above property by the undersigned was $__________ per share. 
  
 7. A copy of this election has been furnished to the Company, and a copy will be filed with the income tax return of the undersigned to which this election relates. 

 8. If the shares to which this election relates were acquired by exercise of an “incentive stock
option” within the meaning of Section 422 of the Code, this election is protective only, is made solely to bar application of Section 83(a) of the Code, and is not an election of the undersigned actually to recognize income which
apart from this election is protected from recognition by Sections 421 and 422 of the Code. However, the undersigned does intend for this election to be an effective election under Section 83(b) of the Code for all purposes of the Alternative
Minimum Tax, and in particular for purposes of computing the adjustment described in Section 56(b)(3) of the Code. 
  
 If the shares to which this election relates were acquired by exercise of an incentive stock option, the amount expressly excluded from income pursuant to
Sections 421 and 422 of the Code is $                . per share. 
  
 Date:_____________________, 20___. 
  

	
	
	 

  

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 SCHEDULE 1 OF THE 
 OPTIONEE STOCK RESTRICTION 
 AGREEMENT 
  
 The Option shall vest and/or the Right of Repurchase shall expire on
March 29, 2005 with respect to 1/4th of the total number of shares acquired or to be acquired, and thereafter with respect to an additional 1/48th of the total remaining number of shares on the 1st day of each of the immediately following
calendar months. 
  
 Change in Control. In the event of a
Change in Control (as such term is defined below), then the Option shall vest and/or the Right of Repurchase shall expire with respect to fifty percent (50%) of the shares of Common Stock subject thereto. Thereafter, the Option shall vest
and/or the Right of Repurchase shall expire with respect to any unvested shares of Common Stock remaining subject thereto in equal monthly installments over the number of months remaining of the thirty-six (36) month period provided for in the
preceding paragraph. For example, assume at the time immediately prior to a Change in Control (i) the number of shares of Common Stock subject to the Option and/or Right of Repurchase is seventy-two (72) shares and (ii) the Option is
vesting and/or the Right of Repurchase is expiring, as applicable, monthly such that the Option will vest and/or the Right of Repurchase will expire with respect to two (2) shares each month over the next thirty-six (36) months. In such
event, upon a Change in Control (A) the Option shall vest and/or the Right of Repurchase shall expire with respect to thirty-six (36) of such shares immediately, and (B) the Option shall continue to vest and/or the Right of Repurchase
shall continue to expire in equal monthly installments with respect to the remaining thirty-six (36) shares of Common Stock subject to the Option and/or Right of Repurchase for the remainder of the thirty-six (36) month period provided for
in the preceding paragraph (i.e., the Option shall vest and/or the Right of Repurchase shall expire with respect to one (1) share per month). In addition, in the event of a Change in Control, if within the period beginning on the first
(1st) day of the calendar month immediately preceding the calendar month in which the effective date of such Change in Control occurs and ending on the last day of the thirteenth (13th) calendar month following the calendar month in which
the effective date of Change in Control occurs, the Optionee’s employment with or service to the Company terminates due to an involuntary termination thereof by the Company (or any successor) without Cause (as such term is defined below) (not
including a termination as a result of the Optionee’s death or disability) or due to a Constructive Termination (as such term is defined below), then the Option shall vest and/or the Right of Repurchase shall expire in full with respect to all
shares of Common Stock subject thereto as of the date of such termination of the Optionee’s employment or service. 
  
 Death. In the event of the Option Holder’s termination of employment with or service to the Company or its parent or subsidiary corporations
as a result of the Option Holder’s death, then the Option shall vest and/or the Right of Repurchase shall expire in full with respect to all shares of Common Stock subject thereto as of the date of the Option Holder’s death. 
  
 For purposes of this Schedule 1 only: 
  
 (a) “Cause” for the Optionee’s termination will exist at any
time after the happening of one or more of the following events, in each case as determined in good faith by the Company’s Board of Directors: 
  
 (i) The Optionee’s gross negligence or willful misconduct in the performance of his or her duties to the Company; 
  

 3 

 (ii) The Optionee’s repeated or unjustified absence from the Company; 
  
 (iii) The Optionee’s commission of any act of fraud
with respect to the Company; 
  
 (iv) The
Optionee’s conviction of or plea of guilty or nolo contendere to felony criminal conduct or a crime involving moral turpitude; or 
  
 (v) The Optionee’s violation of any noncompetition or confidentiality agreement that Optionee has entered into with the Company.

  
 (b) “Change in Control” means: (i) a sale,
lease or other disposition of all or substantially all of the assets of the Company; (ii) a merger or consolidation in which the Company is not the surviving entity and in which the holders of the Company’s outstanding voting stock
immediately prior to such transaction own, immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the entity surviving such transaction or the surviving entity’s parent;
(iii) a reverse merger in which the Company is the surviving entity but the shares of Common Stock outstanding immediately prior to the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or
otherwise, and in which the holders of the Company’s outstanding voting stock immediately prior to such transaction own, immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the
Company or the Company’s parent entity immediately after such transaction; or (iv) after the Listing Date (as such term is defined below), an acquisition by any person, entity or group within the meaning of Section 13(d) or 14(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any comparable successor provisions (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or subsidiary of the Company or
other entity controlled by the Company) of the beneficial ownership (within the meaning of Rule l3d-3 promulgated under the Exchange Act, or comparable successor rule) of securities of the Company representing at least fifty percent (50%) of
the combined voting power entitled to vote in the election of Directors; provided, however, that clauses (ii) and (iii) of this paragraph shall not apply to a merger effected exclusively for the purpose of changing the domicile of the
Company. 
  
 (c) “Constructive Termination” means
Optionee’s voluntary resignation following (i) any reduction in the Optionee’s level of base salary, or (ii) a relocation of the Optionee’s principal place of employment by more than fifty (50) miles (other than
reasonable business travel required as part of the job duties associated with the Optionee’s position), provided, and only in the event that, such change, reduction or relocation is effected by the Company without cause and without the
Optionee’s consent. 
  

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

									
	Initialed by:	 	 	 	NOVACEA, INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Bradford S. Goodwin,

	 	 	 	 	 	 	 	 	 Chief Executive Officer

									
					
	 	 	 	 	 	 	Optionee:	 	 
	 	 	 	 	 	 	 	 	 (Name)

  

 5

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