Document:

EMD Serono License Agreement

 EXHIBIT 10.12 
  

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

 LICENSE AGREEMENT 

DATED AS OF SEPTEMBER 16, 2014 

BY AND BETWEEN 

SUTRO BIOPHARMA INC. 

AND 
 MERCK
KGAA 
  

 LICENSE AGREEMENT 

This License Agreement (this “Agreement”) is dated as of September 16, 2014 (the “Effective Date”) by and between
Sutro Biopharma Inc., a corporation organized under the laws of California having a place of business at 310 Utah Avenue, Suite 150, South San Francisco, CA 94080, USA (“Sutro”), and Merck KGaA a corporation with general partners organized
under German law having a place of business at Frankfurter Straße 250, 64293 Darmstadt, Germany (“Merck”). Sutro and Merck may be referred to herein as a “Party” or, collectively, as “Parties”. 

RECITALS: 
 WHEREAS,
Sutro is a biotech company engaged in the discovery and development of antibody-drug conjugates; 
 WHEREAS, Merck is engaged in the
research, development, manufacturing and commercialization of pharmaceutical products and is interested in Developing, manufacturing and Commercializing Products, all as defined below; and 

WHEREAS, the Parties have established a Collaboration Agreement as further defined below (the “Collaboration Agreement”)
under which the Parties have started Projects (as defined below) to generate ADCs and agreed that they would establish a license agreement to allow further discovery, research, Development and Commercialization of ADCs by Merck and this Agreement is
such license agreement; and 
 WHEREAS, Merck desires to license from Sutro and Sutro wishes to license to Merck, on an exclusive
basis, the right to discover, research, Develop and manufacture Product and Commercialize Product in the Field in the Territory. 
 NOW,
THEREFORE, in consideration of the various promises and undertakings set forth herein, the Parties agree as follows: 
 ARTICLE 1

 DEFINITIONS 

Unless otherwise specifically provided herein, the following terms shall have the following meanings: 

 

	1.1	 “Accepted Target” means such Additional Target that has become accepted by the Gatekeeper as
foreseen in Section 2.6. 

  

	1.2	 “Additional Target” means any Targets proposed by Merck under this Agreement that are not
Named Targets. 

  

	1.3	 “Affiliate” means a Person that controls, is controlled by or is under common control with a
Party, but only for so long as such control exists. For the purposes of this Section 1.3, the word “control” (including, with correlative meaning, the terms “controlled by” or “under the common control with”) means
the actual power, either directly or indirectly through one or more intermediaries, to direct the management and policies of such Person or entity, whether by the ownership of more than fifty percent (50%) of the voting stock of such entity, or by
contract or otherwise. 

  
 1 

	1.4	 “Antibody or Antibodies” means an unconjugated polyclonal or monoclonal antibody or antibodies
(whether (a) fully human, fully mouse, humanized, phage display, chimeric, polyclonal, polyclonal mixes or any other type of antibody or antibodies, (b) multiple or single chain, recombinant, in vivo, in vitro or naturally
occurring or a combination of any of the foregoing in any species or (c) monospecific, bi-specific, or multi-specific or any analog, derivative, fragment or modification thereof (including a full
antibody, scFv, scFvFc, Fab, minibody, etc.)). 

  

	1.5	 “Antibody-Drug-Conjugate” or “ADC” means an Antibody directed against a Named
Target or an Accepted Target (that has not been replaced under Section 2.4) to which Antibody a Payload has been attached via a Linker and incorporating Sutro Platform Technology and / or Sutro Technology. 

 

	1.6	 “Business Day” means a day other than Saturday or Sunday on which banking institutions in San
Francisco, California and Darmstadt, Germany are open for business. 

  

	1.7	 “Calendar Quarter” means each three (3) month period commencing January 1,
April 1, July l or October 1 of any year; provided, however, that (a) the first Calendar Quarter of the Term shall extend from the Effective Date to the end of the first full Calendar Quarter thereafter, and (b) the last Calendar
Quarter of the Term shall end upon the expiration or termination of this Agreement. 

  

	1.8	 “Calendar Year” means the period beginning on the 1st of January and ending on the 31st of December of the same year; provided, however, that (a) the first Calendar Year of the Term shall
commence on the Effective Date and end on December 31st of the same year and (b) the last Calendar Year of the Term shall commence on January 1st of the Calendar Year in which this Agreement terminates or expires and end on the date of termination or expiration of this Agreement. 

 

	1.9	 “Cell Free Extract or CFE” means the extract from E. coli produced by Sutro that is used for
the cell free protein synthesis of the Product, in order to manufacture the Product including the incorporation of non-natural amino acids into the Product. For the manufacturing of Product the Cell Free
Extract shall comply with all applicable regulations and quality standards in the Territory for its respective uses. 

  

	1.10	 “CFE Manufacturing Know-How” means all Know-How Controlled by Sutro as of the Effective Date or any time thereafter necessary for the manufacture of the CFE. For the avoidance of doubt, CFE Manufacturing Know-How
includes the Stanford CFE Manufacturing Know-How. 

  

	1.11	 “CFE Manufacturing Patents” means all Patent Rights that are Controlled by Sutro or any of its
Affiliates, as of the Effective Date or at any time thereafter during the Term, and that claim CFE Manufacturing Know-How. The CFE Manufacturing Patents include all Patent Rights listed on schedule 1.11.

  

	1.12	 “CFE Manufacturing Technology” means the CFE Manufacturing
Know-How and the CFE Manufacturing Patents. 

  

	1.13	 “Change of Control” means, with respect to a Person: (a) a transaction or series of
related transactions that results in the sale or other disposition of all or substantially all of such Person’s assets; or (b) a merger or consolidation in which such Person is not the surviving corporation or in which, if such Person is
the surviving corporation, the shareholders of such Person immediately 

  
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prior to the consummation of such merger or consolidation do not, immediately after consummation of such merger or consolidation, possess, directly or indirectly through one or more
intermediaries, a majority of the voting power of all of the surviving entity’s outstanding stock and other securities and the power to elect a majority of the members of such Person’s board of directors; or (c) a transaction or
series of related transactions (which may include a tender offer for such Person’s stock or the issuance, sale or exchange of stock of such Person) if the shareholders of such Person immediately prior to the initiation of such transaction do
not, immediately after consummation of such transaction or any of such related transactions, own, directly or indirectly through one or more intermediaries, stock or other securities of the entity that possess a majority of the voting power of all
of such Person’s outstanding stock and other securities and the power to elect a majority of the members of such Person’s board of directors. 

  

	1.14	 “Clinical Trial” means a clinical trial in human subjects that has been approved by a
Regulatory Authority and Institutional Review Board or Ethics Committee, and is designed to measure the safety and/or efficacy of Product. Clinical Trials shall include Phase I Clinical Trials, Phase II Clinical Trials and Phase III Clinical Trials.

  

	1.15	 “Collaboration Agreement” means the agreement named “Collaboration Agreement”
between the Parties and dated May 28, 2014. 

  

	1.16	 “Combination Product” means a Product that: (a) includes one or more active ingredients
in addition to the ADC; or (b) is combined with one or more products, devices, pieces of equipment or components. 

  

	1.17	 “Commercialization” or “Commercialize” means any and all activities
undertaken before and after Regulatory Approval of a MAA for the Product and that relate to the marketing, promoting, distributing, importing or exporting for sale, offering for sale, and selling of the Product, and interacting with Regulatory
Authorities regarding the foregoing. 

  

	1.18	 “Commercially Reasonable Efforts” means: (a) with respect to the efforts to be expended
by a Party with respect to any objective, such reasonable, diligent, and good faith efforts as such Party would normally use to accomplish a similar objective under similar circumstances; and (b) with respect to any objective relating to
Development or Commercialization of the Product by a Party, the application by such Party, consistent with the exercise of its prudent scientific and business judgment, of diligent efforts and resources to fulfill the obligation in issue, consistent
with the level of efforts such Party would devote to a product at a similar stage in its product life as the Product and having profit potential and strategic value comparable to that of the Product, taking into account, without limitation,
commercial, legal and regulatory factors, target product profiles, product labeling, past performance, the regulatory environment and competitive market conditions in the therapeutic area, safety and efficacy of the Product, the strength of its
proprietary position and such other factors as such Party may reasonably consider, all based on conditions then prevailing. For clarity, Commercially Reasonable Efforts will not mean that a Party guarantees that it will actually accomplish the
applicable task or objective. 

  

	1.19	 “Competing Product” means, in a country of the Territory, a product that comprises an ADC
which was not developed pursuant to this Agreement and is not being sold by Merck, its Affiliate or Sublicensees. 

  

	1.20	 “Confidential Information” of a Party, means information relating to the business, operations
or products of a Party or any of its Affiliates, including any Know-How, that such Party discloses to the other Party under this Agreement, or otherwise becomes known to the other Party by virtue of this
Agreement. 

  
 3 

	1.21	 “Controlled” means, with respect to (a) Patent Rights,
(b) Know-How or (c) biological, chemical or physical material, that a Party or one of its Affiliates owns or has a license or sublicense to such Patent Rights,
Know-How or material (or in the case of material, has the right to physical possession of such material) and has the ability to grant a license or sublicense to, or assign its right, title and interest in and
to, such Patent Rights, Know-How or material as provided for in this Agreement without violating the terms of any agreement or other arrangement with any Third Party. In the case of a Change of Control of
Sutro or a Sutro Business Acquisition, then with respect to any rights granted by Sutro under this Agreement, “Controlled” shall not include, and the applicable license grant shall not include within its scope, the Patent Rights, Know-How or material of the surviving entity or acquirer or Affiliate of the surviving entity or acquirer that was not Sutro (prior to the Change of Control or Sutro Business Acquisition). 

 

	1.22	 “Cost of Goods” means (a) with respect to Product or CFE manufactured by a CMO,
Sutro’s actual costs to acquire the Product or CFE from the CMO together with [*] allocation for actual overhead and administrative costs for managing the CMO relationship, and (b) with respect to Product or CFE manufactured by Sutro, [*]%
of Sutro’s fully burdened manufacturing cost of the Product or the CFE, as the case may be, as calculated in accordance with generally accepted accounting principles of the United States (“GAAP”) to the extent applicable and the
generally applied principles, policies and procedures concerning manufacturing products. Fully burdened manufacturing cost shall consist of the following: 

  

	(i)	 Material Cost, which means the standard prices paid for raw material components and purchased finished goods
[*] which are purchased from outside vendors as well as any freight, duties, taxes and other foes, where applicable. Material Cost includes the quantity of the components included in the bill of material times the purchase price and the waste factor
(i.e., scrap percentage) included in the bill of materials. It also includes the normal quality assurance sample quantity included in the bill of materials; 

  

	(ii)	 Direct Labor Costs, which means the standard labor hours required for an operation according to standard
operating procedures (including internal manufacturing of components and products) multiplied by the direct labor rate for individuals within the relevant manufacturing operating unit, which labor rate, if for an employee, includes the cost of such
employees salary, benefits and employer tax burden provided that such salaries and benefits are consistent with the salaries and benefits provided to employees in similar positions within Sutro not involved in manufacturing the Product or CFE, as
the case may be; and 

  

	(iii)	 Overhead Costs, which means other costs associated with the operating unit(s) manufacturing the Product or CFE,
as the case may be, provided, however, that such Overhead Costs shall exclude [*]. Overhead Costs shall include appropriate direct and identifiable costs (or appropriate allocation thereof), including expenses associated with quality control,
quality assurance, manufacturing, engineering services associated with the operating unit(s) manufacturing a product. Overhead Costs shall also include the fully loaded allocation of the facility costs (such as, without limitation, rent, taxes,
heat, electricity and maintenance) used to manufacture the Product or CFE, as the case may be, and the allocated costs of manufacturing administration. These costs shall be allocated to each product line in such operating unit(s) or plant(s),
whichever is applicable, based on specific criteria consistent with the standard operating procedures for each product, determined and allocated in a manner consistently applied within and across its operating units. 

  

					
		  	4	  	*Confidential Treatment Requested.

 [*] 

Sutro will make the cost breakdown available to Merck upon request at any time. Merck will have the right to audit Sutro’s records
pertaining to the Product or CFE, as the case may be, in accordance with Section 7.11 (c) and Schedule 5.6. 
  

	1.23	 “Cover”, “Covering” or “Covered” means, with respect to
Product, and as applicable, that the making, practicing a method of manufacture, using, practicing a method that uses, selling, offering for sale or importation of Product would, but for a license granted in this Agreement under the Sutro Patents
and Sutro Platform Patents, infringe a Valid Claim of the Sutro Patents or the Sutro Platform Patents in the country in which the activity occurs. 

  

	1.24	 “Development” or “Develop” means, with respect to the Product, the
performance of all pre-clinical and clinical development (including toxicology, pharmacology, test method development and stability testing, process development, formulation development, quality control development, statistical analysis), Clinical
Trials (excluding Clinical Trials conducted after Regulatory Approval of an MAA), manufacturing and regulatory activities that are required to obtain Regulatory Approval of Product in the Territory. 

 

	1.25	 “DMF” means a Drug Master File filed with the FDA, EMA or another foreign equivalent for the
Sutro Platform Technology, Sutro Technology, and / or the CFE Manufacturing Technology. 

  

	1.26	 “EMA” means the European Medicines Agency or a successor agency thereto.

  

	1.27	 “European Commission” means the authority within the European Union that has the legal
authority to grant Regulatory Approvals in the European Union based on input received from the EMA or other competent Regulatory Authorities. 

  

	1.28	 “European Union” or “EU” means the European Union, as may be redefined from
time to time. 

  

	1.29	 “Executive Officers” means, together, a member of the senior management of the pharmaceutical
division of Merck and the Chief Executive Officer of Sutro. 

  

	1.30	 “Exploit” means make, have made, use, including to research, Develop, Commercialize, register,
manufacture, have manufactured, import, hold or keep (whether for disposal or otherwise), have used, transport, or have sold or otherwise dispose of. “Exploitation” means the act of Exploiting a compound, product or process.

  

	1.31	 “FDA” means the United States Food and Drug Administration or a successor federal agency
thereto. 

  

	1.32	 “FD&C Act” means the United States Federal Food, Drug & Cosmetic Act, as amended,
together with any rules, regulations and requirements promulgated thereunder (including all additions, supplements, extensions and modifications thereto). 

  

	1.33	 “Field” means all prophylactic, palliative, therapeutic or diagnostic uses in humans or
animals. 

  

	1.34	 “Final Report” means a report documenting the Results of Sutro Development Activities as
defined in the respective Project Plan. 

  

					
		  	5	  	*Confidential Treatment Requested.

	1.35	 “Final Results” means Sutro’s delivery to Merck of at least 2 ADC molecules per Named
Target or Accepted Target meeting the PS including the appropriate documentation of Results in a Final Report. 

  

	1.36	 “First Commercial Sale” means, on a country-by-country basis, the first commercial transfer or disposition for value of a Product in such country to a Third Party by Merck, or any of its Affiliates or Sublicensees following, if required by Law,
Regulatory Approval of such Product. 

  

	1.37	 “FTE” means a full time equivalent person year of scientific or technical work on or directly
related to the Sutro Development Activities, based on an average of [*] weeks per month and [*] hours per week. 

  

	1.38	 “FTE Expenses” means the cost of the work performed by Sutro personnel, applying the FTE Rate.

  

	1.39	 “FTE Rate” means the fully-loaded annual cost for the work of one FTE of [*] USD ($[*]).

  

	1.40	 “GAAP” means United States generally accepted accounting principles. 

 

	1.41	 “Gatekeeper” means [*], or such other Third Party as may be agreed by the Parties in writing
from time to time. 

  

	1.42	 “GLP” or “Good Laboratory Practices” means the then-current standards for
good laboratory practices for pharmaceuticals, as set forth in the FD&C Act and applicable regulations and guidance promulgated thereunder, including the Code of Federal Regulations, as amended from time to time, or under any other Laws.

  

	1.43	 “GLP Toxicology Studies” means, with respect to a Product, animal studies conducted in
accordance with GLP and intended to support an IND for such Product. 

  

	1.44	 “Governmental Body” means any: (a) nation, principality, state, commonwealth, province,
territory, county, municipality, district or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other government; (c) governmental or quasi-governmental authority of any nature (including any governmental
division, subdivision, department, agency, bureau, branch, office, commission, council, board, instrumentality, officer, official, representative, organization, unit, body or entity and any court or other tribunal); (d) multi-national or
supranational organization or body; or (e) individual, entity, or body exercising, or entitled to exercise, any executive, legislative, judicial, administrative, regulatory, police, military or taxing authority or power of any nature.

  

	1.45	 “IFRS” means the International Financial Reporting Standards, the set of accounting standards
and interpretations and the framework in force on the Effective Date and adopted by the European Union as issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC), as
such accounting standards may be amended from time to time. 

  

	1.46	 “Indication” means a generally acknowledged disease or condition, a significant manifestation
of a disease or condition, or symptoms associated with a disease or condition or a risk for a disease or condition for which a MAA may be obtained. 

  

	1.47	 “IND” means an investigational new drug application submitted to applicable Regulatory
Authorities for approval to commence Clinical Trials in a given jurisdiction. 

  

					
		  	6	  	*Confidential Treatment Requested.

	1.48	 “Joint Know-How” means
Know-How that is invented, conceived, or developed jointly by or on behalf of both Parties in the course of conducting their activities under this Agreement. If any
Know-How would otherwise constitute both Product Know-How and Joint Know-How, then such
Know-How will be deemed to be Product Know-How. If any Know-How would otherwise constitute both Sutro Platform Know-How and Joint Know-How, then such Know-How will be deemed to be Sutro Platform Know-How.

  

	1.49	 “Joint Patents” means a Patent Right that claims Joint
Know-How. 

  

	1.50	 “Joint Technology” means the Joint Know-How and the
Joint Patents. 

  

	1.51	 “Know-How” means any: (a) scientific or technical
information, results and data of any type whatsoever, in any tangible or intangible form whatsoever, that is not in the public domain or otherwise publicly known, including discoveries, inventions, trade secrets, devices, databases, practices,
protocols, regulatory filings, methods, processes (including manufacturing processes, specification and techniques), techniques, concepts, ideas, specifications, formulations, formulae, data (including pharmacological, biological, chemical,
toxicological, clinical and analytical information, quality control, trial and stability data), case reports forms, medical records, data analyses, reports, studies and procedures, designs for experiments and tests and results of experimentation and
testing (including results of research or development), summaries and information contained in submissions to and information from ethical committees, or Regulatory Authorities, and manufacturing process and development information, results and
data, whether or not patentable, all to the extent not claimed or disclosed in a patent or patent application; and (b) Antibodies, compositions of matter, cells, cell lines, assays, animal models and physical, biological or chemical material,
including drug substance samples, intermediates of drug substance samples, drug product samples and intermediates of drug product samples. The fact that an item is known to the public shall not be taken to exclude the possibility that a compilation
including the item, and/or a development relating to the item, is (and remains) not known to the public. “Know-How” includes any rights including copyright, database or design rights protecting such Know-How. “Know-How” excludes Patent Rights. 

  

	1.52	 “Knowledge” means, with respect to a matter that is the subject of a given representation, or
warranty of Sutro, the knowledge, information or belief of any officer or director of Sutro, or such other employee of Sutro who would reasonably be expected to have knowledge of the matter in question, has, or should reasonably be expected to have.
“Knowingly” means with Knowledge. 

  

	1.53	 “Law” or “Laws” means all applicable laws, statutes, rules, regulations,
ordinances and other pronouncements having the binding effect of law of any Governmental Body. 

  

	1.54	 “Linker” means a chemical moiety by which a Payload is attached to an Antibody to create an
ADC. 

  

	1.55	 “MAA” means a Marketing Authorization Application submitted pursuant to the requirements of
the FDA, as more fully defined in 21 U.S. C.F.R. § 314.3 et seq, a Biologics License Application submitted pursuant to the requirements of the FDA, as more fully defined in 21 U.S. C.F.R. § 601, and any equivalent application
submitted in any country in the Territory, including all additions, deletions or supplements thereto, and as any and all such requirements may be amended, or supplanted, at any time. 

 

	1.56	 “Major Market Countries” means U.S., France, Germany, Italy, Spain, the U.K., Japan, China,
Canada, or Brazil. 

  
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	1.57	 “Merck Antibody” means an Antibody Controlled by Merck as of the Effective Date or anytime
thereafter that is provided to Sutro under this Agreement for use under a Project Plan and derivatives thereof generated under this Agreement that continue to bind to the applicable Target. 

 

	1.58	 “Merck Know-How” means all Know-How, but excluding Product Know-How, that is Controlled by Merck or any of its Affiliates, as of the Effective Date or at any time thereafter during the Term and is
necessary or useful in the Exploitation of a Product or an ADC developed under this Agreement. 

  

	1.59	 “Merck Linker” means a Linker Controlled by Merck during the Term. 

 

	1.60	 “Merck Materials” means all chemical, biological or physical materials that are Controlled by
Merck or any of its Affiliates, as of the Effective Date or at any time thereafter during the Term, and that are necessary or useful in the research, Development, manufacture, use or Commercialization of the Product, including sequence information
related to Merck Antibodies and that are provided by Merck to Sutro under this Agreement. 

  

	1.61	 “Merck Patents” means all Patent Rights that are Controlled by Merck or any of its Affiliates,
as of the Effective Date or at any time thereafter during the Term, and that claim Merck Know-How. 

  

	1.62	 “Merck Payload” means a Payload Controlled by Merck at any time during the Term.

  

	1.63	 “Merck Technology” means the Merck Patents and the Merck
Know-How. 

  

	1.64	 “Named Targets” means the [*] Targets ([*]) nominated by Merck and accepted by Sutro for
development of ADCs under the Collaboration Agreement as set forth in Schedule 1.64. 

  

	1.65	 “Net Sales” means the gross amounts invoiced by Merck or any of its Affiliates or Sublicensees
for sales of Product to independent or unaffiliated Third Party purchasers of such Product, less the following deductions with respect to such sales that are either included in the billing as a line item as part of the gross amount invoiced, or
otherwise documented as a deduction in accordance with IFRS to be specifically attributable to actual sales of such Product. 

(a) trade discounts, including trade, cash and quantity discounts or rebates, credits or refunds (including inventory management fees,
discounts or credits); 
 (b) allowances or credits actually granted upon claims, returns or rejections of products, including recalls,
regardless of the party requesting such recall; 
 (c) provisions for bad debt (provided that if such bad debt is subsequently collected it
will be added to Net Sales); 
 (d) charges included in the gross sales price for freight, insurance, transportation, postage, handling and
any other charges relating to the sale, transportation, delivery or return of such Product; 
 (e) customs duties, sales, excise and use
taxes and any other governmental charges (including value added tax) actually paid in connection with the transportation, distribution, use or sale of such Product (but excluding what is commonly known as income taxes); 

  

					
		  	8	  	*Confidential Treatment Requested.

 (f) rebates and chargebacks or retroactive price reductions made to federal, state or local
governments (or their agencies), or any Third Party payor, administrator or contractor, including managed health organizations; and 
 (g)
cash considerations given directly or indirectly to Third Parties related to import, distribution or promotion of the Licensed Product, unless such consideration is given in return for a separable service received, which service is alternatively
available from a Third Party (specifically excluding any commissions paid to sales personnel, sales representatives and sales agents who are employees or consultants of the selling Party or its Affiliates or any Sublicensees). 

If a Product under this Agreement is sold in the form of a Combination Product, then Net Sales for such Combination Product shall be determined
on a country-by-country basis by mutual agreement of the Parties in good faith taking into account the perceived relative value contributions of the Product and the
other ingredient or component in the Combination Product, as reflected in their respective market prices. In case of disagreement, an independent expert agreed upon by both Parties or, failing such agreement, designated by the International Chamber
of Commerce, shall determine such relative value contributions and such determination shall be final and binding upon the Parties. 
 In the
event Product is “bundled” for sale together with one or more other products in a country (a “Product Bundle”), then Net Sales for such Product sold under such arrangement shall be determined on a country-by-country basis by mutual agreement of the Parties in good faith taking into account the relative value contributions of the Product and the other products in the
Product Bundle, as reflected in their individual sales prices. In case of disagreement, an independent expert agreed upon by both Parties or, failing such agreement, the International Chamber of Commerce shall determine such relative value
contributions and such determination shall be final and binding upon the Parties. 
 For clarification, sale of Product by Merck or any of
its Affiliates or Sublicensees to another of these entities for resale by such entity to a Third Party shall not be deemed a sale for purposes of this definition of “Net Sales” but the subsequent resale by such entity to a Third Party
shall be included in “Net Sales.” Further, transfers or dispositions of Product in the following situations at aggregate cost (including all costs related to the transfer or disposition of Product e.g. all administrative, promotional
charges and royalty payments that would be owed to Sutro pursuant to this Agreement), or less than the aggregate cost, of the Product: (i) in connection with patient assistance programs; (ii) for charitable or promotional purposes;
(iii) for preclinical, clinical, regulatory or governmental purposes or under so-called “named patient” or other limited access programs; or (iv) for use in any tests or studies reasonably
necessary to comply with any Law, regulation or request by a Regulatory Authority shall not, in each case of (i) through (iv), be deemed sales of such Product for purposes of this definition of “Net Sales.” 

 

	1.66	 “Non-GLP Toxicology Studies” means, with respect to a
Product, pilot toxicology studies carried out in one or more animal species and intended to determine the therapeutic index or tolerability of such Product to support its selection for GLP Toxicology Studies. 

 

	1.67	 “Out-of-Pocket
Expenses” means expenses actually paid by a Party or its Affiliate to any Third Party; provided, that “Out-of-Pocket Expenses” shall not include
expenses paid to any consultants (or service providers of like kind). 

  
 9 

	1.68	 “Patent Rights” or “Patents” means: (a) an issued or granted patent,
including any extension, supplemental protection certificate, registration, confirmation, reissue, reexamination or renewal thereof; (b) a pending patent application, including any continuation, divisional,
continuation-in-part, substitute or provisional application thereof; and (c) all counterparts or foreign equivalents of any of the foregoing issued by or filed in any country or other jurisdiction.

  

	1.69	 “Payload” means an active pharmaceutical ingredient, which is attached or intended to be
attached to an Antibody via a Linker to create an ADC. 

  

	1.70	 “Person” means any natural person, corporation, firm, business trust, joint venture,
association, organization, company, partnership or other business entity, or any government or agency or political subdivision thereof. 

  

	1.71	 “Phase I Clinical Trial” means a Clinical Trial that provides for the first introduction into
humans of a pharmaceutical product with the primary purpose of determining safety, metabolism and pharmacokinetic properties and clinical pharmacology of such product, in a manner that is generally consistent with 21 CFR § 312.21(a), as amended
(or its successor regulation). 

  

	1.72	 “Phase II Clinical Trial” means a Clinical Trial that is intended to initially evaluate
the effectiveness of a pharmaceutical product for a particular indication or indications in patients with the disease or indication under study, in a manner that is generally consistent with 21 CFR § 312.21(b), as amended (or its successor
regulation). 

  

	1.73	 “Phase III Clinical Trial” means a pivotal Clinical Trial with a defined dose or a set
of defined doses of a pharmaceutical product designed to ascertain efficacy and safety of such product, in a manner that is generally consistent with 21 CFR § 312.21(c), as amended (or its successor regulation), for the purpose of enabling
the preparation and submission of an MAA. 

  

	1.74	 “Price Approvals” means, in those countries in the Territory where Governmental Authorities
may approve or determine pricing and/or pricing reimbursement for pharmaceutical products, such pricing and/or pricing reimbursement approval or determination. 

 

	1.75	 “Product” means a pharmaceutical composition that consists of or incorporates an ADC based on
a Merck Antibody. 

  

	1.76	 “Product Know-How” means Know-How 

 (a) that is Controlled by Merck or any Affiliate of Merck as of the Effective
Date or at any time during the Term (including pursuant to Section 8.3 (b)), and including Know-How that is invented, conceived, or developed (A) by or on behalf of either or both Parties, or its or
their Affiliates or Third Parties acting on its or their behalf, in each case in the course of conducting its or their activities under this Agreement, or (B) by or on behalf of any Sublicensee in the course of conducting activities under a
permitted sublicense hereunder, and 
 (b) to the extent relating to or consisting of 

 

	 	(i)	 a Named Target or Accepted Target, 

 

	 	(ii)	 a Merck Antibody, 

  

	 	(iii)	 a Merck Payload, 

  

	 	(iv)	 a Merck Linker, 

  
 10 

	 	(v)	 a combination of a Merck Payload with a Linker that is in the public domain, 

 

	 	(vi)	 a combination of a Merck Linker with a Payload that is in the public domain, 

 

	 	(vii)	 an ADC Developed under this Agreement, or 

 

	 	(viii)	 a Product. 

If any Know-How would otherwise constitute both Product
Know-How and Joint Know-How, then such Know-How will be deemed to be Product Know-How.

  

	1.77	 “Product Patent” means a Patent Right that claims Product
Know-How. 

  

	1.78	 “Product Technology” means the Product Know-How and
the Product Patents. 

  

	1.79	 “Project” means for each Named Target or Accepted Target the research activities to be
conducted under the Collaboration Agreement and the Agreement with the goal to generate ADCs against a Named Target and/or Accepted Target. 

  

	1.80	 “Project Budget” means the budget set forth by the timelines, required resources and the FTE
Rate in each Project Plan. The Project Budget should include on a Calendar Quarter-by-Calendar Quarter basis the estimated amount of FTE Expenses associated with the
specified Sutro Development Activities that are reimbursable by Merck. 

  

	1.81	 “Project Plan” means the written Project description and timeline for Sutro Development
Activities for each Project as appended to the Collaboration Agreement and the Agreement as Exhibit A and agreed upon in writing by the Parties. 

  

	1.82	 “PS” means performance specifications, which describe Merck’s minimal performance
requirement of an ADC molecule generated by Sutro. The PS are specifically defined for each Named Target and each Accepted Target, but shall be oriented at the generally defined PS in Schedule 1.82 appended to this Agreement. 

 

	1.83	 “Regulatory Authority” means: (a) in the US, the FDA; (b) in the EU, the EMA or the
European Commission; or (c) in any other jurisdiction anywhere in the world, any regulatory body with similar regulatory authority over pharmaceutical or biotechnology products. 

 

	1.84	 “Regulatory Approval” means any and all approvals, licenses, registrations, or authorizations
of the relevant Regulatory Authority, including Price Approvals, necessary for the Development, manufacture, use, storage, import, transport or Commercialization of Product in a particular country or jurisdiction. For the avoidance of doubt,
Regulatory Approval to Commercialize Product shall include Price Approval. 

  

	1.85	 “Results” means all results of Sutro Development Activities that have been generated in the
performance of any Project Plan either under the Collaboration Agreement or the Agreement. 

  

	1.86	 “Royalty Term” means, on a
Product-by-Product and country-by-country basis, the period from the First Commercial
Sale of such Product in such country until the later of (a) the last date on which such Product is Covered by a Valid Claim within the Sutro Patents or the Sutro Platform Patents in such country, or (b) ten (10) years after such First
Commercial Sale of such Product in such country. 

  
 11 

	1.87	 “Scripps In-License” means that certain license
agreement by and between Sutro and The Scripps Research Institute dated May 30, 2012. 

  

	1.88	 “Stanford CFE Manufacturing Know-How” means those
parts of the Stanford Know-How that are relevant for the manufacture of the CFE. 

  

	1.89	 “Stanford In-License” means that certain license
agreement by and between Sutro and The Board Of Trustees of the Leland Stanford Junior University, dated October 3, 2007, as may be amended from time to time. 

 

	1.90	 “Stanford Manufacturing Know-How” means those parts of
the Stanford Know-How that are relevant for manufacture of proteins and Antibodies using the CFE. 

  

	1.91	 “Stanford Know-How” means the Know-How licensed to Sutro pursuant to the Stanford In-License. 

  

	1.92	 “Stanford Patents” means the Patents licensed to Sutro pursuant to the Stanford In-License. The Stanford Patents are listed in schedule 1.92. 

  

	1.93	 “Stanford Technology” means the Stanford Patents and the Stanford Know-How. 

  

	1.94	 “Strategic IP Plan” means, for each Project, the plan mutually agreed between the Parties that
sets out the agreed overall strategy that the Parties intend to follow for the protection by means of Patent Rights generated under this Agreement and such further Patent Rights as the Parties may agree on as part of such Strategic IP Plan. The
Strategic IP Plan for each Project shall be established, agreed, updated, revised and executed as set out in Section 3.16(a). 

  

	1.95	 “Sublicensee” means a Person other than an Affiliate of Merck to which Merck (or its
Affiliate) has, pursuant to Section 4.4, granted sublicense rights under any of the license rights granted under Section 4.1; provided, that “Sublicensee” shall exclude distributors. 

 

	1.96	 “Sutro Bankruptcy Event” means: (a) voluntary or involuntary proceedings by or against
Sutro are instituted in bankruptcy under any insolvency Law, including, without limitation, the U.S. Bankruptcy Code, which proceedings, if involuntary, shall not have been dismissed within ninety (90) days after the date of filing; (b) a
receiver or custodian is appointed for Sutro; (c) proceedings are instituted by or against Sutro for corporate reorganization, dissolution, liquidation or winding-up of Sutro, which proceedings, if
involuntary, shall not have been dismissed within ninety (90) days after the date of filing; or (d) substantially all of the assets of Sutro are seized or attached and not released within ninety (90) days thereafter.

  

	1.97	 “Sutro Development Activities” means each of the following activities to be performed by Sutro
pursuant to a Project Plan: (a) generating and optimizing drug conjugation sites in the amino acid sequence of Antibodies; (b) combining selected Payloads with an Antibody to form a library of ADCs against a specific target; and
(c) characterizing the biophysical, biochemical, biological, and functional properties of the ADCs. 

  

	1.98	 “Sutro Know-How” means all Know-How excluding Sutro Platform Know-How and excluding the CFE Manufacturing Know-How (a) that is Controlled by Sutro or any of
its Affiliates, as of the Effective Date or at any time thereafter during the Term, and (b) is necessary or useful to Exploit Products. 

  
 12 

	1.99	 “Sutro Linker” means a Linker Controlled by Sutro during the Term. 

 

	1.100	 “Sutro Materials” means all chemical, biological or physical materials that are Controlled by
Sutro or any of its Affiliates, as of the Effective Date or at any time thereafter during the Term, and that are necessary or useful in the research, Development, manufacture, use or Commercialization of the Product, but excluding the Delivered
Materials. 

  

	1.101	 “Sutro nnAA” means any non-naturally occurring amino
acid Controlled by Sutro as of the Effective Date or any time thereafter. 

  

	1.102	 “Sutro Patents” means all Patent Rights that are Controlled by Sutro or any of its Affiliates,
as of the Effective Date or at any time thereafter during the Term and that claim Sutro Know-How. Listed on Schedule 1.102 are all Sutro Patents existing as of the Effective Date; provided, that Sutro shall
update Schedule 1.102 from time-to-time to include any new Patent Rights that come to be Controlled by Sutro or any of its Affiliates at any time during the Term on or
following the Effective Date that are directly related to and are necessary or useful to Exploit the Product. 

  

	1.103	 “Sutro Payload” means a Payload Controlled by Sutro during the Term. 

 

	1.104	 “Sutro Platform Know-How” means all Know-How excluding CFE Manufacturing Know-How 

(a) that is Controlled by Sutro or any Affiliate of Sutro as of the Effective Date or at any time during the Term (including pursuant to
Section 8.3 (a)), and any Know-How that is invented, conceived, or developed (A) by or on behalf of either or both Parties, or its or their Affiliates or Third Parties acting on its or their behalf,
in each case in the course of conducting its or their activities under this Agreement, or (B) by or on behalf of any Sublicensee in the course of conducting activities under a permitted sublicense hereunder, and 

(b) to the extent relating to or consisting of 
  

	 	(i)	 a Sutro Payload, 

  

	 	(ii)	 a Sutro Linker, 

(iii) Sutro’s proprietary Cell Free Extract expression technology to the extent related to the making, using, selling or
offering for sale of a Product, 
  

	 	(iv)	 the combination of a Sutro Payload with a Linker that is in the public domain 

 

	 	(v)	 the combination of a Payload that is in the public domain with a Sutro Linker, 

(vi) the conjugation of a Sutro Payload or a Payload that is in the public domain to an Antibody using a Sutro Linker
(including the modification of an Antibody to facilitate such conjugation and the identity or identification of preferred sites on an Antibody for such conjugation and excluding the specific conjugation to a Merck Antibody and also excluding the
identity or identification of preferred sites on a Merck Antibody for such conjugation). 
  

	 	(vii)	 a Sutro nnAA. 

For the avoidance of doubt, Sutro Platform Know-How includes the Stanford Manufacturing Know-How. If any Know-How would otherwise constitute both Sutro Platform Know-How and

  
 13 

 
Joint Know-How, then such Know-How will be deemed to be Sutro Platform
Know-How. It is agreed that all Know-How generated under subclauses (a)(A) and (a)(B) above (i.e. excluding any Know-How existing
as of the Effective Date or Controlled by Sutro separately from activities under this Agreement) and related to a Named Target, Accepted Target, Merck Antibody, Merck Linker, ADC (except for the individual components thereof that fall within clause
(b) above) or a Merck Payload shall not constitute Sutro Platform Know-How. 
  

	1.105	 “Sutro Platform Patents” means a Patent Right that claims Sutro Platform Know-How, including the Stanford Patents. Sutro Platform Patent Rights include all Patent Rights listed on Schedule 1.105. 

 

	1.106	 “Sutro Platform Technology” means the Sutro Platform
Know-How and the Sutro Platform Patents. 

  

	1.107	 “Sutro Technology” means the Sutro Patents, the Sutro
Know-How and the Sutro Materials. 

  

	1.108	 “Sutro’s Inability To Perform” means: (a) a material breach by Sutro
of its obligation to supply the CFE to Merck under the CFE Supply Agreement or the CFE CMO Supply Agreement which is not cured within [*] days; (b) [*]; (c) a Sutro Bankruptcy Event; (d) Sutro fails to manufacture or have manufactured and
deliver to Merck the CFE in quantities and quality sufficient to continuously meet Merck’s reasonable forecasted demands for CFE all as set forth in the CFE Supply Agreement and / or the CFE CMO Supply Agreement and is not cured within [*]
days, where such failure results from reasons within Sutro’s reasonable control and/or results from Sutro’s failure to use Commercially Reasonable Efforts; or (e) [*]. 

 

	1.109	 “Target” means: [*] 

 

	1.110	 “Tax” or “Taxes” means any federal, state, local or foreign income, gross
receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security, unemployment, disability, real property,
personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether
disputed or not. 

  

	1.111	 “Territory” means all the countries of the world. 

 

	1.112	 “Third Party” means any Person other than Sutro, Merck or any of their respective Affiliates.

  

	1.113	 “Third Party Action” means any Action made by a Third Party against either Party that claims
that the Product, or its use or Development, manufacture or sale infringes or misappropriates such Third Party’s intellectual property rights. 

  

	1.114	 “Third Party Technology” means all Know-How and all
Patents that are Controlled by a Third Party and are necessary or useful to Exploit the Product. 

  

	1.115	 “Third Party License Agreement” means any agreement entered into by a Party or its Affiliate
with a Third Party, or any amendment or supplement thereto, in each case following the Effective Date, whereby royalties, fees or other payments are to be made by a Party or its Affiliate to such Third Party in connection with the grant of rights
under intellectual property rights Controlled by such Third Party, which rights are necessary or useful to Exploit the Product. 

  

					
		  	14	  	*Confidential Treatment Requested.

	1.116	 “United States” or “US” means the United States of America, its territories
and possessions. 

  

	1.117	 “USD” or “$” means the lawful currency of the United States.

  

	1.118	 “Valid Claim” means a claim of an issued and unexpired patent which has not lapsed or been
revoked, abandoned or held unenforceable or invalid by a final decision of a court or governmental or supra-governmental agency of competent jurisdiction, unappealable or unappealed within the time allowed for appeal, and which has not been
disclaimed, denied or admitted to be invalid or unenforceable through reissue, reexamination or disclaimer or otherwise. 

  

	1.119	 Other Terms. The definition of each of the following terms is set forth in the section of the Agreement
indicated below: 

  

			
	 Defined Term
	  	 Section

		
	 “Action”
	  	8.8 (b)
		
	 “Agreement”
	  	Preamble
		
	 “Antibody-Construct Sequences”
	  	2.3
		
	 “Available”
	  	2.6
		
	 “CFE-CMO”
	  	5.6
		
	 “CFE Supply Agreement”
	  	5.6
		
	 “CMO” or “Third Party Contract Manufacturer”
	  	5.4
		
	 “Delivered Materials”
	  	2.3
		
	 “Development Support”
	  	5.2
		
	 “Effective Date”
	  	Preamble
		
	 “JIPC” or “Joint IP Committee”
	  	3.15
		
	 “JPT” or “Joint Project Team”
	  	3.8
		
	 “Sutro”
	  	Preamble
		
	 “Sutro Indemnitees”
	  	11.1
		
	 “Manufacturing Support”
	  	5.8
		
	 “Merck”
	  	Preamble
		
	 “Merck Indemnitees”
	  	11.2
		
	 “Merck Notification Date”
	  	5.5
		
	 “Party” and “Parties”
	  	Preamble
		
	 “Product Bundle”
	  	1.65
		
	 “Product-CMO”
	  	5.7
		
	 “Product Supply Agreement”
	  	5.5
		
	 “Quarterly Report”
	  	3.13
		
	 “Regulatory Support”
	  	6.5
		
	 “Representatives”
	  	5.2
		
	 “Sutro Business Acquisition”
	  	2.10
		
	 “Term”
	  	12.1

  
 15 

 ARTICLE 2 

PROJECTS AND GATEKEEPER PROCESS 
  

	2.1	 Objective and Conduct of the Projects. The Parties will conduct a number of Projects, each in accordance
with a Project Plan, the terms of this Agreement and Law in good scientific manner. Each Party will use Commercially Reasonable Efforts to perform activities assigned to it under each Project Plan in accordance with the timelines set forth therein.

  

	2.2	 Projects, Project Plans. Each Project shall be conducted collaboratively as described in the mutually
agreed written Project Plan. Such Project Plans, with up to three Merck Antibodies per Target, shall be appended to the Agreement. Sutro shall use all Merck Materials provided by Merck to Sutro solely to perform the Sutro Development Activities.
Sutro shall use Commercially Reasonable Efforts to deliver the deliverables under each Project Plan in accordance with the PS and timelines set forth therein. The PS of each Project Plan shall be in line with the general PS in this Agreement set
forth in Schedule 1.82. 

  

	2.3	 Project Plan Framework. Each Project Plan will provide a framework for the applicable Project. Each
Project Plan will include the following activities (all as will be more specifically set forth in the applicable Project Plan): 

  

	 	(a)	 Merck will deliver to Sutro Antibody-construct sequences encoding for [*] directed against the applicable Named
Target or Accepted Target (the “Antibody-Construct Sequences”) and, as the case may be, one or more Merck Payloads and / or one or more Merck Linkers. 

 

	 	(b)	 Sutro will use Commercially Reasonable Efforts to create ADCs using such Merck Antibody-Construct Sequences
and, as the case may be, using such Merck Payloads and / Merck Linkers in quantities and meeting the PS set forth in the respective Project Plan. 

  

	 	(c)	 Sutro will deliver to Merck any such Antibodies generated or modified under this Agreement and / or resulting
ADCs (the “Delivered Materials”) and such Sutro Payloads and / or Sutro Linkers and other appropriate reagents and reference standards each, in such quantities and otherwise as contemplated under the Project Plan or otherwise agreed
to by the Parties. The ownership of the tangible Delivered Materials shall be and remain with Merck; provided that ownership of underlying intellectual property rights shall be in accordance with ARTICLE 8. 

 

	 	(d)	 Non-GLP Toxicology Studies, GLP Toxicology Studies, and PK/PD studies
with respect to such Delivered Materials will be conducted by Sutro or Merck, as specified in the applicable Project Plan. 

  

	 	(e)	 Each Project Plan will include a budget and timeline for Sutro’s activities thereunder, including with
respect to Sutro FTEs to be funded by Merck. 

  

	2.4	 Project Failure. In case of technical failure, i.e., Sutro is not able to generate at [*] ADCs that meet
the PS for a Named Target or Accepted Target under a Project Plan, or if the Project Leaders reasonably determine that it is scientifically or technically not feasible to create [*] ADCs directed to the applicable Named Target or Accepted Target in
accordance with the PS set forth in the applicable Project Plan, then Merck may at its own discretion replace the Named Target or Accepted Target, subject to the gate keeping process set forth in Section 2.6, within three months of the
JPT’s notice of its failure to produce at least [*] ADCs meeting the PS or such determination by the Project Leaders. For clarity, the exclusivity as described in Section 2.10 will be transferred from the replaced Named Target or replaced
Accepted Target to the new Accepted Target, and the 

  

					
		  	16	  	*Confidential Treatment Requested.

 replaced Named Target or replaced Accepted Target shall no longer be deemed to be a Named Target
or Accepted Target under this Agreement, Merck will have no further right or license under this Agreement with respect to the replaced Named Target or Accepted Target and the replaced Named Target or Accepted Target shall no longer be subject to the
exclusivity under Section 2.10. Notwithstanding the foregoing, Merck shall only have the right to replace a Named Target or Accepted Target in accordance with this Section 2.4 and the procedure set forth in Section 2.9 during the [*]
year period following the Effective Date. 
  

	2.5	 Availability of Targets. Merck may designate up to six (6) Targets under this Agreement as follows:
The [*] Target are the Named Targets set forth in the Collaboration Agreement. Merck may designate a [*] Additional Target as Accepted Targets in accordance with Sections 2.5 and 2.6 at any time prior to [*]. Merck may designate a [*] Additional
Target as Accepted Targets in accordance with Sections 2.5 and 2.6 at any time [*]. All such Additional Targets that become Accepted Targets will be set forth on Schedule 1.1. 

 

	2.6	 Gatekeeper Process. Within 10 business days of the Effective Date, the Parties shall enter into an
agreement with the Gatekeeper in order to establish the below process by which Merck may designate Additional Targets. In order to designate an Additional Target under Section 2.4 or Section 2.5 Merck will provide the Gatekeeper with a
confidential written description of such Additional Target, including to the extent available, the Name and UniProt/SwissProt identifier for such proposed Additional Target. Within five (5) Business Days following Gatekeeper’s receipt of
such written notice with respect to a particular proposed Additional Target, Sutro will ensure that the Gatekeeper will notify Merck in writing whether the proposed Additional Target is Available for designation as an Accepted Target under a Project
Plan. The Parties hereby acknowledge and agree that a proposed Additional Target will be “Available” for designation by Merck as an Accepted Target unless (a) Sutro or its Affiliate is actively conducting research and
development directed to such Target with a Third Party prior to the date of receipt of the written notice from Merck to the Gatekeeper, or (b) Sutro or its Affiliate is actively engaged in its own internal program for ADC Development involving
such Target (as further evidenced by written notice thereof to the Gatekeeper prior to the date of receipt of the written notice from Merck to the Gatekeeper). If for three (3) subsequent proposed Additional Targets the Gatekeeper notifies
Merck that the proposed Additional Target is not Available, and the unavailability for each is by reason of clause (b) above, then Merck shall have the right to conduct an audit, upon reasonable notice during normal business hours and at
Merck’s own expense, of Sutro’s internal programs directly related to such Additional Targets (and not any of its programs with, or on behalf of, a Third Party) solely to determine the accuracy of the Gatekeeper’s notification of
unavailability for such proposed Additional Targets. All information obtained by Merck in conducting such audit shall be Sutro’s Confidential Information. 

 

	2.7	 Non-Availability of Target. For clarity, in the event that the
Gatekeeper notifies Merck that a proposed Additional Target is not Available pursuant to the procedures set forth in Section 2.6, Merck will not have exhausted any of its rights to designate an Additional Target as an Accepted Target within the
applicable selection period. The applicable selection period for an Additional Target shall only be extended if the Gatekeeper responded in more than the five (5) Business Days as required under Section 2.6, and such extension shall be
equal to the delay beyond such five (5) Business Days. 

  

	2.8	 Availability of Named Targets. The Parties acknowledge and agree that, as of the Effective Date, the
Named Targets are Available, and the procedures set forth in Section 2.6 will not apply to such Named Targets, other than with respect to replacement of such Named Targets in accordance with Section 2.4. 

  

					
		  	17	  	*Confidential Treatment Requested.

	2.9	 Availability of Additional Target and Designation as an Accepted Target under a Project Plan. In the
event that the Gatekeeper notifies Merck that a proposed Additional Target is Available for designation as an Accepted Target under a Project Plan in accordance with Section 2.5, then within five (5) Business Days following Merck’s
receipt of such notification, Merck shall provide the identity of the proposed Additional Target to Sutro. The Parties shall discuss the inclusion of such proposed Additional Target and Sutro shall inform Merck within ten (10) Business Days
after notification from Merck whether Sutro believes in good faith that such proposed Additional Target will not be suitable for the generation of ADCs. If Sutro informs Merck during such ten (10) Business Days that Sutro believes that such
proposed Additional Target will not be suitable for the generation of ADCs, then Merck shall have the right to withdraw the proposed Additional Target and submit another proposed Additional Target in accordance with Section 2.6, or Merck may
provide written notification to Sutro within five (5) Business Days that it still desires to designate the proposed Additional Target as an Accepted Target. If Sutro does not inform Merck that such proposed Additional Target will not be
suitable for the generation of ADCs during such ten (10) Business Days, or if Merck notifies Sutro in writing during such five (5) Business Days that it still desires to designate the proposed Additional Target as an Accepted Target, then
at the expiration of such ten (10) Business Days or receipt of such written notice, as applicable (a) such proposed Additional Target shall be designated as an Accepted Target, and (b) the JPT will promptly meet to draft a Project
Plan for such Accepted Target and will use good faith efforts to agree on such Project Plan within four (4) months. Upon written agreement by the Project Leaders on a proposed Project Plan for such Accepted Target the corresponding Project will
commence. In addition to Section 2.10, the Parties agree that during the time period commencing with the receipt of the notification of Availability of an Additional Target from the Gatekeeper until its designation as an Accepted Target, such
Target shall not be available for a collaboration between Sutro and a Third Party. 

  

	2.10	 Exclusivity. During the Term on a Named Target or Accepted Target—by Named Target or Accepted
Target basis, Sutro will collaborate exclusively with Merck with respect to ADCs directed against such Named Target or Accepted Target during the period commencing with (i) the effective date of the Collaboration Agreement for Named Targets,
(ii) the designation of an Additional Target as an Accepted Target under a Project Plan by Merck pursuant to Section 2.9 or (iii) the replacement of a Named or Accepted Target pursuant to Section 2.4 with a new Accepted Target
and ending on the earliest of (a) such date as Merck notifies Sutro of termination of the corresponding Project and directs Sutro to stop work on the corresponding Project Plan; (b) the date on which such Named Target or Accepted Target is
replaced with another Accepted Target under Section 2.4 or (c) the date Merck terminates or otherwise ceases (which date Merck shall promptly notify Sutro thereof) all activities by or on behalf of Merck with respect to a Product, in each
case corresponding to such Named Target or Accepted Target (each such period, a “Target Exclusivity Period”). For purposes of this Section 2.10, “collaborate exclusively” means that Sutro will not either directly, or
to its Knowledge indirectly, discover, research, Develop or Commercialize ADCs, including by granting any right or license, including granting any covenant not to sue, with respect to any of the Named Targets or Accepted Targets. In the case of a
Change of Control of Sutro, or if Sutro or an Affiliate of Sutro acquires any Third Party, business or assets, or any interest therein (a “Sutro Business Acquisition”), then the aforementioned restrictions shall not apply to any
research, development or commercialization program that a portion of the surviving entity or Affiliate that was not Sutro (prior to the Change of Control or Sutro Business Acquisition) had ongoing as of immediately prior to the date of such Change
of Control or Sutro Business Acquisition. In the event that Sutro enters into such activities then it shall thereupon be considered to be in material breach of this Agreement and Merck shall have the right to terminate this Agreement in accordance
with Section 12.3(a) or reduce payments in accordance with Section 12.4(a) (iv). Unless Merck decides to reduce payments according to Section 12.4 (a) (iv), the foregoing remedies shall not be exhaustive with respect to breach by Sutro of
this Section 2.10. 

  
 18 

	2.11	 [*]. In the event that a Project involves the use of a [*] Merck Antibody, and the Targets against which
the Merck Antibody is directed are not Accepted Targets or Named Targets, that have not been replaced pursuant to Section 2.4, in separate, non-terminated Projects, then (a) Merck must designate [*],
as the case may be, Additional Targets under Section 2.5 [*], (b) a single Project and associated Project Plan will govern the creation of an ADC incorporating such Merck Antibody Directed to all such Additional Targets and (c) Sutro will
collaborate exclusively with Merck with respect to ADCs directed to each such Additional Target pursuant to Section 2.10. 

In the event that a Project involves the use of a [*] Merck Antibody, and one or more of the Targets against which the Merck Antibody is
directed are non-replaced Accepted Targets or Named Targets in other non-terminated Projects, then Merck is only required to designate those Targets as Additional
Targets, that are not the Accepted Targets or Named Targets of non-terminated other Projects under this Agreement. For example, if a first Merck Antibody in a
non-terminated Project is directed against the Target set forth on Schedule 1.64 and a [*] Merck Antibody in a non-terminated Project is directed against the Target set
forth on Schedule 1.64 and one other Target that is not an Accepted Target or a Named Target, then Merck shall only be required to designate one other Additional Target pursuant to Section 2.5 against such other Target. 

ARTICLE 3 
 GOVERNANCE

  

	3.1	 Alliance Managers. Promptly following the Effective Date, each Party will designate an alliance manager
to be reasonably available to the other Party to facilitate communication, respond to questions and otherwise oversee that the Parties’ activities hereunder are in line with this Agreement. Such alliance managers will regularly interact with
each other on a frequency to be mutually agreed by the Parties and on an ad hoc basis if requested by the Joint Project Team or the Project Leaders. A Party may replace its alliance manager at any time by written notice to the other Party.

  

	3.2	 Appointment of Project Leaders. Within ten (10) Business Days after the Effective Date, each Party
will appoint an individual from senior management of such Party with decision making authority to be a project leader (each, a “Project Leader”) to oversee the Parties’ activities under this Agreement. A Party may change its Project
Leader at any time by written notice to the other Party. Such Project Leader may, but is not required to, serve as a representative of its respective Party on the JPT. The Parties may allow additional employees to attend meetings of the Project
Leaders and may consult with additional employees and advisors prior to making a decision, subject to the confidentiality provisions of Article 9. The office of the Project Leaders will exist until the completion of the Sutro Development Activities
under the last Project Plan. 

  

	3.3	 Project Leaders Functions and Authority. The Project Leaders will be responsible for supervising and
managing the Projects. Their functions will be: 

  

	 	(a)	 overseeing and coordinating the progress, timelines, Project Budget and Results; 

 

	 	(b)	 reviewing and approving each Project Plan (including the Project Budget) and any proposed amendments to the
Project Plans; provided that the Project Plan (including the Project Budget) for the Named Targets attached hereto as Exhibit A1 shall be deemed approved by the Project Leaders; 

  

					
		  	19	  	*Confidential Treatment Requested.

	 	(c)	 reviewing each Party’s reports regarding its activities under each Project Plan; 

 

	 	(d)	 deciding whether it is scientifically or technically feasible to create [*] ADCs directed to the applicable
Named Target or Accepted Target in accordance with each Project Plan; 

  

	 	(e)	 deciding whether an ADC meets the applicable PS set forth in each Project Plan; 

 

	 	(f)	 approving, in writing, updates and amendments to the Sutro Development Activities, including all relevant
timelines and Project Budget; 

  

	 	(g)	 approval of the Strategic IP Plan and approval of any changes to the Strategic IP Plan; 

 

	 	(h)	 resolving any disputes delegated to the Project Leaders by the JPT or the JIPC; and 

 

	 	(i)	 performing such other functions as the Parties may mutually agree in writing. 

 

	3.4	 Meetings of the Project Leaders. During the period in which there are active Projects, the Project
Leaders will meet in person or by teleconference or videoconference at least once every Calendar Quarter. The Project Leaders also may choose to meet more frequently on an as needed basis. In advance of each meeting of the Project Leaders, the JPT
will provide a Quarterly Report to the Project Leaders. 

  

	3.5	 Decisions of the Project Leaders. The Project Leaders will take action by unanimous consent or by a
written resolution signed by the Project Leaders. In the event the Project Leaders are unable to reach unanimous consent on any matter provided in Section 3.3, then the Project Leaders shall first consult with relevant members of their
delegation to the JPT and, after such consultation, reconvene to attempt to reach unanimous consent on the matter. If after such effort the Project Leaders are still unable to reach unanimous consent, then except for a dispute on a matter in
subclause (d) or (e) or (g) in Section 3.3, Merck acting reasonably and in good faith shall make the final determination on the applicable matter. With respect to a dispute on a matter in subclause (d) or (e) in Section 3.3,
the matter shall be escalated to the Executive Officers in accordance with Section 13.2; provided that if the Executive Officers are unable to reach unanimous consent on the matter within thirty (30) days, then Merck acting reasonably and
in good faith shall make the final determination on the applicable matter. With respect to a dispute on a matter in subclause (g) in Section 3.3, the matter shall be escalated to the Executive Officers in accordance with Section 13.2;
provided that if the Executive Officers are unable to reach unanimous consent on the matter within thirty (30) days, then the Parties shall submit the matter to an arbitrator as follows: (a) the arbitrator will be selected by the Parties
and shall have expertise in patent protection and strategy, (b) within fifteen (15) days after appointment of the arbitrator each Party shall deliver to the arbitrator and the other Party its proposal regarding the dispute, (c) the
arbitrator shall give each Party the opportunity to explain to the arbitrator why its proposal is more appropriate than the other Party’s proposal, which may include conducting an oral argument or an evidentiary hearing if the arbitrator
determines that it would assist the arbitrator’s decision of which proposal to select, (d) the arbitrator shall, within fifteen (15) days after receipt of the two proposals and having heard each Party’s rationale for its
proposal, select one of the proposals from the two (2) submitted, and (e) the proposal selected by the arbitrator shall be binding on the Parties as if mutually agreed by the Parties and the arbitrator may not modify or alter the terms in
either Party’s proposal. 

  

					
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	3.6	 Minutes and Reports of the Project Leaders. The Project Leaders will document their decisions regarding
each Project Plan in the meeting minutes. Promptly after each meeting, one Project Leader will provide the other with a draft version of the meeting minutes for review and comment. Within forty (40) Business Days of each meeting, the Project
Leaders will provide the Parties and the JPT with a final agreed version of the meeting minutes. 

  

	3.7	 Limitations. The Project Leaders shall have no power to amend this Agreement and shall have only such
powers as are specifically delegated to it hereunder. The Project Leaders, and Merck in the exercise of its final decision-making authority under Section 3.5, will not have the power to: (a) determine that Sutro has breached any obligation
under this Agreement; (b) determine that a milestone event required for the payment of a milestone payment has or has not occurred; (c) make a decision that is expressly stated to require the mutual agreement of the Parties; (d) amend
the Sutro Development Activities to require Sutro to conduct any other or different activities; or (e) expand Merck’s rights or reduce Merck’s obligations under this Agreement. 

 

	3.8	 Formation and Composition of the Joint Project Team. The joint project team established under the
Collaboration Agreement (the “JPT” or “Joint Project Team”) shall continue in its function under this Agreement. The Parties shall notify one another in writing of any change in the membership of the JPT. Each Party may exchange
its representatives on the JPT upon written notice to the other Party. The JPT will exist until the completion of the Sutro Development Activities under the last Project Plan. 

 

	3.9	 JPT Functions and Powers. The JPT shall manage the activities of the Parties under this Agreement during
the time Sutro is performing the Sutro Development Activities. During that time the JPT shall: 

  

	 	(a)	 draft the Project Plans (including the budgets therein) for each Project and proposing such Project Plans for
approval by the Project Leaders; 

  

	 	(b)	 oversee the implementation of, monitor, document and report the progress of, and propose amendments to each
Project Plan, including the allocation of qualified personnel, timelines, Project Budget and Results; 

  

	 	(c)	 monitor the progress of the Sutro Development Activities and review, discuss and comment on any Results
thereunder; 

  

	 	(d)	 evaluate whether it is scientifically or technically feasible to create an ADC directed to the applicable
Accepted Target in accordance with each Project Plan and make a recommendation to the Project Leaders; 

  

	 	(e)	 evaluate whether an ADC meets the applicable PS set forth in each Project Plan and make a recommendation to the
Project Leaders; 

  

	 	(f)	 prepare Quarterly Reports based on reports to be provided by each Party of such Party’s activities during
the applicable Calendar Quarter; 

  

	 	(g)	 serve as the first forum for the settlement of disputes or disagreements resulting from or arising out of this
Agreement; 

  

	 	(h)	 perform such other functions as appropriate to further the purposes of this Agreement, as mutually agreed to in
writing by the Parties. 

  
 21 

	3.10	 Limitations of Powers of the JPT. The JPT shall have no power to amend this Agreement or any Project
Plan and shall have only such powers as are specifically delegated to it hereunder. 

  

	3.11	 Determinations of the JPT. The JPT will take action by unanimous consent of the Parties, with each Party
having a single vote, irrespective of the number of representatives actually in attendance at a meeting, or by a written resolution signed by the designated representatives of each of the Parties. In the event the JPT is unable to secure unanimous
consent on any matter, the JPT shall delegate such matter to the Project Leaders. 

  

	3.12	 Meetings of the JPT. The JPT shall hold meetings twice monthly by videoconference, telephone, web
conference, or face to face meetings but in no event, shall such meetings be held in person less frequently than once every six (6) months, unless otherwise agreed by the JPT. At least three (3) members of the JPT will constitute a quorum
for any meeting, provided that at least one (1) representative from each Party is present. The Project Leaders will alternately be responsible for organizing the meetings of the JPT and for distributing the agenda of the meetings. The Project
Leader will include on the agenda any item within the scope of the responsibility of the JPT that is requested to be included by a Party, and will distribute the agenda to the Parties no less than two (2) days before any meeting of the JPT. A
Party may invite other senior personnel of their organization to attend meetings of the JPT, as appropriate, provided, however, that such other senior personnel shall not have any duties of a JPT member. Each Party shall be responsible for its
travel costs incurred for attending JPT meetings. 

  

	3.13	 JPT Meeting Minutes. Minutes will be kept of all JPT meetings by a member of the JPT designated by the
JPT and sent to all members of the JPT for review and approval within five (5) days after each meeting. Minutes will be deemed approved unless any member of the JPT objects to the accuracy of such minutes by providing written notice to the
other members of the JPT within three (3) days of receipt of the minutes. In the event of any such objection that is not resolved by mutual agreement of the Parties, such minutes will be amended to reflect such unresolved dispute. In advance of
each quarterly meeting of the Project Leaders, the JPT will prepare a report for the Project Leaders detailing the progress of activities under each Research Plan, any decisions that are needed from the Project Leaders and any matters on which the
JPT could not reach agreement (each a “Quarterly Report”). 

  

	3.14	 Urgent Matters. Notwithstanding anything in Section 3.4 or Section 3.11 expressed or implied
to the contrary, in the event that an urgent issue or matter arises, that requires prompt action by the Project Leaders and / or the JPT, the Project Leaders and / or the JPT shall meet for the purpose of resolving the issue or matter. Such meeting
shall take place as promptly as possible, with the immediacy of the issue or matter requiring action determining the time, place and manner of the conduct of the meeting 

 

	3.15	 Joint Intellectual Property Committee. As soon as practicable after the Effective Date, the Parties
shall form a joint intellectual property committee (the “Joint Intellectual Property Committee” or “JIPC”). The JIPC shall comprise no more than four (4) members, and shall be composed of an equal number of
representatives from each Party. 

  

	3.16	 Functions and Authority. During the Term the JIPC shall: 

 

	 	(a)	 for each Project, draft and propose a Strategic IP Plan (and any amendments thereto) to the Project Leaders,
which Strategic IP Plan at a minimum needs to detail the countries of filing and a patent filing strategy, which strategy shall (1) be aligned between the Parties to secure the maximum protection of Merck Technology, Product Technology, Sutro

  
 22 

	 	
Platform Technology and Sutro Technology, (2) include that in case that any proposed filing with respect to a Product Patent discloses a species generically covered by any proposed or
already filed Sutro Patent and / or Sutro Platform Patent, Merck and Sutro will use good faith efforts to coordinate filings with respect to such Product Patent and such Sutro Patent and / or Sutro Platform Patent so that filings with respect to
such Product Patent are made no earlier than the same day that filings with respect to such Sutro Patent and / or Sutro Platform Patent are made and (3) include that any proposed filing of a Sutro Patent and / or Sutro Platform Patent must not
disclose unpublished Product Know-How without the JIPC’s prior written consent; 

  

	 	(b)	 oversee the drafting, filing, prosecution and maintenance of all Patent Rights generated from the activities
under this Agreement in accordance with the Strategic JP Plan and Article 8, which shall include overseeing Sutro’s reasonable opportunity to comment on all Product Patent filings and Merck’s obligation to reasonably consider in good faith
Sutro’s comments with respect thereto; 

  

	 	(c)	 as necessary, take day-to-day
decisions relating to the drafting, filing, prosecution and maintenance of the resulting Patent Rights in accordance with the Strategic JP Plan and Article 8; 

 

	 	(d)	 report to the Project Leaders on the drafting, filing, prosecution and maintenance of such Patent Rights;

  

	 	(e)	 propose to the Project Leaders any changes or additions to the Strategic IP Plan that the JIPC deems fit, and
upon approval of said changes and additions, implement said changes and additions and 

  

	 	(f)	 consider whether it is necessary to enter into any license agreements with a Third Party in respect to a
Project, ADC or Product. 

  

	3.17	 Meetings of the JIPC. During the Term, the JIPC will meet in person or by teleconference or
videoconference on a frequency to be determined by the JIPC. 

  

	3.18	 Decisions of the JIPC. The JIPC will take action by unanimous consent of the Parties, with each Party
having a single vote, irrespective of the number of representatives actually in attendance at a meeting (but provided that at least one representative from each Party is in attendance), or by a written resolution signed by the designated
representatives of each of the Parties. In the event the JIPC is unable to secure unanimous consent on any matter the decision shall be escalated to the Project Leaders. The JIPC shall however have no authority to amend any Strategic IP Plan or this
Agreement. 

  

	3.19	 Minutes and Reports of the JIPC. The JIPC will document their decisions regarding each Strategic IP Plan
in the meeting minutes. Promptly after each meeting, one member of the JIPC will provide the others with a draft version of the meeting minutes for review and comment. Within forty (40) Business Days of each meeting, the JIPC will provide the
Parties and the Project Leaders with a final agreed version of the meeting minutes. 

  
 23 

 ARTICLE 4 

LICENSES AND OTHER RIGHTS 
  

	4.1	 Grant of License to Merck. Subject to the terms and conditions of this Agreement, Sutro hereby grants to
Merck and its Affiliates an exclusive (even as to Sutro, except to the extent necessary for Sutro to perform the obligations and exercise the rights set forth in this Agreement), worldwide, royalty-bearing right and license (with the right to
sublicense, subject to the provisions of Section 4.4) under the Sutro Technology, the Sutro Platform Technology, and Sutro’s interest in Joint Technology to Exploit (subject to the provisions of Article 5) each Product in the Territory in
the Field. The foregoing license shall not be deemed to grant rights to any biologic or other active pharmaceutical ingredient that may be included in a Product, apart from the ADC included in the Product. The license granted pursuant to this
Section 4.1 shall not include any sublicense under the Stanford In-License, or any other rights to any Stanford Manufacturing Know-How or any other Stanford
Technology, unless and until Merck receives such license pursuant to Section 5.8 to manufacture the Product itself. 

  

	4.2	 CFE Manufacturing Technology Back-up License to Merck. Subject
to the terms and conditions of this Agreement, Sutro hereby grants to Merck and its Affiliates a non-exclusive, worldwide, right and license (without the right to sublicense except to the Merck CMO, as
provided below) under the CFE Manufacturing Technology in the Territory in the Field, which shall be exercisable solely in the event of Sutro’s Inability To Perform and solely for granting a sublicense to a contract manufacturing organization
selected by Merck (“Merck CMO”) to use the CFE Manufacturing Know-How transferred to the Merck CMO in case of Sutro’s Inability To Perform. Furthermore, (i) the Merck CMO shall not,
and shall be contractually required not to, share with, or disclose to, any Third Parties (other than to a Merck CMO) any such CFE Manufacturing Know-How transferred by Sutro to such Merck CMO, and
(ii) upon termination of the manufacturing agreement between Merck and the Merck CMO, the Merck CMO shall return to Sutro or, at Sutro’s written request, destroy such CFE Manufacturing Know-How, and
provide to Sutro a written confirmation thereof. Provided that the safeguards foreseen under this Section 4.2 are respected, Merck shall have the right to change the Merck CMO at its sole discretion. The foregoing grant of rights shall not
result in a royalty payable for the manufacture of the CFE, but shall continue to incur royalties for the final sale of Product in accordance with Article 7. 

  

	4.3	 Stanford In-License Requirements. The licenses granted under
Section 4.1 and Section 4.2 shall be subject to, and limited by, the terms of Sections 4.3 and 15.3(D) of the Stanford In-License, and Merck agrees to comply with all such terms, including those set forth in Schedule 4.3.

  

	4.4	 Grant of Sublicense by Merck. Merck shall have the right, in its sole discretion, to grant sublicenses
to the Product under the licenses granted in Section 4.1; provided, however, that the granting by Merck of a sublicense (a) shall not relieve Merck of any of its obligations hereunder or any liability under this Agreement and (b) any
such sublicense shall be consistent with the terms and conditions of this Agreement. 

  

	4.5	 Trade Marks. As between Sutro and Merck, Merck shall have the sole authority to select trademarks for
each Product and shall own all such trademarks. 

  

	4.6	 Sutro Reporting. If Sutro becomes aware of any issues related to the Sutro Technology or the Sutro
Platform Technology, or the CFE Manufacturing Technology which may affect the Development, Commercialization or use of any Product, then Sutro shall provide Merck with all such information within such reasonable timelines which enable Merck to
assess any impact on the Product. 

  
 24 

 ARTICLE 5 

DEVELOPMENT, MANUFACTURE AND COMMERCIALIZATION OF PRODUCT 
  

	5.1	 Development of the Product by Merck. Merck shall have the exclusive right, and sole responsibility and
decision-making authority, to research and Develop each Product and to conduct (either itself or through its Affiliates, agents, subcontractors and/or Sublicensees) all Clinical Trials and non-clinical studies
Merck believes appropriate to obtain Regulatory Approval for each Product in the Field. 

  

	5.2	 Sutro Support in Development. Sutro shall make its employees, consultants, contractors, advisors and
agents (“Representatives”) that are knowledgeable regarding the Sutro Technology, the Sutro Platform Technology or each Product (including the properties and functions thereof) reasonably available to Merck for scientific and
technical explanations, advice and on-site support that may reasonably be required by Merck relating to the Development of each Product (the “Development Support”). The reasonable agreed costs
of the Development Support to be provided by Sutro shall be reimbursed by Merck. 

  

	5.3	 Commercialization. Merck shall have the exclusive right, and sole responsibility and decision-making
authority, to Commercialize any Product itself or through one or more Affiliates or Sublicensees or other Third Parties selected by Merck and shall have the sole decision-making authority and responsibility in all matters relating to the
Commercialization of the Product. 

  

	5.4	 Research Material Manufacturing. Sutro shall manufacture and supply research quantities of the Product
as reasonably required in order for the Parties to perform the activities pursuant to the applicable Project Plan. The cost for the supply of such research quantities of Product is included in the Project Budget of the corresponding Project Plan.
However, Merck acknowledges that Sutro’s facilities may only permit, based on generally accepted industry standards for management of high-potency pharmaceutical compounds, the handling of certain quantities of the applicable toxins necessary
for inclusion in the Product, and if the quantity of Product required exceeds such quantities of toxin, Sutro will need to engage a Third Party contract manufacturer (“CMO”) to manufacture such research quantities of toxin (and
associated Linker) and to conjugate such toxin and Linker to the appropriate Antibody, which will be manufactured by Sutro. Merck shall have the right to perform a quality audit of the CMO and Sutro shall only engage such CMO upon Merck’s
written approval of the CMO and the associated costs, such approval not to be unreasonably withheld. In such case, Merck shall be responsible for the costs of such CMO (including technology transfer and
ramp-up) to manufacture the Product. 

  

	5.5	 Product Supply Agreement. In addition, the Product for use in GLP Toxicology Studies will be
manufactured and supplied solely by Sutro pursuant to a separate supply agreement (the “Product Supply Agreement”), in sufficient quantities and quality (as mutually agreed by the Parties and set forth in a supply plan) at a
transfer price of [*] to permit Merck to conduct the GLP Toxicology Studies. At Merck’s election, the Product Supply Agreement shall also include the supply by Sutro to Merck of Product for Phase I Clinical Trials and Phase II Clinical Trials.
The Parties shall negotiate in good faith and execute such Product Supply Agreement at the latest on the date that is [*] after written notice by Merck to Sutro of its desire to enter into a Product Supply Agreement (the “Merck Notification
Date”). If the Parties are unable to agree on a Product Supply Agreement by the date that is [*] months after the Merck Notification Date, Sutro will initiate the transfer of the process for production of the Product to a CMO as set forth
in Section 5.7. 

  

					
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	5.6	 CFE Supply. 

(a) Supply by Sutro. Within [*] months after Sutro’s delivery of the first ADCs that meet the PS, Sutro and Merck shall negotiate
in good faith the terms of the supply agreement for the supply of Cell Free Extract for use in the manufacture of Product (the “CFE Supply Agreement”) at a transfer price of the Cost of Goods. Except as set forth in Section 5.6
(b), Merck shall purchase CFE exclusively from Sutro. Attached hereto as Schedule 5.6 are the non-binding terms for the CFE Supply Agreement. If the Parties are unable to reach agreement on the terms of the CFE Supply Agreement by the end of such
[*] month period, then within thirty (30) days following the end of such [*] month period the Parties shall submit the matter to an arbitrator as follows: (a) the arbitrator will be selected by the Parties and shall have expertise in
biopharmaceutical manufacturing and supply agreements, (b) each Party shall deliver to the arbitrator and the other Party its proposed draft of the CFE Supply Agreement based on the CFE Supply Agreement Term Sheet as attached in Schedule 5.6,
(c) the arbitrator shall give each Party the opportunity to explain to the arbitrator why its draft of the CFE Supply Agreement is more appropriate than the other Party’s, which may include conducting an oral argument or an evidentiary hearing
if the arbitrator determines that it would assist the arbitrator’s decision of which draft of the CFE Supply Agreement to select, (d) the arbitrator shall, within fifteen (15) Business Days after receipt of the two draft CFE Supply
Agreements and having heard each Party’s rationale for its proposal, select one draft CFE Supply Agreement from the two (2) submitted, that fully reflects the CFE Supply Agreement Term Sheet and (e) the draft CFE Supply Agreement
selected by the arbitrator shall be executed by both Parties and binding on the Parties and the arbitrator may not modify or alter the terms of the CFE Supply Agreement. If the Parties cannot agree on an arbitrator within fifteen (15) days
after the end of the [*] month period, then the London Chamber of Commerce and Industry shall appoint the arbitrator. 
 (b) Supply by
CMOs. In addition, upon Merck’s request, Sutro will enter into appropriate agreements to transfer the process for production of Cell Free Extract to [*] selected by Sutro and reasonably acceptable to Merck (the “CFE-CMOs”) in order to allow for the manufacture and supply of the Cell Free Extract for production of the Product in the required quantity and quality on terms and conditions [*] (the “CFE CMO
Supply Agreement”), provided that, Merck may make such request for (1) [*] no earlier than [*] ([*]) months after Sutro’s delivery of [*], and (2) [*], no earlier than [*] ([*]) months prior to the first planned Phase III Clinical
Trial of a Product. Merck shall reimburse Sutro for its reasonable costs to effect the transfer of technology consistent with standard industry rates for services of this kind. Merck shall have the right to perform a quality audit of any CFE-CMO and Sutro shall only engage any such CFE-CMO upon Merck’s [*] of such CFE-CMO. Any CFE CMO Supply Agreements will be
solely for the supply of CFE to be used in the manufacture of Products for Merck. The CFE CMO Supply Agreement between Sutro and each such CMO will provide for the license and transfer of the relevant processes, documents, and materials included in
any Know-How controlled by Sutro, as necessary for such manufacture and supply; provided that, [*], such CMO shall not share with, or disclose to, Merck, its Affiliates or subcontractors any know-how transferred by Sutro to such CMO, and Merck, its Affiliates and subcontractors shall not solicit any such sharing or disclosure. Sutro shall cooperate with Merck on the final form of CFE CMO Supply
Agreement to be used with each such CMO and any such CFE CMO Supply Agreement shall include terms [*]. In the event of Sutro’s Inability To Perform, then Sutro shall [*]. The grant of rights from Sutro to each such CMO shall not result in a
royalty payable for the manufacture of the CFE, but the final sale of Product shall continue to incur royalties in accordance with Article 7. 

  

					
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 (c) Support by Sutro. In addition, Sutro shall, or shall cause, representatives that are
knowledgeable regarding the CFE Manufacturing Technology reasonably available to Merck for scientific and technical explanations, advice and on-site support, as reasonably required by Merck (the “CFE
Manufacturing Support”), including the subject matter of the manufacturing technology transfer and manufacturing scale-up. The reasonable agreed costs for the CFE Manufacturing Support to be provided
by Sutro shall be reimbursed by Merck. 
  

	5.7	 CMO Supply. If, at any time commencing with the GMP production of Product for use in Phase I Clinical
Trials, Merck desires to have Sutro enable [*] to manufacture Product (the “Product CMOs”, [*], then Merck shall notify Sutro in writing. Following such request, Sutro will enter into appropriate agreements to transfer the process
for production of the Product to [*] that [*] in order to allow for the manufacture and supply of the Product in the required quantity and quality. The agreement between Sutro and each such CMO will provide for the license and transfer of the
relevant processes, documents, and materials included in any Know-How controlled by Sutro, as necessary for such manufacture and supply; provided that such CMO shall not transfer any tangible embodiments of
the CFE, and Merck, its Affiliates and subcontractors shall not solicit any such sharing or transfer. Sutro shall cooperate with Merck on the final form of supply agreement to be used with each such CMO and shall include in any agreement that such
CMO is authorized to manufacture and supply Product exclusively to Merck. [*]. 

  

	5.8	 Phase III Clinical Trial and Commercial Manufacturing Supply. Except as otherwise provided in this
ARTICLE 5, and not including the right to produce Cell Free Extract (which shall be governed by Section 5.6), Merck shall have the exclusive right to manufacture the Product itself or through one or more Affiliates or Sublicensees or other
Third Parties selected by Merck (including, at Merck’s election, an existing Product CMO). No earlier than [*] months prior to the planned start of the first Phase III Clinical Trial for a Product and pursuant to written notice by Merck to
Sutro and a transfer plan to be agreed upon by the Parties, Sutro will transfer to Merck the process for production of the Product, including any Sutro Know-How and any Sutro Platform Know-How relating to the Product, using the Cell Free Extract. Sutro shall make representatives that are knowledgeable regarding the Sutro Platform Technology, the Sutro Technology and / or the Product reasonably
available to Merck for scientific and technical explanations, advice and on-site support, that may reasonably be required by Merck, relating to the manufacture of the Product and the manufacturing technology
transfer (the “Manufacturing Support”), including the subject matter of the manufacturing technology transfer and manufacturing scale-up. The reasonable agreed costs of the Manufacturing
Support to be provided by Sutro shall be reimbursed by Merck consistent with standard industry rates for services of this kind. At such time as the process for the production of the Product is transferred to Merck [*], the license in
Section 4.1 shall include a sublicense under the Stanford In-License to the Stanford Manufacturing Know-How and Stanford Technology necessary to produce the Product
using the CFE. Sutro shall deliver or cause to be delivered the CFE to Merck and / or the Product CMOs specified by Merck pursuant to the CFE Supply Agreement set forth in Section 5.6. 

 

	5.9	 Diligence by Sutro. Sutro shall use Commercially Reasonable Efforts to perform its manufacture, supply
and technology transfer obligations under this Agreement, and will comply with all Laws and standards governing such manufacture and supply. Specifically, Sutro will ensure that the Cell Free Extract, in the required quality, [*] available from [*]
CMOs for the production of Product. 

  

	5.10	 Diligence by Merck. Subject to Sutro’s fulfillment of its obligations under this Agreement, Merck
shall use Commercially Reasonable Efforts to Develop and seek Regulatory Approval for [*] for each Named Target and Accepted Target, and after receiving Regulatory Approval for any such Product, shall use Commercially Reasonable Efforts to
Commercialize such Product, provided, that 

  

					
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 such Development and Commercialization obligations shall be expressly conditioned upon the
continuing absence of any adverse condition or event relating to the safety or efficacy of the Product, legal impediments, or Third Party intellectual property rights, in each case that would result in the further Development and Commercialization
materially adversely affected, and Merck’s obligation to Develop and Commercialize Product shall be delayed or suspended so long as, in Merck’s opinion, any such condition or event exists. Merck shall have the exclusive right to determine,
in its sole discretion, the launch strategy for Product, subject to its exercise of Commercially Reasonable Efforts and the availability of any necessary Third Party licenses or other rights. Activities by Merck’s Affiliates and Sublicensees
will be considered as Merck’s activities under this Agreement for purposes of determining whether Merck has complied with its obligation to use Commercially Reasonably Efforts. Merck shall be relieved of its diligence obligations under this
Section 5.10 starting from the date Merck provides Sutro with a termination notice pursuant to Section 12.2 or 12.3. If Merck ceases to Develop or seek Regulatory Approval for [*] for a Named Target or Accepted Target (including in the
case Merck determines that it would satisfy Commercially Reasonable Efforts to discontinue its efforts) or ceases to Commercialize such Product, then such Named Target or Accepted Target shall no longer be subject to Section 2.10 and Sutro will
have the right to enter into license or collaboration agreements with a Third Party regarding an ADC to such Named Target or Accepted Target. 
  

	5.11	 Right of Merck to Subcontract. Merck may exercise any of its rights, or perform any of its obligations,
under this Agreement (including any of the rights licensed in Section 4.1) by subcontracting the exercise or performance of all or any portion of such rights and obligations on Merck’s behalf. Any subcontract granted or entered into by
Merck as contemplated by this Section 5.11 of the exercise or performance of all or any portion of the rights or obligations that Merck may have under this Agreement (a) shall not relieve Merck of any of its obligations hereunder or any
liability under this Agreement and (b) any such subcontract shall be consistent with the terms and conditions of this Agreement. 

ARTICLE 6 
 REGULATORY
MATTERS 
  

	6.1	 Regulatory Filings. As between Merck and Sutro, Merck shall own and maintain all regulatory filings and
Regulatory Approvals for the Product, including all INDs and MAAs. 

  

	6.2	 Communications with Authorities. Merck (or one of its Affiliates or Sublicensees) shall be responsible,
and act as the sole point of contact, for communications with Regulatory Authorities in connection with the Development, Commercialization, and manufacturing of Product. Following the Effective Date, Sutro shall not initiate, with respect to
Product, any meetings or contact with Regulatory Authorities without Merck’s prior written consent. To the extent Sutro receives any written or oral communication from any Regulatory Authority relating to Product, Sutro shall (a) refer
such Regulatory Authority to Merck, and (b) as soon as reasonably practicable (but in any event within twenty-four (24) hours), notify Merck and provide Merck with a copy of any written communication received by Sutro or, if applicable,
complete and accurate minutes of such oral communication. 

  

	6.3	 Sutro Technology, Sutro Platform Technology and CFE Manufacturing Technology. If the competent
Regulatory Authority in any country initiates any oral communication with Merck solely regarding the Sutro Technology, Sutro Platform Technology or CFE Manufacturing Technology incorporated into the Product, Merck shall have the right to respond to
such communication to the 

  

					
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extent reasonably necessary or appropriate under the circumstances; provided, however, that (a) Merck shall use reasonable efforts to limit the communications solely regarding the Sutro
Technology, Sutro Platform Technology or CFE Manufacturing Technology incorporated into the Product that are conducted without the participation of Sutro; (b) promptly thereafter, Merck shall provide Sutro with written notice thereof in
reasonably specific detail describing the communications solely regarding the Sutro Technology, Sutro Platform Technology or CFE Manufacturing Technology incorporated into the Product; and (c) Merck promptly shall provide Sutro with copies of
all minutes and other materials resulting therefrom. Merck promptly shall provide Sutro with copies of all written communications from such Regulatory Authority solely regarding the Sutro Technology, Sutro Platform Technology or CFE Manufacturing
Technology incorporated into the Product. With respect to any filing, communication or other submission with the Regulatory Authority of any country solely regarding the Sutro Technology, Sutro Platform Technology or CFE Technology incorporated into
the Product, (i) Merck shall provide Sutro with an advance copy of the reasonably complete draft thereof; (ii) Sutro shall have a reasonable opportunity to review, comment and consult on such draft; (iii) the parties shall discuss
Sutro’s comments solely regarding the Sutro Technology, Sutro Platform Technology or CFE Manufacturing Technology incorporated into such Product; and (iv) Merck shall in good faith consider the reasonable comments of Sutro solely regarding
the Sutro Technology, Sutro Platform Technology or CFE Manufacturing Technology incorporated into such Product. 

  

	6.4	 DMF. Sutro will file the DMF with the FDA. Sutro shall own the DMF and hereby grants to Merck the right
to cross-reference the DMF for the Product, but no right to access the underlying data related to the production of the Cell Free Extract. With respect to any territories where Sutro does not have a DMF or a functional equivalent, Sutro will
coordinate with Merck, at Merck’s request and expense, the preparation and submission of documents and materials [*] necessary or reasonably useful to obtain and / or maintain Regulatory Approval for a Product in such territory, it being
understood that wherever possible Sutro will disclose confidentially Sutro CFE Manufacturing Technology to the applicable Regulatory Authority. 

  

	6.5	 Sutro Support in Regulatory Matters. Subject to written agreement on the scope and Merck’s
reimbursement of costs and expenses Sutro shall make its Representatives that are knowledgeable regarding the Sutro Technology, the Sutro Platform Technology, the CFE Manufacturing Technology or the Product available to Merck for regulatory
explanations, advice and on-site support, that may reasonably be required by Merck relating to regulatory matters (including preparation and filing for any INDs and MAAs and obtaining and maintaining Marketing
Authorizations) (the “Regulatory Support”). [*], Sutro will transfer all documentation as is necessary or reasonably useful to obtain and / or maintain Regulatory Approval for any Product to Merck. 

 

	6.6	 Recalls. Merck shall have the sole right to determine whether and how to implement a recall or other
market withdrawal of the Product. 

 ARTICLE 7 

FINANCIAL PROVISIONS 
  

	7.1	 Initial Fee and Research Fees. In partial consideration of Sutro’s grant of the rights and licenses
to Merck hereunder, Merck shall pay, or cause to be paid, to Sutro a fee of ten million Dollars (USD 10,000,000), [*] following the Effective Date and after receipt of the corresponding invoice from Sutro. Payment of the initial fee shall be subject
to any withholding tax obligations set forth in Section 7.12(a). 

  

					
		  	29	  	*Confidential Treatment Requested.

 Merck will provide research funding to Sutro to engage in the agreed Projects under this
Agreement according to the Project Budget set forth in the Project Plans at the FTE Rate, payable based upon actual work performed as demonstrated by written records quarterly, in arrears. Within thirty (30) days of the end of each Calendar
Quarter in which Sutro is engaged in Sutro Development Activities of any Project, Sutro shall submit an invoice to Merck (addressed to Merck’s Project Leader) for the actual Sutro FTE Expenses it incurred during such Calendar Quarter in
connection with such Sutro Development Activities, together with a written report setting forth in reasonable detail such Sutro FTE Expenses, on the basis of the defined FTE Rate and Project Budget using the format attached hereto as Exhibit B.
Following receipt of such written report and invoice, Merck shall, subject to all of the provisions of this Section 7.1, within thirty (30) days after receipt of such written report and invoice, and after approval by Merck (not to be
unreasonably withheld or delayed) reimburse Sutro for those costs and expenses. Any increase in Sutro FTE Expenses compared to the Project Budget will not be accepted by Merck without prior written consent as described in Section 3.3(f).
Notwithstanding anything express or implied in the foregoing provisions of this Section or elsewhere in this Agreement to the contrary, Merck shall have no obligation to reimburse Sutro in respect of any expenses pursuant to this Section 7.1,
and Sutro shall have no obligation to conduct any Sutro Development Activities, until after such time the JPT has approved in writing: (i) a detailed description of Sutro Development Activities, (ii) the associated timelines in connection
with such Sutro Development Activities and (iii) the applicable Project Budget. 
  

	7.2	 Milestone Payments. As further partial consideration for Sutro’s grant of the rights and licenses
to Merck hereunder, Merck shall pay, or cause to be paid, to Sutro the following non-refundable milestone payments with respect to each Product to achieve the milestone events described below, whether such
achievement is by Merck or its Affiliate or Sublicensee. Merck shall promptly notify Sutro in writing of the achievement of any such milestone event and Sutro shall issue Merck an invoice for the amount of the corresponding milestone payment, which
invoice Merck shall pay within sixty (60) days following receipt of such invoice. 

  

			
	 Milestone event for each Product
	  	 Amount in USD

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

 For the avoidance of doubt, the total maximum milestones payable under this Section 7.2 for each Product
shall not exceed fifty-two million and five hundred thousand USD (USD 52,500,000). 

  

					
		  	30	  	*Confidential Treatment Requested.

 With respect to each milestone, the milestone payments to be made under this Agreement shall be
due and payable only once per Product. 
  

	7.3	 Royalty Payments for Product. 

(a) Royalty Rate. As further consideration for Sutro’s grant of the rights and licenses to Merck hereunder, Merck shall, during
each applicable Royalty Term, pay to Sutro a royalty on worldwide aggregate annual Net Sales of Product for each Calendar Year, on a Product-by-Product and Country-by-Country basis at the percentage rates set forth below (subject to Sections 7.3(c), and 7.5 below), whereby it is understood that a higher royalty rate shall only be payable for that portion of Net
Sales that exceeds the threshold of sales that determines such higher royalty rate: 
  

			
	 Annual Worldwide Net Sales of Product per Calendar Year (in
USD)
	  	 Incremental Royalty
Rate

		
	 For Net Sales of Product from USD 0 up to and including USD $[*]
	  	[*]%
		
	 For that portion of Net Sales of Product that is greater than USD $[*] and less than or
equal to USD [*]
	  	[*]%
		
	 For that portion of Net Sales of Product that is greater than USD $[*]
	  	[*]%

 By way of illustration, assume in a Calendar Year, during the Royalty Term, that (i) aggregate annual Net
Sales of a Product total USD $1,500,000,000 and (ii) no adjustments or deductions to payments under Section 7.5 apply. The total royalties due and payable by Merck to Sutro for such Net Sales would be [*] USD (USD $[*]), calculated as
follows: 
 USD $[*] x [*]% = USD $[*] 

USD $[*] x [*]% = USD $[*] 
 USD
$[*] x [*]% = USD $[*] 
 Total Royalty = USD $[*] 

(b) Net Sales Subject to Royalty Payments. For purposes of determining whether a royalty threshold has been attained, only Net Sales
that are subject to a royalty payment shall be included in the total amount of Net Sales and any Net Sales that are not subject to a royalty payment shall be excluded. In addition, in no event shall the manufacture of a Product give rise to a
royalty obligation (provided that the final sale of Product shall result in the royalty). For clarity, Merck’s obligation to pay royalties to Sutro under this Article 7 is imposed only once with respect to the same unit of Product regardless of
the number of Sutro Patents pertaining thereto. 
 (c) Royalty Payment Calculation. In the event certain Net Sales are subject to the
royalty reductions set forth in Section 7.5, Merck shall calculate the royalty rates as follows: Merck shall allocate the Net Sales during a particular Calendar Quarter to the relevant Net Sales band set forth in Section 7.3 (a), and shall
calculate the proportion of Net Sales within such band that are: (i) not subject to any royalty reduction pursuant to Section 7.5 (to which the full royalty rate in Section 7.3 (a) shall apply); and (ii) subject to a royalty
reduction pursuant to Section 7.5 (to which the applicable percentage of the royalty rate in Section 7.3(a) shall apply). Notwithstanding the terms of Section 7.5, the maximum reductions taken in the aggregate under Section 7.5
shall not reduce the effective royalty rate applicable to Net Sales by more than [*] percent ([*]%) of the rate set 

  

					
		  	31	  	*Confidential Treatment Requested.

 
forth in Section 7.3(a). By way of example, pursuant to Section 7.3(a), the royalty rate without reductions for the first $[*] in Net Sales is [*]%, then, if, pursuant to
Section 7.5 the effective royalty rate after all reductions would be lower than [*]%, then the effective royalty rate shall be set at [*]%. 
  

	7.4	 Additional Royalties. Merck shall pay to Sutro the following additional [*] royalty payments (the
“Additional Royalties”): (i) an additional royalty of [*]% on aggregate annual worldwide Net Sales of Product generated by Merck in the [*] full Calendar Year following the First Major Commercial Sale (as defined below); (ii) an
additional royalty of [*]% on aggregate annual worldwide Net Sales of Product generated by Merck in the [*] full Calendar Year following the First Major Commercial Sale; and (iii) an additional royalty of [*]% on aggregate annual worldwide Net
Sales of Product generated by Merck in the [*] full Calendar Year following the First Major Commercial Sale. [*]. As used herein, the “First Major Commercial Sale” means the First Commercial Sale in any of the Major Market
Countries. 

  

	7.5	 Reductions, Deductions and Reimbursements. 

(a) Know-How Royalty. If, during the Royalty Term, (i) in a Major Market Country, a
Competing Product is being Commercialized, and the Product is (a) [*], or (b) [*], Merck may reduce the royalties that would otherwise be due pursuant to Section 7.3 based on Net Sales in such Major Market Country by [*] percent ([*]%);
provided however, that such royalties shall only be reduced until [*], Merck may reduce the royalties that would otherwise be due pursuant to Section 7.3 based on Net Sales in such country by [*] percent ([*]%); provided however, that such
royalties shall only be reduced until the earlier of [*]. 
 (b) Third Party License Agreements by Merck. Subject to the terms and
conditions of this Agreement, if Merck or any of its Affiliates or Sublicensees enter into a Third Party License Agreement(s) in as far as such Third Party License Agreement is required by the use of the Sutro Technology, Sutro Platform Technology
or CFE Manufacturing Technology with respect to a Product, Merck will be entitled to [*]. 
 (c) Stanford
In-License. Except as foreseen in this Section 7.5(c), Sutro shall be responsible for the timely payment of any amounts due under the Stanford In-License, and
in the event that Sutro shall fail to make any payment when due under the Stanford In-License, Merck shall have the right but not the obligation to make such payment on behalf of Sutro. [*]. 

(d) Third Party Agreements by Sutro. To the extent Merck agrees to use any Third Party Technology
in-licensed by Sutro in connection with the Development or Commercialization of a Product, Merck shall be responsible for paying royalties or other amounts due to the applicable Third Party in consideration
for the use of such Third Party Technology (other than the Stanford In-License and the Scripps In-License) and complying with any obligations on a sublicensee under such
agreements. 
  

	7.6	 Timing of Payment. Royalties payable under Section 7.3(a) shall be payable on actual Net Sales and
shall accrue at the time the invoice for the sale of Product is delivered. Royalty obligations that have accrued during a particular Calendar Quarter shall be paid, on a Calendar Quarter basis, within [*] days after the end of each Calendar Quarter
during which the royalty obligation accrued. Royalties payable under Section 7.4 shall be paid within [*] days after the end of Calendar Year during which the royalty obligation accrued. 

  

					
		  	32	  	*Confidential Treatment Requested.

	7.7	 Mode of Payment and Currency; Invoices. 

(a) Currency and invoices. All payments to Sutro hereunder shall be made by deposit of USD in the requisite amount to such bank account
as Sutro may from time to time designate by written notice to Merck. With respect to sales not denominated in USD, Merck shall convert applicable sales in foreign currency into USD by using the then current and reasonable standard exchange rate
methodology applied to its external reporting. Based on the resulting sales in USD, the then applicable royalties shall be calculated. The Parties may vary the method of payment set forth herein at any time upon mutual written agreement, and any
change shall be consistent with the local Law at the place of payment or remittance. Subject to 7.12, the invoice issued by Sutro will be compliant with the German VAT regulations (reverse-charge-mechanism under the German VAT code). 

(b) Invoices. Sutro shall address its invoices to: 

Merck KGaA 
 Frankfurter Strasse
250 
 64293 Darmstadt 
 Germany

 Attn: Merck Project Leader 

With a copy to: 
 Merck KGaA 

Frankfurter Strasse 250 
 64279
Darmstadt 
 Att: R&D Controlling 
  

	7.8	 Royalty Reports and Records Retention. Within [*] days after the end of each Calendar Quarter during
which Product has been sold, Merck shall deliver to Sutro, together with the applicable royalty payment due for such Calendar Quarter, a written report, on a Product-by-Product and a country-by-country basis, that includes the Net Sales by country, the applicable royalty rate, the royalties payable in USD, the applicable exchange rate for such Calendar
Quarter. Such report shall be deemed Confidential Information of Merck subject to the obligations of Article 9 of this Agreement. For two (2) years after each sale of Product occurs, Merck shall, and shall ensure that its Affiliates and
Sublicensees, keep complete and accurate records of such sale in sufficient detail to confirm the accuracy of the royalty calculations hereunder. 

  

	7.9	 Legal Restrictions. If at any time legal restrictions prevent the remittance by Merck of all or any part
of royalties due on Net Sales in any country, Merck shall notify Sutro promptly in writing and Merck shall have the right and option to make such payment by depositing the amount thereof in local currency to an account in the name of Sutro in a bank
or other depository selected by Sutro in such country. 

  

	7.10	 Late Payments. All payments under this Agreement shall earn interest from the date due until paid at a
per annum rate equal to the lesser of (a) the maximum rate permissible under Law and (b) [*] percent ([*]%) above the monthly Reuters 01 EURIBOR, measured at 2 p.m. Frankfurt/Germany time on the date payment is due. Interest will be
calculated on a [*] basis. An example of the interest rate calculation follows, assuming that the Reuters interest rate is [*]% and a payment of USD $[*] is [*] overdue: 

  

					
		  	33	  	*Confidential Treatment Requested.

 Step 1: applicable annual interest rate on a [*] basis = [*]% + [*]% = [*]% 

Step 2: applicable interest rate for the period of delay = [*] x [*]% = [*]% 

Step 3: total interest due = $[*] x [*]% = $[*] USD 
  

	7.11	 Audits. 

(a) Audits Generally. During the Royalty Term and for one (1) Calendar Year thereafter, and not more than once in each Calendar
Year, Merck shall permit, and shall cause its Affiliates or Sublicensees to permit, an independent certified public accounting firm of nationally recognized standing selected by Sutro, and reasonably acceptable to Merck or such Affiliate or
Sublicensee, to have access to and to review, during normal business hours upon reasonable prior written notice, the applicable records of Merck and its Affiliates or Sublicensees to verify the accuracy of the royalty reports and payments under this
Article 7. Such review may cover the records for sales made in any Calendar Year ending not more than two (2) years prior to the date of such request. The accounting firm shall disclose to Sutro and Merck only whether the royalty reports are
correct or incorrect and the specific details concerning any discrepancies. No other information shall be provided to Sutro. 
 (b)
Audit-Based Reconciliation. If such accounting firm concludes that additional royalties were owed during such period, and Merck agrees with such calculation, Merck shall pay the additional undisputed royalties within thirty (30) days
after the date Sutro delivers to Merck such accounting firm’s written report. If such accounting firm concludes that an overpayment was made, such overpayment shall be fully creditable against amounts payable in subsequent payment periods or,
if no payment is expected within that year at Merck’s request, shall be promptly reimbursed to Merck. If Merck disagrees with such calculation, it may retain its own independent certified public accounting firm of recognized standing and
reasonably acceptable to Sutro, to conduct a review, and if such firm concurs with the other accounting firm, Merck shall make the required payment within thirty (30) days after the date Merck receives the report of its accounting firm. If
Merck’s accounting firm does not concur, Merck and Sutro shall meet and negotiate in good faith a resolution of the discrepancies between the two firms. Sutro shall pay for the cost of any audit, unless Merck has underpaid Sutro by [*] percent
([*]%) or more for the audited period, in which case Merck shall pay for the costs of audit. 
 (c) Audit of Cost of Goods. Sutro
shall keep or cause to be kept accurate records in sufficient detail to enable the Cost of Goods for Product or CFE, as the case may be, supplied to Merck hereunder to be determined. Sutro, upon the written request (including reasonable notice) and
at the expense of Merck, and in any event not more frequently than once in any Calendar Year, shall permit an independent public accountant of national prominence selected by Merck, and approved by Sutro (with approval not unreasonably to be
withheld), to have access during normal business hours to those records as may be reasonably necessary to verify the accuracy of the Cost of Goods of the Product or the CFE, as the case may be, supplied to Merck hereunder for any Calendar Year
ending not more than two (2) years prior to the date of the aforementioned written request. If such accountant reasonably determines that the Cost of Goods have been overstated or understated, then one Party shall make a payment to the other
Party as necessary to correct the amount of the payments made for Product or CFE, as the case may be, supplied hereunder, which payment shall be based on the difference between the actual and the misstated Cost of Goods. In addition, if such
accountant reasonably determines that the Cost of Goods have been overstated for the audited period by more than [*] percent ([*]%), then Sutro shall pay the reasonable costs of such audit. 

  

					
		  	34	  	*Confidential Treatment Requested.

 (d) Audit Confidentiality. Each Party shall treat all information that it receives under
this Section 7.11 in accordance with the confidentiality provisions of Article 9 of this Agreement, and shall cause its accounting firm to enter into an acceptable confidentiality agreement with the other Party obligating such firm to retain
all such financial information in confidence pursuant to such confidentiality agreement, except to the extent necessary for such Party to enforce its rights under this Agreement. The terms of this Section 7.11 shall apply mutatis mutandis
with respect to Merck’s right to audit Sutro’s records related to those Out-of-Pocket Expenses for which Sutro seeks reimbursement hereunder. 

 

	7.12	 Taxes. 

(a) Withholding Tax. Sutro shall be responsible for the payment of any and all Taxes levied on account of the royalties and other
payments paid to Sutro by Merck or its Affiliates or Sublicensees under this Agreement. If Law requires that Taxes be deducted and withheld from royalties or other payments paid under this Agreement, Merck shall (i) deduct those Taxes and
interests and penalties assessed thereon from the payment or from any other payment owed by Merck hereunder; (ii) pay the Taxes to the proper Governmental Body; (iii) send evidence of the obligation together with proof of Tax payment to
Sutro within one hundred (100) days following such payment; (iv) remit the net amount, after deductions or withholding made under this Section 7.12(a); and (v) cooperate with Sutro in any way reasonably requested by Sutro, to
obtain available reductions, credits or refunds of such Taxes; provided, however, that Sutro shall reimburse Merck for Merck’s Out-of-Pocket Expenses incurred in
providing such assistance. Assuming that Sutro is the beneficial owner of the Sutro Technology and the Sutro Platform Technology, the cooperation referred to in subclause (v) of the foregoing sentence shall include Sutro providing Merck with a
written confirmation from the competent tax authority on the German tax application form that Sutro has its residence in the United States which would allow the Parties to benefit from the reduced withholding Tax rate set forth in the Double
Taxation Convention existing between Germany and the United States. 
 (b) Value Added Tax or any other indirect taxes. For VAT
purposes invoiced amounts are net amounts. In case the transactions under this Agreement are subject to VAT (or similar GST or sales Taxes) within the United States, VAT shall be added to the net amounts and be paid by Merck to Sutro. Sutro shall
remit such VAT to the proper Tax authorities and shall cooperate with Merck in any way reasonably requested by Merck, to obtain available reductions, credits or refunds of any VAT amount attributable to the transactions under this Agreement unless
otherwise stated by local law. Merck is entitled to receive a proper invoice where any VAT amount is shown separately, if applicable. 

ARTICLE 8 
 INVENTIONS
AND PATENTS 
  

	8.1	 Disclosure of Inventions. Merck will promptly disclose to Sutro if it invents, conceives, develops or
reduces to practice any Joint Technology, or Sutro Platform Technology. Sutro will promptly disclose to Merck if it invents, conceives, develops or reduces to practice any Joint Technology or Product Technology. 

 

	8.2	 Further Assurances. Sutro shall require all of its employees, and use its best efforts to require its
contractors and agents, and any Affiliates and Third Parties working on its behalf under this Agreement (and their respective employees, contractors and agents), to assign to Sutro, and, as the

  
 35 

 
case may be, to Merck, any rights, title and interest in and to Patent Rights and Know-How, without additional compensation, as is necessary to fully
affect the sole and joint ownership of Sutro Technology, Sutro Platform Technology, Product Technology and Joint Technology. Merck shall require all of its employees, and use its best efforts to require its contractors and agents, and any
Affiliates, Sublicensees and Third Parties working on its behalf under this Agreement (and their respective employees, contractors and agents), to assign to Merck, and, as the case may be, to Sutro, any rights, title and interest in and to Patent
Rights and Know-How, without additional compensation, as is necessary to fully effect the sole and joint ownership of Sutro Technology, Sutro Platform Technology, Product Technology and Joint Technology. 

 

	8.3	 Ownership of Intellectual Property 

 

	 	(a)	 Sutro Rights. The Parties acknowledge and agree that Sutro is and will be the sole and exclusive owner
of all right, title and interest in and to any Sutro Technology; any Sutro Platform Technology and any CFE Manufacturing Technology. 

  

	 	(b)	 Merck Rights. The Parties acknowledge and agree that Merck is and will be the sole and exclusive owner
of all right, title and interest in and to any Merck Technology and Product Technology. 

  

	 	(c)	 Joint Technology. The Parties acknowledge and agree that the Parties will each own an equal, undivided
interest in Joint Technology. Each Party will have the right to Exploit the Joint Technology without a duty of seeking consent of or accounting to the other Party; provided, that except as provided in Section 8.3(e) below, neither Party will
have the right to disclose (except as provided in Article 9) or license (except as may be permitted under Article 4) any Joint Technology without the prior written consent of the other Party. 

 

	 	(d)	 Ownership of Linkers and Payloads. Ownership of Linkers, Payloads, or Linker-Payload combinations first
developed under this Agreement, and all intellectual property rights therein, that belong neither to the Sutro Platform Technology nor to the Product Technology shall be determined according to the law of inventorship of the United States. If one of
Linker or Payload used belongs to the Product Technology and the remaining moiety belongs to the Sutro Platform Technology any resulting Linker-Payload combination developed under this Agreement and all intellectual property rights therein shall be
jointly owned between the Parties and belong to Joint Technology. 

  

	 	(e)	 Rights for Replaced Targets. Each Party shall have the right to use, disclose and license its interest
in any Joint Technology arising from any of the Named Targets or Accepted Targets that were replaced pursuant to Section 2.4. Merck hereby grants to Sutro a worldwide, royalty-free, non-exclusive license
(with right to sublicense) to practice the Product Technology invented, conceived or developed under this Agreement from any of the Named Targets or Accepted Targets that were replaced pursuant to Section 2.4; provided that the foregoing
license will not include rights to any Merck Antibody, Merck Payload or Merck Linker, or any improvements to, or molecules comprising any of the foregoing. 

  
 36 

	8.4	 Patent Prosecution and Maintenance. 

(a) Sutro Patents. Sutro shall have the first right, but not the obligation, to file, prosecute and maintain Sutro Patents in
Sutro’s name. Sutro shall bear all costs and expenses of filing, prosecuting and maintaining Sutro Patents. Sutro shall keep Merck informed of the status of the filing and prosecution of Sutro Patents or related proceedings (e.g. interferences,
oppositions, reexaminations, reissues, revocations or nullifications) in a timely manner, and will take into consideration the advice and recommendations of Merck. At Sutro’s request, Merck will provide Sutro with reasonable assistance, at
Sutro’s sole expense, in prosecuting Sutro Patents to the extent possible, including providing such data in Merck’s Control that is, in Merck’s reasonable judgment, helpful to support the prosecution of a Sutro Patent. 

(b) Election Not to file and Prosecute Sutro Patents. If Sutro elects not to file or to continue to prosecute or maintain a Sutro Patent
in Sutro’s name in any country worldwide, then it shall notify Merck in writing at least ninety (90) days before any deadline applicable to the filing, prosecution or maintenance of such Sutro Patent, as the case may be, or any other date
by which an action must be taken to establish or preserve such Sutro Patent in such country or possession. In such case, Merck shall have the right at Merck’s sole expense to pursue the filing or support the continued prosecution or maintenance
of such Sutro Patent. 
 (c) Patent Term Extension for Sutro Patents. Sutro shall have the first right, but not the obligation, in
Sutro’s name, to obtain patent term extensions wherever available for Sutro Patents. Merck shall provide Sutro, at Sutro’s sole expense, with all relevant information, documentation and assistance in this respect as may reasonably be
requested by Sutro. Any such assistance, supply of information and consultation shall be provided promptly and in a manner that will ensure that all patent term extensions for Sutro Patents may be obtained wherever legally permissible, and to the
maximum extent available. In the event that any election with respect to obtaining patent term extensions is to be made, Merck shall have the right to make such elections, and Sutro shall abide by all such elections. 

(d) Joint Patents. [*], to file, prosecute and maintain Joint Patents in both Parties’ names. The Parties shall [*] costs and
expenses of filing, prosecuting and maintaining Joint Patents. [*] shall keep [*] informed of the status of the filing and prosecution of Joint Patents or related proceedings (e.g. interferences, oppositions, reexaminations, reissues, revocations or
nullifications) in a timely manner, and will take into consideration the advice and recommendations of [*]. At [*] request, [*] will provide [*] with reasonable assistance, in prosecuting Joint Patents to the extent possible, including providing
such data in [*] Control that is, in [*] reasonable judgment, helpful to support the prosecution of a Joint Patent. 
 (e) Election Not to
file and Prosecute Joint Patents. If [*] elects not to file or to continue to prosecute or maintain a Joint Patent in both Parties’ names in any country worldwide, then it shall notify [*] in writing at least [*] days before any deadline
applicable to the filing, prosecution or maintenance of such Joint Patent, as the case may be, or any other date by which an action must be taken to establish or preserve such Joint Patent in such country or possession. In such case, [*] shall have
the right to pursue the filing or support the continued prosecution or maintenance of such Joint Patent at its sole expense. 
 (f) Patent
Term Extension for Joint Patents. [*] shall be responsible, in both Parties’ names, for obtaining patent term extensions wherever available for Joint Patents. [*] shall provide [*], at [*] sole expense, with all relevant information,
documentation and assistance in this respect as may reasonably be requested by [*]. Any such assistance, supply of information and consultation 

  

					
		  	37	  	*Confidential Treatment Requested.

 shall be provided promptly and in a manner that will ensure that all patent term extensions for
Joint Patents may be obtained wherever legally permissible, and to the maximum extent available. In the event that any election with respect to obtaining patent term extensions is to be made, [*] shall have the right to make such elections, and [*]
shall abide by all such elections. 
  

	8.5	 Merck Patents and Product Patents. Merck shall have the sole right, but not the obligation, to file,
prosecute and maintain the Merck Patents and the Product Patents. Merck shall bear all costs and expenses of filing, prosecuting and maintaining Merck Patents and Product Patents, and Sutro shall have no particular rights with respect thereto.

  

	8.6	 Cooperation. 

(a) The Parties will at all times fully cooperate with each other in order to reasonably implement the provisions of this Article 8. Such
cooperation may include each Party’s execution of necessary legal documents, coordinating filing or prosecution of applications to avoid potential issues during prosecution (including novelty, enablement, estoppel and double patenting and
execution of amendments), and the assistance of each Party’s relevant personnel. The Parties will use reasonable efforts to avoid creating potential issues in prosecution of the patent applications covering or claiming Sutro Patents, Sutro
Platform Patents, Merck Patents, or Product Patents via the JIPC. 
 (b) Notwithstanding anything to the contrary in this Agreement, it is
agreed between the parties that Merck shall have the right to make any filing in a country with respect to a Product Patent beyond the date that is four weeks prior to IND filing or application for Regulatory Approval. 

 

	8.7	 Common Ownership Under Joint Research Agreements. Notwithstanding anything to the contrary in this
Article 8, neither Party will have the right to make an election under 35 U.S.C. 102(c) when exercising its rights under this Article 8 without the prior written consent of the other Party. With respect to any such permitted election, the Parties
will coordinate their activities with respect to any submissions, filings or other activities in support thereof. The Parties acknowledge and agree that this Agreement is a “joint research agreement” as defined in 35 U.S.C. 100(h).

  

	8.8	 Enforcement of Patents. 

(a) Notice. In the event either Party believes that an infringement, unauthorized use, misappropriation or ownership claim or threatened
infringement or other such activity by a Third Party with respect to any CFE Manufacturing Technology, Sutro Technology, Sutro Platform Technology, Merck Technology, Product Technology or Joint Technology occurred or is about to occur (the
“Infringement”), or if a Third Party claims that any Sutro Patent, Sutro Platform Patent, Merck Patent, Product Patent or Joint Patent is invalid or unenforceable, all of the above directly related to the subject matter of this Agreement,
the Party possessing such Knowledge or belief shall notify the other Party and provide it with details of such infringement or claim that are known to such Party. 

(b) Right to Bring an Action. 

(i) Sutro Patents, Sutro Platform Patents. Sutro shall have the first right, but not the obligation, to attempt to
resolve any Infringement or claim, including by filing an Infringement suit, defending against such claim or taking other similar action (each, an “Action”), with respect to a Sutro Patent or Sutro Platform Patents. If a proposed
compromise or settlement of an Infringement or claim would adversely affect Merck’s rights under this Agreement, then Sutro shall 

  

					
		  	38	  	*Confidential Treatment Requested.

 
compromise or settle any such Infringement or claim only after obtaining Merck’s written consent to settle any such Infringement or claim, which consent shall not unreasonably be withheld.
In case Sutro decides not to attempt to resolve any such Infringement or claim that relates to a Competing Product that is directed against a Named Target or Accepted Target, including by filing an Infringement suit, defending against such claim or
taking other similar action, Merck shall have the right, but not the obligation to take any action Merck deems appropriate to abandon such Infringement or claim, including by filing an Infringement suit, defending against such claim or taking other
similar action in Sutro’s name and at Merck’s sole expense. In such case, at Merck’s request, Sutro shall immediately provide Merck with all relevant documentation (as may be requested by Merck) evidencing that Merck is validly
empowered by Sutro to take such an Action. Sutro is obligated to join Merck in such Action if Merck determines that it is necessary to demonstrate “standing to sue”. If Merck does not intend to prosecute or defend an Action, Merck shall
promptly inform Sutro. 
 (ii) Joint Patents. [*] shall have the first right, but not the obligation, to attempt to
resolve any Action with respect to a Joint Patent. [*] shall compromise or settle any such Infringement or claim only after obtaining [*] written consent to settle any such Infringement or claim, which consent shall not unreasonably be withheld. In
case [*] decides not to attempt to resolve any such Infringement or claim, including by filing an Infringement suit, defending against such claim or taking other similar action, [*] shall have the right, but not the obligation to take any action [*]
deems appropriate to abandon such Infringement or claim, including by filing an Infringement suit, defending against such claim or taking other similar action in [*] name and at [*] sole expense. In such case, at [*] request, [*] shall immediately
provide [*] with all relevant documentation (as may be requested by [*]) evidencing that [*] is validly empowered by [*] to take such an Action. [*] is obligated to join [*] in such Action if [*] determines that it is necessary to demonstrate
“standing to sue”. If [*] does not intend to prosecute or defend an Action, [*] shall promptly inform [*]. 
 (iii)
Merck Patents, Product Patents. Merck shall have the sole right, at its sole expense, but not the obligation, to determine the appropriate course of action to enforce Merck Patents or Product Patents, or otherwise to abate the Infringement
thereof, to take (or refrain from taking) appropriate action to enforce the Merck Patents and Product Patents, to control any litigation or other Action and to enter into, or permit, the settlement of any such litigation or other Action with respect
to the Merck Patents and Product Patents. Sutro will fully cooperate with Merck, at Merck’s expense, in any such Action to enforce the Merck Patents and Product Patents, including being joined as a party to such Action if necessary. 

(c) Costs of an Action. Subject to the respective indemnity obligations of the Parties set forth in Article 11, the Party taking an
Action under Section 8.8 (b) shall pay all costs associated with such Action, other than (subject to Section 8.8(e)) the expenses of the other Party if the other Party elects to join such Action (as provided in the last sentence of this
paragraph). Each Party shall have the right to join an Action relating to a Sutro Patent, Sutro Platform Patent or a Joint Patent, at its own expense. 

(d) Settlement. Neither Party shall settle or otherwise compromise any Action by admitting that any Sutro Patent (as such relates to a
Product) or a Sutro Platform Patent or Joint Patent is invalid or unenforceable without the other Party’s prior written consent, and, in the case of Sutro, Sutro may not settle or otherwise compromise an Action in a way that adversely affects
or would be reasonably expected to adversely affect Merck’s rights or benefits hereunder, without Merck’s prior written consent. 

  

					
		  	39	  	*Confidential Treatment Requested.

 (e) Reasonable Assistance. The Party not enforcing or defending Sutro Patents, Product
Patents, Sutro Platform Patents or Joint Patents, as applicable, shall provide reasonable assistance to the other Party, including providing access to relevant documents and other evidence and making its employees available, subject to the other
Party’s reimbursement of any reasonable Out-of-Pocket Expenses incurred on an on-going basis by the non-enforcing or non-defending Party in providing such assistance. 

(f) Distribution of Amounts Recovered. Any amounts recovered by the Party taking an Action pursuant to Section 8.8(b), whether by
settlement or judgment, shall be allocated in the following order: (i) to reimburse the Party taking such Action for any costs incurred; (ii) to reimburse the Party not taking such Action for its costs incurred in such Action, if it joins
such Action; and (iii) the remaining amount of such recovery shall be allocated as follows: (A) if Sutro was the Party taking the Action, then [*] of the remainder will be payable to Merck and Sutro will retain [*], and (B) if Merck
was the Party taking the Action, then the remainder will be allocated to Merck and deemed to be Net Sales for the Calendar Quarter in which the amount is paid and Merck shall pay to Sutro a royalty on such remaining amount based on the royalty rates
set forth in Section 7.3(a). 
  

	8.9	 Third Party Actions Claiming Infringement. 

(a) Notice. If a Party becomes aware of any Third Party Action, such Party shall promptly notify the other Party of all details
regarding such claim or action that is reasonably available to such Party. 
 (b) Right to Defend. Merck shall have the first right,
at its sole expense, but not the obligation, to defend a Third Party Action described in Section 8.9(a) and to compromise or settle such Third Party Action. If Merck declines or fails to assert its intention to defend such Third Party Action
within sixty (60) days after sending (in the event that Merck is the notifying Party) or receipt (in the event that Sutro is the notifying Party) of notice under Section 8.9(a), then Sutro shall have the right to defend such Third Party
Action. The Party defending such Third Party Action shall have the sole and exclusive right to select counsel for such Third Party Action. 

(c) Consultation. The Party defending a Third Party Action pursuant to Section 8.9(b) shall be the “Controlling Party.”
The Controlling Party shall consult with the non-Controlling Party on all material aspects of the defense. The non-Controlling Party shall have a reasonable opportunity
for meaningful participation in decision-making and formulation of defense strategy. The Parties shall reasonably cooperate with each other in all such actions or proceedings. The non-Controlling Party will be
entitled to be represented by independent counsel of its own choice at its own expense. 
 (d) Appeal. In the event that a judgment in
a Third Party Action is entered against the Controlling Party and an appeal is available, the Controlling Party shall have the first right, but not the obligation, to file such appeal. In the event the Controlling Party does not desire to file such
an appeal, it will promptly, in a reasonable time period (i.e., with sufficient time for the non-Controlling Party to take whatever action may be necessary) prior to the date on which such right to appeal will lapse or otherwise diminish, permit the
non-Controlling Party to pursue such appeal at such non-Controlling Party’s own cost and expense. If Law requires the other Party’s involvement in an appeal,
the other Party shall be a nominal Party of the appeal and shall provide reasonable cooperation to such Party at such Party’s expense. 

(e) Costs of an Action. The Controlling Party shall pay all costs associated with such Third Party Action other than the expenses of the
other Party if the other Party elects to join such Third Party Action (as provided in the last sentence of this paragraph). Each Party shall have the right to join a Third Party Action defended by the other Party, at its own expense. 

  

					
		  	40	  	*Confidential Treatment Requested.

 (f) No Settlement Without Consent. Neither Party shall settle or otherwise compromise any
Third Party Action by admitting that any Sutro Parent, Sutro Platform Patents, Merck Patent, Product Patent or Joint Patent is invalid or unenforceable without the other Party’s prior written consent, and, in the case of Sutro, Sutro may not
settle or otherwise compromise a Third Party Action in a way that adversely affects or would be reasonably expected to adversely affect Merck’s rights and benefits hereunder, without Merck’s prior written consent. 

ARTICLE 9 

CONFIDENTIALITY 
  

	9.1	 Confidentiality Obligations. Each Party agrees that, for the Term and for [*] ([*]) years thereafter,
such Party shall, and shall ensure that its Representatives hold in confidence all Confidential Information disclosed to it by the other Party pursuant to this Agreement, unless such information: 

(i) is or becomes generally available to the public other than as a result of disclosure by the recipient; 

(ii) is already known by or in the possession of the recipient at the time of disclosure by the disclosing Party; 

(iii) is independently developed by recipient without use of or reference to the disclosing Party’s Confidential
Information; or 
 (iv) is obtained by recipient from a Third Party that has not breached any obligations of confidentiality.

 The recipient shall not disclose any of the Confidential Information, except to Representatives of the recipient who need to know the
Confidential Information for the purpose of performing the recipient’s obligations, or exercising its rights, under this Agreement and who are bound by obligations of non-use and non-disclosure substantially similar to those set forth herein. The recipient shall be responsible for any disclosure or use of the Confidential Information by such Representatives. The recipient shall protect
Confidential Information using not less than the same care with which it treats its own confidential information, but at all times shall use at least reasonable care. Each Party shall: (a) implement and maintain appropriate security measures to
prevent unauthorized access to, or disclosure of, the other Party’s Confidential Information; (b) promptly notify the other Party of any unauthorized access or disclosure of such other Party’s Confidential Information; and
(c) cooperate with such other Party in the investigation and remediation of any such unauthorized access or disclosure. 
  

	9.2	 Use. Each Party shall not use the Confidential Information of the other Party for any purpose other than
for the purpose of performing its obligations, or exercising its rights, under this Agreement, including for purposes of: 

(i) filing or prosecuting patent applications, subject to the terms of Section 8.2 and subject to the approval of the
JIPC; 

  

					
		  	41	  	*Confidential Treatment Requested.

 (ii) prosecuting or defending litigation; 

(iii) conducting pre-clinical studies or clinical trials pursuant to this Agreement;

 (iv) seeking or maintaining Regulatory Approval of the Product; 

(v) complying with Law, including securities Law and the rules of any securities exchange or market on which a Party’s
securities are listed or traded; or 
 (vi) Merck may, in furtherance of its rights under this Agreement, disclose
Confidential Information of Sutro to any Third Party, provided that such Third Party is bound by obligations of confidentiality at least as stringent as the ones herein. 

In making any disclosures set forth in clauses (i) through (vi) above, the disclosing Party shall, where reasonably practicable, give such
advance notice to the other Party of such disclosure requirement as is reasonable under the circumstances and will use its reasonable efforts to cooperate with the other Party in order to secure confidential treatment of such Confidential
Information required to be disclosed. In addition, in connection with any permitted filing by either Party of this Agreement with any Governmental Body the filing Party shall endeavor to obtain confidential treatment of economic, trade secret
information and such other information as may be requested by the other Party, and shall provide the other Party with the proposed confidential treatment request with reasonable time for such other Party to provide comments, and shall include in
such confidential treatment request all reasonable comments of the other Party. 
  

	9.3	 Required Disclosure. The recipient may disclose the Confidential Information to the extent required by
Law or court order; provided, however, that the recipient promptly provides to the disclosing party prior written notice of such disclosure and provides reasonable assistance in obtaining an order or other remedy protecting the Confidential
Information from public disclosure. 

  

	9.4	 Publications. Sutro shall not publish any information relating to the Product without the prior written
consent of Merck (which consent may be withheld or given in Merck’s sole discretion), unless such information has already been publicly disclosed either prior to the Effective Date or after the Effective Date through no fault of Sutro or
otherwise not in violation of this Agreement. Merck shall have the right to make such publications as it chooses, in its sole discretion, without the approval of Sutro. Sutro shall submit to Merck for Merck’s written approval (which approval be
granted or denied in Merck’s sole discretion) any publication or presentation (including in any seminars, symposia or otherwise) of information related directly or indirectly to the Product for review and approval at least ninety (90) days
prior to submission for the proposed date of publication or presentation. 

  

	9.5	 Press Releases and Disclosure. 

(a) Initial Press Release. The proposed public announcements by Sutro and by Merck of the execution of this Agreement is set forth on
Schedule 9.5(a) hereto. 
 (b) Subsequent Public Disclosures by Sutro. Sutro may not make any subsequent press release or public
announcements regarding this Agreement or any matter covered by this Agreement, including the Development or Commercialization of Products, without the prior written consent of Merck. In the event that Sutro believes it is required to issue a press
release or make another public announcement to comply with Law as a publicly-traded company and Merck 

  
 42 

 
does not believe such public announcement is so required, Sutro may only issue such press release if (i) it obtains an opinion of legal counsel, from a reputable law firm approved by Merck,
that it is required to make such disclosure to comply with Law and (ii) after receiving such opinion, provides the text of such planned disclosure to Merck no less than seven (7) days prior to disclosure, and has incorporated all
reasonable comments of Merck regarding such disclosure. Notwithstanding anything to the contrary, either Party may disclose this Agreement to existing or potential acquirers or merger candidates; existing or potential collaborators or sublicensees
(to the extent contemplated hereunder); attorneys; consultants; investment bankers; existing or potential investors, venture capital firms or other financial institutions or investors for purposes of obtaining financing; each of whom prior to
disclosure must be bound by obligations of non-use and non-disclosure substantially similar to those set forth herein and further provided, that
such disclosures will be limited to the terms of this Agreement and presented in a manner that does not divulge or otherwise make available any of the following if not already publicly known: (a) the identity of any Target, (b) the
identity of any Product, (c) details of any Project Plan, or (d) details of any Results. 
 (c) Public Disclosures by Merck.
Merck shall have the right to make such press releases as it chooses, in its sole discretion, without the approval of Sutro regarding Merck’s activities under this Agreement solely with respect to a Product and only following Merck’s
payment of the first milestone as set forth in Section 7.2 with respect to such Product. 
 ARTICLE 10 

REPRESENTATIONS, WARRANTIES AND COVENANTS 
  

	10.1	 Representations and Warranties. Each Party represents and warrants to the other Party that, as of the
Effective Date: 

 (a) such Party is duly organized and validly existing under the Laws of the jurisdiction
of its incorporation or organization; 
 (b) such Party has taken all action necessary to authorize the execution and
delivery of this Agreement and the performance of its obligations under this Agreement; 
 (c) this Agreement is a legal and
valid obligation of such Party, binding upon such Party and enforceable against such Party in accordance with the terms of this Agreement, except as enforcement may be limited by applicable bankruptcy, fraudulent conveyance, insolvency,
reorganization, moratorium and other laws relating to or affecting creditors’ rights generally and by general equitable principles. The execution, delivery and performance of this Agreement by such Party does not conflict with, breach or create
in any Third Party the right to accelerate, terminate or modify any agreement or instrument to which such Party is a Party or by which such Party is bound, and does not violate any Law of any Governmental Body having authority over such Party; and

 (d) such Party has all right, power and authority to enter into this Agreement, to perform its obligations under this
Agreement. 

  
 43 

	10.2	 Additional Representations and Warranties of Sutro. Sutro represents and warrants to Merck that, as of
the Effective Date: 

 (a) no consent by any Third Party or Governmental Body is required with respect to
the execution and delivery of this Agreement by Sutro or the consummation by Sutro of the transactions contemplated hereby; 

(b) to Sutro’s Knowledge, no claims have been asserted or threatened by any Person, nor are there any valid grounds for
any claim of any such kind (a) challenging the validity, effectiveness, or ownership of Sutro Technology, Sutro Platform Technology, Stanford Technology or CFE Manufacturing Technology, and/or (b) to the effect that the use, reproduction,
modification, manufacturing, distribution, licensing, sublicensing, sale or any other exercise of rights in any of Sutro Technology, Sutro Platform Technology, Stanford Technology or CFE Manufacturing Technology infringes or will infringe on any
intellectual property right of any Person. 
 (c) to the Knowledge of Sutro, there is no unauthorized use, infringement or
misappropriation of any of Sutro Technology, Sutro Platform Technology, CFE Technology or Stanford Technology by any employee or former employee of Sutro, or any other Third Party; 

(d) to the Knowledge of Sutro, the Sutro Patents, the Sutro Platform Patents, CFE Manufacturing Patents or Stanford Patents are
subsisting and are not the subject of any litigation procedure, discovery process, interference, reissue, reexamination, opposition, appeal proceedings or any other legal dispute; 

(e) the Sutro Patents, the Sutro Platform Patents, the CFE Manufacturing Patents and the Stanford Patents constitute all Patent
Rights owned or Controlled by Sutro as of the Effective Date that are directly related to, or are necessary or useful for, the research, Development, manufacture, use or Commercialization of the Product; 

(f) the Sutro Know-How, the Sutro Platform
Know-How, the CFE Know-How and the Stanford Know-How constitutes all Know-How owned or
Controlled by Sutro as of the Effective Date that is directly related to, or are necessary or useful for, the research, Development, manufacture, use or Commercialization of the Product; 

(g) Sutro has not developed, subcontracted or licensed to a Third Party the right to develop a Competing Product with respect
to the Named Targets; 
 (h) to the Knowledge of Sutro, no Third Party has filed, pursued or maintained or threatened in
writing to file, pursue or maintain any claim, lawsuit, charge, complaint or other action alleging that any Sutro Patent, Sutro Platform Patent, CFE Patent or Stanford Patent is invalid or unenforceable; 

(i) it has the full right to provide the Sutro Materials to Merck and to transfer to Merck all right, title and interest in and
to the Sutro Material to be provided to Merck pursuant to this Agreement, and to Sutro’s Knowledge, neither Merck’s use of the Sutro Material as contemplated by this Agreement, nor such transfer, will infringe the intellectual property
rights of any Third Party; 
 (j) all Representatives of Sutro who have performed any activities on its behalf in connection
with research regarding ADCs developed under this Agreement or Product have assigned to Sutro the whole of their rights in any intellectual property made, discovered or developed by them as a result of such research, and no Third Party has any
rights to any such intellectual property; 

  
 44 

 (k) Sutro has all right, title and interest in and to the Sutro Technology, the
Sutro Platform Technology and Sutro’s interest in the CFE Manufacturing Technology; and Sutro Technology, the Sutro Platform Technology and Sutro’s interest in the CFE Manufacturing Technology is free and clear of any liens, charges,
encumbrances or rights of others to possession or use; 
 (l) Sutro has the right, power and authority to grant to Merck the
rights granted to Merck hereunder with respect to the Stanford In-License. In particular, the grant of such sublicense requires no consent, waiver or other action by any party to the Stanford In-License and the rights and obligations of Merck set forth in this Agreement do not contravene nor are they inconsistent with or in conflict with the terms of the Stanford
In-License; 
 (m) The Stanford In-License
constitutes the only agreement with a Third Party pursuant to which Sutro has in-licensed, or otherwise obtained rights, with respect to the ADCs and Product. Sutro has provided to Merck an accurate, true and
complete copy of the Stanford In-License, as amended to date and the Stanford In-License is in full force and effect and Sutro is not in breach or default in the
performance of its obligations under the Stanford In-License. Sutro has not received any notice from Stanford of any breach, default or non-compliance of Sutro under the
terms of any of the Stanford In-License. There have been no amendments or other modification to the Stanford In-License, except as have been disclosed to Merck in
writing; 
 (n) to the Knowledge of Sutro, all tangible information and data provided by or on behalf of Sutro to Merck on or
before the Effective Date in contemplation of this Agreement was and is true, accurate and complete in all material respects, and Sutro has not failed to disclose, or cause to be disclosed, any information or data that would cause the information
and data that has been disclosed to be misleading in any material respect; 
 (o) Sutro (and its Affiliates) has not employed
or otherwise used in any capacity, and will not employ or otherwise use in any capacity, the services of any Person debarred under United States law, including under Section 21 USC 335a or any foreign equivalent thereof, with respect to the
ADCs or Product; 
  

	10.3	 Sutro Covenants. Sutro covenants to Merck that: 

(a) Sutro shall fulfill all of its obligations, including but not limited to its payment obligations, under the Stanford In-License or any Third Party License Agreement; and 
 (b) Sutro shall not amend or waive,
or take any action or omit to taking any action that would alter, any of Sutro’s rights under the Stanford In-License or any Third Party License Agreement in any manner that adversely affects, or would
reasonably be expected to adversely affect, Merck’s rights and benefits under this Agreement. Sutro shall promptly notify Merck of any default under, termination or amendment of, the Stanford In-License,
the Scripps In-License or relevant Third Party License Agreement. 

  
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 ARTICLE 11 

INDEMNIFICATION AND INSURANCE 
  

	11.1	 Indemnification by Merck. Merck shall indemnify, defend and hold Sutro and its Affiliates and each of
their respective employees, officers, directors and agents (the “Sutro Indemnitees”) harmless from and against any and all liability, damage, loss, cost or expense (including reasonable attorneys’ fees) to the extent arising out of
Third Party claims or suits related to: (a) Merck’s negligence or willful misconduct; (b) Merck’s performance of its obligations or exercising its rights under this Agreement; or (c) breach by Merck of its representations or
warranties set forth in Article 10; provided, however, that Merck’s obligations pursuant to this Section 11.1 shall not apply (i) to the extent such claims or suits result from the negligence or willful misconduct of any of the Sutro
Indemnitees, or (ii) with respect to claims or suits arising out of breach by Sutro of its representations, warranties or covenants set forth in Article 10. 

 

	11.2	 Indemnification by Sutro. Sutro shall indemnify, defend and hold Merck and its Affiliates and each of
their respective agents, employees, officers and directors (“Merck Indemnitees”) harmless from and against any and all liability, damage, loss, cost or expense (including reasonable attorney’s fees) to the extent arising out of Third
Party claims or suits (including Third Party Actions) related to: (a) Sutro’s negligence or willful misconduct; (b) Sutro’s performance of its obligations under this Agreement; or (c) breach by Sutro of its representations,
warranties or covenants set forth in Article 10; provided, however, that Sutro’s obligations pursuant to this Section 11.2 shall not apply (i) to the extent that such claims or suits result from the negligence or willful misconduct of
any of Merck Indemnitees or (ii) with respect to claims or suits arising out of a breach by Merck of its representations or warranties set forth in Article 10. 

 

	11.3	 No Consequential Damages. EXCEPT WITH RESPECT TO EACH PARTY’S INDEMNIFICATION OBLIGATIONS UNDER
SECTION 11.1 OR SECTION 11.2, AS APPLICABLE, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATES BE LIABLE TO THE OTHER PARTY OR ANY OF ITS AFFILIATES FOR SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING LOSS OF
PROFITS, WHETHER IN CONTRACT, WARRANTY, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREIN OR ANY BREACH HEREOF. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS AGREEMENT
SHALL LIMIT EITHER PARTY FROM SEEKING OR OBTAINING ANY REMEDY AVAILABLE UNDER LAW FOR ANY BREACH OF BY THE OTHER PARTY OF ITS CONFIDENTIALITY AND NON-USE OBLIGATIONS UNDER ARTICLE 9 OR ANY BREACH BY SUTRO OF
ITS EXCLUSIVITY OBLIGATIONS UNDER SECTION 2.10. 

  

	11.4	 Notification of Claims; Conditions to Indemnification Obligations. As a condition to a Party’s
right to receive indemnification under this Article 11, it shall: (a) promptly notify the other Party as soon as it becomes aware of a claim or suit for which indemnification may be sought pursuant hereto; (b) cooperate, and cause the
individual indemnitees to cooperate, with the indemnifying Party in the defense, settlement or compromise of such claim or suit; and (c) permit the indemnifying Party to control the defense, settlement or compromise of such claim or suit,
including the right to select defense counsel. In no event, however, may the indemnifying Party compromise or settle any claim or suit in a manner which admits fault or negligence on the part of the indemnified Party or any indemnitee without the
prior written consent of the indemnified Party. Each Party shall reasonably cooperate with the other Party and its counsel in the course of the defense of any such suit, claim or demand, such cooperation to include without limitation using
reasonable efforts to provide or make available documents, information and witnesses. The indemnifying Party shall have no liability under this Article 11 with respect to claims or suits settled or compromised without its prior written consent.

  
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	11.5	 Insurance. During the Term, each Party shall obtain and maintain, at its sole cost and expense,
insurance (including any self-insured arrangements) in types and amounts, that are reasonable and customary in the pharmaceutical and biotechnology industry for companies engaged in comparable activities. It is understood and agreed that this
insurance shall not be construed to limit either Party’s liability with respect to its indemnification obligations hereunder. Each Party will, except to the extent self insured, provide to the other Party upon request a certificate evidencing
the insurance such Party is required to obtain and keep in force under this Section 11.5. 

 ARTICLE 12 

TERM AND TERMINATION 
  

	12.1	 Term and Expiration. The term of this Agreement (the “Term”) shall commence on the Effective
Date and, unless earlier terminated as provided in this Article 12, shall continue in full force and effect, on a country-by-country and
Product-by-Product basis until the date on which the Royalty Term in such country with respect to such Product expires, at which time this Agreement shall expire in its
entirety with respect to such Product in such country and the terms of Section 12.4(c)(i) shall apply. 

  

	12.2	 Termination of the Agreement by Merck. 

(a) Termination for Convenience. At any time during the Term, Merck may, at its convenience, terminate this Agreement in its entirety,
or on a Product-by-Product or country-by-country basis, immediately upon ninety (90) days prior written notice to Sutro and
[*]. 
 (b) Termination for non-Availability of Additional Targets. If [*] Additional Targets
are not Available Merck may terminate this Agreement with immediate effect. 
  

	12.3	 Termination upon Material Breach. 

(a) Material Breach. If a Party materially breaches any of its material obligations under this Agreement, the Party not in default may
give to the breaching Party a written notice specifying the nature of the default, requiring it to cure such breach, and stating its intention to terminate this Agreement if such breach is not cured within [*] ([*]) days. If such breach is not cured
within [*] ([*]) days after the receipt of such notice, the Party not in default shall be entitled to terminate this Agreement immediately by written notice to the other Party. For clarity, such material obligations may apply to the performance of
either: (i) this Agreement in its entirety, in which case this provision shall apply to the entire Agreement; or (ii) a specific Product or Product(s), in which case this provision shall apply only to such affected Product or Product(s).

 (b) Material Breach Dispute. Any dispute regarding an alleged material breach of this Agreement shall be resolved in accordance
with Article 13 hereof before the affected Party pursues other remedies (including termination). In the event that the Party that has allegedly materially breached this Agreement disputes such breach, and the resulting termination of this Agreement
in good faith, then any consequences of termination in Article 12.4 shall only apply from and after such time as such termination has been upheld in a final judgment from which no appeal can be taken, or that is unappealed within the time allowed
for appeal or such time as the Party allegedly in material breach is no longer disputing such termination. 

  

					
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 (c) In the event that a Party has the right to terminate this Agreement for uncured material
breach by the other Party, then such first Party may elect not to terminate this Agreement and shall have the right to pursue the other rights and remedies it may have hereunder or at Law or in equity with respect to any breach of this Agreement and
pursue its right to obtain performance of any obligation. 
  

	12.4	 Effects of Termination. 

(a) Survival. 

(i) Notwithstanding the expiration or termination of this Agreement, the following provisions shall survive; Articles 1, 9, 11
and 14; and Sections 7.8, 7.11, 7.12, 8.3, and 12.4. In addition upon expiration of this Agreement, the following provisions shall also survive: 5.6, 6.4, 6.5, 6.6. 

(ii) Expiration or termination of this Agreement shall not relieve the Parties of any liability that accrued hereunder prior to
the effective date of such termination. In addition, except for the termination events addressed in Section 12.4 (a) (iv) termination of this Agreement shall not preclude either Party from pursuing all rights and remedies it may have
hereunder or at Law or in equity with respect to any breach of this Agreement nor prejudice either Party’s right to obtain performance of any obligation. 

(iii) If either Party terminates the Agreement under Section 12.3, such Party shall be entitled, in its sole discretion,
to seek and recover all recoveries available to it under this Agreement and applicable Laws as a result of the breaches giving rise to the termination by the other Party pursuant to Section 12.3. 

(iv) If Sutro Knowingly breached the exclusivity set forth in Section 2.10 and as a result of such breach a Competing
Product directed against the same Named Target or Accepted Target is to be marketed in any country of the Territory, then Merck may elect not to terminate this Agreement and, instead, during the period commencing at the end of a cure period of [*]
([*]) days following a notice from Merck under Section 12.3(a) and continuing until the end of the last Royalty Term in such country of the Territory in which such Competing Product is marketed, reduce the royalty payments under
Section 7.3 for the applicable Product by [*] percent ([*]%), until such Competing Product is withdrawn from the market in such country. For clarity, the royalty floor set forth in Section 7.3(c) shall in such case not apply. If Merck
elects the reduction of payments set forth in this Section 12.4(a)(iv) then this shall be Merck’s sole and exclusive remedy for such breach of exclusivity. 

(b) Exclusivity. Upon any termination of this Agreement with respect to a Product, or the Agreement in its entirety, the exclusivity
under Section 2.10 shall no longer apply with respect to the underlying Named Target or Accepted Target. 
 (c) Licenses. 

(i) As of the effective date of expiration of the Royalty Term with respect to a given Product and country, the license from
Sutro to Merck under Section 4.1 and the license from Sutro to Merck under Section 4.2, shall convert to a fully paid, royalty free, irrevocable, perpetual, non-

  

					
		  	48	  	*Confidential Treatment Requested.

 
exclusive, and sublicensable license under the Sutro Technology, Sutro Platform Technology, the CFE Manufacturing Technology and Sutro’s interest in Joint Technology to research, develop,
manufacture, have manufactured, use and Commercialize such Product in the Field in such country. 
 (ii) Upon termination of
this Agreement by Merck pursuant to Section 12.2 or Section 12.3(a) or by Sutro pursuant to Section 12.3(a) all licenses granted to Merck under Section 4.1 shall terminate for such Products and countries affected from the
termination. Immediately following Merck’s notification of termination to Sutro pursuant to Sections 12.2 or 12.3(a), the diligence obligations in Section 5.9 shall no longer apply and Merck shall have the right to wind-down all then on-going Development, manufacturing and/or Commercialization activities. 
  

	12.5	 Bankruptcy or Insolvency. 

(a) Bankruptcy Code. All rights and licenses granted under or pursuant to this Agreement by Sutro are, and shall otherwise be deemed to
be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, if applicable, licenses of right to “intellectual property” as defined under Section 101 of the U.S. Bankruptcy Code. 

(b) Continuing Rights. The Parties agree that Merck, as licensee of rights under this Agreement, shall retain and may fully exercise all
of its rights and elections under the U.S. Bankruptcy Code. The Parties further agree that, in the event of a Sutro Bankruptcy Event, Merck shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual
property and all embodiments of such intellectual property, which, if not already in Merck’s possession, shall be promptly delivered to it (a) following any such commencement of a bankruptcy proceeding upon Merck’s written request
therefor, unless Sutro elects to continue to perform all of its obligations under this Agreement or (b) if not delivered under clause (a), following the rejection of this Agreement by Sutro upon written request therefor by Merck. 

(c) Transfer of CFE Manufacturing Technology. In the event of a Sutro Bankruptcy Event, upon Merck’s written request, Sutro shall
transfer the Sutro CFE Manufacturing Technology Controlled by Sutro as of the effective date of the Sutro Bankruptcy Event. 
  

	12.6	 Other Remedies. Termination of this Agreement for any reason shall not release either Party from any
liability or obligation that already has accrued prior to such termination. Termination of this Agreement for any reason shall not constitute a waiver or release of, or otherwise be deemed to prejudice or adversely affect or limit, any rights or
remedies that otherwise may be available at Law or in equity. 

 ARTICLE 13 

DISPUTE RESOLUTION 
  

	13.1	 Disputes. The Parties recognize that disputes as to certain matters may from time to time arise during
the Term which relate to either Party’s rights and/or obligations hereunder. It is the objective of the Parties to establish under this Article 13 procedures to facilitate the resolution of disputes arising under this Agreement in an expedient
manner by mutual cooperation and without resort to litigation. In the event that the Parties are unable to resolve such dispute through diligent review and deliberation within thirty (30) days from the day that one Party had designated the
issue as a dispute in written notice to the other Party, then either Party shall have the right to escalate such matter to the Executive Officers as set forth in Section 13.2. 

  
 49 

	13.2	 Escalation to Executive Officers. Either Party may, by written notice to the other Party, request that a
dispute that remains unresolved for a period of thirty (30) days as set forth in Section 13.1 arising between the Parties in connection with this Agreement, or a dispute relating to material breach, be resolved by the Executive Officers,
within fifteen (15) days after referral of such dispute to them. If the Executive Officers cannot resolve such dispute within fifteen (15) days after referral of such dispute to them, then, at any time after such fifteen (15) day
period, either Party may proceed to enforce any and all of its rights with respect to such dispute. 

  

	13.3	 Injunctive Relief. No provision herein shall be construed as precluding a Party from bringing an action
for injunctive relief or other equitable relief prior to the initiation or completion of the above procedure. 

 ARTICLE
14 
 MISCELLANEOUS PROVISIONS 
  

	14.1	 Relationship of the Parties. Nothing in this Agreement is intended or shall be deemed, for financial,
tax, legal or other purposes, to constitute a partnership, agency, joint venture or employer-employee relationship between the Parties. 

  

	14.2	 Assignment. 

(a) Assignment Generally. Except as expressly provided herein, neither this Agreement nor any interest hereunder shall be assignable,
nor any other obligation delegable, by a Party without the prior written consent of the other Party (not to be unreasonably withheld or delayed). [*]. 

(b) [*]. 
 (c)
Continuing Obligations. No assignment under this Section 14.2 shall relieve the assigning Party of any of its responsibilities or obligations hereunder and, as a condition of such assignment, the assignee shall agree in writing to be
bound by all obligations of the assigning Party hereunder. This Agreement shall be binding upon the successors and permitted assigns of the Parties. 

(d) Void Assignments. Any assignment not in accordance with this Section 14.2 shall be void. 

 

	14.3	 Performance and Exercise by Affiliates. Merck shall have the right to have any of its obligations
hereunder performed, or its rights hereunder exercised by any of its Affiliates and the performance of such obligations by any such Affiliate shalt be deemed to be performance by Merck; provided, however, that Merck shall be responsible for ensuring
the performance of its obligations under this Agreement and that any failure of any Affiliate performing obligations of Merck hereunder shall be deemed to be a failure by Merck to perform such obligations. For clarity, the foregoing means that Merck
may designate an Affiliate to perform its obligations hereunder or to be the recipient of Sutro’s performance obligations hereunder. 

  

	14.4	 Further Actions. Each Party agrees to execute, acknowledge and deliver such further instruments and to
do all such other acts as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement. 

  

					
		  	50	  	*Confidential Treatment Requested.

	14.5	 Accounting Procedures. Each Party shall calculate all amounts, and perform other accounting procedures
required, under this Agreement and according to applicable accounting standards. 

  

	14.6	 Force Majeure. Neither Party shall be liable to the other Party or be deemed to have breached or
defaulted under this Agreement for failure or delay in the performance of any of its obligations under this Agreement for the time and to the extent such failure or delay is caused by or results from acts of God, earthquake, riot, civil commotion,
terrorism, war, strikes or other labor disputes, fire, flood, failure or delay of transportation, omissions or delays in acting by a governmental authority, acts of a government or an agency thereof or judicial orders or decrees or restrictions or
any other reason which is beyond the control of the respective Party. The Party affected by force majeure shall provide the other Party with full particulars thereof as soon as it becomes aware of the same (including its best estimate of the likely
extent and duration of the interference with its activities), and will use Commercially Reasonable Efforts to overcome the difficulties created thereby and to resume performance of its obligations hereunder as soon as practicable.

  

	14.7	 No Trademark Rights. No right, express or implied, is granted by this Agreement to a Party to use in any
manner the name or any other trade name or trademark of the other Party in connection with the performance of this Agreement or otherwise. 

  

	14.8	 Entire Agreement of the Parties; Amendments. This Agreement and the Schedules hereto constitute and
contain the entire understanding and agreement of the Parties respecting the subject matter hereof and cancel and supersede any and all prior negotiations, correspondence, understandings and agreements between the Parties, whether oral or written,
regarding such subject matter. No waiver, modification or amendment of any provision of this Agreement shall be valid or effective unless made in a writing referencing this Agreement and signed by a duly authorized officer of each Party.

  

	14.9	 Captions. The captions to this Agreement are for convenience only, and are to be of no force or effect
in construing or interpreting any of the provisions of this Agreement. 

  

	14.10	 Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of
England and Wales, excluding application of any conflict of laws principles that would require application of the Law of a jurisdiction outside of England and Wales, and will be subject to the exclusive jurisdiction of the competent courts of
England and Wales. 

  

	14.11	 Notices and Deliveries. Any notice, request, approval or consent required or permitted to be given under
this Agreement shall be in writing and shall be deemed to have been sufficiently given if delivered in person, transmitted by facsimile (receipt verified) or by express courier service (signature required) to the Party to which it is directed at its
address or facsimile number shown below or such other address or facsimile number as such Party shall have last given by notice to the other Party. 

If to Merck, addressed to: 
 Merck
KGaA 
 Frankfurter Strasse 250 

64293 Darmstadt 
 Germany 

Attn: [*] 
 Facsimile: +[*] 

  

					
		  	51	  	*Confidential Treatment Requested.

 In case of legal notices with a copy to: 

Merck KGaA 
 Frankfurter Strasse
250 
 64293 Darmstadt 
 Germany

 Attn: [*] 
 Facsimile: +[*]

 If to Sutro, addressed to: 

Sutro Bipharma Inc. 
 310 Utah
Ave, Suite 150 
 South San Francisco, CA 94080 

USA 
 Telephone : +[*] 

Telecopier : +[*] 
  

	14.12	 Language. The official language of this Agreement and between the Parties for all correspondence shall
be the English language. 

  

	14.13	 Waiver. A waiver by either Party of any of the terms and conditions of this Agreement in any instance
shall not be deemed or construed to be a waiver of such term or condition for the future, or of any other term or condition hereof. All rights, remedies, undertakings, obligations and agreements contained in this Agreement shall be cumulative and
none of them shall be in limitation of any other remedy, right, undertaking, obligation or agreement of either Party. 

  

	14.14	 Severability. When possible, each provision of this Agreement will be interpreted in such manner as to
be effective and valid under Law, but if any provision of this Agreement is held to be prohibited by or invalid under Law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of
this Agreement. The Parties shall make a good faith effort to replace the invalid or unenforceable provision with a valid one which in its economic effect is most consistent with the invalid or unenforceable provision. 

 

	14.15	 No Implied License. No right or license is granted to the other Party hereunder by implication,
estoppel, or otherwise to any know-how, patent or other intellectual property right owned or controlled by a Party or its Affiliates. 

 

	14.16	 Interpretation. The words “include,” “includes” and “including” shall be
deemed to be followed by the phrase “without limitation.” All references herein to Articles, Sections, and Schedules shall be deemed references to Articles and Sections of, and Schedules to, this Agreement unless the context shall
otherwise require. Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with IFRS or GAAP, as applicable, as in effect from time to time. Unless the context otherwise
requires, countries shall include territories. 

  

	14.17	 Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original,
and all of which together will be deemed to be one and the same instrument. A facsimile or a portable document format (PDF) copy of this Agreement, including the signature pages, will be deemed an original. 

[SIGNATURE PAGE FOLLOWS] 

  

					
		  	52	  	*Confidential Treatment Requested.

 IN WITNESS WHEREOF, duly authorized representations of the parties have executed this Agreement
as of the date first above written. 
  

			
	SUTRO BIOPHARMA INC.	  	MERCK KGAA
		
	Signature: /s/ William J.
Newell                                    	  	Signature: /s/ ppa. SJ
Herbert                                    
		
	Printed Name: William J. Newell	  	Printed Name: ppa. Susan Herbert
		
	Title: CEO	  	 Title: Executive Vice President Global Business

          Development & Alliance Management

		
	Signature: /s/ Jeremy
Bender                                        
	  	Signature: /s/ i.V. Simone
Heitz                                
		
	Printed Name: Jeremy Bender	  	Printed Name: i.V. Dr. Simone Heitz
		
	Title: Chief Business Officer	  	Title: Associate General Counsel

 [Signature Page to License Agreement] 

 [*] 

  

					
		  		  	*Confidential Treatment Requested.

 Exhibit B 

Invoice Example 
 Supplier name and
address, contact details etc. 
  

									
		 		 		 		 	 Invoice-No. 12345

Invoice Date: 01.01.2010

 Address of the respective Merck Affiliate e.g. 

Merck KGaA 
 [*] 

 

			
	Purchase Order number:	  	        4500XXXXX
	Merck Study/Project No.:	  	        [*]
	Merck Contact Person:	  	Dr. Example
	VAT-Registration:	  	        XXZZYYZZXX

  

									
		 		 		  		  	Currency: EUR

 Positions have to be referred to as stated in the Purchase Order, especially the item/position numbers! See example below:

  

											
	 Item/

Position
	  	Quantity	 	  	 Description of Unit
	  	 Unit Price
	  	 Net sum

	 010
	  	 	3	 	  	 Months of Project Management (Feb,
 March,
April)
	  	[*]	  	[*]
	 020
	  	 	1	 	  	50% of sites initiated	  	[*]	  	[*]
	 0nn
	  				  		  		  	
	 Sum

Total
	  				  		  		  	[*]

 Separate invoive for direct fees and indirect costs = pass through costs 

 

									
	 Item/

Position
	  	Quantity	  	 Description of Unit
	  	 Unit Price
	  	 Net sum

	 050
	  	1	  	Pass through costs e.g. travel expenses	  	n.a.	  	[*]
	 060
	  	1	  	Pass through costs investigator meeting Paris	  	n.a.	  	[*]
		  		  		  		  	
	 Sum

Total
	  		  		  		  	[*]

 Bank details of the supplier 

  

					
		  		  	*Confidential Treatment Requested.

 Schedule 1.1 

Accepted Targets 
  

									
	 #
	  	 Target
	  	 Definition
	  	 OMIM
	  	 SwissProt

	 3
	  		  		  		  	
	 4
	  		  		  		  	
	 5
	  		  		  		  	
	 6
	  		  		  		  	

 Schedule 1.11 

CFE MANUFACTURING PATENTS 

PREPARED SEPTEMBER 5, 2014 

PATENTS AND PATENT APPLICATIONS LICENSED FROM STANFORD 
  

													
	 MATTER NO
	  	 COUNTRY
	  	 STATUS
	  	 SERIAL NO
	  	 PUBL NO
	  	 PATENT NO
	  	 TITLE

	 STAN-459
	  	US	  	ISSUED	  	12/089,596	  	US 2009-0029414 A1	  	8,183,010	  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	 STAN-459AU
	  	AU	  	ISSUED	  	2006308854	  		  	2006308854	  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	 STAN-459CA
	  	CA	  	PENDING	  	2626061	  		  		  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	 STAN-459DIV
	  	US	  	ISSUED	  	13/468,907	  		  	8,492,115	  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	 STAN-459EP
	  	EP	  	PUBLISHED	  	6844245.8	  	1943338	  		  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	 STAN-459IN
	  	IN	  	PENDING	  	3144/DELNP/2008	  		  		  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	 STAN-459JP
	  	JP	  	ISSUED	  	2008-538111	  	2009-513146	  	5383197	  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	 STAN-459PRV
	  	US	  	EXPIRED	  	60/732,437	  		  		  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	 STAN-459WO
	  	WO	  	NAT PHASE	  	US2006/042583	  	WO 2007/053655	  		  	Cell-Free Synthesis of Membrane Bound Polypeptides

 [*] 

  

					
		  		  	*Confidential Treatment Requested.

 Schedule 1.64 

Named Targets 
  

									
	 #
	  	 Target
	  	 Definition
	  	OMIM	 	SwissProt
	 [*]
	  	[*]	  	[*]	  	[*]	 	[*]
	 [*]
	  	[*]	  	[*]	  	[*]	 	[*]

  

					
		  		  	*Confidential Treatment Requested.

 [*] 

  

					
		  		  	*Confidential Treatment Requested.

 Schedule 1.92 

Stanford Patents 

Prepared September 5, 2014 

PATENTS AND PATENT APPLICATIONS LICENSED FROM STANFORD 
  

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

	STAN-117	  	US	  	ISSUED	  	09/270,814	  		  	6,168,931	  	Enhanced In Vitro Synthesis of Biological Macromolecules Using a Novel ATP Regeneration System
							
	STAN-117CA	  	CA	  	ISSUED	  	2365668	  		  	2,365,668	  	In Vitro Macromolecule Biosynthesis Methods Using Exogenous Amino Acids and a Novel ATP Regeneration System
							
	STAN-117CON	  	S	  	SSUED	  	9/948,815	  	US-2002-0081660-A1	  	,994,986	  	In Vitro Synthesis of Polypeptides by Optimizing Amino Acid Metabolism
							
	STAN-117EP	  	P	  	UBLISHED	  	23078	  		  		  	In Vitro Macromolecule Biosynthesis Methods Using Exogenous Amino Acids and a Novel ATP Regeneration System
							
	STAN-117JP	  	P	  	SSUED	  	000-605770	  	2002-538832	  	707237	  	In Vitro Macromolecule Biosynthesis Methods Using Exogenous Amino Acids and a Novel ATP Regeneration System
							
	STAN-117JPDIV	  	P	  	UBLISHED	  	010-259783	  	2011-079845	  		  	In Vitro Macromolecule Biosynthesis Methods Using Exogenous Amino Acids and a Novel ATP Regeneration System
							
	STAN-117WO	  	O	  	AT PHASE	  	S00/07095	  	WO00/5353	  		  	In Vitro Macromolecule Biosynthesis Methods Using Exogenous Amino Acids and a Novel ATP Regeneration System
							
	STAN-152	  	US	  	ISSUED	  	09/621,339	  		  	6,337,191	  	In Vitro Protein Synthesis Using Glycolytic Intermediates as an Energy Source
							
	STAN-152CA	  	CA	  	ABANDONED	  	2428693	  		  		  	In Vitro Protein Synthesis Using Glycolytic Intermediates as an Energy Source
							
	STAN-152EP	  	EP	  	ABANDONED	  	980413.9	  		  		  	In Vitro Synthesis Using Glycolytic Intermediates as an Energy Source
							
	STAN-152JP	  	JP	  	ABANDONED	  	2002-
543505	  		  		  	In Vitro Synthesis Using Glycolytic Intermediates as an Energy Source
							
	STAN-152PRV	  	US	  	EXPIRED	  	60/145,438	  		  		  	In Vitro Synthesis Using Glucose Or Glycolytic Intermediates as an Energy Source
							
	STAN-152WO	  	WO	  	NAT PHASE	  	US00/31449	  		  		  	In Vitro Synthesis Using Glycolytic Intermediates as an Energy Source

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

	STAN-205	  	US	  	ISSUED	  	09/948,052	  	US-2002-0058303-A1	  	6,548,276	  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205AU	  	AU	  	ISSUED	  	2001288931	  		  	2001288931	  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205CA	  	CA	  	ISSUED	  	2419996	  		  	2419996	  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205CIP	  	US	  	ISSUED	  	10/404,599	  	US-2004-0038332-A1	  	7,041,479	  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205EP	  	EP	  	ISSUED	  	1968701.1	  	1315826	  	1315826	  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205JP	  	JP	  	ISSUED	  	2002-525824	  	2004-508050	  	4889185	  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205PRV	  	US	  	EXPIRED	  	60/230,381	  		  		  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205WO	  	WO	  	NAT PHASE	  	US01/28159	  	WO 02/20818	  		  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-273	  	US	  	ISSUED	  	10/643,683	  	US 2004-0209321 A1	  	7,338,789	  	Methods of In Vitro Protein Synthesis
							
	STAN-273AU	  	AU	  	ISSUED	  	2003259912	  		  	2003259912	  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-273CA	  	CA	  	ISSUED	  	2496437	  		  	2496437	  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-273DIV	  	US	  	ISSUED	  	11/971,130	  	US 2008-0138857 A1	  	8,357,529	  	Methods of In Vitro Protein Synthesis
							
	STAN-273EP	  	EP	  	ISSUED	  	3788625.6	  	1539948	  	1539948	  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-273EPDIV	  	EP	  	ABANDONED	  	9009204	  	2108697	  		  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-273JP	  	JP	  	ISSUED	  	2004-529558	  	2005-536206	  	5259046	  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-273JPDIV	  	JP	  	ABANDONED	  	2010-153515	  	2010-279368	  		  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-273PRV	  	US	  	EXPIRED	  	60/404,591	  		  		  	Methods of In Vitro Protein Synthesis
							
	STAN-273WO	  	WO	  	NAT PHASE	  	US03/25888	  	WO 2004/016778	  		  	Improved Methods of In Vitro Protein Synthesis

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

	STAN-309	  	US	  	ISSUED	  	10/888,145	  	US-2005-0054032-A1	  	7,341,852	  	Methods of Decoupling Reaction Scale and Protein Synthesis Yield in Batch Mode
							
	STAN-309AU	  	AU	  	ISSUED	  	2004259433	  		  	2004259433	  	Methods of Decoupling Reaction Scale and Protein Synthesis Yield in Batch Mode
							
	STAN-309EP	  	EP	  	ISSUED	  	4778237	  	1649025	  	1649025	  	Methods of Decoupling Reaction Scale and Protein Synthesis Yield in Batch Mode
							
	STAN-309JP	  	JP	  	ISSUED	  	2006-
521119	  	2006-527997	  	4751829	  	Methods of Decoupling Reaction Scale and Protein Synthesis Yield in Batch Mode
							
	STAN-309PRV	  	US	  	EXPIRED	  	60/488,282	  		  		  	Methods of Decoupling Reaction Scale and Protein Synthesis Yield in Batch Mode
							
	STAN-309WO	  	WO	  	NAT PHASE	  	US2004/022632	  	WO 2004/022632	  		  	Methods of Decoupling Reaction Scale and Protein Synthesis Yield in Batch Mode
							
	STAN-337	  	US	  	PUBLISHED	  	10/579,711	  	US 2007-0154983 A1	  		  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-337AU	  	AU	  	ISSUED	  	2004293798	  		  	2004293798	  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-337CN	  	CN	  	PUBLISHED	  	2.0048E+11	  	101014716	  		  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-337EP	  	EP	  	PUBLISHED	  	4811533.1	  	1685240	  		  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-337IN	  	IN	  	ISSUED	  	1741/CHENP/2006	  		  	239129	  	A Method for Synthesis of Polynucleotides and/or Polypeptides
							
	STAN-337JP	  	JP	  	ISSUED	  	2006-
541404	  	2007-521023	  	5074768	  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-337KR	  	KR	  	ISSUED	  	2006-
7010314	  		  	10-1232656	  	Improved Methods of In Vitro Protein Synthesis
							
	TAN-337NZ	  	Z	  	SSUED	  	546961	  	Journal No. 1559	  	546961	  	Improved Methods of ln Vitro Protein Synthesis
							
	TAN-337PRV	  	S	  	XPIRED	  	60/524,374	  		  		  	Improved Methods of ln Vitro Protein Synthesis
							
	TAN-337WO	  	O	  	AT PHASE	  	US2004/038830	  	WO 2005/052117	  		  	Improved Methods of In Vitro Protein Synthesis

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

							
	 STAN-353
	  	US	  	ISSUED	  	10/599,310	  	US 2009-0042244 A1	  	8,298,759	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353AU
	  	AU	  	ISSUED	  	2005230916	  	  
	  	2005230916	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353CA
	  	CA	  	PENDING	  	2560504	  	  
	  	  
	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353CN
	  	CN	  	ABANDONED	  	2.0058E+11	  	  
	  	  
	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353EA
	  	EA	  	ISSUED	  	200601748	  	  
	  	10837	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353EP
	  	EP	  	ISSUED	  	5733219.9	  	1730313	  	1730313	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353ID
	  	ID	  	ISSUED	  	W00 2006 02538	  	047.0258A	  	P0029416	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353JP
	  	JP	  	ISSUED	  	2007-505063	  	2007-530042	  	4829215	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353KR
	  	KR	  	ISSUED	  	10-2006-7019493	  	  
	  	10-1229849	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353MX
	  	MX	  	ISSUED	  	PA/a/2006/010918	  	  
	  	280082	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353NO
	  	NO	  	ISSUED	  	20064735	  	  
	  	331586	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353NZ
	  	NZ	  	ISSUED	  	549523	  	1564	  	549523	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353PRV
	  	US	  	EXPIRED	  	60/556,736	  	  
	  	  
	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353SG
	  	SG	  	ISSUED	  	200606158-4	  	  
	  	125458	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	 STAN-353WO
	  	WO	  	NAT PHASE	  	US2005/009342	  	WO 2005/098048	  	  
	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

	STAN-405	  	US	  	ISSUED	  	11/447,367	  	US 2007-0004001 A1	  	7,312,049	  	Total Amino Acid Stabilization During Cell-Free Protein Synthesis
							
	STAN-405AU	  	AU	  	ISSUED	  	2006259543	  		  	2006259543	  	Total Amino Acid Stabilization During Cell-Free Protein Synthesis
							
	STAN-405CA	  	CA	  	PENDING	  	2611908	  		  		  	Total Amino Acid Stabilization During Cell-Free Protein Synthesis
							
	STAN-405EP	  	EP	  	PUBLISHED	  	6784839	  	1893768	  		  	Total Amino Acid Stabilization During Cell-Free Protein Synthesis
							
	STAN-405PRV	  	US	  	EXPIRED	  	60/690,571	  		  		  	Total Amino Acid Stabilization During Cell-Free Protein Synthesis
							
	STAN-405WO	  	WO	  	NAT PHASE	  	US2006/023032	  	WO 2006/138322	  		  	Total Amino Acid Stabilization During Cell-Free Protein Synthesis
							
	STAN-459	  	US	  	ISSUED	  	12/089,596	  	US 2009-0029414 A1	  	8,183,010	  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459AU	  	AU	  	ISSUED	  	2006308854	  		  	2006308854	  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459CA	  	CA	  	PENDING	  	2626061	  		  		  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459DIV	  	US	  	ISSUED	  	13/468,907	  		  	8,492,115	  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459EP	  	EP	  	PUBLISHED	  	6844245.8	  	1943338	  		  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459IN	  	IN	  	PENDING	  	3144/DELNP/2008	  		  		  	Cell-Free Synthesis of Membrane Bound Polypeptides

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

	STAN-459JP	  	JP	  	ISSUED	  	2008-538111	  	2009-513146	  	5383197	  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459PRV	  	US	  	EXPIRED	  	60/732,437	  		  		  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459WO	  	WO	  	NAT PHASE	  	US2006/042583	  	WO 2007/053655	  		  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-507	  	US	  	ISSUED	  	12/305,617	  	US 2010-0093024 A1	  	8,715,958	  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507AU	  	AU	  	ISSUED	  	2007325952	  		  	2007325952	  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507CA	  	CA	  	PENDING	  	2657811	  		  		  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507CN	  	CN	  	ISSUED	  	2.0078E+11	  		  	ZL200780024345.9	  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507EP	  	EP	  	ISSUED	  	7870711.4	  	2035554	  	2035554	  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507IN	  	IN	  	ISSUED	  	2784/MUMNP/2008	  		  	258411	  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507JP	  	JP	  	PUBLISHED	  	2009-
518303	  	2009-542214	  		  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507PRV	  	US	  	EXPIRED	  	60/817,915	  		  		  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507WO	  	WO	  	NAT PHASE	  	US2007/015170	  	WO 2008/066583	  		  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-534	  	US	  	ISSUED	  	12/016,763	  	US 2008-0248521 A1	  	7,871,794	  	Enhanced Cell-Free Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-534AU	  	AU	  	ABANDONED	  	2008205479	  		  		  	Enhanced Cell-Free Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-534CA	  	CA	  	ABANDONED	  	2673765	  		  		  	Enhanced Cell-Free Synthesis of Active Proteins Containing Disulfide Bonds

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

							
	 STAN-534EP
	  	EP	  	ABANDONED	  	8724626	  	2109682	  	  
	  	Enhanced Cell-Free Synthesis of Active Proteins Containing Disulfide Bonds
							
	 STAN-534JP
	  	JP	  	ABANDONED	  	2009-546434	  	2010-516251	  	  
	  	Enhanced Cell-Free Synthesis of Active Proteins Containing Disulfide Bonds
							
	 STAN-534PRV
	  	US	  	EXPIRED	  	60/881,251	  	  
	  	  
	  	Enhanced in Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	 STAN-534WO
	  	WO	  	NAT PHASE	  	US2008/000699	  	WO 2008/088884	  	  
	  	Enhanced Cell-Free Synthesis of Active Proteins Containing Disulfide Bonds

 [*] 
  

  

					
		  		  	*Confidential Treatment Requested.

 Schedule 1.105 

Sutro Platform Patents 

Prepared September 5, 2014 

PATENTS AND PATENT APPLICATIONS LICENSED FROM STANFORD 
  

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

	STAN-117	  	US	  	ISSUED	  	09/270,814	  		  	6,168,931	  	Enhanced In Vitro Synthesis of Biological Macromolecules Using a Novel ATP Regeneration System
							
	STAN-117CA	  	CA	  	ISSUED	  	2365668	  		  	2,365,668	  	In Vitro Macromolecule Biosynthesis Methods Using Exogenous Amino Acids and a Novel ATP Regeneration System
							
	STAN-117CON	  	US	  	ISSUED	  	09/948,815	  	US-2002-0081660-A1	  	6,994,986	  	In Vitro Synthesis of Polypeptides by Optimizing Amino Acid Metabolism
							
	STAN-117EP	  	EP	  	PUBLISHED	  	923078	  		  		  	In Vitro Macromolecule Biosynthesis Methods Using Exogenous Amino Acids and a Novel ATP Regeneration System
							
	STAN-117JP	  	JP	  	ISSUED	  	2000-605770	  	2002-538832	  	4707237	  	In Vitro Macromolecule Biosynthesis Methods Using Exogenous Amino Acids and a Novel ATP Regeneration System
							
	STAN-117JPDIV	  	JP	  	PUBLISHED	  	2010-259783	  	2011-079845	  		  	In Vitro Macromolecule Biosynthesis Methods Using Exogenous Amino Acids and a Novel ATP Regeneration System
							
	STAN-117WO	  	WO	  	NAT PHASE	  	US00/07095	  	WO00/5353	  		  	In Vitro Macromolecule Biosynthesis Methods Using Exogenous Amino Acids and a Novel ATP Regeneration System
							
	STAN-152	  	US	  	ISSUED	  	09/621,339	  		  	6,337,191	  	In Vitro Protein Synthesis Using Glycolytic Intermediates as an Energy Source
							
	STAN-152CA	  	CA	  	ABANDONED	  	2428693	  		  		  	In Vitro Protein Synthesis Using Glycolytic Intermediates as an Energy Source
							
	STAN-152EP	  	EP	  	ABANDONED	  	980413.9	  		  		  	In Vitro Synthesis Using Glycolytic Intermediates as an Energy Source
							
	STAN-152JP	  	JP	  	ABANDONED	  	2002-543505	  		  		  	In Vitro Synthesis Using Glycolytic Intermediates as an Energy Source
							
	STAN-152PRV	  	US	  	EXPIRED	  	60/145,438	  		  		  	In Vitro Synthesis Using Glucose Or Glycolytic Intermediates as an Energy Source
							
	STAN-152WO	  	WO	  	NAT PHASE	  	US00/31449	  		  		  	In Vitro Synthesis Using Glycolytic Intermediates as an Energy Source

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

	STAN-205	  	US	  	ISSUED	  	09/948,052	  	US-2002-0058303-A1	  	6,548,276	  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205AU	  	AU	  	ISSUED	  	2001288931	  		  	2001288931	  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205CA	  	CA	  	ISSUED	  	2419996	  		  	2419996	  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205CIP	  	US	  	ISSUED	  	10/404,599	  	US-2004-0038332-A1	  	7,041,479	  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205EP	  	EP	  	ISSUED	  	1968701.1	  	1315826	  	1315826	  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205JP	  	JP	  	ISSUED	  	2002-525824	  	2004-508050	  	4889185	  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205PRV	  	US	  	EXPIRED	  	60/230,381	  		  		  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-205WO	  	WO	  	NAT PHASE	  	US01/28159	  	WO 02/20818	  		  	Enhanced In Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-273	  	US	  	ISSUED	  	10/643,683	  	US 2004-0209321 A1	  	7,338,789	  	Methods of In Vitro Protein Synthesis
							
	STAN-273AU	  	AU	  	ISSUED	  	2003259912	  		  	2003259912	  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-273CA	  	CA	  	ISSUED	  	2496437	  		  	2496437	  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-273DIV	  	US	  	ISSUED	  	11/971,130	  	US 2008-0138857A1	  	8,357,529	  	Methods of In Vitro Protein Synthesis
							
	STAN-273EP	  	EP	  	ISSUED	  	3788625.6	  	1539948	  	1539948	  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-273EPDIV	  	EP	  	ABANDONED	  	9009204	  	2108697	  		  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-273JP	  	JP	  	ISSUED	  	2004-
529558	  	2005-536206	  	5259046	  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-273JPDIV	  	JP	  	ABANDONED	  	2010-
153515	  	2010-279368	  		  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-273PRV	  	US	  	EXPIRED	  	60/404,591	  		  		  	Methods of In Vitro Protein Synthesis
							
	STAN-273WO	  	WO	  	NAT PHASE	  	US03/25888	  	WO 2004/016778	  		  	Improved Methods of In Vitro Protein Synthesis

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

	STAN-309	  	US	  	ISSUED	  	10/888,145	  	US-2005-0054032-A1	  	7,341,852	  	Methods of Decoupling Reaction Scale and Protein Synthesis Yield in Batch Mode
							
	STAN-309AU	  	AU	  	ISSUED	  	2004259433	  		  	2004259433	  	Methods of Decoupling Reaction Scale and Protein Synthesis Yield in Batch Mode
							
	STAN-309EP	  	EP	  	ISSUED	  	4778237	  	1649025	  	1649025	  	Methods of Decoupling Reaction Scale and Protein Synthesis Yield in Batch Mode
							
	STAN-309JP	  	JP	  	ISSUED	  	2006-
521119	  	2006-527997	  	4751829	  	Methods of Decoupling Reaction Scale and Protein Synthesis Yield in Batch Mode
							
	STAN-309PRV	  	US	  	EXPIRED	  	60/488,2.82	  		  		  	Methods of Decoupling Reaction Scale and Protein Synthesis Yield in Batch Mode
							
	STAN-309WO	  	WO	  	NAT
PHASE	  	US2004/022632	  	WO 2004/022632	  		  	Methods of Decoupling Reaction Scale and Protein Synthesis Yield in Batch Mode
							
	STAN-337	  	US	  	PUBLISHED	  	10/579,711	  	US 2007-0154983 A1	  		  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-337AU	  	AU	  	ISSUED	  	2004293798	  		  	2004293798	  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-337CN	  	CN	  	PUBLISHED	  	2.0048E+11	  	101014716	  		  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-337EP	  	EP	  	PUBLISHED	  	4811533.1	  	1685240	  		  	Improved Methods of In Vitro Protein Synthesis
							
	STAN-337IN	  	IN	  	ISSUED	  	1741/CHENP/2006	  		  	239129	  	A Method for Synthesis of Polynucleotides and/or Polypeptides
							
	STAN-337JP	  	JP	  	ISSUED	  	2006-
541404	  	2007-521023	  	5074768	  	Improved Methods of In Vitro Protein Synthesis
							
	STAN -337KR	  	KR	  	ISSUED	  	2006-
7010314	  		  	10-1232656	  	
							
	TAN-337NZ	  	Z	  	ISSUED	  	546961	  	Journal No. 1559	  	46961	  	Improved Methods of In Vitro Protein Synthesis
							
	TAN-337PRV	  	S	  	EXPIRED	  	60/524,374	  		  		  	Improved Methods of In Vitro Protein Synthesis
							
	TAN-337WO	  	O	  	NAT PHASE	  	US2004/038830-	  	WO2005/052117	  		  	Improved Methods of In Vitro Protein Synthesis

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

	STAN-353	  	US	  	ISSUED	  	10/599,310	  	US 2009-0042244 A1	  	8,298,759	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353AU	  	AU	  	ISSUED	  	2005230916	  		  	2005230916	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353CA	  	CA	  	PENDING	  	2560504	  		  		  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353CN	  	CN	  	ABANDONED	  	2.0058E+11	  		  		  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353EA	  	EA	  	ISSUED	  	200601748	  		  	10837	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353EP	  	EP	  	ISSUED	  	5733219.9	  	1730313	  	1730313	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353ID	  	ID	  	ISSUED	  	W00 2006
02538	  	047.0258A	  	P0029416	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353JP	  	JP	  	ISSUED	  	2007-
505063	  	2007-530042	  	4829215	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353KR	  	KR	  	ISSUED	  	10-2006-
7019493	  		  	10-1229849	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353MX	  	MX	  	ISSUED	  	PA/a/
2006/010918	  		  	280082	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353NO	  	NO	  	ISSUED	  	20064735	  		  	331586	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353NZ	  	NZ	  	ISSUED	  	549523	  	1564	  	549523	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

	STAN-353PRV	  	US	  	EXPIRED	  	60/556,736	  		  		  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353SG	  	SG	  	ISSUED	  	200606158-4	  		  	125458	  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-353WO	  	WO	  	NAT
PHASE	  	US2005/009342	  	WO 2005/098048	  		  	Protein Expression Yield Enhancement in Cell-Free Protein Synthesis Systems by Addition of Antifoam Agents
							
	STAN-405	  	US	  	ISSUED	  	11/447,367	  	US 2007-0004001 A1	  	7,312,049	  	Total Amino Acid Stabilization During Cell-Free Protein Synthesis
							
	STAN-405AU	  	AU	  	ISSUED	  	2006259543	  		  	2006259543	  	Total Amino Acid Stabilization During Cell-Free Protein Synthesis
							
	STAN-405CA	  	CA	  	PENDING	  	2611908	  		  		  	Total Amino Acid Stabilization During Cell-Free Protein Synthesis
							
	STAN-405EP	  	EP	  	PUBLISHED	  	6784839	  	1893768	  		  	Total Amino Acid Stabilization During Cell-Free Protein Synthesis
							
	STAN-405PRV	  	US	  	EXPIRED	  	60/690,571	  		  		  	Total Amino Acid Stabilization During Cell-Free Protein Synthesis
							
	STAN-405WO	  	WO	  	NAT PHASE	  	US2006/023032	  	WO 2006/138322	  		  	Total Amino Acid Stabilization During Cell-Free Protein Synthesis
							
	STAN-459	  	US	  	ISSUED	  	12/089,596	  	US 2009-0029414 A1	  	8,183,010	  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459AU	  	AU	  	ISSUED	  	2006308854	  		  	2006308854	  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459CA	  	CA	  	PENDING	  	2626061	  		  		  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459DIV	  	US	  	ISSUED	  	13/468,907	  		  	8,492,115	  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459EP	  	EP	  	PUBLISHED	  	6844245.8	  	1943338	  		  	Cell-Free Synthesis of Membrane Bound Polypeptides

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

	STAN-459IN	  	IN	  	PENDING	  	3144/DELNP/2008	  		  		  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459JP	  	JP	  	ISSUED	  	2008-538111	  	2009-513146	  	5383197	  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459PRV	  	US	  	EXPIRED	  	60/732,437	  		  		  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-459WO	  	WO	  	NAT PHASE	  	US2006/042583	  	WO 2007/053655	  		  	Cell-Free Synthesis of Membrane Bound Polypeptides
							
	STAN-507	  	US	  	ISSUED	  	12/305,617	  	US 2010-0093024 A1	  	8,715,958	  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507AU	  	AU	  	ISSUED	  	2007325952	  		  	2.007325952	  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507CA	  	CA	  	PENDING	  	2657811	  		  		  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507CN	  	CN	  	ISSUED	  	2.0078E+11	  		  	ZL200780024345.9	  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507EP	  	EP	  	ISSUED	  	7870711.4	  	2035554	  	2035554	  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507IN	  	IN	  	ISSUED	  	2784/MUMNP/2008	  		  	258411	  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507JP	  	JP	  	PUBLISHED	  	2009-518303	  	2009-542214	  		  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507PRV	  	US	  	EXPIRED	  	60/817,915	  		  		  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids
							
	STAN-507WO	  	WO	  	NAT PHASE	  	US2007/015170	  	WO 2008/066583	  		  	Cell-Free Synthesis of Proteins Containing Unnatural Amino Acids

													
	 MATTER NO
	  	COUNTRY	  	STATUS	  	SERIAL NO	  	PUBL NO	  	PATENT NO	  	 TITLE

	STAN-534	  	US	  	ISSUED	  	12/016,763	  	US 2008-0248521 A1	  	7,871,794	  	Enhanced Cell-Free Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-534AU	  	AU	  	ABANDONED	  	2008205479	  		  		  	Enhanced Cell-Free Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-534CA	  	CA	  	ABANDONED	  	2673765	  		  		  	Enhanced Cell-Free Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-534EP	  	EP	  	ABANDONED	  	8724626	  	2109682	  		  	Enhanced Cell-Free Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-534JP	  	JP	  	ABANDONED	  	2009-
546434	  	2010-516251	  		  	Enhanced Cell-Free Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-534PRV	  	US	  	EXPIRED	  	60/881,251	  		  		  	Enhanced in Vitro Synthesis of Active Proteins Containing Disulfide Bonds
							
	STAN-534WO	  	WO	  	NAT PHASE	  	US2008/000699	  	WO 2008/088884	  		  	Enhanced Cell-Free Synthesis of Active Proteins Containing Disulfide Bonds

 [*] 

  

					
		  		  	*Confidential Treatment Requested.

 Schedule 4.3 

Stanford In-License Sublicensing Requirements 

Merck KGaA (“Merck”) hereby agrees to be bound by the terms and conditions of the Stanford In-License, including the terms set forth below, to the
same extent Sutro (formerly known as Fundamental Applied Biology, Inc., or “FAB”) is bound thereunder, as if references to FAB or Sutro were references to Merck. 

Sec. 1. Capital Terms used in the following provisions 9 and 10 from the Stanford In-License shall have the
meaning as set forth in the Stanford In-License. Upon the occurrence of Sutro’s Inability To Perform, and the exercise of the sublicense granted to Merck under Section 4.2, the following provisions
of the Stanford In-License (Articles 9 and 10) are hereby included in the Agreement, and Stanford is hereby named as a third party beneficiary of such provisions with respect to Stanford In-Licenses only: 
  

	9	 WARRANTIES AND NEGATION OF WARRANTIES 

 

	9.1	 Warranties. Stanford warrants and represents that (a) it has the right and authority to enter into
this Agreement and to grant licenses of the scope granted in this Agreement and (b) Stanford has not previously granted any rights in the Licensed Patents other than the rights and licenses granted in the
Pre-Existing Licenses and will not grant any further rights in the Licensed Patents that are inconsistent with the rights and licenses granted to Sutro herein. For purposes of clarity, Sutro acknowledges that
it has been made aware by Stanford of the scope of the field of use of the Pre-Existing Licenses. 

  

	9.2	 Negation of Warranties. Except as expressly set forth in this Agreement, Stanford makes no
representations and extends no warranties of any kind, either express or implied. Among other things, Stanford disclaims any express or implied warranty: 

(A) of merchantability, of fitness for a particular purpose, 

(B) of non-infringement or 

(C) arising out of any course of dealing. 
  

	9.3	 No Representation of Licensed Patent. Sutro also acknowledges that Stanford does not represent or
warrant: 

 (A) the validity or scope of any Licensed Patent, or 

(B) that the exploitation of Licensed Patent or Technology will be successful. 

 

	10	 INDEMNITY 

  

	10.1	 Indemnification. Sutro will indemnify, hold harmless, and defend all Stanford Indemnitees against any
and all third party claims for death, illness, personal injury, property damage, and improper business practices arising out of the manufacture, use, sale, or other disposition of the Licensed Patents or Licensed Products by Sutro, unless resulting
from a claimed breach by Stanford of its warranties or the gross negligence or willful misconduct of any Stanford Indemnitee; provided that: 

(A) Sutro receives prompt notice of any such claim, 

(B) Sutro shall not be obligated to indemnify any Stanford Indemnitee in connection with any settlement for any claim unless Sutro consents in
writing to such settlement (which consent shall not be unreasonably withheld), and 
 (C) Sutro shall have the first right to defend any such
claim and, if Sutro elects to exercise such first right, the exclusive right to control the defense thereof. 

 Notwithstanding the foregoing, Sutro shall have no obligations for any third party claim or
demand that may be the subject of this Section 10.1 if the Stanford Indemnitee seeking indemnification makes any admission regarding such claim without the prior written consent of Sutro, which consent shall not be unreasonably withheld. 

 

	10.2	 No Indirect Liability. Neither party shall be liable for any special, consequential, lost profit,
expectation, punitive or other indirect damages in connection with any claim arising out of or related to this Agreement, whether grounded in tort (including negligence), strict liability, contract, or otherwise arising out of or in connection with
solely this Agreement under any theory of liability; provided, however, that the foregoing shall not apply to any right of action for infringement, contributory infringement or inducement of infringement Stanford may have under any applicable law.
Except as provided in Section 9.1, Stanford shall not have any responsibilities or liabilities whatsoever with respect to Licensed Products. 

  

	10.3.	 Workers’ Compensation. Sutro will comply with all statutory workers’ compensation and
employers’ liability requirements for activities performed under this Agreement. 

  

	10.4.	 Insurance. During the term of this Agreement, Sutro will maintain Comprehensive General Liability
Insurance, including Product Liability Insurance, with a reputable and financially secure insurance carrier to cover the activities of Sutro and its sublicensees. Upon introduction of Licensed Product into humans, such insurance will provide minimum
limits of liability of $[*] and will include all Stanford Indemnitees as additional insureds. Such insurance shall be written to cover claims incurred, discovered, manifested, or made during or after the expiration of this Agreement and must be
placed with carriers with ratings of at least A- as rated by A.M. Best. Within 15 days of the introduction of Licensed Product into humans, Sutro will furnish a Certificate of Insurance evidencing primary coverage and additional insured
requirements. Sutro will provide to Stanford 30 days prior written notice of cancellation or material change to this insurance coverage. Sutro will advise Stanford in writing that it maintains excess liability coverage (following form) over primary
insurance for at least the minimum limits set forth above. All insurance of Sutro will be primary coverage; insurance of Stanford and Stanford Hospitals and Clinics will be excess and noncontributory. Notwithstanding the foregoing, if Sutro proposes
alternative coverage under this Section 10.4, Stanford shall not unreasonably withhold its consent to such alternative coverage in lieu of the coverage detailed in this Section 10.4, so long as the proposed coverage is reasonable and customary for
the industry and reasonably protects Stanford’s interests. 

 Sec. 2. If the Stanford
In-License is terminated, the applicable obligations with respect to the subject matter covered by the Stanford In-License will be transferred to Stanford or its
designee, and Merck will assume such obligations, and (to the extent it exercises any rights to such subject matter) Merck will make any payment thereby due under the Stanford In-License by Sutro directly to
Stanford or its designee. For purposes of clarity, it is agreed that in the event the Stanford In-License is terminated, Stanford shall have audit rights vis-à-vis Merck and its Affiliates substantially similar to those set forth in Section 8.5 of the Stanford In-License. 

Sec. 3. Any sublicense granted by Merck under the Licensed Patents (as defined in the Stanford In-License) will not include the right to further
sublicense. 

  

					
		  		  	*Confidential Treatment Requested.

 [*] 

  

					
		  		  	*Confidential Treatment Requested.

 Schedule 9.5(a) 

Press Releases 
  
 

 
 Final: 9/17/2014 

Sutro Biopharma and Merck KGaA of Darmstadt, Germany, to Partner 

on Development of Antibody Drug Conjugates 
  

	 	•	 	 Collaboration and license agreement allows the biopharmaceutical division of Merck KGaA, Darmstadt, Germany,
to enhance its access to antibody drug conjugate technologies and to expand its oncology pipeline 

  

	 	•	 	 Sutro’s Xpress CFTM and Xpress CF+TM platforms to be utilized to develop antibody drug conjugates
for multiple undisclosed targets 

 SAN FRANCISCO, September 17, 2014 – Sutro Biopharma, a biopharmaceutical company
developing antibody drug conjugates and bispecific antibodies, and the biopharmaceutical division of Merck KGaA, Darmstadt, Germany, which operates as EMD Serono in the United States and Canada, today announced a collaboration and license agreement
to develop antibody drug conjugates (ADCs). ADCs are composed of an antibody linked to a cytotoxic drug. The antibody is thought to specifically target and deliver the cytotoxic drug to the cancer cells. 

The collaboration will allow the biopharmaceutical division of Merck KGaA to take advantage of Sutro’s technology platforms in its oncology programs to
develop ADCs for multiple undisclosed targets. Both companies believe that ADCs have the potential for directly targeting cancer cells while safeguarding healthy tissue, and will combine Merck KGaA’s knowledge about target biology with
Sutro’s technological and discovery capabilities to jointly develop ADCs. By following a strategic approach of creating partnerships, Merck KGaA and Sutro aim to develop drug candidates that may ultimately address the unmet needs of patients.

 “We continue to explore opportunities that will allow us to better understand the potential ADCs have in
directly targeting cancer cells,” said Andree Blaukat, Senior Vice President and Head of Translational Innovation Platform Oncology at Merck Serono, the biopharmaceutical division of Merck KGaA, Darmstadt, Germany. “This collaboration with
Sutro is reflective of our ongoing commitment to advancing innovation that may provide new therapies for patients.” 
 “This partnership will help
us to advance our position as a leading drug discovery partner to renowned pharmaceutical companies like Merck in Darmstadt, Germany,” said William J. Newell, chief executive officer of Sutro. “Together with Merck KGaA, we will further
advance our efforts to develop antibody therapeutics, engineered to deliver a cytotoxic agent to cancer cells. Our technology has been developed to allow loading of an antibody with multiple different agents, and to enable a potential higher uptake
of the drug in the tumor cell through improved stability of the ADC.” 
 Under the terms of the agreement, Sutro and Merck KGaA will collaborate to
discover and develop multiple ADCs utilizing Sutro’s cell-free protein synthesis platforms, Xpress CFTM and Xpress CF+TM. Sutro will be responsible for delivering ADCs for Phase I clinical trials. Merck KGaA will be responsible for
clinical development and commercialization of any resulting products. 
 Merck KGaA will make an upfront payment to Sutro and will fund certain R&D
activities. Sutro is also eligible to receive payments on completion of certain research, development and regulatory milestones potentially totaling approximately € 230 million as well as royalties on product sales. Further financial
details are not being disclosed. 
 About Sutro Biopharma 

Sutro Biopharma, located in South San Francisco, is developing a new generation of antibody drug conjugate therapeutics and bifunctional antibody-based
therapeutics for targeted cancer therapies. These therapeutics may significantly extend the clinical impact of current oncology therapeutic approaches and are beyond what can be 

 envisioned with current, cell-based expression technologies. Sutro’s biochemical synthesis technology, which
underpins these therapeutics, allows the rapid and systematic exploration of many protein drug variants to identify drug candidates. Once the product candidates are identified, production can be rapidly and predictably scaled up to commercial
levels. Sutro has established a Good Manufacturing Practice (cGMP) facility for the production of clinical supplies of materials using its biochemical protein synthesis platform. Sutro has formed multiple partnerships with biopharma companies
utilizing its technology. 
 For more information, visit www.sutrobio.com. 

About EMD Serono, Inc. 
 EMD Serono, Inc., a subsidiary of
Merck KGaA, Darmstadt, Germany, is a leading US biopharmaceutical company focused exclusively on specialty care. For more than 40 years, EMD Serono has integrated cutting-edge science, innovative products and devices, and industry-leading patient
support and access programs. EMD Serono has deep expertise in neurology, fertility and endocrinology, as well as a robust pipeline of potential therapies in neurology, oncology, immunology and immuno-oncology. Today, EMD Serono has more than 1,100
employees around the country with commercial, clinical and research operations based in the company’s home state of Massachusetts. For more information, please visit www.emdserono.com 

About Merck KGaA, Darmstadt, Germany 
 Merck KGaA of
Darmstadt, Germany, is a leading company for innovative and top-quality high-tech products in the pharmaceutical and chemical sectors. Its subsidiaries in Canada and the United States operate under the umbrella brand EMD. Around 39,000 employees
work in 66 countries to improve the quality of life for patients, to further the success of customers and to help meet global challenges. The company generated total revenues of €11.1 billion in 2013 with its four divisions:
Biopharmaceuticals, Consumer Health, Performance Materials and Life Science Tools. Merck KGaA of Darmstadt, Germany is the world’s oldest pharmaceutical and chemical company - since 1668, the name has stood for innovation, business success and
responsible entrepreneurship. Holding an approximately 70 percent interest, the founding family remains the majority owner of the company to this day. 

 Media Contact Sutro: 

Martina Schwarzkopf, Ph.D. 
 Russo Partners 

212 845-4292 

martina.schwarzkopf@russopartnersllc.com 

			
	News Release	  	 Your Contact
  

Andrea Marquart
 Phone +49 6151
72-6517

 September 17, 2014 

Merck Serono and Sutro Biopharma to Partner on Development of Antibody Drug Conjugates 

 

	 	•	 	 Merck Serono to enhance its access to antibody drug conjugate technologies and to expand its oncology
pipeline 

  

	 	•	 	 Sutro’s Xpress CF and Xpress CF+ platforms to be utilized to develop antibody drug conjugates for
multiple undisclosed targets 

 Darmstadt, Germany, September 17, 2014 – Merck Serono, the biopharmaceutical division of
Merck, and Sutro Biopharma, San Francisco, a biopharmaceutical company developing antibody drug conjugates and bispecific antibodies, today announced a collaboration and license agreement to develop antibody drug conjugates (ADCs). ADCs are composed
of an antibody linked to a cytotoxic drug. The antibody is thought to specifically target and deliver the cytotoxic drug to the cancer cells. 
 The
collaboration will allow Merck Serono to take advantage of Sutro’s technology platforms in its oncology programs to develop ADCs for multiple undisclosed targets. Both companies believe that ADCs have the potential for directly targeting cancer
cells while safeguarding healthy tissue, and will combine Merck Serono’s knowledge about target biology with Sutro’s technological and discovery capabilities to jointly develop ADCs. By following a strategic approach of creating
partnerships, Merck Serono and Sutro aim to develop drug candidates that may ultimately address the unmet needs of patients. 
 “We continue to explore
opportunities that will allow us to better understand the potential ADCs have in directly targeting cancer cells,” said Andree Blaukat, Senior Vice President and Head of Translational Innovation Platform Oncology at Merck Serono. “This
collaboration with Sutro is reflective of our ongoing commitment to advancing innovation that may provide new therapies for patients.” 

 “This partnership will help us to advance our position as a leading drug discovery partner to renowned
pharmaceutical companies like Merck,” said William J. Newell, chief executive officer of Sutro. “Together with Merck Serono, we will further advance our efforts to develop antibody therapeutics, engineered to deliver a cytotoxic agent to
cancer cells. Our technology has been developed to allow loading of an antibody with multiple different agents, and to enable a potential higher uptake of the drug in the tumor cell through an improved stability of the ADC.” 

Under the terms of the agreement, Sutro and Merck Serono will collaborate to discover and develop multiple ADCs utilizing Sutro’s cell-free protein
synthesis platforms, Xpress CFTM and Xpress CF+TM. Sutro will be responsible for delivering ADCs for Phase I clinical trials. Merck Serono will be responsible for clinical development and commercialization of any resulting products. 

Merck Serono will make an upfront payment to Sutro and will fund certain R&D activities. Sutro is also eligible to receive payments on completion of
certain research, development and regulatory milestones potentially totaling approximately € 230 million as well as royalties on product sales. Further financial details are not being disclosed. 

About Sutro Biopharma 
 Sutro Biopharma, located in South
San Francisco, is developing a new generation of antibody drug conjugate therapeutics and bifunctional antibody-based therapeutics for targeted cancer therapies. These therapeutics may significantly extend the clinical impact of current oncology
therapeutic approaches and are beyond what can be envisioned with current, cell-based expression technologies. Sutro’s biochemical synthesis technology, which underpins these therapeutics, allows the rapid and systematic exploration of many
protein drug variants to identify drug candidates. Once the product candidates are identified, production can be rapidly and predictably scaled up to commercial levels. Sutro has established a Good Manufacturing Practice (cGMP) facility for the
production of clinical supplies of materials using its biochemical protein synthesis platform. Sutro has formed multiple partnerships with biopharma companies utilizing its technology. 

For more information, visit www.sutrobio.com. 
 About Merck
Serono 
 Merck Serono is the biopharmaceutical division of Merck. With headquarters in Darmstadt, Germany, Merck Serono offers leading brands in 150
countries to help patients with cancer, multiple sclerosis, infertility, endocrine and metabolic disorders as well as cardiovascular diseases. In the United States and Canada, EMD Serono operates as a separately incorporated subsidiary of Merck
Serono. 
 Merck Serono discovers, develops, manufactures and markets prescription medicines of both chemical and biological origin in specialist
indications. We have an enduring commitment to deliver novel therapies in our core focus areas of neurology, oncology, immuno-oncology and immunology. 

For more information, please visit www.merckserono.com. 
 All
Merck Press Releases are distributed by e-mail at the same time they become available on the Merck Website. Please go to www.merckgroup.com/subscribe to register online, change your selection or
discontinue this service. 

 Merck is a leading company for innovative and top-quality high-tech
products in the pharmaceutical and chemical sectors. With its four divisions Merck Serono, Consumer Health, Performance Materials and Merck Millipore, Merck generated total revenues of €11.1 billion in 2013. Around 39,000 Merck employees
work in 66 countries to improve the quality of life for patients, to further the success of customers and to help meet global challenges. Merck is the world’s oldest pharmaceutical and chemical company - since 1668, the company has stood for
innovation, business success and responsible entrepreneurship. Holding an approximately 70 percent interest, the founding family remains the majority owner of the company to this day. Merck, Darmstadt, Germany is holding the global rights to
the Merck name and brand. The only exceptions are Canada and the United States, where the company is known as EMD. 

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

 Amendment 1 to the License Agreement dated September 16, 2014 (the “Agreement”) 

 

			
	between:	    	 Sutro Biopharma Inc.
 310 Utah Ave, Suite
150
 South San Francisco, CA 94080
 USA

		
	and:	    	 Merck KGaA
 Frankfurter Strasse 250

64293 Darmstadt
 Germany

 The Parties have concluded the Agreement effective as of September 16, 2014. Capitalized terms used and not otherwise
defined in this Amendment No. 1 shall have the meanings set forth in the Agreement. The Parties herewith amend the Agreement as follows: 
  

	1.	 Section 2.5 shall be replaced as follows: “Availability of Targets. Merck may
designate up to six (6) Targets under this Agreement as follows: The [*] Target are the Named Targets set forth in the Collaboration Agreement. Merck may designate a [*] Additional Target as Accepted Targets in accordance with
Sections 2.5 and 2.6 within [*] months from the Effective Date (“Target Nomination Date”). Merck may designate a [*] Additional Target as Accepted Targets in accordance with Sections 2.5 and 2.6 at any time following the Target Nomination
Date until [*] months from the Effective Date at the latest. All such Additional Targets that become Accepted Targets will be set forth on Schedule 1.1. 

  

	2.	 In all other aspects the Agreement shall remain unchanged. 

 

			
	 South San Francisco,
 Sutro Biopharma

 
 /s/ William J. Newell

 
 William J. Newell

CEO
	  	 Darmstadt, August 26, 2015
 Merck KGaA

 
 /s/ i.V. Axel Hoffmann

Axel Hoffmann
 Director Alliance Management

Global Business Development &
 Alliance Management

Dr. Axel Hoffmann

		
		  	 /s/ i.V. Simone Heitz
  

Dr. S. Heitz
 Senior Corporate Counsel

  

					
		  	1/1	  	*Confidential Treatment Requested.Loan and Security Agreement

 EXHIBIT 10.14 

LOAN AND SECURITY AGREEMENT 

THIS LOAN AND SECURITY AGREEMENT (as the same may from time to time be amended, modified, supplemented or restated, this
“Agreement”) dated as of August 4, 2017 (the “Effective Date”) among OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314
(“Oxford”), as collateral agent (in such capacity, “Collateral Agent”), the Lenders listed on Schedule 1.1 hereof or otherwise a party hereto from time to time including Oxford in its
capacity as a Lender and SILICON VALLEY BANK, a California corporation with an office located at 3003 Tasman Drive, Santa Clara, CA 95054 (“Bank” or “SVB”) (each a “Lender” and collectively, the
“Lenders”), and SUTRO BIOPHARMA, INC., a Delaware corporation with offices located at 310 Utah Street, Suite 150, South San Francisco, CA 94080 (“Borrower”), provides the terms on which the Lenders shall lend to
Borrower and Borrower shall repay the Lenders. The parties agree as follows: 
  

	1.	ACCOUNTING AND OTHER TERMS 

 1.1 Accounting terms not defined in this
Agreement shall be construed in accordance with GAAP. Calculations and determinations must be made in accordance with GAAP, as applicable. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in
Section 13. All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. All references to “Dollars” or “$”
are United States Dollars, unless otherwise noted. 
  

	2.	LOANS AND TERMS OF PAYMENT 

 2.1 Promise to Pay. Borrower hereby
unconditionally promises to pay Collateral Agent (for the benefit of the Lenders), the outstanding principal amount of all Term Loans advanced to Borrower by each Lender and accrued and unpaid interest thereon and any other amounts due hereunder as
and when due in accordance with this Agreement. 
 2.2 Term Loan. 

(a) Availability. Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, to make term
loans to Borrower on the Effective Date in an aggregate amount of Fifteen Million Dollars ($15,000,000) according to each Lender’s Term Loan Commitment as set forth on Schedule 1.1 hereto (such term loans are
hereinafter referred to singly as a “Term Loan”, and collectively as the “Term Loans”). After repayment, no Term Loan may be re-borrowed. 

(b) Repayment. Borrower shall make monthly payments of interest only commencing on the first (1st) Payment Date following the Funding Date of the Term Loan, and continuing on the Payment Date of each successive month thereafter through and including the Payment Date immediately preceding the
Amortization Date. Borrower agrees to pay, on the Funding Date of the Term Loan, any initial partial monthly interest payment otherwise due for the period between the Funding Date of the Term Loan and the first Payment Date thereof. Commencing on
the Amortization Date, and continuing on the Payment Date of each month thereafter, Borrower shall make consecutive equal monthly payments of principal, together with applicable interest, in arrears, to Collateral Agent (for the benefit of the
Lenders), as calculated by Collateral Agent (which calculations shall be deemed correct absent manifest error) based upon: (1) the amount of such Lender’s Term Loan, (2) the effective rate of interest, as determined in
Section 2.3(a), and (3) a repayment schedule equal to thirty (30) months; provided, however, if the Amortization Date is extended upon completion of the Additional Capital Event, then such thirty (30) month period shall be
reduced to twenty-four (24) months. All unpaid principal and accrued and unpaid interest with respect to the Term Loan is due and payable in full on the Maturity Date. The Term Loan may only be prepaid in accordance with Sections
2.2(c) and 2.2(d). 
 (c) Mandatory Prepayments. If the Term Loans are accelerated following the occurrence of an Event of
Default, Borrower shall immediately pay to Collateral Agent (for the benefit of the Lenders), payable to Collateral Agent in accordance with each Lender’s respective Pro Rata Share, an amount equal to the sum of: (i) all outstanding
principal of the Term Loans plus accrued and unpaid interest thereon through the prepayment date, 

 
(ii) the Final Payment, (iii) the Prepayment Fee, plus (iv) all other Obligations that are due and payable, including Lenders’ Expenses and interest at the Default Rate with
respect to any past due amounts. Notwithstanding (but without duplication with) the foregoing, on the Maturity Date, if the Final Payment had not previously been paid in full in connection with the prepayment of the Term Loans in full, Borrower
shall pay to Collateral Agent, for payment to each Lender in accordance with its respective Pro Rata Share, the Final Payment in respect of the Term Loan(s). 

(d) Permitted Prepayment of Term Loans. Borrower shall have the option to prepay all, but not less than all, of the Term Loans advanced
by the Lenders under this Agreement, provided Borrower (i) provides written notice to Collateral Agent of its election to prepay the Term Loans at least thirty (30) days prior to such prepayment, and (ii) pays to the Lenders on the
date of such prepayment, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of (A) all outstanding principal of the Term Loans plus accrued and unpaid interest thereon through the prepayment
date, (B) the Final Payment, (C) the Prepayment Fee, plus (D) all other Obligations that are due and payable, including Lenders’ Expenses and interest at the Default Rate with respect to any past due amounts. 

2.3 Payment of Interest on the Credit Extensions. 

(a) Interest Rate. Subject to Section 2.3(b), the principal amount outstanding under the Term Loans shall accrue interest at a
floating per annum rate equal to the Basic Rate, determined by Collateral Agent on the Funding Date of the applicable Term Loan, which interest shall be payable monthly in arrears in accordance with Sections 2.2(b) and 2.3(e). Interest shall
accrue on each Term Loan commencing on, and including, the Funding Date of such Term Loan, and shall accrue on the principal amount outstanding under such Term Loan through and including the day on which such Term Loan is paid in full. 

(b) Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall accrue interest
at a floating per annum rate equal to the rate that is otherwise applicable thereto plus five percentage points (5.00%) (the “Default Rate”). Payment or acceptance of the increased interest rate provided in this
Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Collateral Agent. 

(c) 360-Day Year. Interest shall be computed on the basis of a three hundred sixty
(360) day year, and the actual number of days elapsed. 
 (d) Debit of Accounts. Collateral Agent and each Lender may debit (or
ACH) any deposit accounts, maintained by Borrower or any of its Subsidiaries, including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes the Lenders under the Loan Documents when due. Any such
debits (or ACH activity) shall not constitute a set-off. 
 (e) Payments. Except as otherwise
expressly provided herein, all payments by Borrower under the Loan Documents shall be made to Collateral Agent for the benefit of the respective Lender to which such payments are owed, at Collateral Agent’s office in immediately available funds
on the date specified herein. Unless otherwise provided, interest is payable monthly on the Payment Date of each month. Payments of principal and/or interest received after 3:00 PM Eastern time are considered received at the opening of business on
the next Business Day. When a payment is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or interest, as applicable, shall continue to accrue until paid. All payments to be made by Borrower
hereunder or under any other Loan Document, including payments of principal and interest, and all fees, expenses, indemnities and reimbursements, shall be made without set-off, recoupment or counterclaim, in
lawful money of the United States and in immediately available funds. 
 2.4 Secured Promissory Notes. The Term Loans shall be
evidenced by a Secured Promissory Note or Notes in the form attached as Exhibit D hereto (each a “Secured Promissory Note”), and shall be repayable as set forth in this Agreement. Borrower irrevocably
authorizes each Lender to make or cause to be made, on or about the Funding Date of any Term Loan or at the time of receipt of any payment of principal on such Lender’s Secured Promissory Note, an appropriate notation on such Lender’s
Secured Promissory Note Record reflecting the making of such Term Loan or (as the case may be) the receipt of such payment. The outstanding amount of each Term Loan 

  
 2 

 
set forth on such Lender’s Secured Promissory Note Record shall be prima facie evidence of the principal amount thereof owing and unpaid to such Lender, but the failure to record, or any
error in so recording, any such amount on such Lender’s Secured Promissory Note Record shall not limit or otherwise affect the obligations of Borrower under any Secured Promissory Note or any other Loan Document to make payments of principal of
or interest on any Secured Promissory Note when due. Upon receipt of an affidavit of an officer of a Lender as to the loss, theft, destruction, or mutilation of its Secured Promissory Note, Borrower shall issue, in lieu thereof, a replacement
Secured Promissory Note in the same principal amount thereof and of like tenor. 
 2.5 Fees. Borrower shall pay to Collateral
Agent: 
 (a) Final Payment. The Final Payment, when due hereunder, to be shared between the Lenders in accordance with their
respective Pro Rata Shares; 
 (b) Prepayment Fee. The Prepayment Fee, when due hereunder, to be shared between the Lenders in
accordance with their respective Pro Rata Shares; and 
 (c) Good Faith Deposit. An amount of Thirty-Five Thousand Dollars
($35,000) has been received by Collateral Agent as a good faith deposit from Borrower on or about November 2, 2016, and will be applied towards Lenders’ Expenses for the documentation and negotiation of this Agreement that are payable by
the Borrower pursuant to Section 2.5(d) hereof. For the purposes of clarity, Borrower shall be responsible for all Lender’s Expenses payable pursuant to Section 2.5(d) hereof. 

(d) Lenders’ Expenses. All out-of-pocket
Lenders’ Expenses (including reasonable attorneys’ fees and expenses for documentation and negotiation of this Agreement) incurred through and after the Effective Date, when due. 

2.6 Withholding. Payments received by the Lenders from Borrower hereunder will be made free and clear of and without deduction
for any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any governmental authority (including any interest, additions to tax or penalties applicable thereto).
Specifically, however, if at any time any Governmental Authority, applicable law, regulation or international agreement requires Borrower to make any withholding or deduction from any such payment or other sum payable hereunder to the Lenders,
Borrower hereby covenants and agrees that the amount due from Borrower with respect to such payment or other sum payable hereunder will be increased to the extent necessary to ensure that, after the making of such required withholding or deduction,
each Lender receives a net sum equal to the sum which it would have received had no withholding or deduction been required and Borrower shall pay the full amount withheld or deducted to the relevant Governmental Authority; provided, that Borrower
shall not be required to make such increased payment to a Lender who is not a United States Person (as defined in Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended) or who has not provided a duly executed original IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax. Borrower will, upon request, furnish the Lenders with proof reasonably satisfactory to the Lenders indicating that Borrower has
made such withholding payment; provided, however, that Borrower need not make any withholding payment if the amount or validity of such withholding payment is contested in good faith by appropriate and timely proceedings and as to which payment in
full is bonded or reserved against by Borrower. The agreements and obligations of Borrower contained in this Section 2.6 shall survive the termination of this Agreement. 
  

	3.	CONDITIONS OF LOANS 

 3.1 Conditions Precedent to Initial Credit
Extension. Each Lender’s obligation to make a Term Loan is subject to the condition precedent that Collateral Agent and each Lender shall consent to or shall have received, in form and substance satisfactory to Collateral Agent and
each Lender, such documents, and completion of such other matters, as Collateral Agent and each Lender may reasonably deem necessary or appropriate, including, without limitation: 

(a) original Loan Documents, each duly executed by Borrower and each Subsidiary, as applicable; 

  
 3 

 (b) duly executed original Control Agreements with respect to any Collateral Accounts maintained
by Borrower or any of its Subsidiaries; 
 (c) duly executed original Secured Promissory Notes in favor of each Lender according to its
Term Loan Commitment Percentage; 
 (d) [Reserved]; 

(e) the Operating Documents and good standing certificates of Borrower and its Subsidiaries certified by the Secretary of State (or equivalent
agency) of Borrower’s and such Subsidiaries’ jurisdiction of organization or formation and each jurisdiction in which Borrower and each Subsidiary is qualified to conduct business, each as of a date no earlier than thirty (30) days
prior to the Effective Date; 
 (f) a completed Perfection Certificate for Borrower and each of its Subsidiaries; 

(g) the Annual Projections, for the current calendar year; 

(h) duly executed original officer’s certificate for Borrower and each Subsidiary that is a party to the Loan Documents, in a form
acceptable to Collateral Agent and the Lenders; 
 (i) certified copies, dated as of date no earlier than thirty (30) days prior to the
Effective Date, of financing statement searches, as Collateral Agent shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted
Liens or have been or, in connection with the initial Credit Extension, will be terminated or released; 
 (j) to the extent requested by
the Lenders, a landlord’s consent executed in favor of Collateral Agent in respect of all of Borrower’s and each Subsidiaries’ leased locations; 

(k) a bailee waiver executed in favor of Collateral Agent in respect of each third party bailee where Borrower or any Subsidiary maintains
Collateral having a book value in excess of Two Hundred Fifty Thousand Dollars ($250,000.00); 
 (l) a duly executed legal opinion of
counsel to Borrower dated as of the Effective Date; 
 (m) evidence satisfactory to Collateral Agent and the Lenders that the insurance
policies required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing loss payable and/or additional insured clauses or endorsements in favor of Collateral Agent, for the ratable benefit of the
Lenders; 
 (n) a copy of any applicable Registration Rights Agreement or Investors’ Rights Agreement and any amendments thereto; 

(o) a copy of the Celgene Negative Pledge and Amendment Agreement; 

(p) a subordination agreement, duly executed by each holder of Subordinated Debt; and 

(q) payment of the fees and Lenders’ Expenses then due as specified in Section 2.5 hereof. 

3.2 Conditions Precedent to all Credit Extensions. The obligation of each Lender to make each Credit Extension, including the
initial Credit Extension, is subject to the following conditions precedent: 
 (a) receipt by (i) the Lenders of an executed
Disbursement Letter in the form of Exhibit B-1 attached hereto; and (ii) SVB of an executed Loan Payment/Advance Request Form in the form of
Exhibit B-2 attached hereto; 

  
 4 

 (b) the representations and warranties in Section 5 hereof shall be true, accurate and
complete in all material respects on the date of the Disbursement Letter (and the Loan Payment/Advance Request Form) and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in
all material respects as of such date, and no Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and
warranties in Section 5 hereof are true, accurate and complete in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by
materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; 

(c) in such Lender’s sole but reasonable discretion, there has not been any Material Adverse Change; 

(d) to the extent not delivered at the Effective Date, (i) duly executed original Secured Promissory Notes in the form attached hereto as
Exhibit D in favor of each Lender according to its Commitment Percentage, with respect to each Credit Extension made by such Lender after the Effective Date and (ii) Warrants, in number, form and content acceptable to each Lender, and in
favor of each Lender to purchase a certain number of shares of the Preferred Stock (as defined in the Warrant) as set forth therein; and 

(e) payment of the fees and Lenders’ Expenses then due as specified in Section 2.5 hereof. 

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

3.4 Procedures for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the making of a Term Loan
set forth in this Agreement, to obtain a Term Loan, Borrower shall notify the Lenders (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 3:00 PM Eastern time five (5) Business Days prior to the date the Term Loan
is to be made. Together with any such electronic, facsimile or telephonic notification, Borrower shall deliver to the Lenders by electronic mail or facsimile a completed Disbursement Letter (and the Loan Payment/Advance Request Form, with respect to
SVB) executed by a Responsible Officer or his or her designee. The Lenders may rely on any telephone notice given by a person whom a Lender reasonably believes is a Responsible Officer or designee. On the Funding Date, each Lender shall credit
and/or transfer (as applicable) to the Designated Deposit Account, an amount equal to its Term Loan Commitment. 
  

	4.	CREATION OF SECURITY INTEREST 

 4.1 Grant of Security Interest.
Borrower hereby grants Collateral Agent, for the ratable benefit of the Lenders, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Collateral Agent, for the ratable benefit of
the Lenders, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all
times continue to be a first priority perfected security interest in the Collateral, subject only to Permitted Liens that are permitted by the terms of this Agreement to have priority to Collateral Agent’s Lien. If Borrower shall acquire a
commercial tort claim (as defined in the Code), Borrower, shall promptly notify Collateral Agent in a writing signed by Borrower, as the case may be, of the general details thereof (and further details as may be required by Collateral Agent) and
grant to Collateral Agent, for the ratable benefit of the Lenders, in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory
to Collateral Agent. 

  
 5 

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

If this Agreement is terminated, Collateral Agent’s Lien in the Collateral shall continue until the Obligations (other than inchoate
indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations (other than inchoate indemnity obligations) and at such time as the Lenders’ obligation to make Credit Extensions has terminated, Collateral
Agent shall, at the sole cost and expense of Borrower, release its Liens in the Collateral (including by filing any appropriate termination statements and executing such other documents reasonably requested by Borrower, and at the sole cost and
expense of Borrower, to effect and/or evidence the termination of its Liens in the Collateral) and all rights therein shall revert to Borrower. In the event (x) all Obligations (other than inchoate indemnity obligations), except for Bank
Services, are satisfied in full, and (y) this Agreement is terminated, Collateral Agent shall terminate the security interest granted herein upon Borrower providing cash collateral acceptable to Bank in its good faith business judgment for Bank
Services, if any. In the event such Bank Services consist of outstanding Letters of Credit, it shall be sufficient cash collateral acceptable to Bank for securing such Bank Services in applying the provisions of clause (y) with respect to Bank
Services that consist of Letters of Credit, if Borrower provides, to Bank cash collateral in an amount equal to (x) if such Letters of Credit are denominated in Dollars, then one hundred five percent (105%); and (y) if such Letters of
Credit are denominated in a Foreign Currency, then one hundred ten percent (110%), of the Dollar Equivalent of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith (as
estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such Letters of Credit. 
 4.2
Authorization to File Financing Statements. Borrower hereby authorizes Collateral Agent to file financing statements or take any other action required to perfect Collateral Agent’s security interests in the Collateral, without notice to
Borrower, with all appropriate jurisdictions to perfect or protect Collateral Agent’s interest or rights under the Loan Documents, including a notice that any disposition of the Collateral, except to the extent permitted by the terms of this
Agreement, by Borrower, or any other Person, shall be deemed to violate the rights of Collateral Agent under the Code. 
 4.3
Pledge of Collateral. Borrower hereby pledges, assigns and grants to Collateral Agent, for the ratable benefit of the Lenders, a security interest in all the Shares, together with all proceeds and substitutions thereof, all cash, stock and
other moneys and property paid thereon, all rights to subscribe for securities declared or granted in connection therewith, and all other cash and noncash proceeds of the foregoing, as security for the performance of the Obligations. On the
Effective Date, or, to the extent not certificated as of the Effective Date, within ten (10) days of the certification of any Shares, the certificate or certificates for the Shares will be delivered to Collateral Agent, accompanied by an
instrument of assignment duly executed in blank by Borrower. To the extent required by the terms and conditions governing the Shares, Borrower shall cause the books of each entity whose Shares are part of the Collateral and any transfer agent to
reflect the pledge of the Shares. Upon the occurrence and during the continuance of an Event of Default hereunder, Collateral Agent may effect the transfer of any securities included in the Collateral (including but not limited to the Shares) into
the name of Collateral Agent and cause new (as applicable) certificates representing such securities to be issued in the name of Collateral Agent or its transferee. Borrower will execute and deliver such documents, and take or cause to be taken such
actions, as Collateral Agent may reasonably request to perfect or continue the perfection of Collateral Agent’s security interest in the Shares. Unless an Event of Default shall have occurred and be continuing, Borrower shall be entitled to
exercise any voting rights with respect to the Shares and to give consents, waivers and ratifications in respect thereof, provided that no vote shall be cast or consent, waiver or ratification given or action taken which would be inconsistent with
any of the terms of this Agreement or which would constitute or create any violation of any of such terms. All such rights to vote and give consents, waivers and ratifications shall terminate upon the occurrence and continuance of an Event of
Default. 

  
 6 

	5.	REPRESENTATIONS AND WARRANTIES 

 Borrower represents and warrants to Collateral
Agent and the Lenders as follows: 
 5.1 Due Organization, Authorization: Power and Authority. Borrower and each of its
Subsidiaries is duly existing and in good standing as a Registered Organization in its jurisdictions of organization or formation and Borrower and each of its Subsidiaries is qualified and licensed to do business and is in good standing in any
jurisdiction in which the conduct of its businesses or its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to have a Material Adverse Change. In connection with this Agreement,
Borrower and each of its Subsidiaries has delivered to Collateral Agent a completed perfection certificate signed by an officer of Borrower or such Subsidiary (each a “Perfection Certificate” and collectively, the
“Perfection Certificates”). Borrower represents and warrants that as of the Effective Date (a) Borrower and each of its Subsidiaries’ exact legal name is that which is indicated on its respective Perfection Certificate and
on the signature page of each Loan Document to which it is a party; (b) Borrower and each of its Subsidiaries is an organization of the type and is organized in the jurisdiction set forth on its respective Perfection Certificate; (c) each
Perfection Certificate accurately sets forth each of Borrower’s and its Subsidiaries’ organizational identification number or accurately states that Borrower or such Subsidiary has none; (d) each Perfection Certificate accurately sets
forth Borrower’s and each of its Subsidiaries’ place of business, or, if more than one, its chief executive office as well as Borrower’s and each of its Subsidiaries’ mailing address (if different than its chief executive
office); (e) Borrower and each of its Subsidiaries (and each of its respective predecessors) have not, in the past five (5) years, changed its jurisdiction of organization, organizational structure or type, or any organizational number
assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificates pertaining to Borrower and each of its Subsidiaries, is accurate and complete as of the Effective Date and as of any date that such Perfection
Certificates may be updated after the Effective Date to the extent permitted by one or more specific provisions in this Agreement; such updated Perfection Certificates subject to the review and approval of Collateral Agent. If Borrower or any of its Subsidiaries is not now a Registered Organization but later becomes one, Borrower shall notify Collateral Agent of such occurrence and provide Collateral Agent with such
Person’s organizational identification number within five (5) Business Days of receiving such organizational identification number. 

The execution, delivery and performance by Borrower and each of its Subsidiaries of the Loan Documents to which it is a party have been duly
authorized, and do not (i) conflict with any of Borrower’s or such Subsidiaries’ organizational documents, including its respective Operating Documents, (ii) contravene, conflict with, constitute a default under or violate any
material Requirement of Law applicable thereto, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or such Subsidiary, or any of
their property or assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been
obtained and are in full force and effect) or are being obtained pursuant to Section 6.1(b), or (v) constitute an event of default under any material agreement by which Borrower or any of such Subsidiaries, or their respective properties,
is bound. Neither Borrower nor any of its Subsidiaries is in default under any agreement to which it is a party or by which it or any of its assets is bound in which such default could reasonably be expected to have a Material Adverse Change. 

5.2 Collateral. 
 (a)
Borrower and each of its Subsidiaries have good title to, have rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien under the Loan Documents, free and clear of any and all Liens except Permitted
Liens, and neither Borrower nor any of its Subsidiaries have any Deposit Accounts, Securities Accounts, Commodity Accounts or other investment accounts other than the Collateral Accounts or the other investment accounts, if any, described in the
Perfection Certificates delivered to Collateral Agent in connection herewith with respect of which Borrower or such Subsidiary has given Collateral Agent notice and taken such actions as are necessary to give Collateral Agent a perfected security
interest therein. The Accounts are bona fide, existing obligations of the Account Debtors. 
 (b) On the Effective Date, and except as
disclosed on the Perfection Certificate (i) the Collateral is not in the possession of any third party bailee (such as a warehouse), and (ii) no such third party bailee possesses components of the Collateral in excess of Two Hundred Fifty
Thousand Dollars ($250,000.00). None of the components of the Collateral shall be maintained at locations other than as disclosed in the Perfection Certificates on the Effective Date or as permitted pursuant to Section 6.11. 

  
 7 

 (c) All Inventory is in all material respects of good and marketable quality, free from material
defects. 
 (d) Borrower and each of its Subsidiaries is the sole owner of the Intellectual Property each respectively purports to own, free
and clear of all Liens other than Permitted Liens. Except as noted on the Perfection Certificates or otherwise notified to Collateral Agent in writing after the Effective Date, neither Borrower nor any of its Subsidiaries is a party to, nor is bound
by, any material license or other material agreement with respect to which Borrower or such Subsidiary is the licensee that (i) prohibits or otherwise restricts Borrower or its Subsidiaries from granting a security interest in Borrower’s
or such Subsidiaries’ interest in such material license or material agreement or any other property, or (ii) for which a default under or termination of could interfere with Collateral Agent’s or any Lender’s right to sell any
Collateral. Borrower shall provide written notice to Collateral Agent and each Lender within ten (10) Business Days of Borrower or any of its Subsidiaries entering into or becoming bound by any material license or other material agreement with
respect to which Borrower or any Subsidiary is the licensee (other than over-the-counter software that is commercially available to the public). 

5.3 Litigation. Except as disclosed (i) on the Perfection Certificates, or (ii) in accordance with Section 6.9
hereof, there are no actions, suits, investigations, or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by or against Borrower or any of its Subsidiaries involving more than Two Hundred Fifty Thousand
Dollars ($250,000.00). 
 5.4 No Material Deterioration in Financial Condition; Financial Statements. All consolidated
financial statements for Borrower and its Subsidiaries, delivered to Collateral Agent fairly present, in conformity with GAAP, as applicable, in all material respects the consolidated financial condition of Borrower and its Subsidiaries, and the
consolidated results of operations of Borrower and its Subsidiaries. There has not been any material deterioration in the consolidated financial condition of Borrower and its Subsidiaries since the date of the most recent financial statements
submitted to any Lender. 
 5.5 Solvency. Borrower is, and Borrower and each of its Subsidiaries, taken as a whole, are,
Solvent. 
 5.6 Regulatory Compliance. Neither Borrower nor any of its Subsidiaries is an “investment company” or a
company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended. Neither Borrower nor any of its Subsidiaries is engaged as one of its important activities in extending credit for margin stock
(under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower and each of its Subsidiaries has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a
“holding company” or an “affiliate” of a “holding company” or a “subsidiary company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Neither
Borrower nor any of its Subsidiaries has violated any laws, ordinances or rules, the violation of which could reasonably be expected to have a Material Adverse Change. Neither Borrower’s nor any of its Subsidiaries’ properties or assets
has been used by Borrower or such Subsidiary or, to Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than in material compliance with applicable laws. Borrower
and each of its Subsidiaries has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Governmental Authorities that are necessary to continue their respective businesses as
currently conducted. 
 None of Borrower, any of its Subsidiaries, or any of Borrower’s or its Subsidiaries’ Affiliates or any of
their respective agents acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement is (i) in violation of any Anti-Terrorism Law, (ii) engaging in or
conspiring to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law, or (iii) is a
Blocked Person. None of Borrower, any of its Subsidiaries, or to the knowledge of Borrower and any of their Affiliates or agents, acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement,
(x) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Blocked Person, or (y) deals in, or otherwise engages in any transaction relating to, any property or
interest in property blocked pursuant to Executive Order No. 13224, any similar executive order or other Anti-Terrorism Law. 

  
 8 

 5.7 Investments. Neither Borrower nor any of its Subsidiaries owns any stock,
shares, partnership interests or other equity securities except for Permitted Investments. 
 5.8 Tax Returns and Payments;
Pension Contributions. Borrower and each of its Subsidiaries has timely filed all required tax returns and reports, and Borrower and each of its Subsidiaries, has timely paid all foreign, federal, state, and local taxes, assessments, deposits
and contributions owed by Borrower and such Subsidiaries, in all jurisdictions in which Borrower or any such Subsidiary is subject to taxes, including the United States, unless such taxes are being contested in accordance with the following sentence
or unless such unpaid state and/or local taxes do not exceed $25,000 in the aggregate. Borrower and each of its Subsidiaries, may defer payment of any contested taxes, provided that Borrower or such Subsidiary, (a) in good faith contests its
obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Collateral Agent in writing of the commencement of, and any material development in, the proceedings, and (c) posts bonds
or takes any other steps required to prevent the Governmental Authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien.” Neither Borrower nor any of its
Subsidiaries is aware of any claims or adjustments proposed for any of Borrower’s or such Subsidiaries’, prior tax years which could result in additional taxes becoming due and payable by Borrower or its Subsidiaries. Borrower and each of
its Subsidiaries have paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and neither Borrower nor any of its Subsidiaries have, withdrawn from participation in, and
have not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower or its Subsidiaries, including any
liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority. 
 5.9 Use of
Proceeds. Borrower shall use the proceeds of the Credit Extensions solely as working capital and to fund its general business requirements in accordance with the provisions of this Agreement, and not for personal, family, household or
agricultural purposes. 
 5.10 Shares. Borrower has full power and authority to create a first lien on the Shares and no
disability or contractual obligation exists that would prohibit Borrower from pledging the Shares pursuant to this Agreement. To Borrower’s knowledge, there are no subscriptions, warrants, rights of first refusal or other restrictions on
transfer relative to, or options exercisable with respect to the Shares. The Shares have been and will be duly authorized and validly issued, and are fully paid and non-assessable. To Borrower’s
knowledge, the Shares are not the subject of any present or threatened suit, action, arbitration, administrative or other proceeding, and Borrower knows of no reasonable grounds for the institution of any such proceedings. 

5.11 Full Disclosure. No written representation, warranty or other statement of Borrower or any of its Subsidiaries in any
certificate or written statement given to Collateral Agent or any Lender in connection with the transactions contemplated hereby, as of the date such representation, warranty, or other statement was made, taken together with all such written
certificates and written statements given to Collateral Agent or any Lender with respect to the transactions contemplated hereby, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements
contained in the certificates or statements not misleading (it being recognized that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the
period or periods covered by such projections and forecasts may differ from the projected or forecasted results).  
 5.12
Definition of “Knowledge.” For purposes of the Loan Documents, whenever a representation or warranty is made to Borrower’s knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar
qualification, knowledge or awareness means the actual knowledge, after reasonable investigation, of the Responsible Officers. 

  
 9 

	6.	AFFIRMATIVE COVENANTS 

 Borrower shall, and shall cause each of its Subsidiaries
to, do all of the following: 
 6.1 Government Compliance. 

(a) Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of organization and
maintain qualification in each jurisdiction in which the failure to so qualify could reasonably be expected to have a Material Adverse Change. Comply with all laws, ordinances and regulations to which Borrower or any of its Subsidiaries is subject,
the noncompliance with which could reasonably be expected to have a Material Adverse Change. 
 (b) Obtain and keep in full force and
effect, all of the material Governmental Approvals necessary for the performance by Borrower and its Subsidiaries of their respective businesses and obligations under the Loan Documents and the grant of a security interest to Collateral Agent for
the ratable benefit of the Lenders, in all of the Collateral. Borrower shall promptly provide copies to Collateral Agent of any material Governmental Approvals obtained by Borrower or any of its Subsidiaries. 

6.2 Financial Statements, Reports, Certificates. 

(a) Deliver to each Lender: 
 (i)
as soon as available, but no later than thirty (30) days after the last day of each month, a company prepared consolidated and consolidating balance sheet, income statement and cash flow statement covering the consolidated operations of
Borrower and its Subsidiaries for such month certified by a Responsible Officer as being fairly stated in all material respects (subject to normal year-end GAAP and audit adjustments and the absence of
footnotes) and in a form reasonably acceptable to Collateral Agent; 
 (ii) as soon as available, but no later than two hundred ten
(210) days after the last day of Borrower’s fiscal year (and three hundred sixty-five (365) days after the last day of Borrower’s fiscal year ending December 31, 2016) or within five (5) days of filing with the SEC,
audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion (other than a going-concern qualification typical for venture backed companies similar to Borrower) on the financial statements
from an independent certified public accounting firm; 
 (iii) as soon as available after approval thereof by Borrower’s Board of
Directors, but no later than thirty (30) days after the last day of each of Borrower’s fiscal years, Borrower’s annual financial projections for the entire current fiscal year as approved by Borrower’s Board of Directors,
which such annual financial projections shall be set forth in a month-by-month format (such annual financial projections delivered under this Section 6.3(a)(iii) to
Collateral Agent and the Lenders are referred to herein as the “Annual Projections”; provided that, any revisions of the Annual Projections approved by Borrower’s Board of Directors shall be delivered to Collateral Agent and
the Lenders no later than seven (7) days after such approval); 
 (iv) within five (5) days of delivery, copies of all
statements, reports and notices made available to Borrower’s security holders or holders of Subordinated Debt; 
 (v) in the event
(and during the period) that Borrower becomes subject to the reporting requirements under the Securities Exchange Act of 1934, as amended, within five (5) days of filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission, 

(vi) Borrower shall prompt notice of any material amendments of or other material changes to the capitalization table of Borrower and any
amendments of or other changes to the Operating Documents of Borrower or any of its Subsidiaries, together with any copies reflecting such amendments or changes with respect thereto; 

  
 10 

 (vii) prompt notice of any event (other than with respect to any third party) that could
reasonably be expected to materially and adversely affect the value of the Intellectual Property; 
 (viii) as soon as available, but no
later than thirty (30) days after the last day of each month, copies of the month-end account statements for each Collateral Account maintained by Borrower or its Subsidiaries, which statements may be
provided to Collateral Agent and each Lender by Borrower or directly from the applicable institution(s), and 
 (ix) other information as
reasonably requested by Collateral Agent or any Lender. 
 Notwithstanding the foregoing, documents required to be delivered pursuant to the terms hereof
(to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which Borrower posts such documents, or provides a
link thereto, on Borrower’s website on the internet at Borrower’s website address. 
 (b) Concurrently with the delivery of the
financial statements specified in Section 6.2(a)(i) above but no later than thirty (30) days after the last day of each month, deliver to each Lender, a duly completed Compliance Certificate signed by a Responsible Officer. 

(c) Keep proper books of record and account in accordance with GAAP in all material respects (except for interim and unaudited financial
statements), in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities. Borrower shall, and shall cause each of its Subsidiaries to, allow, at the sole cost of Borrower,
Collateral Agent or any Lender, during regular business hours upon reasonable prior notice (provided that no notice shall be required when an Event of Default has occurred and is continuing), to visit and inspect any of its properties, to examine
and make abstracts or copies from any of its books and records, and to conduct a collateral audit and analysis of its operations and the Collateral. Such audits shall be conducted no more often than twice every year unless (and more frequently if)
an Event of Default has occurred and is continuing. 
 6.3 Inventory; Returns. Keep all Inventory in good and marketable
condition, free from material defects. Returns and allowances between Borrower, or any of its Subsidiaries, and their respective Account Debtors shall follow Borrower’s, or such Subsidiary’s, customary practices as they exist at the
Effective Date. Borrower must promptly notify Collateral Agent and the Lenders of all returns, recoveries, disputes and claims that involve more than Two Hundred Fifty Thousand Dollars ($250,000.00) individually or in the aggregate in any calendar
year. 
 6.4 Taxes; Pensions. Timely file and require each of its Subsidiaries to timely file, all required tax returns and
reports and timely pay, and require each of its Subsidiaries to timely file, all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower or its Subsidiaries, except for deferred payment of any taxes
contested pursuant to the terms of Section 5.8 hereof, and shall deliver to Lenders, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred
compensation plans in accordance with the terms of such plans. 
 6.5 Insurance. Keep Borrower’s and its
Subsidiaries’ business and the Collateral insured for risks and in amounts standard for companies in Borrower’s and its Subsidiaries’ industry and location and as Collateral Agent may reasonably request. Insurance policies shall be in
a form, with companies, and in amounts that are reasonably satisfactory to Collateral Agent and Lenders. All property policies shall have a lender’s loss payable endorsement showing Collateral Agent as lender loss payee and waive subrogation
against Collateral Agent, and all liability policies shall show, or have endorsements showing, Collateral Agent, as additional insured. The Collateral Agent shall be named as lender loss payee and/or additional insured with respect to any such
insurance providing coverage in respect of any Collateral, and each provider of any such insurance agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to the Collateral Agent, that it will give the
Collateral Agent thirty (30) days prior written notice before any such policy or policies shall be materially altered or canceled; provide that in the event that any provider of any such insurance refuses to give the Collateral Agent thirty
(30) days prior written notice before any such policy or policies shall be materially altered or canceled, then Borrower shall (i) give the Collateral Agent twenty (20) days prior written notice before Borrower initiates any material
alteration or cancels any such policy or policies, and (ii) immediately give the Collateral Agent written 

  
 11 

 
notice upon obtaining knowledge that any such policy or policies shall be materially altered or canceled by a provider of any such insurance. At Collateral Agent’s request, Borrower shall
deliver certified copies of policies and evidence of all premium payments. Proceeds payable under any policy shall, at Collateral Agent’s option, be payable to Collateral Agent, for the ratable benefit of the Lenders, on account of the
Obligations. Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and is continuing, Borrower shall have the option of applying the proceeds of any casualty policy up to Two Hundred Fifty Thousand Dollars ($250,000.00)
with respect to any loss, but not exceeding Five Hundred Thousand Dollars ($500,000.00), in the aggregate for all losses under all casualty policies in any one year, toward the replacement or repair of destroyed or damaged property; provided that
any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Collateral Agent has been granted a first priority security interest, and
(b) after the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Collateral Agent, be payable to Collateral Agent, for the ratable benefit of the Lenders, on
account of the Obligations. If Borrower or any of its Subsidiaries fails to obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required proof of payment to third persons, Collateral Agent and/or any Lender
may make, at Borrower’s expense, all or part of such payment or obtain such insurance policies required in this Section 6.5, and take any action under the policies Collateral Agent or such Lender deems prudent.  
 6.6 Operating Accounts. 

(a) Maintain all of Borrower’s and its Subsidiaries’ Collateral Accounts with Bank or its Affiliates in accounts which are subject to
a Control Agreement in favor of Collateral Agent. 
 (b) Borrower shall provide Collateral Agent five (5) days’ prior written
notice before Borrower or any of its Subsidiaries establishes any Collateral Account at or with any Person other than Bank or its Affiliates. In addition, subject to the terms of the Post Closing Letter for each Collateral Account that Borrower or
any of its Subsidiaries, at any time maintains, Borrower or such Subsidiary shall cause the applicable bank or financial institution at or with which such Collateral Account is maintained to execute and deliver a Control Agreement or other
appropriate instrument with respect to such Collateral Account to perfect Collateral Agent’s Lien in such Collateral Account in accordance with the terms hereunder prior to the establishment of such Collateral Account, which Control Agreement
may not be terminated without prior written consent of Collateral Agent. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for
the benefit of Borrower’s, or any of its Subsidiaries’, employees and identified to Collateral Agent by Borrower as such in the Perfection Certificates as may be updated after the Effective Date subject to the review and approval of
Collateral Agent. 
 (c) Neither Borrower nor any of its Subsidiaries shall maintain any Collateral Accounts except Collateral Accounts
maintained in accordance with Sections 6.6(a) and (b). 
 6.7 Protection of Intellectual Property Rights. Borrower and
each of its Subsidiaries shall: (a) use commercially reasonable efforts consistent with current business practices to protect, defend and maintain the validity and enforceability of its Intellectual Property that is material to Borrower’s
business; (b) promptly after Borrower becomes aware thereof advise Collateral Agent in writing of material infringement by a third party of its Intellectual Property that is material to Borrower’s business; and (c) not allow any
Intellectual Property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Collateral Agent’s prior written consent, provided, however, Borrower may abandon, modify or delay filing, prosecution or
issuance of any immaterial Intellectual Property without Collateral Agent’s prior written consent if Borrower determines in its reasonable discretion that further prosecution of such application is not commercially reasonable, and provides
Collateral Agent with prompt written notice of the same. 
 6.8 Litigation Cooperation. Commencing on the Effective Date and
continuing through the termination of this Agreement, make available to Collateral Agent and the Lenders, without expense to Collateral Agent or the Lenders at reasonable times and with reasonable advance notice, Borrower and each of Borrower’s
officers, employees and agents and Borrower’s Books, to the extent that Collateral Agent or any Lender may reasonably deem them necessary to prosecute or defend any third-party suit or proceeding
instituted by or against Collateral Agent or any Lender with respect to any Collateral or relating to Borrower. In such event, Collateral Agent and the Lenders shall work cooperatively with Borrower to minimize disruption, to the extent reasonably
possible, of Borrower’s ongoing operations. 

  
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 6.9 Notices of Litigation and Default. Borrower will give prompt written notice to
Collateral Agent and the Lenders of any litigation or governmental proceedings pending or threatened (in writing) against Borrower or any of its Subsidiaries, which could reasonably be expected to result in damages or costs to Borrower or any of its
Subsidiaries of Two Hundred Fifty Thousand Dollars ($250,000.00) or more or which could reasonably be expected to have a Material Adverse Change. Without limiting or contradicting any other more specific provision of this Agreement, promptly (and in
any event within three (3) Business Days) upon Borrower becoming aware of the existence of any Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default, Borrower shall give
written notice to Collateral Agent and the Lenders of such occurrence, which such notice shall include a reasonably detailed description of such Event of Default or event which, with the giving of notice or passage of time, or both, would constitute
an Event of Default. 
 6.10 Financial Covenant. For so long as the Celgene Negative Pledge and Amendment Agreement remains in
effect, Borrower shall maintain at all times a minimum aggregate available cash balance of Seven Million Five Hundred Thousand Dollars ($7,500,000) in Collateral Accounts (excluding any restricted accounts) with Bank or its Affiliates which are
subject to Control Agreements in favor of Collateral Agent. 
 6.11 Landlord Waivers; Bailee Waivers. In the event that
Borrower or any of its Subsidiaries, after the Effective Date, intends to add any new offices or business locations, including warehouses, or otherwise store any portion of the Collateral with, or deliver any portion of the Collateral to, a bailee,
in each case pursuant to Section 7.2, then Borrower or such Subsidiary will first receive the written consent of Collateral Agent (unless the new location is not the chief executive office of Borrower or such Subsidiary or the Collateral at
such new location is not valued in excess of Two Hundred Fifty Thousand ($250,000.00) in the aggregate, and then Borrower or such Subsidiary shall only be required to provide Collateral Agent with written notice of such new location with thirty
(30) days of the addition of such new location as an office or business location) and, in the event that the new location is the chief executive office of Borrower or such Subsidiary or the Collateral at any such new location is valued in
excess of Two Hundred Fifty Thousand ($250,000.00) in the aggregate, such bailee or landlord, as applicable, must execute and deliver a bailee waiver or landlord waiver, as applicable, in form and substance reasonably satisfactory to Collateral
Agent prior to the addition of any new offices or business locations, or any such storage with or delivery to any such bailee, as the case may be. 

6.12 Creation/Acquisition of Subsidiaries. In the event Borrower, or any of its Subsidiaries creates or acquires any Subsidiary,
Borrower shall provide prior written notice to Collateral Agent and each Lender of the creation or acquisition of such new Subsidiary and take all such action as may be reasonably required by Collateral Agent or any Lender to cause each such
Subsidiary to become a co-Borrower hereunder or to guarantee the Obligations of Borrower under the Loan Documents and, in each case, grant a continuing pledge and security interest in and to the assets of such
Subsidiary (substantially as described on Exhibit A hereto); and Borrower (or its Subsidiary, as applicable) shall grant and pledge to Collateral Agent, for the ratable benefit of the Lenders, a perfected security interest
in the Shares of each such newly created Subsidiary; provided, however, that solely in the circumstance in which Borrower or any Subsidiary creates or acquires a Foreign Subsidiary in an acquisition permitted by Section 7.7 hereof or otherwise
approved by the Required Lenders, (i) such Foreign Subsidiary shall not be required to become a co-Borrower hereunder, guarantee the Obligations of Borrower under the Loan Documents and grant a continuing
pledge and security interest in and to the assets of such Foreign Subsidiary, and (ii) Borrower shall not be required to grant and pledge to Collateral Agent, for the ratable benefit of Lenders, a perfected security interest in more than sixty-five percent (65%) of the Shares of such Foreign Subsidiary, if Borrower demonstrates to the reasonable satisfaction of Collateral Agent that such Foreign Subsidiary providing such guarantee or pledge and
security interest or Borrower providing a perfected security interest in more than sixty-five percent (65%) of the Shares would create a present and existing adverse tax consequence to Borrower under the U.S.
Internal Revenue Code. 

  
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 6.13 Further Assurances. 

(a) Execute any further instruments and take further action as Collateral Agent or any Lender reasonably requests to perfect or continue
Collateral Agent’s Lien in the Collateral or to effect the purposes of this Agreement. 
 (b) Deliver to Collateral Agent and Lenders,
within five (5) days after the same are sent or received, copies of all material correspondence, reports, documents and other filings with any Governmental Authority that could reasonably be expected to have a material adverse effect on any of
the Governmental Approvals material to Borrower’s business or otherwise could reasonably be expected to have a Material Adverse Change. 
  

	7.	NEGATIVE COVENANTS 

 Borrower shall not, and shall not permit any of its
Subsidiaries to, do any of the following without the prior written consent of the Required Lenders: 
 7.1 Dispositions.
Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the
ordinary course of business; (b) of worn out or obsolete Equipment; (c) of property by the Borrower to a Subsidiary that is a Guarantor; (d) in connection with Permitted Assignments, Permitted Liens, Permitted Investments
and Permitted Licenses; and (e) Transfers in the ordinary course of business of Borrower, or its Subsidiaries, in addition to those specifically enumerated above, to the extent the same are specifically reflected in the Annual Projections
and not otherwise prohibited by the terms of this Agreement or any other Loan Document. 
 7.2 Changes in Business, Management,
Ownership, or Business Locations. (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses engaged in by Borrower as of the Effective Date or reasonably related thereto; (b) liquidate
or dissolve; or (c) (i) any Key Person shall cease to be actively engaged in the management of Borrower unless written notice thereof is provided to Collateral Agent within five (5) Business Days of such change, or (ii) enter
into any transaction or series of related transactions in which the stockholders of Borrower who were not stockholders immediately prior to the first such transaction own more than forty nine percent (49%) of the voting stock of Borrower immediately
after giving effect to such transaction or related series of such transactions (other than by the sale of Borrower’s equity securities in a public offering, a private placement of public equity or to venture capital investors so long as
Borrower identifies to Collateral Agent the venture capital investors prior to the closing of the transaction). Borrower shall not, without at least thirty (30) days’ prior written notice to Collateral Agent: (A) add any new offices
or business locations, including warehouses (unless such new offices or business locations (i) contain less than Two Hundred Fifty Thousand Dollars ($250,000.00) in assets or property of Borrower or any of its Subsidiaries and (ii) are not
Borrower’s or its Subsidiaries’ chief executive office); (B) change its jurisdiction of organization, (C) change its organizational structure or type, (D) change its legal name, or (E) change any organizational number (if
any) assigned by its jurisdiction of organization. 
 7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its
Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock, shares or property of another Person. A Subsidiary may merge or consolidate into
another Subsidiary (provided such surviving Subsidiary is a “co-Borrower” hereunder or has provided a secured Guaranty of Borrower’s Obligations hereunder) or with (or into) Borrower provided
Borrower is the surviving legal entity, and as long as no Event of Default is occurring prior thereto or arises as a result therefrom. Without limiting the foregoing, Borrower shall not, without Collateral Agent’s prior written consent, enter
into any binding contractual arrangement with any Person to attempt to facilitate a merger or acquisition of Borrower, unless (i) no Event of Default exists when such agreement is entered into by Borrower, (ii) such agreement does not give
such Person the right to claim any fees, payments or damages from Borrower in excess of Two Hundred Fifty Thousand Dollars ($250,000.00), and (iii) Borrower notifies Collateral Agent in advance of entering into such an agreement. 

7.4 Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than
Permitted Indebtedness. 

  
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 7.5 Encumbrance. Create, incur, allow, or suffer any Lien on any of its property,
or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted
herein (except for Permitted Liens that are permitted by the terms of this Agreement to have priority over Collateral Agent’s Lien), or enter into any agreement, document, instrument or other arrangement (except with or in favor of Collateral
Agent, for the ratable benefit of the Lenders) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower, or any of its Subsidiaries, from assigning, mortgaging, pledging, granting a security interest in or
upon, or encumbering any of Borrower’s or such Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Liens” herein or in the Celgene Negative
Pledge and Amendment Agreement. 
 7.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to
the terms of Section 6.6 hereof. 
 7.7 Distributions; Investments. (a) Pay any dividends (other than dividends
payable solely in capital stock) or make any distribution or payment in respect of or redeem, retire or purchase any capital stock (other than repurchases (x) made pursuant to the terms of employee stock purchase plans, employee restricted
stock agreements, stockholder rights plans, director or consultant stock option plans, or similar plans, provided such repurchases do not exceed One Two Hundred Fifty Thousand Dollars ($250,000.00) in the aggregate per fiscal year, (y) that are
deemed to occur upon exercise of stock options or warrants if such equity interests represents a portion of the exercise price or such options or warrants, or (z) that are deemed to occur upon the withholding of a portion of the equity
interests granted or awarded to a current or former officer, director, employee or consultant to pay for the taxes payable by such Person upon such grant or award (or upon vesting thereof), or (b) directly or indirectly make any Investment
other than Permitted Investments, or permit any of its Subsidiaries to do so. 
 7.8 Transactions with Affiliates. Directly or
indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower or any of its Subsidiaries, except for (a) transactions that are in the ordinary course of Borrower’s or such Subsidiary’s business, upon
fair and reasonable terms that are no less favorable to Borrower or such Subsidiary than would be obtained in an arm’s length transaction with a non-affiliated Person, and (b) Subordinated Debt or
equity investments by Borrower’s investors in Borrower or its Subsidiaries. 
 7.9 Subordinated Debt. (a) Make or
permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the
Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to the Lenders. 

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

7.11 Compliance with Anti-Terrorism Laws. Collateral Agent hereby notifies
Borrower and each of its Subsidiaries that pursuant to the requirements of Anti-Terrorism Laws, and Collateral Agent’s policies and practices, Collateral Agent is required to obtain, verify and record
certain information and documentation that identifies Borrower and each of its Subsidiaries and their principals, which information includes the name and address of Borrower and each of its Subsidiaries and their principals and such other
information that will allow Collateral Agent to identify such party in accordance with Anti-Terrorism Laws. Neither Borrower nor any of its Subsidiaries shall, nor shall Borrower or any of its Subsidiaries
permit any Affiliate to, directly or indirectly, 

  
 15 

 
knowingly enter into any documents, instruments, agreements or contracts with any Person listed on the OFAC Lists. Borrower and each of its Subsidiaries shall immediately notify Collateral Agent
if Borrower or such Subsidiary has knowledge that Borrower, or any Subsidiary or Affiliate of Borrower, is listed on the OFAC Lists or (a) is convicted on, (b) pleads nolo contendere to, (c) is indicted on, or (d) is
arraigned and held over on charges involving money laundering or predicate crimes to money laundering. Neither Borrower nor any of its Subsidiaries shall, nor shall Borrower or any of its Subsidiaries, permit any Affiliate to, directly or
indirectly, (i) conduct any business or engage in any transaction or dealing with any Blocked Person, including, without limitation, the making or receiving of any contribution of funds, goods or services to or for the benefit of any Blocked
Person, (ii) deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224 or any similar executive order or other
Anti-Terrorism Law, or (iii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth
in Executive Order No. 13224 or other Anti-Terrorism Law. 
  

	8.	EVENTS OF DEFAULT 

 Any one of the following shall constitute an event of default
(an “Event of Default”) under this Agreement: 
 8.1 Payment Default. Borrower fails to (a) make any
payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day grace period shall not
apply to payments due on the Maturity Date or the date of acceleration pursuant to Section 9.1 (a) hereof). During the cure period, the failure to cure the payment default is not an Event of Default (but no Credit Extension will be made
during the cure period); 
 8.2 Covenant Default. 

(a) Borrower or any of its Subsidiaries fails or neglects to perform any obligation in Sections 6.2 (Financial Statements, Reports,
Certificates), 6.4 (Taxes), 6.5 (Insurance), 6.6 (Operating Accounts), 6.7 (Protection of Intellectual Property Rights), 6.9 (Notice of Litigation and Default), 6.10 (Financial Covenant), 6.12 (Creation/Acquisition of Subsidiaries) or 6.13 (Further
Assurances) or Borrower violates any covenant in Section 7; or 
 (b) Borrower, or any of its Subsidiaries, fails or neglects to
perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision,
condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or
cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty
(30) days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period). Grace periods provided
under this Section shall not apply, among other things, to financial covenants or any other covenants set forth in subsection (a) above; 

8.3 Material Adverse Change. A Material Adverse Change occurs; 

8.4 Attachment; Levy; Restraint on Business. 

(a) (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or any of its Subsidiaries or of
any entity under control of Borrower or its Subsidiaries on deposit with any Lender or any Lender’s Affiliate or any bank or other institution at which Borrower or any of its Subsidiaries maintains a Collateral Account, or (ii) a notice of
lien, levy, or assessment is filed against Borrower or any of its Subsidiaries or their respective assets by any government agency, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence
thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure period; and 

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

8.5 Insolvency. (a) Borrower or any of its Subsidiaries is or becomes Insolvent; (b) Borrower or any of its
Subsidiaries begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower or any of its Subsidiaries and not dismissed or stayed within forty-five (45) days (but no
Credit Extensions shall be made while Borrower or any Subsidiary is Insolvent and/or until any Insolvency Proceeding is dismissed); 

8.6 Other Agreements. There is a default in any agreement to which Borrower or any of its Subsidiaries is a party with a third
party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of Two Hundred Fifty Thousand Dollars ($250,000.00) or that could reasonably be
expected to have a Material Adverse Change; 
 8.7 Judgments. One or more judgments, orders, or decrees for the payment of
money in an amount, individually or in the aggregate, of at least Two Hundred Fifty Thousand Dollars ($250,000.00) (not covered by independent third-party insurance as to which liability has been accepted by
such insurance carrier) shall be rendered against Borrower or any of its Subsidiaries and shall remain unsatisfied, unvacated, or unstayed for a period of ten (10) days after the entry thereof (provided that no Credit Extensions will be made
prior to the satisfaction, vacation, or stay of such judgment, order or decree); 
 8.8 Misrepresentations. Borrower or any of
its Subsidiaries or any Person acting for Borrower or any of its Subsidiaries makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Collateral Agent and/or Lenders or
to induce Collateral Agent and/or the Lenders to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made; 

8.9 Subordinated Debt. A default or breach occurs under any agreement between Borrower or any of its Subsidiaries and any
creditor of Borrower or any of its Subsidiaries that signed a subordination, intercreditor, or other similar agreement with Collateral Agent or the Lenders, or any creditor that has signed such an agreement with Collateral Agent or the Lenders
breaches any terms of such agreement; 
 8.10 Guaranty. (a) Any Guaranty terminates or ceases for any reason to be in
full force and effect; (b) any Guarantor does not perform any obligation or covenant under any Guaranty; (c) any circumstance described in Sections 8.3, 8.4, 8.5, 8.7, or 8.8 occurs with respect to any Guarantor, or (d) the
liquidation, winding up, or termination of existence of any Guarantor; 
 8.11 Governmental Approvals. Any Governmental
Approval shall have been revoked, rescinded, suspended, modified in an adverse manner, or not renewed in the ordinary course for a full term and such revocation, rescission, suspension, modification or
non-renewal has resulted in or could reasonably be expected to result in a Material Adverse Change; or 

8.12 Lien Priority. Any Lien created hereunder or by any other Loan Document shall at any time fail to constitute a valid and
perfected Lien on any of the Collateral purported to be secured thereby, subject to no prior or equal Lien, other than Permitted Liens which are permitted to have priority in accordance with the terms of this Agreement. 

 

	9.	RIGHTS AND REMEDIES 

 9.1 Rights and Remedies. 

(a) Upon the occurrence and during the continuance of an Event of Default, Collateral Agent may, and at the written direction of Required
Lenders shall, without notice or demand, do any or all of the following: (i) deliver notice of the Event of Default to Borrower, (ii) by notice to Borrower declare all Obligations immediately due and payable (but if an Event of
Default described in Section 8.5 occurs all Obligations shall be 

  
 17 

 
immediately due and payable without any action by Collateral Agent or the Lenders) or (iii) by notice to Borrower suspend or terminate the obligations, if any, of the Lenders to advance
money or extend credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Collateral Agent and/or the Lenders (but if an Event of Default described in Section 8.5 occurs all obligations, if any,
of the Lenders to advance money or extend credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Collateral Agent and/or the Lenders shall be immediately terminated without any action by Collateral
Agent or the Lenders). 
 (b) Without limiting the rights of Collateral Agent and the Lenders set forth in Section 9.1(a) above,
upon the occurrence and during the continuance of an Event of Default, Collateral Agent shall have the right, without notice or demand, to do any or all of the following: 

(i) foreclose upon and/or sell or otherwise liquidate, the Collateral; 

(ii) apply to the Obligations any (a) balances and deposits of Borrower that Collateral Agent or any Lender holds or controls, or
(b) any amount held or controlled by Collateral Agent or any Lender owing to or for the credit or the account of Borrower; and/or 

(iii) commence and prosecute an Insolvency Proceeding or consent to Borrower commencing any Insolvency Proceeding. 

(c) Without limiting the rights of Collateral Agent and the Lenders set forth in Sections 9.1(a) and (b) above, upon the occurrence
and during the continuance of an Event of Default, Collateral Agent shall have the right, without notice or demand, to do any or all of the following: 

(i) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Collateral Agent considers
advisable, notify any Person owing Borrower money of Collateral Agent’s security interest in such funds, and verify the amount of such account; 

(ii) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the
Collateral. Borrower shall assemble the Collateral if Collateral Agent requests and make it available in a location as Collateral Agent reasonably designates. Collateral Agent may enter premises where the Collateral is located, take and maintain
possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Collateral Agent a license to enter and occupy
any of its premises, without charge, to exercise any of Collateral Agent’s rights or remedies; 
 (iii) ship, reclaim, recover, store,
finish, maintain, repair, prepare for sale, and/or advertise for sale, the Collateral. Collateral Agent is hereby granted a non-exclusive, royalty-free license or other
right to use, without charge, Borrower’s and each of its Subsidiaries’ labels, patents, copyrights, mask works, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any similar
property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Collateral Agent’s exercise of its rights under this Section 9.1, Borrower’s and each of
its Subsidiaries’ rights under all licenses and all franchise agreements inure to Collateral Agent, for the benefit of the Lenders; 

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

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

(vi) appoint a receiver to seize, manage and realize any of the Collateral, and such receiver shall have any right and authority as any
competent court will grant or authorize in accordance with any applicable law, including any power or authority to manage the business of Borrower or any of its Subsidiaries; 

  
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 (vii) subject to clauses 9.1(a) and (b), exercise all rights and remedies available to
Collateral Agent and each Lender under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof); 

(viii) for any Letters of Credit, demand that Borrower (i) deposit cash with Bank in an amount equal to (x) if such Letters of
Credit are denominated in Dollars, then one hundred five percent (105%); and (y) if such Letters of Credit are denominated in a Foreign Currency, then one hundred ten percent (110%), of the Dollar Equivalent of the aggregate face amount of all
Letters of Credit remaining undrawn (plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment)), to secure all of the Obligations relating to such Letters of Credit, as
collateral security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the
remaining term of any Letters of Credit; and 
 (ix) terminate any FX Contracts. 

Notwithstanding any provision of this Section 9.1 to the contrary, upon the occurrence of any Event of Default, Collateral Agent shall have the right to
exercise any and all remedies referenced in this Section 9.1 without the written consent of Required Lenders following the occurrence of an Exigent Circumstance. As used in the immediately preceding sentence, “Exigent
Circumstance” means any event or circumstance that, in the reasonable judgment of Collateral Agent, imminently threatens the ability of Collateral Agent to realize upon all or any material portion of the Collateral, such as, without
limitation, fraudulent removal, concealment, or abscondment thereof, destruction or material waste thereof, or failure of Borrower or any of its Subsidiaries after reasonable demand to maintain or reinstate adequate casualty insurance coverage, or
which, in the judgment of Collateral Agent, could reasonably be expected to result in a material diminution in value of the Collateral. Notwithstanding any provision of this Agreement or any of the Loan Documents to the contrary, for so long as
Celgene Corporation’s existing collaboration and license agreement (referring specifically to the agreement in effect since September 26, 2014) with Borrower remains in effect, Collateral Agent shall not exercise any of its rights or
remedies with respect to any Collateral located at 870 and 894 Industrial Road, San Carlos, CA 94070, for a period of five (5) Business Days following the occurrence of any Event of Default (other than an Event of Default described in
Section 8.5). 
 9.2 Power of Attorney. Borrower hereby irrevocably appoints Collateral Agent as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse Borrower’s or any of its Subsidiaries’ name
on any checks or other forms of payment or security; (b) sign Borrower’s or any of its Subsidiaries’ name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and
claims about the Accounts directly with Account Debtors, for amounts and on terms Collateral Agent determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any
Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Collateral
Agent or a third party as the Code or any applicable law permits. Borrower hereby appoints Collateral Agent as its lawful attorney-in-fact to sign Borrower’s or any
of its Subsidiaries’ name on any documents necessary to perfect or continue the perfection of Collateral Agent’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations (other than
inchoate indemnity obligations) have been satisfied in full and Collateral Agent and the Lenders are under no further obligation to make Credit Extensions hereunder. Collateral Agent’s foregoing appointment as Borrower’s or any of its
Subsidiaries’ attorney in fact, and all of Collateral Agent’s rights and powers, coupled with an interest, are irrevocable until all Obligations (other than inchoate indemnity obligations) have been fully repaid and performed and
Collateral Agent’s and the Lenders’ obligation to provide Credit Extensions terminates. 
 9.3 Protective Payments.
If Borrower or any of its Subsidiaries fail to obtain the insurance called for by Section 6.5 or fails to pay any premium thereon or fails to pay any other amount which Borrower or any of its Subsidiaries is obligated to pay under this
Agreement or any other Loan Document, Collateral Agent may obtain such insurance or make such payment, and all amounts so paid by Collateral Agent are Lenders’ Expenses and immediately due and payable, bearing interest at the Default Rate, and
secured by the Collateral. Collateral Agent will make reasonable efforts to provide Borrower with notice of Collateral Agent obtaining such insurance or making such payment at the time it is obtained or paid or within a reasonable time thereafter.
No such payments by Collateral Agent are deemed an agreement to make similar payments in the future or Collateral Agent’s waiver of any Event of Default. 

  
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 9.4 Application of Payments and Proceeds. Notwithstanding anything to the contrary
contained in this Agreement, upon the occurrence and during the continuance of an Event of Default, (a) Borrower irrevocably waives the right to direct the application of any and all payments at any time or times thereafter received by
Collateral Agent from or on behalf of Borrower or any of its Subsidiaries of all or any part of the Obligations, and, as between Borrower on the one hand and Collateral Agent and Lenders on the other, Collateral Agent shall have the continuing and
exclusive right to apply and to reapply any and all payments received against the Obligations in such manner as Collateral Agent may deem advisable notwithstanding any previous application by Collateral Agent, and (b) the proceeds of any sale
of, or other realization upon all or any part of the Collateral shall be applied: first, to the Lenders’ Expenses; second, to accrued and unpaid interest on the Obligations (including any interest which, but for the provisions of the United
States Bankruptcy Code, would have accrued on such amounts); third, to the principal amount of the Obligations outstanding; and fourth, to any other indebtedness or obligations of Borrower owing to Collateral Agent or any Lender under the Loan
Documents. Any balance remaining shall be delivered to Borrower or to whoever may be lawfully entitled to receive such balance or as a court of competent jurisdiction may direct. In carrying out the foregoing, (x) amounts received shall be
applied in the numerical order provided until exhausted prior to the application to the next succeeding category, and (y) each of the Persons entitled to receive a payment in any particular category shall receive an amount equal to its pro rata
share of amounts available to be applied pursuant thereto for such category. Any reference in this Agreement to an allocation between or sharing by the Lenders of any right, interest or obligation “ratably,” “proportionally” or
in similar terms shall refer to Pro Rata Share unless expressly provided otherwise. Collateral Agent, or if applicable, each Lender, shall promptly remit to the other Lenders such sums as may be necessary to ensure the ratable repayment of each
Lender’s portion of any Term Loan and the ratable distribution of interest, fees and reimbursements paid or made by Borrower. Notwithstanding the foregoing, a Lender receiving a scheduled payment shall not be responsible for determining whether
the other Lenders also received their scheduled payment on such date; provided, however, if it is later determined that a Lender received more than its ratable share of scheduled payments made on any date or dates, then such Lender shall remit to
Collateral Agent or other Lenders such sums as may be necessary to ensure the ratable payment of such scheduled payments, as instructed by Collateral Agent. If any payment or distribution of any kind or character, whether in cash, properties or
securities, shall be received by a Lender in excess of its ratable share, then the portion of such payment or distribution in excess of such Lender’s ratable share shall be received by such Lender in trust for and shall be promptly paid over to
the other Lender for application to the payments of amounts due on the other Lenders’ claims. To the extent any payment for the account of Borrower is required to be returned as a voidable transfer or otherwise, the Lenders shall contribute to
one another as is necessary to ensure that such return of payment is on a pro rata basis. If any Lender shall obtain possession of any Collateral, it shall hold such Collateral for itself and as agent and bailee for Collateral Agent and other
Lenders for purposes of perfecting Collateral Agent’s security interest therein. 
 9.5 Liability for Collateral. So long
as Collateral Agent and the Lenders comply with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Collateral Agent and the Lenders, Collateral Agent and the Lenders shall not be liable
or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other
Person. Borrower bears all risk of loss, damage or destruction of the Collateral. 
 9.6 No Waiver; Remedies Cumulative.
Failure by Collateral Agent or any Lender, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Collateral Agent or any Lender
thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by Collateral Agent and the Required Lenders and then is only effective for the specific instance and purpose for
which it is given. The rights and remedies of Collateral Agent and the Lenders under this Agreement and the other Loan Documents are cumulative. Collateral Agent and the Lenders have all rights and remedies provided under the Code, any applicable
law, by law, or in equity. The exercise by Collateral Agent or any Lender of one right or remedy is not an election, and Collateral Agent’s or any Lender’s waiver of any Event of Default is not a continuing waiver. Collateral Agent’s
or any Lender’s delay in exercising any remedy is not a waiver, election, or acquiescence. 

  
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 9.7 Demand Waiver. Borrower waives, to the fullest extent permitted by law, demand,
notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by
Collateral Agent or any Lender on which Borrower or any Subsidiary is liable. 
  

	10.	NOTICES 

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

					
		 	If to Borrower:	  	 Sutro Biopharma, Inc.
 310 Utah Street, Suite
150
 South San Francisco, CA 94080
 Attn: Edward Albini

Email:

			
		 	with a copy (which shall not constitute notice) to:	  	 Fenwick & West LLP
 555 California
Street
 San Francisco, CA 94104
 Attn: Matthew Rossiter

Fax:
 Email:

			
		 	If to Collateral Agent:	  	 OXFORD FINANCE LLC
 133 North Fairfax Street

Alexandria, Virginia 22314
 Attention: Legal Department

Fax:
 Email:

			
		 	with a copy to	  	 SILICON VALLEY BANK
 3003 Tasman Drive

Santa Clara, CA 95054
 Attn: Derek Scalf

Fax:
 Email:

			
		 	with a copy (which shall not constitute notice) to:	  	 Troutman Sanders LLP
 401 9th Street, NW, Suite 1000
 Washington, DC 20004

Attn: Charles Charpentier
 Fax:

Email:

  
 21 

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

 California
law governs the Loan Documents without regard to principles of conflicts of law. Borrower, Collateral Agent and each Lender each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California; provided,
however, that nothing in this Agreement shall be deemed to operate to preclude Collateral Agent or any Lender from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the
Obligations, or to enforce a judgment or other court order in favor of Collateral Agent or any Lender. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby
waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby
waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the
address set forth in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three
(3) days after deposit in the U.S. mails, proper postage prepaid. 
 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER, COLLATERAL AGENT
AND EACH LENDER EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS.
THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 
 WITHOUT
INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies
of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in
accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County,
California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1,
inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such
proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that
point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before
a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial
proceedings. The private judge shall oversee discovery and may enforce all discovery rules and orders applicable to judicial proceedings in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall
have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the
right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The private judge shall also determine all issues relating to the applicability,
interpretation, and enforceability of this paragraph. 
  

	12.	GENERAL PROVISIONS 

 12.1 Successors and Assigns. This Agreement
binds and is for the benefit of the successors and permitted assigns of each party. Borrower may not transfer, pledge or assign this Agreement or any rights or obligations under it without Collateral Agent’s and each Lender’s prior written
consent (which may be granted or withheld in Collateral Agent’s and each Lender’s discretion, subject to Section 12.6). The Lenders have the right, 

  
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without the consent of or notice to Borrower, to sell, transfer, assign, pledge, negotiate, or grant participation in (any such sale, transfer, assignment, negotiation, or grant of
a participation, a “Lender Transfer”) all or any part of, or any interest in, the Lenders’ obligations, rights, and benefits under this Agreement and the other Loan Documents; provided, however, that any such
Lender Transfer (other than a transfer, pledge, sale or assignment to an Eligible Assignee) of its obligations, rights, and benefits under this Agreement and the other Loan Documents shall require the prior written consent of the Required Lenders
(such approved assignee, an “Approved Lender”). Borrower and Collateral Agent shall be entitled to continue to deal solely and directly with such Lender in connection with the interests so assigned until Collateral Agent shall have
received and accepted an effective assignment agreement in form satisfactory to Collateral Agent executed, delivered and fully completed by the applicable parties thereto, and shall have received such other information regarding such Eligible
Assignee or Approved Lender as Collateral Agent reasonably shall require. Notwithstanding anything to the contrary contained herein, so long as no Event of Default has occurred and is continuing, no Lender Transfer (other than a Lender Transfer
(i) in respect of the Warrants or (ii) in connection with (x) assignments by a Lender due to a forced divestiture at the request of any regulatory agency; or (y) upon the occurrence of a default, event of default or similar
occurrence with respect to a Lender’s own financing or securitization transactions) shall be permitted, without Borrower’s consent, to any Person which is an Affiliate or Subsidiary of Borrower, a direct competitor of Borrower or a vulture
hedge fund, each as determined by Collateral Agent. 
 12.2 Indemnification. Borrower agrees to indemnify, defend and hold
Collateral Agent and the Lenders and their respective directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Collateral Agent or the Lenders (each, an “Indemnified Person”) harmless
against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”) asserted by any other party in connection with; related to; following; or arising from, out of or under, the transactions contemplated by
the Loan Documents; and (b) all losses or Lenders’ Expenses incurred, or paid by Indemnified Person in connection with; related to; following; or arising from, out of or under, the transactions contemplated by the Loan Documents between
Collateral Agent, and/or the Lenders and Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’s gross negligence or willful misconduct. Borrower hereby
further indemnifies, defends and holds each Indemnified Person harmless from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature
whatsoever (including the fees and disbursements of counsel for such Indemnified Person) in connection with any investigative, response, remedial, administrative or judicial matter or proceeding, whether or not such Indemnified Person shall be
designated a party thereto and including any such proceeding initiated by or on behalf of Borrower, and the reasonable expenses of investigation by engineers, environmental consultants and similar technical personnel and any commission, fee or
compensation claimed by any broker (other than any broker retained by Collateral Agent or Lenders) asserting any right to payment for the transactions contemplated hereby which may be imposed on, incurred by or asserted against such Indemnified
Person as a result of or in connection with the transactions contemplated hereby and the use or intended use of the proceeds of the loan proceeds except for liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims,
costs, expenses and disbursements directly caused by such Indemnified Person’s gross negligence or willful misconduct. 
 12.3
Time of Essence. Time is of the essence for the performance of all Obligations in this Agreement. 
 12.4 Severability of
Provisions. Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision. 

12.5 Correction of Loan Documents. Collateral Agent and the Lenders may correct patent errors and fill in any blanks in this Agreement
and the other Loan Documents consistent with the agreement of the parties. 
 12.6 Amendments in Writing; Integration.
(a) No amendment, modification, termination or waiver of any provision of this Agreement or any other Loan Document, no approval or consent thereunder, or any consent to any departure by Borrower or any of its Subsidiaries therefrom, shall in
any event be effective unless the same shall be in writing and signed by Borrower, Collateral Agent and the Required Lenders provided that: 

  
 23 

 (i) no such amendment, waiver or other modification that would have the effect of increasing or
reducing a Lender’s Term Loan Commitment or Commitment Percentage shall be effective as to such Lender without such Lender’s written consent; 

(ii) no such amendment, waiver or modification that would affect the rights and duties of Collateral Agent shall be effective without
Collateral Agent’s written consent or signature; 
 (iii) no such amendment, waiver or other modification shall, unless signed by all
the Lenders directly affected thereby, (A) reduce the principal of, rate of interest on or any fees with respect to any Term Loan or forgive any principal, interest (other than default interest) or fees (other than late charges) with respect to
any Term Loan (B) postpone the date fixed for, or waive, any payment of principal of any Term Loan or of interest on any Term Loan (other than default interest) or any fees provided for hereunder (other than late charges or for any termination
of any commitment); (C) change the definition of the term “Required Lenders” or the percentage of Lenders which shall be required for the Lenders to take any action hereunder; (D) release all or substantially all of any
material portion of the Collateral, authorize Borrower to sell or otherwise dispose of all or substantially all or any material portion of the Collateral or release any Guarantor of all or any portion of the Obligations or its guaranty obligations
with respect thereto, except, in each case with respect to this clause (D), as otherwise may be expressly permitted under this Agreement or the other Loan Documents (including in connection with any disposition permitted hereunder); (E) amend, waive
or otherwise modify this Section 12.6 or the definitions of the terms used in this Section 12.6 insofar as the definitions affect the substance of this Section 12.6; (F) consent to the assignment, delegation or other transfer by
Borrower of any of its rights and obligations under any Loan Document or release Borrower of its payment obligations under any Loan Document, except, in each case with respect to this clause (F), pursuant to a merger or consolidation permitted
pursuant to this Agreement; (G) amend any of the provisions of Section 9.4 or amend any of the definitions of Pro Rata Share, Term Loan Commitment, Commitment Percentage or that provide for the Lenders to receive their Pro Rata Shares of
any fees, payments, setoffs or proceeds of Collateral hereunder; (H) subordinate the Liens granted in favor of Collateral Agent securing the Obligations; or (I) amend any of the provisions of Section 12.10. It is hereby understood and
agreed that all Lenders shall be deemed directly affected by an amendment, waiver or other modification of the type described in the preceding clauses (C), (D), (E), (F), (G) and (H) of the preceding sentence; 

(iv) the provisions of the foregoing clauses (i), (ii) and (iii) are subject to the provisions of any interlender or agency
agreement among the Lenders and Collateral Agent pursuant to which any Lender may agree to give its consent in connection with any amendment, waiver or modification of the Loan Documents only in the event of the unanimous agreement of all Lenders.

 (b) Other than as expressly provided for in Section 12.6(a)(i)-(iii), Collateral Agent
may, if requested by the Required Lenders, from time to time designate covenants in this Agreement less restrictive by notification to a representative of Borrower. 

(c) This Agreement and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or
agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 

12.7 Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate
counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement. 
 12.8
Survival. All covenants, representations and warranties made in this Agreement continue in full force and effect until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any
other obligations which, by their terms, are to survive the termination of this Agreement) have been satisfied. Without limiting the foregoing, except as otherwise provided in Section 4.1, the grant of security interest by Borrower in
Section 4.1 shall survive until the termination of all Bank Services Agreements. The obligation of Borrower in Section 12.2 to indemnify each Lender and Collateral Agent, as well as the confidentiality provisions in Section 12.9
below, shall survive until the statute of limitations with respect to such claim or cause of action shall have run. 

  
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 12.9 Confidentiality. In handling any confidential information of Borrower, the
Lenders and Collateral Agent shall exercise the same degree of care that it exercises for their own proprietary information, but disclosure of information may be made: (a) subject to the terms and conditions of this Agreement, to the
Lenders’ and Collateral Agent’s Subsidiaries or Affiliates, or in connection with a Lender’s own financing or securitization transactions and upon the occurrence of a default, event of default or similar occurrence with respect to
such financing or securitization transaction; (b) to prospective transferees (other than those identified in (a) above) or purchasers of any interest in the Credit Extensions (provided, however, the Lenders and Collateral Agent shall,
except upon the occurrence and during the continuance of an Event of Default, obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision or to similar confidentiality terms); (c) as required by law,
regulation, subpoena, or other order; (d) to Lenders’ or Collateral Agent’s regulators or as otherwise required in connection with an examination or audit; (e) as Collateral Agent reasonably considers appropriate in exercising
remedies under the Loan Documents; and (f) to third party service providers of the Lenders and/or Collateral Agent so long as such service providers have executed a confidentiality agreement with the Lenders and Collateral Agent with terms no
less restrictive than those contained herein. Confidential information does not include information that either: (i) is in the public domain or in the Lenders’ and/or Collateral Agent’s possession when disclosed to the Lenders and/or
Collateral Agent, or becomes part of the public domain after disclosure to the Lenders and/or Collateral Agent; or (ii) is disclosed to the Lenders and/or Collateral Agent by a third party, if the Lenders and/or Collateral Agent does not know
that the third party is prohibited from disclosing the information. Collateral Agent and the Lenders may use confidential information for any purpose, including, without limitation, for the development of client databases, reporting purposes, and
market analysis. The provisions of the immediately preceding sentence shall survive the termination of this Agreement. The agreements provided under this Section 12.9 supersede all prior agreements, understanding, representations, warranties,
and negotiations between the parties about the subject matter of this Section 12.9. 
 12.10 Right of Set Off. Borrower
hereby grants to Collateral Agent and to each Lender, a lien, security interest and right of set off as security for all Obligations to Collateral Agent and each Lender hereunder, whether now existing or hereafter arising upon and against all
deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Collateral Agent or the Lenders or any entity under the control of Collateral Agent or the Lenders (including a Collateral Agent
affiliate) or in transit to any of them. At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Collateral Agent or the Lenders may set off the same or any part thereof and apply the same to any
liability or obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing the Obligations, provided that Collateral Agent shall use commercially reasonable efforts to promptly notify Borrower in
writing of any such set-off. Notwithstanding the foregoing, in no event shall Collateral Agent’s failure to notify Borrower pursuant to the foregoing sentence cause or result in any breach of this
Agreement, subject Collateral Agent or any Lender to any liability or in any way limit or restrict any rights or remedies available to Collateral Agent or any Lender pursuant to this Agreement, any other Loan Document or otherwise. ANY AND ALL
RIGHTS TO REQUIRE COLLATERAL AGENT TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER
ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 
 12.11 Silicon Valley Bank as Agent. Collateral Agent hereby
appoints Silicon Valley Bank (“SVB”) as its agent (and SVB hereby accepts such appointment) for the purpose of perfecting Collateral Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable, of
the Code can be perfected by possession or control, including without limitation, all deposit accounts maintained at SVB. 
 12.12
Cooperation of Borrower. If necessary, Borrower agrees to (i) execute any documents (including new Secured Promissory Notes) reasonably required to effectuate and acknowledge each assignment of a Term Loan Commitment or Loan to an
assignee in accordance with Section 12.1, (ii) make Borrower’s management available to meet with Collateral Agent and prospective participants and assignees of Term Loan Commitments or Credit Extensions (which meetings shall be
conducted no more often than twice every twelve months unless an Event of Default has occurred and is continuing), and (iii) assist Collateral Agent or the Lenders in the preparation of information relating to the financial affairs of Borrower
as any prospective participant or assignee of a Term Loan Commitment or Term Loan reasonably may request. Subject to the provisions of Section 12.9, Borrower authorizes each Lender to disclose to any prospective participant or assignee of a
Term Loan Commitment, any and all information in such Lender’s possession concerning Borrower and its financial affairs which has been delivered to such Lender by or on behalf of Borrower pursuant to this Agreement, or which has been delivered
to such Lender by or on behalf of Borrower in connection with such Lender’s credit evaluation of Borrower prior to entering into this Agreement. 

  
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	13.	DEFINITIONS 

 13.1 Definitions. As used in this Agreement, the
following terms have the following meanings: 
 “Account” is any “account” as defined in the Code with such
additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to Borrower. 

“Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter
be made. 
 “Additional Capital Event” is the receipt by Borrower after the Effective Date and prior to the Amortization
Date of unrestricted net cash proceeds of not less than Forty Five Million Dollars ($45,000,000) from (i) the issuance and sale by Borrower of its unsecured subordinated convertible debt and/or equity securities and/or (ii) a payment from
Celgene Corporation specifically related to Celgene’s election to extend its option to acquire Borrower. 

“Affiliate” of any Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is
controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members. 

“Agreement” is defined in the preamble hereof. 

“Amortization Date” is, with respect to a Term Loan, March 1, 2019; provided that such date shall be extended to
September 1, 2019 upon the occurrence of the Additional Capital Event. 
 “Annual Projections” is defined in
Section 6.2(a). 
 “Anti-Terrorism Laws” are any laws relating to
terrorism or money laundering, including Executive Order No. 13224 (effective September 24, 2001), the USA PATRIOT Act, the laws comprising or implementing the Bank Secrecy Act, and the laws administered by OFAC. 

“Approved Fund” is any (i) investment company, fund, trust, securitization vehicle or conduit that is (or will be)
engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business or (ii) any Person (other than a natural person) which temporarily warehouses loans for
any Lender or any entity described in the preceding clause (i) and that, with respect to each of the preceding clauses (i) and (ii), is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) a Person
(other than a natural person) or an Affiliate of a Person (other than a natural person) that administers or manages a Lender. 

“Approved Lender” is defined in Section 12.1. 

“Bank” is defined in the preamble hereof. 

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

  
 26 

 “Basic Rate” is, with respect to a Term Loan, the per annum rate of interest
(based on a year of three hundred sixty (360) days) equal to the greater of (i) seven and thirty-nine one hundredths of one percent (7.39%) and (ii) the sum of (a) the thirty (30) day U.S. LIBOR rate reported in the Wall
Street Journal on the last Business Day of the month that immediately precedes the month in which the interest will accrue, plus (b) six and four tenths of one percent (6.40%). Notwithstanding the foregoing, the Basic Rate for the Term Loan
for the period from the Effective Date through and including August 31, 2017 shall be seven and sixty-three one hundredths of one percent (7.63%). 

“Blocked Person” is any Person: (a) listed in the annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224, (b) a Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224, (c) a Person with
which any Lender is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law, (d) a Person that commits, threatens or conspires to commit or supports
“terrorism” as defined in Executive Order No. 13224, or (e) a Person that is named a “specially designated national” or “blocked person” on the most current list published by OFAC or other similar list. 

“Borrower” is defined in the preamble hereof. 

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

 “Business Day” is any day that is not a Saturday, Sunday or a day on which Collateral Agent is closed. 

“Cash Equivalents” are (a) marketable direct obligations issued or unconditionally guaranteed by the United States or
any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper or other debt securities maturing no more than one (1) year after the date of acquisition and a rating
of at least A (or the equivalent) from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., (c) time deposits, certificates of deposit and bankers’ acceptances maturing no more than one
(1) year after the date of acquisition, provided that the account in which any such time deposit, certificate of deposit or bankers’ acceptance is maintained is subject to a Control Agreement in favor of Collateral Agent, (d) demand
deposits and overnight bank deposits, provided that the account in which any such deposit is maintained is subject to a Control Agreement in favor of Collateral Agent, (e) money market funds that invest in short term investment grade
investments, provided that the account in which any such money market funds are maintained is subject to a Control Agreement in favor of Collateral Agent, and (f) investments similar to those described in clauses (a) through (e) above that
are permitted pursuant to Borrower’s investment policy as approved by the Board of Directors of Borrower from time to time, provided that such investment policy (and any such amendment thereto) has been approved in writing by Collateral Agent.
For the avoidance of doubt, the direct purchase by Borrower or any of its Subsidiaries of any Auction Rate Securities, or purchasing participations in, or entering into any type of swap or other derivative transaction, or otherwise holding or
engaging in any ownership interest in any type of Auction Rate Security by Borrower or any of its Subsidiaries shall be conclusively determined by the Lenders as an ineligible Cash Equivalent, and any such transaction shall expressly violate each
other provision of this Agreement governing Permitted Investments. Notwithstanding the foregoing, Cash Equivalents does not include and Borrower, and each of its Subsidiaries, are prohibited from purchasing, purchasing participations in, entering
into any type of swap or other equivalent derivative transaction, or otherwise holding or engaging in any ownership interest in any type of debt instrument, including, without limitation, any corporate or municipal bonds with a long-term nominal maturity for which the interest rate is reset through a dutch auction and more commonly referred to as an auction rate security (each, an “Auction Rate Security”). 

“Celgene Negative Pledge and Amendment Agreement” means that certain Negative Pledge and Amendment Agreement effective as of
June 8, 2017, by and between the Borrower and Celgene Corporation. 
 “Claims” are defined in Section 12.2. 

  
 27 

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

“Collaboration Agreement” means that certain Amended and Restated Collaboration and License Agreement to be entered into by
the Borrower and Celgene Corporation on or after the Effective Date; provided that the terms relating to Permitted Assignments and Permitted Licenses (a) are consistent in all material respects with the draft provided by Borrower to Collateral
Agent and the Lenders on July 26, 2017 or (b) otherwise are approved in writing by the Collateral Agent and the Required Lenders. 

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

“Collateral Account” is any Deposit Account, Securities Account, or Commodity Account, or any other bank account maintained
by Borrower or any Subsidiary at any time. 
 “Collateral Agent” is, Oxford, not in its individual capacity, but solely in
its capacity as agent on behalf of and for the benefit of the Lenders. 
 “Commitment Percentage” is set forth in
Schedule 1.1, as amended from time to time. 
 “Commodity Account” is any “commodity
account” as defined in the Code with such additions to such term as may hereafter be made. 
 “Communication” is
defined in Section 10. 
 “Compliance Certificate” is that certain certificate in the form attached hereto as
Exhibit C. 
 “Contingent Obligation” is, for any Person, any direct or indirect liability,
contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made,
discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) the net obligations in respect of any
interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but
“Contingent Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if
not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 

“Control Agreement” is any control agreement entered into among the depository institution at which Borrower or any of its
Subsidiaries maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower or any of its Subsidiaries maintains a Securities Account or a Commodity Account, Borrower and such Subsidiary, and Collateral Agent
pursuant to which Collateral Agent obtains control (within the meaning of the Code) for the benefit of the Lenders over such Deposit Account, Securities Account, or Commodity Account. 

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

  
 28 

 “Credit Extension” is any Term Loan or any other extension of credit by
Collateral Agent or Lenders for Borrower’s benefit. 
 “Default Rate” is defined in Section 2.3(b). 

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

 “Disbursement Letter” is that certain form attached hereto as Exhibit B-1. 
 “Dollar Equivalent” is, at any time, (a) with respect to any amount
denominated in Dollars, such amount, and (b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the
then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency. 

“Dollars,” “dollars” and “$” each mean lawful money of the United States. 

“Effective Date” is defined in the preamble of this Agreement. 

“Eligible Assignee” is (i) a Lender, (ii) an Affiliate of a Lender, (iii) an Approved Fund and (iv) any
commercial bank, savings and loan association or savings bank or any other entity which is an “accredited investor” (as defined in Regulation D under the Securities Act of 1933, as amended) and which extends credit or buys loans as one of
its businesses, including insurance companies, mutual funds, lease financing companies and commercial finance companies, in each case, which either (A) has a rating of BBB or higher from Standard & Poor’s Rating Group and a rating
of Baa2 or higher from Moody’s Investors Service, Inc. at the date that it becomes a Lender or (B) has total assets in excess of Five Billion Dollars ($5,000,000,000.00), and in each case of clauses (i) through (iv), which, through
its applicable lending office, is capable of lending to Borrower without the imposition of any withholding or similar taxes; provided that notwithstanding the foregoing, “Eligible Assignee” shall not include, unless an Event of Default has
occurred and is continuing, (i) Borrower or any of Borrower’s Affiliates or Subsidiaries or (ii) a direct competitor of Borrower or a vulture hedge fund, each as determined by Collateral Agent. Notwithstanding the foregoing,
(x) in connection with assignments by a Lender due to a forced divestiture at the request of any regulatory agency, the restrictions set forth herein shall not apply and Eligible Assignee shall mean any Person or party and (y) in
connection with a Lender’s own financing or securitization transactions, the restrictions set forth herein shall not apply and Eligible Assignee shall mean any Person or party providing such financing or formed to undertake such securitization
transaction and any transferee of such Person or party upon the occurrence of a default, event of default or similar occurrence with respect to such financing or securitization transaction; provided that no such sale, transfer, pledge or assignment
under this clause (y) shall release such Lender from any of its obligations hereunder or substitute any such Person or party for such Lender as a party hereto until Collateral Agent shall have received and accepted an effective assignment
agreement from such Person or party in form satisfactory to Collateral Agent executed, delivered and fully completed by the applicable parties thereto, and shall have received such other information regarding such Eligible Assignee as Collateral
Agent reasonably shall require. 
 “Equipment” is all “equipment” as defined in the Code with such additions to
such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 

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

“Event of Default” is defined in Section 8. 

  
 29 

 “Final Payment” is a payment (in addition to and not a substitution for the
regular monthly payments of principal plus accrued interest) due on the earliest to occur of (a) the Maturity Date, or (b) the acceleration of any Term Loan, or (c) the prepayment of a Term Loan pursuant to Section 2.2(c) or
(d), equal to the original principal amount of such Term Loan multiplied by the Final Payment Percentage, payable to Lenders in accordance with their respective Pro Rata Shares. 

“Final Payment Percentage” is three and eighty three one hundredths of one percent (3.83%). 

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

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

“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles
Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the
accounting profession in the United States, which are applicable to the circumstances as of the date of determination. 
 “General
Intangibles” are all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all copyright rights, copyright
applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, trademarks, service marks and, to the extent permitted under applicable law, any applications
therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone
numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise),
insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind. 

“Governmental Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate,
accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 

“Governmental Authority” is any nation or government, any state or other political subdivision thereof, any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization. 
 “Guarantor” is any Person providing a Guaranty in favor
of Collateral Agent. 
 “Guaranty” is any guarantee of all or any part of the Obligations, as the same may from time to
time be amended, restated, modified or otherwise supplemented. 
 “Indebtedness” is (a) indebtedness for borrowed
money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease
obligations, and (d) Contingent Obligations. 
 “Indemnified Person” is defined in Section 12.2. 

  
 30 

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

 “Insolvent” means not Solvent. 

“Intellectual Property” means (i) from the Effective Date until September 26, 2017, all of Borrower’s or any
Subsidiary’s right, title and interest in and to the following: 
 (a) its Copyrights, Trademarks and Patents and licenses therefor,
whether arising under the United States, multinational or foreign laws or otherwise; 
 (b) any and all trade secrets, trade secret licenses
and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how, operating manuals, domain names and intangible rights in software and databases; 

(c) any and all source code; 

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

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

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

(ii) from September 27, 2017 and thereafter, all of Borrower’s or any Subsidiary’s right, title and interest in and to the
following: 
 (a) its Copyrights, Trademarks and Patents; 

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

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

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

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

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

“Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities),
and any loan, advance, payment or capital contribution to any Person. 

  
 31 

 “Key Person” is each of Borrower’s (i) Chief Executive Officer, who is
William Newell as of the Effective Date, and (ii) Chief Financial Officer, who is Ed Albini as of the Effective Date. 

“Lender” is any one of the Lenders. 

“Lenders” are the Persons identified on Schedule 1.1 hereto and each assignee that becomes a party
to this Agreement pursuant to Section 12.1. 
 “Lenders’ Expenses” are all audit fees and expenses, costs, and
expenses (including reasonable attorneys’ fees and expenses, as well as appraisal fees, fees incurred on account of lien searches, inspection fees, and filing fees) for preparing, amending, negotiating, administering, defending and enforcing
the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred by Collateral Agent and/or the Lenders in connection with the Loan Documents. 

“Letter of Credit” is a standby or commercial letter of credit issued by Bank upon request of Borrower based upon an
application, guarantee, indemnity, or similar agreement. 
 “Lien” is a claim, mortgage, deed of trust, levy, charge,
pledge, security interest, or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property. 

“Loan Documents” are, collectively, this Agreement, the Warrants, the Perfection Certificates, each Compliance Certificate,
each Disbursement Letter, each Loan Payment/Advance Request Form and any Bank Services Agreement, the Post Closing Letter, each Guaranty, any subordination agreements, any note, or notes or guaranties executed by Borrower or any other Person, and
any other present or future agreement entered into by Borrower, any Guarantor or any other Person for the benefit of the Lenders and Collateral Agent in connection with this Agreement; all as amended, restated, or otherwise modified. 

“Loan Payment/Advance Request Form” is that certain form attached hereto as Exhibit B-2. 
 “Material Adverse Change” is (a) a material impairment in the perfection
or priority of Collateral Agent’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, or operations or condition (financial or otherwise) of Borrower or, Borrower and each of its
Subsidiaries, taken as a whole; or (c) a material impairment of the prospect of repayment of any portion of the Obligations. 

“Maturity Date” is, for each Term Loan, August 1, 2021. 

“Obligations” are all of Borrower’s obligations to pay when due any debts, principal, interest, Lenders’ Expenses,
the Prepayment Fee, the Final Payment, and other amounts Borrower owes the Lenders now or later, in connection with, related to, following, or arising from, out of or under, this Agreement or, the other Loan Documents (other than the Warrants), or
otherwise, including, without limitation, all obligations relating to letters of credit (including reimbursement obligations for drawn and undrawn letters of credit), cash management services, and foreign exchange contracts, if any, unless otherwise
provided in any applicable Bank Services Agreement, and including interest accruing after Insolvency Proceedings begin (whether or not allowed) and debts, liabilities, or obligations of Borrower assigned to the Lenders and/or Collateral Agent, and
the performance of Borrower’s duties under the Loan Documents (other than the Warrants). 
 “OFAC” is the U.S.
Department of Treasury Office of Foreign Assets Control. 
 “OFAC Lists” are, collectively, the Specially Designated
Nationals and Blocked Persons List maintained by OFAC pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) and/or any other list of terrorists or other restricted Persons maintained pursuant to any of the rules and
regulations of OFAC or pursuant to any other applicable Executive Orders. 

  
 32 

 “Operating Documents” are, for any Person, such Person’s formation
documents, as certified by the Secretary of State (or equivalent agency) of such Person’s jurisdiction of organization on a date that is no earlier than thirty (30) days prior to the Effective Date, and, (a) if such Person is a
corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar
agreement), each of the foregoing with all current amendments or modifications thereto. 
 “Patents” means all patents,
patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of
the same. 
 “Payment Date” is the first (1st) calendar day of each
calendar month, commencing on September 1, 2017. 
 “Perfection Certificate” and “Perfection
Certificates” is defined in Section 5.1. 
 “Permitted Assignment” means an assignment (i) to Celgene
Corporation by Borrower, or any of its Subsidiaries, of the composition of matter, methods of use, and formulation of each Nominated Development Candidate (as defined in the Collaboration Agreement) and corresponding Licensed Product (as defined in
the Collaboration Agreement); provided that (a) in no event shall the foregoing include any SUTRO IP (as defined in the Collaboration Agreement); and (b) all upfront payments, milestone payments or other proceeds arising from the
assignment that are payable to Borrower or any of its Subsidiaries are paid to a Deposit Account that is governed by a Control Agreement; and (ii) to a third party (other than Celgene Corporation) by Borrower, or any of its Subsidiaries, of the
composition of matter, methods of use, and formulation of any protein drug, antibody, antibody fragment, or antibody-drug conjugate identified as a development candidate or licensed product, in connection with such license and/or collaboration
agreement with such third party; provided that (a) in no event shall the foregoing include any of Borrower’s, or any of its Subsidiaries’ background Intellectual Property and/or core technology (as such terms are to be defined in such
license and/or collaboration agreement); and (b) all upfront payments, milestone payments or other proceeds arising from the assignment that are payable to Borrower or any of its Subsidiaries are paid to a Deposit Account that is governed by a
Control Agreement. In order for an assignment under the preceding sub-clause (ii) to meet the requirements of a “Permitted Assignment”, Borrower shall obtain Collateral Agent’s and the
Required Lenders’ prior written approval (such approval shall be in Collateral Agent’s or the Required Lenders’ sole but reasonable discretion) of (A) the proposed definitive license and/or collaboration agreement evidencing the
final material terms of such assignment, or (B) in the event such assignment relates to a protein drug, antibody, antibody fragment, or antibody-drug conjugate or other candidate to be identified as part of a discovery program conducted by
Borrower pursuant to a licensing and/or collaboration agreement with such third party, the proposed final term sheet for such license and/or collaboration, provided that the final definitive license and/or collaboration agreement is consistent in
all material respects with such term sheet. 
 “Permitted Indebtedness” is: 

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

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

(c) Subordinated Debt; 
 (d)
unsecured Indebtedness to trade creditors incurred in the ordinary course of business; 
 (e) Indebtedness consisting of capitalized lease
obligations and purchase money Indebtedness, in each case incurred by Borrower or any of its Subsidiaries to finance the acquisition, repair, improvement or construction of fixed or capital assets of such person, provided that (i) the aggregate
outstanding principal amount of all such Indebtedness does not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) at any time and (ii) the principal amount of such Indebtedness does not exceed the lower of the cost or fair market value of
the property so acquired or built or of such repairs or improvements financed with such Indebtedness (each measured at the time of such acquisition, repair, improvement or construction is made); 

  
 33 

 (f) Indebtedness incurred as a result of endorsing negotiable instruments received in the
ordinary course of Borrower’s business; 
 (g) Indebtedness owed in respect of any obligations (including, without limitation,
overdrafts and related liabilities) arising under the Bank Services Agreement; and 
 (h) extensions, refinancings, modifications,
amendments and restatements of any items of Permitted Indebtedness (a) through (e) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose materially more burdensome terms upon
Borrower, or its Subsidiary, as the case may be. 
 “Permitted Investments” are: 

(a) Investments disclosed on the Perfection Certificate(s) and existing on the Effective Date; 

(b) (i) Investments consisting of cash and Cash Equivalents, and (ii) any other Investments permitted by Borrower’s investment
policy, as amended from time to time, provided that such investment policy as approved by the Board of Directors of Borrower (and any such amendment thereto) has been approved in writing by Collateral Agent; 

(c) Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary
course of Borrower; 
 (d) Investments consisting of deposit accounts in which Collateral Agent has a perfected security interest; 

(e) Investments in connection with Transfers permitted by Section 7.1; 

(f) Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary
course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of
Directors; not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00) in the aggregate for (i) and (ii) in any fiscal year; 
 (g)
Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary
course of business; 
 (h) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and
suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (h) shall not apply to Investments of Borrower in any Subsidiary; and 

(i) non-cash Investments in joint ventures or strategic alliances in the ordinary course of
Borrower’s business consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support. 

“Permitted Licenses” are (A) licenses of
over-the-counter software that is commercially available to the public, (B) non-exclusive and exclusive licenses for the use
of the Intellectual Property of Borrower or any of its Subsidiaries entered into in the ordinary course of business, provided, that, with respect to each such license described in clause (B), (i) no Event of Default has occurred or is
continuing at the time of such license; (ii) the license constitutes an arms-length transaction, the terms of which, on their face, do not provide for a sale or assignment of any Intellectual Property and
do not restrict the ability of Borrower or any of its Subsidiaries, as applicable, to pledge, grant a security interest in or lien on, or assign or otherwise Transfer any Intellectual Property; (iii) in the case of any exclusive license,
(x) Borrower delivers ten (10) days’ prior written notice and a brief summary of the terms of the proposed license to Collateral Agent and the Lenders and delivers to Collateral Agent 

  
 34 

 
and the Lenders copies of the final executed licensing documents in connection with the exclusive license promptly upon consummation thereof, and (y) any such license could not result in a
legal transfer of title of the licensed property but may be exclusive in respects other than territory and may be exclusive as to territory only as to discrete geographical areas outside of the United States; and (iv) all upfront payments,
royalties, milestone payments or other proceeds arising from the licensing agreement that are payable to Borrower or any of its Subsidiaries are paid to a Deposit Account that is governed by a Control Agreement, (C) licenses to Celgene
Corporation pursuant to the Collaboration Agreement; provided, that, with respect to each such license described in clause (C), (i) no Event of Default has occurred or is continuing at the time of such license; (ii) such license
could not result in a legal transfer of title of the licensed property (other than with respect to any Permitted Assignment); and (iii) all upfront payments, royalties, milestone payments or other proceeds arising from the licensing agreement
that are payable to Borrower or any of its Subsidiaries are paid to a Deposit Account that is governed by a Control Agreement, and (D) licenses to any third party of any protein drug, antibody, antibody fragment or antibody-drug conjugate or
other candidate, provided, that, with respect to each such license described in clause (D), (i) no Event of Default has occurred or is continuing at the time of such license; (ii) the license constitutes an arms-length transaction, the terms of which, on their face, do not provide for a sale or assignment of the applicable candidate (or any Intellectual Property associated therewith), other than with respect to any
Permitted Assignment; (iii) (x) Borrower delivers to Collateral Agent and the Lenders copies of the final executed licensing documents in connection with the license promptly upon consummation thereof, and (y) any such license could not
result in a legal transfer of title of the licensed property (other than with respect to any Permitted Assignment); and (iv) all upfront payments, royalties, milestone payments or other proceeds arising from the licensing agreement that are
payable to Borrower or any of its Subsidiaries are paid to a Deposit Account that is governed by a Control Agreement. In order for a license under the preceding clause (D) to meet the requirements of a “Permitted License”, Borrower
shall obtain Collateral Agent’s and the Required Lenders’ prior written approval (such approval shall be in Collateral Agent’s or the Required Lenders’ sole but reasonable discretion) of (1) the proposed definitive license
and/or collaboration agreement evidencing the final material terms of such license, or (2) in the event such license relates to a protein drug, antibody, antibody fragment, or antibody-drug conjugate to be identified as part of a discovery
program conducted by Borrower pursuant to a licensing and/or collaboration agreement with such third party, the proposed final term sheet for such license and/or collaboration, provided that the final definitive license and/or collaboration
agreement is consistent in all material respects with such term sheet. 
 “Permitted Liens” are: 

(a) Liens existing on the Effective Date and disclosed on the Perfection Certificates or arising under this Agreement and the other Loan
Documents; 
 (b) Liens for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or
(ii) being contested in good faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury
Regulations adopted thereunder; 
 (c) liens securing Indebtedness permitted under clause (e) of the definition of “Permitted
Indebtedness,” provided that (i) such liens exist prior to the acquisition of, or attach substantially simultaneous with, or within twenty (20) days after the, acquisition, lease, repair, improvement or construction of, such
property financed or leased by such Indebtedness and (ii) such liens do not extend to any property of Borrower other than the property (and proceeds thereof) acquired, leased or built, or the improvements or repairs, financed by such
Indebtedness; 
 (d) Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary
course of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00), and which are not delinquent or remain payable without penalty or which
are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto; 

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

  
 35 

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

(g) leases or subleases of real property granted in the ordinary course of Borrower’s business (or, if referring to another Person, in
the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal property (other than Intellectual Property) granted in the ordinary course of
Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do not prohibit granting Collateral Agent or any Lender a security interest
therein; 
 (h) banker’s liens, rights of setoff and Liens in favor of financial institutions incurred in the ordinary course of
business arising in connection with Borrower’s deposit accounts or securities accounts held at such institutions solely to secure payment of fees and similar costs and expenses and provided such accounts are maintained in compliance with
Section 6.6(b) hereof; 
 (i) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of
Default under Section 8.4 or 8.7; 
 (j) Liens consisting of Permitted Licenses, or of intercompany licenses to which only Borrower and
Subsidiaries of Borrower that are Guarantors of the Obligations are party; and 
 (k) Liens constituting deposits to secure real property
lease obligations as a lessee incurred by Borrower or any Subsidiary in the ordinary course of business, including cash and Cash Equivalents deposited as collateral in support of a letter of credit issued on behalf of Borrower or any Subsidiary in
connection with the same, provided that the aggregate amount of all such deposits does not exceed Six Hundred Fifty Thousand Dollars ($650,000.00) at any time. 

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

“Post Closing Letter” is that certain Post Closing Letter dated as of the Effective Date by and between Collateral Agent and
Borrower. 
 “Prepayment Fee” is, with respect to any Term Loan subject to prepayment prior to the Maturity Date, whether
by mandatory or voluntary prepayment, acceleration or otherwise, an additional fee payable to the Lenders in amount equal to: 
 (i) for a
prepayment made on or after the Funding Date of such Term Loan through and including the first anniversary of the Funding Date of such Term Loan, three percent (3.00%) of the principal amount of such Term Loan prepaid; 

(ii) for a prepayment made after the date which is after the first anniversary of the Funding Date of such Term Loan through and including
the second anniversary of the Funding Date of such Term Loan, two percent (2.00%) of the principal amount of the Term Loans prepaid; and 

(iii) for a prepayment made after the second anniversary of the Funding Date of such Term Loan and prior to the Maturity Date, one percent
(1.00%) of the principal amount of the Term Loans prepaid. 
 “Pro Rata Share” is, as of any date of determination, with
respect to each Lender, a percentage (expressed as a decimal, rounded to the ninth decimal place) determined by dividing the outstanding principal amount of Term Loans held by such Lender by the aggregate outstanding principal amount of all Term
Loans. 

  
 36 

 “Registered Organization” is any “registered organization” as defined
in the Code with such additions to such term as may hereafter be made. 
 “Required Lenders” means (i) for so long as
all of the Persons that are Lenders on the Effective Date (each an “Original Lender”) have not assigned or transferred any of their interests in their Term Loan, Lenders holding one hundred percent (100%) of the aggregate
outstanding principal balance of the Term Loan, or (ii) at any time from and after any Original Lender has assigned or transferred any interest in its Term Loan, Lenders holding at least sixty six percent (66%) of the aggregate outstanding
principal balance of the Term Loan and, in respect of this clause (ii), (A) each Original Lender that has not assigned or transferred any portion of its Term Loan, (B) each assignee or transferee of an Original Lender’s interest in the
Term Loan, but only to the extent that such assignee or transferee is an Affiliate or Approved Fund of such Original Lender, and (C) any Person providing financing to any Person described in clauses (A) and (B) above; provided, however,
that this clause (C) shall only apply upon the occurrence of a default, event of default or similar occurrence with respect to such financing. 

“Requirement of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or
common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is
subject. 
 “Responsible Officer” is any of the President, Chief Executive Officer, or Chief Financial Officer of Borrower
acting alone. 
 “Secured Promissory Note” is defined in Section 2.4. 

“Secured Promissory Note Record” is a record maintained by each Lender with respect to the outstanding Obligations owed by
Borrower to Lender and credits made thereto. 
 “Securities Account” is any “securities account” as defined in
the Code with such additions to such term as may hereafter be made. 
 “Shares” is one hundred percent (100%) of the issued
and outstanding capital stock, membership units or other securities owned or held of record by Borrower or Borrower’s Subsidiary, in any Subsidiary and/or in any other entity; provided that, in the event Borrower, demonstrates to Collateral
Agent’s reasonable satisfaction, that a pledge of more than sixty five percent (65%) of the Shares of such Subsidiary which is a Foreign Subsidiary, creates a present and existing adverse tax consequence to Borrower under the U.S. Internal
Revenue Code, “Shares” shall mean sixty-five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower or its Subsidiary in
such Foreign Subsidiary; provided, further, that the “Shares” shall not include any capital stock of SutroVax, Inc. for so long as such capital stock is subject to (a) a right of first refusal of the other equityholders of SutroVax,
Inc., or (b) call options awarded to employees and other service providers of Borrower pursuant to the Sutro Biopharma, Inc. 2017 Call Option Plan adopted by Borrower’s Board of Directors on February 6, 2017, provided that upon the
termination, lapsing or expiration of both such rights of first refusal and such call options, such capital stock shall automatically become part of the “Shares.” 

“Solvent” is, with respect to any Person: the fair salable value of such Person’s consolidated assets (including
goodwill minus disposition costs) exceeds the fair value of such Person’s liabilities; such Person is not left with unreasonably small capital after the transactions in this Agreement; and such Person is able to pay its debts (including trade
debts) as they mature. 
 “Subordinated Debt” is indebtedness incurred by Borrower or any of its Subsidiaries subordinated
to all Indebtedness of Borrower and/or its Subsidiaries to the Lenders (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Collateral Agent and the Lenders entered into between Collateral
Agent, Borrower, and/or any of its Subsidiaries, and the other creditor), on terms acceptable to Collateral Agent and the Lenders. 

  
 37 

 “Subsidiary” is, with respect to any Person, any Person of which more than fifty
percent (50%) of the voting stock or other equity interests (in the case of Persons other than corporations) is owned or controlled, directly or indirectly, by such Person or through one or more intermediaries. 

“Term Loan” is defined in Section 2.2(a) hereof. 

“Term Loan Commitment” is, for any Lender, the obligation of such Lender to make a Term Loan, up to the principal amount
shown on Schedule 1.1. “Term Loan Commitments” means the aggregate amount of such commitments of all Lenders. 

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

“Transfer” is defined in Section 7.1. 

“Warrants” are those certain Warrants to Purchase Stock dated as of the Effective Date, or any date thereafter, issued by
Borrower in favor of each Lender or such Lender’s Affiliates. 
 [Balance of Page Intentionally Left
Blank] 

  
 38 

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

			
	BORROWER:
	
	SUTRO BIOPHARMA, INC.

			
		
	By	 	/s/ William J. Newell

			
	Name:	 	 William J. Newell

			
	Title:	 	 CEO

  

			
	COLLATERAL AGENT AND LENDER:
	
	OXFORD FINANCE LLC

			
		
	By	 	/s/ Colette H. Featherly

			
	Name:	 	Colette H. Featherly

			
	Title:	 	Senior Vice President

  

			
	LENDER:
	
	SILICON VALLEY BANK

			
		
	By	 	/s/ Derek Scalf

			
	Name:	 	Derek Scalf

			
	Title:	 	Vice President

 [Signature Page to Loan and Security Agreement] 

 SCHEDULE 1.1 

Lenders and Commitments 

Term Loans 
  

									
	 Lender
	  	Term Loan Commitment	 	  	Commitment Percentage	 
	 OXFORD FINANCE LLC
	  	$	10,000,000	 	  	 	66.67	% 
	 SILICON VALLEY BANK
	  	$	5,000,000	 	  	 	33.33	% 
	 TOTAL
	  	$	15,000,000	 	  	 	100.00	% 

 EXHIBIT A 

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

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

Notwithstanding the foregoing, the Collateral does not include (i) any Intellectual Property; provided, however, the Collateral shall
include all Accounts and all proceeds of Intellectual Property; provided, further, that if a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a
security interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit
perfection of Collateral Agent’s security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property; and (ii) more than 65% of the total combined voting power of all classes of stock
entitled to vote the shares of capital stock (the “Shares”) of any Foreign Subsidiary, if Borrower demonstrates to Collateral Agent’s reasonable satisfaction that a pledge of more than sixty five percent (65%) of the Shares of such
Subsidiary creates a present and existing adverse tax consequence to Borrower under the U.S. Internal Revenue Code; (iii) any license, lease or contract, in each case if the granting of a Lien in such license, lease or contract is prohibited by
or would constitute a default under the agreement governing such license, lease or contract (but (A) only to the extent such prohibition is enforceable under applicable law and (B) other than to the extent that any such term would be
rendered ineffective pursuant to Sections 9-406, 9-408 or 9-409 (or any other Section) of Division 9 of the Code); provided that
upon the termination, lapsing or expiration of any such prohibition, such license, lease or contract, as applicable, shall automatically be subject to the security interest granted in favor of Collateral Agent hereunder and become part of the
“Collateral”; and (iv) any capital stock of SutroVax, Inc. for so long as such capital stock is subject to (a) a right of first refusal of the other equityholders of SutroVax, Inc., or (b) call options awarded to employees
and other service providers of Borrower pursuant to the Sutro Biopharma, Inc. 2017 Call Option Plan adopted by Borrower’s Board of Directors on February 6, 2017, provided that upon the termination, lapsing or expiration of both such rights
of first refusal and such call options, such capital stock shall automatically be subject to the security interest granted in favor of Collateral Agent hereunder and become part of the “Collateral.” 

Pursuant to the terms of a certain negative pledge arrangement with Collateral Agent and the Lenders, Borrower has agreed not to encumber any
of its Intellectual Property. 

 EXHIBIT B[-1] 

Form of Disbursement Letter 

[see attached] 

 DISBURSEMENT LETTER 

August 4, 2017 
 The undersigned, being the
duly elected and acting                                     
of Sutro Biopharma, Inc., a Delaware corporation with offices located at 310 Utah Street, Suite 150, South San Francisco, CA 94080 (“Borrower”), does hereby certify, solely in his or her capacity as an officer of the Borrower, and
not in any personal capacity, to OXFORD FINANCE LLC (“Oxford” and “Lender”), as collateral agent (the “Collateral Agent”) in connection with that certain Loan and Security Agreement dated as
of August 4, 2017, by and among Borrower, Collateral Agent and the Lenders from time to time party thereto (the “Loan Agreement”; with other capitalized terms used below having the meanings ascribed thereto in the Loan
Agreement) that: 
 1. The representations and warranties made by Borrower in Section 5 of the Loan Agreement and in the other Loan
Documents are true and correct in all material respects as of the date hereof. 
 2. No event or condition has occurred that would
constitute an Event of Default under the Loan Agreement or any other Loan Document. 
 3. Borrower is in compliance with the covenants and
requirements contained in Sections 4, 6 and 7 of the Loan Agreement. 
 4. All conditions referred to in Section 3 of the Loan
Agreement to the making of the Loan to be made on or about the date hereof have been satisfied or waived by Collateral Agent. 
 5. No
Material Adverse Change has occurred. 
 6. The undersigned is a Responsible Officer. 

[Balance of Page Intentionally Left Blank] 

 7. The proceeds of the Term Loan shall be disbursed as follows: 

 

					
	 Disbursement from Oxford:
	  			
	 Loan Amount
	  	 	$15,000,000	 
	 Plus:
	  			
	 —Deposit Received
	  	 	$35,000	 
	 Less:
	  			
	 —Interim Interest
	  	 	($_________	) 
	 —Lender’s Legal Fees
	  	 	($_________	)* 
	 Net Proceeds due from Oxford:
	  	$	_______________	 
	 TOTAL TERM LOAN NET PROCEEDS FROM LENDERS
	  	$	_______________	 

 8. The Term Loan shall amortize in accordance with the Amortization Table attached hereto. 

9. The aggregate net proceeds of the Term Loans shall be transferred to the Designated Deposit Account as follows: 

 

			
	
Account Name:                

	  	 Sutro Biopharma, Inc.

	 Bank Name:
	  	 [Silicon Valley Bank]

	 Bank Address:
	  	 [3003 Tasman Drive Santa Clara, California 95054]

	 Account Number:
	  	                                     
                                         
                  
	 ABA Number:
	  	 [_____________]

 [Balance of Page Intentionally Left Blank] 

	 	 	

  

	* 	Legal fees and costs are through the Effective Date. Post-closing legal fees and costs, payable after the Effective Date, to be invoiced and paid
post-closing. 

 Dated as of the date first set forth above. 

 

			
	 BORROWER:

	
	 SUTRO BIOPHARMA, INC.

			
		
	 By
	 	 

			
	 Name:
	 	 

			
	 Title:
	 	 

			
	
	 COLLATERAL AGENT AND LENDER:

	
	 OXFORD FINANCE LLC

			
		
	 By
	 	 

			
	 Name:
	 	 

			
	 Title:
	 	 

			
	
	 LENDER:

	
	 SILICON VALLEY BANK

			
		
	 By
	 	 

			
	 Name:
	 	 

			
	 Title:
	 	 

 [Signature Page to Disbursement Letter] 

 AMORTIZATION TABLE 

(Term Loan) 
 [see attached]

 EXHIBIT B-2 

Loan Payment/Advance Request Form 

DEADLINE FOR SAME DAY PROCESSING IS
NOON PACIFIC TIME* 
  

			
	Fax To:	  	Date: ____________________        

  

LOAN PAYMENT: 

Sutro Biopharma, Inc. 
 From Account
#______________________________            To Account #_________________________________ 

                          
              (Deposit Account
#)                                         
                                (Loan Account #) 

Principal $__________________________________            and/or Interest
$________________________________ 
 Authorized
Signature:                                       
                                     Phone Number:
_________________________ 
 Print Name/Title:
                                         
                      

 

LOAN ADVANCE: 

Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an outgoing wire. 

From Account #_____________________________            To Account
#___________________________________ 

                          
          (Loan Account
#)                                         
                                    (Deposit Account #) 

Amount of Advance $________________________ 
 All
Borrower’s representations and warranties in the Loan and Security Agreement are true, correct and complete in all material respects on the date of the request for an advance; provided, however, that such materiality qualifier shall not be
applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true,
accurate and complete in all material respects as of such date: 
 Authorized
Signature:                                       
                                     Phone Number:
_________________________ 
 Print Name/Title:
                                         
                      

 

OUTGOING WIRE REQUEST: 

Complete only if all or a portion of funds from the loan advance above is to be wired. 

Deadline for same day processing is noon, Pacific Time 

Beneficiary Name: ______________________________                Amount of
Wire: $______________________________________ 
 Beneficiary Bank: ______________________________
                Account Number: ______________________________________ 

City and State: _________________________________ 
 Beneficiary
Bank Transit (ABA) #:_________________        Beneficiary Bank Code (Swift, Sort, Chip, etc.): __________________ 

                          
                                         
                                         
    (For International Wire Only) 
 Intermediary Bank:
_____________________________         Transit (ABA) #: __________________________________________ 
 For Further
Credit to: ________________________________________________________________________________________ 
 Special Instruction:
__________________________________________________________________________________________ 
 By signing below, I (we) acknowledge and
agree that my (our) funds transfer request shall be processed in accordance with and subject to the terms and conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by
me (us). 
 Authorized Signature: ___________________________        2nd Signature (if required): ___________________________ 
 Print Name/Title:
______________________________         Print Name/Title: __________________________________ 

Telephone #: ___________
                                         
             Telephone #: __________________________] 

 EXHIBIT C 

Compliance Certificate 
  

			
	 TO:
	  	OXFORD FINANCE LLC, as Collateral Agent and Lender
SILICON VALLEY BANK, as Lender
		
	 FROM:
	  	SUTRO BIOPHARMA, INC.

 The undersigned authorized officer (“Officer”) of Sutro Biopharma, Inc. (“Borrower”), hereby
certifies that in accordance with the terms and conditions of the Loan and Security Agreement by and among Borrower, Collateral Agent, and the Lenders from time to time party thereto (the “Loan Agreement;” capitalized terms used but
not otherwise defined herein shall have the meanings given them in the Loan Agreement), 
 (a) Borrower is in complete compliance for the
period ending                      with all required covenants except as noted below; 

(b) There are no Events of Default, except as noted below; 

(c) Except as noted below, all representations and warranties of Borrower stated in the Loan Documents are true and correct in all material
respects on this date and for the period described in (a), above; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text
thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; 

(d) Borrower, and each of Borrower’s Subsidiaries, has timely filed all required tax returns and reports, Borrower, and each of
Borrower’s Subsidiaries, has timely paid all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower, or Subsidiary, except as otherwise permitted pursuant to the terms of Section 5.8 of the Loan
Agreement; and 
 (e) No Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee
payroll or benefits of which Borrower has not previously provided written notification to Collateral Agent and the Lenders. 
 Attached are the required
documents, if any, supporting our certification(s). The Officer, on behalf of Borrower, further certifies that the attached financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently
applied from one period to the next except as explained in an accompanying letter or footnotes and except, in the case of unaudited financial statements, for the absence of footnotes and subject to year-end
GAAP and audit adjustments as to the interim financial statements. 
 Please indicate compliance status since the last Compliance Certificate by circling
Yes, No, or N/A under “Complies” column. 
  

													
	 	  	Reporting Covenant	  	Requirement	  	Actual	  	Complies
	1)	  	Financial statements	  	Monthly within 30 days	  		  	Yes	  	No	  	N/A
							
	2)	  	Annual (CPA Audited) statements	  	Within 210 days after FYE (and 12/31/2017 for the Annual (CPA Audited) statements for FYE 2016)	  		  	Yes	  	No	  	N/A
							
	3)	  	Annual Financial Projections/Budget (prepared on a monthly basis)	  	Annually (within 30 days of FYE), and when revised	  		  	Yes	  	No	  	N/A

													
	4)	  	A/R & A/P agings	  	If applicable	  		  	Yes	  	No	  	N/A
							
	5)	  	8-K, 10-K and 10-Q Filings	  	If applicable, within 5 days of filing	  		  	Yes	  	No	  	N/A
							
	6)	  	Compliance Certificate	  	Monthly within 30 days	  		  	Yes	  	No	  	N/A
							
	7)	  	IP Report	  	When required	  		  	Yes	  	No	  	N/A
							
	8)	  	Total amount of Borrower’s cash and cash equivalents at the last day of the measurement period	  		  	$                	  	Yes	  	No	  	N/A
							
	9)	  	Total amount of Borrower’s Subsidiaries’ cash and cash equivalents at the last day of the measurement period	  		  	$                	  	Yes	  	No	  	N/A

 Deposit and Securities Accounts 

(Please list all accounts; attach separate sheet if additional space needed) 

 

													
	 	  	Institution Name	  	Account Number	  	New Account?	  	Account Control Agreement in place?
	1)	  		  		  	Yes	  	No	  	Yes	  	No
							
	2)	  		  		  	Yes	  	No	  	Yes	  	No
							
	3)	  		  		  	Yes	  	No	  	Yes	  	No
							
	4)	  		  		  	Yes	  	No	  	Yes	  	No

 Financial Covenants 
  

											
	 	  	Covenant	  	Requirement	  	Actual	  	Compliance
	1)	  	Minimum Aggregate Available Unrestricted Cash Balance in Collateral Accounts at Bank or its Affiliates	  	$7,500,000	  	[$                ]	  	Yes	  	No

 Other Matters 
  

							
	1)	  	Have there been any changes in management since the last Compliance Certificate?	  	Yes	  	No
				
	2)	  	Have there been any transfers/sales/disposals/retirement of Collateral or IP prohibited by the Loan Agreement?	  	Yes	  	No
				
	3)	  	Have there been any new or pending claims or causes of action against Borrower that involve more than Two Hundred Fifty Thousand Dollars ($250,000.00)?	  	Yes	  	No
				
	4)	  	Have there been any material amendments of or other material changes to the capitalization table of Borrower and any amendments of or other changes to the Operating Documents of Borrower or any of its Subsidiaries? If yes, provide
copies of any such amendments or changes with this Compliance Certificate.	  	Yes	  	No

 Exceptions 

Please explain any exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions.” Attach separate sheet if
additional space needed.) 
  

			
	SUTRO BIOPHARMA, INC.

			
		
	By	 	 

			
	Name:	 	 

			
	Title:	 	 

 Date: 
  

											
	 LENDER USE ONLY

				
	Received by:	 	 	 	   Date:
	 	 

 
											
				
	Verified by:	 	 	 	   Date:
	 	 

 
											
					
	Compliance Status:	 	Yes	 	No	 		 	

 EXHIBIT D 

Form of Secured Promissory Note 

[see attached] 

 SECURED PROMISSORY NOTE 

(Term Loan) 
  

	
$                    
     
	Dated: [DATE] 

 FOR VALUE RECEIVED, the undersigned, Sutro Biopharma, Inc., a Delaware corporation with
offices located at 310 Utah Street, Suite 150, South San Francisco, CA 94080 (“Borrower”) HEREBY PROMISES TO PAY to the order of [OXFORD FINANCE LLC][SILICON VALLEY BANK] (“Lender”) the principal amount of
[                    ] MILLION DOLLARS
($                    ) or such lesser amount as shall equal the outstanding principal balance of the Term Loan made to Borrower by
Lender, plus interest on the aggregate unpaid principal amount of such Term Loan, at the rates and in accordance with the terms of the Loan and Security Agreement dated August 4, 2017 by and among Borrower, Lender, Oxford Finance LLC, as
Collateral Agent, and the other Lenders from time to time party thereto (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”). If not sooner paid, the entire principal amount and all
accrued and unpaid interest hereunder shall be due and payable on the Maturity Date as set forth in the Loan Agreement. Any capitalized term not otherwise defined herein shall have the meaning attributed to such term in the Loan Agreement. 

Principal, interest and all other amounts due with respect to the Term Loan, are payable in lawful money of the United States of America to Lender as set
forth in the Loan Agreement and this Secured Promissory Note (this “Note”). The principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and,
prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note. 
 The Loan Agreement, among other things, (a) provides
for the making of a secured Term Loan by Lender to Borrower, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events. 

This Note may not be prepaid except as set forth in Section 2.2 (c) and Section 2.2(d) of the Loan Agreement. 

This Note and the obligation of Borrower to repay the unpaid principal amount of the Term Loan, interest on the Term Loan and all other amounts due
Lender under the Loan Agreement is secured under the Loan Agreement. 
 Presentment for payment, demand, notice of protest and all other demands and notices
of any kind in connection with the execution, delivery, performance and enforcement of this Note are hereby waived. 
 Borrower shall pay all out-of-pocket fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lender in the enforcement or attempt to enforce any of
Borrower’s obligations hereunder not performed when due. 
 This Note shall be governed by, and construed and interpreted in accordance with, the
internal laws of the State of California. 
 The ownership of an interest in this Note shall be registered on a record of ownership maintained by Lender or
its agent. Notwithstanding anything else in this Note to the contrary, the right to the principal of, and stated interest on, this Note may be transferred only if the transfer is registered on such record of ownership and the transferee is
identified as the owner of an interest in the obligation. Borrower shall be entitled to treat the registered holder of this Note (as recorded on such record of ownership) as the owner in fact thereof for all purposes and shall not be bound to
recognize any equitable or other claim to or interest in this Note on the part of any other person or entity. 
 [Balance of Page
Intentionally Left Blank] 

 IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed by one of its officers
thereunto duly authorized on the date hereof. 
  

			
	BORROWER:
	
	SUTRO BIOPHARMA, INC.

 
			
		
	By	 	 

 
			
	Name:	 	 

 
			
	Title:	 	 

 LOAN INTEREST RATE AND PAYMENTS OF PRINCIPAL 

 

									
	 Date
	  	 Principal

Amount
	  	 Interest Rate
	  	 Scheduled

Payment Amount
	  	 Notation By

 CORPORATE BORROWING CERTIFICATE 

 

					
	BORROWER:	  	SUTRO BIOPHARMA, INC.	  	DATE: August 4, 2017
	LENDERS:	  	OXFORD FINANCE LLC, as Collateral Agent and Lender
		  	SILICON VALLEY BANK, as Lender

 I hereby certify, solely in my capacity as an officer of the Borrower, and not in any personal capacity, as follows, as of the
date set forth above: 
 1. I am the Secretary, Assistant Secretary or other officer of Borrower. My title is as set forth below. 

2. Borrower’s exact legal name is set forth above. Borrower is a corporation existing under the laws of the State of Delaware. 

3. Attached hereto as Exhibit A and Exhibit B, respectively, are true, correct and complete copies of
(i) Borrower’s Sixth Amended and Restated Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above; and
(ii) Borrower’s Amended and Restated Bylaws (including amendments). Neither such Certificate of Incorporation nor such Bylaws have been further amended, annulled, rescinded, revoked or supplemented, and such Certificate of Incorporation
and such Bylaws remain in full force and effect as of the date hereof. 
 4. The following resolutions were duly and validly adopted pursuant to a unanimous
written consent of the Borrower’s Board of Directors. Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and the Lenders may rely on them until
each Lender receives written notice of revocation from Borrower. 
 [Balance of Page Intentionally Left
Blank] 

 RESOLVED, that any one of the following officers or employees of
Borrower, whose names, titles and signatures are below, may act on behalf of Borrower: 
  

											
	 Name
	  	 	 	 Title
	  	 	 	 Signature
	  	 Authorized to

Add or Remove

Signatories

	William Newell	  		 	Chief Executive Officer	  		 	 	  	X
	Ed Albini	  		 	Chief Financial Officer	  		 	 	  	X
	 	  		 	 	  		 	 	  	☐
	 	  		 	 	  		 	 	  	☐

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

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

Borrow Money. Borrow money from the Lenders. 
 Execute
Loan Documents. Execute any loan documents any Lender requires. 
 Grant Security. Grant Collateral Agent a security interest in any of
Borrower’s assets. 
 Negotiate Items. Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which
Borrower has an interest and receive cash or otherwise use the proceeds. 
 Issue Warrants. Issue warrants for Borrower’s capital stock. 

Further Acts. Designate other individuals to request advances, pay fees and costs and execute other documents or agreements (including documents or
agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effectuate such resolutions. 
 RESOLVED
FURTHER, that all acts authorized by the above resolutions and any prior acts relating thereto are ratified. 

[Balance of Page Intentionally Left Blank] 

 5. The persons listed above are Borrower’s officers or employees with their titles and signatures shown next
to their names. 
  

			
		
	By:	 	 

 
			
	Name:	 	
	Title:	 	Secretary

 [Signature Page to Corporate Borrowing Certificate]

 EXHIBIT A 

Sixth Amended and Restated Certificate of Incorporation (including amendments) 

[see attached] 

 EXHIBIT B 

Amended and Restated Bylaws (including amendments) 

[see attached] 

			
	DEBTOR:	  	SUTRO BIOPHARMA, INC.
	SECURED PARTY:	  	OXFORD FINANCE LLC,
		  	as Collateral Agent

 EXHIBIT A TO UCC FINANCING STATEMENT 

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

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

Notwithstanding the foregoing, the Collateral does not include (i) any Intellectual Property; provided, however, the Collateral shall
include all Accounts and all proceeds of Intellectual Property; provided, further, that if a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a
security interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit
perfection of Secured Party’s security interest in such Accounts and such other property of Debtor that are proceeds of the Intellectual Property; and (ii) more than 65% of the total combined voting power of all classes of stock entitled
to vote the shares of capital stock (the “Shares”) of any Foreign Subsidiary, if Debtor demonstrates to Secured Party’s reasonable satisfaction that a pledge of more than sixty five percent (65%) of the Shares of such Subsidiary
creates a present and existing adverse tax consequence to Debtor under the U.S. Internal Revenue Code; (iii) any license, lease or contract, in each case if the granting of a Lien in such license, lease or contract is prohibited by or would
constitute a default under the agreement governing such license, lease or contract (but (A) only to the extent such prohibition is enforceable under applicable law and (B) other than to the extent that any such term would be rendered
ineffective pursuant to Sections 9-406, 9-408 or 9-409 (or any other Section) of Division 9 of the Code); provided that upon the
termination, lapsing or expiration of any such prohibition, such license, lease or contract, as applicable, shall automatically be subject to the security interest granted in favor of Secured Party hereunder and become part of the
“Collateral”; and (iv) any capital stock of SutroVax, Inc. for so long as such capital stock is subject to (a) a right of first refusal of the other equityholders of SutroVax, Inc., or (b) call options awarded to employees
and other service providers of Borrower pursuant to the Sutro Biopharma, Inc. 2017 Call Option Plan adopted by Debtor’s Board of Directors on February 6, 2017, provided that upon the termination, lapsing or expiration of both such rights
of first refusal and such call options, such capital stock shall automatically be subject to the security interest granted in favor of Secured Party hereunder and become part of the “Collateral.” 

Pursuant to the terms of a certain negative pledge arrangement with Secured Party and the Lenders, Debtor has agreed not to encumber any of
its Intellectual Property. 
 Capitalized terms used but not defined herein have the meanings ascribed in the Uniform Commercial Code in
effect in the State of California as in effect from time to time (the “Code”) or, if not defined in the Code, then in the Loan and Security Agreement by and between Debtor, Secured Party and the other Lenders party thereto (as modified,
amended and/or restated from time to time).

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