Document:

EX-4.2

 EXHIBIT 4.2 

EXECUTION VERSION 
 STOCK
PURCHASE AGREEMENT 
 BY AND AMONG 

THE INVESTORS LISTED HEREIN 

AND 
 ALNYLAM
PHARMACEUTICALS, INC. 
 DATED AS OF APRIL 10, 2020 

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 1.
	 	Definitions	  	 	1	 
			
		 	 1.1   Defined Terms
	  	 	1	 
		 	 1.2   Additional Defined Terms
	  	 	4	 
			
	 2.
	 	Purchase and Sale of Common Stock	  	 	4	 
			
		 	 2.1   Purchase and Sale
	  	 	4	 
		 	 2.2   Tax Treatment
	  	 	5	 
			
	 3.
	 	Closing; Deliveries	  	 	5	 
			
		 	 3.1   Closing
	  	 	5	 
		 	 3.2   Deliveries
	  	 	5	 
			
	 4.
	 	Representations and Warranties of the Company	  	 	6	 
			
		 	 4.1   Organization, Good Standing and Qualification
	  	 	6	 
		 	 4.2   Capitalization and Voting Rights
	  	 	6	 
		 	 4.3   Subsidiaries
	  	 	7	 
		 	 4.4   Authorization
	  	 	7	 
		 	 4.5   No Defaults
	  	 	7	 
		 	 4.6   No Conflicts
	  	 	7	 
		 	 4.7   No Governmental Authority or Third-Party Consents
	  	 	8	 
		 	 4.8   Valid Issuance of Shares
	  	 	8	 
		 	 4.9   Litigation
	  	 	8	 
		 	 4.10  Licenses and Other Rights; Compliance with Laws
	  	 	8	 
		 	 4.11  Company SEC Documents; Financial Statements; Nasdaq Stock Market
	  	 	8	 
		 	 4.12  Absence of Certain Changes
	  	 	9	 
		 	 4.13  Internal Controls; Disclosure Controls and Procedures
	  	 	9	 
		 	 4.14  Intellectual Property
	  	 	10	 
		 	 4.15  Offering
	  	 	10	 
		 	 4.16  No Integration
	  	 	10	 
		 	 4.17  Brokers’ or Finders’ Fees
	  	 	10	 
		 	 4.18  Not Investment Company
	  	 	10	 
		 	 4.19  No General Solicitation
	  	 	10	 
		 	 4.20  Foreign Corrupt Practices
	  	 	10	 
		 	 4.21  Regulation M Compliance
	  	 	11	 
		 	 4.22  Office of Foreign Assets Control
	  	 	11	 
		 	 4.23  U.S. Real Property Holding Corporation
	  	 	11	 
			
	 5.
	 	Representations and Warranties of the Investors	  	 	11	 
			
		 	 5.1   Organization; Good Standing
	  	 	11	 
		 	 5.2   Authorization
	  	 	11	 
		 	 5.3   No Conflicts
	  	 	11	 
		 	 5.4   No Governmental Authority or Third-Party Consents
	  	 	12	 
		 	 5.5   Purchase Entirely for Own Account
	  	 	12	 

  
 i 

							
		 	 5.6   Disclosure of Information
	  	 	12	 
		 	 5.7   Investment Experience and Accredited Investor Status
	  	 	12	 
		 	 5.8   Restricted Securities
	  	 	12	 
		 	 5.9   Legends
	  	 	12	 
		 	 5.10  Financial Assurances
	  	 	12	 
			
	 6.
	 	Investors’ Conditions to Closing	  	 	13	 
			
		 	 6.1   Representations and Warranties
	  	 	13	 
		 	 6.2   Covenants
	  	 	13	 
			
	 7.
	 	Company’s Conditions to Closing	  	 	13	 
			
		 	 7.1   Representations and Warranties
	  	 	13	 
		 	 7.2   Covenants
	  	 	13	 
			
	 8.
	 	Mutual Conditions to Closing	  	 	13	 
			
		 	 8.1   Injunctions
	  	 	13	 
		 	 8.2   Absence of Litigation
	  	 	13	 
		 	 8.3   No Prohibition; Market Listing
	  	 	14	 
			
	 9.
	 	Additional Covenants and Agreements	  	 	14	 
			
		 	 9.1   Lock-Up
	  	 	14	 
		 	 9.2   Registration Rights
	  	 	14	 
		 	 9.3   Legend Removal
	  	 	22	 
			
	 10.
	 	Miscellaneous	  	 	22	 
			
		 	 10.1  Governing Law; Submission to Jurisdiction
	  	 	22	 
		 	 10.2  Waiver
	  	 	23	 
		 	 10.3  Notices
	  	 	23	 
		 	 10.4  Entire Agreement
	  	 	24	 
		 	 10.5  Amendments
	  	 	24	 
		 	 10.6  Headings; Nouns and Pronouns; Section References
	  	 	24	 
		 	 10.7  Severability
	  	 	24	 
		 	 10.8  Assignment
	  	 	24	 
		 	 10.9  Successors and Assigns
	  	 	24	 
		 	 10.10  Counterparts
	  	 	24	 
		 	 10.11  Third Party Beneficiaries
	  	 	24	 
		 	 10.12  No Strict Construction
	  	 	25	 
		 	 10.13  Survival of Warranties
	  	 	25	 
		 	 10.14  Remedies
	  	 	25	 

 Exhibit A – Schedule of Investors 

Exhibit B – Notices 
  

  
 ii 

 STOCK PURCHASE AGREEMENT 

THIS STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of April 10, 2020, by and among the investors listed
in Exhibit A attached hereto (the “Investors”) and Alnylam Pharmaceuticals, Inc. (the “Company”). 

WHEREAS, pursuant to the terms and subject to the conditions set forth in this Agreement, the Company desires to issue and sell to the
Investors, and the Investors desire to subscribe for and purchase from the Company, certain shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”).  

NOW, THEREFORE, in consideration of the following mutual promises and obligations, and for good and valuable consideration, the adequacy and
sufficiency of which are hereby acknowledged, the Investors and the Company agree as follows: 
 1. Definitions. 

1.1 Defined Terms. When used in this Agreement, the following terms shall have the respective meanings specified therefor below: 

“Affiliate” shall mean, with respect to any designated Person, any other Person that, directly or indirectly, controls, is
controlled by or is under common control with such designated Person. For purposes of this definition, “control” of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlled” and “controlling” have meanings correlative to the foregoing. For the
purposes of this Agreement, in no event shall any Investor or any of its Affiliates be deemed Affiliates of the Company or any of its Affiliates, nor shall the Company or any of its Affiliates be deemed Affiliates of any Investor or any of its
Affiliates. 
 “Agreement” shall have the meaning set forth in the Preamble, including all Exhibits attached hereto. 

“Business Day” shall mean any day that is not a Saturday, Sunday or other day on which commercial banks in New York
City are authorized or required by applicable Law to remain closed. For the avoidance of doubt, with respect to any notice or other communication required to be given hereunder, limitations on the operations of commercial banks due to the outbreak
of a contagious disease, epidemic or pandemic (including COVID-19), or any quarantine, shelter-in-place or similar or related directive, shall not prevent a day that would otherwise be a Business Day hereunder from so being a Business Day.

 “Disposition” or “Dispose of” shall mean any (i) offer, pledge, sale, contract to sell,
sale of any option or contract to purchase, purchase of any option or contract to sell, grant of any option, right or warrant for the sale of, or other disposition of or transfer of any Lock-Up Securities, including, without limitation, any
“short sale” or similar arrangement, or (ii) swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of Lock-Up Securities, whether any such
swap or transaction is to be settled by delivery of securities, in cash or otherwise.  

 “Effect” shall have the meaning set forth in the definition of “Material
Adverse Effect.” 
 “Governmental Authority” shall mean any court, agency, authority, department, regulatory
authority or other instrumentality of any government or country or of any national, federal, state, provincial, regional, county, city or other political subdivision of any such government or country or any supranational organization of which any
such country is a member. 
 “Intellectual Property” shall mean trademarks, trade names, trade dress, service
marks, copyrights, and similar rights (including registrations and applications to register or renew the registration of any of the foregoing), patents and patent applications, trade secrets, and any other similar intellectual property rights.

 “Intellectual Property License” shall mean any license, permit, authorization, approval, contract or consent
granted, issued by or with any Person relating to the use of Intellectual Property. 
 “Law” or
“Laws” shall mean, with respect to any Person, all laws, statutes, rules, regulations, orders, judgments, injunctions and/or ordinances of any Governmental Authority applicable to such Person or any of its properties or assets. 

“Material Adverse Effect” shall mean any change, event or occurrence (each, an “Effect”) that,
individually or when taken together with all other Effects, has (i) a material adverse effect on the business, financial condition, assets, results of operations or prospects of the Company and its Subsidiaries, taken as a whole, or (ii) a
material adverse effect on the Company’s ability to perform its obligations, or consummate the Transaction, in accordance with the terms of this Agreement, except in the case of (i) or (ii) to the extent that any such Effect results
from or arises out of: (A) changes in conditions in the United States or global economy or capital or financial markets generally, including any disruption thereof and any decline in the price of any security or any market index,
(B) changes in general legal, regulatory, political, economic or business conditions or changes in generally accepted accounting principles in the United States or interpretations thereof that, in each case, generally affect the biotechnology
or biopharmaceutical industries, (C) any change in the trading prices or trading volume of the Common Stock (it being understood that the facts giving rise to or contributing to any such change may be deemed to constitute, or be taken into
account when determining whether there has been or will be, a Material Adverse Effect, except to the extent any of such facts is an Effect referred to in clauses (A), (B) or (D) through (G) of this definition), (D) acts of war,
sabotage or terrorism, or any escalation or worsening of any such acts of war, sabotage or terrorism, (E) earthquakes, hurricanes, floods or other natural disasters, (F) the outbreak of contagious disease, epidemic or pandemic (including
COVID-19), any quarantine, shelter-in-place or similar or related directive, policy or guidance or other action by any Governmental Authority, or (G) any action taken by the Company required by this Agreement; provided that, with respect
to clauses (A), (B), (D), (E) and (F), such Effect does not have a material disproportionate and adverse impact on the Company relative to other companies in the biotechnology or biopharmaceutical industries. 

  
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 “Organizational Documents” shall mean (i) the Restated
Certificate of Incorporation of the Company dated as of April 25, 2019, as amended through the date of this Agreement and (ii) the Amended and Restated Bylaws of the Company effective as of April 25, 2019, as amended through the date of
this Agreement. 
 “Permitted Transferee” shall mean an Affiliate of an Investor; provided,
however, that no such Affiliate shall be deemed a Permitted Transferee for any purpose under this Agreement unless (i) the Permitted Transferee, prior to or simultaneously with such transfer or assignment, shall have agreed in writing
with the Company to be subject to and bound by all restrictions and obligations applicable to such Investor set forth in this Agreement, and (ii) such Investor shall, within five (5) days prior to such transfer, furnish to the Company
written notice of the name and address of such Permitted Transferee, details of its status as a Permitted Transferee and details of the Registrable Securities with respect to which such registration rights are being assigned. Following such
transfer, the Permitted Transferee shall be deemed to be an Investor for all purposes under this Agreement.  

“Person” shall mean any individual, partnership, limited liability company, firm, corporation, trust, unincorporated
organization, government or any department or agency thereof or other entity, as well as any syndicate or group that would be deemed to be a Person under Section 13(d)(3) of the Exchange Act. 

“Registrable Securities” shall mean (i) the Shares, together with any shares of Common Stock issued in respect thereof
as a result of any stock split, stock dividend, share exchange, merger, consolidation or similar recapitalization and (ii) any Common Stock issued as (or issuable upon the exercise of any warrant, right or other security that is issued as) a
dividend or other distribution with respect to, or in exchange or in replacement of, the shares of Common Stock described in clause (i) of this definition, excluding in all cases, however, (A) any Registrable Securities sold to or through
a broker or dealer or underwriter in a public distribution or a public securities transaction or (B) Registrable Securities eligible for resale pursuant to Rule 144(b)(1)(i) under the Securities Act without the requirement for the Company to be
in compliance with the current public information required under Rule 144(c)(1) under the Securities Act as to such Shares. 

“Registration Statement” shall mean any registration statement of the Company under the Securities Act that covers any of the
Registrable Securities pursuant to the provisions of this Agreement, including the related prospectus, all amendments and supplements to such registration statement (including post-effective amendments), and all exhibits and all materials
incorporated by reference or explicitly deemed to be incorporated by reference in such registration statement. 
 “Third
Party” shall mean any Person (other than a Governmental Authority) other than any Investor, the Company or any Affiliate of an Investor or the Company. 

“Transaction” shall mean the issuance and sale of the Shares by the Company, and the purchase of the Shares by the
Investors, in accordance with the terms hereof. 
 “Underwritten Offering” shall mean a registration in which
shares of Common Stock are sold to an underwriter for reoffering to the public. 

  
 3 

 1.2 Additional Defined Terms. In addition to the terms defined in Section 1.1,
the following terms shall have the respective meanings assigned thereto in the sections indicated below: 
  

			
	 Defined Term
	  	Section
	Closing	  	Section 3.1
	Common Stock	  	Recitals
	Company	  	Preamble
	Company SEC Documents	  	Section 4.11(a)
	Exchange Act	  	Section 4.11(a)
	Investor	  	Preamble
	Lock-Up Securities	  	Section 9.1
	Lock-Up Term	  	Section 9.1
	Modified Clause	  	Section 10.7
	Permits	  	Section 4.10
	Registration Notice	  	Section 9.2(b)
	Required Period	  	Section 9.2(e)
	Required Registration	  	Section 9.2(a)
	SEC	  	Section 4.7
	Securities Act	  	Section 4.11(a)
	Shares	  	Section 2.1
	Subsidiaries	  	Section 4.3
	Violation	  	Section
9.2(i)(i)

 2. Purchase and Sale of Common Stock. 

2.1 Purchase and Sale. Subject to the terms and conditions of this Agreement, at the Closing, the Company shall issue and sell to each
Investor, free and clear of all liens, other than any liens arising as a result of any action by any Investor, and each Investor shall purchase from the Company, the number of shares of Common Stock set forth opposite such Investor’s name on
Exhibit A for a purchase price of $103.791 per share. The shares of Common Stock issued to the Investors pursuant to this Agreement shall be referred to in this Agreement as the
“Shares.” 
  

	1 	 Equals 100% of the 30 calendar-day volume weighted average closing price for the Common Stock ending on and
including the last trading day prior to the execution of this Agreement, as observed on a Bloomberg Terminal. 

  
 4 

 2.2 Tax Treatment. For U.S. federal income and other applicable tax purposes, the
Investors and the Company agree to treat the Transaction as separate and independent from any transactions entered into by the Company and any of the Investors or their Affiliates, other than those contemplated by this Agreement, and to report the
transactions contemplated by this Agreement on U.S. federal income tax and other applicable tax returns in accordance with this Section 2.2 unless otherwise required by applicable Law. 

3. Closing; Deliveries. 

3.1 Closing. Subject to the satisfaction or waiver of all the conditions to the Closing set forth in Sections 6, 7 and 8 hereof, the
closing of the purchase and sale of the Shares hereunder (the “Closing”) shall be held at 10:00 a.m. Boston time on the date hereof, at the offices of Goodwin Procter LLP, 100 Northern Avenue, Boston, Massachusetts 02210, or at such other
time, date and location as the parties may agree in writing. 
 3.2 Deliveries. 

(a) Deliveries by the Company. At the Closing, the Company shall instruct its transfer agent to register the Shares in book-entry in
the name of each Investor and in the amounts set forth on Exhibit A. The Company shall also deliver at the Closing: (i) a certificate in form and substance reasonably satisfactory to each Investor and duly executed on behalf of the Company by
an authorized executive officer of the Company, certifying that the conditions to Closing set forth in Sections 6 and 8.3(b) of this Agreement have been fulfilled; (ii) a certificate of the secretary of the Company dated as of the date hereof
certifying (A) that attached thereto is a true and complete copy of the Amended and Restated Bylaws of the Company as in effect on the date hereof; (B) that attached thereto is a true and complete copy of all resolutions adopted by the
Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and the Transaction and that all such resolutions are in full force and effect, have not been amended and are all the resolutions adopted in
connection with the transactions contemplated hereby as of the date hereof; and (C) that attached thereto is a true and complete copy of the Company’s Restated Certificate of Incorporation as in effect on the date hereof; and (iii) a
legal opinion of Goodwin Procter LLP, counsel to the Company, in form and substance reasonably acceptable to the Investors. 
 (b)
Deliveries by the Investors. At the Closing, each Investor shall deliver to the Company the aggregate purchase price set forth opposite such Investor’s name on Exhibit A by wire transfer of immediately available United States funds to an
account designated by the Company. Each Investor shall also deliver, or cause to be delivered, at the Closing, a certificate in form and substance reasonably satisfactory to the Company duly executed by an authorized signatory of such Investor
certifying that the conditions to Closing set forth in Section 7 of this Agreement have been fulfilled. 
  

  
 5 

 4. Representations and Warranties of the Company. The Company hereby represents and
warrants to each Investor that: 
 4.1 Organization, Good Standing and Qualification. 

(a) Each of the Company and the Subsidiaries (as defined below) is a corporation duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Each of the Company and the Subsidiaries has all requisite
corporate power and corporate authority to own, lease and operate its properties and assets, to carry on its business as now conducted, and as proposed to be conducted as described in the Company SEC Documents, and the Company has all requisite
corporate power to enter into this Agreement to issue and sell the Shares and to perform its obligations under and to carry out the other transactions contemplated by this Agreement. 

(b) Each of the Company and its Subsidiaries is qualified to transact business and is in good standing in each jurisdiction in which the
character of the properties owned, leased or operated by the Company or Subsidiary, as applicable, or the nature of the business conducted by the Company or Subsidiary, as applicable, makes such qualification necessary, except where the failure to
be so qualified would not have a Material Adverse Effect. 
 4.2 Capitalization and Voting Rights. 

(a) The authorized capital of the Company as of the date hereof consists of: (i) 250,000,000 shares of Common Stock of which, as of
April 9, 2020, 113,382,204 shares are issued and outstanding and (ii) 5,000,000 shares of preferred stock, par value $0.01 per share, none of which are issued and outstanding as of the date of this Agreement. All of the issued and
outstanding shares of Common Stock (A) have been duly authorized and validly issued, (B) are fully paid and non-assessable, and (C) were issued in compliance with all applicable federal and state securities Laws. 

(b) All of the authorized shares of Common Stock are entitled to one (1) vote per share. 

(c) Except as described or referred to in Section 4.2(a) above, and as set forth in the Company SEC Documents, as of the date hereof,
there are not: (i) any outstanding equity securities, options, warrants, rights (including conversion or preemptive rights) or other agreements pursuant to which the Company is or may become obligated to issue, sell or repurchase any shares of
its capital stock or any other securities of the Company or (ii) any restrictions on the transfer of capital stock of the Company other than pursuant to state and federal securities Laws. 

(d) Except as set forth in the Company SEC Documents, the Company is not a party to or subject to any agreement or understanding relating to
the voting of shares of capital stock of the Company or the giving of written consents by a stockholder or director of the Company. 

  
 6 

 4.3 Subsidiaries. The Company has disclosed all of its subsidiaries required to be
disclosed pursuant to Item 601(b)(21) of Regulation S-K in an exhibit to its Annual Report on Form 10-K (the “Subsidiaries”). The Company owns, directly or indirectly, all of the capital stock or other equity interests of each
Subsidiary free and clear of any liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase
securities. 
 4.4 Authorization. 

(a) All requisite corporate action on the part of the Company, its directors and stockholders required by applicable Law for the
authorization, execution and delivery by the Company of this Agreement and the performance of all obligations of the Company hereunder, including the authorization, issuance and delivery of the Shares, has been taken. 

(b) This Agreement has been duly executed and delivered by the Company, and upon the due execution and delivery of this Agreement by the
Investors, this Agreement will constitute a valid and legally binding obligation of the Company, enforceable against the Company in accordance with its terms (except as such enforceability may be limited by (i) applicable bankruptcy,
insolvency, reorganization, moratorium or other Laws of general application relating to or affecting enforcement of creditors’ rights and (ii) rules of Law governing specific performance, injunctive relief or other equitable remedies and
limitations of public policy). 
 (c) No stop order or suspension of trading of the Common Stock has been implemented by The Nasdaq Stock
Market LLC, the SEC or any other Governmental Authority and remains in effect. 
 4.5 No Defaults. The Company is not in default under
or in violation of (a) the Organizational Documents, (b) any provision of applicable Law or any ruling, writ, injunction, order, Permit, judgment or decree of any Governmental Authority or (c) any agreement, arrangement or instrument,
whether written or oral, by which the Company or any of its assets are bound, except, in the case of subsections (b) and (c), as would not have a Material Adverse Effect. There exists no condition, event or act which after notice, lapse of
time, or both, would constitute a default or violation by the Company under any of the foregoing, except, in the case of subsections (b) and (c), as would not have a Material Adverse Effect. 

4.6 No Conflicts. The execution, delivery and performance of this Agreement and compliance with the provisions hereof by the Company do
not and shall not: (a) violate any provision of applicable Law or any ruling, writ, injunction, order, permit, judgment or decree of any Governmental Authority, (b) constitute a breach of, or default under (or an event which, with notice
or lapse of time or both, would become a default under) or conflict with, or give rise to any right of termination, cancellation or acceleration of, any agreement, arrangement or instrument, whether written or oral, by which the Company or any of
its assets are bound, (c) violate or conflict with any of the provisions of the Organizational Documents or (d) result in any encumbrance upon any of the Shares, other than restrictions pursuant to this Agreement or securities Laws, or any
of the properties or assets of the Company or any Subsidiary, except, in the case of subsections (a) and (b), as would not have a Material Adverse Effect. 

  
 7 

 4.7 No Governmental Authority or Third-Party Consents. No consent, approval,
authorization or other order of, or filing with, or notice to, any Governmental Authority or other Third Party is required to be obtained or made by the Company in connection with the authorization, execution and delivery by the Company of this
Agreement or with the authorization, issuance and sale by the Company of the Shares, except such filings as may be required to be made with the Securities and Exchange Commission (the “SEC”) and with any state blue sky or securities
regulatory authority, which filings shall be made in a timely manner in accordance with all applicable Laws. 
 4.8 Valid Issuance of
Shares. When issued, sold and delivered at the Closing in accordance with the terms hereof, the Shares shall be duly authorized, validly issued, fully paid and nonassessable, free from any liens, encumbrances or restrictions on transfer,
including preemptive rights, rights of first refusal or other similar rights, other than as arising pursuant to this Agreement, as a result of any action by any Investor or under federal or state securities Laws. 

4.9 Litigation. Except as set forth in the Company SEC Documents filed prior to the date of this Agreement, there is no action, suit,
proceeding or investigation pending (of which the Company has received notice or otherwise has knowledge) or, to the Company’s knowledge, threatened, against the Company or which the Company intends to initiate which has had or is reasonably
likely to have a Material Adverse Effect. 
 4.10 Licenses and Other Rights; Compliance with Laws. The Company has all franchises,
permits, licenses and other rights and privileges (“Permits”) necessary to permit it to own its properties and to conduct its business as presently conducted and is in compliance thereunder, except where the failure to be in compliance
does not and would not have a Material Adverse Effect. The Company has not taken any action that would interfere with the Company’s ability to renew all such Permit(s), except where the failure to renew such Permit(s) would not have a Material
Adverse Effect. The Company is and has been in compliance with all Laws applicable to its business, properties and assets, and to the products and services sold by it, except where the failure to be in compliance does not and would not have a
Material Adverse Effect. 
 4.11 Company SEC Documents; Financial Statements; Nasdaq Stock Market. 

(a) Since December 31, 2017, the Company has timely filed all required reports, schedules, forms, statements and other documents
(including exhibits and all other information incorporated therein), and any required amendments to any of the foregoing, with the SEC (the “Company SEC Documents”). As of their respective filing dates, each of the Company SEC Documents
complied in all material respects with the requirements of the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of
the SEC promulgated thereunder applicable to such Company SEC Documents, and no Company SEC Documents when filed, declared effective or mailed, as applicable, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 

  
 8 

 (b) The financial statements of the Company included in its Annual Report on Form 10-K for
the fiscal year ended December 31, 2019 comply as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto, have been prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present in all material respects the financial position of the Company as of the
dates thereof and the results of its operations and cash flows for the periods then ended. Except (i) as set forth in the Company SEC Documents or (ii) for liabilities incurred in the ordinary course of business subsequent to the date of
the most recent balance sheet contained in the Company SEC Documents, the Company has no liabilities, whether absolute or accrued, contingent or otherwise, other than those that would not, individually or in the aggregate, have a Material Adverse
Effect. 
 (c) As of the date of this Agreement, the Common Stock is listed on The Nasdaq Global Select Market, and the Company has taken no
action designed to, or which is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from The Nasdaq Global Select Market. As of the date of this Agreement, the Company
has not received any notification that, and has no knowledge that the SEC or The Nasdaq Stock Market LLC is contemplating terminating such listing or registration. 

(d) Other than as has been disclosed to the Investors, there are no outstanding or unresolved comments in comment letters received from the
SEC or its staff. 
 4.12 Absence of Certain Changes. Except as disclosed in the Company SEC Documents, since December 31, 2019,
there has not occurred any event that has caused or would reasonably be expected to cause a Material Adverse Effect. 
 4.13 Internal
Controls; Disclosure Controls and Procedures. The Company maintains internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. The Company has implemented the “disclosure controls and procedures” (as
defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) required in order for the Principal Executive Officer and Principal Financial Officer of the Company to engage in the review and evaluation process mandated by the Exchange Act, and is
in compliance with such disclosure controls and procedures in all material respects. Each of the Principal Executive Officer and the Principal Financial Officer of the Company (or each former Principal Executive Officer of the Company and each
former Principal Financial Officer of the Company, as applicable) has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 with respect to all reports, schedules, forms, statements and other documents required
to be filed by the Company with the SEC. 

  
 9 

 4.14 Intellectual Property. The Intellectual Property that is owned by the Company is
owned free from any liens or restrictions, and all of the Company’s material Intellectual Property Licenses are in full force and effect in accordance with their terms and are free of any liens or restrictions except (a) where the failure
to be free from such liens or restrictions would not have a Material Adverse Effect or (b) as set forth in any such Intellectual Property License. Except as set forth in the Company SEC Documents, there is no legal claim or demand of any Person
pertaining to, or any proceeding which is pending (of which the Company has received notice or otherwise has knowledge) or, to the knowledge of the Company, threatened, (i) challenging the right of the Company in respect of any Company
Intellectual Property, or (ii) that claims that any default exists under any Intellectual Property License, except, in the case of (i) and (ii) above, where any such claim, demand or proceeding would not have a Material Adverse
Effect. 
 4.15 Offering. Subject to the accuracy of the Investors’ representations set forth in Sections 5.5, 5.6, 5.7, 5.8 and
5.9, the offer, sale and issuance of the Shares to be issued in conformity with the terms of this Agreement constitute transactions which are exempt from the registration requirements of the Securities Act and from all applicable state registration
or qualification requirements. Neither the Company nor any Person acting on its behalf will take any action that would cause the loss of such exemption. 

4.16 No Integration. The Company has not, directly or through any agent, sold, offered for sale, solicited offers to buy or otherwise
negotiated in respect of, any security (as defined in the Securities Act) which is or will be integrated with the Shares sold pursuant to this Agreement in a manner that would require the registration of the Shares under the Securities Act. 

4.17 Brokers’ or Finders’ Fees. No broker, finder, investment banker or other Person is entitled to any brokerage,
finder’s or other fee or commission from the Company in connection with the transactions contemplated by this Agreement. 
 4.18 Not
Investment Company. The Company is not, and immediately after receipt of the aggregate purchase price for the Shares will not be, an “investment company” as defined in the Investment Company Act of 1940, as amended. 

4.19 No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Shares
by any form of general solicitation or general advertising. 
 4.20 Foreign Corrupt Practices. Neither the Company, nor to the
knowledge of the Company, any agent or other person acting on behalf of the Company, has: (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic
political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution
made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of Law or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended, or any
applicable non-U.S. anti-bribery Law. 

  
 10 

 4.21 Regulation M Compliance. The Company has not taken, directly or indirectly, any
action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Shares. 

4.22 Office of Foreign Assets Control. Neither the Company nor, to the Company’s knowledge, any director, officer, agent, employee
or Affiliate of the Company is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department. 

4.23 U.S. Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon an Investor’s request. 

5. Representations and Warranties of the Investors. Each Investor hereby represents and warrants to the Company, on behalf of itself,
that: 
 5.1 Organization; Good Standing. The Investor is duly organized or formed, validly existing and in good standing under the
laws of the jurisdiction of its organization or formation. The Investor has all requisite power and authority to enter into this Agreement, to purchase the number of shares of Common Stock set forth opposite the Investor’s name on Exhibit A and
to perform its obligations under and to carry out the other transactions contemplated by this Agreement. 
 5.2 Authorization. All
requisite action on the part of the Investor and its general and limited partners, required by applicable Law for the authorization, execution and delivery by the Investor of this Agreement and the performance of all of its obligations hereunder,
including the subscription for and purchase of the number of shares of Common Stock set forth opposite the Investor’s name on Exhibit A, has been taken. This Agreement has been, duly executed and delivered by the Investor and upon the due
execution and delivery hereof by the Company and each other Investor, will constitute valid and legally binding obligations of the Investor, enforceable against the Investor in accordance with its terms (except as such enforceability may be limited
by (a) applicable bankruptcy, insolvency, reorganization, moratorium or other Laws of general application relating to or affecting enforcement of creditors’ rights and (b) rules of Law governing specific performance, injunctive relief
or other equitable remedies and limitations of public policy). 
 5.3 No Conflicts. The execution, delivery and performance of this
Agreement and compliance with the provisions hereof by the Investor do not and shall not: (a) violate any provision of applicable Law or any ruling, writ, injunction, order, permit, judgment or decree of any Governmental Authority,
(b) constitute a breach of, or default under (or an event which, with notice or lapse of time or both, would become a default under) or conflict with, or give rise to any right of termination, cancellation or acceleration of, any agreement,
arrangement or instrument, whether written or oral, by which the Investor or any of its assets, are bound, or (c) violate or conflict with any of the provisions of the Investor’s organizational documents (including any articles or
memoranda of organization or association, charter, bylaws or similar documents), except, in the case of subsections (a) or (b), as would not have a material adverse effect on the ability of the Investor to consummate the Transactions and
perform its obligations under this Agreement. 

  
 11 

 5.4 No Governmental Authority or Third-Party Consents. No consent, approval,
authorization or other order of any Governmental Authority or other Third Party is required to be obtained by the Investor in connection with the authorization, execution and delivery of this Agreement or with the subscription for and purchase of
the Shares. 
 5.5 Purchase Entirely for Own Account. The shares of Common Stock purchased by the Investor hereunder shall be acquired
for investment for the Investor’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and the Investor has no present intention of selling, granting any participation or otherwise
distributing such shares. The Investor does not have and will not have as of the Closing any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participation to a Person any of the Shares. 

5.6 Disclosure of Information. The Investor has received all the information from the Company and its management that the Investor
considers necessary for deciding whether to purchase any Shares hereunder. The Investor further represents that it has had an opportunity to ask questions and receive answers from the Company regarding the Company, its financial condition, results
of operations and prospects and the terms and conditions of the offering of the Shares sufficient to enable it to evaluate its investment. 

5.7 Investment Experience and Accredited Investor Status. The Investor is an “accredited investor” (as defined in Regulation D
under the Securities Act). The Investor has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Shares to be purchased by the Investor hereunder. 

5.8 Restricted Securities. The Investor understands that the shares of Common Stock to be purchased by the Investor hereunder, when
issued, shall be “restricted securities” under the federal securities Laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such Laws such shares may be resold without
registration under the Securities Act only in certain limited circumstances. The Investor represents that it is familiar with Rule 144 of the Securities Act, as presently in effect. 

5.9 Legends. The Investor understands that the shares of Common Stock to be purchased hereunder shall be in book-entry form and subject
to the following legend: 
 “These securities have not been registered under the Securities Act of 1933. They may not be sold, offered
for sale, pledged or hypothecated in the absence of a registration statement in effect with respect to the securities under the Securities Act or an opinion of counsel (which counsel shall be reasonably satisfactory to Alnylam Pharmaceuticals, Inc.)
that such registration is not required or unless sold pursuant to Rule 144 of the Securities Act.” 
 5.10 Financial Assurances.
The Investor has access to cash in an amount sufficient to pay to the Company the aggregate purchase price for the number of shares of Common Stock set forth opposite the Investor’s name on Exhibit A. 

  
 12 

 6. Investors’ Conditions to Closing. Each Investor’s obligation to purchase
the shares of Common Stock set forth opposite such Investor’s name on Exhibit A at the Closing is subject to the fulfillment as of the Closing of the following conditions (unless waived in writing by such Investor): 

6.1 Representations and Warranties. The representations and warranties made by the Company in Section 4 hereof shall be true and
correct as of the date of this Agreement, except to the extent such representations and warranties were specifically made as of a particular date, in which case such representations and warranties shall have been true and correct as of such date.

 6.2 Covenants. All covenants and agreements contained in this Agreement to be performed or complied with by the Company at or prior
to the Closing shall have been performed or complied with in all material respects. 
 7. Company’s Conditions to Closing. The
Company’s obligation to issue and sell the Shares at the Closing is subject to the fulfillment as of the Closing of the following conditions (unless waived in writing by the Company): 

7.1 Representations and Warranties. The representations and warranties made by each Investor in Section 5 hereof shall be true and
correct as of the date of this Agreement, except to the extent such representations and warranties were specifically made as of a particular date, in which case such representations and warranties shall have been true and correct as of such date.

 7.2 Covenants. All covenants and agreements contained in this Agreement to be performed or complied with by each Investor at or
prior to the Closing shall have been performed or complied with in all material respects. 
 8. Mutual Conditions to Closing. The
obligations of the Investors and the Company to consummate the Closing are subject to the fulfillment as of the Closing of the following conditions: 

8.1 Injunctions. There shall be no Law or ruling enacted, promulgated, issued, entered, amended or enforced by any Governmental
Authority in effect enjoining, restraining, preventing or prohibiting the consummation of the transactions contemplated by this Agreement or making the consummation of the transactions contemplated by this Agreement illegal. 

8.2 Absence of Litigation. There shall be no action, suit, proceeding or investigation by a Governmental Authority pending or currently
threatened in writing against the Company or the Investors that questions the validity of this Agreement, the right of the Company or the Investors to enter into this Agreement or to consummate the transactions contemplated hereby or thereby or
which, if determined adversely, would impose substantial monetary damages on the Company or the Investors as a result of the consummation of the transactions contemplated by this Agreement. 

  
 13 

 8.3 No Prohibition; Market Listing. (a) No provision of any applicable Law and
no decree that prohibits, makes illegal or enjoins the consummation of the Transaction shall be in effect; and (b) the Shares shall be eligible for listing on The Nasdaq Global Select Market. 

9. Additional Covenants and Agreements. 

9.1 Lock-Up. From and after the Closing and until the date that is ninety (90) days after the date of the Closing (the
“Lock-Up Term”), without the prior written approval of the Company, no Investor shall Dispose of (x) any of the Shares, together with any shares of capital stock issued in respect thereof as a result of any stock split, stock
dividend, share exchange, merger, consolidation or similar recapitalization, and (y) any Common Stock issued as (or issuable upon the exercise of any warrant, right or other security that is issued as) a dividend or other distribution with
respect to, or in exchange or in replacement of, the Shares or shares of capital stock described in clause (x) of this sentence (collectively, the “Lock-Up Securities”); provided, however, that the foregoing shall
not prohibit an Investor from transferring any of the Lock-Up Securities to a Permitted Transferee. 
 9.2 Registration Rights. 

(a) Required Registration. On or prior to the date that is sixty (60) days after the date of the Closing, the Company shall file a
Registration Statement under the Securities Act (the “Required Registration”) to cover the resale of the Registrable Securities and shall use all reasonable efforts to, as soon as practicable thereafter, effect the registration of
the Registrable Securities to permit or facilitate the sale and distribution of the Registrable Securities, subject however, to the conditions and limitations set forth herein. 

(b) Company Registration. Effective from the expiration of the Lock-Up Term, the Company shall notify each Investor that holds
Registrable Securities in writing at least ten (10) days prior to the filing of any Registration Statement related to an Underwritten Offering including shares of Common Stock by one or more selling stockholders (other than the Investors)
(“Registration Notice”) and will afford each Investor an opportunity, subject to the terms and conditions of this Agreement, to include in such Registration Statement the number of Registrable Securities then held by such Investor
that such Investor wishes to include in such Registration Statement. Each Investor desiring to include in any such Registration Statement all or any part of the Registrable Securities held by such Investor shall, within five (5) days after
receipt of the Registration Notice, so notify the Company in writing, and in such notification, inform the Company of the number of Registrable Securities such Investor wishes to include in such Registration Statement. If an Investor decides not to
include Registrable Securities in any Registration Statement thereafter filed by the Company, such Investor shall nevertheless continue to have the right to include Registrable Securities in any subsequent Registration Statement or Registration
Statements as may be filed by the Company with respect to offerings of its securities, all upon the terms and conditions set forth herein. Each Investor shall keep confidential and not disclose to any Third Party (i) its receipt of any
Registration Notice and (ii) any information regarding the proposed offering as to which such notice is delivered, except as required by law, regulation or as compelled by subpoena. The right of any such Investor to include Registrable
Securities in a registration statement pursuant to this Section 9.2(b) shall be conditioned upon such Investor’s participation in such underwriting and the inclusion of such 

  
 14 

 
Investor’s Registrable Securities in the underwriting to the extent provided herein. The Investors proposing to distribute their Registrable Securities through such underwriting shall enter
into an underwriting agreement in customary form with the managing underwriter or underwriters selected for such underwriting. Notwithstanding any other provision of this Section 9.2(b), if the managing underwriter for the Underwritten
Offering determines in good faith that marketing factors require a limitation of the number of shares of Registrable Securities to be included in such Underwritten Offering and advises the Investors of such determination in writing, then the
managing underwriter may exclude shares (including up to 100% of the Registrable Securities) from the registration and the underwriting, with the number of Registrable Securities, if any, included in the registration and the underwriting being
allocated to each of Investors requesting inclusion of their Registrable Securities in such Registration Statement and all other stockholders selling shares of Common Stock pursuant to such Registration Statement on a pro rata basis based on the
total number of shares of Common Stock then held by each such Investor or other stockholder. Notwithstanding the foregoing, the Company shall have the right to terminate or withdraw any registration initiated by it under this
Section 9.2(b) prior to the effectiveness of such registration whether or not any Investor has elected to include securities in such registration. 

(c) Primary Shares in Required Registration. With respect to the Required Registration, the Company may also propose to sell shares of
Common Stock on its own behalf. 
 (d) Revocation of Required Registration. With respect to the Required Registration, each Investor
may, at any time prior to the effective date of such Registration Statement, waive the requirement to have all of any of the Registrable Securities owned by such Investor included therein by providing a written notice to the Company, in which case
such Registrable Securities will not be included in such Registration Statement. 
 (e) Continuous Effectiveness of Registration
Statement. The Company will use its reasonable efforts to cause the Registration Statement filed pursuant to this Section 9 to be declared effective by the SEC or to become effective under the Securities Act as promptly as practicable and
to keep each such Registration Statement that has been declared or becomes effective continuously effective until the earlier of (i) such time as any securities registered pursuant to this Section 9 shall cease to become Registrable
Securities and (ii) one (1) year (the “Required Period”). 
 (f) Obligations of the Company. The Company
shall, as expeditiously as reasonably possible following the Closing: 
  

	 	(i)	 prepare and file with the SEC a Registration Statement with respect to the Registrable Securities;
provided that at least five (5) Business Days prior to filing the Registration Statement or any prospectus or any amendments or supplements thereto, the Company shall furnish to the Investors and their counsel copies of all such
documents proposed to be filed, and the Investors shall have the opportunity to comment on any information that is contained therein and the Company shall consider all such comments in good faith and shall make the corrections reasonably requested
by the Investors with respect to any information pertaining solely to the Investors and the plan of distribution prior to filing the Registration Statement or other documents; 

  
 15 

	 	(ii)	 prepare and file with the SEC such amendments and post-effective amendments to the Registration Statement and
any prospectus used in connection therewith as may be necessary to keep the Registration Statement effective for the Required Period, and cause the prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be
filed pursuant to Rule 424 under the Securities Act, to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such Registration Statement for the Required Period; provided
that at least five (5) Business Days prior to filing any such amendments and post effective amendments or supplements thereto, the Company shall furnish to the Investors and their counsel copies of all such documents proposed to be filed, and
the Investors have the opportunity to comment on any information that is contained therein and the Company shall consider all such comments in good faith and make the corrections reasonably requested by the Investors with respect to any information
pertaining solely to the Investors and the plan of distribution prior to filing any such documents; 

  

	 	(iii)	 furnish to the Investors such numbers of copies of the Registration Statement, each amendment and supplement
thereto, the prospectus included in such Registration Statement (including each preliminary prospectus or free writing prospectus) in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in
order to facilitate the disposition of Registrable Securities owned by them; 

  

	 	(iv)	 notify the Investors, promptly after the Company shall receive notice thereof, of the time when the
Registration Statement becomes or is declared effective or when any amendment or supplement or any prospectus forming a part of such Registration Statement has been filed; 

 

	 	(v)	 notify the Investors promptly of any request by the SEC for the amending or supplementing of the Registration
Statement or prospectus or for additional information and promptly deliver to the Investors copies of any comments received from the SEC; 

  

	 	(vi)	 notify the Investors promptly of any stop order suspending the effectiveness of the Registration Statement or
Prospectus or the initiation of any proceedings for that purpose, and use all reasonable efforts to obtain the withdrawal of any such order or the termination of such proceedings; 

  
 16 

	 	(vii)	 use all reasonable efforts to register and qualify the Registrable Securities covered by the Registration
Statement under such other securities or blue sky Laws of such jurisdictions as shall be reasonably requested by the Investors, use all reasonable efforts to keep each such registration or qualification effective, including through new filings, or
amendments or renewals, during the Required Period, and notify the Investors of the receipt of any written notification with respect to any suspension of any such qualification; provided, however, that the Company shall not be required
in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, except as may be required by the Securities Act; 

 

	 	(viii)	 promptly notify the Investors at any time when a prospectus relating thereto is required to be delivered under
the Securities Act of the happening of any event as a result of which the prospectus included in the Registration Statement or any offering memorandum or other offering document includes an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, and promptly prepare a supplement or amendment to such prospectus or file any other required
document so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of material fact or omit to state any fact necessary to make the statements therein not misleading;

  

	 	(ix)	 use all reasonable efforts to comply with all applicable rules and regulations of the SEC relating to such
registration and make generally available to its security holders earning statements satisfying the provisions of Section 11(a) of the Securities Act, provided that the Company will be deemed to have complied with this Section 9.2(f)(ix)
with respect to such earning statements if it has satisfied the provisions of Rule 158 promulgated under the Securities Act; 

  

	 	(x)	 if requested by the Investors, promptly incorporate in a prospectus supplement or post-effective amendment such
information as the Investors reasonably request to be included therein, with respect to the Registrable Securities being sold by the Investors, and promptly make all required filings of such prospectus supplement or post-effective amendment; and

  
 17 

	 	(xi)	 cause the Registrable Securities covered by such Registration Statement to be listed on each securities
exchange, if any, on which equity securities issued by the Company are then listed. 

 (g) Information; Investor
Covenants. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 9 with respect to the Registrable Securities that the Investors furnish to the Company such information regarding
itself and the Registrable Securities held by it as is required by Regulation S-K Item 507 or as shall be necessary to effect the registration of the Investor’s Registrable Securities. Each Investor agrees that, upon receipt of any notice
from the Company of the happening of an event pursuant to Section 9.2(f)(viii) hereof, such Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement covering such Registrable Securities,
until the Investors are advised by the Company that such dispositions may again be made. Each Investor covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it or an exemption
therefrom in connection with sales of Registrable Securities pursuant to any Registration Statement. 
 (h) Expenses. The Company
will pay all expenses associated with the preparation and filing of a Registration Statement, including, without limitation, filing fees, the Company’s counsel and accounting fees and expenses, costs associated with clearing the Registrable
Securities for sale under applicable state securities laws and listing fees. In no event shall the Company be responsible for any discounts, commissions, fees of underwriters, selling brokers, dealer managers or similar securities industry
professionals with respect to the Registrable Securities being sold. 
 (i) Indemnification. In the event any Registrable Securities
are included in a Registration Statement under this Agreement: 
  

	 	(i)	 The Company shall indemnify and hold harmless each Investor including Registrable Securities in any such
Registration Statement, any underwriter (as defined in the Securities Act) for such Investor and each Person, if any, who controls such Investor or underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act and the officers, directors, owners, agents and employees of such controlling Persons, against any and all losses, claims, damages or liabilities (joint or several) to which they may become subject under any securities Laws including,
without limitation, the Securities Act, the Exchange Act, or any other statute or common law of the United States or any other country or political subdivision thereof, or otherwise, including the amount paid in settlement of any litigation
commenced or threatened (including any amounts paid pursuant to or in settlement of claims made under the indemnification or contribution provisions of any underwriting or similar agreement entered into by such Investor in connection with any
offering or sale of securities covered by this Agreement), and shall promptly reimburse them, as and when incurred, for any legal or other 

  
 18 

	 	
expenses incurred by them in connection with investigating any claims and defending any actions, insofar as any such losses, claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon any of the following statements, omissions or violations (each, a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference into
such Registration Statement, including any preliminary prospectus or final prospectus contained therein or any free writing prospectus or any amendments or supplements thereto, or in any offering memorandum or other offering document relating to the
offering and sale of such securities, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading or (iii) any violation or alleged
violation by the Company (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities Law, or any rule or regulation promulgated under any state securities Law, in each case arising from such Registration
Statement; provided, however, the Company shall not be liable in any such case for any such loss, claim, damage, liability or action to the extent that it (A) arises out of or is based upon a Violation which occurs solely in reliance upon and
in conformity with written information furnished expressly for use in connection with such registration by such Investor; or (B) is caused by such Investor’s disposition of Registrable Securities after notice from the Company pursuant to
Section 9.2(f)(vi) during any period during which such Investor is obligated to discontinue any disposition of Registrable Securities as a result of any stop order suspending the effectiveness of any Registration Statement or prospectus with
respect to Registrable Securities. The Company shall pay, as incurred, any legal or other expenses reasonably incurred by any Person intended to be indemnified pursuant to this Section 9.2(i)(i), in connection with investigating or defending
any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 9.2(i)(i) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed. 

  

	 	(ii)	 Each Investor including Registrable Securities in a Registration Statement shall indemnify and hold harmless
the Company, each of its directors, each of its officers who has signed the Registration Statement, each Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and
the officers, directors, owners, agents and employees of such controlling Persons, any underwriter, any other 

  
 19 

	 	
Investor selling securities in such Registration Statement and any controlling Person of any such underwriter or other Investor, against any losses, claims, damages or liabilities (joint or
several) to which any of the foregoing Persons may become subject, under liabilities (or actions in respect thereto) which arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation:
(i) arises out of or is based upon a Violation which occurs solely in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by such Investor; or (ii) is caused by such
Investor’s disposition of Registrable Securities after notice from the Company pursuant to Section 9.2(f)(vi) during any period during which such Investor is obligated to discontinue any disposition of Registrable Securities as a result of
any stop order suspending the effectiveness of any Registration Statement or prospectus with respect to Registrable Securities. Each such Investor shall pay, as incurred, any legal or other expenses reasonably incurred by any Person intended to be
indemnified pursuant to this Section 9.2(i)(ii), in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 9.2(i)(ii) shall
not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without consent of each such Investor, which consent shall not be unreasonably withheld. 

 

	 	(iii)	 Promptly after receipt by an indemnified party under this Section 9.2(i) of notice of the commencement of
any action (including any action by a Governmental Authority), such indemnified party shall, if a claim in respect thereof is to be made against any indemnifying party under this Section 9.2(i), deliver to the indemnifying party a written
notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof
with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the reasonable fees and expenses to be paid by the indemnifying party, if representation of such
indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure
to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial in a material respect to its ability to defend such action, shall relieve such indemnifying party of any liability to
the indemnified party under this Section 9.2(i), but the omission so to deliver written notice to the indemnifying party shall not relieve it of any liability that it may have to any indemnified party otherwise than under this
Section 9.2(i). 

  
 20 

	 	(iv)	 In order to provide for just and equitable contribution to joint liability in any case in which a claim for
indemnification is made pursuant to this Section 9.2(i) but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of
appeal) that such indemnification may not be enforced in such case notwithstanding the fact that this Section 9.2(i) provided for indemnification in such case, the Company and each Investor including Registrable Securities in a Registration
Statement shall contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in proportion to the relative fault of the Company, on the one hand, and such Investor, severally, on
the other hand; provided, however, that in any such case, no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation; provided further, however, that in no event shall any contribution under this Section 9.2(i)(iv) on the part of any Investor exceed the net proceeds received by such Investor from the sale of Registrable Securities
giving rise to such contribution obligation, except in the case of willful misconduct or fraud by such Investor. 

  

	 	(v)	 The obligations of the Company and the Investors under this Section 9.2(i) shall survive the completion of
any offering of Registrable Securities in a Registration Statement under this Agreement and otherwise. 

 (j) SEC
Reports. With a view to making available to the Investors the benefits of Rule 144 under the Securities Act and any other rule or regulation of the SEC that may at any time permit the Investors to sell Registrable Securities of the Company to
the public without registration, the Company agrees to at any time that it is a reporting company under Section 13 or 15(d) of the Exchange Act: 
  

	 	(i)	 file with the SEC in a timely manner all reports and other documents required of the Company under the Exchange
Act; and 

  

	 	(ii)	 furnish to each Investor, so long as such Investor owns any Registrable Securities, forthwith upon request
(i) a written statement by the Company that it has complied with the reporting requirements of the Exchange Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports

  
 21 

	 	
and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing the Investor of any rule or regulation of the SEC (exclusive of Rule 144A)
which permits the selling of any Registrable Securities without registration. 

 (k) Assignment of Registration Rights.
The rights to cause the Company to register any Registrable Securities pursuant to this Agreement shall automatically be assigned in whole or in part (but only with all restrictions and obligations set forth in this Agreement) by an Investor to a
Permitted Transferee which acquires Registrable Securities from such Investor. 
 9.3 Legend Removal. After the expiration of the
Lock-Up Term, the Company shall cause the legends set forth in Section 5.10 to be removed from the shares of Common Stock held by an Investor, no later than two (2) Business Days from receipt of a written request from such Investor
pursuant to this Section 9.3, if (i) such shares have been resold under an effective Registration Statement, (ii) such shares have been or will be transferred in compliance with Rule 144 under the Securities Act, (iii) such
shares are eligible for resale pursuant to Rule 144(b)(1)(i) under the Securities Act without the requirement for the Company to be in compliance with the current public information required under Rule 144(c)(1) under the Securities Act as to such
Shares and without volume or manner-of-sale restrictions or (iv) such Investor shall have provided the Company with an opinion of counsel, reasonably satisfactory to the Company, stating that such securities may lawfully be transferred without
registration under the Securities Act. 
 10. Miscellaneous. 

10.1 Governing Law; Submission to Jurisdiction. 

(a) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS OF THE STATE OF
NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO CONFLICTS OF LAW OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS. 
 (b) Jurisdiction. Each of the parties hereto hereby irrevocably and unconditionally submits, for itself
and its property, to the non-exclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in
any action or proceeding arising out of, relating to or in connection with this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of
any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by applicable Law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the 

  
 22 

 
judgment or in any other manner provided by applicable Law. Each of the parties hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so,
any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in this Section 10.1(b). Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

(c) Service of Process. Each of the parties hereto irrevocably consents to service of process in the manner provided for notices in
Section 10.3. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable Law. Each of the parties hereto waives personal service of any summons, complaint or other process,
which may be made by any other means permitted by New York law. 
 (d) Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS PURCHASE AND SALE AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY HERETO WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS PURCHASE AND SALE AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
10.1(d). 
 10.2 Waiver. Waiver by a party of a breach hereunder by any other party shall not be construed as a waiver of any
subsequent breach of the same or any other provision. No delay or omission by a party in exercising or availing itself of any right, power or privilege hereunder shall preclude the later exercise of any such right, power or privilege by such party.
No waiver shall be effective unless made in writing with specific reference to the relevant provision(s) of this Agreement and signed by a duly authorized representative of the party granting the waiver. 

10.3 Notices. All notices, instructions and other communications hereunder or in connection herewith shall be in writing, shall be sent
to the address of the relevant party set forth on Exhibit B attached hereto and be effective (a) upon receipt when sent through the mails, registered or certified mail, return receipt requested, postage prepaid, with such receipt to be
effective the date of delivery indicated on the return receipt, (b) upon receipt when sent by an overnight courier, (c) on the date personally delivered to an authorized officer of the party to which sent or (d) on the date
transmitted by electronic mail with a confirmation of receipt, in all cases, with a copy emailed to the recipient at the applicable address. Any party may change its address by giving notice to the other parties in the manner provided above. 

  
 23 

 10.4 Entire Agreement. This Agreement contains the entire agreement among the parties with
respect to the subject matter hereof and supersedes all prior and contemporaneous arrangements or understandings, whether written or oral, with respect hereto and thereto. 

10.5 Amendments. No provision in this Agreement shall be supplemented, deleted or amended except in a writing executed by an authorized
representative of each of the Investors and the Company. 
 10.6 Headings; Nouns and Pronouns; Section References. Headings in this
Agreement are for convenience of reference only and shall not be considered in construing this Agreement. Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the
singular form of names and pronouns shall include the plural and vice-versa. References in this Agreement to a section or subsection shall be deemed to refer to a section or subsection of this Agreement unless otherwise expressly stated. 

10.7 Severability. If, under applicable Laws, any provision hereof is invalid or unenforceable, or otherwise directly or indirectly
affects the validity of any other material provision(s) of this Agreement in any jurisdiction (“Modified Clause”), then, it is mutually agreed that this Agreement shall endure and that the Modified Clause shall be enforced in such
jurisdiction to the maximum extent permitted under applicable Laws in such jurisdiction; provided that the parties shall consult and use all reasonable efforts to agree upon, and hereby consent to, any valid and enforceable modification of
this Agreement as may be necessary to avoid any unjust enrichment of another party and to match the intent of this Agreement as closely as possible, including the economic benefits and rights contemplated herein. 

10.8 Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either the Investors or the
Company without (a) the prior written consent of the Company in the case of any assignment by an Investor, except as provided in Section 9.2(k) with respect to an Investor’s assignment to a Permitted Transferee, or (b) the prior
written consent of the Investors in the case of an assignment by the Company. 
 10.9 Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
 10.10
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but which together shall constitute one and the same instrument. 

10.11 Third Party Beneficiaries. None of the provisions of this Agreement shall be for the benefit of or enforceable by any Third Party,
including any creditor of any party hereto, except with respect to a Permitted Transferee. No Third Party (other than a Permitted Transferee) shall obtain any right under any provision of this Agreement or shall by reason of any such provision make
any claim in respect of any debt, liability or obligation (or otherwise) against any party hereto. 

  
 24 

 10.12 No Strict Construction. This Agreement has been prepared jointly and will not
be construed against either party. 
 10.13 Survival of Warranties. The representations and warranties of the Company and the
Investors contained in this Agreement shall survive the Closing for eighteen (18) months, except for the representations and warranties set forth in Sections 4.1, 4.2, 4.4, 4.5(a), 4.6(c), 4.8, 4.15, 4.16, 4.17, 5.1, 5.2, 5.5, 5.7, 5.8 and 5.9,
which shall survive the Closing. The parties hereby acknowledge and agree that the rights of the parties hereunder are special, unique and of extraordinary character, and that if any party refuses or otherwise fails to act, or to cause its
Affiliates to act, in accordance with the provisions of this Agreement, such refusal or failure would result in irreparable injury to the Company or the Investors as the case may be, the exact amount of which would be difficult to ascertain or
estimate and the remedies at law for which would not be reasonable or adequate compensation. Accordingly, if any party refuses or otherwise fails to act, or to cause its Affiliates to act, in accordance with the provisions of this Agreement, then,
in addition to any other remedy which may be available to any damaged party at law or in equity, such damaged party will be entitled to seek specific performance and injunctive relief, without posting bond or other security, and without the
necessity of proving actual or threatened damages, which remedy such damaged party will be entitled to seek in any court of competent jurisdiction. 

10.14 Remedies. The rights, powers and remedies of the parties under this Agreement are cumulative and not exclusive of any other right,
power or remedy which such parties may have under any other agreement or Law. No single or partial assertion or exercise of any right, power or remedy of a party hereunder shall preclude any other or further assertion or exercise thereof. 

(Signature Page Follows) 

  
 25 

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date
first above written. 
  

			
	BXLS V – BODYGUARD, L.P.
	
	By: Blackstone Life Sciences Advisors L.L.C. on behalf of BXLS V – Bodyguard, L.P.
		
	By:	 	 /s/ Robert Liptak

	Name:	 	Robert Liptak
	Title:	 	Authorized Person

 Signature Page to Stock Purchase Agreement 

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date
first above written. 
  

			
	BXLS FAMILY INVESTMENT PARTNERSHIP (CYM) V – ESC L.P.
	
	By: Blackstone Life Sciences V (CYM) AIV GP L.P.
	
	By: BXLS V L.L.C., its general partner
		
	By:	 	 /s/ Robert Liptak

		 	Name: Robert Liptak
		 	Title: Authorized Person

 Signature Page to Stock Purchase Agreement 

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date
first above written. 
  

			
	BLACKSTONE FAMILY TACTICAL OPPORTUNITIES INVESTMENT PARTNERSHIP II ESC L.P.
	
	By: Blackstone Tactical Opportunities Advisors L.L.C. on behalf of Blackstone Family Tactical Opportunities Investment Partnership III ESC L.P.
		
	By:	 	 /s/ Christopher J. James

		 	Name: Christopher J. James
		 	Title: Authorized Person
	
	BTO BODYGUARD HOLDINGS DE L.P.
	
	By: Blackstone Tactical Opportunities Advisors L.L.C. on behalf of Blackstone Holdings DE L.P.
		
	By:	 	 /s/ Christopher J. James

		 	Name: Christopher J. James
		 	Title: Authorized Person

 Signature Page to Stock Purchase Agreement 

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date
first above written. 
  

			
	GSO CAPITAL OPPORTUNITIES FUND III LP
	By: GSO Capital Opportunities Associates II LLC, its general partner
	By: GSO Holdings I L.L.C., its managing member
		
	By:	 	 /s/ Marisa J. Beeney

		 	Name: Marisa J. Beeney
		 	Title: Authorized Person
	
	GSO CSF III HOLDCO LP
	By: GSO Capital Solutions Associates III LP, its general partner
	By: GSO Capital Solutions Associates III (Delaware) LLC, its general partner
		
	By:	 	 /s/ Marisa J. Beeney

		 	Name: Marisa J. Beeney
		 	Title: Authorized Person

 Signature Page to Stock Purchase Agreement 

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date
first above written. 
  

			
	BEMAP MASTER FUND LTD.
	
	By: Blackstone Alternative Asset Management L.P., its investment manager
		
	By:	 	 /s/ Peter Koffler

		 	Name: Peter Koffler
		 	Title: Authorized Person

 Signature Page to Stock Purchase Agreement 

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date
first above written. 
  

			
	ALNYLAM PHARMACEUTICALS, INC.
		
	By:	 	 /s/ John M. Maraganore

		 	Name: John M. Maraganore, Ph.D.
		 	Title: Chief Executive Officer

 Signature Page to Stock Purchase Agreement 

 

 EXHIBIT A 

SCHEDULE OF INVESTORS 
  

									
	 Investor
	  	Number of Shares of
Common Stock	 	  	Aggregate Purchase Price	 
	 BXLS V – Bodyguard, L.P.

Acct. #:[***]
	  	 	508,766	 	  	$	52,804,823.14	 
	 BXLS Family Investment Partnership (CYM) V—ESC L.P.

Acct. #:[***]
	  	 	8,625	 	  	$	895,188.75	 
	 Blackstone Family Tactical Opportunities Investment Partnership III ESC L.P.

Acct. #:[***]
	  	 	519	 	  	$	53,867.01	 
	 BTO Bodyguard Holdings DE L.P.

Acct. #:[***]
	  	 	119,917	 	  	$	12,446,185.43	 
	 GSO Capital Opportunities Fund III LP
	  	 	89,122	 	  	$	9,249,972.38	 
	 GSO CSF III Holdco LP

Acct. #:[***]
	  	 	89,123	 	  	$	9,250,076.17	 
	 BEMAP Master Fund Ltd.

Acct. #:[***]
	  	 	147,414	 	  	$	15,300,099.06	 

  
 A-1 

 EXHIBIT B 

NOTICES 
 (a) If to the Investors: 

 

			
	 BXLS V – Bodyguard, L.P.;

BXLS Family Investment Partnership

(CYM) V—ESC L.P.:

Blackstone Life Sciences

101 Main Street, Suite 1210

Cambridge, MA02142

Attention: [***]

Email:      [***]

 
 with a copy, which shall not constitute notice
to:
  
 Blackstone Life Sciences

101 Main Street, Suite 1210

Cambridge, MA02142

Attention: [***]

Email:      [***]
	  	 GSO Capital Opportunities Fund III LP;

GSO CSF III Holdco LP:

GSO Capital Partners

345 Park Avenue

New York, NY 10154

Attention: [***]

Email:       [***]

 
 with a copy, which shall not constitute notice
to:
  
 GSO Capital Partners

345 Park Avenue

New York, NY 10154

Attention: [***]

Email:       [***]

		
	 BEMAP Master Fund Ltd.:

Blackstone Alternative Asset Management

345 Park Avenue

New York, NY 10154

Attention: [***]

Email:      [***]

 
 with a copy, which shall not constitute notice
to:
  
 Blackstone Alternative Asset
Management
 345 Park Avenue

New York, NY 10154

Attention: [***]

Email:      [***]
	  	 Blackstone Family Tactical Opportunities Investment Partnership III ESC L.P.;

BTO Bodyguard Holdings DE L.P.:

Blackstone Tactical Opportunities

345 Park Avenue

New York, NY 10154

Attention: [***]

Email:       [***]

 
 with a copy, which shall not constitute notice
to:
  
 Blackstone Tactical Opportunities

345 Park Avenue

New York, NY 10154

Attention: [***]

Email:       [***]

 with a copy to: 

Ropes & Gray LLP 

Prudential Tower 
 800 Boylston
Street 
 Boston, MA 02199-3600 

Attention: Michael Beauvais 

Zachary Blume 

	 	Email:	 Michael.Beauvais@ropesgray.com 

Zachary.Blume@ropesgray.com 

  
 B-1 

 (b) If to the Company: 

Alnylam Pharmaceuticals, Inc. 

675 West Kendall Street 
 Henri A.
Termeer Square 
 Cambridge, MA 02142 

Attention: Legal Department 
 with
a copy to: 
 Goodwin Procter LLP 

100 Northern Avenue 
 Boston, MA
02210 
 Attention: Mitchell S. Bloom, Esq. 

                 Gregg L. Katz, Esq. 

(c) If to the Transfer Agent: 
 Computershare
Trust Company, N.A. 
 Meidinger Tower 

462 South 4th Street 

Louisville, KY 40202 
 Attn:
Sharona Ellevold 
 Email: Sharona.Ellevold@computershare.com 

  
 B-2Exhibit 4.2

 

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

THIS AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (this “Agreement”), is made as of the 27th day of February, 2020, by and among Akouos, Inc., a Delaware corporation (the “Company”) and each of the investors listed on Schedule A hereto, each of which is referred to in this Agreement as an “Investor”, along with any additional investors that become a party to this Agreement in accordance with Subection 6.9 hereof.

 

RECITALS

 

WHEREAS, certain of the Investors (the “Existing Investors”) hold shares of the Company’s Series Seed Preferred Stock, Series Seed 1 Preferred Stock, Series A Preferred Stock and/or shares of Common Stock issued upon conversion thereof and possess registration rights, information rights, rights of first offer, and other rights pursuant to that certain Amended and Restated Investors’ Rights Agreement dated as of July 17, 2018, by and among the Company and such Existing Investors (the “Prior Agreement”); and

 

WHEREAS, the Existing Investors are holders of at least fifty-nine percent (59%) of the Registrable Securities of the Company (as defined in the Prior Agreement), as a separate class and on an as-converted basis, and at least a majority of the Registrable Securities outstanding and held by the Major Investors (as such terms are defined in the Prior Agreement) (collectively, the “Requisite Investors”), and desire to amend and restate the Prior Agreement in its entirety and to accept the rights created pursuant to this Agreement in lieu of the rights granted to them under the Prior Agreement; and

 

WHEREAS, certain of the Investors are parties to that certain Series B Preferred Stock Purchase Agreement of even date herewith by and among the Company and such Investors (the “Purchase Agreement”), under which certain of the Company’s and such Investors’ obligations are conditioned upon the execution and delivery of this Agreement by such Investors, the Requisite Investors, and the Company;

 

NOW, THEREFORE, the Existing Investors hereby agree that the Prior Agreement shall be amended and restated, and the parties to this Agreement further agree as follows:

 

1.                                      Definitions. For purposes of this Agreement:

 

1.1                               “Affiliate” means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including without limitation any general partner, managing member, officer, or director or trustee of such Person, or any venture capital fund or registered investment company now or hereafter existing that is controlled by one or more general partners, or managing members or investment advisors of, or shares the same management company or investment adviser with, such Person.

 

1.2                               “Board of Directors” means the board of directors of the Company.

 

 

1.3                               “Common Stock” means shares of the Company’s common stock, par value $0.0001 per share.

 

1.4                               “Competitor” means a Person engaged, directly or indirectly (including through any partnership, limited liability company, corporation, joint venture or similar arrangement (whether now existing or formed hereafter)), in a business that competes with the Company’s business, but shall not include any financial investment firm or collective investment vehicle that, together with its Affiliates, holds less than twenty percent (20%) of the outstanding equity of any Competitor and does not, nor do any of its Affiliates, have a right to designate any members of the board of directors of any Competitor. For the avoidance of doubt, Pivotal bioVenture Partners Fund I, L.P. (“Pivotal”), 5AM Ventures V, L.P., New Enterprise Associates 16, L.P., NEA Ventures 2018, L.P., Partners Innovation Fund, LLC, Partners Innovation Fund II, L.P., Sofinnova Venture Partners X, L.P., Novartis Bioventures Ltd. Wu Capital LLC (“Wu Capital”), Citadel Multi-Strategy Equities Master Fund Ltd. and its Affiliates (“Surveryor”), any Investor advised or subadvised by Fidelity Management & Research Company LLC (“Fidelity”) or its Affiliates (“Fidelity Investors”) and RA Capital Healthcare Fund, L.P. (and their respective Affiliates) shall not at any time be deemed to be a Competitor.

 

1.5                               “Damages” means any loss, damage, claim or liability (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability (or any action in respect thereof) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law.

 

1.6                               “Derivative Securities” means any securities or rights convertible into, or exercisable or exchangeable for (in each case, directly or indirectly), Common Stock, including options and warrants.

 

1.7                               “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

1.8                               “Excluded Registration” means (i) a registration relating to the sale of securities to employees of the Company or a subsidiary pursuant to a stock option, stock purchase, equity incentive or similar plan; (ii) a registration relating to an SEC Rule 145 transaction; (iii) a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities; or (iv) a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered.

 

2

 

1.9                               “Form S-1” means such form under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently adopted by the SEC.

 

1.10                        “Form S-3” means such form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently adopted by the SEC that permits forward incorporation of substantial information by reference to other documents filed by the Company with the SEC.

 

1.11                        “GAAP” means generally accepted accounting principles in the United States as in effect from time to time.

 

1.12                        “Holder” means any holder of Registrable Securities who is a party to this Agreement.

 

1.13                        “Immediate Family Member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in- law, daughter-in-law, brother-in-law, or sister-in-law, including, adoptive relationships, of a natural person referred to herein.

 

1.14                        “Initiating Holders” means, collectively, Holders who properly initiate a registration request under this Agreement.

 

1.15                        “IPO” means the Company’s first underwritten public offering of its Common Stock under the Securities Act.

 

1.16                        “Key Employee” means any executive-level employee (including, division director and vice president-level positions) as well as any employee who, either alone or in concert with others, develops, invents, programs, or designs any Company Intellectual Property (as defined in the Purchase Agreement).

 

1.17                        “Major Investor” means any Investor that, individually or together with such Investor’s Affiliates, holds at least 9,000,000 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the date hereof).

 

1.18                        “New Securities” means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities.

 

1.19                        “Person” means any individual, corporation, partnership, trust, limited liability company, association or other entity.

 

3

 

1.20                        “Preferred Director” has the meaning set forth in the Restated Certificate.

 

1.21                        “Preferred Stock” means, collectively, shares of the Company’s Series Seed Preferred Stock, Series Seed 1 Preferred Stock, Series A Preferred Stock and Series B Preferred Stock.

 

1.22                        “Restated Certificate” means the Company’s Amended and Restated Certificate of Incorporation (as it may be amended and/or restated from time to time).

 

1.23                        “Registrable Securities” means (i) the Common Stock issuable or issued upon conversion of the Preferred Stock, (ii) any Common Stock, or any Common Stock issued or issuable (directly or indirectly) upon conversion and/or exercise of any other securities of the Company, acquired by the Investors after the date hereof, and (iii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced in clauses (i) and (ii) above; excluding in all cases, however, any Registrable Securities sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to Subsection 6.1, and excluding for purposes of Section 2 any shares for which registration rights have terminated pursuant to Subsection 2.13 of this Agreement.

 

1.24                        “Registrable Securities then outstanding” means the number of shares determined by adding the number of shares of outstanding Common Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly) pursuant to then exercisable and/or convertible securities that are Registrable Securities.

 

1.25                        “Restricted Securities” means the securities of the Company required to be notated with the legend set forth in Subsection 2.12(b) hereof.

 

1.26                        “SEC” means the Securities and Exchange Commission.

 

1.27                        “SEC Rule 144” means Rule 144 promulgated by the SEC under the Securities Act.

 

1.28                        “SEC Rule 145” means Rule 145 promulgated by the SEC under the Securities Act.

 

1.29                        “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

1.30                        “Selling Expenses” means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of Registrable Securities, and fees

 

4

 

and disbursements of counsel for any Holder, except for the fees and disbursements of the Holder Counsel borne and paid by the Company as provided in Subsection 2.6.

 

1.31                        “Series A Preferred Stock” means shares of the Company’s Series A Preferred Stock, par value $0.0001 per share.

 

1.32                        “Series B Preferred Stock” means shares of the Company’s Series B Preferred Stock, par value $0.0001 per share.

 

1.33                        “Series Seed Preferred Stock” means shares of the Company’s Series Seed Preferred Stock, par value $0.0001 per share.

 

1.34                        “Series Seed 1 Preferred Stock” means shares of the Company’s Series Seed 1 Preferred Stock, par value $0.0001 per share.

 

2.                                      Registration Rights. The Company covenants and agrees as follows:

 

2.1                               Demand Registration.

 

(a)                                 Form S-1 Demand. If at any time after the earlier of (i) five (5) years after the date of this Agreement or (ii) one hundred eighty (180) days after the effective date of the registration statement for the IPO, the Company receives a request from Holders of at least forty percent (40%) of the Registrable Securities that the Company file a Form S-1 registration statement with respect to at least forty percent (40%) of the Registrable Securities then outstanding then the Company shall (x) within ten (10) days after the date such request is given, give notice thereof (the “Demand Notice”) to all Holders other than the Initiating Holders; and (y) as soon as practicable, and in any event within sixty (60) days after the date such request is given by the Initiating Holders, file a Form S-1 registration statement under the Securities Act covering all Registrable Securities that the Initiating Holders requested to be registered and any additional Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of Subsections 2.1(c) and 2.3.

 

(b)                                 Form S-3 Demand. If at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request from Holders of at least twenty-five percent (25%) of the Registrable Securities then outstanding that the Company file a Form S-3 registration statement with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate offering price, net of Selling Expenses, of at least $5,000,000, then the Company shall (i) within ten (10) days after the date such request is given, give a Demand Notice to all Holders other than the Initiating Holders; and (ii) as soon as practicable, and in any event within forty-five (45) days after the date such request is given by the Initiating Holders, file a Form S-3 registration statement under the Securities Act covering all Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given

 

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by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given, and in each case, subject to the limitations of Subsections 2.1(c) and 2.3.

 

(c)                                  Notwithstanding the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this Subsection 2.1 a certificate signed by the Company’s chief executive officer stating that in the good faith judgment of the Company’s Board of Directors it would be materially detrimental to the Company and its stockholders for such registration statement to either become effective or remain effective for as long as such registration statement otherwise would be required to remain effective, because such action would (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company unable to comply with requirements under the Securities Act or Exchange Act, then the Company shall have the right to defer taking action with respect to such filing, and any time periods with respect to filing or effectiveness thereof shall be tolled correspondingly, for a period of not more than sixty (60) days after the request of the Initiating Holders is given; provided, however, that the Company may not invoke this right more than once in any twelve (12) month period; and provided further that the Company shall not register any securities for its own account or that of any other stockholder during such sixty-day (60) period other than an Excluded Registration.

 

(d)                                 The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Subsection 2.1(a)(i) during the period that is sixty (60) days before the Company’s good faith estimate of the date of filing of, and ending on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration, provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; (ii) after the Company has effected two registrations pursuant to Subsection 2.1(a); or (iii) if the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Subsection 2.1(b). The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Subsection 2.1(b) (i) during the period that is thirty (30) days before the Company’s good faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the effective date of, a Company-initiated registration, provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; or (ii) if the Company has effected two registrations pursuant to Subsection 2.1(b) within the twelve (12) month period immediately preceding the date of such request. A registration shall not be counted as “effected” for purposes of this Subsection 2.1(d) until such time as the applicable registration statement has been declared effective by the SEC, unless the Initiating Holders withdraw their request for such registration, elect not to pay the registration expenses therefor, and forfeit their right to one demand registration statement pursuant to Subsection 2.6, in which case such withdrawn registration statement shall be counted as “effected” for purposes of this Subsection 2.1(d), provided, that if such withdrawal is during a period the Company has deferred taking action pursuant to Subsection 2.1(c), then the Initiating Holders may withdraw their request for

 

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registration and such registration will not be counted as “effected” for purposes of this Subsection 2.1(d).

 

2.2                               Company Registration. If the Company proposes to register (including, for this purpose, a registration effected by the Company for stockholders other than the Holders) any of its securities under the Securities Act in connection with the public offering of such securities solely for cash (other than in an Excluded Registration), the Company shall, at such time, promptly give each Holder notice of such registration. Upon the request of each Holder given within twenty (20) days after such notice is given by the Company, the Company shall, subject to the provisions of Subsection 2.3, cause to be registered all of the Registrable Securities that each such Holder has requested to be included in such registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this Subsection 2.2 before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in such registration. The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance with Subsection 2.6.

 

2.3                               Underwriting Requirements.

 

(a)                                 If, pursuant to Subsection 2.1, the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to Subsection 2.1, and the Company shall include such information in the Demand Notice. The underwriter(s) will be selected by the Board of Directors and shall be reasonably acceptable to a majority in interest of the Initiating Holders. In such event, the right of any Holder to include such Holder’s Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in Subsection 2.4(e)) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting. Notwithstanding any other provision of this Subsection 2.3, if the underwriter(s) advise(s) the Initiating Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder or in such other proportion as shall mutually be agreed to by all such selling Holders; provided, however, that the number of Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other securities are first entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.

 

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(b)                                 In connection with any offering involving an underwriting of shares of the Company’s capital stock pursuant to Subsection 2.2, the Company shall not be required to include any of the Holders’ Registrable Securities in such underwriting unless the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company. If the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be allocated among the selling Holders in proportion (as nearly as practicable to) the number of Registrable Securities owned by each selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares. Notwithstanding the foregoing, in no event shall (i) the number of Registrable Securities included in the offering be reduced unless all other securities (other than securities to be sold by the Company) are first entirely excluded from the offering, or (ii) the number of Registrable Securities included in the offering be reduced below twenty percent (20%) of the total number of securities included in such offering, unless such offering is the IPO, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no other stockholder’s securities are included in such offering. For purposes of the provision in this Subsection 2.3(b) concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single “selling Holder,” and any pro rata reduction with respect to such “selling Holder” shall be based upon the aggregate number of Registrable Securities owned by all Persons included in such “selling Holder,” as defined in this sentence.

 

(c)                                  For purposes of Subection 2.1, a registration shall not be counted as “effected” if, as a result of an exercise of the underwriter’s cutback provisions in Subection 2.3(a), fewer than the total number of Registrable Securities that Holders have requested to be included in such registration statement are actually included.

 

2.4                               Obligations of the Company. Whenever required under this Section 2 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

 

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(a)                                 prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days or, if earlier, until the distribution contemplated in the registration statement has been completed; provided, however, that (i) such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains, at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in such registration, and (ii) in the case of any registration of Registrable Securities on Form S-3 that are intended to be offered on a continuous or delayed basis, subject to compliance with applicable SEC rules, such one hundred twenty (120) day period shall be extended for up to ninety (90) days, if necessary, to keep the registration statement effective until all such Registrable Securities are sold;

 

(b)                                 prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration statement;

 

(c)                                  furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;

 

(d)                                 use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided that the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

 

(e)                                  in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering;

 

(f)                                   use its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Company are then listed;

 

(g)                                  provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

 

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(h)                                 promptly make available for inspection by the selling Holders, any managing underwriter(s) participating in any disposition pursuant to such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company’s officers, directors, employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement and to conduct appropriate due diligence in connection therewith;

 

(i)                                     notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; and

 

(j)                                    after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement such registration statement or prospectus.

 

In addition, the Company shall ensure that, at all times after any registration statement covering a public offering of securities of the Company under the Securities Act shall have become effective, its insider trading policy shall provide that the Company’s directors may implement a trading program under Rule 10b5-1 of the Exchange Act.

 

2.5                               Furnish Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 2 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to effect the registration of such Holder’s Registrable Securities.

 

2.6                               Expenses of Registration. All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications pursuant to Section 2 or pursuant to an IPO, including all registration, filing, and qualification fees; printers’ and accounting fees; fees and disbursements of counsel for the Company; and the reasonable fees and disbursements, not to exceed $30,000, of one counsel for the selling Holders or, in the case of an IPO, one counsel to the Investors (such counsel, “Holder Counsel”), shall be borne and paid by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Subsection 2.1 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all selling Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one registration pursuant to Subsections 2.1(a) or 2.1(b), as the case may be; provided further that if, at the time of such withdrawal, the Holders shall have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the

 

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Holders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information then the Holders shall not be required to pay any of such expenses and shall not forfeit their right to one registration pursuant to Subection 2.1(a) or Subection 2.1(b). All Selling Expenses relating to Registrable Securities registered pursuant to this Section 2 shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf.

 

2.7                               Delay of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2.

 

2.8                               Indemnification. If any Registrable Securities are included in a registration statement under this Section 2:

 

(a)                                 To the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers, directors, and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in the Securities Act) for each such Holder; and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any Damages, and the Company will pay to each such Holder, underwriter, controlling Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this Subsection 2.8(a) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable for any Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder, underwriter, controlling Person, or other aforementioned Person expressly for use in connection with such registration.

 

(b)                                 To the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and each of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined in the Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling Holder expressly for use in connection with such registration; and each such selling Holder will pay to the Company and each other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this

 

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Subsection 2.8(b) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided further that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution under Subsections 2.8(b) and 2.8(d) exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such Holder.

 

(c)                                  Promptly after receipt by an indemnified party under this Subsection 2.8 of notice of the commencement of any action (including any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Subsection 2.8, give the indemnifying party notice of the commencement thereof. The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such action. The failure to give notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this Subsection 2.8, to the extent that such failure materially prejudices the indemnifying party’s ability to defend such action. The failure to give notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Subsection 2.8.

 

(d)                                 To provide for just and equitable contribution to joint liability under the Securities Act in any case in which either: (i) any party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Subsection 2.8 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding the fact that this Subsection 2.8 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this Subsection 2.8, then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a

 

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material fact, relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission; provided, however, that, in any such case (x) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation; and provided further that in no event shall a Holder’s liability pursuant to this Subsection 2.8(d), when combined with the amounts paid or payable by such Holder pursuant to Subsection 2.8(b), exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of willful misconduct or fraud by such Holder.

 

(e)                                  Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

 

(f)                                   Unless otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations of the Company and Holders under this Subsection 2.8 shall survive the completion of any offering of Registrable Securities in a registration under this Section 2, and otherwise shall survive the termination of this Agreement.

 

2.9                               Reports Under Exchange Act. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company shall:

 

(a)                                 make and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times after the effective date of the registration statement filed by the Company for the IPO;

 

(b)                                 use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and

 

(c)                                  furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); and (ii) such other

 

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information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

 

2.10                        Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior written consent of the Holders of at least seventy-one percent (71%) of the Registrable Securities, enter into any agreement with any holder or prospective holder of any securities of the Company that would allow such holder or prospective holder (i) to include such securities in any registration unless, under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of such securities will not reduce the number of the Registrable Securities of the Holders that are included; or (ii) allow such holder or prospective holder to initiate a demand for registration of any securities held by such holder or prospective holder; provided that this limitation shall not apply to Registrable Securities acquired by any additional Investor that becomes a party to this Agreement in accordance with Subsection 6.9.

 

2.11                        “Market Stand-off” Agreement. Each Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the IPO, and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180) days, or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports, and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2411, or any successor provisions or amendments thereto), or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA 2411, or any successor provisions or amendments thereto, (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock held immediately before the effective date of the registration statement for the IPO or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise. The foregoing provisions of this Subsection 2.11, shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, or the transfer of any shares to any trust for the direct or indirect benefit of the Holder or the immediate family of the Holder, provided that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, shall not apply to transactions relating to securities acquired in the IPO or open market transactions from and after the IPO, and shall be

 

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applicable to the Holders only if all officers and directors are subject to the same restrictions and the Company uses commercially reasonable efforts to obtain a similar agreement from all stockholders individually owning more than one percent (1%) of the Company’s outstanding Common Stock (after giving effect to conversion into Common Stock of all outstanding Preferred Stock). The underwriters in connection with such registration are intended third-party beneficiaries of this Subsection 2.11 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that are consistent with this Subsection 2.11 or that are necessary to give further effect thereto. Any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Holders subject to such agreements, based on the number of shares subject to such agreements.

 

2.12                        Restrictions on Transfer.

 

(a)                                 The Preferred Stock and the Registrable Securities shall not be sold, pledged, or otherwise transferred, and the Company shall not recognize and shall issue stop-transfer instructions to its transfer agent with respect to any such sale, pledge, or transfer, except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance with the provisions of the Securities Act. A transferring Holder will cause any proposed purchaser, pledgee, or transferee of the Preferred Stock and the Registrable Securities held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions specified in this Agreement.

 

(b)                                 Each certificate, instrument, or book entry representing (i) the Preferred Stock, (ii) the Registrable Securities, and (iii) any other securities issued in respect of the securities referenced in clauses (i) and (ii), upon any stock split, stock dividend, recapitalization, merger, consolidation, or similar event, shall (unless otherwise permitted by the provisions of Subsection 2.12(c)) be notated with a legend substantially in the following form:

 

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

 

THE SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 

The Holders consent to the Company making a notation in its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions on transfer set forth in this Subsection 2.12.

 

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(c)                                  The holder of such Restricted Securities, by acceptance of ownership thereof, agrees to comply in all respects with the provisions of this Section 2. Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect a registration statement under the Securities Act covering the proposed transaction, the Holder thereof shall give notice to the Company of such Holder’s intention to effect such sale, pledge, or transfer. Each such notice shall describe the manner and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at such Holder’s expense by either (i) a written opinion of legal counsel who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (ii) a “no action” letter from the SEC to the effect that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company. The Company will not require such a legal opinion or “no action” letter (x) in any transaction in compliance with SEC Rule 144; or (y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no consideration; provided that each transferee agrees in writing to be subject to the terms of this Subsection 2.12. Notwithstanding the foregoing, the Company shall be obligated to reissue promptly unlegended certificates or book entries at the request of any Holder thereof if the Company has completed its IPO and the Holder shall have obtained an opinion of counsel (which counsel may be counsel to the Company) to the effect that the securities proposed to be disposed of may lawfully be so disposed of without registration, qualification and legend, provided that the second legend listed above shall be removed only at such time as the Holder of such certificate is no longer subject to any restrictions hereunder. Each certificate, instrument, or book entry representing the Restricted Securities transferred as above provided shall be notated with, except if such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in Subsection 2.12(b), except that such certificate instrument, or book entry shall not be notated with such restrictive legend if, in the opinion of counsel for such Holder and the Company, such legend is not required in order to establish compliance with any provisions of the Securities Act.

 

2.13                        Termination of Registration Rights. The right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to Subsections 2.1 or 2.2 shall terminate upon the earliest to occur of:

 

(a)                                 the closing of a Deemed Liquidation Event, as such term is defined in the Restated Certificate and only after fulfillment of the applicable obligations set forth under Article Fourth, Part B, Section 2.3 of the Restated Certificate in connection with such Deemed Liquidation Event;

 

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(b)                                 such time as Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such Holder’s shares without limitation during a three-month period without registration;

 

(c)                                  the third anniversary of the IPO.

 

3.                                      Information and Observer Rights.

 

3.1                               Delivery of Financial Statements. The Company shall, upon request, deliver to each Major Investor and Fidelity Investor, provided that the Board of Directors has not reasonably determined that such Major Investor is a Competitor:

 

(a)                                 as soon as practicable, but in any event within one hundred twenty (120) days after the end of each fiscal year of the Company (i) an unaudited balance sheet as of the end of such year, (ii) unaudited statements of income and of cash flows for such year, and (iii) an unaudited statement of stockholders’ equity as of the end of such year;

 

(b)                                 as soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of each fiscal year of the Company, unaudited statements of income and cash flows for such fiscal quarter, and an unaudited balance sheet as of the end of such fiscal quarter, all prepared in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments; and (ii) not contain all notes thereto that may be required in accordance with GAAP);

 

(c)                                  as soon as practicable, but in any event within thirty (30) days of the end of each month, an unaudited income statement for such month, and an unaudited balance sheet as of the end of such month, all prepared in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments and (ii) not contain all notes thereto that may be required in accordance with GAAP);

 

(d)                                 as soon as practicable, but in any event thirty (30) days before the end of each fiscal year, a budget and business plan for the next fiscal year, approved by the Board of Directors, including the approval of the Preferred Directors, and prepared on a monthly basis, including balance sheets, income statements, and statements of cash flow for such months and, promptly after prepared, any other budgets or revised budgets prepared by the Company; and

 

(e)                                  as soon as practicable, but in any event within forty-five (45) days after the end of each quarter of each fiscal year of the Company, a statement showing the number of shares of each class and series of capital stock and securities convertible into or exercisable for shares of capital stock outstanding at the end of the period, the Common Stock issuable upon conversion or exercise of any outstanding securities convertible or exercisable for Common Stock and the exchange ratio or exercise price applicable thereto, and the number of shares of issued stock options and stock options not yet issued but reserved for issuance, if any, all in

 

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sufficient detail as to permit the Major Investors to calculate their respective percentage equity ownership in the Company.

 

If, for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect of such period the financial statements delivered pursuant to the foregoing sections shall be the consolidated and consolidating financial statements of the Company and all such consolidated subsidiaries.

 

Notwithstanding anything else in this Subsection 3.1 to the contrary, the Company may cease providing the information set forth in this Subsection 3.1 during the period starting with the date sixty (60) days before the Company’s good-faith estimate of the date of filing of a registration statement if it reasonably concludes it must do so to comply with the SEC rules applicable to such registration statement and related offering; provided that the Company’s covenants under this Subsection 3.1 shall be reinstated at such time as the Company is no longer actively employing its commercially reasonable efforts to cause such registration statement to become effective.

 

3.2                               Inspection. The Company shall permit each Major Investor (provided that the Board of Directors has not reasonably determined that such Major Investor is a Competitor), at such Major Investor’s expense, to visit and inspect the Company’s properties; examine its books of account and records; and discuss the Company’s affairs, finances, and accounts with its officers, during normal business hours of the Company as may be reasonably requested by the Major Investor; provided, however, that the Company shall not be obligated pursuant to this Subsection 3.2 to provide access to any information that it reasonably and in good faith considers to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in form acceptable to the Company) or the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.

 

3.3                               Observer Rights.

 

(a)                                 Each of 5AM Ventures V, L.P. (“5AM”), New Enterprise Associates 16, L.P. (“NEA”), Sofinnova Venture Partners X, L.P. (“Sofinnova”), Partners Innovation Fund, LLC and Partners Innovation Fund II, L.P. (“Partners”), Novartis Bioventures Ltd. (“Novartis”) and RA Capital Healthcare Fund, L.P. (“RA Capital”) shall be entitled to designate one representative each to attend all meetings of the Company’s Board of Directors in a nonvoting observer capacity, in each case for so long as each such Investor or group of affiliated Investors qualify as Major Investors hereunder. The representatives appointed as board observers shall initially be Jamil Beg for 5AM, Jason Fuller for NEA, Jay Knowles for Partners, Sarah Bhagat for Sofinnova, Campbell Murray for Novartis, and Matthew Hammond for RA Capital.

 

(b)                                 As long as Pivotal owns not less than 3,160,889 shares of Series B Preferred Stock, Pivotal shall be entitled to invite one representative to attend all meetings of the Company’s Board of Directors in a nonvoting observer capacity, who shall initially be Jim Trenkle.

 

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(c)                                  The Company shall give such representatives designated in accordance with clauses (a) and (b) above copies of all notices, minutes, consents, and other materials that it provides to its directors at the same time and in the same manner as provided to such directors; provided, however, that such representatives shall agree to hold in confidence and trust and to act in a fiduciary manner with respect to all information so provided; and provided further, that the Company reserves the right to withhold any information and to exclude any such representative from any meeting or portion thereof if access to such information or attendance at such meeting could adversely affect the attorney-client privilege between the Company and its counsel or result in disclosure of trade secrets or a conflict of interest, or if any such representative (or the Major Investor designating him or her) is a Competitor.

 

3.4                               Termination of Information and Observer Rights. The covenants set forth in Subsection 3.1, Subsection 3.2 and Subsection 3.3 shall terminate and be of no further force or effect (i) immediately before the consummation of the IPO, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act, (iii) upon the closing of a Deemed Liquidation Event, as such term is defined in the Restated Certificate or (iv) a Qualified Public Offering, as such term is defined in the Restated Certificate, whichever event occurs first.

 

3.5                               Confidentiality. Each Investor agrees that such Investor will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company) any confidential information obtained from the Company by virtue of such Investor’s status as a stockholder or pursuant to the terms of this Agreement (including notice of the Company’s intention to file a registration statement), unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this Subsection 3.5 by such Investor), (b) is or has been independently developed or conceived by such Investor without use of the Company’s confidential information, or (c) is or has been made known or disclosed to such Investor by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however, that an Investor may disclose confidential information (i) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company; (ii) to any prospective purchaser of any Registrable Securities from such Investor, if such prospective purchaser agrees to be bound by the provisions of this Subsection 3.5; (iii) to any existing or prospective Affiliate, partner, member, stockholder, or wholly owned subsidiary of such Investor in the ordinary course of business, provided that such Investor informs such Person that such information is confidential and directs such Person to maintain the confidentiality of such information; (iv) to the extent required in connection with any routine or periodic examination or similar process by any regulatory or self-regulatory body or authority not specifically directed at the Company or the confidential information obtained from the Company pursuant to the terms of the Agreement, including, without limitation, quarterly or annual reports; (v) as may otherwise be required by law, regulation, rule, court order or subpoena, provided that such Investor promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure; or (vi) with respect to an Investor that is a registered investment company within the meaning of the Investment

 

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Company Act of 1940, as amended, or an Affiliate thereof, in connection with its required investment reporting practices.

 

4.                                      Rights to Future Stock Issuances.

 

4.1                               Right of First Offer. Subject to the terms and conditions of this Subsection 4.1 and applicable securities laws, if the Company proposes to offer or sell any New Securities, the Company shall first offer such New Securities to each Major Investor. A Major Investor shall be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate, among (i) itself and (ii) its Affiliates; provided, that the Company’s Board of Directors has not reasonably determined any such Affiliate is a Competitor.

 

(a)                                 The Company shall give notice (the “Offer Notice”) to each Major Investor, stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such New Securities.

 

(b)                                 By notification to the Company within twenty (20) days after the Offer Notice is given, each Major Investor may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which equals the proportion that the Common Stock then held by such Major Investor (including all shares of Common Stock then issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other vested Derivative Securities then held by such Major Investor) bears to the total Common Stock of the Company then outstanding (including all shares of Common Stock issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other vested Derivative Securities then outstanding). At the expiration of such twenty (20) day period, the Company shall promptly notify each Major Investor that elects to purchase or acquire all the shares available to it (each, a “Fully Exercising Investor”) of any other Major Investor’s failure to do likewise. During the ten (10) day period commencing after the Company has given such notice, each Fully Exercising Investor may, by giving notice to the Company, elect to purchase or acquire, in addition to the number of shares specified above, up to that portion of the New Securities for which Major Investors were entitled to subscribe but that were not subscribed for by the Major Investors which is equal to the proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of Preferred Stock and any other vested Derivative Securities then held, by such Fully Exercising Investor bears to the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other vested Derivative Securities then held, by all Fully Exercising Investors who wish to purchase such unsubscribed shares. The closing of any sale pursuant to this Subsection 4.1(b) shall occur within the later of ninety (90) days of the date that the Offer Notice is given and the date of initial sale of New Securities pursuant to Subsection 4.1(c).

 

(c)                                  If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Subsection 4.1(b), the Company may, during the 90

 

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day period following the expiration of the periods provided in Subsection 4.1(b), offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within 30 days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Major Investors in accordance with this Subsection 4.1.

 

(d)                                 The right of first offer in this Subsection 4.1 shall not be applicable to (i) Exempted Securities (as defined in the Restated Certificate); (ii) shares of Common Stock issued in the IPO; and (iii) the issuance of shares of Preferred Stock pursuant to the Purchase Agreement, as may be amended from time to time.

 

4.2                               Termination. The covenants set forth in Subsection 4.1 shall terminate and be of no further force or effect (i) immediately before the consummation of the IPO, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act, (iii) upon a Deemed Liquidation Event, as such term is defined in the Restated Certificate, or (iv) a Qualified Public Offering, as such term is defined in the Restated Certificate, whichever event occurs first.

 

5.                                      Additional Covenants.

 

5.1                               Insurance. The Company shall obtain, within ninety (90) days of the date hereof, from financially sound and reputable insurers Directors and Officers liability insurance in an amount of at least $5,000,000 and on terms and conditions satisfactory to the Board of Directors, including each of the Preferred Directors, and will use commercially reasonable efforts to cause such insurance policy to be maintained until such time as the Board of Directors, including each of the Preferred Directors, determines that such insurance should be discontinued.

 

5.2                               Employee Agreements. The Company will cause (i) each Person now or hereafter employed by it or by any subsidiary (or engaged by the Company or any subsidiary as a consultant/independent contractor) with access to confidential information and/or trade secrets to enter into a nondisclosure and proprietary rights assignment agreement; and (ii) each Key Employee to enter into a one (1) year nonsolicitation agreement, substantially in the form approved by the Board of Directors, including at least two of the Preferred Directors. In addition, the Company shall not amend, modify, terminate, waive, or otherwise alter, in whole or in part, any of the above-referenced agreements or any restricted stock agreement between the Company and any employee, without the consent of the Board of Directors, including at least two of the Preferred Directors.

 

5.3                               Qualified Small Business Stock. The Company shall use commercially reasonable efforts to cause the shares of Series Seed Preferred Stock, Series Seed 1 Preferred Stock and Series A Preferred Stock, as well as any shares into which such shares are

 

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converted, within the meaning of Section 1202(f) of the Internal Revenue Code (the “Code”), to constitute “qualified small business stock” as defined in Section 1202(c) of the Code; provided, however, that such requirement shall not be applicable if the Board of Directors determines, in its good-faith business judgment, that such qualification is inconsistent with the best interests of the Company. The Company shall submit to its stockholders (including the Investors) and to the Internal Revenue Service any reports that may be required under Section 1202(d)(1)(C) of the Code and the regulations promulgated thereunder. In addition, within twenty (20) business days after any Investor’s written request therefor, the Company shall, at its option, either (i) deliver to such Investor a written statement indicating whether (and what portion of) such Investor’s interest in the Company constitutes “qualified small business stock” as defined in Section 1202(c) of the Code or (ii) deliver to such Investor such factual information in the Company’s possession as is reasonably necessary to enable such Investor to determine whether (and what portion of) such Investor’s interest in the Company constitutes “qualified small business stock” as defined in Section 1202(c) of the Code.

 

5.4                               Matters Requiring Investor Director Approval. So long as the holders of Preferred Stock are entitled to elect the Preferred Directors, the Company hereby covenants and agrees with each of the Investors that it shall not, without approval of the Board of Directors, which approval must include the affirmative vote of at least two of the Preferred Directors:

 

(a)                                 make, or permit any subsidiary to make, any loan or advance to, or own any stock or other securities of, any subsidiary or other corporation, partnership, or other entity unless it is wholly owned by the Company;

 

(b)                                 make, or permit any subsidiary to make, any loan or advance to any Person, including, without limitation, any employee or director of the Company or any subsidiary, except advances and similar expenditures in the ordinary course of business or under the terms of an employee stock or option plan approved by the Board of Directors;

 

(c)                                  guarantee, directly or indirectly, or permit any subsidiary to guarantee, directly or indirectly, any indebtedness except for trade accounts of the Company or any subsidiary arising in the ordinary course of business;

 

(d)                                 make any investment inconsistent with any investment policy approved by the Board of Directors;

 

(e)                                  incur any aggregate indebtedness in excess of $1,000,000 that is not already included in a budget approved by the Board of Directors, other than trade credit incurred in the ordinary course of business;

 

(f)                                   otherwise enter into or be a party to any transaction with any director, officer, or employee of the Company or any “associate” (as defined in Rule 12b-2 promulgated under the Exchange Act) of any such Person, except for transactions contemplated by this Agreement, the Purchase Agreement, or transactions made in the ordinary course of

 

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business and pursuant to reasonable requirements of the Company’s business and upon fair and reasonable terms that are approved by a majority of the Board of Directors;

 

(g)                                  hire, terminate, or change the compensation of the executive officers, including approving any option grants or stock awards to executive officers;

 

(h)                                 change the principal business of the Company, enter new lines of business, or exit the current line of business;

 

(i)                                     sell, assign, license, pledge, or encumber material technology or intellectual property, other than licenses granted in the ordinary course of business; or

 

(j)                                    enter into any corporate strategic relationship involving the payment, contribution, or assignment by the Company or to the Company of money or assets greater than $1,000,000.

 

5.5                               Employee Stock. Unless otherwise approved by the Board of Directors, including at least two of the Preferred Directors, all future employees and consultants of the Company who purchase, receive options to purchase, or receive awards of shares of the Company’s capital stock after the date hereof shall be required to execute restricted stock or option agreements, as applicable, providing for (i) vesting of shares over a four (4) year period, with the first twenty-five percent (25%) of such shares vesting following twelve (12) months of continued employment or service from service provider’s start date, and the remaining shares vesting in equal monthly installments over the following thirty-six (36) months, and (ii) a market stand-off provision substantially similar to that in Subsection 2.11. Without the prior approval by the Board of Directors, including the approval of at least two of the Preferred Directors, the Company shall not amend, modify, terminate, waive or otherwise alter, in whole or in part, any stock purchase, stock restriction or option agreement with any existing employee or service provider if such amendment would cause it to be inconsistent with this Subsection 5.5. In addition, unless otherwise approved by the Board of Directors, including at least two of the Preferred Directors, the Company shall retain (and not waive or otherwise let lapse) a “right of first refusal” on employee transfers until the Company’s IPO and shall have the right to repurchase unvested shares at cost upon termination of employment of a holder of restricted stock.

 

5.6                                     Board Matters. Unless otherwise determined by the vote of a majority of the directors then in office, the Board of Directors shall meet in person or by video conference or teleconference at least quarterly in accordance with an agreed-upon schedule. The Company shall reimburse the directors for all reasonable and actual out-of-pocket travel expenses incurred (consistent with the Company’s travel policy) in connection with attending meetings of the Board of Directors. The Company shall cause to be established, as soon as practicable after the request of the Preferred Directors, and will maintain, an audit and compensation committee, each of which shall consist solely of non-management directors. The

 

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Preferred Directors shall be entitled in such persons’ discretion to be a member of any Board of Directors committee established from time to time.

 

5.7                               Successor Indemnification. If the Company or any of its successors or assignees consolidates with or merges into any other Person and is not the continuing or surviving corporation or entity of such consolidation or merger, then to the extent necessary, proper provision shall be made so that the successors and assignees of the Company assume the obligations of the Company with respect to indemnification of members of the Board of Directors as in effect immediately before such transaction, whether such obligations are contained in the Company’s Bylaws, its Restated Certificate, or elsewhere, as the case may be.

 

5.8                               Indemnification Matters. The Company hereby acknowledges that one (1) or more of the directors nominated to serve on the Board of Directors by the Investors (each a “Fund Director”) may have certain rights to indemnification, advancement of expenses and/or insurance provided by one or more of the Investors and certain of their affiliates (collectively, the “Fund Indemnitors”). The Company hereby agrees (a) that it is the indemnitor of first resort (i.e., its obligations to any such Fund Director are primary and any obligation of the Fund Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by such Fund Director are secondary), (b) that it shall be required to advance the full amount of expenses incurred by such Fund Director and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement by or on behalf of any such Fund Director to the extent legally permitted and as required by the Restated Certificate or Bylaws of the Company (or any agreement between the Company and such Fund Director), without regard to any rights such Fund Director may have against the Fund Indemnitors, and, (c) that it irrevocably waives, relinquishes and releases the Fund Indemnitors from any and all claims against the Fund Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by the Fund Indemnitors on behalf of any such Fund Director with respect to any claim for which such Fund Director has sought indemnification from the Company shall affect the foregoing and the Fund Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such Fund Director against the Company.

 

5.9                               Right to Conduct Activities. The Company hereby agrees and acknowledges that each of Pivotal, 5AM, NEA, NEA Ventures 2018, L.P., Partners Innovation Fund, LLC, Partners Innovation Fund II, L.P., Sofinnova, Novartis, Surveyor, Cowen Healthcare Investments III LP, Wu Capital , the Fidelity Investors and RA Capital (together with their respective Affiliates) (each, a “VC Fund”) is a professional investment manager and/or fund or venture investment arm of its Affiliates, and as such invests in and reviews the business plans and related proprietary information of many enterprises, some of which may compete directly or indirectly with the Company’s business (as currently conducted or as currently propose to be conducted). The Company hereby agrees that, to the extent permitted under applicable law, no VC Fund shall be liable to the Company for any claim arising out of, or based upon, (i) the investment by any VC Fund in any entity competitive with the Company, (ii) the activities of any

 

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VC Fund’s Affiliates or (iii) actions taken by any advisor, partner, officer or other representative of any VC Fund to assist any such competitive company, whether or not such action was taken as a member of the board of directors of such competitive company or otherwise, and whether or not such action has a detrimental effect on the Company; provided, however, that the foregoing shall not relieve (x) any of the Investors from liability associated with the unauthorized disclosure of the Company’s confidential information obtained pursuant to this Agreement, or (y) any director or officer of the Company from any liability associated with his or her fiduciary duties to the Company.

 

5.10                        Real Property Holding Corporation. The Company shall provide prompt notice to NEA following any “determination date” (as defined in Treasury Regulation Section 1.897-2(c)(1)) on which the Company becomes a United States real property holding corporation as defined in the Code and any applicable regulations promulgated thereunder. In addition, upon a written request by NEA, the Company shall provide NEA with a written statement informing NEA whether NEA’s interest in the Company constitutes a United States real property interest. The Company’s determination shall comply with the requirements of Treasury Regulation Section 1.897-2(h)(1) or any successor regulation, and the Company shall provide timely notice to the Internal Revenue Service, in accordance with and to the extent required by Treasury Regulation Section 1.897-2(h)(2) or any successor regulation, that such statement has been made. The Company’s written statement to NEA shall be delivered to NEA within ten (10) days of NEA’s written request therefor. The Company’s obligation to furnish such written statement shall continue notwithstanding the fact that a class of the Company’s stock may be regularly traded on an established securities market or the fact that there is no preferred stock then outstanding.

 

5.11                        Harassment Policy. The Company shall maintain in effect (i) a code of conduct governing appropriate workplace behavior and (ii) an anti-harassment and discrimination policy prohibiting discrimination and harassment at the Company, and any changes to such policy shall require the prior approval of the Board of Directors.

 

5.12                        Investment Bankers. The Company shall not hire, terminate or amend the terms of the Company’s engagement of any investment banker without the prior written approval of the Board of Directors, including the affirmative vote of at least one Preferred Director.

 

5.13                        Anti-Corruption. The Company shall maintain systems or internal controls (including, but not limited to, accounting systems, purchasing systems and billing systems) to ensure compliance with U.S. Foreign Corrupt Practices Act of 1977, as amended, or any other applicable anti-bribery or anti-corruption law (such as Part 12 of the United States Anti-Terrorism, Crime and Security Act of 2001; the United States Money Laundering Control Act of 1986; the United States International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001; the United States Foreign Corrupt Practices Act, as amended; and laws applicable in the United Kingdom that prohibit bribery, corrupt practices or money laundering, including, for the avoidance of doubt, the Bribery Act 2010), such systems and/or controls to be typical of those adopted by similarly situated companies as the Company.

 

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5.14                        Defense Production Act of 1950. The Company shall provide prompt notice to the Investors in the event that (i) any pre-existing products or services provided by the Company (a) are re-categorized by the U.S. government as critical technologies within the meaning of the Defense Production Act of 1950, as amended, including all implementing regulations thereof, (the “DPA”), or (b) would reasonably be considered to constitute the design, fabrication, development, testing, production or manufacture of “critical technologies” (as defined in the DPA) after a re-categorization of selected technologies by the U.S. government, or (ii) after execution of the Purchase Agreement, the Company (a) engages in any activities that would reasonably be considered to constitute the design, fabrication, development, testing, production or manufacture of critical technologies, or (b) becomes a TID U.S. business within the meaning of the DPA.

 

5.15                        CFIUS Filing Cooperation.

 

(a)                                 If and only if (i) the Committee on Foreign Investment in the United States (“CFIUS”) requests or requires that any Investor or the Company file a notice or declaration (either, a “Filing”) with CFIUS pursuant to the DPA with respect to such Investor’s purchase of shares of Series B Preferred Stock pursuant to the Purchase Agreement (the “Transactions”) or (ii) either of (a) any Investor or (b) the Company determine a Filing with CFIUS with respect to the Transactions is required by or advisable in order to comply with applicable law, then each of the Company and the applicable Investor(s) (together, the “CFIUS Parties”) shall (i) cooperate and undertake their reasonable best efforts to promptly make such a Filing and promptly respond to any CFIUS request for information and/or documents with respect to such Filing and/or the Transactions; and (ii) use commercially reasonable efforts to satisfy the CFIUS Condition (as defined below), including without limitation agreeing to reasonable mitigation terms required by CFIUS to satisfy the CFIUS Condition, provided that agreement to any mitigation terms shall be at the reasonable discretion of the affected party.

 

(b)                                 The “CFIUS Condition” shall have been satisfied if, as a result of such a Filing, or as the result of the subsequent submission of a voluntary notice pursuant to 31 C.F.R. Part 800, or an agency notice to CFIUS pursuant to the DPA, (i) the CFIUS Parties have received written notice from CFIUS stating that CFIUS has concluded that the Transactions are not “covered” transactions or investments as defined by 31 C.F.R. Part 800, and therefore are not subject to review by CFIUS; or (ii) the CFIUS Parties receive written notice from CFIUS stating that either (a) the review or investigation of the Transactions under Section 721 of the DPA has concluded and that CFIUS has determined that there are no unresolved national security concerns with respect to the Transactions; (b) CFIUS shall have sent a report to the President of the United States (the “President”) requesting the President’s decision or determination with regard to the Transactions and either (A) the period under the DPA during which the President may announce his decision to take action to suspend, prohibit, or place any limitations on the Transactions shall have expired without any such action being announced or taken or (B) the President shall have announced a decision not to take any action to suspend, prohibit, or limit the Transactions; or (c) CFIUS has informed the parties that the Committee is not able to complete action under Section 721 of the DPA with respect to the Transactions on the basis of a CFIUS

 

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declaration, CFIUS has not requested that the CFIUS Parties submit a CFIUS notice and CFIUS has not initiated a unilateral CFIUS review of the Transactions, provided, however, that in the case of this subsection (ii)(c), either of (a) any Investor or (b) the Company may elect to submit a voluntary notice pursuant to 31 C.F.R. Part 800, and in that event, the CFIUS Condition shall not be satisfied until CFIUS has provided one of the responses listed in subsection (i) or (ii)(a)-(b).

 

5.16                        Intellectual Property Inventorship. Company agrees that within three (3) months of the date of this Agreement it shall (i) complete inventorship assessments relating to patent applications claiming priority to US provisional application number 62/494,866, PCT application number PCT/US2017/048257, US provisional application number 62/634,088, and PCT application number PCT/US2019/019268, said assessments to be conducted pursuant to the laws of the United States, and make any necessary changes to the Company Intellectual Property (as defined in the Purchase Agreement) where any non-joinder or mis-joinder is identified as a result of the assessment and (ii) provide reasonable assurance and confirmation, including if requested written competent proof of satisfaction of the foregoing obligation. Written competent proof may be in the form of, but not limited to, updated filing receipts, application data sheets, and Rule 92bis filings.

 

5.17                        Termination of Covenants. The covenants set forth in this Section 5, except for Subsections 5.7, 5. 14, 5.15 and 5.16, shall terminate and be of no further force or effect (i) immediately before the consummation of the IPO, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act, (iii) upon a Deemed Liquidation Event, as such term is defined in the Restated Certificate, or (iv) a Qualified Public Offering, as such term is defined in the Restated Certificate, whichever event occurs first.

 

6.                                      Miscellaneous.

 

6.1                               Successors and Assigns. The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee of Registrable Securities that (i) is an Affiliate of a Holder; (ii) is a Holder’s Immediate Family Member or trust for the benefit of an individual Holder or one or more of such Holder’s Immediate Family Members; or (iii) after such transfer, holds at least 9,000,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends, combinations, and other recapitalizations); provided, however, that (x) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee and the Registrable Securities with respect to which such rights are being transferred; and (y) such transferee agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions of Subsection 2.11. For the purposes of determining the number of shares of Registrable Securities held by a transferee, the holdings of a transferee (1) that is an Affiliate or stockholder of a Holder; (2) who is a Holder’s Immediate Family Member; or (3) that is a trust for the benefit of an individual Holder or such Holder’s Immediate Family Member shall be aggregated together and with those of the transferring Holder; provided further that all transferees who would not qualify individually for assignment of rights shall, as a condition to the applicable transfer, establish a single attorney-in-

 

27

 

fact for the purpose of exercising any rights, receiving notices, or taking any action under this Agreement. The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein.

 

6.2                               Governing Law. This Agreement shall be governed by the internal law of the State of Delaware without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

 

6.3                               Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

6.4                               Titles and Subtitles. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement.

 

6.5                               Notices.

 

(a)                                 All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile during the recipient’s normal business hours, and if not sent during normal business hours, then on the recipient’s next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All communications shall be sent to the Investors at their addresses as set forth on Schedule A hereto, or, in the case of any parties to the Agreement, to such email address, facsimile number, or address as subsequently modified by written notice given in accordance with this Subsection 6.5. If notice is given to the Company, it shall be sent to 645 Summer Street, Suite 200, Boston, MA 02210, Attention: General Counsel; and a copy (which shall not constitute notice) shall also be sent to Gunderson Dettmer Villeneuve Stough Franklin & Hachigian, LLP, One Marine Park Drive, Suite 900, Boston, MA 02210, Attention: Timothy H. Ehrlich; and if notice is given to the Investors, a copy shall also be given to Cooley LLP, 101 California Street, 5th Floor, San Francisco, CA 94111, Attention: Dave Peinsipp.

 

(b)                                 Consent to Electronic Notice. Each Investor consents to the delivery of any stockholder notice pursuant to the Delaware General Corporation Law (the “DGCL”), as amended or superseded from time to time, by electronic transmission pursuant

 

28

 

to Section 232 of the DGCL (or any successor thereto) at the electronic mail address or the facsimile number as on the books of the Company. To the extent that any notice given by means of electronic transmission is returned or undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected electronic mail address has been provided, and such attempted electronic notice shall be ineffective and deemed to not have been given. Each Investor agrees to promptly notify the Company of any change in such stockholder’s electronic mail address, and that failure to do so shall not affect the foregoing.

 

6.6                               Amendments and Waivers. Any term of this Agreement may be amended, modified or terminated and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company and the holders of at least seventy-one (71%) of the Registrable Securities then outstanding, voting as a separate class and on an as-converted to Common Stock basis, provided that the Company may in its sole discretion waive compliance with Subsection 2.12(c) (and the Company’s failure to object promptly in writing after notification of a proposed assignment allegedly in violation of Subsection 2.12(c) shall be deemed to be a waiver); and provided further that the rights of any VC Fund under Subections 3.3 or 5.9 may be waived only with the written consent of such VC Fund, for so long as such VC Fund holds any Registrable Securities; and provided further that any provision hereof may be waived by any waiving party on such party’s own behalf, without the consent of any other party. Notwithstanding the foregoing, (a) this Agreement may not be amended, modified or terminated and the observance of any term hereof may not be waived with respect to any Investor without the written consent of such Investor, unless such amendment, modification, termination, or waiver applies to all Investors in the same fashion (it being agreed that a waiver of the provisions of Section 4 with respect to a particular transaction shall be deemed to apply to all Investors in the same fashion if such waiver does so by its terms, notwithstanding the fact that certain Investors may nonetheless, by agreement with the Company, purchase securities in such transaction), (b) Subsections 3.1 and 3.2, Section 4 and any other section of this Agreement applicable to the Major Investors (including this clause (b) of this Subsection 6.6) may not be amended, modified, terminated or waived without the written consent of the holders of at least a majority of the Registrable Securities then outstanding and held by the Major Investors, (c) Subsections 5.15, 5.16 and this Section 6.6(c) may not be amended, modified, terminated or waived without the written consent of Pivotal and (d) Subsection 3.1, solely with respect to the Fidelity Investors, may not be amended, modified, terminated or waived in a manner that is adverse to the Fidelity Investors. Notwithstanding the foregoing, Schedule A hereto may be amended by the Company from time to time to add transferees of any Registrable Securities in compliance with the terms of this Agreement without the consent of the other parties; and Schedule A hereto may also be amended by the Company after the date of this Agreement without the consent of the other parties to add information regarding any additional Investor who becomes a party to this Agreement in accordance with Subsection 6.9. The Company shall give prompt notice of any amendment, modification or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, modification, termination, or waiver. Any amendment, modification, termination, or waiver effected in accordance with this Subsection 6.6 shall be binding on all parties hereto, regardless of whether any such party has

 

29

 

consented thereto. No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition, or provision.

 

6.7                               Severability. In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.

 

6.8                               Aggregation of Stock. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such rights as among themselves in any manner they deem appropriate.

 

6.9                               Additional Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of the Company’s Preferred Stock after the date hereof, any purchaser of such shares of Preferred Stock may become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement, and thereafter shall be deemed an “Investor” for all purposes hereunder. No action or consent by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor has agreed in writing to be bound by all of the obligations as an “Investor” hereunder.

 

6.10                        Entire Agreement. This Agreement (including any Schedules and Exhibits hereto) constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled. Upon the effectiveness of this Agreement, the Prior Agreement shall be deemed amended and restated and superseded and replaced in its entirety by this Agreement, and shall be of no further force or effect.

 

6.11                        Acknowledgment. The Company acknowledges that the Investors are in the business of venture capital investing and therefore review the business plans and related proprietary information of many enterprises, including enterprises which may have products or services which compete directly or indirectly with those of the Company. Nothing in this Agreement will preclude or restrict the Investors from investing or participating in any particular enterprise.

 

6.12                        Dispute Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Delaware or the United States District Court for the District of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such

 

30

 

suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

 

WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

The prevailing party shall be entitled to reasonable attorney’s fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled.

 

6.13                        Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

[Remainder of Page Intentionally Left Blank]

 

 

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

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
AKOUOS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Emmanuel Simons
    
	
 
    	
Emmanuel Simons, President and CEO
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Emmanuel Simons
    
	
 
    	
 
    	
Emmanuel Simons
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
5AM   VENTURES V, L.P.
    
	
 
    	
 
    
	
 
    	
By:   5AM Partners V, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kush Parmar
    
	
 
    	
Name:   Kush Parmar
    
	
 
    	
Title:   Managing Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
5AM   OPPORTUNITIES I, L.P.
    
	
 
    	
 
    
	
 
    	
By:   5AM Opportunities I (GP), LLC, its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kush Parmar
    
	
 
    	
Name:   Kush Parmar
    
	
 
    	
Title:   Managing Member
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
NEW   ENTERPRISE ASSOCIATES 16, L.P.
    
	
 
    	
 
    
	
 
    	
By:   NEA Partners 16, L.P., its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Louis Citron
    
	
 
    	
Name:   Louis Citron
    
	
 
    	
Title:   Chief Legal Officer
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
NEA VENTURES 2018, L.P.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Louis Citron
    
	
 
    	
Name:   Louis Citron
    
	
 
    	
Title:   Vice President
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Jason Fuller
    
	
 
    	
Jason   Fuller
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
NOVARTIS   BIOVENTURES LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bart Dzikowski
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Bart Dzikowski
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Secretary of the Board
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephan Sandmeier
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Stephan Sandmeier
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
PARTNERS   INNOVATION FUND, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Julius Knowles
    
	
 
    	
Name: Julius Knowles
    
	
 
    	
Its: Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PARTNERS   INNOVATION FUND II, L.P.
    
	
 
    	
By: Partners Innovation   II, LLC
    
	
 
    	
Its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Julius Knowles
    
	
 
    	
Name: Julius Knowles
    
	
 
    	
Title: Partner
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
RA CAPITAL HEALTHCARE FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:   RA Capital Healthcare Fund GP, LLC 
   Its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter Kolchinsky
    
	
 
    	
Name:   Peter   Kolchinsky
    
	
 
    	
Title:        Manager
    
	
 
    	
 
    
	
 
    	
Address:
    	
RA   Capital Management, L.P.
    
	
 
    	
 
    	
200   Berkeley Street
    
	
 
    	
 
    	
18th Floor
    
	
 
    	
 
    	
Boston,   MA 02116
    
	
 
    	
 
    	
Attn:   General Counsel
    
				

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
BLACKWELL PARTNERS LLC - SERIES A
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Abayomi A. Adigun
    
	
 
    	
Name:   Abayomi A. Adigun
    
	
 
    	
Title:   Investment Manager
    
	
 
    	
DUMAC, Inc., Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jannine M. Lall
    
	
 
    	
Name:   Jannine M. Lall
    
	
 
    	
Title:   Head of Finance & Controller
    
	
 
    	
DUMAC, Inc., Authorized Signatory
    
	
 
    	
 
    
	
 
    	
Address:
    	
Blackwell   Partners LLC - Series A
    
	
 
    	
 
    	
280   S. Mangum Street
    
	
 
    	
 
    	
Suite 210
    
	
 
    	
 
    	
Durham,   NC 27701
    
	
 
    	
 
    	
Attn:   Jannine Lall
    
				

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
RA CAPITAL NEXUS FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:   RA Capital Nexus Fund GP, LLC
    
	
 
    	
Its   General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Peter Kolchinsky
    
	
 
    	
Name:   Peter Kolchinsky
    
	
 
    	
Title:   Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address:
    	
RA   Capital Management, L.P.
    
	
 
    	
 
    	
200   Berkeley Street
    
	
 
    	
 
    	
18th Floor
    
	
 
    	
 
    	
Boston,   MA 02116
    
	
 
    	
 
    	
Attn:   General Counsel
    
				

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
SOFINNOVA VENTURE PARTNERS X, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Sofinnova Management X, L.L.C.
    
	
 
    	
             its   General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   James Healy
    
	
 
    	
Name:   James Healy
    
	
 
    	
Title:   Managing Member
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
PIVOTAL   BIOVENTURE PARTNERS FUND I, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Pivotal bioVenture Partners Fund I G.P., L.P., 
   its general partner
    
	
 
    	
 
    
	
 
    	
By:   Pivotal bioVenture Partners Fund I U.G.P. Ltd, 
   its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Heather Preston
    
	
 
    	
Name:   Heather Preston
    
	
 
    	
Title:   Managing Partner
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
FIDELITY   MT. VERNON STREET TRUST:
   FIDELITY SERIES GROWTH COMPANY FUND
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Colm Hogan
    
	
 
    	
Name:   Colm Hogan
    
	
 
    	
Title:   Authorized Signatory
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
FIDELITY   MT. VERNON STREET
    
	
 
    	
TRUST:   FIDELITY GROWTH COMPANY FUND
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Colm Hogan
    
	
 
    	
Name:   Colm Hogan
    
	
 
    	
Title:   Authorized Signatory
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
FIDELITY   GROWTH COMPANY
    
	
 
    	
COMMINGLED   POOL
    
	
 
    	
 
    
	
 
    	
By: Fidelity Management   Trust Company, as Trustee
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Colm Hogan
    
	
 
    	
Name:   Colm Hogan
    
	
 
    	
Title:   Authorized Signatory
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
FIDELITY   MT. VERNON STREET TRUST: 
    
	
 
    	
FIDELITY   GROWTH COMPANY K6 FUND
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Colm Hogan
    
	
 
    	
Name:   Colm Hogan
    
	
 
    	
Title:   Authorized Signatory
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
CORMORANT   PRIVATE HEALTHCARE FUND II, LP
    
	
 
    	
 
    
	
 
    	
By:   Cormorant Private Healthcare GP II, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bihua Chen
    
	
 
    	
Name:   Bihua Chen
    
	
 
    	
Title:   Managing Member of the GP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CORMORANT   GLOBAL HEALTHCARE MASTER FUND, LP
    
	
 
    	
 
    
	
 
    	
By:   Cormorant Global Healthcare GP, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bihua Chen
    
	
 
    	
Name:   Bihua Chen
    
	
 
    	
Title:   Managing Member of the GP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CRMA   SPV, LP
    
	
 
    	
 
    
	
 
    	
By:   Cormorant Asset Management, LP
    
	
 
    	
Its:   Attorney-In-Fact
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bihua Chen
    
	
 
    	
Name:   Bihua Chen
    
	
 
    	
Title:   Managing Member of the GP
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
CITADEL   MULTI-STRATEGY EQUITIES MASTER FUND LTD.
    
	
 
    	
 
    
	
 
    	
By:   Citadel Advisors LLC, its portfolio manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Noah Goldberg
    
	
 
    	
Name:   Noah Goldberg
    
	
 
    	
Title:   Authorized Signatory
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
ECOR1   CAPITAL FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:   EcoRI Capital, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Oleg Nodelman
    
	
 
    	
Name:   Oleg Nodelman
    
	
 
    	
Title:   Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ECOR1   CAPITAL FUND QUALIFIED, L.P.
    
	
 
    	
 
    
	
 
    	
By:   EcoRI Capital, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Oleg Nodelman
    
	
 
    	
Name:   Oleg Nodelman
    
	
 
    	
Title:   Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ECOR1   VENTURE OPPORTUNITY FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Biotech Opportunity GP, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Oleg Nodelman
    
	
 
    	
Name:   Oleg Nodelman
    
	
 
    	
Title:   Manager
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
COWEN HEALTHCARE INVESTMENTS III LP
    
	
 
    	
 
    
	
 
    	
By:   Cowen Healthcare Investments III GP LLC,
    
	
 
    	
its   General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kevin Raidy
    
	
 
    	
Name:   Kevin Raidy
    
	
 
    	
Title:   Managing Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CHI EF III LP
    
	
 
    	
 
    
	
 
    	
By:   Cowen Healthcare Investments III GP LLC,
    
	
 
    	
its   General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kevin Raidy
    
	
 
    	
Name:   Kevin Raidy
    
	
 
    	
Title:   Managing Partner
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
MARSHFIELD   ADVISERS, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   D. Robert Nydegger
    
	
 
    	
Name:   D. Robert Nydegger
    
	
 
    	
Title:   General Manager
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
WU   CAPITAL LLC
    
	
 
    	
 
    
	
 
    	
By:   WU CAPITAL LLC
    
	
 
    	
Its:   Director
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Yajun Wu
    
	
 
    	
Name:   Yajun Wu
    
	
 
    	
Title:   Director
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
THE STUART PARTNERS, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Anastasios Parafestas
    
	
 
    	
Name: Anastasios Parafestas
    
	
 
    	
Title: Manager of its Managing Member
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
POLARIS   FOUNDERS CAPITAL FUND I, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Polaris Founders Capital Management Co. I, L.L.C., its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Greg Rubin
    
	
 
    	
Name:   Greg Rubin
    
	
 
    	
Title:   General Partner
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
G&H   PARTNERS
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stefan Palmer
    
	
 
    	
Name:   Stefan Palmer
    
	
 
    	
Title:   General Partner
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Kavita Patel
    
	
 
    	
Kavita   Patel
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Tak Cheung
    
	
 
    	
Tak   Cheung
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Raghav Bhargava
    
	
 
    	
Raghav   Bhargava
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

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

 

 

	
 
    	
INVESTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Matt McAviney
    
	
 
    	
Matt   McAviney
    

 

SIGNATURE PAGE TO AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

 

 

SCHEDULE A 

 

INVESTORS

 

	
Name and Address of Investors
    	
 
    
	
 
    	
 
    
	
Emmanuel Simons
   [**]
    	
 
    
	
 
    	
 
    
	
5AM Ventures V, L.P.
   501 Second Street, Suite 350

San Francisco, CA 94107

finance@5amventures.com
    	
 
    
	
 
    	
 
    
	
5AM Opportunities I, L.P.

501 Second Street, Suite 350

San Francisco, CA 94107

finance@5amventures.com
    	
 
    
	
 
    	
 
    
	
New Enterprise Associates 16, L.P.
   c/o New Enterprise Associates 

1954 Greenspring Drive, Suite 600
   Timonium, MD 21093
    	
 
    
	
 
    	
 
    
	
NEA Ventures 2018, L.P.
   c/o New Enterprise Associates 

1954 Greenspring Drive, Suite 600
   Timonium, MD 21093
    	
 
    
	
 
    	
 
    
	
Jason Fuller
   c/o New Enterprise Associates

1954 Greenspring Drive, Suite 600
   Timonium, MD 21093
    	
 
    
	
 
    	
 
    
	
Novartis Bioventures Ltd.
   Lichtstrasse 35
   Novartis Campus, Forum 1-1.32 

Attn: Stephan Sandmeier
   CH-4056 Basel, Switzerland 

nvf.notifications@nvfund.com
    
   With a copy to:
    
   Novartis Venture Fund 

Attn: Campbell Murray 

196 Broadway, 1st Floor 

Cambridge, MA 02139
   campbell.murray@nvfund.com
    	
 
    

 

 

	
Name   and Address of Investors
    	
 
    
	
 
    	
 
    
	
Partners Innovation Fund, LLC
   215 First St., Suite 500
   Cambridge, MA 02142
    	
 
    
	
 
    	
 
    
	
Partners Innovation Fund II, L.P.
   215 First St., Suite 500
   Cambridge, MA 02142
    	
 
    
	
 
    	
 
    
	
RA Capital Healthcare Fund, L.P.
   RA Capital Management, L.P.
   200 Berkeley Street
   18th Floor
   Boston, MA 02116
   Attn: General Counsel
    	
 
    
	
 
    	
 
    
	
Blackwell Partners LLC — Series A
   280 S. Mangum Street
   Suite 210
   Durham, NC 27701
   Attn: Jannine Lall
    	
 
    
	
 
    	
 
    
	
RA Capital Nexus Fund, L.P.

RA Capital Management, L.P.
   200 Berkeley Street
   18th Floor
   Boston, MA 02116
   Attn: General Counsel
    	
 
    
	
 
    	
 
    
	
Sofinnova Venture Partners X, L.P.
   3000 Sand Hill Road, Bldg. 4,
   Suite 250
   Menlo Park, CA 94025
    	
 
    
	
 
    	
 
    
	
Pivotal bioVenture Partners Fund I, L.P.
   501 2nd Street, Suite 216
   San Francisco, CA 94107
    	
 
    

 

 

	
Name   and Address of Investors
    	
 
    
	
 
    	
 
    
	
Fidelity Mt. Vernon Street Trust: Fidelity   Series Growth Company Fund
   Mag & Co.
   c/o Brown Brothers Harriman & Co.

Attn: Corporate Actions /Vault
   140 Broadway
   New York, NY 10005 BBH.Fidelity.CA.Notifications@BBH.com
    	
 
    
	
 
    	
 
    
	
Fidelity Mt. Vernon Street Trust: Fidelity   Growth Company Fund
   BNY MELLON
   ONE BNY MELLON CENTER
   500 GRANT STREET AIM 151-2700
   PITTSBURGH, PA 15258
    	
 
    
	
 
    	
 
    
	
Fidelity Growth Company Commingled Pool
    By: Fidelity Management Trust Company, as   Trustee
   Mag & Co.
   c/o Brown Brothers Harriman & Co.

Attn: Corporate Actions /Vault
   140 Broadway
   New York, NY 10005 BBH.Fidelity.CA.Notifications@BBH.com
    	
 
    
	
 
    	
 
    
	
Fidelity Mt. Vernon Street Trust: Fidelity   Growth Company K6 Fund
   Mag & Co.
   c/o Brown Brothers Harriman & Co.

Attn: Corporate Actions /Vault
   140 Broadway
   New York, NY 10005 BBH.Fidelity.CA.Notifications@BBH.com
    	
 
    
	
 
    	
 
    
	
Cormorant Private Healthcare Fund II, LP
   200 Clarendon Street, 52nd Floor

Boston, MA 02116
    	
 
    
	
 
    	
 
    
	
Cormorant Global Healthcare Master Fund, LP
   200 Clarendon Street, 52nd Floor

Boston, MA 02116
    	
 
    
	
 
    	
 
    
	
CRMA SPV, LP
   PO Box 309, Ugland House
   Grand Cayman; KY1-1104 Cayman Islands
    	
 
    

 

 

	
Name   and Address of Investors
    	
 
    
	
 
    	
 
    
	
Citadel Multi-Strategy Equities Master Fund LTD.
   c/o Citadel Advisors LLC

601 Lexington Avenue

New York, New York
   Attention: Noah Goldberg and Harry Greenbaum
   CitadelAgreementNotice@citadel.com;

noah.goldberg@citadel.com;   Harry.Greenbaum@citadel.com
    
   With copies to:
    
   Choate, Hall & Stewart, LLP

Two International Place

Boston, MA 02100
   Attention: Brian P. Lenihan and Tobin P. Sullivan

blenihan@choate.com; tsullivan@choate.com
    	
 
    
	
 
    	
 
    
	
EcoR1 Capital Fund, L.P.
   EcoR1 Capital, LLC

357 Tehama Street #3
   San Francisco, CA 94103
    	
 
    
	
 
    	
 
    
	
EcoR1 Capital Fund Qualified, L.P.
   EcoR1 Capital, LLC

357 Tehama Street #3
   San Francisco, CA 94103
    	
 
    
	
 
    	
 
    
	
EcoR1 Venture Opportunity Fund, L.P.
   EcoR1 Capital, LLC

357 Tehama Street #3
   San Francisco, CA 94103
    	
 
    
	
 
    	
 
    
	
Cowen Healthcare Investments III LP
   c/o CHI Advisors LLC
   599 Lexington Avenue, 19th Floor 

New York, NY 10022
   Attention: General Counsel

tim.anderson@cowen.com; legal@cowen.com
    	
 
    
	
 
    	
 
    
	
CHI EF III LP
   c/o CHI Advisors LLC
   599 Lexington Avenue, 19th Floor

New York, NY 10022
   Attention: General Counsel

tim.anderson@cowen.com; legal@cowen.com
    	
 
    

 

 

	
Name   and Address of Investors
    	
 
    
	
 
    	
 
    
	
Marshfield Advisers, LLC 

Marshfield Advisers, LLC 

60 East South Temple Street, 

Suite 400
   Salt Lake City, UT 84111

Attn: Mitch Laubaugh 

Telephone: 
    	
 
    
	
 
    	
 
    
	
Wu Capital LLC
   Hannah Chang, M.D. Ph.D. 

Investment Director
   Wu Capital
   1065 East Hillsdale Blvd, Suite 245 

Foster City, CA 94404
    	
 
    
	
 
    	
 
    
	
The Stuart Partners, LLC
   One Joy Street 

Boston, MA 02108

 

 
    	
 
    
	
 
    	
 
    
	
Polaris Founders Capital Fund I, L.P.

1 Marina Park Drive, 10th Floor 

Boston, MA 02210
    	
 
    
	
 
    	
 
    
	
G&H Partners
   c/o Gunderson Dettmer
   One Marina Park Drive, Suite 900 

Boston, MA 02210
    	
 
    
	
 
    	
 
    
	
Kavita Patel
   [**]
    	
 
    
	
 
    	
 
    
	
Tak Cheung
   [**]
    	
 
    
	
 
    	
 
    
	
Raghav Bhargava
   New Enterprise Associates
   [**]
    	
 
    
	
 
    	
 
    
	
Matt McAviney
   [**]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00310-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00310-of-00352.parquet"}]]