Document:

Document

									
	

		MorphoSys AG
Semmelweisstraße 7
82152 Planegg
Germany

Telefon:   +49 (0)89 899 27-0
Fax:         +49 (0)89 899 27-222
Email:    info@morphosys.com
Internet:  www.morphosys.com

MorphoSys US Inc.
470 Atlantic Avenue
Boston, MA 02210
USA

RSUP 2021 (US Inc.)
Restricted Stock Unit Program 2021 (US Inc.) for senior managers and employees (including directors and officers) of MorphoSys US Inc. 

Introduced by decision of the Vorstand of MorphoSys AG, with the consent of the Supervisory Board of MorphoSys AG, as of October 1, 2021

			
	- Terms and Conditions -

MorphoSys AG
Semmelweisstraße 7
82152 Planegg
Germany

MorphoSys US Inc.
470 Atlantic Avenue
Boston, MA 02210
USA

												
	Vorstand
Dr. Jean-Paul Kress (Vorsitzender),
Sung Lee, Dr. Malte Peters,     Dr. Roland Wandeler
Vorsitzender des Aufsichtsrats
Dr. Marc Cluzel
	Bankverbindung
Commerzbank
BLZ: 700 800 00
Kto.: 0349775600
IBAN: DE73 7008 0000 0349 7756 00
SWIFT (BIC): DRESDEFF700
	St.-Nr.
9143/101/21259
USt-ID. Nr.
DE 15506 9821

	Sitz der Gesellschaft
Planegg, Landkreis München
Handelsregister
AG München HRB 121023

    

TABLE OF CONTENT
						
	TABLE OF CONTENT
	2

	DEFINITIONS
	3

	RECITALS
	4

	§  1    ELIGIBILITY
	5

	§  2    PLAN VOLUME AND GRANT OF RSUs
	5

	§  3    WAITING PERIOD, ANNUAL CYCLE AND VESTING
	6

	§  4    KEY PERFORMANCE INDICATORS
	7

	§  5    CONSEQUENCES OF A TERMINATION OF EMPLOYMENT
	11

	§ 6 CASH PAYMENT CLAIM RESULTING FROM RSUs AND SETTLEMENT OF RSUs; CASHLESS EXERCISE OPTION
	12

	§  7    TRANSFERABILlTY
	15

	§  8    CHANGE OF CONTROL
	15

	§ 9    ADJUSTMENT IN CASE OF SPECIFIC CAPITAL AND OTHER STRUCTURAL MEASURES
	17

	§ 10    EXTRAORDINARY DEVELOPMENTS
	18

	§ 11    INSIDER TRADING AND BLACK-OUT PERIODS
	19

	§ 12    LIMITATION OF LIABILITY
	19

	§ 13    TAXES, SOCIAL SECURITY AND COSTS
	20

	§ 14    FORM REQUIREMENTS
	22

	§ 15    PROCESSING OF PERSONAL DATA
	22

	§ 16    GOVERNING LAW AND JURISDICTION
	22

	§ 17    FINAL PROVISIONS
	23

Page 2/27

DEFINITIONS 
															
	Adjustment Event	17		Hurdle	9
	Annual Cycle	7		Initial Number of RSUs	6
	Annual Cycles	7		Insider Trading Rules	19
	Authorized Capital 2021-III	4		KPI	7
	Award Agreement	5		KPI Achievement Rate	9
	Award Amount	5		KPIs	7
	Award Date	6		MorphoSys	4
	Bad Leaver	11		MorphoSys US	4
	Black-Out Periods	19		Notices	22
	Board of Directors	5		Overall KPI Achievement Rate	9
	Cap	9		Participant	5
	Capital Increase Resolution Date	13		Revenue KPI	8
	Cash Payment Claim	12		Revenue KPI Achievement Rate	9
	Cash Settlement	13		Revenue Performance	8
	Cash Settlement Date	13		RSU	4
	Cashless Exercise Option	15		RSUP 2021 (US Inc.)	4
	Cause	11		RSUP Resolution	4
	Change of Control	15		RSUP Terms & Conditions	4
	Company	4		RSUs	4
	Contribution Margin KPI	7		Service Provider	15
	Contribution Margin KPI Achievement Rate	9		Share Price KPI	8
	Contribution Margin Performance	8		Share Price KPI Achievement Rate	9
	Conversion	5		Share Price Performance	8
	Data Subjects	24		Share Settlement	13
	Employees	4		Share Settlement Date	14
	Euro Award Amount	5		Shares	4
	External Service Provider	25		Termination Date	12
	Extraordinary Events or Developments	18		Transaction	19
	GDPR	24		Vested RSUs	7
	Good Leaver	12		Waiting Period	6
				Waiting Period Expiration Date	6

												
				

Page 3/26

    

RECITALS
An attractive and competitive remuneration program is essential for the recruitment and long-term commitment of highly qualified employees. 
In JuIy 2018, MorphoSys AG (“MorphoSys” or the “Company”) has founded a 100% subsidiary in the USA, MorphoSys US Inc. (“MorphoSys US”). As part of MorphoSys’ intention to develop a strong presence in the USA and recruit and retain highly qualified employees at MorphoSys US, a share-based employee participation program is required which takes into account US standards and expectations. 
Therefore, MorphoSys intends to implement a “Restricted Stock Unit Program” (the “RSUP 2021 (US Inc.)”) as a long-term remuneration component for senior managers and employees of MorphoSys US (including directors and officers of MorphoSys US) (hereinafter collectively the “Employees”). Under the RSUP 2021 (US Inc.), the Company shall be allowed to grant so-called “Restricted Stock Units” (“RSUs” and each a “RSU”) to the Employees, which – if certain requirements are met – grant the Employees a claim against the Company for a cash payment, the amount of which depends, amongst others, on the stock exchange price of the shares of the Company (the “Shares”). However, the RSUP 2021 (US Inc.) shall include a substitution right of the Company, permitting it to fulfil the payment claims of the Employees resulting from the RSUs by delivering Shares instead of cash. 
With resolution dated May 19, 2021, the Company’s General Meeting (Hauptversammlung) has authorized the Management Board (Vorstand), with the consent of the Supervisory Board (Aufsichtsrat), until May 18, 2026 (including) to increase the Company’s registered share capital by up to € 315,000.00 against cash contributions and/or contributions in kind once or several times by issuing up to 315,000 new no-par value bearer Shares (auf den Inhaber lautende Stückaktien) (“Authorized Capital 2021-III”). The Authorized Capital 2021-III only serves the purpose of delivering Shares of the Company against the contribution of cash payment claims resulting from RSUs, in order to settle RSUs that were granted to Employees.
The present terms and conditions (the “RSUP Terms & Conditions”) establish the rules pursuant to which the RSUs under the RSUP 2021 (US Inc.) can be granted and settled.
Page 4/27

    

§ 1
ELIGIBILITY
1.1RSUs can be granted to Employees (each a “Participant”). 
1.2Persons who, at the same time to being an Employee, are members of the Company’s Management Board, or are an employee of the Company, are not eligible to participate in the RSUP 2021 (US Inc.).
1.3Eligibility as a Participant is determined by the Company’s Management Board. The President of MorphoSys US, together with the board of directors of MorphoSys US (“Board of Directors”) may propose certain Employees to the Company’s Management Board to become eligible as a Participant. 
§ 2
PLAN VOLUME AND GRANT OF RSUs
2.1Under the RSUP 2021 (US Inc.), up to an aggregate of 180,000 RSUs may be granted. RSUs that are forfeited pursuant to the RSUP Terms & Conditions will once again be available for future grants. 
2.2The Company’s Management Board will determine an individual USD award amount (the “Award Amount”) to be granted to a Participant by MorphoSys US by way of a separate award agreement (“Award Agreement”) and such Award Amount will be converted into a certain number of RSUs.
2.3With respect to the conversion of the Award Amount into RSUs, i.e., to calculate the exact number of RSUs to be allocated to a Participant, the respective Award Amount must, in a first step, be converted into a respective amount in Euros (the “Conversion”). The Conversion shall be based on the Euro foreign exchange reference rate, as published on the official website of the European Central Bank (ECB) on the Award Date (as defined in § 2.5) (the “Euro Award Amount”). In a second step, the Euro Award Amount is divided by the average closing price (Schlusskurs) of the Shares on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) in Xetra trading (or a comparable successor system) on the 30 (thirty) trading days prior to the Award Date (as defined in § 2.5) (exclusive), rounded down to the nearest 
Page 5/27

    

whole number; the number resulting from such calculation (step one and step two) equals the number of RSUs to be allocated to a Participant (the “Initial Number of RSUs”). If a closing auction does not take place on the relevant trading day(s) or a price is not determined in the auction, the applicable price will be the last price quoted in continuous trading, provided there was continuous trading on that trading day.
For example: If a Participant is granted an Award Amount of USD 100,000.00 and the USD/EUR exchange rate on the Award Date is 1 USD = 0.9060 EUR, then the Euro Award Amount amounts to EUR 90,600 (100,000.00 x 0.9060). If the average closing price (Schlusskurs) of the Shares on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) in Xetra trading on the 30 trading days prior to the Award Date amounted to EUR 105.00, then the Initial Number of RSUs to be allocated to the Participant would amount to 862 (EUR 90,600.00 / EUR 105.00 = 862.85, rounded down to the nearest whole number).
2.4RSUs can be awarded in accordance with legal requirements in each case on October 1 and, in exceptional cases, on April 1 of the respective business year of the Company, subject to a continuing and non-terminated (including termination by way of a mutual agreement) service relationship or employment of the relevant Participant with MorphoSys US at the relevant Award Date (as defined in § 2.5).
2.5The date on which the Award Agreement becomes effective (the “Award Date”) shall be the date on which the Participant receives the offer to conclude the Award Agreement (irrespective of the point in time the offer to conclude the Award Agreement is accepted), unless the Award Agreement specifies an earlier or a later date as Award Date.
§ 3
WAITING PERIOD, ANNUAL CYCLE AND VESTING 
3.1Each RSU is subject to a waiting period of three (3) years (“Waiting Period”), which shall commence on the Award Date at 00:00 hours (beginning of the day) and end on the day prior to the third anniversary 
Page 6/27

    

of the Award Date at 24:00 hours (midnight) (“Waiting Period Expiration Date”).
For example: If the Award Date is October 1, 2021, the Waiting Period would start on October 1, 2021, at 00:00 hours (beginning of the day) and end on September 30, 2024, at 24:00 hours (midnight).
3.2The Waiting Period is divided into three annual cycles (“Annual Cycles”). The first Annual Cycle will commence on the Award Date at 00:00 hours (beginning of the day) and end on the day prior to the first anniversary of the Award Date at 24:00 hours (midnight), the second Annual Cycle will commence on the day of the first anniversary of the Award Date at 00:00 hours (beginning of the day) and end on the day prior to the second anniversary of the Award Date at 24:00 hours (midnight) and the third Annual Cycle will commence on the day of the second anniversary of the Award Date at 00:00 hours (beginning of the day) and end on the day prior to the third anniversary of the Award Date at 24:00 hours (midnight) (each an “Annual Cycle”). 
3.3One third (1/3) of the Initial Number of RSUs will vest at the end of each Annual Cycle subject to the following conditions: (i) the achievement of certain KPIs (§ 4) and (ii) no forfeiture of RSUs pursuant to § 5 (the “Vested RSUs”).
3.4After expiry of the Waiting Period and an administration period in which to determine the settlement amounts, the Company will settle the total number of Vested RSUs; provided, that such settlement shall occur no later than 90 days following the Waiting Period Expiration Date. 
§ 4
KEY PERFORMANCE INDICATORS
4.1With respect to an Annual Cycle, RSUs will vest only if and to the extent the KPIs (as defined in § 4.2) have been reached or exceeded in accordance with the following provisions. 
4.2Key Performance Indicators (“KPIs”, and each a “KPI”) are: 
Page 7/27

    

4.2.1the contribution margin performance of MorphoSys US over the fiscal year in which an Annual Cycle starts, measured and evaluated in relation to the Contribution Margin Performance (as defined in § 4.3) set by the Board of Directors, with the consent of the Company’s Management Board (“Contribution Margin KPI”);
4.2.2the revenue performance of MorphoSys US over the fiscal year in which an Annual Cycle starts, measured and evaluated in relation to the Revenue Performance (as defined in § 4.3) set by the Board of Directors, with the consent of the Company’s Management Board (“Revenue KPI”); and
4.2.3the performance of the stock exchange price of the Shares on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) in Xetra trading (or a comparable successor system) over the Annual Cycle, measured and evaluated in relation to the Share Price Performance (as defined in § 4.3) set by the Board of Directors, with the consent of the Company’s Management Board (“Share Price KPI”).
    For example: If an Annual Cycle starts on October 1, 2021, the KPIs will be measured and evaluated on the basis of the contribution margin performance and the revenue performance during the fiscal year starting January 1, 2021, through December 31, 2021, and the share price performance will be measured and evaluated on the basis of the share price performance during October 1, 2021 until September 30, 2022. If the second Annual Cycle starts on October 1, 2022, the KPIs will be measured and evaluated on the basis of the contribution margin performance and the revenue performance during the fiscal year starting January 1, 2022, through December 31, 2022, and the share price performance will be measured and evaluated on the basis of the share price performance during October 1, 2022, until September 30, 2023. If the third Annual Cycle starts on October 1, 2023, the KPIs will be measured and evaluated on the basis of the contribution margin performance and the revenue performance during the fiscal year starting January 1, 2023, through December 31, 2023, and the share price performance will be measured and evaluated on the basis of the 
Page 8/27

    

share price performance during October 1, 2023, until September 30, 2024.
4.3The Board of Directors, with the consent of the Company’s Management Board, will determine the performance to be achieved for each KPI with respect to a certain Annual Cycle (respectively the “Contribution Margin Performance”, the “Revenue Performance” and the “Share Price Performance”) and which will, depending on the degree of achievement (as a percentage) of each KPI, correspond with a certain “KPI Achievement Rate” for the respective Annual Cycle, respectively the “Contribution Margin KPI Achievement Rate”, the “Revenue KPI Achievement Rate”  and the “Share Price KPI Achievement Rate” for the respective Annual Cycle. If the KPI Achievement Rate for any of the KPIs exceeds 175%, the respective KPI Achievement Rate will nevertheless be 175% (“Cap”).
4.4Once the Board of Directors, with the consent of the Company’s Management Board, has determined the KPIs for a certain Annual Cycle pursuant to section 4.3, the Participant will be provided with such information. 
4.5The “Overall KPI Achievement Rate” for a respective Annual Cycle will be calculated as the sum of (i) the Contribution Margin KPI Achievement Rate, multiplied by 0.2, (ii) the Revenue KPI Achievement Rate, multiplied by 0.4, and the (iii) Share Price KPI Achievement Rate, multiplied by 0.4, each of which will be determined in accordance with the KPIs that will be provided to a Participant for each Annual Cycle in accordance with § 4.4. and the result rounded commercially to the nearest whole number.
For example: If the Contribution Margin KPI Achievement Rate for an Annual Cycle is 78%, the Revenue KPI Achievement Rate is 35% and the Share Price KPI Achievement Rate is 180%, the Overall KPI Achievement Rate will be calculated as follows:
Note: In accordance with § 4.3, the Share Price KPI Achievement Rate was capped at 175%. 
Page 9/27

    

78 * 0,2 + 35 * 0.4 + 175 * 0.4 = 99.60%, i.e. 100% (rounded commercially to the nearest whole number). 
4.6The number of Vested RSUs at the end of an Annual Cycle will be calculated by multiplying (i) one third (1/3) of the Initial Number of RSUs allocated to a Participant with (ii) the Overall KPI Achievement Rate, provided, however, that at least an Overall KPI Achievement Rate of 50% must be reached (“Hurdle”), otherwise the number of Vested RSUs for the respective Annual Cycle will be 0. 
The following chart illustrates exemplarily a certain number of RSUs that vest at the end of an Annual Cycle pursuant to this § 4, depending on the degree of achievement of certain Overall KPI Achievement Rate:

						
	Overall KPI Achievement Rate
	Calculation of total number of Vested RSUs for one Annual Cycle

	0%
	Vested RSUs at the end of an Annual Cycle = 0, given that the hurdle of a minimum Overall KPI Achievement Rate of at least 50% has not been reached

	1%
	2%
	3%
	[etc.]
	48%
	49%
	< 50%
	50% (hurdle)	[1/3 of Initial Number of RSUs] x 50%
	60%	[1/3 of Initial Number of RSUs] x 60%
	70%	[1/3 of Initial Number of RSUs] x 70%
	[etc.]	[etc.]
	120%	[1/3 of Initial Number of RSUs] x 120%
	125%	[1/3 of Initial Number of RSUs] x 125%
	130%	[1/3 of Initial Number of RSUs] x 130%
	[etc.]	[etc.]
	175%	[1/3 of Initial Number of RSUs] x 175%

4.7After the expiry of the Waiting Period, the Vested RSUs for each Annual Cycle are added to calculate the total number of Vested RSUs.
Page 10/27

    

For example: If the Initial Number of RSUs granted to a Participant was 300 and during the first Annual Cycle an Overall KPI Achievement Rate of 80% was achieved, during the second Annual Cycle an Overall KPI Achievement Rate of 40% was achieved, and during the third Annual Cycle an Overall KPI Achievement Rate of 175% (Cap) was achieved, the number of Vested RSUs at the end of the first Annual Cycle is 80 (1/3 of the 300 granted RSUs x 80%), the number of Vested RSUs at the end of the second Annual Cycle is 0 (since the minimum Hurdle of 50% was not achieved) and the number of Vested RSUs at the end of the third Annual Cycle is 175 RSUs (1/3 of the 300 granted RSUs x 175%). Thus, after expiry of the Waiting Period, the total Vested RSUs that will be settled would be 255 (80 + 0 + 175).
§ 5
CONSEQUENCES OF A TERMINATION OF EMPLOYMENT
5.1With respect to an Annual Cycle, RSUs will vest only if the Participant still has an active employment relationship with MorphoSys US at the end of the relevant Annual Cycle, subject to the provisions set out in § 5.2 and § 5.3 below.
5.2If a Participant’s employment at MorphoSys US terminates for Cause (as defined hereinafter) before the expiry of the Waiting Period (such Participant a “Bad Leaver”), such that the Bad Leaver is no longer an Employee, all RSUs granted to the Bad Leaver (whether held by him or any third party and whether vested or unvested) will be forfeited without entitlement to compensation or other consideration. An event of “Cause” exists if a Participant: (i) materially violates any term of any agreement between the Participant and MorphoSys US; (ii) repeatedly fails to follow reasonable instructions of MorphoSys US, is chronically absent from work, fails to perform any reasonably assigned duties after receiving written notice of same from MorphoSys US, or willfully violates any written policy of MorphoSys US provided to the Participant; (iii) engages in unprofessional conduct that results in, or reasonably could result in, unfavorable publicity for MorphoSys US, or engages in unprofessional conduct inconsistent with the Participant’s position with MorphoSys US; or (iv) engages in any of the following forms of willful misconduct: (a) conviction of the commission of any felony, or any 
Page 11/27

    

criminal act involving moral turpitude, or any misdemeanor where imprisonment is imposed; (b) misappropriation, theft or destruction of MorphoSys US property; (c) securing or attempting to secure any personal profit in connection with any transaction entered into by or on behalf of MorphoSys US; (d) causing substantial material harm to MorphoSys US as a result of Participant’s malfeasance, gross negligence or reckless disregard of Participant’s duties and responsibilities; (e) falsification of any business record of MorphoSys US; (f) any material act of fraud or dishonesty within the scope of, or relating to, Participant’s employment by MorphoSys US; (g) commission of any crime relating to Participant’s employment with MorphoSys US; or (h) violation of any law or regulation applicable to the business of MorphoSys US.
5.3If a Participant’s employment at MorphoSys US terminates before the expiry of the Waiting Period for any reason other than for Cause or not qualifying the relevant Participant as a Bad Leaver (such Participant a “Good Leaver”), such Good Leaver will retain the RSUs that have already vested pursuant to § 3.3 and § 4 with respect to any Annual Cycle completed before the date of the Good Leaver’s termination of employment becomes effective (the “Termination Date”). Any additional RSUs that were granted to such Good Leaver and that have not vested will not continue to vest following the Termination Date and instead, they shall be forfeited by the Good Leaver on the Termination Date without any compensation or other consideration paid therefor. No partial vesting will take place with respect to any Annual Cycle that is in effect at the time a Termination Date occurs. Any retained RSUs that were vested as of the Good Leaver’s Termination Date shall be paid following the Waiting Period Expiration Date, consistent with § 6, below.
5.4For example: If a Participant, qualifying as a Good Leaver in the aforementioned sense under § 5.3 above, is notified of a termination of his employment with MorphoSys US in the example in § 4.7 in the first Annual Cycle, and such termination has a Termination Date that occurs during the second Annual Cycle of the Waiting Period, such Participant will retain the 80 Vested RSUs from the first Annual Cycle; however, the remaining 200 RSUs originally granted to such Participant (applicable to the second and third Annual Cycles) will be forfeited on the Termination 
Page 12/27

    

Date without compensation or other consideration paid to the Participant. No further vesting of the Participant’s award of RSUs will occur at the end of the second or third Annual Cycles or at any other time.

§ 6
CASH PAYMENT CLAIM RESULTING FROM RSUs AND SETTLEMENT OF RSUs; CASHLESS EXERCISE OPTION
6.1Upon expiration of the Waiting Period, each Vested RSU shall entitle the Participant to a cash payment claim (the “Cash Payment Claim”) against the Company in the amount of the closing price (Schlusskurs) of the Shares on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) in Xetra trading (or a comparable successor system) (i) in case of a Cash Settlement (as defined in § 6.2), on the Cash Settlement Date (as defined in § 6.2) or, (ii) in case of a Share Settlement (as defined in § 6.3), on the day of the resolution of the Company’s Management Board to utilize, with the consent of the Company’s Supervisory Board, the Authorized Capital 2021-III against contribution in kind (the “Capital Increase Resolution Date”). If a closing auction does not take place on the relevant trading day(s) or a price is not determined in the auction, the applicable price will be the last price quoted in continuous trading, provided there was continuous trading on that trading day.
6.2Within 90 days following the Waiting Period Expiration Date, the Company will settle the Vested RSUs as determined by the Company in its sole discretion by fulfilling the Cash Payment Claim (i) by way of an effective cash payment to a bank account designated to the Company by the respective Participant in advance (the “Cash Settlement”), or (ii) by transferring Shares to the Participant in accordance with § 6.3, or (iii) by a combination of both. In case of a Cash Settlement, the Company will convert the Cash Payment Claim, denominated in Euros, into a USD amount, based on the Euro foreign exchange reference rate, as published on the official website of the European Central Bank (ECB) on the actual date (within 90 days following the Waiting Period Expiration Date) on which such payment is made (the “Cash Settlement Date”). 
Page 13/27

    

6.3In the event of a settlement in the form of Shares, whereby Shares are created from a capital increase out of the Authorized Capital 2021-III (Kapitalerhöhung aus Genehmigtem Kapital 2021-III), the respective contribution in kind (Sacheinlage) for the new Shares shall be the Cash Payment Claim (denominated in EUR) resulting from the Vested RSUs. The Cash Payment Claim (denominated in EUR) will then – in the course of the capital increase – be contributed by the Participant to the Company against issuance of one (1) new Share for each one (1) Vested RSU (the “Share Settlement”). In the event of a Share Settlement, the Participant will be required to take all measures necessary to effect the Share Settlement, including, for example, the opening of an account to which the Shares may be booked, the conclusion of a contribution agreement with the Company and/or the subscription of the new Shares to be issued to the Participant by way of a subscription certificate. The actual date (within 90 days following the Waiting Period Expiration Date) on which the new Shares, which were created from the capital increase against contribution in kind, are transferred to the securities’ account of the respective Participant, the “Share Settlement Date”.
For example: If the Waiting Period Expiration Date for the 255 Vested RSUs in the example in § 4.7 occurs on September 30, 2024, the Company may decide, in its sole discretion, whether to settle the 255 Vested RSUs by way of a Cash Settlement or a Share Settlement (or a combination of both):
(a)In case of a Cash Settlement, the Company will identify the closing price (Schlusskurs) of the Shares on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) in Xetra trading (or a comparable successor system) on the Cash Settlement Date. Assuming, on the Cash Settlement Date, the closing price (Schlusskurs) amounted to EUR 125.00, the Participant’s Cash Payment Claim resulting from the 255 Vested RSUs would amount to EUR 31,875.00. Assuming the EUR/USD exchange rate on the Cash Settlement Date is 1 EUR = 1.1500 USD, the Cash Payment Claim the respective Participant is entitled to USD 36,656.25. 
(b)In case of a Share Settlement, the Company will request certain information from the Participant, which is necessary to perform the 
Page 14/27

    

Share Settlement. Once the information has been provided by the Participant to the Company, and following the expiry of the Waiting Period, the Company will identify the closing price (Schlusskurs) of the Shares on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) in Xetra trading (or a comparable successor system) on the Capital Increase Resolution Date. Assuming, on the Capital Increase Resolution Date, the closing price (Schlusskurs) amounted to EUR 125.00, the Participant’s Cash Payment Claim resulting from the 255 Vested RSUs would amount to EUR 31,875.00. Following such determination, the Company’s Management Board, with the consent of the Supervisory Board, shall resolve to issue 255 new Shares by way of a capital increase in the context of which the Company’s share capital will be increased by EUR 255.00 against contribution in kind of the Cash Payment Claim of the Participant in the aggregate amount of EUR 31,875.00. Following the registration of the consummation of the capital increase, the 255 new Shares will be transferred to a security deposit of the Participant on the Share Settlement Date. 
6.4In case of a Share Settlement, in order to facilitate the exercise of the RSUs by the Participants, the Company may in its sole discretion arrange for the Participant with a service provider (“Service Provider”) a cashless exercise option (“Cashless Exercise Option”). Such Cashless Exercise Option may provide that the Service Provider arranges a sale on behalf of the relevant Participant of such a number of Shares resulting from the Share Settlement of the Vested RSUs as is necessary to repay any taxes and/or employee social security contributions or other fees due by the Participant in connection with the settlement of the Vested RSUs. Any Participant who makes use of the Cashless Exercise Option has to bear all costs relating to the Cashless Exercise Option and the sale of the Shares resulting from the Vested RSUs.
6.5The Company will inform the Participant whether it will make use of the Cash Settlement (as defined in § 6.2) or the Share Settlement (as defined in § 6.3) or a combination of both in advance of the settlement.
Page 15/27

    

§ 7
TRANSFERABILlTY
7.1Neither the RSUs nor the rights of any Participant under any RSU or under the RSUP 2021 (US Inc.) are assignable or otherwise transferable except as provided in this § 7 and in case it is required to implement a Cashless Exercise Option under § 6.4.
7.2The RSUs are transferable only by will or applicable laws of descent upon the death of the relevant Participant. 
§ 8
CHANGE OF CONTROL
8.1For purposes of this § 8, “Change of Control” means the occurrence of any of the following events:
8.1.1if any person or entity becomes the “Beneficial Owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of securities of MorphoSys US representing 50% or more of the total voting power represented by MorphoSys US’s then outstanding voting securities (excluding for this purpose the Company’s or its affiliates or any employee benefit plan of the Company or its affiliates); 
8.1.2a merger or consolidation of MorphoSys US, whether or not approved by the Company's Board, other than a merger or consolidation which would result in the voting securities of MorphoSys US outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or the parent of such corporation) more than 50% of the total voting power represented by the voting securities of MorphoSys US or such surviving entity or parent of such corporation outstanding immediately after such merger or consolidation; or 
8.1.3the sale or disposition by MorphoSys US of all or substantially all of MorphoSys US’s assets in a transaction requiring stockholder approval.
Page 16/27

    

Notwithstanding anything to the contrary herein, the terms Change of Control shall have a meaning that is consistent with the definition of change in control event, change in ownership or change in effective control set forth in Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), but only to the extent that it is necessary to comply with Code Section 409A.
8.2In case a Change of Control occurs during the Waiting Period, § 3.3 shall be amended such that the RSUs shall vest immediately upon the Change of Control, with the calculation of the Overall KPI Achievement Rate to be determined as follows:
8.2.1With respect to Annual Cycles that are already complete at the date when the Change of Control occurs:
(i)if the Overall KPI Achievement Rate exceeds 100% with respect to Annual Cycles that have concluded prior to the Change of Control, then the actual percentage shall apply with respect to the Overall KPI Achievement Rate for such completed Annual Cycles;
(ii)if the Overall KPI Achievement Rate is below 100% with respect to Annual Cycles that have concluded prior to the Change of Control, then the Overall KPI Achievement Rate for such concluded Annual Cycles shall nevertheless be 100%, provided that the Hurdle for such Annual Cycle(s) has been met.
8.2.2With respect to the Annual Cycle during which the Change of Control occurs, as well as for subsequent Annual Cycles that have not yet commenced, as of the date the Change of Control occurs, the Overall KPI Achievement Rate shall be 100% for such Annual Cycle(s), irrespective of the achievement (if any) of the KPIs.
8.3Notwithstanding anything herein to the contrary, all RSUs that vest upon the Change of Control shall be settled only after the Waiting Period has expired and shall be settled in accordance with § 6.
Page 17/27

    

§ 9
ADJUSTMENT IN CASE OF SPECIFIC CAPITAL AND OTHER
STRUCTURAL MEASURES
9.1In the event of:
9.1.1a capital increase from Company funds by the issue of new shares (Kapitalerhöhung aus Gesellschaftsmitteln);
9.1.2a reduction in the number of Shares by merging Shares without capital reduction (reverse share split) or an increase in the number of Shares without capital increase (share split);
9.1.3a capital reduction (Kapitalherabsetzung) with a change in the total number of Shares issued by the Company; or
9.1.4any other such event having an effect similar to any of the foregoing (each an “Adjustment Event”),
the Company’s Management Board may – subject to mandatory law – establish financial equality for the Participants to the extent necessary to prevent that such Adjustment Event results in a dilution or enlargement of the benefits or potential benefits resulting from the granted RSUs. In such an Adjustment Event the financial equality shall preferably be established by adjusting the number of RSUs.
9.2For the avoidance of doubt: No adjustment pursuant to § 9.1 shall occur in the event of:
9.2.1a capital increase from Company funds without the issue of new Shares (Kapitalerhöhung aus Gesellschaftsmitteln ohne Ausgabe neuer Aktien); or
9.2.2a capital reduction without a change in the total number of Shares issued by the Company.
9.3If an adjustment occurs in accordance with this § 9, fractions of shares will not be granted upon the settlement of RSUs nor will they be compensated by a payment in cash.
Page 18/27

    

§ 10
EXTRAORDINARY DEVELOPMENTS
10.1For purposes of this § 10, “Extraordinary Events or Developments” means – subject always to mandatory law – situations where the potential gain realized by the Participant upon the settlement of RSUs (i) is caused by unusual external events and developments; and (ii) cannot be reasonably justified under any circumstances by the development or business perspective of the Company, also taking into account international remuneration and incentive standards. However, the settlement of RSUs by a Participant as such, that results in an economic benefit for the Participant, does not constitute an Extraordinary Event or Development.
10.2In case of Extraordinary Events or Developments, the Company’s Management Board is entitled to adjust in its discretion (pflichtgemäßes Ermessen) the payout in the form of a Cash Settlement or Share Settlement, to the extent required to eliminate such extraordinary effects.
§ 11
INSIDER TRADING AND BLACK-OUT PERIODS
11.1Any transaction in the Shares granted in case of a Share Settlement (each a “Transaction”) must be conducted in compliance with (i) all applicable insider trading laws and regulations, namely Art. 14, 7 et seqq. MAR, and (ii) all provisions of any insider trading rules established by the Company ((i) and (ii) together the “Insider Trading Rules”). Each Participant is personally responsible for informing himself about, and acting in full compliance with, all applicable Insider Trading Rules. Any individual non-compliance with applicable Insider Trading Rules may lead to the imposition of civil and criminal penalties (as the case may be).
11.2The Company may postpone or delay the settlement of any Vested RSUs by way of a Cash Settlement or Share Settlement or a combination of both to a later point in time due to restrictions under applicable laws and regulations or rejections from competent authorities.
Page 19/27

    

11.3In order to minimize the potential for prohibited insider trading, the Management Board of the Company may establish in its sole discretion periods from time to time during which all or some of the Participants may not engage in transactions involving Shares granted in case of a Share Settlement (the “Black-Out Periods”). As a matter of precaution, and notwithstanding any other provisions in these RSUP Terms & Conditions, the Participants may not subscribe any new Shares during an applicable Black-Out Period. 
§ 12
LIMITATION OF LIABILITY
12.1The Company (nor any of its management board members, supervisory board members or employees) does not:
12.1.1assume any responsibility or liability for the development of MorphoSys US’s contribution margin and/or revenue or for the development of the value or market price of the Company’s Shares;
12.1.2assume any responsibility or liability for the development of the value or market price of the Company’s Shares, including during the Waiting Period and during the period between the Waiting Period Expiration Date and, as the case may be, the Cash Settlement Date, the Capital Increase Resolution Date, or the Share Settlement Date;
12.1.3warrant, assure or guarantee a profit of a Participant from the RSUP 2021 (US Inc.) or any RSU granted thereunder; or
12.1.4warrant, assure or guarantee any increase in value of the RSUs or, following a Share Settlement, the value or market price of the Company’s Shares; in particular it is neither warranted, assured or guaranteed that a Participant will be able to sell his participation in the Company with a profit in the future, nor that no loss will be incurred.
12.2Each Participant declares with his/her participation in the RSUP 2021 (US Inc.) that the participation is voluntary. Each Participant is aware of the fact that he/she alone bears the risk of a decrease in or total loss of 
Page 20/27

    

value of the RSUs or, following a Share Settlement, the Company’s Shares. Each Participant accepts the offer to participate in the RSUP 2021 (US Inc.) at his/her own risk and assumes any liability relating thereto. 
12.3Each Participant accepts, that his/her claim stemming from Vested RSUs may be delayed or even forfeited, if he/she does not provide the information requested and required by the Company to perform the Cash Settlement and/or the Share Settlement, in particular, the information in § 6.3.
12.4Each Participant is responsible for obtaining legal, tax and any other necessary advice before participating in the RSUP 2021 (US Inc.) and for evaluating the tax effects connected with the RSUP 2021 (US Inc.). Each Participant accepts and declares that he has not been advised by or on behalf of the Company with respect to his participation in the RSUP 2021 (US Inc.) (in particular, regarding legal and tax issues of such participation).
§ 13
TAXES, SOCIAL SECURITY AND COSTS
13.1All taxes (including payroll taxes), social security contributions, further duties and costs accrued by the Participant in connection with his/her participation in the RSUP 2021 (US Inc.) shall be borne by each Participant. Each Participant is obliged to pay taxes relating to the respective RSUs granted/settled under the RSUP 2021 (US Inc.), or relating to a transfer (if permitted under these RSUP Terms & Conditions) of such RSUs by the Participant to a third party, to the competent tax authorities. Each Participant shall fully indemnify the Company in respect of all such liabilities and obligations against tax authorities.
13.2MorphoSys US is entitled, if required by statutory law, to withhold payroll tax or any other taxes or duties or social security contributions to be paid by (or on behalf and account of) the Participant. This applies even after termination of the service relationship or employment relationship of a Participant with the Company. The Company is entitled to demand the full cooperation of the Participant even after his leave 
Page 21/27

    

with respect to the withholding of taxes, social security contributions, other duties and costs in connection with the RSUP 2021 (US Inc.). The Participant undertakes to fully cooperate with the Company.
13.3Withholdings mentioned above do not release the Participant from his responsibility and obligation to pay all taxes, social contributions, further duties and costs being due and accruing in connection with his participation in the RSUP 2021 (US Inc.) or the allocation/grant, settlement or transfer of any RSUs.
13.4The compensation and benefits under these RSUP Terms & Conditions are intended to comply with or be exempt from the requirements of Section 409A of the Code, and these RSUP Terms & Conditions will be interpreted and administered in a manner consistent with that intent. The preceding provision, however, shall not be construed as a guarantee by the Company of any particular tax effect to any Participant under these RSUP Terms & Conditions and shall not constitute an indemnity from the Company to any Participant. References to “termination of employment” and similar terms used in these RSUP Terms & Conditions mean, to the extent necessary to comply with Section 409A of the Code, the date that the Participant first incurs a “separation from service” within the meaning of Section 409A of the Code. Each payment under these RSUP Terms & Conditions shall be designated as a “separate payment” within the meaning of Section 409A of the Code.

§ 14
FORM REQUIREMENTS
14.1Any legal statements and other notices in connection with the RSUP 2021 (US Inc.) (collectively the “Notices”) or any amendment of these RSUP Terms & Conditions (including an amendment of this § 14.1) shall be made in text form or electronic form (e.g. email) unless any other specific form is required by mandatory law or these RSUP Terms & Conditions.
Page 22/27

    

Any Notice to be delivered to the Company shall be addressed by email to the Head of Human Resources of MorphoSys AG. The Company shall communicate changes in the addressee set forth in the previous sentence as soon as possible to the Participants. 
14.2Any Notice to be given to a Participant may be served by being sent to him/her by email or to his/her home or business address. Each Participant shall communicate changes of address as soon as possible to the Company. 
§ 15
PROCESSING OF PERSONAL DATA
The Company processes personal data of the Participants in connection with the administration, implementation and settlement of the RSUP 2021 (US Inc.). Additional information regarding the processing of personal data in connection with the RSUP 2021 (US Inc.) is included in Exhibit 1 (Information on the Processing of Personal Data).
§ 16
GOVERNING LAW AND JURISDICTION
16.1The RSUP 2021 (US Inc.), any RSUs granted thereunder and these RSUP Terms & Conditions shall be exclusively governed by, and be construed in accordance with, the laws of the Federal Republic of Germany, without regard to principles of conflicts of laws.
16.2Any dispute, controversy or claim arising from or in connection with the RSUP 2021 (US Inc.), any RSUs granted thereunder or these RSUP Terms & Conditions or their validity shall be decided upon by the competent courts in Munich, Germany.
§ 17
FINAL PROVISIONS
17.1In these RSUP Terms & Conditions, the headings are inserted for convenience only and shall not affect the interpretation of these RSUP Terms & Conditions; where a German term has been inserted in italics, it alone (and not the English term to which it relates) shall be 
Page 23/27

    

authoritative for the purpose of the interpretation of the relevant English term in these RSUP Terms & Conditions. The terms “including” and “in particular” shall always mean “including, without limitation” and “in particular, without limitation”, respectively. Any reference made in these RSUP Terms & Conditions to any clauses without further indication of a law, an agreement or another document shall mean clauses of these RSUP Terms & Conditions. 
17.2In the event that one or more provisions of these RSUP Terms & Conditions shall, or shall be deemed to, be invalid or unenforceable, the validity and enforceability of the other provisions of these RSUP Terms & Conditions shall not be affected thereby. In such case, the Company and each Participant agree to recognize and give effect to such valid and enforceable provision or provisions, which correspond as closely as possible with the commercial intent of the Parties. The same shall apply in the event that these RSUP Terms & Conditions contain any unintended gaps (unbeabsichtigte Lücken).
Planegg, October 2021
MorphoSys AG
* * * * 
Page 24/27

Exhibit 1

Exhibit 1

Information on the Processing of Personal Data
in connection with the Restricted Stock Unit Program 2021 
(hereinafter referred to as “RSUP 2021 (US Inc.)”)
of MorphoSys AG 
(hereinafter referred to as the “Company”)

In connection with the administration, processing and execution of the RSUP 2021 (US Inc.), the Company processes personal data of the beneficiaries (hereinafter also referred to as “Data Subjects”) in accordance with the EU General Data Protection Regulation (“GDPR”). Pursuant to the GDPR, the Company is obliged to provide the following information on the processing of personal data. All defined terms used in this information have the meaning assigned to them in the option conditions.
I.    Responsibilities and Contact Information
The controller of the personal data pursuant to Art. 4 para. 7 is the Company:

MorphoSys AG
Semmelweisstraße 7
82152 Planegg
Germany
Telephone:     +49 (0)89 899 27-0
Facsimile:     +49 (0)89 899 27-222
E-Mail: info@morphosys.com
Website: www.morphosys.com
The Data Protection Officer of the Company can be contacted through:
MorphoSys AG
Data Protection Officer
Semmelweisstraße 7
82152 Planegg
Germany
or
Email: datenschutz@morphosys.com

												
				

Page 25/27

II.    Use of Personal Data by the Company
The Company processes personal data of the Data Subjects such as names, contact data, tax numbers and all other information necessary for the participation of a Data Subject in the RSUP 2021 (US Inc.) as well as for the administration, processing and execution of the RSUP 2021 (US Inc.) (processing purpose). The legal basis for data processing is Art. 6 Para. 1 (b) GDPR.
In addition, the Company processes personal data of the Data Subjects if and to the extent required by the law applicable to the Company (e.g., tax law). The legal basis for data processing in this respect is Art. 6 para. 1 (c) GDPR.
III.    Transfer of Personal Data
The Company may disclose personal data to an external service provider (“External Service Provider”) commissioned or involved for the purposes of the administration, processing and/or execution of the RSUP 2021 (US Inc.) in order to support the processing of personal data for the processing purpose set out in Section II above. If and to the extent permitted by law, the Company may also commission other third parties to provide certain services, such as IT-services and legal services, for the processing purpose set out in Section II above and may disclose personal data to such third parties. These recipients provide their assistance or services to the Company under its control and direction and may have access to personal data to the extent necessary to provide their assistance or services.
In addition, the Company may, to the extent required and permitted by law, transfer personal data to domestic and foreign authorities or courts in order to fulfil legal obligations.
IV.    Storage and Deletion of Personal Data
The Company processes the personal data within the framework of the participation of the Data Subjects in the RSUP 2021 (US Inc.). The Company deletes the personal data if it no longer needs it for the fulfilment of its contractual obligations under the RSUP 2021 (US Inc.) and if there are no legal storage obligations. In the event of a legal obligation to retain personal data, the Company shall restrict the processing of such personal data.
V.    Rights of the Data Subjects
The Data Subjects may, at any time and free of charge, contact the Company or its Data Protection Officer directly with an informal notification in order to exercise 
Page 26/27

their rights under the GDPR. The Data Subjects have the right, subject to the legal requirements, the fulfilment of which is to be examined on a case-by-case basis, to request information on their personal data, any rectification or deletion of their personal data, information regarding restrictions on the processing of their personal data and they have the right to receive their personal data in a structured, generally used and machine-readable format.
The Data Subjects also have the right to object to the processing of their personal data, subject to the legal requirements, the fulfilment of which must be examined on a case-by-case basis.
In addition, Data Subjects have the right to lodge a complaint with a supervisory authority.

Page 27/27Document

MORPHOSYS AG

STOCK OPTION PLAN 2021

– TERMS AND CONDITIONS –

Page 1/#NUM_PAGES#

TABLE OF CONTENT

						
	TABLE OF CONTENT
	2

	DEFINITIONS
	3

	RECITALS
	5

	§ 1    ELIGIBILITY
	6

	§ 2    PLAN VOLUME AND GRANT OF STOCK OPTIONS
	7

	§ 3    EXERCISE PRICE
	8

	§ 4    EXERCISE CONDITIONS
	8

	§ 5    PERFORMANCE TARGETS
	9

	§ 6    WAITING PERIOD AND EXERCISE PERIOD
	14

	§ 7    EXERCISE NOTICE
	14

	§ 8    EXTRAORDINARY DEVELOPMENTS; FURTHER ADJUSTMENTS; CLAW-BACK
	16

	§ 9    EXPIRY DATE OF STOCK OPTIONS
	18

	§ 10    CONSEQUENCES OF A TERMINATION OF OFFICE OR EMPLOYMENT
	19

	§ 11    TRANSFERABILlTY
	21

	§ 12    ADJUSTMENT IN CASE OF SPECIFIC CAPITAL AND OTHER STRUCTURAL MEASURES
	21

	§ 13    CHANGE OF CONTROL
	22

	§ 14    LIMITATION OF LIABILITY
	24

	§ 15    TAXES, SOCIAL SECURITY AND COSTS
	25

	§ 16    INSIDER TRADING AND BLACK-OUT PERIODS
	26

	§ 17    FORM REQUIREMENTS
	27

	§ 18    PROCESSING OF PERSONAL DATA
	27

	§ 19    GOVERNING LAW AND JURISDICTION
	28

	§ 20    FINAL PROVISIONS
	28

Page 2/43

DEFINITIONS 
															
	Absolute Performance Target	9		Good Leaver	19
	Adjustment Event	22		Grant	7
	AktG	8		Grant Date	7
	Allocation Value	6		Granting Period	7
	Average Yearly Period Performance Target Achievement	23		Group 1-Participant	6
	Bad Leaver	19		Group 2-Participant	6
	Bank	15		Group 3-Participant	6
	Benchmark Index	11		Group of Participants	6
	Benchmark Indices	11		Initial Number of Stock Options	6
	BGB	19		Insider Trading Rules	26
	Black-Out Periods	26		MAR	19
	BörsG	8		Maximum Limit	13
	Breach of Duty	16		Maximum Value Absolute Performance Target	10
	Cash Settlement	8		Maximum Value Performance Target	10
	Cashless Exercise Option	15		Maximum Value Relative Performance Target	10
	Change of Control	22		Minimum Value Absolute Performance Target	10
	Code	40		Minimum Value Relative Performance Target	10
	Company	5		MorphoSys	5
	Complete Yearly Period	23		NASDAQ Biotech Index	9
	Complete Yearly Periods	23		NASDAQ Trading Days	11
	Conditional Capital 2020-I	5		Notices	27
	Data Subjects	37		Option Agreement	27
	Exercise Conditions	8		Option Terms & Conditions	5
	Exercise Notice	15		Overall Absolute Performance Target Achievement	13
	Exercise Period	14		Overall Performance Target Achievement	13
	Exercise Price	8		Overall Relative Performance Target Achievement	13
	Exercise Shares	7		Participant	6
	Expiry Date	18		Performance Target	9
	External Service Provider	38		Performance Targets	9
	Extraordinary Events or Developments	16		Pre-Financing	15
	Fair Market Value	40		Relative Performance Target	9
	Final Number of Stock Options	13		Relevant Closing Price	8
	GDPR	37		Set Target Absolute Performance Target	9

Page 3/43

															
	Set Target Performance Target	9		TecDAX Index	9
	Set Target Performance Targets	10		Termination Date	19
	Set Target Relative Performance Target	10		Trading Day	8
	Share	5		U.S. Taxpayer	40
	Share Settlement	7		Waiting Period	14
	Shares	5		Yearly Period	10
	SOP 2021	5		Yearly Period Absolute Performance Target Achievement	11
	SOP Resolution	5		Yearly Period Relative Performance Target Achievement	12
	Stock Option	5		Yearly Period Relative Performance Target Benchmark	11
	Stock Options	5			

Page 4/43

RECITALS
The participation of the management and employees in the economic risks and opportunities of the relevant business operation is an important component of an internationally competitive remuneration system. 
For this purpose, MorphoSys AG (“MorphoSys” or the “Company”) intends to implement a stock option plan (the “SOP 2021”) under which stock options shall be granted to members of the Management Board (Vorstand) of MorphoSys (the “Management Board”), members of management bodies of affiliated companies in Germany and abroad and to selected employees of MorphoSys and affiliated companies in Germany and abroad, entitling each of them to acquire a specified number of no-par-value bearer shares (auf den Inhaber lautende Stückaktien) of the Company, each representing a pro rata amount of EUR 1.00 of the Company’s nominal share capital (each a “Share”, and together the “Shares”). 
With resolution dated May 27, 2020 (the “SOP Resolution”), the Company’s general meeting (Hauptversammlung) has authorized (i) the Supervisory Board (Aufsichtsrat) to grant stock options that entitle to the subscription of up to 657,307 Shares to members of the Management Board; and (ii) the Management Board to grant, with the consent of the Supervisory Board, stock options that entitle to the subscription of up to 657,308 Shares to members of management bodies of affiliated companies in Germany and abroad and to selected employees of MorphoSys and affiliated companies in Germany and abroad (each a “Stock Option”, and together the “Stock Options”). The same general meeting also created a conditional capital (bedingtes Kapital) of up to EUR 1,314,615.00 (the “Conditional Capital 2020-I”) in order to fund the Stock Options. The general meeting has authorized the Supervisory Board, when members of the Management Board are concerned, and the Management Board, when members of management bodies of affiliated companies in Germany and abroad as well as selected employees of MorphoSys and affiliated companies in Germany and abroad are concerned, to determine the further details of the SOP 2021, in particular concerning the grant of Stock Options and the relevant terms and conditions in accordance with the parameters set forth in the SOP Resolution. 
The present terms and conditions (the “Option Terms & Conditions”) establish the rules pursuant to which the Stock Options under the SOP 2021 can be granted and exercised.
Page 5/43

§ 1
ELIGIBILITY
1.1Stock Options will be granted to the following participants (each a “Participant”), who are divided into three (3) groups of Participants (each a “Group of Participants”):
1.1.1Members of the Management Board of MorphoSys (“Group 1-Participants”); 
1.1.2Members of management bodies of affiliated companies in Germany and abroad (“Group 2-Participants”);
1.1.3Selected employees of MorphoSys and of affiliated companies in Germany and abroad (“Group 3-Participants”).
1.2If a Participant belongs to more than one Group of Participants, the Participant will receive Stock Options based solely on his membership in one Group of Participants. Membership in a Group of Participants is determined by the Company’s Management Board, unless members of the Company’s Management Board are concerned, in which case the Company’s Supervisory Board determines the membership in a Group of Participants. The Participants of each Group of Participants and the number of Stock Options to be granted may vary over the term of the SOP 2021 and are determined by the Company’s Management Board, unless members of the Company’s Management Board are concerned, in which case they are determined by the Company’s Supervisory Board.
1.3For each Group 1-Participant, the Supervisory Board, for each Group 2-Participant and Group 3-Participant, the Management Board, will determine a target value in Euro (EUR) as allocation value (the “Allocation Value”; Zuteilungswert). The initial number of Stock Options for each Participant for each tranche is equivalent to the Allocation Value divided by the fair value of a stock option at the Grant Date (§ 2) as determined on the basis of an option-pricing-model, rounded up to the nearest whole number (the “Initial Number of Stock Options”).

Page 6/43

§ 2
PLAN VOLUME AND GRANT OF STOCK OPTIONS
2.1The Group 1-Participants together receive no more than 50 % of the Stock Options to be issued in total. The Group 2-Participants together receive no more than 5 % of the Stock Options to be issued in total. The Group 3-Participants together receive no more than 45 % of the Stock Options to be issued in total.
2.2The number of Stock Options from one tranche allocated to each Group of Participants is determined by the Initial Number of Stock Options for each individual Participant of the respective Group of Participants.
2.3The Stock Options will be granted (the “Grant”) in accordance with legal requirements in each case within three (3) months after the end of the first or third quarter in the respective year (the “Granting Period”), subject to a continuing and non-terminated (ungekündigt) service relationship or employment of the relevant Participant at the relevant Grant Date (§ 2.4).
2.4The date on which the Grant becomes effective (the “Grant Date”) shall be the date on which the Participant receives the offer granting Stock Options, irrespective of the point in time the offer is accepted. The offer can specify another date as Grant Date. 
2.5Subject to (i) a forfeiture or a reduction of the number of Stock Options pursuant to § 10 below; and (ii) the satisfaction of the terms and conditions set forth in these Option Terms & Conditions, each Stock Option entitles the Participant up to two (2) subscription rights to each acquire one (1) Share in the Company against payment of the Exercise Price (§ 3). 
2.6In fulfilment of the Stock Options the Company may, at its sole discretion:
2.6.1deliver the number of Shares with respect to which the Stock Options are being exercised (the “Exercise Shares”) out of the Conditional Capital 2020-I or from treasury shares or from a combination of both (the “Share Settlement”); and/or

Page 7/43

2.6.2instead of the delivery of all or some of the Exercise Shares make a cash payment in the amount of (i) the product of the Xetra closing price (Schlusskurs) of the Shares on the regulated market of the Frankfurt Stock Exchange on the day of receipt of the Exercise Notice (§ 7) or, in case of a previous delisting of the Company, the price which had to be offered as part of the compulsory public tender offer pursuant to Sec. 39 para. 2 sentence 3 no. 1, paras. 3 et seqq. of the German Stock Exchange Act (Börsengesetz - the ”BörsG”) (the “Relevant Closing Price”), multiplied by the aggregate number of Exercise Shares to be settled in cash, minus (ii) the Exercise Price (§ 3), multiplied by the aggregate number of Exercise Shares to be settled in cash or, in case the Participant has already paid to the Company the Exercise Price for all Exercise Shares to be settled in cash, EUR 0.00 (the “Cash Settlement”).

§ 3
EXERCISE PRICE
The price at which one (1) Share may be acquired upon exercise of one (1) subscription right equals the 30 (thirty) Trading Days average closing price of the Shares in Xetra trading (or a comparable successor system) on the Frankfurt Stock Exchange before the Grant Date (the “Exercise Price”). If a closing auction does not take place on the relevant Trading Days or a price is not determined in the auction, the applicable price will be the last price quoted in continuous trading, provided there was continuous trading on that Trading Day. “Trading Day” means a day other than a Saturday or Sunday or public holiday on which the Frankfurt Stock Exchange is open for trading. The minimum Exercise Price is equivalent to the minimum issue price as set forth in Sec. 9 para. 1 of the German Stock Corporation Act (Aktiengesetz - the “AktG”), i.e. currently EUR 1.00. 

§ 4
EXERCISE CONDITIONS
Any exercise of the Stock Options requires satisfaction of all of the following conditions (the “Exercise Conditions”):
4.1a Minimum Value Performance Target (§ 5) has been exceeded;
Page 8/43

4.2the Maximum Limit (5.8) has not been exceeded;
4.3the respective Stock Options have vested (§§ 10.2, 10.3 and 13.3);
4.4the applicable Waiting Period (§ 6.1) has expired;
4.5an Exercise Period (§ 6.2) has started and not yet ended;
4.6the exercise has not been temporarily suspended according to § 16.2; and
4.7the Expiry Date (§ 9.1) for the Stock Options to be exercised has not passed.

§ 5
PERFORMANCE TARGETS
5.1Stock Options may only be exercised if and to the extent the Performance Targets (as defined below) have been reached in accordance with the following provisions.
5.2The Performance Targets are linked to: 
5.2.1the absolute market price performance of the Shares during the Waiting Period (§ 6.1) (the “Absolute Performance Target”); and
5.2.2the relative market price performance of the Shares in relation to the performance of the NASDAQ Biotechnology Index of the NASDAQ Stock Exchange (“NASDAQ Biotech Index”) as well as the TecDAX Index of the Frankfurt Stock Exchange (“TecDAX Index”) (the “Relative Performance Target”; the Absolute Performance Target and the Relative Performance Target each a “Performance Target” and together the “Performance Targets”).
5.3Each Performance Target is weighted with 50 % with respect to the Overall Performance Target Achievement (as defined below). Each Performance Target has a set target (Zielvorgabe) as well as a minimum target value (Minimalwert) and a maximum target value (Maximalwert). The set target determines the value at which the respective Performance Target is achieved by 100 % (the “Set Target Performance Target”, respectively the “Set Target Absolute Performance Target” or the “Set Target Relative Performance Target”, 
Page 9/43

together the “Set Target Performance Targets”). The minimum value defines the lower end of the target range (the “Minimum Value Performance Target, respectively the “Minimum Value Absolute Performance Target” or the “Minimum Value Relative Performance Target”). When achieving or falling below this level, the achievement level of the respective Performance Target is 0 %. The maximum value defines the value that, when reached or exceeded, amounts to an achievement level of the respective Performance Target of 200 % (the “Maximum Value Performance Target”, respectively the “Maximum Value Absolute Performance Target” or the “Maximum Value Relative Performance Target”).
5.4To determine the level of achievement of each Performance Target, the Waiting Period (§ 6.1) is divided into four (4) identical periods of one (1) year each (“Yearly Period”).
5.5To determine the level of achievement of the Absolute Performance Target, the following provisions apply:
5.5.1With respect to each Yearly Period, the market price of the Shares at the beginning of the respective Yearly Period is compared to the market price at the end of the respective Yearly Period (for the first Yearly Period, this is the period between the date after the Grant Date and until the date of the following year, that corresponds to the Grant Date, and correspondingly for the following three Yearly Periods). The relevant market price of the Shares is the average closing auction price in Xetra trading (or a comparable successor system) on the Frankfurt Stock Exchange thirty (30) Trading Days prior to the start of the respective Yearly Period, and prior to the end of the respective Yearly Period, including the last day of the Yearly Period. If a closing auction does not take place on the relevant Trading Days or a price is not determined in the auction, the applicable price will be the last price quoted in continuous trading, provided there was continuous trading on that Trading Day.
5.5.2If in the respective Yearly Period the market price of the Shares declines, the achievement level of the Absolute Performance Target is 0 % (Minimum Value Absolute Performance Target). If the market price performance of the Shares is 0 %, the Absolute Performance Target is achieved by 50 %. Subsequent increases in the achievement level of the 
Page 10/43

Absolute Performance Target are linear. An 8 % increase of the market price of the Shares therefore results in an achievement level of the Absolute Performance Target of 100 % (Set Target Absolute Performance Target), a 16 % increase of the market price therefore results in an achievement level of the Absolute Performance Target of 150 %, and a 24 % increase of the market price therefore results in an achievement level of the Absolute Performance Target of 200 % (Maximum Value Absolute Performance Target). Any further increase of the market price of the Shares does not result in a further increase of the achievement level of the Absolute Performance Target.
The level of achievement for each Yearly Period for the Absolute Performance Target is the “Yearly Period Absolute Performance Target Achievement”.
5.6To determine the level of achievement of the Relative Performance Target, the following provisions apply:
5.6.1With respect to each Yearly Period, the performance of the market price of the Shares is compared to the performance of the NASDAQ Biotech Index and the TecDAX Index (collectively the “Benchmark Indices”, and each a “Benchmark Index”), and the respective values are put into proportion (for the first Yearly Period, this is the respective performance during the period between the date after the Grant Date and until the date of the following year that corresponds to the Grant Date, and correspondingly for the following three Yearly Periods). Within the Benchmark Indices, the NASDAQ Biotech Index and the TecDAX Index are each weighted with 50 % in a way that the percentage performance per Benchmark Index and per Yearly Period is added and divided by two (2) (the “Yearly Period Relative Performance Target Benchmark”). The relevant market price of the Shares is the average closing auction price in Xetra trading (or a comparable successor system) on the Frankfurt Stock Exchange thirty (30) Trading Days prior to the start of the respective Yearly Period, and prior to the end of the respective Yearly Period, including the last day of the Yearly Period. The relevant price of the NASDAQ Biotech Index is the average closing price of the NASDAQ Biotech Index thirty (30) trading days pursuant to the applicable official trading day calendar (the “NASDAQ Trading Days”) prior to the start of the respective Yearly Period, and prior to the end of the respective Yearly 
Page 11/43

Period, including the last day of the Yearly Period. The relevant price of the TecDAX Index is the average closing price of the TecDAX on the Frankfurt Stock Exchange thirty (30) Trading Days prior to the start of the respective Yearly Period, and prior to the end of the respective Yearly Period, including the last day of the Yearly Period. If a closing auction does not take place on the relevant Trading Days, respectively on the relevant NASDAQ Trading Days, or a price is not determined in the auction, the applicable price will be the last price quoted in continuous trading, provided there was continuous trading on that Trading Day, respectively on that NASDAQ Trading Day.
5.6.2If in the respective Yearly Period the market price of the Shares declines compared to the Yearly Period Relative Performance Target Benchmark, the achievement level of the Relative Performance Target is 0 % (Minimum Value Relative Performance Target). If the market price performance of the Shares is 0 % compared to the Yearly Period Relative Performance Target Benchmark, the Relative Performance Target is achieved by 100 % (Set Target Relative Performance Target). Subsequent increases in the achievement level of the Relative Performance Target are linear. An 8 % increase of the market price of the Shares compared to the Yearly Period Relative Performance Target Benchmark therefore results in an achievement level of the Relative Performance Target of 150 %, and a 16 % increase of the market price of the Shares compared to the Yearly Period Relative Performance Target Benchmark therefore results in an achievement level of the Relative Performance Target of 200 % (Maximum Value Relative Performance Target). Any further increase of the market price of the Shares compared to the Yearly Period Relative Performance Target Benchmark does not result in a further increase of the achievement level of the Relative Performance Target.
The level of achievement for each Yearly Period for the Relative Performance Target is the “Yearly Period Relative Performance Target Achievement”.
5.7The overall target achievement for each Performance Target shall be calculated as the arithmetic mean of (i) the Yearly Period Absolute Performance Target Achievements, as well as of (ii) the Yearly Period Relative Performance Target Achievements, which determines the final percentage target achievement for 
Page 12/43

each Performance Target (respectively, the “Overall Absolute Performance Target Achievement” and the “Overall Relative Performance Target Achievement). At the end of the Waiting Period, the percentage Overall Absolute Performance Target Achievement and the percentage Overall Relative Performance Target Achievement are added up and divided by two, resulting in the overall achievement of the Performance Targets (“Overall Performance Target Achievement”).
5.8The Initial Number of Stock Options is multiplied by the decimal number, rounded to two decimal places, that represents the percentage Overall Performance Target Achievement (e.g. 143 % equals 1.43), and rounded up to the nearest whole number, resulting in the final number of Shares the respective Participant is entitled to subscribe for (the “Final Number of Stock Options”). Stock Options can only be exercised if either the Minimum Value Absolute Performance Target or the Minimum Value Relative Performance Target has been exceeded at least in one (1) Yearly Period. The Final Number of Stock Options is limited to 200 % of the Initial Number of Stock Options (Cap). Group 1-Participants may exercise Stock Options granted to them further only to the extent that the amount of (i) the Relevant Closing Price minus the Exercise Price, (ii) multiplied by the Final Number of Stock Options, does not exceed an amount of 250 % of the respective Allocation Value (the “Maximum Limit”). If the Maximum Limit would be exceeded when exercising Stock Options, Stock Options will forfeit without entitlement for compensation in accordance with the following calculation: 
The number of Stock Options which will forfeit equals the amount (rounded down to the nearest whole number) of (i) the Final Number of Stock Options minus (ii) the Maximum Limit divided by the difference between the Relevant Closing Price and the Exercise Price. 
The above shall apply accordingly in case of a Cash Settlement instead of a Share Settlement. 
5.9One (1) Stock Option, as determined by the Final Number of Stock Options, entitles to the subscription right for one (1) Share.

Page 13/43

5.10Stock Options for which neither the Minimum Value Absolute Performance Target nor the Minimum Value Relative Performance Target has been exceeded with respect to any Yearly Period shall forfeit completely without any further consideration.
5.11Annex 1 to these Option Terms & Conditions comprises a calculation example of the determination of the Final Number of Stock Options. For the avoidance of doubt: The determination of the Final Number of Stock Options, including all intermediate steps in the determination process, is subject to these Option Terms & Conditions exclusively. Annex 1 does not form a part of these Option Terms & Conditions and is for convenience only. All figures in the calculation example in Annex 1 are fictitious and selected without prejudice to any rights under these Option Terms & Conditions. In case of any inconsistencies between these Option Terms & Conditions and Annex 1 these Terms & Conditions shall prevail.

§ 6
WAITING PERIOD AND EXERCISE PERIOD
6.1The waiting period until the date on which the Stock Options may initially be exercised is four (4) years commencing on the Grant Date (the “Waiting Period”).
6.2Subject to § 5, all Stock Options may be exercised only within a time period of three (3) years following the date on which both the Company’s consolidated financial statements for the financial year that precedes the financial year during which the Waiting Period has elapsed have been approved (Billigung des Konzernabschlusses der MorphoSys AG) and the Waiting Period has expired (the “Exercise Period”). 

§ 7
EXERCISE NOTICE
7.1Subject to the fulfilment of the Exercise Conditions, each Participant may exercise all or part of his Stock Options in writing or by email by way of an exercise notice which includes the necessary subscription declarations regarding 
Page 14/43

the Exercise Shares (the “Exercise Notice”). The Exercise Notice has to be addressed to MorphoSys AG, Head of Human Resources, Semmelweisstraße 7, 82152 Planegg, Germany. The Exercise Notice has to state the number of Stock Options that are exercised and the number of Shares to be subscribed for, or acquired by (as the case may be), the exercise. With receipt of the Exercise Notice the subscription or purchase agreement takes effect for the number of Shares for which Stock Options are exercised. A form of the Exercise Notice is attached as Annex 2 to these Option Terms & Conditions. 
7.2The Exercise Notice shall be backed by sufficient funds for the Exercise Price and further expenses payable in respect of the number of exercised Stock Options and by sufficient funds for the estimated payroll taxes and employee social security contributions (if any) or any similar taxes and duties. The Company reserves the right not to transfer the Shares to the Participant until full payment of the Exercise Price, including taxes and social security contributions, if and to the extent applicable.
7.3In order to facilitate the exercise of the Stock Options by the Participants and to further align the interests of the Participants and the shareholders, the Company may – in its sole discretion and subject always to applicable law – arrange for the benefit of the Participants with a financial institution (the “Bank”) a pre-financing of the payment of some or all of the aggregate Exercise Price (together with any taxes and social security contributions) (the “Pre-Financing”) and a sale on behalf of the relevant Participant of such a number of Exercise Shares on a stock exchange necessary to repay the Pre-Financing (the “Cashless Exercise Option”). Participants who wish to use the Cashless Exercise Option may be required inter alia: (i) to open a deposit account (Depot) with the Bank; (ii) to have all Exercise Shares for which the Cashless Exercise Option is used booked into such deposit account; and (iii) irrevocably instruct and authorize the Bank to sell the number of Exercise Shares necessary to repay the Pre-Financing. The Company bears all costs relating to the implementation of the Cashless Exercise Option (such as arrangement or administration fees). Any Participant who makes use of the Cashless Exercise Option has to bear all costs relating to the Pre-Financing and the sale of the Exercise Shares (in particular any interest and brokerage fees).

Page 15/43

§ 8
EXTRAORDINARY DEVELOPMENTS; FURTHER ADJUSTMENTS; CLAW-BACK
8.1For purposes of this § 8, “Extraordinary Events or Developments” means – subject always to mandatory law – situations where the potential gain realized by the Participant upon the exercise of Stock Options (i) is caused by unusual external events and developments; and (ii) cannot be reasonably justified under any circumstances by the development or business perspective of the Company, also taking into account international remuneration and incentive standards. For the avoidance of doubt, the exercise of Stock Options by a Participant as such, that results in an economic benefit for the Participant, does not constitute an Extraordinary Event or Development.
8.2In case of Extraordinary Events or Developments, the Supervisory Board (with regard to Group 1-Participants) or the Management Board (with regard to Group 2-Participants and/or Group 3-Participants) is entitled to adjust upon receipt by the Company of an Exercise Notice in its discretion (pflichtgemäßes Ermessen) the payout, to the extent required to eliminate such extraordinary effects. For the avoidance of doubt, such adjustment shall not result in a reduction or withdrawal of the Participant's economic benefit achieved under the SOP 2021 prior to the occurrence of such Extraordinary Events or Developments. In any such case, Sec. 87 para. 1 AktG must be observed (in case of Group 2-Participants and/or Group 3-Participants mutatis mutandis).
8.3The Supervisory Board is further entitled to adjust in its discretion (pflichtgemäßes Ermessen) the payout to Group-1-Participants if so required to ensure the appropriateness of remuneration as defined in Section 87 para. (1) sentence 1 AktG.
8.4In the event that a Group 1-Participant willfully or grossly negligent breaches statutory duties or the code of conduct of the Company (each a “Breach of Duty”), the Supervisory Board is entitled to retain or reclaim in its discretion (pflichtgemäßes Ermessen) the payout in the form of a Cash Settlement or Share Settlement in whole or in part in accordance with the following provisions: 

Page 16/43

8.4.1In the event a Breach of Duty occurs, the Supervisory Board may decide in its discretion (pflichtgemäßes Ermessen) that Stock Options which were granted for the financial year in which the Breach of Duty has occurred and which have not been settled by the Company in accordance with § 2.6 above shall forfeit without entitlement to compensation (malus).
8.4.2In the event a Breach of Duty occurs and the Stock Options have already been settled by the Company in accordance with § 2.6 above, the Supervisory Board is further entitled to reclaim, in its discretion (pflichtgemäßes Ermessen) the payout in whole or in part for the financial year in which the Breach of Duty has occurred (clawback), whereby the following shall apply:
(i)If the Stock Options have been settled in cash in accordance with § 2.6.2 above, the Supervisory Board is entitled to reclaim in its discretion (pflichtgemäßes Ermessen) the payout in whole or in part, provided that no more than two years have passed since the settlement of the Stock Options.
(ii)If the Stock Options have been settled in shares in accordance with § 2.6.1 above, the Supervisory Board is entitled to claim a compensation payment for all or part of the Stock Options already settled, provided that not more than two years have passed since the settlement of the Stock Options. The compensation payment shall correspond to the amount of (i) the number of Stock Options, the Supervisory Board claims compensation for, multiplied by the Relevant Closing Price, and (ii) in case, the respective Participant has already paid the Exercise Price for Stock Options, minus the Exercise Price multiplied by the number of Stock Options the Supervisory Board claims compensation for. 
8.4.3Proof of damage is not required. 
8.4.4In case of a permanent or recurring Breach of Duty, § 8.4.1 and 8.4.2 above shall apply for all financial years in which the Breach of Duty occurs or is still continuing. 
8.4.5The Supervisory Board shall decide in each individual case at its due discretion, taking into account the circumstances of the individual case, in particular the significance of the duty that has been breached, the weight of the causal contribution of the Participant and the damage incurred, and considering the interests of both the Participant and the Company. 
Page 17/43

8.4.6§ 818 para. (3) of the German Civil Code (Bürgerliches Gesetzbuch) shall not apply. Claims for damages of the Company shall remain unaffected. 
8.4.7The above shall also apply in case the appointment of the Participant and/or the service agreement of the Participant has already ended. 
8.5The Supervisory Board is further entitled to reclaim in its discretion (pflichtgemäßes Ermessen) the payout already made in case it turns out that the calculation on the basis of which the payout was made was incorrect and that no payment or a lower payment would have been made on the basis of the correct calculation, whereby the following shall apply:
8.5.1If the Stock Options have been settled in cash in accordance with § 2.6.2 above, the Supervisory Board is entitled to reclaim the difference between the cash payment made by the Company and the cash payment amount that would have been made on the basis of the correct calculation, provided that not more than two years have passed since the settlement of the Stock Options. 
8.5.2If the Stock Options have been settled in shares in accordance with § 2.6.1 above, the Supervisory Board is entitled to claim a compensation payment for all Stock Options which have been settled in excess, provided that not more than two years have passed since the settlement of the Stock Options. The compensation payment shall correspond to the amount of (i) the number of Stock Options which have been transferred to the Participant in excess, multiplied by the Relevant Closing Price and (ii) in case, the respective Participant has already paid the Exercise Price for Exercise Shares, minus the Exercise Price multiplied by the number of Stock Options which have been settled in excess. 
8.5.3§ 8.4.6 and § 8.4.7 shall apply accordingly.
§ 9
EXPIRY DATE OF STOCK OPTIONS
9.1Stock Options can only be exercised by the Participants until the date of expiry of the Exercise Period (the “Expiry Date”). 

Page 18/43

9.2Notwithstanding anything contained in these Option Terms & Conditions, in no case will a Stock Option be exercisable later than the Expiry Date, provided, however, that if the term of a Stock Option expires during a Black-Out Period (§ 16.2) or within ten (10) Trading Days after the date on which the Black-Out Period ends, the term of such Stock Option will be extended to the date on which the next Exercise Period after the expiry of the Black-out Period ends; this shall apply mutatis mutandis to closed periods pursuant to Art. 19 paras. 11, 12 of the European Market Abuse Regulation (“MAR”) (§ 16.2). 

§ 10
CONSEQUENCES OF A TERMINATION OF OFFICE OR EMPLOYMENT
10.1In the event a Group 1-Participant's office as member of the Management Board ends before the expiry of the applicable Waiting Period due to a termination for Cause (as defined hereinafter)), all unexercised Stock Options granted to the Bad Leaver (whether held by him or any third party) will be forfeited without entitlement to compensation. An event of “Cause” exists if a Group 1- Participant: (i) materially violates any term of any agreement between the Group 1-Participant and MorphoSys or MorphoSys US Inc. (“MorphoSys US”), as applicable; (ii) repeatedly fails to follow reasonable instructions of MorphoSys or MorphoSys US, as applicable, is chronically absent from work, fails to perform any reasonably assigned duties after receiving written notice of same from MorphoSys or MorphoSys US, as applicable, or willfully violates any written policy of MorphoSys or MorphoSys US, as applicable, provided to the Group 1-Participant; (iii) engages in unprofessional conduct that results in, or reasonably could result in, unfavorable publicity for MorphoSys or MorphoSys US, as applicable, or engages in unprofessional conduct inconsistent with the Group 1-Participant’s position with MorphoSys or MorphoSys US, as applicable; or (iv) engages in any of the following forms of willful misconduct: (a) conviction of the commission of any felony, or any criminal act involving moral turpitude, or any misdemeanor where imprisonment is imposed; (b) misappropriation, theft or destruction of MorphoSys or MorphoSys US property; (c) securing or attempting to secure any personal profit in connection with any transaction entered into by or on behalf of MorphoSys or MorphoSys US, as applicable; (d) causing substantial material harm to MorphoSys or MorphoSys US as a result of Group 1-Participant’s malfeasance, gross negligence or reckless disregard of Group 1-Participant’s duties and responsibilities; (e) falsification of 
Page 19/43

any business record of MorphoSys or MorphoSys US; (f) any material act of fraud or dishonesty within the scope of, or relating to, Group 1-Participant’s employment by MorphoSys or MorphoSys US, as applicable; (g) commission of any crime relating to Group 1-Participant’s employment with MorphoSys or MorphoSys US, as applicable; or (h) violation of any law or regulation applicable to the business of MorphoSys or MorphoSys US. For the avoidance of doubt: If the office as member of the Management Board of a Bad Leaver ends after the expiry of the applicable Waiting Period, such Bad Leaver will retain all Stock Options that were not yet exercised on the date of his effective termination of office (the “Termination Date”). The terms and conditions set forth in these Option Terms & Conditions (Waiting Period, Performance Target, Exercise Conditions etc.) will continue to apply unchanged to the Stock Options retained pursuant to this § 10.1 (sentence 2).
10.2In the event a Group 1-Participant's office as member of the Management Board ends before the expiry of the applicable Waiting Period due to any reason other than for Cause (such Group 1-Participant a “Good Leaver”), such Good Leaver will retain all Stock Options that (i) have already vested (Stock Options for Group 1-Participants vest in forty-eight (48) monthly instalments over a four (4)-year vesting period commencing on the Grant Date, whereas one forty-eighth (1/48) of the Stock Options granted will vest on each of the forty-eight (48) monthly anniversaries following the Grant Date); and (ii) were not yet exercised on the date of his effective termination of office (the “Termination Date”). For the avoidance of doubt: If the office as member of the Management Board of a Good Leaver ends after the expiry of the applicable Waiting Period, such Good Leaver will retain all vested Stock Options that were not yet exercised on the Termination Date. The terms and conditions set forth in these Option Terms & Conditions (Waiting Period, Performance Target, Exercise Conditions etc.) will continue to apply unchanged to the Stock Options retained pursuant to this § 10.2 (sentences 1 or 2). All Stock Options which are not retained pursuant to this § 10.2 shall forfeit without entitlement to compensation.

Page 20/43

10.3In the event a Group 2-Participant's office as member of a management body of an affiliated company of MorphoSys in Germany or abroad ends, or in the event a Group 2-Participant's or a Group 3-Participant's employment with the Company or with an affiliated company of MorphoSys in Germany or abroad ends before the expiry of the applicable Waiting Period, § 10.1 and § 10.2 shall apply accordingly to the unexercised Stock Options of the respective Group 2-Participant or Group 3-Participant, provided that the existence of grounds justifying a termination of employment for Cause shall also qualify as a Bad Leaver scenario pursuant to § 10.1 sentence 1.
10.4For the avoidance of doubt: Any Exercise Shares delivered and any cash settlement payments made by the Company pursuant to § 2.6.2 upon exercise of Stock Options prior to the Termination Date shall remain unaffected by the forfeiture of Stock Options pursuant to § 10.1 sentence 1 and § 10.2 last sentence, also in conjunction with § 10.3.
10.5Annex 3 to these Option Terms & Conditions supplements the calculation example pursuant to Annex 1 in a Good Leaver scenario pursuant to § 10.2 and 10.3, respectively. For the avoidance of doubt: Also with respect to the supplemental calculation example pursuant to Annex 3, the determination of the Final Number of Stock Options, including all intermediate steps in the determination process, is subject to these Option Terms & Conditions exclusively. Annex 3 does not form a part of these Option Terms & Conditions and is for convenience only. All figures in the calculation example in Annex 3 are fictitious and selected without prejudice to any rights under these Option Terms & Conditions. In case of any inconsistencies between these Option Terms & Conditions and Annex 3, these Terms & Conditions shall prevail. No sample calculation is provided for a Bad Leaver scenario within the meaning of § 10.1 sentence 1, as in such case, all unexercised Stock Options will be forfeited without compensation.

§ 11
TRANSFERABILlTY
11.1Neither the Stock Options nor the rights of any Participant under any Stock Option or under the SOP 2021 are assignable or otherwise transferable except as provided in this § 11.
Page 21/43

11.2The Stock Options are transferable by will or applicable laws of descent upon the death of the relevant Participant. 

§ 12
ADJUSTMENT IN CASE OF SPECIFIC CAPITAL AND OTHER
STRUCTURAL MEASURES
12.1In the event of:
12.1.1a capital increase from Company funds by the issue of new shares (Kapitalerhöhung aus Gesellschaftsmitteln);
12.1.2a reduction in the number of Shares by merging Shares without capital reduction (reverse share split) or an increase in the number of Shares without capital increase (share split);
12.1.3a capital reduction (Kapitalherabsetzung) with a change in the total number of Shares issued by the Company; or
12.1.4any other such event having an effect similar to any of the foregoing (each an “Adjustment Event”),
the Supervisory Board (with regard to Group 1-Participants) or the Management Board (with regard to Group 2-Participants and/or Group 3-Participants) may (or shall, to the extent required to avoid adverse accounting consequences under applicable accounting standards) – subject to mandatory law – establish financial equality for the Participants in order to prevent that such Adjustment Event results in a dilution or enlargement of the benefits or potential benefits intended to be made available under the outstanding Stock Options. In such an Adjustment Event the financial equality shall preferably be established by adjusting the number of Stock Options (subject to available funding with Shares).
12.2For the avoidance of doubt, no adjustment pursuant to § 12.1 shall occur in the event of:

Page 22/43

12.2.1a capital increase from Company funds without the issue of new Shares (Kapitalerhöhung aus Gesellschaftsmitteln ohne Ausgabe neuer Aktien); or
12.2.2a capital reduction without a change in the total number of Shares issued by the Company.
12.3If an adjustment occurs in accordance with this § 12, fractions of shares will not be granted on the exercise of Stock Options nor will they be compensated by a payment in cash.
12.4For the avoidance of doubt, Sec. 9 para. 1 AktG applies mutatis mutandis to Stock Options which have been adjusted pursuant to this § 12.

§ 13
CHANGE OF CONTROL
13.1For purposes of this § 13, “Change of Control” means: 
13.1.1a transaction or series of related transactions in which a person or entity (other than a wholly-owned direct or indirect subsidiary of the Company) alone or acting in concert with other persons or entities acquires (i) all or substantially all of the Company's assets; or (ii) directly or indirectly at least 30 % of the voting rights in the Company within in the meaning of the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz – WpÜG);
13.1.2a merger or another similar business combination transaction of the Company with or into another entity which is not a wholly-owned direct or indirect subsidiary of the Company having an effect similar to the events described under § 13.1.1 above.
13.2In case a Change of Control occurs during the Waiting Period, the Final Number of Stock Options shall be calculated as follows:
13.2.1if the Average Yearly Period Performance Target Achievement (as defined below) exceeds 100 % in Yearly Periods preceding the Change of Control, i.e. Yearly Periods that are already complete at the date when the Change of Control occurs (“Complete Yearly Periods”, each a “Complete Yearly Period”), the 
Page 23/43

respective individual achievement of the Performance Targets shall be decisive for the respective Complete Yearly Period(s) in the determination of the Overall Performance Target Achievement. “Average Yearly Period Performance Target Achievement” refers to the average (arithmetic mean) of (i) the respective Yearly Period Absolute Performance Target Achievement; and (ii) the respective Yearly Period Relative Performance Target Achievement.
13.2.2if the Average Yearly Period Performance Target Achievement is below 100 % in Complete Yearly Periods the level of achievement of the Yearly Period Absolute Performance Target Achievement and the Yearly Period Relative Performance Target Achievement shall nevertheless be 100 % for the respective Complete Yearly Period(s) in the determination of the Overall Performance Target Achievement, provided, however, that at least either the Minimum Value Absolute Performance Target or the Minimum Value Relative Performance Target has been exceeded in the respective Complete Yearly Period.
13.2.3for the Yearly Period, during which the Change of Control occurred, as well as for subsequent Yearly Periods, a level of achievement of 100 % of the Yearly Period Absolute Performance Target Achievement and the Yearly Period Relative Performance Target Achievement shall be decisive for the respective Yearly Period(s) in the determination of the Overall Performance Target Achievement, irrespective of the individual achievement (if any) of the Performance Targets.
13.3In addition, the terms and conditions set forth in these Option Terms & Conditions (Waiting Period, Exercise Conditions etc.), in particular the vesting provisions in § 10.2, and § 10.3 respectively, will continue to apply unchanged to the Stock Options in case of a Change of Control during the Waiting Period. For clarification purposes: The “Amended and Restated Change of Control Severance Plan” dated July 18, 2018, of Constellation Pharmaceuticals Inc., as well as any subsequent amendment or renewal of such plan shall not apply to these Option Terms & Conditions or to the Stock Options granted hereunder. 
13.4Annex 4 to these Option Terms & Conditions supplements the calculation example pursuant to Annex 1 in the event of a Change of Control. For the avoidance of doubt: Also with respect to the supplemental calculation example pursuant to Annex 4, the determination of the Final Number of Stock Options, including all intermediate steps in the determination process, is subject to these Option Terms & Conditions exclusively. Annex 4 does not form a part of these 
Page 24/43

Option Terms & Conditions and is for convenience only. All figures in the calculation example in Annex 4 are fictitious and selected without prejudice to any rights under these Option Terms & Conditions. In case of any inconsistencies between these Option Terms & Conditions and Annex 4 these Terms & Conditions shall prevail.

§ 14
LIMITATION OF LIABILITY
14.1The Company (or any of its directors, officers, employees, agents or advisors) does not:
14.1.1assume any responsibility or liability for the development of the value or market price of the Shares;
14.1.2warrant, assure or guarantee any increase in value of the Shares, in particular it is neither warranted, assured or guaranteed that a Participant will be able to sell his participation in the Company with a profit in the future, nor that no loss will be incurred; or
14.1.3warrant, assure or guarantee a profit of a Participant from the SOP 2021 or any Stock Option granted thereunder.
14.2Each Participant declares with his participation in the SOP 2021 that the participation is voluntary. Each Participant is aware of the fact that he alone bears the risk of a decrease in or total loss of value of his investments. Each Participant accepts the offer to participate in the SOP 2021 at his own risk and assumes any liability relating thereto.
14.3Each Participant is responsible for obtaining legal, tax and any other necessary advice before participating in the SOP 2021 and for evaluating the tax effects connected with the SOP 2021. Each Participant accepts and declares that he has not been advised by or on behalf of the Company with respect to his participation in the SOP 2021 (in particular, regarding legal and tax issues of such participation).

Page 25/43

§ 15
TAXES, SOCIAL SECURITY AND COSTS
15.1All taxes (including payroll taxes), social security contributions, further duties and costs accrued by the Participant in connection with his participation in the SOP 2021 shall be borne by each Participant. Each Participant is obliged to pay taxes relating to the respective Stock Options granted/exercised under the SOP 2021, or relating to a transfer of such Stock Options by the Participant to a third party, to the competent tax authorities. Each Participant shall fully indemnify the Company in respect of all such liabilities and obligations against tax authorities.
15.2The employer of the Participant is entitled, if required by statutory law, to withhold payroll tax or any other taxes or duties or social security contributions to be paid by (or on behalf and account of) the Participant. This applies even after termination of the employment relationship of a Participant with the Company. The Company is entitled to demand the full cooperation of the Participant even after his leave with respect to the withholding of taxes, social security contributions, other duties and costs in connection with the SOP 2021. The Participant undertakes to fully co-operate with the Company.
15.3Withholdings mentioned above do not release the Participant from his responsibility and obligation to pay all taxes, social contributions, further duties and costs being due and accruing in connection with his participation in the SOP 2021 or the grant, exercise or transfer of any Stock Options.

§ 16
INSIDER TRADING AND BLACK-OUT PERIODS
16.1Any exercise of, or any other transaction in, the Stock Options (each a “Transaction”) must be conducted in compliance with (i) all applicable insider trading laws and regulations, including Art. 14, 7 et seqq. MAR, and (ii) all provisions of any insider trading rules established by the Company ((i) and (ii) together the “Insider Trading Rules”). Each Participant is personally responsible for informing himself about, and acting in full compliance with all applicable Insider Trading Rules. Any individual non-compliance with applicable Insider Trading Rules may lead to the imposition of civil and criminal penalties (as the case may be).
Page 26/43

16.2In order to minimize the potential for prohibited insider trading, the Supervisory Board may establish in its sole discretion periods from time to time during which all or some of the Participants may not engage in transactions involving the Stock Options (the “Black-Out Periods”). Notwithstanding any other provisions in these Option Terms & Conditions, the Participants may not exercise any Stock Options during an applicable Black-Out Period. Art. 19 paras. 11, 12 MAR regarding closed periods and the permissibility of trading by persons discharging managerial responsibilities within the Company during closed periods, as well as the respective delegated regulation by the European Commission, as applicable from time to time, remain unaffected.

§ 17
FORM REQUIREMENTS
17.1Any legal statements and other notices in connection with the SOP 2021 (collectively the “Notices”) or any amendment of these Option Terms & Conditions (including an amendment of this § 17.1) shall be made in text form (Textform) pursuant to Sec. 126b BGB unless any other specific form is required by mandatory law or these Option Terms & Conditions.
17.2Any Notice to be delivered to the Company shall be addressed both by mail and email to MorphoSys AG, Head of Human Resources, Semmelweisstraße 7, 82152 Planegg, Germany, email address: maria.catresanajauregui@morphosys.com. The Company shall communicate changes in the address set forth in the previous sentence as soon as possible to the Participants. In the absence of such communication, the address stated above shall remain in place.
17.3Any Notice to be given to a Participant may be served by being handed to him personally or by being sent to him at his home or business address set forth in the option agreement relating to the Stock Options (“Option Agreement”). Each Participant shall communicate changes of address as soon as possible to the Company. In the absence of a notification of a change of address the address indicated in the Option Agreement shall remain in place.

Page 27/43

§ 18
PROCESSING OF PERSONAL DATA 
The Company processes personal data of the Participants in connection with the administration, implementation and settlement of the SOP 2021. Additional information regarding the processing of personal data in connection with the SOP 2021 is included in Annex 5 (Information on the Processing of Personal Data).

§ 19
GOVERNING LAW AND JURISDICTION
19.1The SOP 2021, any Stock Options granted thereunder and these Option Terms & Conditions shall be exclusively governed by, and be construed in accordance with, the laws of the Federal Republic of Germany, without regard to principles of conflicts of laws.
19.2Any dispute, controversy or claim arising from or in connection with the SOP 2021, any Stock Options granted thereunder or these Option Terms & Conditions or their validity shall be decided upon by the competent courts in Munich, Germany.
§ 20
FINAL PROVISIONS
20.1All provisions in these Option Terms & Conditions shall be subject to the terms and conditions established by the SOP Resolution.
20.2Unless otherwise explicitly provided for in these Option Terms & Conditions, no Participant shall be entitled to assign any rights or claims under the SOP 2021 and these Option Terms & Conditions without the written consent of the Company.

Page 28/43

20.3In these Option Terms & Conditions, the headings are inserted for convenience only and shall not affect the interpretation of these Option Terms & Conditions; where a German term has been inserted in italics, it alone (and not the English term to which it relates) shall be authoritative for the purpose of the interpretation of the relevant English term in these Option Terms & Conditions. The terms “including” and “in particular” shall always mean “including, without limitation” and “in particular, without limitation”, respectively. Any reference made in these Option Terms & Conditions to any clauses without further indication of a law, an agreement or another document shall mean clauses of these Option Terms & Conditions. 
20.4In the event that one or more provisions of these Option Terms & Conditions shall, or shall be deemed to, be invalid or unenforceable, the validity and enforceability of the other provisions of these Option Terms & Conditions shall not be affected thereby. In such case, the Company and each Participant agree to recognize and give effect to such valid and enforceable provision or provisions, which correspond as closely as possible with the commercial intent of the Parties. The same shall apply in the event that these Option Terms & Conditions contain any unintended gaps (unbeabsichtigte Lücken).
Planegg, October 2021
MorphoSys AG

* * * *

Page 29/43

Annex 1    
- Non-binding calculation example -

Page 30/43

Example Calculation Maximum Limit
Example 1:
The Allocation Value of the Participant amounted to EUR 100,000. Thus, the Maximum Limit amounts to EUR 250,000 (i.e., 250% of EUR 100,000). 
The Final Number of Stock Options amounts to 1,200. The Exercise Price amounts to EUR 55,00 and the Relevant Closing Price amounts to EUR 120,00.
The economical inflow of the Participant at the time of the exercise of the Stock Options would amount to EUR 78,000 (i.e., 1,200* (EUR 120,00 - EUR 55,00), which is below the Maximum Limit of EUR 250,000. Thus, no Stock Options will forfeit.

Example 2:
The Allocation Value of the Participant amounted to EUR 100,000. Thus, the Maximum Limit amounts to EUR 250,000 (i.e., 250% of EUR 100,000). 
The Final Number of Stock Options amounts to 1,200. The Exercise Price amounts to EUR 55,00 and the Relevant Closing Price amounts to EUR 280,00.
The economical inflow of the Participant at the time of the exercise of the Stock Options would amount to EUR 270,000 (i.e., 1,200* (EUR 280,00 - EUR 55,00), which exceeds the Maximum Limit of EUR 250,000. Thus, Stock Options will forfeit in accordance with the following calculation:
1,200 – (250,000 / (280,00 – 55,00)) = 88,8888, i.e., 89 Stock Options will forfeit. 

Page 31/43

Annex 2    
- Template Exercise Notice -

						
	AUSÜBUNGS- UND
BEZUGSERKLÄRUNG
zum
Aktienoptionsprogramm 2021
gemäß § 198 Abs. 1 AktG
(doppelt ausgestellt)
	EXERCISE NOTICE AND
SUBSCRIPTION DECLARATION
relating to the
Stock Option Plan 2021
pursuant to Sec. 198 para. 1 of the
German Stock Corporation Act (“AktG”)
(issued twice)

		
	Durch Beschluss der Hauptversammlung der MorphoSys AG vom 27. Mai 2020 wurde das Grundkapital der MorphoSys AG um EUR 1.314.615,00 durch Ausgabe von bis zu 1.314.615 auf den Inhaber lautenden Stückaktien mit einem rechnerischen Anteil am Grundkapital von EUR 1,00 je Aktie bedingt erhöht („Bedingtes Kapital 2020-I“). Das Bedingte Kapital 2020-I dient der Sicherung von Bezugsrechten aus Aktienoptionen, die im Rahmen des Aktienoptionsprogramms 2021 (Stock Option Plan 2021; „SOP 2021“) in der Zeit ab Eintragung des Bedingten Kapitals 2020-I bis zum 26. Mai 2025 ausgegeben werden.
	By resolution of the general meeting of MorphoSys AG of May 27, 2020, the nominal share capital of MorphoSys AG was conditionally increased by EUR 1,314,615.00 through the issue of up to 1,314,615 no-par-value bearer shares with a pro rata amount of the nominal share capital of EUR 1.00 per share (“Conditional Capital 2020-I”). The Conditional Capital 2020-I serves to secure subscription rights from stock options issued under the stock option plan 2021 (“SOP 2021”) in the time period from the date of registration of the Conditional Capital 2020-I until May 26, 2025.

		

Page 32/43

						
	Der Vorstand wurde im Rahmen des SOP 2021 durch Beschluss der Hauptversammlung der MorphoSys AG vom 27. Mai 2020 ermächtigt, bis einschließlich zum 26. Mai 2025, mit Zustimmung des Aufsichtsrats, einmalig oder mehrmals Bezugsrechte („Stock Options“) auf insgesamt bis zu 657.308 auf den Inhaber lautende Stückaktien der Gesellschaft an Mitglieder von Geschäftsleitungsorganen verbundener Unternehmen im In- und Ausland sowie an ausgewählte Mitarbeiter der MorphoSys AG und verbundener Unternehmen im In- und Ausland zu gewähren. Der Aufsichtsrat wurde im Rahmen des SOP 2021 durch Beschluss der Hauptversammlung der MorphoSys AG vom 27. Mai 2020 ermächtigt, bis einschließlich zum 26. Mai 2025 einmalig oder mehrmals Bezugsrechte auf insgesamt bis zu 657.307 auf den Inhaber lautende Stückaktien der Gesellschaft an Mitglieder des Vorstands der Gesellschaft zu gewähren.	Under the SOP 2021, by resolution of the general meeting of MorphoSys AG of May 27, 2020, the Management Board was authorized to grant, with the consent of the Supervisory Board, on one or more occasions until and including the date of May 26, 2025, stock options to up to 657,308 no-par-value bearer shares of the company to members of management bodies of affiliated companies in Germany and abroad and to selected employees of MorphoSys AG and affiliated companies in Germany and abroad. The Supervisory Board was authorized under the SOP 2021 by resolution of the general meeting of MorphoSys AG of May 27, 2020 to grant, on one or more occasions until and including the date of May 26, 2025, stock options to up to 657,307 no-par-value bearer shares of the company to members of the Management Board of the company.

		
	Eine Aktienoption (Stock Option) gewährt Bezugsrechte auf bis zu zwei Aktien der Gesellschaft mit einem rechnerischen Anteil am Grundkapital der MorphoSys AG von EUR 1,00.	One stock option grants subscription rights to a maximum of two shares of the company with a pro rata amount of the nominal share capital of MorphoSys AG of EUR 1.00.

		
	Ich, Frau/Herr [Vor- und Nachname, Geburtsdatum, Adresse], bin Inhaber/in von insgesamt [] Bezugsrechten aus [] Aktienoptionen mit dem Recht auf den Bezug von jeweils einer auf den Inhaber lautenden Stückaktie der MorphoSys AG mit einem rechnerischen Anteil am Grundkapital der MorphoSys AG von EUR 1,00 je Aktie aus dem SOP 2021.
	I, Mrs./Mr. [first and last name, date of birth, address], am the holder of a total of [] subscription rights from [] stock options, each of them entitling me to the subscription of one no-par-value bearer share of MorphoSys AG with a pro rata amount of EUR 1.00 of the nominal share capital of MorphoSys AG under the SOP 2021.

		

Page 33/43

						
	Ich erkläre hiermit gemäß § 198 Abs. 1 AktG nach Maßgabe der Optionsbedingungen die Ausübung von [] Bezugsrechten, und zeichne und übernehme aus dem von der Hauptversammlung der MorphoSys AG vom 27. Mai 2020 unter TOP 11 beschlossenen und in das Handelsregister eingetragenen Bedingten Kapital 2020-I insgesamt [] auf den Inhaber lautende Stückaktien der MorphoSys AG mit einem rechnerischen Anteil am Grundkapital der MorphoSys AG von EUR 1,00 je Aktie.
	I herewith declare pursuant to Sec. 198 para. 1 AktG in accordance with the Option Terms & Conditions the exercise of [] subscription rights, and subscribe for a total of [] no-par-value bearer shares of MorphoSys AG with a pro rata amount of EUR 1.00 of the nominal share capital of MorphoSys AG out of the Conditional Capital 2020-I, resolved upon by the general meeting of MorphoSys AG as of May 27, 2020, under agenda item 11 and registered with the commercial register.

		
	Der für diese Aktien zu leistende Ausübungspreis von EUR [] je Aktie, und damit EUR [] insgesamt, wurde auf das vom Aufsichtsrat oder vom Vorstand mit Zustimmung des Aufsichtsrats bezeichnete Konto der MorphoSys AG bei der
	The exercise price for these shares in the amount of EUR [] per share and, thus, a total amount of EUR [], has been paid or transferred to the account of MorphoSys AG, as determined by the Supervisory Board or the Management Board with the consent of the Supervisory Board at

	1[[],
2IBAN: [],
3BIC: []],
eingezahlt bzw. überwiesen.
	1[[],
2IBAN: [],
3BIC: []].

		
	Die Aktien sollen in Form von Miteigentumsanteilen an einer Globalurkunde in mein Depot bei der	The shares shall be booked in my share deposit in the form of a co-ownership share (Miteigentumsanteil) of a global share certificate (Globalurkunde) with

	1[Bezeichnung des Kreditinstituts],
2IBAN: [],
3BIC: [],
4Depotinhaber: [],
eingebucht werden.
	1[name of bank],
2IBAN: [],
3BIC: [],
4depositor: [].

		
	Eine Zweitausfertigung dieser Ausübungs- und Bezugserklärung ist beigefügt. Die deutsche Fassung dieser Ausübungs- und Bezugserklärung ist maßgeblich.	A duplicate of this exercise notice and subscription declaration is attached. The German version of this exercise notice and subscription declaration shall prevail.

Page 34/43

Ort/Place, Datum/Date:     __________________________

Unterschrift/Signature:     ___________________________

Page 35/43

Annex 3
- Non-binding calculation example –
Page 36/43

Annex 4    
- Non-binding calculation example –

Page 37/43

Annex 5

Information on the Processing of Personal Data
in connection with the Stock Option Plan 2021 
(hereinafter referred to as “SOP 2021”)
of MorphoSys AG 
(hereinafter referred to as the “Company”)

In connection with the administration, processing and execution of the SOP 2021, the Company processes personal data of the participants (hereinafter also referred to as “Data Subjects”) in accordance with the EU General Data Protection Regulation (“GDPR”). Pursuant to the GDPR, the Company is obliged to provide the following information on the processing of personal data. All defined terms used in this information have the meaning assigned to them in the option conditions.
I.    Responsibilities and Contact Information
The controller of the personal data pursuant to Art. 4 para. 7 GDPR is the Company:
MorphoSys AG
Semmelweisstraße 7
82152 Planegg
Germany
Telephone:     +49 (0)89 899 27-0
Facsimile:     +49 (0)89 899 27-222
E-Mail: info@morphosys.com
Website: www.morphosys.com
The Data Protection Officer of the Company can be contacted through:
MorphoSys AG
Data Protection Officer
Semmelweisstraße 7
82152 Planegg
Germany
Page 38/43

or
Email: datenschutz@morphosys.com
II.    Use of Personal Data by the Company
The Company processes personal data of the Data Subjects such as names, contact data, tax numbers and all other information necessary for the participation of a Data Subject in the SOP 2021 as well as for the administration, processing and execution of the SOP 2021 (processing purpose). The legal basis for data processing is Art. 6 para. 1 (b) GDPR.
In addition, the Company processes personal data of the Data Subjects if and to the extent required by the law applicable to the Company (e.g., tax law). The legal basis for data processing in this respect is Art. 6 para. 1 (c) GDPR.
III.    Transfer of Personal Data
The Company may disclose personal data to an external service provider (“External Service Provider”) commissioned or involved for the purposes of the administration, processing and/or execution of the SOP 2021 in order to support the processing of personal data for the processing purpose set out in Section II above. If and to the extent permitted by law, the Company may also commission other third parties to provide certain services, such as IT-services and legal services, for the processing purpose set out in Section II above and may disclose personal data to such third parties. These recipients provide their assistance or services to the Company under its control and direction and may have access to personal data to the extent necessary to provide their assistance or services.
In addition, the Company may, to the extent required and permitted by law, transfer personal data to domestic and foreign authorities or courts in order to fulfil legal obligations.
IV.    Storage and Deletion of Personal Data
The Company processes the personal data within the framework of the participation of the Data Subjects in the SOP 2021. The Company deletes the personal data if it no longer needs it for the fulfilment of its contractual obligations under the SOP 2021 and if there are 
Page 39/43

no legal storage obligations. In the event of a legal obligation to retain personal data, the Company shall restrict the processing of such personal data.
V.    Rights of the Data Subjects
The Data Subjects may, at any time and free of charge, contact the Company or its Data Protection Officer directly with an informal notification in order to exercise their rights under the GDPR. The Data Subjects have the right, subject to the legal requirements, the fulfilment of which is to be examined on a case-by-case basis, to request information on their personal data, any rectification or deletion of their personal data, information regarding restrictions on the processing of their personal data and they have the right to receive their personal data in a structured, generally used and machine-readable format.
The Data Subjects also have the right to object to the processing of their personal data, subject to the legal requirements, the fulfilment of which must be examined on a case-by-case basis.
In addition, Data Subjects have the right to lodge a complaint with a supervisory authority. 

Page 40/43

ANNEX 6 TO THE SOP 2021 
FOR U.S. TAXPAYERS 
1.SPECIAL PROVISIONS FOR U.S. TAXPAYERS
1.1The provisions of this Annex apply only to persons who are subject to U.S. federal income tax (any such person, a “U.S. Taxpayer”).
1.2This Annex is to be read as a continuation of the SOP 2021 and applies only with respect to Stock Options under the SOP 2021 granted to U.S. Taxpayers. The purpose of this Annex is to establish certain rules and limitations applicable to Stock Options that may be granted or issued under the SOP 2021 to U.S. Taxpayers from time to time, in compliance with applicable tax, securities and other applicable laws currently in force.  For the avoidance of doubt, this Annex does not add to or modify the SOP 2021 in respect of any other category of Participants.
1.3The SOP 2021 and this Annex are complementary to each other and shall be deemed as one. Subject to Section 1.2 above, in any case of contradiction, whether explicit or implied, between any definitions and/or provisions of this Annex and the SOP 2021, the provisions set out in this Annex shall prevail.
2.DEFINITIONS
Capitalized terms not otherwise defined herein shall have the meaning assigned to them in the SOP 2021. The following additional definitions will apply to grants made pursuant to this Annex, provided, however, that to the extent that such definitions are provided for in the SOP 2021 and the Annex, the definitions in this Annex shall apply to Grants to U.S. Taxpayers:
2.1“Code” means the Internal Revenue Code of 1986, as it may be amended from time to time, including rules and regulations promulgated thereunder and successor provisions and rules and regulations thereto.
2.2“Fair Market Value” means the fair market value of the Shares on the Grant Date as determined by the Supervisory Board or the Management Board, as applicable under the SOP 2021, by the reasonable application of a reasonable valuation method, consistently applied, as the Supervisory Board or the Management Board, as applicable under the SOP 2021, deems appropriate; provided, however, that if the Shares are readily tradable on an established securities market, Fair Market Value on any Grant Date shall be the last sale price reported for the Shares on such market on such date or, if no sale is reported on such date, on the last date preceding such date on which a sale was reported.  In each case, the Supervisory Board or the Management Board, as applicable under the SOP 2021, shall 
Page 41/43

determine Fair Market Value in a manner that satisfies the applicable requirements of Code Section 409A.
3.STOCK OPTIONS
3.1Stock Options granted to U.S. Taxpayers are not intended to meet the requirements of Section 422 of the Code.
3.2The Exercise Price applicable to a Stock Option shall be determined pursuant to Section 3 of the SOP 2021, provided that prior to the commencement of the thirty (30) Trading Day period referenced in such Section 3 of the SOP 2021 for purposes of determining the Exercise Price of a Grant of Stock Options on an applicable Grant Date, the Supervisory Board or the Management Board, as applicable under the SOP 2021, must irrevocably identify and approve (i) each Participant who is a U.S. Taxpayer who will receive a Grant of Stock Options on the applicable Grant Date and (ii) the number of Stock Options that will be subject to each such grant to a Participant who is a U.S. Taxpayer. 
4.MISCELLANEOUS 
4.1Neither the Supervisory Board nor the Management Board shall take any action that would cause a Grant that is otherwise exempt from Section 409A of the Code to become subject to Code Section 409A, and if any Grant would be considered deferred compensation as defined under Code Section 409A and would fail to meet the requirements of Code Section 409A, then such Grant shall be null and void.
4.2The Supervisory Board or the Management Board, as applicable under the SOP 2021, shall not extend the period to exercise a Stock Option to the extent that such extension would cause the Stock Option to become subject to Code Section 409A.  An Option Agreement may provide that the period of time over which a Stock Option may be exercised shall be automatically extended if on the scheduled expiration date of such Stock Option the Participant’s exercise of such Stock Option would violate applicable securities laws; provided, however, that during such extended exercise period the Stock Option may only be exercised to the extent the Stock Option was exercisable in accordance with its terms immediately prior to such scheduled expiration date; provided further, however, that such extended exercise period shall end not later than thirty (30) days after the exercise of such Stock Option first would no longer violate such laws.
4.3Although the Company intends to administer the SOP 2021 so that Grants will be exempt from, or will comply with, the requirements of Code Section 409A, the Company does not warrant that any Grant under the SOP 2021 will qualify for favorable tax treatment under Code Section 409A or any other provision of federal, state, local, or non-United States law.  The Company shall not be liable to any 
Page 42/43

Participant for any tax, interest, or penalties the Participant might owe as a result of the grant, holding, vesting, exercise, or payment of any Grant under the SOP 2021.
Page 43/43

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}]]