Document:

EX-10.1

 Exhibit 10.1 
 CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT 

PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN 

FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 STOCK PURCHASE AGREEMENT 
 dated as of July 29, 2010 

by and between 
 PFIZER INC. 
 and 

CONATUS PHARMACEUTICALS INC. 

 TABLE OF CONTENTS 

 

									
	 1.
	 	DEFINITIONS	  	 	1	  
			
	 2.
	 	PURCHASE AND SALE OF SHARES	  	 	8	  
		 	 2.1.
	  	Purchase and Sale of Shares	  	 	8	  
		 	 2.2.
	  	Purchase Price	  	 	8	  
		 	 2.3.
	  	The Closing	  	 	8	  
		 	 2.4.
	  	Closing Deliveries	  	 	8	  
		 	 2.5.
	  	Milestone Payments	  	 	9	  
		 	 2.6.
	  	Withholding Taxes	  	 	10	  
			
	 3.
	 	REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY	  	 	10	  
		 	 3.1.
	  	Organization, Qualification; Subsidiaries	  	 	10	  
		 	 3.2.
	  	Capital Structure	  	 	10	  
		 	 3.3.
	  	Noncontravention	  	 	11	  
		 	 3.4.
	  	Title to, and Sufficiency of, Assets	  	 	11	  
		 	 3.5.
	  	Litigation; Compliance with Law	  	 	12	  
		 	 3.6.
	  	Intellectual Property	  	 	12	  
		 	 3.7.
	  	Regulatory Compliance	  	 	13	  
		 	 3.8.
	  	Material Contracts	  	 	14	  
		 	 3.9.
	  	Employees and Consultants; Employee Agreements and Plans	  	 	15	  
		 	 3.10.
	  	Real Property	  	 	15	  
		 	 3.11.
	  	Taxes	  	 	15	  
		 	 3.12.
	  	Asset and Liability Statement	  	 	17	  
		 	 3.13.
	  	No Brokers	  	 	17	  
		 	 3.14.
	  	No Other Representations or Warranties	  	 	17	  
			
	 4.
	 	REPRESENTATIONS AND WARRANTIES OF THE SELLER	  	 	17	  
		 	 4.1.
	  	Organization	  	 	17	  
		 	 4.2.
	  	Power and Authorization	  	 	18	  
		 	 4.3.
	  	Authorization of Governmental Authorities	  	 	18	  
		 	 4.4.
	  	Noncontravention	  	 	18	  

  
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		 	4.5.	  	Shares	  	 	19	  
		 	 4.6.
	  	No Brokers	  	 	19	  
		 	 4.7.
	  	Adverse Events	  	 	19	  
			
	 5.
	 	REPRESENTATIONS AND WARRANTIES OF THE BUYER	  	 	19	  
		 	 5.1.
	  	Organization	  	 	19	  
		 	 5.2.
	  	Power and Authorization	  	 	19	  
		 	 5.3.
	  	Authorization of Governmental Authorities	  	 	20	  
		 	 5.4.
	  	Noncontravention	  	 	20	  
		 	 5.5.
	  	Investment Experience; Investigation; Reliance	  	 	20	  
		 	 5.6.
	  	No Brokers	  	 	21	  
		 	 5.7.
	  	No Other Representations or Warranties	  	 	21	  
			
	 6.
	 	COVENANTS	  	 	21	  
		 	 6.1.
	  	Closing	  	 	21	  
		 	 6.2.
	  	Conduct of Business.	  	 	21	  
		 	 6.3.
	  	Notice of Developments	  	 	23	  
		 	 6.4.
	  	Technology Transfer	  	 	24	  
		 	 6.5.
	  	Negotiation of Licenses	  	 	24	  
		 	 6.6.
	  	Expenses	  	 	24	  
		 	 6.7.
	  	Exclusivity	  	 	25	  
		 	 6.8.
	  	Notices and Consents	  	 	25	  
		 	 6.9.
	  	Confidentiality	  	 	25	  
		 	 6.10.
	  	Publicity	  	 	27	  
		 	 6.11.
	  	Regulatory Cooperation	  	 	27	  
		 	 6.12.
	  	Financial Statement Cooperation	  	 	27	  
		 	 6.13.
	  	Further Assurances	  	 	28	  
		 	 6.14.
	  	Post Closing Payments	  	 	28	  
			
	 7.
	 	CONDITIONS TO THE BUYER’S OBLIGATIONS AT THE CLOSING	  	 	28	  
		 	 7.1.
	  	Representations and Warranties	  	 	28	  
		 	 7.2.
	  	Performance	  	 	28	  
		 	 7.3.
	  	Stock Certificates	  	 	28	  

  
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		  	7.4.	  	Compliance Certificate	  	 	28	  
		  	7.5.	  	Qualifications	  	 	29	  
		  	7.6.	  	Absence of Litigation	  	 	29	  
		  	7.7.	  	Consents, etc	  	 	29	  
		  	7.8.	  	Ancillary Agreements	  	 	29	  
		  	7.9.	  	FIRPTA Affidavit	  	 	29	  
			
	 8.
	  	CONDITIONS TO THE SELLER’S OBLIGATIONS AT THE CLOSING	  	 	29	  
		  	8.1.	  	Representations and Warranties	  	 	29	  
		  	8.2.	  	Performance	  	 	29	  
		  	8.3.	  	Compliance Certificate	  	 	29	  
		  	8.4.	  	Qualifications	  	 	30	  
		  	8.5.	  	Absence of Litigation	  	 	30	  
		  	8.6.	  	Consents, etc	  	 	30	  
		  	8.7.	  	Ancillary Agreements	  	 	30	  
		  	8.8.	  	Financial Statements	  	 	30	  
			
	 9.
	  	TERMINATION	  	 	30	  
		  	9.1.	  	Termination of Agreement	  	 	30	  
		  	9.2.	  	Effect of Termination	  	 	31	  
			
	 10.
	  	INDEMNIFICATION	  	 	31	  
		  	10.1.	  	Indemnification by the Seller	  	 	31	  
		  	10.2.	  	Indemnity by the Buyer	  	 	33	  
		  	10.3.	  	Time for Claims	  	 	34	  
		  	10.4.	  	Third Party Claims	  	 	34	  
		  	10.5.	  	Other Limitations	  	 	36	  
		  	10.6.	  	Remedies Cumulative	  	 	37	  
		  	10.7.	  	Knowledge and Investigation	  	 	37	  
		  	10.8.	  	No Right of Set-Off	  	 	37	  
		  	10.9.	  	Exclusive Remedy	  	 	37	  
		  	10.10.	  	Purchase Price Adjustments	  	 	37	  
			
	 11.
	  	TAX MATTERS	  	 	37	  

  
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		  	11.1.	  	Tax Indemnification	  	 	37	  
		  	11.2.	  	Straddle Period; Related Items	  	 	38	  
		  	11.3.	  	Tax Sharing Agreements	  	 	39	  
		  	11.4.	  	Certain Taxes and Fees	  	 	39	  
		  	11.5.	  	Cooperation; Tax Contests	  	 	39	  
		  	11.6.	  	Tax Returns	  	 	40	  
		  	11.7.	  	Tax Records	  	 	42	  
		  	11.8.	  	Amendments	  	 	42	  
		  	11.9.	  	Certain Tax Attributes	  	 	42	  
		  	11.10.	  	Prohibition of Certain Tax Elections	  	 	42	  
		  	11.11.	  	Buyer Tax Act	  	 	42	  
			
	 12.
	  	MISCELLANEOUS	  	 	43	  
		  	12.1.	  	Notices	  	 	43	  
		  	12.2.	  	Succession and Assignment; No Third-Party Beneficiary	  	 	44	  
		  	12.3.	  	Amendments and Waivers	  	 	44	  
		  	12.4.	  	Entire Agreement	  	 	44	  
		  	12.5.	  	Counterparts	  	 	44	  
		  	12.6.	  	Severability	  	 	44	  
		  	12.7.	  	Headings	  	 	45	  
		  	12.8.	  	Interpretation	  	 	45	  
		  	12.9.	  	Construction	  	 	45	  
		  	12.10.	  	Governing Law	  	 	45	  
		  	12.11.	  	Dispute Resolution	  	 	45	  
		  	12.12.	  	Jurisdiction; Venue; Service of Process	  	 	45	  
		  	12.13.	  	Waiver of Jury Trial	  	 	46	  

  
 -iv-

 EXHIBITS 

 

			
	Exhibit 1.A	  	Inventory Transfer Agreement
	Exhibit 2.2	  	Promissory Note
	Exhibit 6.4	  	Technology Transfer
	Exhibit 7.4	  	Seller Compliance Certificate
	Exhibit 8.3	  	Buyer Compliance Certificate

  
 -v-

 SCHEDULES 

 

			
	Schedule 3	  	Disclosure Schedule
	Schedule 6.2	  	Conduct of Business
	Schedule 7.7	  	Seller Consents
	Schedule 8.6	  	Buyer Consents

  
 -vi-

 STOCK PURCHASE AGREEMENT 

This Stock Purchase Agreement (the “Agreement”), dated July 29, 2010 (the “Execution Date”), is
among Conatus Pharmaceuticals Inc., a Delaware corporation (the “Buyer”) and Pfizer Inc., a Delaware corporation (the “Seller”). Buyer and Seller are each referred to in this Agreement as a “Party”
and collectively, as the “Parties.” 
 RECITALS 

WHEREAS, the Seller is the record and beneficial owner of all of the outstanding shares of capital stock (the “Shares”)
of Idun Pharmaceuticals, Inc., a Delaware corporation and wholly owned subsidiary of the Seller (the “Company”); and 
 WHEREAS, the Buyer desires to purchase from the Seller, and the Seller desires to sell to the Buyer, all of the Shares upon the terms and subject to the conditions set forth in this Agreement. 

AGREEMENT 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as
follows: 
 1. Definitions. As used herein, the following terms will have the following meanings: 

“Abbott Product” means that pharmaceutical product candidate identified by the Company and its licensee, Abbott
Laboratories, as ABT-263. 
 “Adverse Event” means any untoward medical occurrence in a patient or subject who
is administered a Product, whether or not such medical occurrence is considered related to such Product, during or in connection with a clinical trial conducted by Seller or its Affiliates after the Company Acquisition Date. 

“Action” means any claim, action, cause of action or suit (whether in contract or tort or otherwise), litigation
(whether at law or in equity, whether civil or criminal), controversy, assessment, arbitration, investigation, hearing, charge, complaint, demand, notice, whistle-blowing action or proceeding to, from, by or before any Governmental Authority or
Regulatory Authority. 
 “Affiliate” means any entity directly or indirectly controlled by, controlling, able
to control, or under common control with, a specified Person, but only for so long as such control continues. For purposes of this definition, “control” (including, with correlative meanings, “controlled by”,
“controlling” and “under common control with”) means possession, direct or indirect, of (a) the power to direct or cause direction of the management and policies of such Person (whether through ownership of securities or
partnership or other ownership interests, by contract or otherwise), or (b) at least 50% of the voting securities (whether directly or pursuant to any option, warrant or other similar arrangement) or other comparable equity interests of such
Person. For the avoidance of doubt, neither of the Parties will be deemed to be an “Affiliate” of the other solely as a result of their entering into this Agreement. 

 “Agreement” is defined in the introduction to this Stock Purchase
Agreement. 
 “Ancillary Agreements” means the Inventory Transfer Agreement, the Promissory Note, and the
certificates delivered pursuant to Sections 7.4 and 8.3. 
 “Asset and Liability Statement” is defined in
Section 3.12. 
 “Business Day” means any weekday other than a weekday on which banks in New York City are
authorized or required to be closed. 
 “Buyer” is defined in the introduction to this Agreement. 

“Buyer Indemnified Person” is defined in Section 10.1.1. 

“Buyer Tax Act” means (a) any action taken by Buyer or any of its Affiliates (including the Company) during the
portion of the Closing Date after the Closing, other than an action taken in the Ordinary Course of Business, that results in any gain or income to the Company, or (b) any action, inaction or delay (other than an action, inaction or delay that
is in the Ordinary Course of Business) by Buyer or any of its Affiliates (including the Company) during the portion of a Straddle Period beginning after the Closing that results in any item of gain or income to the Company that is allocated to a
Pre-Closing Tax Period by reason of Section 11.2. 
 “Closing Date” means the date on which the Closing
actually occurs. 
 “Closing” is defined in Section 2.3. 

“Code” means the U.S. Internal Revenue Code of 1986, as amended. 

“Company Acquisition Date” means April 12, 2005, which is the date on which the Company was acquired by the Seller.

 “Company Patents” is defined in Section 3.6.1. 

“Company” is defined in the introduction to this Agreement. 

“Confidential Information” is defined in Section 6.9.1. 

“Confidentiality Agreement” is defined in Section 6.9.2. 

“Contemplated Transactions” means, collectively, the transactions contemplated by this Agreement, including (a) the
sale and purchase of the Shares and (b) the execution, delivery and performance of the Ancillary Agreements. 

“Contractual Obligation” means, with respect to any Person, any contract, agreement, deed, mortgage, lease, license,
commitment, promise, undertaking, arrangement or understanding, whether written or oral, or other document or instrument (including any document or instrument evidencing or otherwise relating to any Debt) to which or by which such Person is a party
or otherwise subject or bound or to which or by which any property, business, operation or right of such Person is subject or bound. 

  
 -2-

 “Debt” means, with respect to any Person, all obligations (including all
obligations in respect of principal, accrued interest, penalties, fees and premiums) of such Person (a) for borrowed money (including overdraft facilities), (b) evidenced by notes, bonds, debentures or similar Contractual Obligations,
(c) for the deferred purchase price of property, goods or services (other than trade payables or accruals incurred in the Ordinary Course of Business), (d) under capital leases (in accordance with GAAP), (e) in respect of letters of
credit and bankers’ acceptances, (f) for Contractual Obligations relating to interest rate protection, swap agreements and collar agreements and (g) in the nature of Guarantees of the obligations described in clauses (a) through
(f) of this definition of any other Person. 
 “Diagnostic Product” means any Product under development
for, or approved for, use as a diagnostic by a Governmental Authority to diagnose a disease. 
 “Disclosing
Party” is defined in Section 6.9.1. 
 “Disclosure Schedule” is defined in Section 3.

 “Encumbrance” means any charge, claim, community or other marital property interest, condition, equitable
interest, lien, license, option, pledge, security interest, mortgage, right of way, easement, encroachment, servitude, right of first offer or first refusal, buy/sell agreement and any other restriction or covenant with respect to, or condition
governing the use, construction, voting (in the case of any security or equity interest), transfer, receipt of income or exercise of any other attribute of ownership. 
 “Enforceable” means, with respect to any Contractual Obligation stated to be Enforceable by or against any Person, that such Contractual Obligation is a legal, valid and binding
obligation of such Person enforceable by or against such Person in accordance with its terms, except to the extent that enforcement of the rights and remedies created thereby is subject to bankruptcy, insolvency, reorganization, moratorium and other
similar laws of general application affecting the rights and remedies of creditors and to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law). 

“Execution Date” is defined in the introduction to this Agreement. 

“FDA” means the U.S. Food and Drug Administration of the United States Department of Health and Human Services or any
successor agency thereof. 
 “FDCA” is defined in Section 3.7.1. 

“Final Termination Date” is defined in Section 9.1.2. 

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

  
 -3-

 “Government Order” means any order, writ, judgment, injunction, decree,
stipulation, ruling, determination or award entered by or with any Governmental Authority. 
 “Governmental
Authority” means any United States federal, state or local or any foreign government, or political subdivision thereof, or any multinational organization or authority or any authority, agency or commission, in each case, entitled to
exercise any administrative, executive, judicial, legislative, criminal, police, regulatory or taxing authority or power, any court or tribunal (or any department, bureau or division thereof), or any arbitrator or arbitral body. 

“Guarantee” means, with respect to any Person, (a) any guarantee of the payment or performance of, or any
contingent obligation in respect of, any Debt or other Liability of any other Person, (b) any other arrangement whereby credit is extended to any obligor (other than such Person) on the basis of any promise or undertaking of such Person
(i) to pay the Debt or other Liability of such obligor, (ii) to purchase any obligation owed by such obligor, (iii) to purchase or lease assets under circumstances that are designed to enable such obligor to discharge one or more of
its obligations or (iv) to maintain the capital, working capital, solvency or general financial condition of such obligor and (c) any Liability as a general partner of a partnership or as a venturer in a joint venture in respect of Debt or
other obligations of such partnership or venture. 
 “Indemnified Party” means, with respect to any Indemnity
Claim, the Party asserting such claim under Section 10.1 or 10.2, as the case may be. 
 “Indemnifying
Party” means, with respect to any Indemnity Claim, the Buyer or the Seller under Section 10.1 or 10.2, as the case may be, against whom such claim is asserted. 
 “Indemnity Claim” means a claim for indemnity under Section 10.1 or 10.2, as the case may be. 
 “Inventory Transfer Agreement” means the inventory transfer agreement to be entered into by the Seller and Buyer on the Closing Date, in the form set forth on Exhibit 1.A

 “Knowledge” is defined in the definition of Seller’s Knowledge. 

“Legal Requirement” means any United States federal, state or local or foreign law, statute, standard, ordinance, code,
rule, act, regulation, resolution or promulgation, or any Government Order, or any license, franchise, permit or similar right granted under any of the foregoing, or any similar provision having the force or effect of law. 

“Liability” means any liability, judgment, assessment, penalty, indebtedness, obligation, expense, claim, loss, damage,
deficiency, Guarantee or endorsement of or by any Person, absolute or contingent, accrued or unaccrued, due or to become due, liquidated or unliquidated. 
 “Licensed Patents” is defined in Section 3.6.1. 

“License Negotiation Period” is defined in Section 6.5.1 

“Losses” is defined in Section 10.1.1. 

  
 -4-

 “Manufacturing Product” means any Product used solely for the manufacture
of another product. 
 “Marketing Approval” means, with respect to a Product in any regulatory jurisdiction and
for any indication, the approval of all Regulatory Authorities required to authorize the marketing of such Product in such jurisdiction for such indication. 
 “Material Adverse Effect” means, with respect to any Person, any development in, change in, or effect on, the assets, liabilities, or condition (financial or otherwise) of such
Person which, when considered either individually or in the aggregate, together with all other adverse developments, changes or effects with respect to which such phrase is used in this Agreement, is, or is reasonably likely to be, materially
adverse to the assets, liabilities, or condition (financial or otherwise) of such Person, taken as a whole. 

“Material Contracts” is defined in Section 3.8. 

“Milestone Events” is defined in Section 2.5.1. 

“Milestone Payments” is defined in Section 2.5.1. 

“Milestone Product” means any pharmaceutical product or drug product candidate that has been discovered
prior to the Closing Date and that is subject to the jurisdiction of the FDA, the FDCA and the regulations promulgated thereunder or any other Governmental Authority, the rights to which are owned, developed or tested by, licensed to, or is
otherwise the property of, the Company as of the Closing Date, including the compound identified by the Company or its licensees as IDN-6556 (Emricasan), and any other pharmaceutical product developed or brought to market by the Company, the Buyer
or any Permitted Product Transferee that has been discovered prior to the Closing Date and is encompassed within the scope of the Patents set forth on Schedule 3.6, but excluding the Abbott Product and any Diagnostic Product or Manufacturing
Product. 
 “NDA” means a New Drug Application filed in the United States with the FDA in
accordance with the FDCA with respect to a pharmaceutical product or any analogous application or filing with any Regulatory Authority outside of the United States (including any supra-national agency such as the European Union) for the purpose of
obtaining Regulatory Approval to market and sell a pharmaceutical product in such jurisdiction. 
 “Ordinary Course of
Business” means an action taken by any Person in the ordinary course of such Person’s business which is consistent with the recent past customs and practices of such Person (including such past practice with respect to
(a) quantity, amount, magnitude and frequency, standard employment and payroll policies and past practice with respect to management of working capital, and (b) interactions with Regulatory Authorities) which is taken in the ordinary
course of the normal day-to-day operations of such Person. 
 “Organizational Documents” means, with respect to
any Person (other than an individual), (a) the certificate or articles of incorporation or organization and any joint venture, limited liability company, operating or partnership agreement and other similar documents adopted or filed in
connection with the creation, formation or organization of such Person and (b) all by-laws of such Person, in each case, as amended or supplemented. 

  
 -5-

 “Owned Patents” is defined in Section 3.6.1. 

“Party” and “Parties” is defined in the introduction to this Agreement. 

“Patents” means all patents and applications in any country or region (including PCT filings and provisional
applications), together with any and all patents that have issued or in the future issue therefrom, including any and all divisional, continuations, continuations-in-part, re-examination certificates, substitutions, registrations, confirmations,
extensions, supplementary protection certificates, confirmation patents, patents of additions, certificates of invention, utility model and design patents, renewals, reissues of or relating to any of the aforesaid patents and/or patent applications,
as applicable. 
 “Permits” is defined in Section 3.7.5. 

“Permitted Encumbrance” means (a) statutory liens for Taxes, special assessments or other governmental charges, in
each case, not yet due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings and for which appropriate reserves have been established in accordance with GAAP, (b) mechanics’,
materialmen’s, carriers’, workers’, repairers’ and similar statutory liens arising or incurred in the Ordinary Course of Business which liens have not had and are not reasonably likely to have a Material Adverse Effect on the
Person subject to such liens, (c) zoning, entitlement, building and other land use regulations imposed by Governmental Authorities having jurisdiction over any real property which are not violated in any material respect by the current use and
operation of the real property, (d) deposits or pledges made in connection with, or to secure payment of, worker’s compensation, unemployment insurance, old age pension programs mandated under applicable Legal Requirements or other social
security, (e) covenants, conditions, restrictions, easements, encumbrances and other similar matters of record affecting title to but not adversely affecting current occupancy or use of the real property in any material respect and
(f) restrictions on the transfer of securities arising under federal and state securities Legal Requirements. 

“Permitted Product Transferee” is defined in Section 2.5.3. 

“Person” means any individual or corporation, association, partnership, limited liability company, joint venture, joint
stock or other company, business trust, trust, organization, Governmental Authority or other entity of any kind. 

“PHSA” is defined in Section 3.7.1. 
 “Post-Closing Tax Period” means any tax period other than the Pre-Closing Tax Period. 
 “Pre-Closing Tax Period” means (i) all Taxable periods ending on or before the Closing Date, and (ii) the portion of the Taxable period ending on the Closing Date for any
Taxable period that includes, but does not end, on the Closing Date. 

  
 -6-

 “Product” means any pharmaceutical product or product candidate that is
subject to the jurisdiction of the FDA, the FDCA and the regulations promulgated thereunder or any other Governmental Authority, the rights to which are owned, developed or tested by, licensed to, or is otherwise the property of, the Company as of
the Closing Date and that is encompassed within the scope of the Patents set forth on Schedule 3.6, including the compound identified by the Company or its licensees as IDN-6556 (Emricasan), but excluding the Abbott Product. 

“Product Transfer” is defined in Section 2.5.3. 

“Promissory Note” is defined in Section 2.2. 

“Purchase Price” is defined in Section 2.2. 

“Receiving Party” is defined in Section 6.9.1. 

“Regulatory Authorities” means the FDA and comparable regulatory or Governmental Authorities in the world. 

“Representative” means, with respect to any Person, any director, officer, employee, agent, consultant, advisor, or
other representative of such Person, including legal counsel, accountants, and financial advisors. 
 “Securities
Act” means the Securities Act of 1933, as amended. 
 “Seller Indemnified Person” is defined in
Section 10.2.1. 
 “Seller’s Knowledge” or “Knowledge” means the actual knowledge of
Gary Burgess, Roger Kerry, Jim Mayne, Andrew Muratore and Lisa Samuels. 
 “Seller” is defined in the
introduction to this Agreement. 
 “Shares” is defined in the introduction to this Agreement. 

“Straddle Period” is defined in Section 11.2. 

“Tax Matter” is defined in Section 11.5. 
 “Tax Return” means any return, declaration, report, claim for refund or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any
amendment thereof. 
 “Tax” or “Taxes” means (a) any and all federal, state, local, or
foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security (or similar, including
FICA), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind or any charge of any kind in the nature of (or similar to) taxes
whatsoever, including any interest, penalty, or addition thereto and (b) any Liability for the payment of any amounts of the 

  
 -7-

 
type described in clause (a) of this definition as a result of being a member of an affiliated, consolidated, combined or unitary group for any period, as a result of any tax sharing or tax
allocation agreement, arrangement or understanding, or as a result of being liable for another Person’s taxes as a transferee or successor, by contract or otherwise. 
 “Termination Date” is defined in Section 9. 
 “Third
Party Claim” is defined in Section 10.4.1. 
 “Third Party Confidential Information” is defined
in Section 6.9.3. 
 “Threshold Amount” is defined in Section 10.1.2. 

“Transfer Taxes” is defined in Section 11.4. 

“Treasury Regulations” means the regulations promulgated under the Code. 

“Upfront Payment” is defined in Section 2.2. 
 2. Purchase and Sale of Shares. 
 2.1. Purchase and Sale of Shares.
At the Closing, subject to the terms and conditions of this Agreement, the Seller will sell, transfer and deliver to the Buyer, and the Buyer will purchase from the Seller, all of the Seller’s right, title and interest in and to all of the
Shares. 
 2.2. Purchase Price. The aggregate consideration for the Shares will be two hundred and fifty thousand dollars
($250,000) (the “Upfront Payment”) together with a promissory note in favor of the Seller in the form attached hereto as Exhibit 2.2 in the principal amount of one million dollars ($1,000,000) (the “Promissory
Note”) (collectively, the “Purchase Price”). 
 2.3. The Closing. The purchase and sale of the
Shares (the “Closing”) will take place at the offices of Ropes & Gray LLP at One International Place, Boston, Massachusetts 02110 on July 29, 2010. If on or prior to such date the conditions set forth in Sections 7 and
8 have not been satisfied or waived by the Buyer or the Seller, respectively, subject to any rights of termination as set forth in Section 9, the Closing will take place on such other date, not later than the fifth Business Day following the
satisfaction of such conditions, as the Buyer and the Seller may agree in writing. Except as otherwise provided in Section 9, the failure to consummate the purchase and sale of the Shares provided for in this Agreement on the date and time and
at the place specified herein will not relieve any Party of any obligation under this Agreement. 
 2.4. Closing
Deliveries. The Parties will take the actions set forth in this Section 2.4 at the Closing, in each case, subject to satisfaction or waiver of the conditions set forth in Sections 7 and 8. 

  
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 2.4.1 The Buyer will deliver to the Seller the Upfront Payment (by wire transfer of
immediately available federal funds to the account furnished by the Seller) against delivery to the Buyer of certificates evidencing the Shares duly endorsed (or accompanied by duly executed stock transfer powers). The Seller will furnish its
account information to the Buyer in writing not fewer than two Business Days prior to the scheduled Closing Date. 
 2.4.2 The
Parties will execute and deliver the Ancillary Agreements. 
 2.5. Milestone Payments. 

2.5.1 In accordance with the terms and conditions of this Agreement, the Buyer will pay to the Seller, within 15 days after achievement of
each of the following events listed under the heading “Milestone” in the table in this Section 2.5 (collectively, the “Milestone Events”), the following milestone payments (the “Milestone Payments”),
subject to Section 2.5.2: 
  

					
	 Milestone
	  	Amount	 
	
[***]
	  	$	[	***] 
	 [***]
	  	$	[	***] 
	 [***]
	  	$	[	***] 
	 [***]
	  	$	[	***] 
	 [***]
	  	$	[	***] 
	 [***]
	  	$	[	***] 

 2.5.2 Each Milestone Payment is only payable the first time such Milestone Event is achieved. For the
avoidance of doubt, the maximum aggregate amount of Milestone Payments payable under this Agreement is $18,000,000. 
 2.5.3
Subject to Section 12.2, if, after the Closing Date, the Buyer or any of its permitted successors or assigns, sells, licenses, or otherwise transfers, or causes the Company to sell, license, or otherwise transfer, any of its or the
Company’s rights, title and interest in and to any assets, intellectual property, or other properties used in or necessary to the development, commercialization, sale or marketing of any Milestone Product (a “Product
Transfer”), such Product Transfer will be made only to a Person that agrees to unconditionally assume all of the Buyer’s obligations under this Agreement pertaining to the Product under development, commercialization, sale or marketing
by such Person, including Sections 2.5, 6.9, 6.10, 6.13, 10.2.1(d), 10.8, 12, and the definitions in Section 1 applicable to any of the foregoing (a “Permitted Product Transferee”). Any such Product Transfer to a Permitted
Product Transferee will not release the Buyer from its obligations under this Section 2.5. 
  

	*** 
	 Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to
the omitted portions. 

  
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 2.5.4 Any past due amount of any Milestone Payment payable by Buyer will bear interest
compounded monthly at a per annum rate of ten percent (calculated at a rate per annum based upon the actual number of days elapsed over a year of 360 days) from and after the date such Milestone Payment was due until such amount is paid in full.

 2.6. Withholding Taxes. Upon no less than five (5) Business Days written notice to the Seller prior to the making
of any payment, including the Purchase Price, under this Agreement, Buyer will be entitled to deduct and withhold from the consideration otherwise payable pursuant to this Agreement such amounts as the Buyer is required to deduct and withhold under
the Code, or any Tax law, with respect to the making of such payment. Such written notice will describe in reasonable detail the amount and reason(s) for such withholding. To the extent that any amounts are so withheld, such withheld amounts will be
treated for all purposes of this Agreement as having been paid to the Seller. 
 3. Representations and Warranties Regarding the Company.
Except as set forth in the disclosure schedule (with specific reference to the particular Section or subsection of this Agreement to which the information set forth in such disclosure schedule relates; provided, that any information set forth in one
section of the disclosure schedule will be deemed to apply to each other section or subsection of the disclosure schedule and of this Section 3 to which its relevance is readily apparent on its face) delivered by the Seller to the Buyer on or
prior to the Execution Date and attached hereto as Schedule 3 (the “Disclosure Schedule”), the Seller represents and warrants to the Buyer as of the date of this Agreement, as follows: 

3.1. Organization, Qualification; Subsidiaries. The Company is (a) duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization with full corporate power and authority to conduct its business as now being conducted, to own and use the properties, assets and products (including the Products) that it purports to own or use and
to perform all of its obligations under this Agreement and the Ancillary Agreements; and (b) is duly qualified to do business as a foreign corporation and in good standing in each jurisdiction where such qualification is required to own or use
its property and products (including the Products) or otherwise conduct its business, except where the failure to so qualify has not had, and is not reasonably likely to have, a Material Adverse Effect on the Company. The Company’s
Organizational Documents are in full force and effect, and the Company has made available to the Buyer complete and correct copies of the Company’s Organizational Documents as in effect on the Execution Date and minute books since the Company
Acquisition Date. The Company is not in violation of any of the provisions of its Organizational Documents. As of the Closing Date, the Company will have no direct or indirect subsidiaries. 

3.2. Capital Structure. The entire authorized capital stock of the Company consists of 1,000 Shares of common stock, par value
$0.01 per share, of which 1,000 Shares are issued and outstanding and no Shares are held in treasury. All of the issued and outstanding Shares have been duly authorized and are validly issued, fully paid, and nonassessable, and are owned
beneficially and held of record by the Seller, free and clear of any Encumbrance. There are no outstanding or authorized options, warrants, purchase rights, subscription 

  
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rights, conversion rights, exchange rights, or other Contractual Obligations or commitments that could require the Company to issue, sell or otherwise cause to become outstanding any of its
capital stock or other securities of the Company. There are no outstanding or authorized stock appreciation, phantom stock, profit participation or other similar rights with respect to the Company. There are no voting trusts, proxies or other
agreements or understandings with respect to the voting of the capital stock of the Company. Since the Company Acquisition Date, the Company has not repurchased, redeemed or otherwise reacquired any shares of its capital stock or other securities.

 3.3. Noncontravention. The consummation of the Contemplated Transactions will not directly or indirectly (with or
without notice or lapse of time) (a) contravene, conflict with or violate or give any Governmental Authority or other Person the legal right to challenge the Contemplated Transactions or to exercise any remedy or obtain any relief under, any
provision of any Legal Requirement or Government Order applicable to the Company or any of the assets or products (including the Products) owned or used by the Company, (b) contravene, conflict with or result in a breach or violation of, or
default under or give any Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify, any Material Contract, (c) require any action by (including any
authorization, consent or approval) or in respect of (including notice to), any Person under any Material Contract, (d) result in the creation or imposition of an Encumbrance upon, or the forfeiture of, any asset of the Company,
(e) contravene, conflict with, or result in a breach or violation of, or default under, the Company’s Organizational Documents or any resolution adopted by the board of directors, committee of the board of directors or stockholders of the
Company, except, in the cases of clauses (a) through (d) above, as would not, either individually or in the aggregate, be reasonably likely to have a Material Adverse Effect on the Company. The Seller is not and the Company is not, and
will not be required to give any notice to, or obtain any consent from any Governmental Authority or other Person in connection with the consummation or performance of any of the Contemplated Transactions or any Contractual Obligations. 

3.4. Title to, and Sufficiency of, Assets. The Company has good title to, or a valid leasehold interest in, all properties and
assets owned or leased by the Company, in each case free of all Encumbrances except (a) Permitted Encumbrances, and (b) assets or properties disposed of in the Ordinary Course of Business not in violation of Section 6.2 between the
Execution Date and the Closing Date. Except for the properties, assets or rights that will be assigned or transferred by the Seller to the Company on or prior to the Closing in accordance with Section 6.2.1, the properties, assets and rights
owned or leased by the Company include all properties, assets and rights currently used in the development of the Products. In the event the prior sentence of this Section 3.4 is breached because the Seller has in good faith failed to identify
and transfer properties, assets or rights, such breach will be deemed cured if the Seller promptly transfers such properties, assets or rights at no additional cost to the Company or the Buyer, as applicable. 

  
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 3.5. Litigation; Compliance with Law. 

3.5.1 There is no material suit, action, claim or proceeding pending or, to the Seller’s Knowledge, threatened against the Company,
nor is there any judgment, decree, injunction, ruling or order of any Governmental Authority or arbitrator outstanding against, or, to the Seller’s Knowledge, investigation by any Governmental Authority or Regulatory Authority involving, the
Company or that challenges, or that may have the effect of preventing, delaying, making illegal, or otherwise interfering with, consummation of or performance under any of the Contemplated Transactions. 

3.5.2 The Company has, to the Seller’s Knowledge, not received at any time since the Company Acquisition Date any notice or other
written communication from any Governmental Authority, Regulatory Authority or any other Person regarding any actual or alleged violation of, or failure to comply with, any term or requirement of any Government Order to which the Company, or any of
the assets or products (including the Products) owned or used by the Company, is or has been subject. 
 3.5.3 To the
Seller’s Knowledge, the Company is, and since the Company Acquisition Date, has been, in compliance with all applicable Legal Requirements, except where the failure to do so would not, either individually or in the aggregate, have a Material
Adverse Effect on the Company. 
 3.6. Intellectual Property. 

3.6.1 Company Patents; Title. Section 3.6.1 of the Disclosure Schedule lists all of the Patents owned by the Company or in
which the Company has any ownership rights and/or has licensed as of the Execution Date, setting forth in each case the jurisdictions in which the Patents have been issued, and patent applications have been filed and identifying which Patents are
owned by the Company (“Owned Patents”) and which are licensed to the Company (“Licensed Patents”) (collectively, the “Company Patents”). The Company owns all right, title and interest in and to the
Owned Patents, free and clear of any Contractual Obligation or Encumbrance. The Company has the right to use the Licensed Patents in accordance with the terms of the applicable license and such license is in full force and effect, and the Company is
not in breach or default thereunder, except as would not, either individually or in the aggregate, have a Material Adverse Effect on the Company. 
 3.6.2 Company Trademarks. The Company does not own any trademarks. 
 3.6.3
Enforceability. Since the Company Acquisition Date, to the Seller’s Knowledge, neither the Seller nor the Company has entered into any Contractual Obligation with any Person not to assert any charge of infringement of the Company Patents
against such Person. 
 3.6.4 No Infringement; No Challenge. Since the Company Acquisition Date, to the Seller’s
Knowledge, neither the Seller nor the Company has received written notice or any written “offer to license” from any Person claiming an ownership interest in the Company Patents, nor has the Seller or the Company received any written
notice 

  
 -12-

 
asserting that the Seller or the Company infringes or misappropriates any intellectual property of any Person or constitutes unfair competition or trade practices under any Contractual Obligation
or the applicable Legal Requirements of any jurisdiction. There are no pending or, to the Seller’s Knowledge, threatened claims (including interferences, oppositions and similar proceedings) challenging the validity or enforceability of the
Company Patents. 
 3.6.5 No Infringement by Third Parties. To the Seller’s Knowledge, no Person is infringing or
misappropriating the Company Patents. Since the Company Acquisition Date, neither the Seller nor the Company nor any of their respective Affiliates has become aware of, or received from any third party any written notification of, alleged
infringement, misappropriation or other violation of any intellectual property of the Company Patents. 
 3.7. Regulatory
Compliance. 
 3.7.1 All applications for Marketing Approval with respect to any Product are inactive or have been withdrawn
by the Company. All compliance and other requirements with respect to prior applications for Marketing Approval for the Products have been satisfied. 
 3.7.2 All human clinical trials conducted by or on behalf of the Company since the Company Acquisition Date have been conducted in material compliance with the applicable requirements of the Federal Food,
Drug and Cosmetic Act (the “FDCA”), the Public Health Service Act (the “PHSA”) and the regulations promulgated thereunder, including the requirements of Good Clinical Practice, Informed Consent or Institutional
Review Boards (as those terms are defined by the FDA), all applicable requirements relating to protection of human subjects contained in 21 CFR Parts 50, 54 and 56, and all applicable requirements contained in 21 CFR Part 312. 

3.7.3 All Product used in connection with any human clinical trials conducted by or on behalf of the Company since the Company Acquisition
Date that are subject to the jurisdiction of the FDA were manufactured, packaged, labeled, stored, tested and distributed in compliance in all material respects with all applicable requirements under the FDCA, the PHSA, the regulations promulgated
thereunder, and all comparable state and foreign Legal Requirements. 
 3.7.4 There are no proceedings pending with respect to a
violation by the Company of the FDCA, the PHSA, the regulations promulgated thereunder, or any other legislation or regulation promulgated by any other U.S. Governmental Authority, or any similar state or foreign Legal Requirements. 

3.7.5 The Company has obtained each federal, state, county, local or foreign governmental consent, license, permit, grant or other
authorization of a Governmental Authority that is required for the operation of the business of the Company or the holding of any interest in its properties (collectively, the “Permits”),

  
 -13-

 
and all of such Permits are in full force and effect, except where the failure to obtain or have any such Permit would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect on the Company; and no proceeding is pending or, to the Seller’s Knowledge, threatened to revoke, suspend, cancel, rescind, withdraw, terminate or adversely modify any such Permit. 

3.8. Material Contracts. The Company is not a party to or bound by any Contractual Obligation that, as of the date hereof,
(1) involves annual expenditures in excess of Fifty Thousand Dollars ($50,000) and is not cancelable within one year, (2) imposes any non-compete or exclusivity provisions with respect to any line of business or geographic area upon the
Company, or any of the Company’s current or future Affiliates, or that restricts the conduct of any line of business by the Company or any of the Company’s current or future Affiliates or any geographic area in which the Company or any of
the Company’s current Affiliates conduct business, in each case in any material respect, (3) creates any Encumbrance with respect to any asset of the Company, (4) involves or incorporates any Guaranty, any pledge, any performance or
completion bond, any indemnity or any surety arrangement, (5) creates any collaboration or joint venture or any sharing of technology, revenues, profits, losses, costs or liabilities, including contracts involving investments by the Company in,
or loans by the Company to, any other person, (6) relates to indebtedness for borrowed money, (7) relates to the acquisition or disposition of material assets of the Company or other person, (8) constitutes either (a) a license
of (or covenant not to sue related to) or a grant of any right or interest in intellectual property by the Company to a third person, or (b) a license of (or covenant not to sue related to) or a grant of any right or interest in intellectual
property of a third person to the Company, or (9) relates to any agreement, arrangement or understanding between the Company and the Seller or another Affiliate of the Seller, any provision of which will survive the Closing (collectively, the
agreements listed in Section 3.8 of the Disclosure Schedule being the “Material Contracts”), provided, however, in no event will any agreement of the type or nature commonly referred to in the biotechnology or pharmaceutical
industries as nondisclosure agreement, confidential disclosure agreement, confidentiality agreement, material transfer agreement, consulting agreement, services agreement, clinical research agreement, clinical study agreement or clinical trial site
agreement be considered a Material Contract for purposes of this Agreement. True and correct copies of each of the Material Contracts have been made available to the Buyer. To the Seller’s Knowledge, Seller has made available to Buyer all
material annual reports, milestone notices and diligence reports received by the Seller or the Company under a Material Contract. Each Material Contract is (i) a legally binding arrangement of the Company and (ii) except for the Material
Contracts listed as numbers 26 through 55 in Section 3.8 of the Disclosure Schedule, is in full force and effect, except where the failure to be in full force and effect would not, either individually or in the aggregate, be reasonably likely
to have a Material Adverse Effect on the Company. The Company is not in material breach or default under any Material Contract, except which default or breach would not, either individually or in the aggregate, be reasonably likely to have a
Material Adverse Effect on the Company. The Company, or the Seller on behalf of the Company, has paid all amounts which have become due to any licensor or collaborator under any Material Contract which payment has accrued after the Company
Acquisition Date and on or prior to the Closing Date. To the Seller’s Knowledge, no other party to a 

  
 -14-

 
Material Contract is (with or without the lapse of time or the giving of notice, or both) in material breach or default thereunder. To the Seller’s Knowledge, since the Company Acquisition
Date, the Company has not received any written notice (a) that it has breached or defaulted under any Material Contract or (b) of the intention of any party to terminate any Material Contract. 

3.9. Employees and Consultants; Employee Agreements and Plans. The Company has no employees (including part-time employees and
temporary employees), leased employees, independent contractors or consultants. The Company is not a party to or bound by any currently effective employment contract, consulting agreement, advisory board agreement, deferred compensation arrangement,
bonus plan, incentive plan, profit sharing plan, retirement agreement or other employee or consultant compensation plan or agreement, and does not have any financial obligations to any Person with respect to any prior employment contract, consulting
agreement, advisory board agreement, deferred compensation arrangement, bonus plan, incentive plan, profit sharing plan, retirement agreement or other employee or consultant compensation plan or agreement. 

3.10. Real Property. The Company does not own any real property or have any leasehold or other interest in real property (including
any occupancy obligations) and is not bound by any lease for real property or occupancy obligation, and does not have any financial obligations to any Person with respect thereto, including the Seller. 

3.11. Taxes. 
 3.11.1 Since the Company Acquisition Date, the Company has duly and timely filed or caused to be timely filed with the appropriate Governmental Authority all material Tax Returns required to be filed by,
or with respect to, it. All such Tax Returns are true, complete and accurate in all material respects. The Company is not currently the beneficiary of any extension of time within which to file any Tax Return. Since the Company Acquisition Date, no
written claim has ever been received from a Tax authority in a jurisdiction where the Company does not file a Tax Return that the Company is or may be subject to taxation by that jurisdiction in respect of Taxes that would be covered by or the
subject of such Tax Return. Since the Company Acquisition Date, all material Taxes due and owing by the Company (whether or not shown on any Tax Returns) have been timely paid. 
 3.11.2 The unpaid Taxes of the Company did not, as of the date of the Company Balance Sheet, exceed the reserve for Tax liability (excluding any reserve for deferred Taxes established to reflect timing
differences between book and Tax income) set forth on the face of the Company Balance Sheet (rather than in any notes thereto). 

3.11.3 Since the Company Acquisition Date, no written deficiencies for Taxes with respect to the Company have been claimed, proposed or
assessed by any Tax authority. There are no pending or threatened audits, assessments or other actions for or relating to any liability in respect of Taxes of the Company. There are no matters under discussion with any Tax authority, or Known to the
Company or Seller, with 

  
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respect to Taxes that are likely to result in any material additional liability for Taxes with respect to the Company. Since the Company Acquisition Date, the Company has not waived any statute
of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency, nor has any request been made in writing for any such extension or waiver. Since the Company Acquisition Date, no power of attorney
(other than powers of attorney authorizing employees of the Company to act on behalf of the Company, respectively) with respect to any Taxes has been executed or filed with any Tax authority. 

3.11.4 There are no Encumbrances for Taxes upon any property or asset of the Company (other than Permitted Encumbrances). 

3.11.5 Since the Company Acquisition Date, the Company has not been a party to a transaction that is or is substantially similar to a
“reportable transaction,” as such term is defined in Treasury Regulations Section 1.6011-4(b)(1), or any other transaction requiring disclosure under analogous provisions of state, local or foreign Tax law. 

3.11.6 Other than with respect to liability under Treasury Regulations Section 1.1502-6 or any analogous provision of state, local or
foreign Tax law, the Company has no liability for the Taxes of any other Person (other than Taxes of the Company). 
 3.11.7
Since the Company Acquisition Date, the Company has withheld and paid all Taxes required to have been withheld and paid, if any, in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholders of the Company
or other Person. 
 3.11.8 The Company is not a party to or bound by any closing agreement, offer in compromise, or other
agreement with any Tax authority that could affect Taxes of the Company. 
 3.11.9 Section 3.11.9 of the Disclosure Schedule
sets forth all foreign jurisdictions in which the Company is subject to Tax, is engaged in business or has a permanent establishment. 
 3.11.10 Since the Company Acquisition Date, the Company (i) has never agreed, nor is required, to make any adjustment under Code Section 481(a) by reason of a change in accounting method or
otherwise; (ii) has never made an election, and is not required, to treat any of its assets as owned by another Person pursuant to the provisions of former Code Section 168(f) or as tax-exempt bond financed property or tax-exempt use
property within the meaning of Code Section 168; or (iii) has never made any of the foregoing elections, and is not required to apply any of the foregoing rules, under any comparable state or local Tax provision. 

  
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 3.11.11 Since the Company Acquisition Date, the Company (i) has never been a
stockholder of a “controlled foreign corporation” as defined in Code Section 957 (or any similar provision of state, local or foreign law), (ii) has never been a stockholder of a “passive foreign investment company”
within the meaning of Code Section 1297; and (iii) has never engaged in a trade or business, had a permanent establishment (within the meaning of an applicable Tax treaty) or has otherwise become subject to Tax jurisdiction in a country
other than the country of its formation. 
 3.12. Asset and Liability Statement. No audited financial statements for the
Company have been prepared by the Seller or the Company. The Seller has delivered to the Buyer a true, correct and complete listing of all assets and liabilities of the Company dated as of the Execution Date (the “Asset and Liability
Statement”). To Seller’s Knowledge, the Asset and Liability Statement lists all assets and liabilities of the Company of a nature and type that would be required to be disclosed on the face of the Company’s balance sheet by GAAP.

 3.13. No Brokers. The Company has no Liability of any kind to any broker, finder or agent with respect to the
Contemplated Transactions. 
 3.14. No Other Representations or Warranties. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES
EXPRESSLY SET FORTH IN THIS SECTION 3 AND SECTION 4 AND THE SELLER COMPLIANCE CERTIFICATE, NONE OF THE COMPANY, THE SELLER OR ANY OTHER PERSON MAKES ANY OTHER EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY ON BEHALF OF THE COMPANY OR THE SELLER.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT AS SET FORTH IN THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS SECTION 3 AND SECTION 4 AND THE SELLER COMPLIANCE CERTIFICATE, THE SELLER AND THE COMPANY MAKE NO REPRESENTATION
OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, REGARDING THE ASSETS, PROPERTIES, BUSINESS OR BUSINESS PROSPECTS OF THE COMPANY, INCLUDING ANY WARRANTY AS TO MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NONINFRINGEMENT. SUBJECT TO THE
REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS SECTION 3 AND SECTION 4 AND THE SELLER COMPLIANCE CERTIFICATE, THE BUYER HEREBY ACKNOWLEDGES AND AGREES THAT THE BUYER IS PURCHASING THE SHARES AND ACQUIRING THE COMPANY ON AN “AS-IS,
WHERE-IS” BASIS, IN RELIANCE ON ONLY THOSE REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE SELLER EXPRESSLY SET FORTH IN THIS SECTION 3 AND SECTION 4 AND THE SELLER COMPLIANCE CERTIFICATE. 

4. Representations and Warranties of the Seller. The Seller hereby represents and warrants to the Buyer that as of the date of this Agreement:

 4.1. Organization. The Seller is (a) duly organized, validly existing and in good standing under the laws of the
State of Delaware with full corporate power and authority to perform its obligations under this Agreement and the Ancillary Agreements, and (b) is duly qualified to do business as a foreign corporation and in good standing in each jurisdiction
where such qualification is required to own or use its property or otherwise conduct its business, except where the failure to so qualify has not had, and is not reasonably likely to have, a Material Adverse Effect on the Seller. 

  
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 4.2. Power and Authorization. The execution, delivery and performance by the Seller
of this Agreement and each Ancillary Agreement to which it is (or will be) a party and the consummation of the Contemplated Transactions are within the power and authority of the Seller and have been duly authorized by all necessary action on the
part of the Seller. This Agreement and each Ancillary Agreement to which the Seller is (or will be) a party (a) has been (or, in the case of Ancillary Agreements to be entered into at or prior to the Closing, will be) duly authorized by all
necessary action on the part of the Seller and duly executed and delivered by the Seller, and (b) is (or in the case of Ancillary Agreements to be entered into at or prior to the Closing, will be) a legal, valid and binding obligation of the
Seller, Enforceable against the Seller in accordance with its terms. The Seller has the full corporate power and authority to own and use its assets and carry on its business as presently conducted. 

4.3. Authorization of Governmental Authorities. No action by (including any authorization, consent or approval), or in respect of,
or filing with, any Governmental Authority is required for, or in connection with, the valid and lawful (a) authorization, execution, delivery and performance by the Seller of this Agreement and each Ancillary Agreement to which it is (or will
be) a party or (b) the consummation of the Contemplated Transactions by the Seller, except any such action or filing with any Governmental Authority which if not obtained or made would not have a Material Adverse Effect on the Seller or
adversely affect the ability of the Seller to consummate the Contemplated Transactions. 
 4.4. Noncontravention. Neither
the execution, delivery and performance by the Seller of this Agreement or any Ancillary Agreement to which the Seller is (or will be) a party, nor the consummation of the Contemplated Transactions will directly or indirectly (with or without notice
or lapse of time) (a) contravene, conflict with, or violate or give any Governmental Authority or other Person the right to challenge the Contemplated Transactions or to exercise any remedy or obtain any relief under, any provision of any Legal
Requirement or Government Order applicable to the Seller or any of the assets (including the Products) owned or used by the Seller, (b) contravene, conflict with or result in a breach or violation of, or default under, or give any Person the
right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of or to cancel, terminate or modify, any Contractual Obligation to which the Seller is a party, (c) require any action by (including any
authorization, consent or approval) or in respect of (including notice to), any Person under any Contractual Obligation to which the Seller is a party, (d) result in the creation or imposition of an Encumbrance upon, or the forfeiture of, any
asset of the Seller, or (e) contravene, conflict with, or result in a breach or violation of, or default under, the Seller’s Organizational Documents or any resolution adopted by the board of directors, committee of the board of directors
or stockholders of the Seller, except, in the cases of clauses (a) through (d) above, as would not, either individually or in the aggregate, be reasonably likely to have a Material Adverse Effect on the Seller. 

  
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 4.5. Shares. Immediately prior to the Execution Date, the Seller held of record and
owned beneficially all of the Shares, and as of the Closing Date, the Seller will hold of record and beneficially all of the Shares, in both instances, free and clear of any restrictions on transfer (other than any restrictions under the Securities
Act and state securities Legal Requirements), Taxes (except Taxes payable by the Seller on the disposition thereof), liens, options, warrants, purchase rights, contracts, commitments, equities, claims, Encumbrances and demands. The consent of the
Seller, as the sole stockholder of the Company, is the only approval or consent required of the equityholders of the Company necessary to approve the Contemplated Transactions. The Seller is not a party to any option, warrant, purchase right, or
other Contractual Obligation that could require the Seller to sell, transfer or otherwise dispose of any capital stock of the Company (other than this Agreement and the Contemplated Transactions). No legend or other reference to any purported
Encumbrance (other than a standard Securities Act of 1933 restricted stock legend) appears upon any certificate representing equity securities of the Company. 
 4.6. No Brokers. Other than Liabilities which will be borne by the Seller, the Seller has no Liability of any kind to any broker, finder or agent with respect to the Contemplated Transactions, and
the Seller agrees to satisfy in full all such Liabilities. 
 4.7. Adverse Events. In February 2007, Seller ceased all
clinical testing with respect to the Products and has not administered any Products to any patient or subject since that time. To Seller’s Knowledge, Seller has not received notice of any claim by a patient or subject alleging injury arising
out of an Adverse Event associated with the use of the Products during clinical trials conducted by Seller. 
 5. Representations and
Warranties of the Buyer. The Buyer hereby represents and warrants to the Seller that as of the date of this Agreement: 

5.1. Organization. The Buyer is (a) duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization with full corporate power and authority to perform its obligations under this Agreement and the Ancillary Agreements, and (b) is duly qualified to do business as a foreign corporation and in good standing in each
jurisdiction where such qualification is required to own or use its property or otherwise conduct its business, except where the failure to so qualify has not had, and is not reasonably likely to have, a Material Adverse Effect on the Buyer.

 5.2. Power and Authorization. The execution, delivery and performance by the Buyer of this Agreement and each Ancillary
Agreement to which it is (or will be) a party and the consummation of the Contemplated Transactions are within the power and authority of the Buyer and have been duly authorized by all necessary action on the part of the Buyer. This Agreement and
each Ancillary Agreement to which the Buyer is (or will be) a party (a) has been (or, in the case of Ancillary Agreements to be entered into at or prior to the Closing, will be) duly executed and delivered by the Buyer and (b) is (or in
the case of Ancillary Agreements to be entered into at or prior to the Closing, will be) a legal, valid and binding obligation of the Buyer, Enforceable against the Buyer in accordance with its terms. The Buyer has the full corporate power and
authority necessary to own and use its assets and carry on its business as presently conducted. 

  
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 5.3. Authorization of Governmental Authorities. No action by (including any
authorization, consent or approval), or in respect of, or filing with, any Governmental Authority is required for, or in connection with, the valid and lawful (a) authorization, execution, delivery and performance by the Buyer of this Agreement
and each Ancillary Agreement to which it is (or will be) a party or (b) the consummation of the Contemplated Transactions by the Buyer, except any such action or filing with any Governmental Authority which if not obtained or made would not
have a Material Adverse Effect on the Buyer or adversely affect the ability of the Buyer to consummate the Contemplated Transactions. 
 5.4. Noncontravention. Neither the execution, delivery and performance by the Buyer of this Agreement or any Ancillary Agreement to which it is (or will be) a party, nor the consummation of the
Contemplated Transactions will directly or indirectly (with or without notice or lapse of time) (a) contravene, conflict with or violate or give any Governmental Authority or other Person the legal right to challenge the Contemplated
Transactions or to exercise any remedy or obtain any relief under, any provision of any Legal Requirement or Government Order applicable to the Buyer or any of the assets owned or used by the Buyer, (b) contravene, conflict with, or result in a
breach or violation of, or default under or give any Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify, any Contractual Obligation to which the
Buyer is a party, (c) require any action by (including any authorization, consent or approval) or in respect of (including notice to), any Person under any Contractual Obligation to which the Buyer is a party, (d) result in the creation or
imposition of an Encumbrance upon, or the forfeiture of, any asset of the Buyer, (e) contravene, conflict with, or result in a breach or violation of, or default under, the Buyer’s Organizational Documents or any resolution adopted by the
board of directors, committee of the board of directors or stockholders of the Buyer, except, in the cases of clauses (a) through (d) above as would not, either individually or in the aggregate, be reasonably likely to have a Material
Adverse Effect on the Buyer. 
 5.5. Investment Experience; Investigation; Reliance. 

5.5.1 The Buyer has been advised and understands that the Shares have not been registered under the Securities Act, on the basis that no
distribution or public offering of the Shares is to be effected, except in compliance with applicable securities Legal Requirements or pursuant to an exemption therefrom, and that the Seller is relying in part on the Buyer’s representations set
forth in this Section 5.5. 
 5.5.2 The Buyer is purchasing the Shares for investment purposes, for its own account, not as
a nominee or agent and not with a view to the distribution of any part thereof. The Buyer has no present intention of selling, granting any participation in or otherwise distributing the Shares in a manner contrary to the Securities Act or to any
applicable state securities Legal Requirements. 
 5.5.3 The Buyer is an “accredited investor” within the meaning of
Regulation D, Rule 501(a) of the Securities Act. 

  
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 5.5.4 The Buyer has had an opportunity to ask questions and receive answers from the Seller
regarding the business, properties, prospects and financial condition of the Company and is aware of the risks and uncertainties associated with an investment in the Company (the foregoing, however, does not limit or modify the representations and
warranties of the Seller in this Agreement or the Seller Compliance Certificate). 
 5.5.5 The Buyer is able to bear the economic
risk of the full loss of the value of the Shares and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Shares (the foregoing, however, does not limit or
modify the representations and warranties of the Seller in this Agreement or the Seller Compliance Certificate). 
 5.5.6 In
entering into this Agreement, purchasing the Shares and consummating the Contemplated Transactions, the Buyer is not relying upon any representations or warranties made by the Seller or the Company or any of their Representatives or Affiliates other
than the representations and warranties set forth in Sections 3 and 4 of this Agreement and the Seller Compliance Certificate, it being acknowledged and agreed by the Buyer that the representations and warranties of the Buyer set forth herein are
fundamental to the Seller’s decision to enter into this Agreement, sell the Shares to the Buyer and to consummate the Contemplated Transactions. 
 5.6. No Brokers. The Buyer has no Liability of any kind to any broker, finder or agent with respect to the Contemplated Transactions for which the Seller could be liable. 

5.7. No Other Representations or Warranties. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS SECTION 5,
NEITHER THE BUYER NOR ANY OTHER PERSON MAKES ANY OTHER EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY ON BEHALF OF THE BUYER. 
 6.
Covenants. 
 6.1. Closing. Subject to the terms and conditions of this Agreement, each of the Parties will use its
commercially reasonable efforts to take, or cause to be taken, as promptly as reasonably practicable, all actions and to do, or cause to be done, all things necessary, proper, or advisable in order to consummate the Contemplated Transactions
(including satisfaction, but not waiver, of the Closing conditions set forth in Sections 7 and 8). 
 6.2. Conduct of
Business. 
 6.2.1 Without the prior written consent of Buyer (which consent will not be unreasonably withheld or delayed),
or except as set forth in Schedule 6.2, between the Execution Date and the Closing Date, the Seller will, and will cause the Company to: 

  
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	 	(a)	preserve intact the Company’s assets (including the Products), and maintain in effect any authorizations of any Governmental Authority or Regulatory Authority; and

  

	 	(b)	otherwise report periodically to the Buyer concerning any material developments regarding the Products with any Governmental Authority, Regulatory Authority and the FDA
and any material developments regarding the Products or the business, operations, and finances of the Company. 

6.2.2 Without the prior written consent of Buyer (which consent will not be unreasonably withheld or delayed), or except as set forth in
Schedule 6.2, from the Execution Date until the Closing Date, the Seller will cause the Company to not: 
  

	 	(a)	engage in any practice, take any action, or enter into any transaction outside the Ordinary Course of Business; 

 

	 	(b)	declare, set aside, or pay any dividend or make any distribution with respect to its capital stock or redeem, purchase or otherwise acquire any of its capital stock;

  

	 	(c)	except as set forth herein, directly or indirectly sell or otherwise transfer, offer, agree or commit (in writing or otherwise) to sell or otherwise transfer any of the
Shares or any interest in or right relating to any of the Shares other than in a partial redemption transaction; 

  

	 	(d)	permit or offer, agree or commit (in writing or otherwise) to permit any Shares to become subject, directly or indirectly to any Encumbrance; 

 

	 	(e)	amend any of the Company’s Organizational Documents or effect or allow the Company to become a party to any recapitalization, reclassification of shares, stock
split, reverse stock split or similar transaction other than a partial redemption transaction; 

  

	 	(f)	incur any capital expenditures or indebtedness, or create any new subsidiaries; 

 

	 	(g)	enter into, modify, or amend in a manner adverse to the Company, or terminate any Material Contract, or waive, release or assign any rights or claims thereunder, in
each case, in a manner adverse to the Company, other than any entry into, modification, amendment or termination of any such Material Contract in the Ordinary Course of Business and which is disclosed to the Buyer in writing; or

  
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	 	(h)	enter into any transaction or take any other action that is reasonably likely to cause or constitute a material breach of any representation or warranty of the Seller
in this Agreement. 

  

	 	(i)	(a) make, revoke or change any Company-specific Tax election, (b) change any Company-specific Tax method of accounting or adopt any new Company-specific Tax method
of account, (c) file any amended Company-specific Tax Return that is or was not filed on a combined, consolidated or unitary basis, (d) settle or compromise any Liability relating to Company Taxes that were not reported on a Tax Return
that was filed on a combined, consolidated or unitary basis, (e) enter into any Tax allocation agreement, Tax sharing agreement, Tax indemnity agreement or closing agreement relating to any Tax, or (f) consent to any extension or waiver of
the statute of limitations period applicable to any Tax claim or assessment. 

  

	 	(j)	abandon, or cause to abandon or agree to abandon, any Company Patent or fail to pay any maintenance fee or timely respond to any inquiry of a Governmental Authority or
administrative or legal filing or notice, whether initiated by a Governmental Authority or Third Party, relating to a Company Patent or fail to file any government filing regarding a Company Patent required to be filed or scheduled to be filed in
the ordinary course as of the Execution Date. 

 6.3. Notice of Developments. From the Execution Date of the
Agreement until the Closing Date, the Company and the Seller will give the Buyer prompt written notice upon becoming aware of any material development, event or circumstance that, to the Seller’s Knowledge, could reasonably be expected to
result in a breach of, or inaccuracy in, any of the Seller’s representations and warranties set forth in Section 3 or Section 4; provided, however, that except as otherwise set forth in this Agreement, no such disclosure will be
deemed to prevent or cure any breach of, or inaccuracy in any representation or warranty set forth in this Agreement. The Seller will be entitled to deliver to the Buyer a supplement to the Disclosure Schedule that discloses to the Buyer in
reasonable detail any facts and circumstances arising after the Execution Date that could constitute or result in a breach of the representations and warranties set forth in Sections 3 or 4. The Buyer will have the right to terminate this Agreement
pursuant to Section 9.1.6 within ten days after receipt of such supplemental Disclosure Schedule, provided, however, that if Buyer does not exercise such right to terminate this Agreement within the ten day period after receipt of such
supplemental Disclosure Schedule, or if the Buyer consummates the Closing, Buyer will, in each such case, be deemed to have accepted such supplemented Disclosure Schedule, and such supplemented Disclosure Schedule will supersede and amend the prior
Disclosure Schedule, be treated for all purposes of this Agreement as the Disclosure Schedule and be deemed to cure any breach of representation or warranty arising out of the prior Disclosure Schedule. 

  
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 6.4. Technology Transfer. Without limiting the generality of Section 6.13,
Seller will use commercially reasonable efforts to provide Buyer with the information, data and other deliverables described on Exhibit 6.4 in accordance with the applicable timeframes set forth on such Exhibit 6.4. Seller will provide
any such deliverables that are to be provided within 30 Business Days following the Closing Date to the following address(es): Conatus Pharmaceuticals Inc., 4365 Executive Drive, Suite 200, San Diego, CA 92121. Subsequent deliverables will be
provided to the address above unless Buyer specifies in writing to Seller an alternate delivery address at least ten Business Days before subsequent deliverables. 
 6.5. Negotiation of Licenses. 
 6.5.1 Seller and Buyer will negotiate in
good faith for the period of 90 days following the Closing Date (the “License Negotiation Period”) to enter into a license agreement under which the Company would grant to Seller a worldwide, non-exclusive license (with right to
sublicense only to Seller’s Affiliates without the Company’s consent) to make, have made, use, offer for sale, sell and import throughout the world cells proprietary to Seller which are modified by the use of or incorporation of the [***],
[***] and/or [***] genes covered by any Patent owned by the Company as of the Execution Date. 
 6.5.2 If Buyer and Seller are
unable to agree on the terms of the license described in Section 6.5.1 within the License Negotiation Period, the Buyer hereby agrees to cause the Company to grant to Seller the right to obtain a license on substantially equivalent terms to any
license to any non-exclusive rights to the [***], [***] and/or [***] genes that the Company grants after the Closing Date to any third party having a market capitalization in excess of $5,000,000,000 at the time such license is granted, or in the
case of a privately-held company, a valuation of its total outstanding equity securities based on its most recently completed arms-length equity financing or an independent valuation of its equity pursuant to Rule 409A under the Code, in excess of
$5,000,000,000 at the time such license is granted. The Buyer shall, within 30 days after entering into such a license with such a third party, give written notice thereof to the Seller along with the form of proposed license to be granted to Seller
and Buyer’s certification that such proposed license is on substantially equivalent terms to a license granted to a qualifying third party under this Section 6.5.2. This Section 6.5.2 shall terminate upon the earlier of (i) the
date on which the Company and Seller have entered into such a license, or (ii) if Seller has failed to accept or enter into such a license, 90 days after Seller’s receipt of Buyer’s written notice described in the immediately
preceding sentence. 
 6.6. Expenses. Each Party will bear its own legal and other expenses in connection with any due
diligence and the negotiation, drafting and execution of agreements and other actions required to consummate the Contemplated Transactions. 
  

	*** 
	 Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to
the omitted portions. 

  
 -24-

 6.7. Exclusivity. From the Execution Date until the earlier of the Termination Date
or the Closing, neither the Seller nor the Company will (and the Company and Seller will not permit their respective Affiliates or any of their or their Affiliates’ Representatives to) directly or indirectly: (a) solicit, initiate, or
encourage the submission of any proposal or offer from any Person relating to, or enter into or consummate any transaction relating to, the acquisition of any capital stock in the Company or any merger, recapitalization, share exchange, sale of
substantial assets (other than a partial redemption of shares) or any similar transaction or alternative to the Contemplated Transactions or (b) participate in any discussions or negotiations regarding, furnish any information with respect to,
assist or participate in, or facilitate in any other manner any effort or attempt by any Person to do or seek any of the foregoing. 
 6.8. Notices and Consents. 
 6.8.1 The Company. The Seller will cause
the Company to give all notices to, make all filings with and use its commercially reasonable efforts to obtain all authorizations, consents or approvals from, any Governmental Authority or other Person as reasonably requested by the Buyer.

 6.8.2 Seller. The Seller will give all notices to, make all filings with and use its commercially reasonable efforts to
obtain all authorizations, consents or approvals from, any Person as reasonably requested by the Buyer. 
 6.8.3 Buyer.
The Buyer will give all notices to, make all filings with and use its commercially reasonable efforts to obtain all authorizations, consents or approvals from, any Governmental Authority or other Person as reasonably requested by the Seller.

 6.9. Confidentiality. 
 6.9.1 Except as otherwise provided in this Section 6.9, each Party (in each case, the “Receiving Party”) will maintain in confidence and use only for purposes of this Agreement and
the Ancillary Agreements, the terms and conditions of this Agreement and the Ancillary Agreements, any activities conducted in connection with or pursuant to this Agreement or the Ancillary Agreements, and any information, in any form or medium
(whether nor not it is labeled or otherwise identified as confidential), disclosed to such Receiving Party by the other Party or its Representatives or Affiliates (in each case, the “Disclosing Party”) in accordance with this
Agreement or the Ancillary Agreements (collectively, “Confidential Information”). 
 6.9.2 The Parties
acknowledge that all information provided to the Buyer and its Affiliates and Representatives by the Seller and its Affiliates and Representatives is hereby subject to the terms of that certain confidentiality agreement made between the Seller and
the Buyer dated as of October 17, 2008 (as amended, “Confidentiality Agreement”), and (a) prior to Closing, such information will be deemed the Confidential Information of the Seller (and hence the Buyer will be considered
a 

  
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Receiving Party with respect thereto), and (b) after Closing, such information will be deemed the Confidential Information of the Buyer (and hence the Seller will be considered a Receiving
Party with respect thereto). 
 6.9.3 The Buyer agrees that after the Closing Date, the Buyer will, and will use all commercially
reasonable efforts to, cause its Representatives, Affiliates and the Company, to not disclose to any third parties and use only for the purposes of this Agreement and the Ancillary Agreements, all Third Party Confidential Information that is
disclosed to the Buyer by the Seller. For purposes of this Agreement, “Third Party Confidential Information” means all information in the possession of the Seller with respect to or concerning any third party which is not necessary
for the development and commercialization of the Products and is not otherwise a Company asset. Notwithstanding anything to the contrary herein, the foregoing provision will not apply in the event the Buyer enters into a separate agreement with an
applicable third party, which such separate agreement governs the disclosure and use of such Third Party Confidential Information. 
 6.9.4 In the event the Receiving Party is requested or required (in any Action, interrogatory, subpoena, civil investigative demand, or similar process) to disclose any Confidential Information of the
Disclosing Party or Third Party Confidential Information (in the case of the Buyer), the Receiving Party will promptly notify the Disclosing Party of the request or requirement so that the Disclosing Party may seek an appropriate protective order or
waive compliance with the provisions of Section 6.9.1. If, in the absence of a protective order or the receipt of a waiver hereunder, the Receiving Party is, on the advice of counsel, compelled to disclose any Confidential Information of the
Disclosing Party or Third Party Confidential Information (in the case of the Buyer) to any tribunal, such Party may disclose such information to the tribunal, provided, however, that such Party will use its reasonable efforts to obtain, at the
request of the Disclosing Party, an order or other assurance that confidential treatment will be accorded to such portion of Confidential Information or Third Party Confidential Information, as applicable, required to be disclosed as the Disclosing
Party designates. 
 6.9.5 This Section 6.9 will not apply to any information that (a) at the time of disclosure or
thereafter is generally available to the public (other than as a result of a disclosure directly by the Receiving Party or its Affiliates or Representatives), (b) is or becomes available to the Receiving Party from a third party source free of
an obligation of confidentiality with respect to such information to the Disclosing Party, (c) is known by the Receiving Party, prior to its disclosure by the Disclosing Party, from a third party source that is free of an obligation of
confidentiality to the Disclosing Party with respect to such information, provided that such prior knowledge can be proven by the Receiving Party’s written records, (d) is independently developed or acquired by the Receiving Party or its
Affiliates or Representatives without access or reference to or use of the Confidential Information of the Disclosing Party. 

  
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 6.10. Publicity. No public announcement or disclosure will be made by any Party with
respect to the subject matter of this Agreement or the Contemplated Transactions without the prior written consent of the Buyer and the Seller; provided, however, that the provisions of Section 6.9 and 6.10 will not prohibit (a) any
disclosure required by any applicable Legal Requirements (in which case the disclosing Party will provide the other Party with the opportunity to review in advance the disclosure) or (b) any disclosure made in connection with the enforcement of
any right or remedy relating to this Agreement or the Contemplated Transactions. Notwithstanding anything herein to the contrary, the Parties agree that each Party may disclose to any and all Persons, without limitation of any kind, the Tax
treatment and Tax structure (as such terms are used in Code Sections 6011 and 6112 and the Treasury Regulations thereunder) of the Contemplated Transactions. The authorization set forth in the preceding sentence is not intended to permit disclosure
of any other information including (i) any portion of any materials to the extent not related to the Tax treatment or Tax structure of the Contemplated Transactions, or (ii) any other term or detail not relevant to the Tax treatment or Tax
structure of the Contemplated Transactions. 
 6.11. Regulatory Cooperation. At the request of Buyer, Seller will send a
letter to a person or division within FDA, to be identified by Buyer, notifying FDA that ownership of the Products and their associated data, clinical study records and withdrawn Investigational New Drug Application(s) have been transferred to
Buyer, pursuant to this Agreement. At the request of the Buyer, Seller will provide a generic letter suitable for communication of the foregoing to non-U.S. Governmental Authorities. If the FDA requests additional or alternate correspondence between
Seller and FDA or between Seller and Buyer, to further the transfer, and if applicable, reinstatement of the withdrawn Investigational New Drug Application(s), the Seller will cooperate in providing such correspondence. 

6.12. Financial Statement Cooperation. From the Closing Date until March 31, 2015, in the event that the Buyer is required to
include audited financial statements with respect to the Company for the years ended December 31, 2007, 2008, 2009 or the 2010 period ended on the Closing Date in any filing to be made by the Buyer under the Securities Act of 1933, as amended,
with respect to or as a result of the transactions contemplated by this Agreement, Seller will, at Buyer’s sole cost and expense, provide the Buyer and its auditors access to inspect the historical financial books and records of Seller relating
exclusively to the Company and solely for purposes of allowing Buyer’s auditors to prepare the above-specified audited financial statements. Buyer shall promptly reimburse Seller for (i) any reasonable out of pocket expenses incurred in
connection with this Section 6.12 and (ii) any amount of time, not to exceed in total 20 hours per week or 40 hours in the aggregate, that Seller’s employees may be required to devote in order to provide such access to financial
information to the Buyer, at an hourly rate of $200 per employee. In no event shall Seller be required to provide assistance pursuant to this Section 6.12 at any time other than during Seller’s normal business hours. Seller makes no
representation or warranty of any kind or nature whatsoever, and shall have no responsibility or liability with respect to (a) any financial information that is contained or should have been contained in the books and records to which Seller
provides access to Buyer and its auditors under this Section 6.12, or (b) the accuracy or adequacy of any financial statements prepared by the Buyer and its auditors based on the information contained in the books and records or compliance
of any financial statements prepared by the Buyer and its auditors with applicable Legal Requirements or accounting rules, regulations and principles. 

  
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 6.13. Further Assurances. From and after the Closing Date, each of the Parties will
do, execute, acknowledge and deliver all such further acts, assurances, deeds, assignments, transfers, conveyances and other instruments and papers as may be reasonably required or appropriate to carry out the Contemplated Transactions. The Seller
will not take any action that is designed or intended to have the effect of discouraging any lessor, licensor, supplier, distributor or customer of the Company or other Person with whom the Company has a relationship from maintaining the same
relationship with the Company after the Closing as it maintained prior to the Closing. The Seller will refer all licensor, licensee, collaborator, clinical trial site, patient, physician and Governmental Authority inquiries relating to the Company
to the Buyer, or the Company, as appropriate, from and after the Closing. 
 6.14. Post Closing Payments. For a
period of two years from and after the Closing Date, Seller shall pay to any licensor or collaborator under any Material Contract, any payment, including without limitation royalties, milestone payments, maintenance fee or sublicense fees, that
(i) was due and payable to such licensors or collaborators during the period following the Company Acquisition Date and prior to the Closing Date, and (ii) was not paid by the Company (or the Seller on behalf of the Company) prior to the
Closing Date. 
 7. Conditions to the Buyer’s Obligations at the Closing. The obligations of the Buyer to consummate the Closing are
subject to the fulfillment of each of the following conditions (unless waived by the Buyer in accordance with Section 12.3): 
 7.1. Representations and Warranties. The representations and warranties of the Seller contained in this Agreement and in any Ancillary Agreement (a) that are not qualified by materiality or
Material Adverse Effect will be true, correct and complete in all material respects at and as of the Closing with the same force and effect as if made as of the Closing and (b) that are qualified by materiality or Material Adverse Effect will
be true, correct and complete in all respects at and as of the Closing with the same force and effect as if made as of the Closing, in each case, other than representations and warranties that expressly speak only as of a specific date or time,
which will be true, correct and complete (or true and correct in all material respects, as the case may be) as of such specified date or time. 
 7.2. Performance. The Company and the Seller will have performed and complied in all material respects, with all agreements, obligations and covenants contained in this Agreement that are required
to be performed or complied with by them at or prior to the Closing. 
 7.3. Stock Certificates. The Seller will have
delivered to the Buyer certificates, duly endorsed (or accompanied by duly executed stock transfer powers) evidencing all of the Shares. 
 7.4. Compliance Certificate. The Seller will have delivered to the Buyer a certificate substantially in the form of Exhibit 7.4. 

  
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 7.5. Qualifications. No provision of any applicable Legal Requirement and no
Government Order will prohibit the consummation of any of the Contemplated Transactions. 
 7.6. Absence of Litigation. No
Action will be pending or threatened in writing which may result in a Government Order (nor will there be any Government Order in effect) (a) which would prevent, significantly delay, make illegal or otherwise interfere with the consummation of
any of the Contemplated Transactions, (b) which would result in any of the Contemplated Transactions being rescinded following consummation or (c) which could limit or otherwise adversely affect the right of the Buyer to own the Shares
(including the right to vote the Shares), to control the Company, or to operate all or any material portion of either the business or assets of the Company. 
 7.7. Consents, etc. All actions by (including any authorization, consent or approval) or in respect of (including notice to), or filings with, any Governmental Authority or other Person that are
set forth on Schedule 7.7, will have been obtained or made, and no such authorization, consent or approval will have been revoked. 
 7.8. Ancillary Agreements. Each of the Ancillary Agreements to which the Buyer is party will have been executed and delivered by the Seller. 

7.9. FIRPTA Affidavit. Seller will have delivered to Buyer a duly completed and executed non-foreign person affidavit that complies
with the requirements of Code Section 1445. 
 8. Conditions to the Seller’s Obligations at the Closing. The obligations of the
Seller to consummate the Closing are subject to the fulfillment of each of the following conditions (unless waived by the Seller in accordance with Section 12.3): 
 8.1. Representations and Warranties. The representations and warranties of the Buyer contained in this Agreement and in any Ancillary Agreement (a) that are not qualified by materiality or
Material Adverse Effect will be true, correct and complete in all material respects at and as of the Closing with the same force and effect as if made as of the Closing and (b) that are qualified by materiality or Material Adverse Effect will
be true, correct and complete in all respects at and as of the Closing with the same force and effect as if made as of the Closing, in each case, other than representations and warranties that expressly speak only as of a specific date or time,
which will be true, correct and complete (or true, correct and complete in all material respects, as the case may be) as of such specified date or time. 
 8.2. Performance. The Buyer will have performed and complied with, in all material respects, all agreements, obligations and covenants contained in this Agreement that are required to be performed
or complied with by the Buyer at or prior to the Closing. 
 8.3. Compliance Certificate. The Buyer will have delivered to
the Seller a certificate in the form of Exhibit 8.3. 

  
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 8.4. Qualifications. No provision of any applicable Legal Requirement and no
Government Order will prohibit the consummation of any of the Contemplated Transactions. 
 8.5. Absence of Litigation. No
Action will be pending or threatened in writing which may result in a Government Order, nor will there be any Government Order in effect, (a) which would prevent consummation of any of the Contemplated Transactions or (b) which would
result in any of the Contemplated Transactions being rescinded following consummation. 
 8.6. Consents, etc. All actions
by (including any authorization, consent or approval) or in respect of (including notice to), or filings with, any Governmental Authority or other Person that are set forth on Schedule 8.6, will have been obtained or made, and no such
authorization, consent or approval will have been revoked. 
 8.7. Ancillary Agreements. Each of the Ancillary Agreements
to which the Seller is party will have been executed and delivered to the Buyer. 
 8.8. Financial Statements. The Buyer
will have delivered to the Seller a copy of the Buyer’s most recent unaudited financial statement. 
 9. Termination. 

9.1. Termination of Agreement. This Agreement may be terminated (the date on which the Agreement is terminated, the
“Termination Date”) at any time prior to the Closing: 
 9.1.1 by mutual written consent of the Buyer and the
Seller; 
 9.1.2 by either the Buyer or the Seller, so long as the Buyer or the Seller, respectively, is/are not then in breach
of its/their obligations under this Agreement in any material respect, by providing written notice to the other at any time after September 30, 2010 (the “Final Termination Date”) in the event that the Closing has not occurred
on or prior to the Final Termination Date; 
 9.1.3 by either the Buyer or the Seller if a final nonappealable Government Order
permanently enjoining, restraining or otherwise prohibiting the Closing is issued by a Governmental Authority of competent jurisdiction; 
 9.1.4 by the Buyer, so long as the Buyer is not then in breach of its obligations under this Agreement in any material respect, if either (i) there has been a material breach of, or inaccuracy in,
any representation or warranty of the Seller contained in this Agreement as of the Execution Date or as of any subsequent date (other than representations or warranties that expressly speak only as of a specific date or time, with respect to which
the Buyer’s right to terminate will arise only in the event of a breach of, or inaccuracy in, such representation or warranty as of such specified date or time), which breach or inaccuracy would give rise, or could reasonably be expected to
give rise, to a failure of a condition set forth in Section 7 and which is 

  
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not cured on or prior to the earlier of (x) the
20th day following notice of such breach, or (y) the
Final Termination Date, or (ii) the Seller has breached or violated in any material respect any of its covenants and agreements contained in this Agreement, which breach or violation would give rise, or could reasonably be expected to give
rise, to a failure of any condition set forth in Section 7 and such breach or violation is not cured on or prior to the earlier of (A) the 20th day following notice of such breach, or (B) the Final Termination Date; 

9.1.5 by the Seller, so long as the Seller is not then in breach of its obligations under this Agreement in any
material respect, if either (i) there has been a material breach of, or inaccuracy in, any representation or warranty of the Buyer contained in this Agreement as of the Execution Date or as of any subsequent date (other than representations or
warranties that expressly speak only as of a specific date or time, with respect to which the Seller’s right to terminate will arise only in the event of a breach of, or inaccuracy in, such representation or warranty as of such specified date
or time), which breach or inaccuracy would give rise, or could reasonably be expected to give rise, to a failure of a condition set forth in Section 8 and which is not cured on or prior to the earlier of (x) the 20th day following notice of such breach, or (y) the Final
Termination Date, or (ii) the Buyer has breached or violated in any material respect any of its covenants and agreements contained in this Agreement, which breach or violation would give rise, or could reasonably be expected to give rise, to a
failure of the condition set forth in Section 8 and such breach or violation is not cured on or prior to the earlier of (A) the 20th day following notice of such breach, or (B) the Final Termination Date; or 

9.1.6 by the Buyer pursuant to Section 6.3. 
 9.2. Effect of Termination. In the event of the termination of this Agreement pursuant to Section 9, this Agreement – other than the provisions of this Section 9.2 and Sections 3.13,
4.6 and 5.5 (No Brokers), 6.4 (Expenses), 6.9 (Confidentiality), 6.10 (Publicity), 10 (Indemnification), and 12 (Miscellaneous) – will then be null and void and have no further force and effect and all other rights and
Liabilities of the Parties hereunder will terminate without any Liability of any Party to any other Party, except for Liabilities arising in respect of breaches under this Agreement by any Party on or prior to the Termination Date. Each Party’s
right of termination under Section 9.1 is in addition to any other rights it may have under this Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies. 

10. Indemnification. 

10.1. Indemnification by the Seller. 
 10.1.1 Seller Indemnification. Subject to the limitations set forth in this Section 10, the Seller will indemnify and hold harmless the Buyer and each of its Affiliates (including, following
the Closing, the Company), and the Representatives and Affiliates of each of the foregoing Persons (each, a “Buyer Indemnified Person”), from, against and in respect of any and all Actions, Liabilities, Government Orders,

  
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Encumbrances, losses, damages, bonds, dues, assessments, fines, penalties, Taxes, fees, costs (including costs of investigation, defense and enforcement of this Agreement), expenses or amounts
paid in settlement (in each case, including reasonable outside attorneys’ and experts fees and expenses, but excluding any imputed time charges of attorneys who are employees of the Indemnified Party), whether or not involving a Third Party
Claim (collectively, “Losses”), incurred or suffered by the Buyer Indemnified Persons or any of them to the extent resulting from, arising out of or directly or indirectly relating to: 

 

	 	(a)	any breach of, or inaccuracy in, any representation or warranty made by the Seller in Sections 3 and 4 of this Agreement; 

 

	 	(b)	any breach or violation of any covenant or agreement of the Seller in or pursuant to this Agreement or any Ancillary Agreement; 

 

	 	(c)	any fraud of the Seller or any pre-Closing fraud of the Company. 

 10.1.2 Seller Monetary Limitations. 
  

	 	(a)	The Seller will have no obligation to indemnify the Buyer Indemnified Persons in respect of Losses arising from the breach of, or inaccuracy in, any representation or
warranty pursuant to Section 10.1.1(a) or Losses arising from the breach of any covenant or agreement to be performed prior to Closing pursuant to Section 10.1.1(b), unless the aggregate amount of all such Losses incurred or suffered by the
Buyer Indemnified Persons exceeds $50,000 (the “Threshold Amount”), in which case the Seller will indemnify the Buyer Indemnified Persons for the full amount of such Losses (including the Threshold Amount), provided that the
Seller’s aggregate Liability in respect of Indemnification Claims arising from the breach of, or inaccuracy in, any representation or warranty pursuant to Section 10.1.1(a) and Indemnification Claims brought after Closing arising from the
breach of any covenant or agreement to be performed prior to the Closing pursuant to Section 10.1.1(b) will not exceed $500,000, which amount of indemnifiable Losses Seller may, in its sole discretion, elect by written notice to the Buyer to
pay and satisfy either in cash or to offset the amount of such indemnifiable Losses against the principal balance of or interest on the Promissory Note. 

  

	 	(b)	Notwithstanding anything to the contrary in Section 10.1.2(a), the monetary limitations in Section 10.1.2(a) will not apply to Indemnification Claims pursuant
to Sections 10.1.1(a) in respect of breaches of, or inaccuracies in, representations and warranties set forth in Sections 3.1 and 4.1 (Organization), 3.2 (Capitalization), 3.3(e) (Breach of Organizational Documents), the last full sentence
of 3.8 (Material Contracts), 3.11 (Taxes) or 3.13 and 4.6 (No Brokers). 

  
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 10.2. Indemnity by the Buyer. 

10.2.1 Buyer Indemnification. Subject to the limitations set forth in this Section 10, the Buyer will indemnify and hold
harmless the Seller and the Seller’s respective Affiliates (including, prior to the Closing, the Company), and the Representatives and Affiliates of each of the foregoing Persons (each, a “Seller Indemnified Person”), from,
against and in respect of any and all Losses incurred or suffered by the Seller Indemnified Persons or any of them to the extent resulting from, arising out of or relating to, directly or indirectly: 

 

	 	(a)	any breach of, or inaccuracy in, any representation or warranty made by the Buyer in Section 5 of this Agreement; 

 

	 	(b)	any breach or violation of any covenant or agreement of the Buyer in or pursuant to this Agreement or any Ancillary Agreement; 

 

	 	(c)	any fraud of the Buyer or any post-Closing fraud committed by the Company; or 

 

	 	(d)	any Losses arising out of or in connection with the ownership, conduct or operation of the business of the Company and any of its subsidiaries after the Closing Date,
other than any Losses described in this Section 10.2.1(d) resulting from any breach of or inaccuracy in any representation or warranty made by Seller in Section 3 or Section 4. 

10.2.2 Buyer Monetary Limitations. 
  

	 	(a)	The Buyer will have no obligation to indemnify the Seller Indemnified Persons in respect of Losses arising from the breach of, or inaccuracy in, any representation or
warranty pursuant to Section 10.2.1(a) or Losses arising from the breach of any covenant or agreement to be performed prior to Closing pursuant to Section 10.2.1(b), unless the aggregate amount of all such Losses incurred or suffered by
the Seller Indemnified Persons exceeds the Threshold Amount, in which case the Buyer will indemnify the Seller Indemnified Persons only for the amount by which such Losses exceed the Threshold Amount, and the Buyer’s aggregate Liability in
respect of Indemnification Claims arising from the breach of, or inaccuracy in, any representation or warranty pursuant to Section 10.2.1(a) and Indemnification Claims brought after Closing arising from the breach of any covenant or agreement
to be performed prior to the Closing pursuant to Section 10.2.1(b) will not exceed $150,000. 

  

	 	(b)	Notwithstanding anything to the contrary in Section 10.2.2(a), the monetary limitations in Section 10.2.2(a) will not apply to Indemnification Claims pursuant
to Sections 10.2.1(a) in respect of breaches of, or inaccuracies in, representations and warranties set forth in Sections 5.1 (Organization), 5.2 (Power and Authorization), 5.4(e) (Breach of Organizational Documents) or 5.6 (No Brokers).

  
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 10.3. Time for Claims. 

10.3.1 No claim may be made or suit instituted seeking indemnification pursuant to Section 10.1.1 Section 10.2.1 unless a
written notice describing the breach of, or inaccuracy in, any representation or warranty, or the breach or violation of any covenant or agreement, or the purported fraud or other cause for indemnification, in each case, in reasonable detail in
light of the circumstances then known to the Indemnified Party, is provided to the Indemnifying Party: 
  

	 	(a)	at any time, in the case of any breach of, or inaccuracy in, the representations and warranties set forth in Sections 3.1 and 4.1 (Organization),
3.2 (Capitalization), 4.2 (Power and Authorization), 3.3(e) (Breach of Organizational Documents), 3.12 and 4.6 (No Brokers), 5.1 (Organization), 5.2 (Power and Authorization), 5.4(e) (Breach of Organizational Documents) or 5.6 (No
Brokers); 

  

	 	(b)	at any time prior to 90 days following the expiration of the applicable statute of limitations, in the case of any breach of, or inaccuracy in, the representations and
warranties set forth in Section 3.11 (Taxes); 

  

	 	(c)	at any time prior to the first anniversary of the Closing Date, in the case of any claim or suit based upon fraud; and 

 

	 	(d)	at any time prior to the first anniversary of the Closing Date, in the case of (i) any breach of, or inaccuracy in, any other representation and warranty in this
Agreement or (ii) any breach of any covenant or agreement to be performed prior to the Closing. 

 10.3.2
Indemnification Claims pursuant to any other provision of Sections 10.1.1 and 10.2.1 are not subject to the limitations set forth in this Section 10.3. 
 10.4. Third Party Claims. 
 10.4.1 Notice of Claim. If any third
party notifies an Indemnified Party with respect to any matter (a “Third Party Claim”) which may give rise to an Indemnification Claim against an Indemnifying Party under this Section 10, then the Indemnified Party will
promptly give written notice to the Indemnifying Party of such Third Party Claim; provided, however, that no delay on the part of the Indemnified Party in notifying the Indemnifying Party will relieve the Indemnifying Party from any obligation under
this Section 10, except to the extent such delay actually and materially prejudices the Indemnifying Party. 

  
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 10.4.2 Assumption of Defense, etc. The Indemnifying Party will be entitled to
participate in the defense of any Third Party Claim that is the subject of a notice given by the Indemnified Party pursuant to Section 10.4.1. In addition, the Indemnifying Party will have the right to defend the Indemnified Party against the
Third Party Claim with counsel of its choice reasonably satisfactory to the Indemnified Party so long as (a) the Indemnifying Party gives written notice to the Indemnified Party within fifteen days after the Indemnified Party has given notice
of the Third Party Claim that the Indemnifying Party will indemnify the Indemnified Party from and against the entirety of any and all Losses the Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or caused
by the Third Party Claim and which are subject to indemnification pursuant to Section 10.1 or 10.2, (b) the Third Party Claim involves primarily money damages and does not seek material injunctive or other equitable relief against the
Indemnified Party, (c) the Indemnified Party has not been advised by counsel in good faith that an actual conflict exists between the Indemnified Party and the Indemnifying Party in connection with the defense of the Third Party Claim,
(d) the Third Party Claim does not relate to or otherwise arise in connection with any criminal or regulatory enforcement Action, and (e) the Indemnifying Party conducts the defense of the Third Party Claim actively and diligently,
including making timely payment of all of its litigation costs and expenses incurred in the conduct of such defense. The Indemnified Party may retain separate co-counsel at its sole cost and expense and participate in the defense of the Third Party
Claim; provided, however, that the Indemnifying Party will pay the reasonable fees and expenses of separate co-counsel retained by the Indemnified Party that are incurred prior to Indemnifying Party’s assumption of control of the defense of the
Third Party Claim. 
 10.4.3 Limitations on Indemnifying Party. The Indemnifying Party will not consent to the entry of
any judgment or enter into any compromise or settlement with respect to the Third Party Claim without the prior written consent of the Indemnified Party unless such judgment, compromise or settlement (a) provides for the payment by the
Indemnifying Party of money as sole relief for the claimant, (b) results in the full and general release of the Buyer Indemnified Persons or Seller Indemnified Persons, as applicable, from all Liabilities arising or relating to, or in
connection with, the Third Party Claim or (c) contains no finding or admission of any violation of any Legal Requirement or the rights of any other Person. 
 10.4.4 Indemnified Party’s Control. If the Indemnifying Party does not deliver the notice contemplated by clause (a) of Section 10.4.2, or the evidence contemplated by clause
(b) of Section 10.4.2, within fifteen days after the Indemnified Party has given written notice of the Third Party Claim, or otherwise at any time fails to conduct the defense of the Third Party Claim actively and diligently, the
Indemnified Party may defend, and may consent to the entry of any judgment or enter into any compromise or settlement with respect to, the Third Party Claim; provided, however, that the Indemnifying Party will not be bound by the entry of any such
judgment consented to, or any such compromise or settlement effected, without its prior written consent (which consent will not be unreasonably withheld or delayed). In the event that the 

  
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Indemnified Party conducts the defense of the Third Party Claim pursuant to this Section 10.4.4, the Indemnifying Party will (a) advance the Indemnified Party promptly and periodically
for the reasonable costs of defending against the Third Party Claim (including reasonable outside attorneys’ fees and expenses, but excluding the expenses of any attorneys who are employees of the Indemnified Party) and (b) remain
responsible for any and all other Losses that the Indemnified Party may incur or suffer resulting from, arising out of, relating to, in the nature of or caused by the Third Party Claim to the fullest extent provided in this Section 10.

 10.4.5 Consent to Jurisdiction Regarding Third Party Claim. The Buyer and the Seller, each in its capacity as an
Indemnifying Party, hereby consents to the non-exclusive jurisdiction of any court in which any Third Party Claim may be brought against any Indemnified Party for purposes of any claim which such Indemnified Party may have against such Indemnifying
Party pursuant to this Agreement in connection with such Third Party Claim, and in furtherance thereof, the provisions of Section 12.12 are incorporated herein by reference, mutatis mutandis. 

10.5. Other Limitations. 
 10.5.1 Insurance. The amount of any Losses will be reduced or reimbursed, as the case may be, by any amount received by the Indemnified Party with respect thereto under any insurance coverage, less
all reasonable out-of-pocket costs incurred by the Indemnified Party in its pursuit of such amount. The Indemnified Party will use reasonable efforts to collect any amounts available under such insurance coverage. To the extent that any insurance
payment is actually recovered by an Indemnified Party after the related indemnification payment has been made by an Indemnifying Party pursuant to this Agreement, the Indemnified Party will give over to the Indemnifying Party the amounts of such
insurance payments (net of all legal costs and expenses incurred to collect the same) promptly after they are actually recovered. 
 10.5.2 Mitigation. Indemnified Parties will use commercially reasonable efforts to mitigate any Losses that may provide the basis for an indemnifiable claim (that is, the Indemnified Parties will
mitigate such Losses in the same manner that they would mitigate such Losses in the absence of the indemnification provided for in this Agreement, provided that the Indemnified Parties will not be required to incur any undue expense or take any
action that would cause undue hardship, including impairing its ability to conduct business). Any request for indemnification of specific costs will include invoices and supporting documents containing reasonably detailed information about the costs
and/or damages for which indemnification is being sought. 
 10.5.3 No Double Recovery. Notwithstanding anything herein to
the contrary, no Indemnified Party will be entitled to indemnification or reimbursement under any provision of this Agreement for any amount to the extent such Party has been indemnified or reimbursed for such amount under any other provision of
this Agreement or otherwise. 

  
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 10.6. Remedies Cumulative. The rights of each Buyer Indemnified Person and Seller
Indemnified Person under this Section 10 are cumulative, and each Buyer Indemnified Person and Seller Indemnified Person, as the case may be, will have the right in any particular circumstance, in its sole discretion, to enforce any provision
of this Section 10 without regard to the availability of a remedy under any other provision of this Section 10. 

10.7. Knowledge and Investigation. No Buyer Indemnified Person will have a right to indemnification pursuant to this
Section 10 for any breach or inaccuracy of any representation or warranty, referred to in Section 10.1.1(a), with respect to which the Buyer had actual knowledge. If any condition contained in this Agreement or in any Ancillary Agreement
based on the truth and accuracy of any representation or warranty, or the performance of or compliance with any covenant or agreement is waived in writing by an Indemnified Party, the right of such Indemnified Party to indemnification pursuant to
this Section 10 based on such representation, warranty, covenant or agreement will be deemed waived at Closing. 
 10.8.
No Right of Set-Off. The Buyer expressly waives any and all right of set off, counterclaim, deduction, withholding, recoupment or other claims or defenses with respect to or against the Milestone Payments, the Promissory Note or other amounts
due or owing under this Agreement or any Ancillary Agreement, including any and all right to apply the amount of any Losses referenced in this Section 10 against the Milestone Payments, the Promissory Note or other such amounts. 

10.9. Exclusive Remedy. Except for remedies that cannot be waived as a matter of law or the equitable remedy of specific
performance in connection with the breach of any covenant contained in this Agreement, this Section 10 will provide the sole and exclusive remedy following the Closing for any and all Losses sustained or incurred by any Indemnified Party
relating to or arising in connection with (a) any breach of, or inaccuracy in, any representation or warranty made in connection with this Agreement, (b) any breach or violation of any covenant or agreement in or pursuant to this Agreement
or any Ancillary Agreement which does not require performance after the Closing Date or (c) any other Losses that arise in connection with this Agreement or with respect to which indemnification is provided in this Section 10, other than
Losses arising in connection with any breach or violation of any covenant or agreement in Section 2. 
 10.10. Purchase
Price Adjustments. Any payments made to any party pursuant to Articles 10 or 11 will constitute an adjustment of the Purchase Price for Tax purposes and will be treated as such by Buyer and Seller (and their respective Affiliates) on their
Tax Returns to the extent permitted by law. 
 11. Tax Matters. 
 11.1. Tax Indemnification. The Seller will indemnify, exonerate and hold free and harmless each Buyer Indemnified Person from and against any Losses attributable to (a) all Taxes (or
non-payment thereof) of the Company for all Pre-Closing Tax Periods, (b) all Pre-Closing Tax Period Taxes of any other member of the affiliated, consolidated, combined or unitary group of which the Company was a member on or prior to the
Closing Date, 

  
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including pursuant to Treasury Regulation Section 1.1502-6 or any analogous or similar state, local, or foreign Legal Requirement, and (c) any and all Taxes relating to a Pre-Closing
Tax Period of any Person imposed on the Company in the Company’s capacity as a transferee or successor to such Person, by Contractual Obligation or otherwise. Notwithstanding the foregoing, the Seller will not indemnify, exonerate and hold free
and harmless a Buyer Indemnified Person from and against any Losses attributable to any Buyer Tax Act. Further, the Seller’s obligation to indemnify, defend and hold harmless a Buyer Indemnified Person from and against any Liability pursuant to
this Section 11.1 will terminate 90 days following the expiration of the applicable statute of limitations in respect of such Liability. 
 11.2. Straddle Period; Related Items. In the case of any Taxable period that includes (but does not end on) the Closing Date (a “Straddle Period”), the amount of any Taxes of the
Company in the case of Taxes that are: (x) based upon or measured by net income or gain, (y) imposed in connection with any sale, transfer or assignment or any deemed sale, transfer or assignment of property (real or personal, tangible or
intangible), or (z) sales and use taxes, value-added taxes, employment taxes, withholding taxes or similar Taxes, for the Pre-Closing Tax Period will be determined based on an interim closing of the books as of the close of business on the
Closing Date, except that any item or amount of Tax attributable to a Buyer Tax Act will be allocated solely to the Post-Closing Tax Period. The amount of Taxes other than Taxes of the Company described in clauses (x), (y) and (z) which
relate to the Pre-Closing Tax Period will be deemed to be the amount of such Tax for the entire Taxable period multiplied by a fraction, the numerator of which is the number of days in the Taxable period ending on the Closing Date and the
denominator of which is the number of days in such Straddle Period. For purposes of clauses (x), (y) and (z) of this Section 11.2, any exemption, deduction, credit or other item that is calculated on an annual basis will be allocated
to the portion of the Straddle Period ending on the Closing Date on a pro rata basis determined by multiplying the total amount of such item allocated to the Straddle Period times a fraction, the numerator of which is the number of days in the
portion of the Straddle Period ending on the Closing Date, and the denominator of which is the number of days in such Straddle Period. Notwithstanding the foregoing, any item or amount of Tax attributable to a Buyer Tax Act will be allocated solely
to that portion of the Straddle Period ending after the Closing Date. In the case of any Tax based upon or measured by capital (including net worth or long-term debt) or intangibles, any amount thereof required to be allocated under this Section
11.2 will be computed by reference to the level of such items on the Closing Date. Proration of Taxes that are undetermined as of the Closing Date (1) will be based on the most recently available Tax rate and valuation, giving effect to
applicable exemptions, change in valuation, and similar items, whether or not officially certified to the appropriate Governmental Authority as of the Closing Date, (2) will use a 365-day year and (3) if any Tax proration is based upon an
estimate at Closing, a post-Closing adjustment will be made by cash settlement between Seller and Buyer within 30 Business Days after receipt of the actual expense invoices or Tax bill, which adjustment obligation will survive the Closing. The
Parties hereto will, to the extent permitted by applicable law, elect with the relevant Governmental Authority to treat a portion of any Straddle Period as a short taxable period ending as of the close of business on the Closing Date. 

  
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 11.3. Tax Sharing Agreements. All Tax sharing agreements or similar agreements and
all powers of attorney with respect to or involving the Company will be terminated prior to the Closing and, after the Closing, the Company will not be bound thereby or have any Liability thereunder. 

11.4. Certain Taxes and Fees. All transfer, documentary, sales, use, stamp, registration and other such similar Taxes, and any
conveyance fees or recording charges (including any interest, penalties or other additions to tax) (“Transfer Taxes”) incurred in connection with the Contemplated Transactions, will be shared equally by Buyer and Seller, Buyer will,
at its own expense, timely file all necessary Tax Returns relating to Transfer Taxes and other documentation with respect to all such Transfer Taxes, fees and charges incurred in connection with the Contemplated Transaction. The Parties hereto (and
their Affiliates) will cooperate with one other in connection with the filing of any Tax Return relating to Transfer Taxes, including joining in the execution of any such Tax Returns or other documentation. Buyer and Seller will, upon the request of
the other Party, use their commercially reasonable efforts to obtain any certificate or other document from any Governmental Authority or other Person as may be necessary to mitigate, reduce or eliminate any Transfer Tax. 

11.5. Cooperation; Tax Contests. Buyer and Seller will have the obligation, if called upon by the other, to cooperate reasonably in
(A) preparing and filing all Tax Returns described in Section 11.6 with respect to the Company, including giving each other reasonable access to their employees for the purpose of making inquiries in connection with the preparation of such
Tax Returns, (B) giving the other Party timely notice of and responding to any inquiries, audits or similar proceedings (including litigation) by any Governmental Authority relating to Taxes of the Company (a “Tax Matter”) and
(C) resolving all Tax Matter-related disputes and audits. Buyer and Seller will, upon request of the other Party, use their commercially reasonable efforts to obtain or provide any certificate or other document from any Governmental Authority
or any other Person, at the sole expense of the requesting Party, as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including with respect to the Contemplated Transactions). The Party requesting such cooperation
will pay the reasonable out-of-pocket expenses of the other Party. Notwithstanding Section 10.4, the Seller will have the responsibility for, and the right to control, at the Seller’s sole expense, any Tax Matter relating to Taxable
periods ending on or prior to the Closing Date (though Buyer will have the right to participate, at its own expense, in any such Tax Matter that relates to a Company Tax Return that was not filed on a combined, consolidated or unitary basis), and
the Seller will have the right to participate, at its own expense, in the disposition of a Tax Matter of any Tax Return relating to periods ending after the Closing Date, if and to the extent that such matter is reasonably likely to give rise to a
claim for indemnification under either Section 10.1 or Section 11.1. Buyer will be entitled to be timely informed in writing by Seller of any Tax Matter described in clause (B) of this Section 11.5 relating to Taxable periods
ending on or prior to the Closing Date (it being understood that such writing shall set forth in reasonable detail the amount and the nature of such matter as it pertains solely to the Company as well as the core assertions of the Governmental
Authority underlying such matter as they pertain solely to the Company) and the developments with respect to such matter at any administrative meeting, conference, hearing or other proceeding as they pertain solely to the Company. For the avoidance
of 

  
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doubt, Buyer will not be entitled to any information described in the previous sentence to the extent such matter relates to or is in connection with a liability of the Company under Treasury
Regulations Section 1.1502-6 or any analogous provision of state, local or foreign Tax law. Buyer will have the responsibility for, and the right to control, at Buyer’s sole expense any Tax Matter relating to a Straddle Period of the
Company. 
 11.6. Tax Returns. 
 11.6.1 The Seller will prepare and timely file (or cause the Company to prepare and timely file), at Seller’s sole expense, all Tax Returns related to the Company that are due on or prior to the
Closing Date, and will timely pay (taking into consideration any extensions for filing) any Taxes with respect thereto. At least 15 days prior to the filing of any such Tax Return that is not filed on a combined, consolidated or unitary basis,
Seller will submit a copy of such Tax Return to the Buyer for the Buyer’s review, comment and approval, which approval will not be unreasonably withheld. or delayed, and will not be withheld in any event if such Tax Return has been prepared in
a manner consistent with the Company’s past practices. Seller will consider in good faith such revisions to such Tax Returns as are reasonably requested by Buyer. Buyer and Seller agree to consult and resolve in good faith any issue arising as
a result of Buyer’s review of such Tax Returns and mutually consent to the filing of such Tax Returns as promptly as possible. Notwithstanding the foregoing, Buyer will be entitled to be timely informed in writing by Seller of any Tax Matter
described in clause (B) of Section 11.5 relating to Tax Returns of the Company that are due on or prior to the Closing Date (it being understood that such writing shall set forth in reasonable detail the amount and the nature of such
matter as it pertains solely to the Company as well as the core assertions of the Governmental Authority underlying such matter as they pertain solely to the Company) and the developments with respect to such matter at any administrative meeting,
conference, hearing or other proceeding as they pertain solely to the Company. For the avoidance of doubt, Buyer will not be entitled to any information described in the previous sentence to the extent such matter relates to or is in connection with
a liability of the Company under Treasury Regulations Section 1.1502-6 or any analogous provision of state, local or foreign Tax law. 
 11.6.2 In addition to Section 11.6.1, the Seller will prepare and file, at Seller’s sole expense, (i) all the Seller combined or consolidated U.S. federal Tax Returns (income or non-income)
of which Company is includible, and (ii) all Seller combined, unitary or consolidated state or local Tax Returns (income or non-income) of which the Company is includible, and will timely pay (taking into consideration any extensions for
filing) any Taxes with respect to (i) and (ii), above. The Company will provide, at the Company’s sole expense, all information in its possession and not otherwise available to Seller required to be included in such returns as the Seller
may reasonably request within 30 days of such request. Notwithstanding the foregoing, Buyer will be entitled to be timely informed in writing by Seller of any Tax Matter described in clause (B) of Section 11.5 relating to Tax Returns
described in this Section 11.6.2 (it being understood that such writing shall set forth in reasonable 

  
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detail the amount and the nature of such matter as it pertains solely to the Company as well as the core assertions of the Governmental Authority underlying such matter as they pertain solely to
the Company) and the developments with respect to such matter at any administrative meeting, conference, hearing or other proceeding as they pertain solely to the Company. For the avoidance of doubt, Buyer will not be entitled to any information
described in the previous sentence to the extent such matter relates to or is in connection with a liability of the Company under Treasury Regulations Section 1.1502-6 or any analogous provision of state, local or foreign Tax law. 

11.6.3 The Company will prepare and timely file, at the Company’s sole expense, all Straddle Period Tax Returns related to the
Company, other than those described in Section 11.6.1 and Section 11.6.2 that are due after the Closing Date (including those non-income Tax Returns and separate state and local income Tax Returns for Taxable periods ending after the
Closing Date), and will timely pay (taking into consideration any extensions for filing) any Taxes with respect thereto. All such Tax Returns will be prepared in a manner consistent with past practice of the Company unless otherwise required by law.
With respect to Taxes of the Company relating to a Straddle Period, Seller will pay to Buyer within 30-days of Buyer’s written request the amount of such Taxes allocable to the portion of the Straddle Period that is deemed to end on the close
of business on the Closing Date. Such written request will include satisfactory evidence that Buyer has timely paid such Taxes. The portion of any Tax that is allocable to the taxable period that is deemed to end on the Closing Date will be
calculated consistent with the principles set forth in Section 11.2. Notwithstanding the foregoing, Seller will be entitled to be timely informed in writing by Buyer of any Tax Matter described in clause (B) of Section 11.5 relating
to those Straddle Period Tax Returns described in this Section 11.6.3 (it being understood that such writing shall set forth in reasonable detail the amount and the nature of such matter as it pertains solely to the Company as well as the core
assertions of the Governmental Authority underlying such matter as they pertain solely to the Company) and the developments with respect to such matter at any administrative meeting, conference, hearing or other proceeding as they pertain solely to
the Company. 
 11.6.4 With respect to Section 11.6.3, at least 15 days prior to the date on which each such Tax Return is
due (taking into consideration any extensions for filing), the Company will submit such Tax Return to the Seller for the Seller’s review, comment and approval, which approval will not be unreasonably withheld or delayed, and will not be
withheld in any event if such Tax Return has been prepared in a manner consistent with the Company’s past practices. Buyer will consider in good faith such revisions to such Tax Returns as are reasonably requested by Seller. Buyer and Seller
agree to consult and resolve in good faith any issue arising as a result of Seller’s review of such Tax Returns and mutually consent to the filing of such Tax Returns as promptly as possible. 

  
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 11.7. Tax Records. Buyer and Seller will, and Buyer will cause the Company to,
(A) retain all books and records with respect to Tax Matters pertinent to the Company relating to any taxable period beginning on or before the Closing Date until 90 days after the expiration of the statute of limitations (and any extensions
thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any Governmental Authority and (B) give the other Party reasonable written notice prior to transferring, destroying or discarding any
such books and records, and, if the other Party so requests, Buyer, the Company or Seller, as the case may be, will allow the other Party to take possession of such books and records at the sole expense of the requesting Party. 

11.8. Amendments. None of Buyer, the Company or any Affiliate of the foregoing will amend, refile, revoke or otherwise modify any
Tax Return or Tax election of the Company in respect of any Pre-Closing Tax Period without the prior written consent of Seller, which consent will not be unreasonably withheld or delayed. 

11.9. Certain Tax Attributes. 
 11.9.1 Seller will be entitled to any Tax refunds (or reductions in Tax liability), including interest paid therewith, in respect of Taxes paid or incurred by the Company with respect to any Pre-Closing
Tax Period. Buyer will forward to Seller or reimburse Seller for any such Tax refunds received or reductions utilized within 30 days of such receipt or utilization. To the extent such refund is subsequently disallowed or required to be returned to
the applicable Governmental Authority, Seller agrees promptly to repay the amount of such refund, together with any interest, penalties or other additional amounts imposed by such Governmental Authority, to Buyer or such Governmental Authority, as
the case may be. 
 11.9.2 Buyer and its Affiliates will not cause or permit the Company to carry back to any Pre-Closing Tax
Period any net operating loss or other Tax attribute that is attributable to a Post-Closing Tax Period. In conformity with the foregoing, Buyer and, to the extent necessary any of its Affiliates, will make a proper and timely election (or cause such
proper and timely election to be made) to relinquish the carryback of any net operating losses, if any, of the Company pursuant to either Treasury Regulations Section 1.1502-21(b)(3)(ii)(B) or 1.1502-21T(b)(3)(ii)(C) or Code
Section 172(b)(3), or any similar or comparable provision under state, local or foreign law, as the case may be. 
 11.10.
Prohibition of Certain Tax Elections. The Parties expressly acknowledge and agree that (i) no Code Section 338(h)(10) election will be made with respect to the Contemplated Transactions and (ii) Seller will not make any
election under Treasury Regulations Section 1.1502-36(d) to reduce the Tax basis in the Shares in lieu of preserving the attributes, if any, of the Company. 
 11.11. Buyer Tax Act. Buyer will not and will ensure that none of its Affiliates (including, after the Closing, the Company), acting separately or in concert, cause or engage in any Buyer Tax Act.

  
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 12. Miscellaneous. 
 12.1. Notices. All notices, requests, demands, claims and other communications required or permitted to be delivered, given or otherwise provided under this Agreement must be in writing and must be
delivered, given or otherwise provided: (1) by hand (in which case, it will be effective upon delivery); (2) by facsimile (in which case, it will be effective upon receipt of confirmation of good transmission); or (3) by overnight
delivery by a nationally recognized courier service (in which case, it will be effective on the Business Day after being deposited with such courier service); in each case, to the address (or facsimile number) listed below (or to a different address
or facsimile number given by a Party via notice in accordance with this Section 12.1 to the other Party): 
  

	 	(a)	If to the Buyer, to it at: 

 Conatus Pharmaceuticals Inc. 
 4365 Executive Drive, Suite 200

 San Diego, CA 92121 
 Facsimile number:     (858) 558-8920 

Attention:
                  Chief Executive Officer 
 with a copy to: 
 Latham & Watkins LLP 

12636 High Bluff Drive, Suite 400 

San Diego, CA 92130 
 Facsimile number:     (858) 523-5450 

Attention:
                  Scott N. Wolfe / Cheston J. Larson 
  

	 	(b)	If to the Seller, to it at: 

 Pfizer Inc. 
 234 East 42nd Street 

New York, NY 10017 
 Facsimile number:     (212) 573-0768 

Attention:
                  Senior Vice President and General Counsel 
 with a copy to: 
 Steven A. Wilcox 

Ropes & Gray LLP 
 One International Place 
 Boston, MA 02110 

Facsimile number:     617-235-0223 

  
 -43-

 12.2. Succession and Assignment; No Third-Party Beneficiary. Subject to the
immediately following sentence, this Agreement will be binding upon and inure to the benefit of the Parties and their respective permitted successors and permitted assigns, each of which such permitted successors and permitted assigns will be deemed
to be a Party for all purposes hereof. Neither Party may assign, delegate or otherwise transfer either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other Party. Notwithstanding
the foregoing, without the consent of the other Party, each Party may (a) assign any or all of its rights and interests hereunder to one or more of its Affiliates or any successor in interest to such Party by way of merger, acquisition, sale or
transfer of all or substantially all of the business and assets of such Party to which this Agreement relates, and (b) designate one or more of its Affiliates to perform its obligations hereunder, in each case, so long as the assigning Party is
not relieved of any Liability hereunder. Except as expressly provided herein, this Agreement is for the sole benefit of the Parties and their permitted successors and assignees and nothing herein expressed or implied will give or be construed to
give any Person, other than the Parties and such successors and assignees, any legal or equitable rights hereunder. 
 12.3.
Amendments and Waivers. No amendment or waiver of any provision of this Agreement will be valid and binding unless it is in writing and signed, in the case of an amendment, by the Buyer and the Seller, or in the case of a waiver, by the Party
against whom the waiver is to be effective. No waiver by any Party of any breach or violation or default under or inaccuracy in any representation, warranty or covenant hereunder, whether intentional or not, will be deemed to extend to any prior or
subsequent breach, violation, default under, or inaccuracy in, any such representation, warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence. No delay or omission on the part of
any Party in exercising any right, power or remedy under this Agreement will operate as a waiver thereof. 
 12.4. Entire
Agreement. This Agreement, together with the Ancillary Agreements and any documents, instruments and certificates explicitly referred to herein, constitutes the entire agreement among the Parties with respect to the subject matter hereof and
supersedes any and all prior discussions, negotiations, proposals, undertakings, understandings and agreements, whether written or oral, with respect thereto, except for the Confidentiality Agreement. 

12.5. Counterparts. This Agreement may be executed by facsimile and in any number of counterparts, each of which will be deemed an
original, but all of which together will constitute but one and the same instrument. This Agreement will become effective when duly executed by each Party. 
 12.6. Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction will not affect the validity or enforceability of the remaining
terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. In the event that any provision hereof would, under applicable Legal Requirements, be invalid or
unenforceable in any respect, each Party intends that such provision will be construed by modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible under, applicable Legal Requirements.

  
 -44-

 12.7. Headings. The headings contained in this Agreement are for convenience purposes
only and will not in any way affect the meaning or interpretation hereof. 
 12.8. Interpretation. Except as otherwise
explicitly specified to the contrary, (a) references to a section, exhibit or schedule means a section of, or schedule or exhibit to this Agreement, unless another agreement is specified, (b) the word “including” will be
construed as “including without limitation,” (c) references to a particular statute or regulation include all rules and regulations thereunder and any predecessor or successor statute, rules or regulation, in each case as amended or
otherwise modified from time to time, (d) words in the singular or plural form include the plural and singular form, respectively and (e) references to a particular Person include such Person’s successors and assigns to the extent not
prohibited by this Agreement. 
 12.9. Construction. The Parties have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the Parties and no presumption or burden of proof will arise favoring or disfavoring any Party by
virtue of the authorship of any of the provisions of this Agreement. 
 12.10. Governing Law. This Agreement, the rights
of the Parties and all Actions arising in whole or in part under or in connection herewith, will be governed by and construed in accordance with the domestic substantive Legal Requirements of the State of New York, without giving effect to any
choice or conflict of law provision or rule (other than Section 5-1401 and 5-1402 of the New York General Obligation Law) that would cause the application of the Legal Requirements of any other jurisdiction. 

12.11. Dispute Resolution. If a dispute arises under this Agreement which cannot be resolved by the Buyer and the Seller, prior to
initiating an Action, either Party may invoke the dispute resolution procedure set forth in this Section 12.11 by giving written notice to the other Party, designating an executive officer with appropriate authority to be its representative in
negotiations relating to the dispute. Upon receipt of such notice, the other Party will, within five days, designate an executive officer with similar authority to be its representative. The designated executive officers will, following whatever
investigation each deems appropriate, promptly enter into discussions concerning the dispute. Neither Party may commence an Action of any matter hereunder (other than injunctive or other equitable relief) until the expiration of thirty days after
its notice designating such executive officers. 
 12.12. Jurisdiction; Venue; Service of Process. 

12.12.1 Jurisdiction. Subject to the provisions of Section 10.4.5, each Party, by its execution hereof, (a) hereby
irrevocably submits to the exclusive jurisdiction of the United States District Court for the Southern District of New York or any New York state court sitting in New York, New York, United States of America for the purpose of any Action between the
Parties arising in whole or in part under or in connection with this Agreement, (b) hereby waives to the extent not prohibited by applicable Legal Requirements, and agrees not to assert, by way of motion, as a defense or otherwise, in any such
Action, any claim that it is not subject personally to the 

  
 -45-

 
jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such Action brought in one of the above-named courts should be dismissed on
grounds of forum non conveniens, should be transferred or removed to any court other than one of the above-named courts, or should be stayed by reason of the pendency of some other proceeding in any other court other than one of the
above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by such court and (c) hereby agrees not to commence any such Action other than before one of the above-named courts. Notwithstanding the previous
sentence, a Party may commence any Action in a court other than the above-named courts solely for the purpose of enforcing an order or judgment issued by one of the above-named courts. 

12.12.2 Venue. Each Party waives any claim and will not assert that venue should properly lie in any other location within the
selected jurisdiction. 
 12.12.3 Service of Process. Each Party hereby (a) consents to service of process in any
Action between the Parties arising in whole or in part under or in connection with this Agreement in any manner permitted by New York Legal Requirements, (b) agrees that service of process made in accordance with clause (a) of this
Section 12.12.3 or made by registered or certified mail, return receipt requested, at its address specified pursuant to Section 12.1, will constitute good and valid service of process in any such Action and (c) waives and agrees not
to assert (by way of motion, as a defense, or otherwise) in any such Action any claim that service of process made in accordance with clause (a) or (b) of this Section 12.12.3 does not constitute good and valid service of process.

 12.13. Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LEGAL REQUIREMENTS THAT CANNOT BE WAIVED, THE
PARTIES HEREBY WAIVE, AND COVENANT THAT THEY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE CONTEMPLATED
TRANSACTIONS, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND
BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS, AND SUCH PROCEEDING WILL INSTEAD BE TRIED IN A
COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY. 
 (The remainder of this page has been intentionally left
blank.) 

  
 -46-

 IN WITNESS WHEREOF, each of the Parties has caused its duly authorized representative to
execute this Agreement as of the Execution Date. 
  

			
	CONATUS PHARMACEUTICALS INC.
		
	By:	 	/s/ Steven J. Mento
		 	Name:  Steven J. Mento
		 	Title:    Pres & CEO

  

			
	PFIZER INC.
		
	By:	 	/s/ David Reid
		 	Name:  David Reid
		 	Title:    Assistant Secretary

  
 Signature Page
to Stock Purchase AgreementEX-10.2

 Exhibit 10.2 
 Execution Version 
 PROMISSORY NOTE 

 

			
	$1,000,000	  	Dated: July 29, 2010

 FOR VALUE RECEIVED, the undersigned Conatus Pharmaceuticals Inc., a Delaware corporation (together with
its permitted successors and assigns, “Maker”), hereby promises to pay to the order of Pfizer Inc., a Delaware corporation (together with its successors and any subsequent holder of this Promissory Note being referred to as
“Payee”), at its corporate offices at 235 East 42nd Street, New York, NY 10017, the principal sum of ONE MILLION DOLLARS ($1,000,000), together with accrued and unpaid interest thereon, on July 29, 2020, (the “Maturity
Date”). Interest on the principal of this Promissory Note from time to time outstanding will accrue daily from the date of this Promissory Note until this Promissory Note is paid in full at a per annum interest rate equal to seven percent,
compounded quarterly; provided, however, interest on all past due amounts will bear interest at a per annum interest rate equal to ten percent, compounded monthly. Interest on this Promissory Note will be payable quarterly in cash in arrears on the
first Business Day of each January, April, July and October, commencing on October 1, 2010, calculated at a rate per annum based upon the actual number of days elapsed over a year of 360 days. 

At any time prior to the Maturity Date, and after providing 15 days prior written notice to Payee, Maker will have the right to prepay,
in whole or part, the unpaid principal balance of this Promissory Note, together with accrued and unpaid interest thereon, without premium or penalty. Any such pre-payment will be applied first to the payment of accrued and unpaid interest on the
principal amount of this Promissory Note being pre-paid and the remainder, if any, will be applied to principal. 

Notwithstanding anything contained herein to the contrary, this Promissory Note is hereby expressly limited so that in no contingency or
event whatsoever, will the amount paid or agreed to be paid to Payee for the use, forbearance or detention of money exceed the highest lawful rate permissible under applicable law. If, from any circumstances whatsoever, Payee will ever receive as
interest hereunder an amount that would exceed the highest lawful rate applicable to Maker, such amount that would be excessive interest will be applied to the reduction of the unpaid principal balance of the indebtedness evidenced hereby and not to
the payment of interest, and if the principal amount of this Promissory Note is paid in full, any remaining excess will forthwith be paid to Maker, and in such event, Payee will not be subject to any penalties provided by any laws for contracting
for, charging, taking, reserving or receiving interest in excess of the highest lawful rate permissible under applicable law. 

Maker and each surety, endorser, guarantor, and other party now or hereafter liable for payment of this Promissory Note, severally waive
demand, presentment for payment, notice of dishonor, protest, notice of protest, diligence in collecting or bringing suit against any party liable hereon, and further agree to any and all extensions, renewals, modifications, partial payments and
substitutions of evidence of indebtedness with or without notice before or after demand by Payee for payment hereunder. All sums payable hereunder will be payable by Maker to Payee in lawful money of the United States of America and immediately
available funds. 

 In the event this Promissory Note is placed in the hands of any attorney for collection or
suit is filed hereon or if proceedings are had in bankruptcy, receivership, reorganization, or other legal or judicial proceedings for the collection hereof, Maker and any guarantor hereby jointly and severally agree to pay to Payee all expenses and
costs of collection, including, but not limited to, reasonable attorneys’ fees incurred in connection with any such collection, suit, or proceeding, in addition to the principal and interest then due. 

Time is of the essence with respect to all of Maker’s obligations and agreements under this Promissory Note. 

THIS PROMISSORY NOTE IS GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CHOICE OF LAW PRINCIPLES THEREOF, AND MAKER
CONSENTS TO JURISDICTION IN THE COURTS LOCATED IN NEW YORK CITY, NEW YORK. 
 All of the covenants, obligations, promises and
agreements contained in this Promissory Note made by Maker will be binding upon its permitted successors and assigns. Maker will not allow or cause this Promissory Note to be assumed, or assign, delegate or otherwise transfer this Promissory Note or
any of its rights, interests or obligations hereunder without the prior written consent of Payee. 
 The occurrence of any of
the following will constitute an “Event of Default” under this Promissory Note, upon which occurrence all the principal of and any accrued and unpaid interest on this Promissory Note will mature and become immediately due and
payable without further notice, demand or presentment for payment, together with all reasonable costs incurred by Payee in the enforcement and collection of this Promissory Note: 

(a) a Change of Control of Maker; 
 (b) Maker fails to pay when due any principal of this Promissory Note; 
 (b) Maker
fails to pay within ten days following the date when due any interest on, or other payment required under the terms of, this Promissory Note; 
 (c) Maker fails to provide Payee, within 60 days after the end of each fiscal quarter of Maker, unaudited balance sheets as of the end of such quarter (consolidated if applicable), and unaudited
statements of income or loss, retained earnings or deficit, cash flows and capital structure of Maker for such quarter, certified by Maker’s Chief Executive Officer or Chief Financial Officer to fairly present in all material respects the data
reflected therein; 
 (d) Maker fails to provide Payee, within 150 days after the end of each fiscal year of Maker, audited
balance sheets as of the end of such year (consolidated if applicable), 

  
 2 

 
and related statements of income or loss, retained earnings or deficit, cash flows and capital structure of Maker for such year, and accompanied by an audit report and opinion of the independent
certified public accountants of recognized national standing selected by Maker; 
 (e) Maker in any way (i) hypothecates or
creates or permits to exist any Lien with respect to any of its or its Subsidiaries’ property, except for Permitted Liens or (ii) sells, transfers, assigns, pledges, collaterally assigns, exchanges, or otherwise disposes of (collectively,
a “Transfer”), or permits any of its Subsidiaries to Transfer, all or any part of its business or property, other than Transfers: (A) of inventory in the ordinary course of business, (B) of non-exclusive licenses and
similar arrangements for the use of the property of Maker or its Subsidiaries in the ordinary course of business and licenses that are exclusive in certain respects (such as field of use or geographical territory) made in the ordinary course of
business that do not result in a transfer of title to the intellectual property that is the subject of such license under applicable law, (C) of worn-out or obsolete equipment, or (D) by Maker to its Subsidiaries in an aggregate amount not
to exceed $2,000,000 on an annual basis; 
 (f) Maker (i) pays any dividends or makes any distributions on its Equity
Securities, (ii) purchases, redeems, retires, defeases or otherwise acquires for value any of its Equity Securities (other than repurchases pursuant to the terms of employee stock purchase plans, employee restricted stock agreements or similar
arrangements approved by its Board of Directors), (iii) returns any capital to any holder of its Equity Securities as such, (iv) makes any distribution of assets, Equity Securities, obligations or securities to any holder of its Equity
Securities as such, or (v) sets apart any sum for any such purpose; provided, however, Maker may declare dividends payable solely in common stock; 
 (g) Maker creates, incurs, assumes or suffers to exist, or permits its Subsidiaries to create, incur, assume or suffer to exist any Indebtedness, other than Permitted Indebtedness; 

(h) Maker liquidates or dissolves or otherwise ceases to be a corporation validly existing and in good standing under the laws of its
state of incorporation; 
 (i) Maker fails to notify Payee of any event or condition that has had or could be reasonably
expected to have a Material Adverse Effect; 
 (j) Maker or any of its Subsidiaries fails to make any payment when due under the
terms of any Indebtedness to be paid by such Person (excluding this Promissory Note but including any other Indebtedness of Maker or any of its Subsidiaries to Payee) and such failure continues beyond any period of grace provided with respect
thereto, or defaults in the observance or performance of any other agreement, term or condition contained in any such Indebtedness, and the effect of such failure or default is to cause Indebtedness in an aggregate amount of $2,000,000 or more to
become due prior to its stated date of maturity; 

  
 3 

 (k) Maker or any of its Subsidiaries (i) apply for or consent to the appointment of a
receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) are unable, or admit in writing its inability, to pay its debts generally as they mature, (iii) make a general assignment for the
benefit of its or any of its creditors, (iv) are dissolved or liquidated in full or in part, (v) become insolvent (as such term may be defined or interpreted under any applicable statute), (vi) commence a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking
possession of its property by any official in an involuntary case or other proceeding commenced against it, or (vii) take any action for the purpose of affecting any of the foregoing; 

(l) Proceedings for the appointment of a receiver, trustee, liquidator or custodian of Maker or any of its Subsidiaries or of all or a
substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to Maker or any of its Subsidiaries or the debts thereof under any bankruptcy, insolvency or other
similar law now or hereafter in effect are commenced and an order for relief entered or such proceeding is not dismissed or discharged within 30 days of commencement; or 
 (m) A final judgment or order for the payment of money in excess of $1,000,000 is rendered against Maker or any of its Subsidiaries and the same remains undischarged for a period of 30 days during which
execution shall not be effectively stayed, or any judgment, writ, assessment, warrant of attachment, or execution or similar process shall be issued or levied against a substantial part of the property of Maker or any of its Subsidiaries and such
judgment, writ, or similar process is not released, stayed, vacated or otherwise dismissed within 30 days after issue or levy. 

The Holder acknowledges and agrees that the Indebtedness evidenced by this Promissory Note is subordinate to the Senior Secured
Convertible Promissory Notes issued pursuant to that certain Note and Warrant Purchase Agreement among Maker and the Investors named therein, dated as of March 5, 2010. 

  
 4 

 All notices and other communications required or permitted to be delivered, given or
otherwise provided under this Promissory Note must be in writing and must be delivered, given or otherwise provided: (1) by hand (in which case, it will be effective upon delivery); (2) by facsimile (in which case, it will be effective
upon receipt of confirmation of good transmission); or (3) by overnight delivery by a nationally recognized courier service (in which case, it will be effective on the Business Day after being deposited with such courier service); in each case,
to the address (or facsimile number) listed below: 
 If to Maker, to it at: 

Conatus Pharmaceuticals Inc. 
 4365 Executive Drive, Suite 200 
 San Diego, CA 92121 

Facsimile number: (858) 558-8920 

Attention: Chief Executive Officer 

with a copy to: 
 Latham & Watkins LLP 
 12636 High Bluff Drive, Suite 400

 San Diego, CA 92130 
 Facsimile number: (858) 523-5450 
 Attention: Scott N.
Wolfe/Cheston J. Larson 
 If to Payee, to it at: 

Pfizer Inc. 
 234 East 42nd Street 
 New York, NY 10017 

Facsimile number: (212) 573-0768 

Attention: Senior Vice President and General Counsel 

with a copy to: 
 Steven A. Wilcox 
 Ropes & Gray LLP 

One International Place 
 Boston, MA 02110 
 Facsimile number: 617-235-0223 

For purposes of this Promissory Note: 
 “Business Day” means any day on which commercial banks are not authorized or required to close in New York. 
 “Change of Control of Maker” means an event in which: (a) any other Person or group of Persons acting in concert (other than a Parent Entity of the Maker) acquires beneficial
ownership of securities of the Maker representing more than 50% of the voting power of the then outstanding securities of the Maker with respect to the election of directors of the Maker, other than the issuance of securities by Maker to such Person
or group of Persons primarily for capital raising purposes; or (b) the Maker enters into a merger, consolidation, scheme or arrangement or similar transaction with another Person, unless (i) the members of the Board of Directors of the
Maker immediately prior to such transaction constitute more than 50% of the members of the Board of Directors of the Maker (or a Parent Entity of the Maker) immediately following such transaction and
(ii)

  
 5 

 
the Persons who beneficially owned the outstanding voting securities of the Maker immediately prior to such transaction beneficially own securities of the Maker representing at least 50% of the
voting power with respect to the election of directors of the Maker immediately following such transaction, or a Parent Entity of the Maker beneficially owns securities of the Maker representing 100% of the voting power with respect to the election
of directors of the Maker immediately following such transaction; or (c) the Maker sells to any Person(s), in one or more related transactions, a majority of the property and assets of the Buyer. 

“Equity Securities” of any Person means (i) all common stock, preferred stock, participations, shares, partnership
interests, membership interests or other equity interests in and of such Person (regardless of how designated and whether or not voting or non-voting) and (ii) all warrants, options and other rights to acquire any of the foregoing. 

“Indebtedness” of any Person means and includes the aggregate amount of, without duplication (i) all obligations of
such Person for borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations of such Person to pay the deferred purchase price of property or services (other
than accounts payable incurred in the ordinary course of business determined in accordance with generally accepted accounting principles), (iv) all obligations under capital leases of such Person, (v) all obligations or liabilities of
others secured by a lien on any asset of such Person, whether or not such obligation or liability is assumed, (vi) all guaranties of such Person of the obligations of another Person, (vii) all obligations created or arising under any
conditional sale or other title retention agreement with respect to property acquired by such Person (even if the rights and remedies of the seller or lender under such agreement upon an event of default are limited to repossession or sale of such
property), (viii) net exposure under any interest rate swap, currency swap, forward, cap, floor or other similar contract that is not entered to in connection with a bona fide hedging operation that provides offsetting benefits to such Person,
which agreements shall be marked to market on a current basis, and (ix) all reimbursement and other payment obligations, contingent or otherwise, in respect of letters of credit. 

“Lien” means, with respect to any property, any security interest, mortgage, pledge, lien, claim, charge or other
encumbrance in, of, or on such property or the income therefrom, including, without limitation, the interest of a vendor or lessor under a conditional sale agreement, capital lease or other title retention agreement, or any agreement to provide any
of the foregoing, and the filing of any financing statement or similar instrument under the Uniform Commercial Code as in effect from time to time in the state of New York or comparable law of any jurisdiction. 

“Material Adverse Effect” means a material adverse effect on (i) the business, assets, operations, liabilities or
financial or other condition of Maker and its Subsidiaries, taken as a whole; (ii) the ability of Maker and its Subsidiaries to pay or perform the obligations in accordance with the terms of, and avoid an Event of Default under, this Promissory
Note; or (iii) the rights and remedies of Payee under this Promissory Note. 

  
 6 

 “Parent Entity” of the Maker means any Person that acquires directly or
indirectly, by merger or otherwise, the capital stock of the Maker if the holders of securities that represented 100% of the Voting Stock of the Maker immediately prior to such acquisition directly own 100% of the Voting Stock of the Parent Entity
immediately after such acquisition and in the exact same percentages as they owned Voting Stock in the Maker immediately prior to such acquisition. 
 “Permitted Indebtedness” means: (i) Indebtedness under that certain Note and Warrant Purchase Agreement among Maker and the Investors named therein, dated as of March 5, 2010,
or substantially similar agreements entered into in the future with Maker’s existing venture capital investors or their affiliates, in an aggregate principal amount not exceeding $20,000,000 outstanding at any time; (ii) Indebtedness
secured by a lien described in clause (vi)(A) of the defined term “Permitted Liens,” provided (A) such Indebtedness does not exceed the lesser of the cost or fair market value of the equipment financed with such Indebtedness and
(B) such Indebtedness does not exceed $5,000,000 in the aggregate at any given time; (iii) Subordinated Debt; (v) Indebtedness incurred for the acquisition of supplies or inventory on normal trade credit; (v) Indebtedness in
connection with a formula-based working capital line of credit with a bank or other institutional lender in which the amount of the Indebtedness does not exceed the amount of Maker’s accounts receivable shown on its balance sheet in accordance
with generally accepted accounting principles, provided that such accounts receivable balance is at least $10,000,000, and (vi) extensions, refinancings, modifications, amendments and restatements of any item of Permitted Indebtedness
(i) through (v) above. 
 “Permitted Liens” mean and include: (i) Liens in favor of Payee;
(ii) Liens securing Indebtedness under clause (i) of the definition of Permitted Indebtedness; (iii) Liens securing any Subordinated Debt; (iv) Liens of carriers, warehousemen, mechanics, materialmen, vendors, and landlords
incurred in the ordinary course of business for sums not overdue or being contested in good faith, provided provision is made to the reasonable satisfaction of Payee for the eventual payment thereof if subsequently found payable; (v) leases or
subleases and licenses or sublicenses granted in the ordinary course of Maker’s business; (vi) Liens (A) upon or in any equipment which was acquired or held by Maker or any of its Subsidiaries to secure the purchase price of such
equipment or indebtedness incurred solely for the purpose of financing the acquisition of such equipment, or (B) existing on such equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired
and improvements thereon, and the proceeds of such equipment; (vii) bankers’ liens, rights of setoff and similar Liens incurred on deposits made in the ordinary course of business; (viii) Liens arising from judgments, decrees or
attachments in circumstances not constituting an Event of Default; (ix) Liens for taxes or other Taxes not at the time delinquent or thereafter payable without penalty or being contested in good faith, provided provision is made to the
reasonable satisfaction of Payee for the eventual payment thereof if subsequently found payable; (x) Liens in favor of customs and revenue authorities arising as a matter of law to secure payments of customs duties in connection with the
importation of goods; (xi) Liens on insurance proceeds in favor of insurance companies granted solely as security for financed premiums; (xii) Liens on accounts receivable securing Indebtedness permitted

  
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under clause (iv) of the definition of Permitted Indebtedness, and (xiii) Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of
the type described in clauses (i) and (ii) above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness being extended,
renewed or refinanced does not increase. 
 “Person” means any individual or corporation, association,
partnership, limited liability company, joint venture, joint stock or other company, business trust, trust, organization, governmental authority or other entity of any kind. 
 “Stock Purchase Agreement” means that certain stock purchase agreement dated as of [—], 2010, between Maker and Payee. 

“Subordinated Debt” means any debt incurred by Maker, the payment, performance and security of and for which is fully
and completely subordinated in all respects to this Promissory Note on terms acceptable to Payee (and identified as being such by Maker and Payee). 
 “Subsidiary” of any Person means (i) any corporation of which more than 50% of the issued and outstanding equity securities having ordinary voting power to elect a majority of the
Board of Directors of such corporation (irrespective of whether at the time capital stock of any other class or classes of such corporation shall or might have voting power upon the occurrence of any contingency) is at the time directly or
indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries, (ii) any partnership, joint venture, or other association of which more than 50%
of the equity interest having the power to vote, direct or control the management of such partnership, joint venture or other association is at the time owned and controlled by such Person, by such Person and one or more of the other Subsidiaries or
by one or more of such Person’s other subsidiaries and (iii) any other Person included in the financial statements of such Person on a consolidated basis. Any reference to a Subsidiary without designation of the ownership of such
Subsidiary shall be deemed to refer to a Subsidiary of Maker. 
 “Taxes” shall mean any present or future tax,
levy, impost, duty, charge, fee, deduction or withholding of any nature and whatever called, by whomsoever, on whomsoever and wherever imposed, levied, collected, withheld or assessed, including interest, penalties, additions to tax and any similar
liabilities with respect thereto 
 “Voting Stock” means the capital stock of Maker that represents voting
power with respect to the election of directors. 
 MAKER’S OBLIGATION TO MAKE PAYMENTS UNDER THIS PROMISSORY NOTE IS
ABSOLUTE AND UNCONDITIONAL. MAKER WAIVES ANY AND ALL RIGHT OF SET-OFF, COUNTERCLAIM, DEDUCTION, WITHHOLDING, RECOUPMENT OR OTHER CLAIMS OR DEFENSES WITH RESPECT TO OR AGAINST THE PAYMENT OF AMOUNTS UNDER THIS

  
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PROMISSORY NOTE THAT MAKER MAY NOW OR HEREINAFTER HAVE AGAINST PAYEE OR ANY OTHER PERSON OR ENTITY, OR AGAINST ANY AMOUNTS UNDER THIS PROMISSORY NOTE. NOTWITHSTANDING THE FOREGOING, PURSUANT TO
SECTION 10.1.2(A) OF THE STOCK PURCHASE AGREEMENT, THE PAYEE MAY, IN ITS SOLE DISCRETION, ELECT TO OFFSET THE AMOUNT OF CERTAIN INDEMNIFIABLE LOSSES (AS DEFINED IN THE STOCK PURCHASE AGREEMENT) OWED TO A BUYER INDEMNIFIED PERSON (AS DEFINED IN
THE STOCK PURCHASE AGREEMENT) UNDER SECTION 10.1 OF THE STOCK PURCHASE AGREEMENT AGAINST THE RIGHT OF THE PAYEE TO RECEIVE ALL OR A PORTION OF THE PRINCIPAL OF OR INTEREST ON THIS PROMISSORY NOTE. 

IN WITNESS WHEREOF, the undersigned has executed this Promissory Note effective the day and year first written above. 

 

			
	CONATUS PHARMACEUTICALS INC.
		
	By:	 	  

		 	Name:
		 	Title:

  
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