Document:

EX-10.13

 Exhibit 10.13 

LEASE AGREEMENT 
 THIS
LEASE AGREEMENT (this “Lease”) is made this 31 day of March, 2014, between ARE-10933 NORTH TORREY PINES, LLC, a Delaware limited liability company (“Landlord”),
and AVIDITY NANOMEDICINES LLC, a Delaware limited liability company (“Tenant”). 
  

					
	Building:	  	10975 North Torrey Pines, La Jolla, CA 92037
		
	Premises:	  	That portion of the first floor of the Building, containing approximately 8,561 rentable square feet, as determined by Landlord, as shown on Exhibit A. 
		
	Project:	  	The real property on which the Building in which the Premises are located, together with all improvements thereon and appurtenances thereto as described on Exhibit B. 
		
	Base Rent:	  	$3.25 per rentable square foot of the Premises per month, subject to adjustment pursuant to Section 4 hereof.

 

					
			
	Rentable Area of Premises: 8,561 sq. ft.	  		  	
			
	Rentable Area of Building: 44,733 sq. ft.	  	Rentable Area of Project: 226,999 sq. ft.	  	
		
	Tenant’s Share of Operating Expenses of Building: 19.14%	  	
		
	Tenant’s Share of Operating Expenses of Project: 3.77%	  	
			
	Security Deposit: $27,823.25	  		  	
			
	Rent Adjustment Percentage: 3%	  	Target Commencement Date: July 1, 2014	  	

  

					
	Base Term:	  	Beginning on the Commencement Date and ending on November 30, 2017.
		
	Permitted Use:	  	Research and development laboratory, related office and other related uses consistent with the character of the Project and otherwise in compliance with the provisions of Section 7 hereof.

  

					
	Address for Rent Payment:	  	Landlord’s Notice Address:	  	
	P.O. Box 79840	  	 385 E. Colorado Boulevard, Suite 299
	  	
	Baltimore, MD 21279-0840	  	 Pasadena, CA 91101
	  	
		  	 Attention: Corporate Secretary
	  	
			
	 Tenant’s Notice Address:
	  		  	
	 10975 North Torrey Pines Road, Suite 150
	  		  	
	 La Jolla, CA 92037
	  		  	
	 Attention: Chief Business Officer
	  		  	

 The following Exhibits and Addenda are attached hereto and incorporated herein by this reference: 

 

					
	[X] EXHIBIT A - PREMISES DESCRIPTION	  	[X] EXHIBIT B - DESCRIPTION OF PROJECT	  	
	[X] EXHIBIT C - WORK LETTER	  	[X] EXHIBIT D - COMMENCEMENT DATE	  	
	[X] EXHIBIT E - RULES AND REGULATIONS	  	[X] EXHIBIT F - TENANT’S PERSONAL PROPERTY	  	
	[X] EXHIBIT G – INTENTIONALLY OMITTED	  	[X] EXHIBIT H - LANDLORD’S FURNITURE	  	

 1. Lease of Premises. Upon and subject to all of the terms and conditions hereof, Landlord
hereby leases the Premises to Tenant and Tenant hereby leases the Premises from Landlord. The portions of the Project which are for the non-exclusive use of tenants of the Project are collectively

 
referred to herein as the “Common Areas.” Landlord reserves the right to modify Common Areas, provided that such modifications do not materially adversely
affect Tenant’s use of the Premises for the Permitted Use. 
 2. Delivery; Acceptance of Premises; Commencement Date.
Landlord shall use reasonable efforts to deliver the Premises to Tenant on or before the Target Commencement Date, with Landlord’s Work Substantially Completed (“Delivery” or “Deliver”).
If Landlord fails to timely Deliver the Premises, Landlord shall not be liable to Tenant for any loss or damage resulting therefrom, and this Lease shall not be void or voidable except as provided herein. If Landlord does not Deliver the
Premises within 90 days of the Target Commencement Date for any reason other than Force Majeure delays and Tenant Delays, this Lease may be terminated by Landlord or Tenant by written notice to the other, and if so terminated by either: (a) the
Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of this Lease), shall be returned to Tenant, and (b) neither Landlord nor Tenant shall have any further
rights, duties or obligations under this Lease, except with respect to provisions which expressly survive termination of this Lease. As used herein, the terms “Landlord’s Work,” “Tenants’ Work,”
and “Force Majeure Delays” shall have the meanings set forth for such terms in the Work Letter. If neither Landlord nor Tenant elects to void this Lease within 10 business days of the lapse of such 90 day
period, such right to void this Lease shall be waived and this Lease shall remain in full force and effect; provided, however, that if Landlord does not Deliver the Premises within 150 days of the Target Commencement Date for any reason other than
Force Majeure delays and Tenant Delays, this Lease may be terminated by Tenant by written notice to Landlord, in which case subsections (a) and (b) of this paragraph shall apply. If Tenant does not elected to void this Lease within 10 business
days of the lapse of such 150 day period, such right to void this Lease shall be waived and this Lease shall remain in full force and effect. 

The “Commencement Date” shall be the earlier of: (i) the date Landlord Delivers the Premises to Tenant; or
(ii) the date Landlord could have Delivered the Premises but for Tenant Delays. The “Rent Commencement Date” shall be the date that is 2 months after the Commencement Date (i.e., Base Rent shall be abated for the
first two (2) months of the Base Term). Upon request of Landlord, Tenant shall execute and deliver a written acknowledgment of the Commencement Date, the Rent Commencement Date and the expiration date of the Term when such are established in
the form of the “Acknowledgement of Commencement Date” attached to this Lease as Exhibit D; provided, however, Tenant’s failure to execute and deliver such acknowledgment shall not affect Landlord’s rights
hereunder. The “Term” of this Lease shall be the Base Term, as defined above on the first page of this Lease. 

During the Term, Tenant shall have the right to use the furniture and equipment belonging to Landlord described on Exhibit H attached
to this Lease and located within the Premises on the Commencement Date (“Landlord’s Furniture”). Tenant shall have no right to remove any of Landlord’s Furniture from the Premises without
Landlord’s prior written consent and Landlord’s Furniture shall be returned to Landlord at the expiration or earlier termination of the Term in substantially the same condition as received by Tenant, except for ordinary wear and tear and
casualty. 
 Except as set forth in the Work Letter or otherwise expressly set forth in this Lease: (i) Tenant shall accept the
Premises and Landlord’s Furniture in their condition as of the Commencement Date; (ii) Landlord shall have no obligation for any defects in the Premises or Landlord’s Furniture; and (iii) Tenant’s taking possession of the
Premises and Landlord’s Furniture shall be conclusive evidence that Tenant accepts the Premises and Landlord’s Furniture. Any occupancy of the Premises by Tenant before the Commencement Date shall be subject to all of the terms and
conditions of this Lease, excluding the obligation to pay Base Rent. 
 For the period of 30 consecutive days after the Commencement Date,
Landlord shall, at its sole cost and expense (which shall not constitute an Operating Expense), be responsible for any repairs that are required to be made to the Building Systems serving the Premises, unless Tenant or any Tenant Party was
responsible for the cause of such repair, in which case Tenant shall pay the cost. 

 Except as otherwise expressly set forth in this Lease, Tenant agrees and acknowledges that
neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the condition of all or any portion of the Premises, Landlord’ Furniture or the Project, and/or the suitability of the Premises, Landlord’s
Furniture or the Project for the conduct of Tenant’s business, and Tenant waives any implied warranty that the Premises, Landlord’s Furniture or the Project are suitable for the Permitted Use. This Lease constitutes the complete agreement
of Landlord and Tenant with respect to the subject matter hereof and supersedes any and all prior representations, inducements, promises, agreements, understandings and negotiations which are not contained herein. Landlord in executing this Lease
does so in reliance upon Tenant’s representations, warranties, acknowledgments and agreements contained herein. 
 3.
Rent. 
 (a) Base Rent. Base Rent for the first full month after the Rent Commencement Date occurs and the Security
Deposit shall be due and payable on delivery of an executed copy of this Lease to Landlord. Tenant shall pay to Landlord in advance, without demand, abatement, deduction or set-off, monthly installments of
Base Rent on or before the first day of each calendar month during the Term hereof after the Rent Commencement Date, in lawful money of the United States of America, at the office of Landlord for payment of Rent set forth above, or to such other
person or at such other place as Landlord may from time to time designate in writing. Payments of Base Rent for any fractional calendar month shall be prorated. The obligation of Tenant to pay Base Rent and other sums to Landlord and the obligations
of Landlord under this Lease are independent obligations. Tenant shall have no right at any time to abate, reduce, or set-off any Rent (as defined in Section 5) due hereunder except for any
abatement as may be expressly provided in this Lease. 
 (b) Additional Rent. In addition to Base Rent, Tenant agrees to pay
to Landlord as additional rent (“Additional Rent”): (i) Tenant’s Share of “Operating Expenses” (as defined in Section 5), and (ii) any and all other amounts Tenant
assumes or agrees to pay under the provisions of this Lease, including, without limitation, any and all other sums that may become due by reason of any default of Tenant or failure to comply with the agreements, terms, covenants and conditions of
this Lease to be performed by Tenant, after any applicable notice and cure period. 
 4. Base Rent Adjustments. Base Rent
shall be increased on each annual anniversary of the first day of the first full month during the Term of this Lease (each an “Adjustment Date”) by multiplying the Base Rent payable immediately before such
Adjustment Date by the Rent Adjustment Percentage and adding the resulting amount to the Base Rent payable immediately before such Adjustment Date. Base Rent, as so adjusted, shall thereafter be due as provided herein. Base Rent adjustments for any
fractional calendar month shall be prorated. 
 5. Operating Expense Payments. Landlord shall deliver to Tenant a written
estimate of Operating Expenses for each calendar year during the Term (the “Annual Estimate”), which may be revised by Landlord from time to time during such calendar year. Commencing on the Commencement
Date and continuing thereafter on the first day of each month during the Term, Tenant shall pay Landlord an amount equal to 1112th of Tenant’s Share of the Annual Estimate. Payments for any fractional calendar month shall be prorated. 

The term “Operating Expenses” means all costs and expenses of any kind or description whatsoever incurred or
accrued each calendar year by Landlord with respect to the Building (including the Building’s Share of all costs and expenses of any kind or description incurred or accrued by Landlord with respect to the Project which are not specific to the
Building or any other building located in the Project) (including, without duplication, Taxes (as defined in Section 9), capital repairs and improvements amortized over the lesser of 10 years and the useful life of such capital items,
and the costs of Landlord’s third party property manager (not to exceed 3.0% of Base Rent) or, if there is no third party property manager, administration rent in the amount of 3.0% of Base Rent), excluding only: 

(a) the original construction costs of the Project and renovation prior to the date of the Lease and costs of correcting defects in such
original construction or renovation; 

 (b) capital expenditures for expansion of the Project; 

(c) interest, principal payments of Mortgage (as defined in Section 27) debts of Landlord, financing costs and amortization of
funds borrowed by Landlord, whether secured or unsecured; 
 (d) depreciation of the Project (except for capital improvements, the cost of
which are permitted pursuant to this Section 5 to be included in Operating Expenses); 
 (e) advertising, legal and space
planning expenses and leasing commissions and other costs and expenses incurred in procuring and leasing space to tenants for the Project, including any leasing office maintained in the Project, free rent and construction allowances for tenants;

 (f) legal and other expenses incurred in the negotiation or enforcement of leases; 

(g) completing, fixturing, improving, renovating, painting, redecorating or other work, which Landlord pays for or performs for other tenants
within their premises, and costs of correcting defects in such work; 
 (h) costs to be reimbursed by other tenants of the Project or third
parties, or Taxes to be paid directly by Tenant or other tenants of the Project, whether or not actually paid; 
 (i) salaries, wages,
benefits and other compensation paid to officers and employees of Landlord who are not assigned in whole or in part to the operation, management, maintenance or repair of the Project (which costs shall be prorated if such officers and employees are
assigned to the Project only in part in proportion to the amount of time spent by such employee on the Project); 
 (j) general
organizational, administrative and overhead costs relating to maintaining Landlord’s existence, either as a corporation, partnership, or other entity, including general corporate, legal and accounting expenses; 

(k) costs (including attorneys’ fees and costs of settlement, judgments and payments in lieu thereof) incurred in connection with
disputes with tenants, other occupants, or prospective tenants, and costs and expenses, including legal fees, incurred in connection with negotiations or disputes with employees, consultants, management agents, leasing agents, purchasers or
mortgagees of the Building; 
 (I) costs incurred by Landlord due to the violation by Landlord, its employees, agents or contractors or any
tenant of the terms and conditions of any lease of space in the Project or any Legal Requirement (as defined in Section 7); 

(m) penalties, fines or interest incurred as a result of Landlord’s inability or failure to make payment of Taxes and/or to file any tax
or informational returns when due, or from Landlord’s failure to make any payment of Taxes required to be made by Landlord hereunder before delinquency; 

(n) overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and/or services in or to the Project
to the extent the same exceeds the costs of such goods and/or services rendered by unaffiliated third parties on a competitive basis; 
 (o)
costs of Landlord’s charitable or political contributions, or of fine art maintained at the Project; 
 (p) costs in connection with
services (including electricity), items or other benefits of a type which are not standard for the Project and which are not available to Tenant without specific charges therefor, but which are provided to another tenant or occupant of the Project,
whether or not such other tenant or occupant is specifically charged therefor by Landlord; 

 (q) costs incurred in the sale or refinancing of the Project; 

(r) net income taxes of Landlord or the owner of any interest in the Project, franchise, capital stock, gift, estate or inheritance taxes or
any federal, state or local documentary taxes imposed against the Project or any portion thereof or interest therein; 
 (s) any costs
incurred to remove, study, test or remediate Hazardous Materials in or about the Building or the Project (provided, however, that the foregoing is in no event intended to limit Tenant’s obligations under Section 28 or
Section 30 of this Lease); 
 (t) costs of removing abandoned HVAC and other equipment and related pipes, conduit and fixtures
from the roof, or relocating antenna equipment of third parties unrelated to Tenant; 
 (u) reserves; 

(v) any expenses otherwise includable within Operating Expenses to the extent actually reimbursed by insurance (or would have been reimbursed
by insurance required to be carried by Landlord pursuant to Section 17); 
 (w) costs in connection with the Amenities (as
defined in Section 39) other than the Amenities Fee (as defined in Section 39) payable by Tenant pursuant to Section 39; 

(x) costs occasioned by condemnation; and 

(y) any expenses otherwise includable within Operating Expenses to the extent actually reimbursed by persons other than tenants of the Project
under leases for space in the Project; 
 Within 90 days after the end of each calendar year (or such longer period as may be reasonably
required), Landlord shall furnish to Tenant a statement (an “Annual Statement”) showing in reasonable detail: (a) the total and Tenant’s Share of actual Operating Expenses for the previous calendar year, and (b) the
total of Tenant’s payments in respect of Operating Expenses for such year. If Tenant’s Share of actual Operating Expenses for such year exceeds Tenant’s payments of Operating Expenses for such year, the excess shall be due and payable
by Tenant as Rent within 30 days after delivery of such Annual Statement to Tenant. If Tenant’s payments of Operating Expenses for such year exceed Tenant’s Share of actual Operating Expenses for such year Landlord shall pay the excess to
Tenant within 30 days after delivery of such Annual Statement, except that after the expiration, or earlier termination of the Term or if Tenant is delinquent in its obligation to pay Rent, Landlord shall pay the excess to Tenant after deducting all
other amounts due Landlord. 
 The Annual Statement shall be final and binding upon Tenant unless Tenant, within 90 days after Tenant’s
receipt thereof, shall contest any item therein by giving written notice to Landlord, specifying each item contested and the reason therefor. If, during such 90 day period, Tenant reasonably and in good faith questions or contests the accuracy of
Landlord’s statement of Tenant’s Share of Operating Expenses, Landlord will provide Tenant with access to Landlord’s books and records relating to the operation of the Project and such information as Landlord reasonably and in good
faith determines to be responsive to Tenant’s questions (the “Expense Information”). If after Tenant’s review of such Expense Information, Landlord and Tenant cannot agree upon the amount of Tenant’s
Share of Operating Expenses, then Tenant shall have the right to have an independent regionally recognized public accounting firm selected by Tenant, working pursuant to a fee arrangement other than a contingent fee (at Tenant’s sole cost and
expense) and approved by Landlord (which approval shall not be unreasonably withheld or delayed), audit and/or review the Expense Information for the year in question (the “Independent Review”). The results of any such
Independent Review shall be binding on Landlord and 

 
Tenant. If the Independent Review shows that the payments actually made by Tenant with respect to Operating Expenses for the calendar year in question exceeded Tenant’s Share of Operating
Expenses for such calendar year, Landlord shall at Landlord’s option either (i) credit the excess amount to the next succeeding installments of estimated Operating Expenses or (ii) pay the excess to Tenant within 30 days after
delivery of such statement, except that after the expiration or earlier termination of this Lease or if Tenant is delinquent in its obligation to pay Rent, Landlord shall pay the excess to Tenant after deducting all other amounts due Landlord. If
the Independent Review shows that Tenant’s payments with respect to Operating Expenses for such calendar year were less than Tenant’s Share of Operating Expenses for the calendar year, Tenant shall pay the deficiency to Landlord within 30
days after delivery of such statement. If the Independent Review shows that Tenant has overpaid with respect to Operating Expenses by more than 5%, then Landlord shall reimburse Tenant for all costs incurred by Tenant for the Independent Review.
Operating Expenses for the calendar years in which Tenant’s obligation to share therein begins and ends shall be prorated. Notwithstanding anything set forth herein to the contrary, if the Project is not at least 95% occupied on average during
any year of the Term, Tenant’s Share of Operating Expenses for such year with respect to Variable Operating Expenses shall be computed as though the Project had been 95% occupied on average during such year. “Variable Operating
Expenses” shall mean those Operating Expenses which vary by occupancy including, without limitation, electricity, trash removal and other Utilities (as defined in Section 11). 

“Tenant’s Share” shall be the percentage set forth on the first page of this Lease as Tenant’s Share as reasonably
adjusted by Landlord for changes in the physical size of the Premises or the Project occurring thereafter. Landlord may equitably increase Tenant’s Share for any item of expense or cost reimbursable by Tenant that relates to a repair,
replacement, or service that benefits only the Premises or only a portion of the Project that includes the Premises or that varies with occupancy or use. Base Rent, Tenant’s Share of Operating Expenses and all other amounts payable by Tenant to
Landlord hereunder are collectively referred to herein as “Rent.” 
 6. Security Deposit. Tenant shall deposit with
Landlord, upon delivery of an executed copy of this Lease to Landlord, a security deposit (the “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth on page 1 of this Lease,
which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit (the “Letter of Credit”): (i) in form and substance reasonably satisfactory to Landlord, (ii) naming Landlord as beneficiary,
(iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution reasonably satisfactory
to Landlord, and (v) redeemable by presentation of a sight draft in the State of California. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated
expiration date of any then current Letter of Credit, Landlord shall have the right to draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit. The
Security Deposit shall be held by Landlord as security for the performance of Tenant’s obligations under this Lease. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default.
Upon each occurrence of a Default (as defined in Section 20), Landlord may use all or any part of the Security Deposit to pay delinquent payments due under this Lease, future rent damages under California Civil Code Section 1951.2,
and the cost of any damage, injury, expense or liability caused by such Default, without prejudice to any other remedy provided herein or provided by law. Landlord’s right to use the Security Deposit under this Section 6 includes
the right to use the Security Deposit to pay future rent damages following the termination of this Lease pursuant to Section 21(c) below. Upon any use of all or any portion of the Security Deposit, Tenant shall pay Landlord on demand the
amount that will restore the Security Deposit to the amount set forth on Page 1 of this Lease. Tenant hereby waives the provisions of any law, now or hereafter in force, including, without limitation, California Civil Code Section 1950.7, which
provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim
those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor
proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of 

 
Rent and other charges due Landlord for periods prior to the filing of such proceedings. Upon any such use of all or any portion of the Security Deposit, Tenant shall, within 5 days after demand
from Landlord, restore the Security Deposit to its original amount. If Tenant shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to
which Landlord is entitled under the provisions of this Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within 60 days after the expiration or earlier termination of this
Lease. 
 If Landlord transfers its interest in the Project or this Lease, Landlord shall either (a) transfer, at Landlord’s
expense, any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this Section 6, or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the
deductions permitted herein. Upon such transfer to such transferee or the return of the Security Deposit to Tenant, Landlord shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security
Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit
is that of a debtor, not a trustee, and no interest shall accrue thereon. 
 7. Use. The Premises shall be used solely for the
Permitted Use set forth in the basic lease provisions on page 1 of this Lease, and in compliance with all laws, orders, judgments, ordinances, regulations, codes, directives, permits, licenses, covenants and restrictions now or hereafter applicable
to the Premises, and to the use and occupancy thereof, including, without limitation, the Americans With Disabilities Act, 42 U.S.C. § 12101, et seq. (together with the regulations promulgated pursuant thereto, “ADA”)
(collectively, “Legal Requirements” and each, a “Legal Requirement”). Tenant shall, upon 5 days’ written notice from Landlord, discontinue any use of the Premises which is declared by any Governmental Authority
(as defined in Section 9) having jurisdiction to be a violation of a Legal Requirement. Tenant will not use or permit the Premises to be used for any purpose or in any manner that would void Tenant’s or Landlord’s insurance,
increase the insurance risk, or cause the disallowance of any sprinkler or other credits. Tenant shall not permit any part of the Premises to be used as a “place of public accommodation”, as defined in the ADA or any similar legal
requirement. Tenant shall reimburse Landlord promptly upon demand for any additional premium charged for any such insurance policy by reason of Tenant’s failure to comply with the provisions of this Section or otherwise caused by Tenant’s
use and/or occupancy of the Premises. Tenant will use the Premises in a careful, safe and proper manner and will not commit or permit waste, overload the floor or structure of the Premises, subject the Premises to use that would damage the Premises
or obstruct or interfere with the rights of Landlord or other tenants or occupants of the Project, including conducting or giving notice of any auction, liquidation, or going out of business sale on the Premises, or using or allowing the Premises to
be used for any unlawful purpose. Tenant shall cause any equipment or machinery to be installed in the Premises so as to reasonably prevent sounds or vibrations from the Premises from extending into Common Areas, or other space in the Project.
Tenant shall not place any machinery or equipment which will overload the floor in or upon the Premises or transport or move such items through the Common Areas of the Project or in the Project elevators without the prior written consent of
Landlord, which consent shall not be unreasonably withheld. Except as may be provided under the Work Letter, Tenant shall not, without the prior written consent of Landlord, use the Premises in any manner which will require ventilation, air
exchange, heating, gas, steam, electricity or water beyond the existing capacity of the Project as proportionately allocated to the Premises based upon Tenant’s Share as usually furnished for the Permitted Use. 

Landlord shall be responsible for the compliance of the Common Areas of the Project (but not the Premises) with the Legal Requirements as of
the Commencement Date (including compliance of the Common Areas of the Project with Legal Requirements triggered by Landlord’s Work). Landlord shall, as an Operating Expense (to the extent such Legal Requirement is generally applicable to
similar buildings in the area in which the Project is located) make any alterations or modifications to the Project that are required by Legal Requirements, including the ADA, unless such alterations or modifications are triggered by reason of
Tenant’s, as compared to other tenants of the Project, particular use of the Premises or any Tenant Alterations, in which case Landlord shall make such alterations or modifications to the Project at

 
Tenant’s expense. Except as provided in the immediately preceding sentence, Tenant, at its sole expense, shall make any alterations or modifications to the interior or the exterior of the
Premises or the Project that are required by Legal Requirements (including, without limitation, compliance of the Premises with the ADA) related to Tenant’s particular use or occupancy of the Premises or any Tenant Alterations. Notwithstanding
any other provision herein to the contrary, Tenant shall be responsible for any and all demands, claims, liabilities, losses, costs, expenses, actions, causes of action, damages or judgments, and all reasonable expenses incurred in investigating or
resisting the same (including, without limitation, reasonable attorneys’ fees, charges and disbursements and costs of suit) (collectively, “Claims”) arising out of or in connection with Legal Requirements related to
Tenant’s particular use or occupancy of the Premises or any Tenant Alterations, and Tenant shall indemnify, defend, hold and save Landlord harmless from and against any and all Claims arising out of or in connection with any failure of the
Premises to comply with any Legal Requirement related to Tenant’s particular use or occupancy of the Premises or any Tenant Alterations. 

8. Holding Over. If, with Landlord’s express written consent, Tenant retains possession of the Premises after the termination of
the Term, (i) unless otherwise agreed in such written consent, such possession shall be subject to immediate termination by Landlord at any time, (ii) all of the other terms and provisions of this Lease (including, without limitation, the
adjustment of Base Rent pursuant to Section 4 hereof) shall remain in full force and effect (excluding any expansion or renewal option or other similar right or option) during such holdover period, (iii) Tenant shall continue to pay
Base Rent in the amount payable upon the date of the expiration or earlier termination of this Lease or such other amount as may be agreed upon by Landlord and Tenant in such written consent, and (iv) all other payments shall continue under the
terms of this Lease. If Tenant remains in possession of the Premises after the expiration or earlier termination of the Term without the express written consent of Landlord, (A) Tenant shall become a tenant at sufferance upon the terms of this
Lease except that the monthly rental shall be equal to 150% of Rent in effect during the last 30 days of the Term, and (B) Tenant shall be responsible for all damages suffered by Landlord resulting from or occasioned by Tenant’s holding
over, including consequential damages; provided, however, that Tenant shall not be liable for consequential damages in connection with a hold over of 30 days or less. No holding over by Tenant, whether with or without consent of Landlord, shall
operate to extend this Lease except as otherwise expressly provided, and this Section 8 shall not be construed as consent for Tenant to retain possession of the Premises. Acceptance by Landlord of Rent after the expiration of the Term or
earlier termination of this Lease shall not result in a renewal or reinstatement of this Lease. 
 9. Taxes. Landlord shall
pay, as part of Operating Expenses, all taxes, levies, fees, assessments and governmental charges of any kind, existing as of the Commencement Date or thereafter enacted (collectively referred to as “Taxes”), imposed by any federal,
state, regional, municipal, local or other governmental authority or agency, including, without limitation, quasi-public agencies (collectively, “Governmental Authority”) during the Term, including, without limitation, all Taxes:
(i) imposed on or measured by or based, in whole or in part, on rent payable to (or gross receipts received by) Landlord under this Lease and/or from the rental by Landlord of the Project or any portion thereof, or (ii) based on the square
footage, assessed value or other measure or evaluation of any kind of the Premises or the Project, or (iii) assessed or imposed by or on the operation or maintenance of any portion of the Premises or the Project, including parking, or
(iv) assessed or imposed by, or at the direction of, or resulting from Legal Requirements, or interpretations thereof, promulgated by any Governmental Authority, or (v) imposed as a license or other fee, charge, tax, or assessment on
Landlord’s business or occupation of leasing space in the Project. Landlord may contest by appropriate legal proceedings the amount, validity, or application of any Taxes or liens securing Taxes. Notwithstanding anything to the contrary
contained herein, Landlord shall only charge Tenant for assessments as if those assessments were paid by Landlord over the longest possible term which Landlord is permitted to pay for the applicable assessments without additional charge other than
interest, if any, provided under the terms of the underlying assessments. Taxes shall not include any net income taxes, franchise taxes, capital levy taxes, transfer taxes. excess profits taxes, estate taxes, succession taxes or inheritance taxes
imposed on Landlord except to the extent such net income taxes are in substitution for any Taxes payable hereunder. If any such Tax is levied or assessed directly against Tenant, then Tenant shall be responsible for and shall pay the same at such
times and in such manner as the taxing authority shall 

 
require. Tenant shall pay, prior to delinquency, any and all Taxes levied or assessed against any personal property or trade fixtures placed by Tenant in the Premises, whether levied or assessed
against Landlord or Tenant. If any Taxes on Tenant’s personal property or trade fixtures are levied against Landlord or Landlord’s property, or if the assessed valuation of the Project is increased by a value attributable to improvements
in or alterations to the Premises, whether owned by Landlord or Tenant and whether or not affixed to the real property so as to become a part thereof, higher than the base valuation on which Landlord from time-to-time allocates Taxes to all tenants in the Project, Landlord shall have the right, but not the obligation, to pay such Taxes. Landlord’s determination of any excess assessed valuation shall be
binding and conclusive, absent manifest error. The amount of any such payment by Landlord shall constitute Additional Rent due from Tenant to Landlord immediately upon demand. 

10. Parking. Subject to Force Majeure, a Taking (as defined in Section 19 below) and the exercise by Landlord of its
rights hereunder, Tenant shall have the right at no charge during the Base Term, in common with other tenants of the Project pro rata in accordance with the rentable area of the Premises and the rentable areas of the Project occupied by such other
tenants, to park in those areas designated for non-reserved parking, subject in each case to Landlord’s rules and regulations at no additional cost during the Term. Landlord may allocate parking spaces
among Tenant and other tenants in the Project pro rata as described above if Landlord determines that such parking facilities are becoming crowded. As of the date of this Lease, Tenant’s pro rata share of parking is equal to 2.5 parking spaces
per 1,000 rentable square feet of the Premises. Two (2) of the parking spaces which Tenant is entitled to use pursuant to the first sentence of this Section 10 shall be marked as being reserved for Tenant in a manner consistent with
Landlord’s program at the Project with respect to the reservation of parking spaces. Landlord shall not be responsible for enforcing Tenant’s parking rights against any third parties, including other tenants of the Project or for enforcing
any reservation of parking spaces. 
 11. Utilities, Services. Landlord shall provide, subject to the terms of this
Section 11, water, electricity, heat, light, power, sewer, and other utilities (including gas and fire sprinklers to the extent the Project is plumbed for such services), and, with respect to the Common Areas only, refuse and trash
collection and janitorial services (collectively, “Utilities”). Landlord shall pay, as Operating Expenses or subject to Tenant’s reimbursement obligation, for all Utilities used on the Premises, all maintenance charges for
Utilities, and any storm sewer charges or other similar charges for Utilities imposed by any Governmental Authority or Utility provider, and any taxes, penalties, surcharges or similar charges thereon. Landlord may cause, at Landlord’s expense
(unless such separate metering is reasonably determined by Landlord to be needed as a result of Tenant’s use of more than its pro rata share of Utilities), any Utilities to be separately metered or charged directly to Tenant by the provider.
Tenant shall pay directly to the Utility provider, prior to delinquency, any separately metered Utilities and services which may be furnished to Tenant or the Premises during the Term. Tenant shall pay, as part of Operating Expenses, its share of
all charges for jointly metered Utilities based upon consumption, as reasonably determined by Landlord. No interruption or failure of Utilities, from any cause whatsoever other than Landlord’s willful misconduct, shall result in eviction or
constructive eviction of Tenant, termination of this Lease or the abatement of Rent. Tenant agrees to limit use of water and sewer with respect to Common Areas to normal restroom use. Tenant shall be responsible for obtaining and paying for its own
janitorial services for the Premises. HVAC shall be available to the laboratory portions of the Premises 24 hours a day, 7 days per week, except in the case of emergencies, as the result of Legal Requirements, the performance by Landlord of any
installation, maintenance or repairs, or any other temporary interruptions, and otherwise subject to the terms of this Lease. 

Landlord’s sole obligation for either providing emergency generators or providing emergency
back-up power to Tenant shall be: (i) to provide emergency generators with not less than the capacity of the emergency generators located in the Building as of the date hereof, and (ii) to contract
with a third party to maintain the emergency generators as per the manufacturer’s standard maintenance guidelines. Landlord shall have no obligation to provide Tenant with operational emergency generators or
back-up power or to supervise, oversee or confirm that the third party maintaining the emergency generators is maintaining the generators as per the manufacturer’s standard guidelines or otherwise. During
any period of replacement, repair or maintenance of the emergency generators when the emergency generators are not operational, including any delays thereto due to the inability to obtain parts or 

 
replacement equipment, Landlord shall have no obligation to provide Tenant with an alternative back-up generator or generators or alternative sources of back-up power. Tenant expressly acknowledges and agrees that Landlord does not guaranty that such emergency generators will be operational at all times or that emergency power will be available to the Premises when
needed. Notwithstanding anything to the contrary contained herein, Landlord shall, at least once per calendar quarter as part of the maintenance of the Building, run the emergency generator for a period reasonably determined by Landlord for the
purpose of determining whether it operates when started. 
 12. Alterations and Tenant’s Property. Any alterations,
additions, or improvements made to the Premises by or on behalf of Tenant (other than the initial Tenant Improvements (as defined in the Work Letter) which shall be governed by the Work Letter), including additional locks or bolts of any kind or
nature upon any doors or windows in the Premises, but excluding installation, removal or realignment of furniture systems (other than removal of furniture systems owned or paid for by Landlord) not involving any modifications to the structure or
connections (other than by ordinary plugs or jacks) to Building Systems (as defined in Section 13) (“Alterations”) shall be subject to Landlord’s prior written consent, which may be given or withheld in
Landlord’s sole discretion if any such Alteration affects the structure or Building Systems and shall not be otherwise unreasonably withheld. Tenant may construct nonstructural Alterations in the Premises without Landlord’s prior approval
if the aggregate cost of all such work in any 12 month period does not exceed $15,000 (a “Notice-Only Alteration”), provided Tenant notifies Landlord in writing of such intended Notice-Only Alteration, and such notice shall be
accompanied by plans, specifications, work contracts and such other information concerning the nature and cost of the Notice-Only Alteration as may be reasonably requested by Landlord, which notice and accompanying materials shall be delivered to
Landlord not less than 15 business days in advance of any proposed construction. If Landlord approves any Alterations, Landlord may impose such conditions on Tenant in connection with the commencement, performance and completion of such Alterations
as Landlord may deem appropriate in Landlord’s reasonable discretion. Any request for approval shall be in writing, delivered not less than 15 business days in advance of any proposed construction, and accompanied by plans, specifications, bid
proposals, work contracts and such other information concerning the nature and cost of the alterations as may be reasonably requested by Landlord, including the identities and mailing addresses of all persons performing work or supplying materials.
Landlord’s right to review plans and specifications and to monitor construction shall be solely for its own benefit, and Landlord shall have no duty to ensure that such plans and specifications or construction comply with applicable Legal
Requirements. Tenant shall cause, at its sole cost and expense, all Alterations to comply with insurance requirements and with Legal Requirements and shall implement at its sole cost and expense any alteration or modification required by Legal
Requirements as a result of any Alterations. Tenant shall pay to Landlord, as Additional Rent, on demand an amount equal to 3% of all charges incurred by Tenant or its contractors or agents in connection with any Alteration to cover Landlord’s
overhead and expenses for plan review, coordination, scheduling and supervision. Before Tenant begins any Alteration, Landlord may post on and about the Premises notices of non-responsibility pursuant to
applicable law. Tenant shall reimburse Landlord for, and indemnify and hold Landlord harmless from, any expense incurred by Landlord by reason of faulty work done by Tenant or its contractors, delays caused by such work, or inadequate cleanup. 

Tenant shall furnish security or make other arrangements reasonably satisfactory to Landlord to assure payment for the completion of all
Alterations work free and clear of liens, and shall provide (and cause each contractor or subcontractor to provide) certificates of insurance for workers’ compensation and other coverage in amounts and from an insurance company satisfactory to
Landlord protecting Landlord against liability for personal injury or property damage during construction. Upon completion of any Alterations, Tenant shall deliver to Landlord: (i) sworn statements setting forth the names of all contractors and
subcontractors who did the work and final lien waivers from all such contractors and subcontractors; and (ii) “as built” plans for any such Alteration. 

Except for Removable Installations (as hereinafter defined), all Installations (as hereinafter defined) shall be and shall remain the property
of Landlord during the Term and following the expiration or earlier termination of the Term, shall not be removed by Tenant at any time during the Term, and shall remain upon and be surrendered with the Premises as a part thereof. Notwithstanding
the foregoing, 

 
Landlord may, at the time its approval of any such Installation is requested, or at the time it receives notice of a Notice-Only Alteration, notify Tenant that Landlord requires that Tenant
remove such Installation upon the expiration or earlier termination of the Term, in which event Tenant shall remove such Installation in accordance with the immediately succeeding sentence. Upon the expiration or earlier termination of the Term,
Tenant shall remove (i) all wires, cables or similar equipment which Tenant has installed in the Premises or in the risers or plenums of the Building, (ii) any Installations for which Landlord has given Tenant notice of removal in
accordance with the immediately preceding sentence, and (iii) all of Tenant’s Property (as hereinafter defined), and Tenant shall restore and repair any damage caused by or occasioned as a result of such removal, including, without
limitation, capping off all such connections behind the walls of the Premises and repairing any holes. During any restoration period beyond the expiration or earlier termination of the Term, Tenant shall pay Rent to Landlord as provided herein as if
said space were otherwise occupied by Tenant. If Landlord is requested by Tenant or any lender, lessor or other person or entity claiming an interest in any of Tenant’s Property to waive any lien Landlord may have against any of Tenant’s
Property, and Landlord consents to such waiver, then Landlord shall be entitled to be paid as administrative rent a fee of $1,000 per occurrence for its time and effort in preparing and negotiating such a waiver of lien. 

Tenant shall not be required to remove the Tenant Improvements at the expiration or earlier termination of the Term nor shall Tenant have the
right to remove any of the Tenant Improvements at any time. 
 For purposes of this Lease, (x) “Removable Installations”
means any items listed on Exhibit F attached hereto and any items agreed by Landlord in writing to be included on Exhibit F in the future, (y) “Tenant’s Property” means Removable Installations and, other than
Installations, any personal property or equipment of Tenant that may be removed without material damage to the Premises, and (z) “Installations” means all property of any kind paid for with the TI Fund, all Alterations, all
fixtures, and all partitions, hardware, built-in machinery, built-in casework and cabinets and other similar additions, equipment, property and improvements built into
the Premises so as to become an integral part of the Premises, including, without limitation, fume hoods which penetrate the roof or plenum area, built-in cold rooms,
built-in warm rooms, walk-in cold rooms, walk-in warm rooms, deionized water systems, glass washing equipment, autoclaves,
chillers, built-in plumbing, electrical and mechanical equipment and systems, and any power generator and transfer switch. 

13. Landlord’s Repairs. Landlord, as an Operating Expense (except to the extent the cost thereof is excluded from Operating
Expenses pursuant to Section 5 hereof), shall maintain all of the structural, exterior, parking and other Common Areas of the Project, including HVAC, plumbing, fire sprinklers, elevators and all other building systems serving the
Premises and other portions of the Project (“Building Systems”), in good repair, reasonable wear and tear and uninsured losses and damages caused by Tenant, or by any of Tenant’s agents, servants, employees, invitees and
contractors (collectively, “Tenant Parties”) excluded. Losses and damages caused by Tenant or any Tenant Party shall be repaired by Landlord, to the extent not covered by insurance, at Tenant’s sole cost and expense. Landlord
reserves the right to temporarily stop Building Systems services when necessary (i) by reason of accident or emergency, or (ii) for planned repairs, alterations or improvements, which are, in the judgment of Landlord, necessary to be made,
until said repairs, alterations or improvements shall have been completed. Landlord shall have no responsibility or liability for failure to supply Building Systems services during any such period of interruption; provided, however, that
Landlord shall, except in case of emergency, make a commercially reasonable effort to give Tenant 48 hours advance notice of any planned stoppage of Building Systems services for routine maintenance, repairs, alterations or improvements. Tenant
shall promptly give Landlord written notice of any repair required by Landlord pursuant to this Section, after which Landlord shall make a commercially reasonable effort to effect such repair. Landlord shall use reasonable efforts to minimize
interference with Tenant’s operations in the Premises during such planned stoppages of Building Systems. Landlord shall not be liable for any failure to make any repairs or to perform any maintenance unless such failure shall persist for an
unreasonable time after Tenant’s written notice of the need for such repairs or maintenance. Tenant waives its rights under any state or local law to terminate this Lease or to make such repairs at Landlord’s expense and agrees that the
parties’ respective rights with respect to such matters shall be solely as set forth herein. Repairs required as the result of fire, earthquake, flood, vandalism, war, or similar cause of damage or destruction shall be controlled by
Section 18. 

 14. Tenant’s Repairs. Subject to Section 13 hereof, Tenant, at its
expense, shall repair, replace and maintain in good condition all portions of the Premises, including, without limitation, entries, doors, ceilings, interior windows, interior walls, and the interior side of demising walls. Should Tenant fail to
make any such repair or replacement or fail to maintain the Premises, Landlord shall give Tenant notice of such failure. If Tenant fails to commence cure of such failure within 10 days of Landlord’s notice, and thereafter diligently prosecute
such cure to completion, Landlord may perform such work and shall be reimbursed by Tenant within 10 days after demand therefor; provided, however, that if such failure by Tenant creates or could create an emergency (i.e., a circumstance which poses
an imminent threat of harm to persons or substantial property damage), Landlord may immediately commence cure of such failure and shall thereafter be entitled to recover the costs of such cure from Tenant. Subject to Sections 17 and
18, Tenant shall bear the full uninsured cost of any repair or replacement to any part of the Project that results from damage caused by Tenant or any Tenant Party and any repair that benefits only the Premises. 

15. Mechanic’s Liens. Tenant shall discharge, by bond or otherwise, any mechanic’s lien filed against the Premises or against
the Project for work claimed to have been done for, or materials claimed to have been furnished to, Tenant within 15 days after the filing thereof, at Tenant’s sole cost and shall otherwise keep the Premises and the Project free from any liens
arising out of work performed, materials furnished or obligations incurred by Tenant. Should Tenant fail to discharge any lien described herein, Landlord shall have the right, but not the obligation, to pay such claim or post a bond or otherwise
provide security to eliminate the lien as a claim against title to the Project and the cost thereof shall be immediately due from Tenant as Additional Rent. If Tenant shall lease or finance the acquisition of office equipment, furnishings, or other
personal property of a removable nature utilized by Tenant in the operation of Tenant’s business, Tenant warrants that any Uniform Commercial Code Financing Statement filed as a matter of public record by any lessor or creditor of Tenant will
upon its face or by exhibit thereto indicate that such Financing Statement is applicable only to removable personal property of Tenant located within the Premises. In no event shall the address of the Project be furnished on the statement without
qualifying language as to applicability of the lien only to removable personal property, located in an identified suite held by Tenant. 

16. Indemnification. Tenant hereby indemnifies and agrees to defend, save and hold Landlord harmless from and against any and all
Claims for injury or death to persons or damage to property occurring within or about the Premises, arising directly or indirectly out of use or occupancy of the Premises or a breach or default by Tenant in the performance of any of its obligations
hereunder, except to the extent caused by the willful misconduct or negligence of Landlord. Landlord shall not be liable to Tenant for, and Tenant assumes all risk of damage to, personal property (including, without limitation, loss of records kept
within the Premises). Tenant further waives any and all Claims for injury to Tenant’s business or loss of income relating to any such damage or destruction of personal property (including, without limitation, any loss of records). Landlord
shall not be liable for any damages arising from any act, omission or neglect of any tenant in the Project or of any other third party. 

17. Insurance. Landlord shall maintain all risk property and, if applicable, sprinkler damage insurance covering the full replacement
cost of the Project. Landlord shall further procure and maintain commercial general liability insurance with a single loss limit of not less than $2,000,000 for bodily injury and property damage with respect to the Project. Landlord may, but is not
obligated to, maintain such other insurance and additional coverages as it may deem necessary, including, but not limited to, flood, environmental hazard and earthquake, loss or failure of building equipment, errors and omissions, rental loss during
the period of repair or rebuilding, workers’ compensation insurance and fidelity bonds for employees employed to perform services and insurance for any improvements installed by Tenant or which are in addition to the standard improvements
customarily furnished by Landlord without regard to whether or not such are made a part of the Project. All such insurance shall be included as part of the Operating Expenses. The Project may be included in a blanket policy (in which case the cost
of such insurance allocable to the Project will be determined by Landlord based upon the insurer’s cost calculations). Tenant shall also reimburse Landlord for any increased premiums or additional insurance which Landlord reasonably deems
necessary as a result of Tenant’s use of the Premises. 

 Tenant, at its sole cost and expense, shall maintain during the Term: all risk property
insurance with business interruption and extra expense coverage, covering the full replacement cost of all property and improvements installed or placed in the Premises by Tenant at Tenant’s expense; workers’ compensation insurance with no
less than the minimum limits required by law; employer’s liability insurance with such limits as required by law; and commercial general liability insurance, with a minimum limit of not less than $2,000,000 per occurrence for bodily injury and
property damage with respect to the Premises. The commercial general liability insurance policy shall name Alexandria Real Estate Equities, Inc., and Landlord, its officers, directors, employees, managers, agents, and contractors (collectively,
“Landlord Parties”), as additional insureds; insure on an occurrence and not a claims-made basis; be issued by insurance companies which have a rating of not less than policyholder rating of A and financial category rating of at
least Class IX in “Best’s Insurance Guide”; contain a hostile fire endorsement and a contractual liability endorsement; and provide primary coverage to Landlord (any policy issued to Landlord providing duplicate or similar
coverage shall be deemed excess over Tenant’s policies). Tenant shall (i) provide Landlord with 30 days’ advance written notice of cancellation of such commercial general liability policy, and (ii) require Tenant’s insurer
to endeavor to provide 10 days’ advance written notice of cancellation of such commercial general liability policy. Certificates of insurance showing the limits of coverage required hereunder and showing Landlord as an additional insured, along
with reasonable evidence of the payment of premiums for the applicable period, shall be delivered to Landlord by Tenant upon commencement of the Term and upon each renewal of said insurance. Tenant’s policy may be a “blanket policy”
with an aggregate per location endorsement which specifically provides that the amount of insurance shall not be prejudiced by other losses covered by the policy. Tenant shall, at least 5 days prior to the expiration of such policies, furnish
Landlord with renewal certificates. 
 In each instance where insurance is to name Landlord as an additional insured, Tenant shall upon
written request of Landlord also designate and furnish certificates so evidencing Landlord as additional insured to: (i) any lender of Landlord holding a security interest in the Project or any portion thereof, (ii) the landlord under any
lease wherein Landlord is tenant of the real property on which the Project is located, if the interest of Landlord is or shall become that of a tenant under a ground or other underlying lease rather than that of a fee owner, and/or (iii) any
management company retained by Landlord to manage the Project. 
 The property insurance obtained by Landlord and Tenant shall include a
waiver of subrogation by the insurers and all rights based upon an assignment from its insured, against Landlord or Tenant, and their respective officers, directors, employees, managers, agents, invitees and contractors (“Related
Parties”), in connection with any loss or damage thereby insured against. Neither party nor its respective Related Parties shall be liable to the other for loss or damage caused by any risk insured against under property insurance required
to be maintained hereunder, and each party waives any claims against the other party, and its respective Related Parties, for such loss or damage. The failure of a party to insure its property shall not void this waiver. Landlord and its respective
Related Parties shall not be liable for, and Tenant hereby waives all claims against such parties for, business interruption and losses occasioned thereby sustained by Tenant or any person claiming through Tenant resulting from any accident or
occurrence in or upon the Premises or the Project from any cause whatsoever. If the foregoing waivers shall contravene any law with respect to exculpatory agreements, the liability of Landlord or Tenant shall be deemed not released but shall be
secondary to the other’s insurer. 
 Landlord may require insurance policy limits to be raised to conform with requirements of
Landlord’s lender and/or to bring coverage limits to levels then being generally required of new tenants within the Project; provided, however, that the increased amount of coverage is consistent with coverage amounts then being required by
institutional owners of similar projects with tenants occupying similar size premises in the geographical area in which the Project is located. 

 18. Restoration. If, at any time during the Term, the Project or the Premises are
damaged or destroyed by a fire or other casualty, Landlord shall notify Tenant within 60 days after discovery of such damage as to the amount of time Landlord reasonably estimates it will take to restore the Project or the Premises, as applicable
(the “Restoration Period”). If the Restoration Period is estimated to exceed 6 months (the “Maximum Restoration Period”), Landlord may, in such notice, elect to terminate this Lease as of the date that is 75 days
after the date of discovery of such damage or destruction; provided, however, that notwithstanding Landlord’s election to restore, Tenant may elect to terminate this Lease by written notice to Landlord delivered within 10 business days
of receipt of a notice from Landlord estimating a Restoration Period for the Premises longer than the Maximum Restoration Period. Unless either Landlord or Tenant so elects to terminate this Lease, Landlord shall, subject to receipt of sufficient
insurance proceeds (with any deductible to be treated as a current Operating Expense), promptly restore the Premises (excluding the improvements installed by Tenant or by Landlord and paid for by Tenant, subject to delays arising from the collection
of insurance proceeds, from Force Majeure events or as needed to obtain any license, clearance or other authorization of any kind required to enter into and restore the Premises issued by any Governmental Authority having jurisdiction over the use,
storage, handling, treatment, generation, release, disposal, removal or remediation of Hazardous Materials (as defined in Section 30) in, on or about the Premises (collectively referred to herein as “Hazardous Materials
Clearances”); provided, however, that if repair or restoration of the Premises is not substantially complete as of the end of the Maximum Restoration Period or, if longer, the Restoration Period, Landlord may, in its sole and
absolute discretion, elect not to proceed with such repair and restoration, or Tenant may by written notice to Landlord delivered within 10 business days of the expiration of the Maximum Restoration Period or, if longer, the Restoration Period,
elect to terminate this Lease, in which event Landlord and Tenant shall be relieved of their respective obligations hereunder to make repairs or restoration and this Lease shall terminate as of the date that is 75 days after the later of:
(i) discovery of such damage or destruction, or (ii) the date all required Hazardous Materials Clearances are obtained, but Landlord shall retain any Rent paid and the right to any Rent payable by Tenant prior to such election by Landlord
or Tenant. 
 Tenant, at its expense, shall promptly perform, subject to delays arising from the collection of insurance proceeds, from
Force Majeure (as defined in Section 34) events or to obtain Hazardous Material Clearances, all repairs or restoration not required to be done by Landlord within the Premises and shall promptly
re-enter the Premises and commence doing business in accordance with this Lease. Notwithstanding the foregoing, either Landlord or Tenant may terminate this Lease upon written notice to the other if the
Premises are damaged during the last year of the Term and Landlord reasonably estimates that it will take more than 2 months to repair such damage; provided, however, that such notice is delivered within 10 business days after the date that Landlord
provides Tenant with written notice of the estimated Restoration Period. Landlord shall also have the right to terminate this Lease if insurance proceeds are not available for such restoration. Rent shall be abated from the date all required
Hazardous Material Clearances are obtained until the Premises are repaired and restored, in the proportion which the area of the Premises, if any, which is not usable by Tenant bears to the total area of the Premises, unless Landlord provides Tenant
with other space during the period of repair that is suitable for the temporary conduct of Tenant’s business. In the event that no Hazardous Material Clearances are required to be obtained by Tenant with respect to the Premises, rent abatement
shall commence on the date of discovery of the damage or destruction. Such abatement shall be the sole remedy of Tenant, and except as provided in this Section 18, Tenant waives any right to terminate the Lease by reason of damage or
casualty loss. 
 The provisions of this Lease, including this Section 18, constitute an express agreement between Landlord and
Tenant with respect to any and all damage to, or destruction of, all or any part of the Premises, or any other portion of the Project, and any statute or regulation which is now or may hereafter be in effect shall have no application to this Lease
or any damage or destruction to all or any part of the Premises or any other portion of the Project, the parties hereto expressly agreeing that this Section 18 sets forth their entire understanding and agreement with respect to such
matters. 
 19. Condemnation. If the whole or any material part of the Premises or the Project is taken for any public or
quasi-public use under governmental law, ordinance, or regulation, or by right of eminent 

 
domain, or by private purchase in lieu thereof (a “Taking” or “Taken”), and the Taking would in Landlord’s reasonable judgment, either prevent or materially
interfere with Tenant’s use of the Premises or materially interfere with or impair Landlord’s ownership or operation of the Project, then upon written notice by Landlord this Lease shall terminate and Rent shall be apportioned as of said
date. If part of the Premises shall be Taken, and this Lease is not terminated as provided above, Landlord shall promptly restore the Premises and the Project as nearly as is commercially reasonable under the circumstances to their condition prior
to such partial Taking and the rentable square footage of the Building, the rentable square footage of the Premises, Tenant’s Share of Operating Expenses and the Rent payable hereunder during the unexpired Term shall be reduced to such extent
as may be fair and reasonable under the circumstances. Upon any such Taking, Landlord shall be entitled to receive the entire price or award from any such Taking without any payment to Tenant, and Tenant hereby assigns to Landlord Tenant’s
interest, if any, in such award. Tenant shall have the right, to the extent that same shall not diminish Landlord’s award, to make a separate claim against the condemning authority (but not Landlord) for such compensation as may be separately
awarded or recoverable by Tenant for moving expenses and damage to Tenant’s trade fixtures, if a separate award for such items is made to Tenant. Tenant hereby waives any and all rights it might otherwise have pursuant to any provision of state
law to terminate this Lease upon a partial Taking of the Premises or the Project. 
 20. Events of Default. Each of the following
events shall be a default (“Default”) by Tenant under this Lease: 
 (a) Payment Defaults. Tenant shall fail to pay
any installment of Rent or any other payment hereunder when due; provided, however, that Landlord will give Tenant notice and an opportunity to cure any failure to pay Rent within 3 days of any such notice not more than once in any 12 month period
and Tenant agrees that such notice shall be in lieu of and not in addition to, or shall be deemed to be, any notice required by law. 
 (b)
Insurance. Any insurance required to be maintained by Tenant pursuant to this Lease shall be canceled or terminated or shall expire or shall be reduced or materially changed, or Landlord shall receive a notice of nonrenewal of any such
insurance and Tenant shall fail to obtain replacement insurance at least 5 days before the expiration of the current coverage. 
 (c)
Abandonment. Tenant shall abandon the Premises. Tenant shall not be deemed to have abandoned the Premises if (i) Tenant provides Landlord with reasonable advance notice prior to vacating and, at the time of vacating the Premises, Tenant
completes Tenant’s obligations with respect to the Surrender Plan in compliance with Section 28, (ii) Tenant has made reasonable arrangements with Landlord for the security of the Premises for the balance of the Term, and (iii) Tenant
continues during the balance of the Term to satisfy all of its obligations under the Lease as they come due. 
 (d) Improper Transfer.
Tenant shall assign, sublease or otherwise transfer or attempt to transfer all or any portion of Tenant’s interest in this Lease or the Premises except as expressly permitted herein, or Tenant’s interest in this Lease shall be
attached, executed upon, or otherwise judicially seized and such action is not released within 90 days of the action. 
 (e) Liens.
Tenant shall fail to discharge or otherwise obtain the release of any lien placed upon the Premises in violation of this Lease within 15 days after any such lien is filed against the Premises. 

(f) Insolvency Events. Tenant or any guarantor or surety of Tenant’s obligations hereunder shall: (A) make a general assignment
for the benefit of creditors; (B) commence any case, proceeding or other action seeking to have an order for relief entered on its behalf as a debtor or to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
liquidation, dissolution or composition of it or its debts or seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or of any substantial part of its property (collectively a “Proceeding for
Relief”); (C) become the subject of any Proceeding for Relief which is not dismissed within 90 days of its filing or 

 
entry; or (D) die or suffer a legal disability (if Tenant, guarantor, or surety is an individual) or be dissolved or otherwise fail to maintain its legal existence (if Tenant, guarantor or
surety is a corporation, partnership or other entity). 
 (g) Estoppel Certificate or Subordination Agreement. Tenant fails to
execute any document required from Tenant under Sections 23 or 27 within 5 business days after a second notice requesting such document. 

(h) Other Defaults. Tenant shall fail to comply with any provision of this Lease other than those specifically referred to in this
Section 20, and, except as otherwise expressly provided herein, such failure shall continue for a period of 30 days after written notice thereof from Landlord to Tenant. 

Any notice given under Section 20(h) hereof shall: (i) specify the alleged default, (ii) demand that Tenant cure such default,
(iii) be in lieu of, and not in addition to, or shall be deemed to be, any notice required under any provision of applicable law, and (iv) not be deemed a forfeiture or a termination of this Lease unless Landlord elects otherwise in such
notice; provided that if the nature of Tenant’s default pursuant to Section 20(h) is such that it cannot be cured by the payment of money and reasonably requires more than 30 days to cure, then Tenant shall not be deemed to
be in default if Tenant commences such cure within said 30 day period and thereafter diligently prosecutes the same to completion; provided, however, that such cure shall be completed no later than 60 days from the date of Landlord’s
notice. 
 21. Landlord’s Remedies. 

(a) Payment By Landlord; Interest. Upon a Default by Tenant hereunder, Landlord may, without waiving or releasing any obligation of
Tenant hereunder, make such payment or perform such act. All sums so paid or incurred by Landlord, together with interest thereon, from the date such sums were paid or incurred, at the annual rate equal to 12% per annum or the highest rate permitted
by law (the “Default Rate”), whichever is less, shall be payable to Landlord on demand as Additional Rent. Nothing herein shall be construed to create or impose a duty on Landlord to mitigate any damages resulting from Tenant’s
Default hereunder. 
 (b) Late Payment Rent. Late payment by Tenant to Landlord of Rent and other sums due will cause Landlord to
incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult and impracticable to ascertain. Such costs include, but are not limited to, processing and accounting charges and late charges which may be imposed on
Landlord under any Mortgage covering the Premises. Therefore, if any installment of Rent due from Tenant is not received by Landlord within 5 days after the date such payment is due, Tenant shall pay to Landlord an additional sum equal to 6% of the
overdue Rent as a late charge. Notwithstanding the foregoing, before assessing a late charge the first time in any calendar year, Landlord shall provide Tenant written notice of the delinquency and will waive the right if Tenant pays such
delinquency within 5 days thereafter. The parties agree that this late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant. In addition to the late charge, Rent not paid when due
shall bear interest at the Default Rate from the 5th day after the date due until paid. 
 (c) Remedies. Upon the occurrence of a
Default, Landlord, at its option, without further notice or demand to Tenant, shall have in addition to all other rights and remedies provided in this Lease, at law or in equity, the option to pursue any one or more of the following remedies, each
and all of which shall be cumulative and nonexclusive, without any notice or demand whatsoever. 
 (i) Terminate this Lease,
or at Landlord’s option, Tenant’s right to possession only, in which event Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which it may have for
possession or arrearages in rent, enter upon and take possession of the Premises and expel or remove Tenant and any other person who may be occupying the Premises or any part thereof, without being liable for prosecution or any claim or damages
therefor; 

 (ii) Upon any termination of this Lease, whether pursuant to the foregoing
Section 21(c)(i) or otherwise, Landlord may recover from Tenant the following: 
 (A) The worth at the time
of award of any unpaid rent which has been earned at the time of such termination; plus 
 (B) The worth at the time of
award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus 

(C) The worth at the time of award of the amount by which the unpaid rent for the balance of the Term after the time of
award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus 
 (D) Any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, specifically
including, but not limited to, brokerage commissions and advertising expenses incurred, reasonable expenses of remodeling the Premises or any portion thereof for a new tenant, whether for the same or a different use, and any special concessions made
to obtain a new tenant; and 
 (E) At Landlord’s election, such other amounts in addition to or in lieu of the
foregoing as may be permitted from time to time by applicable law. 
 The term “rent” as used in this Section 21 shall be
deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others. As used in Sections 21(c)(ii)(A) and (B), above, the “worth at the time of
award” shall be computed by allowing interest at the Default Rate. As used in Section 21(c)(ii)(C) above, the “worth at the time of award” shall be computed by discounting such amount at the discount rate of the
Federal Reserve Bank of San Francisco at the time of award plus 1%. 
 (iii) Landlord may continue this Lease in effect after
Tenant’s Default and recover rent as it becomes due (Landlord and Tenant hereby agreeing that Tenant has the right to sublet or assign hereunder, subject only to reasonable limitations). Accordingly, if Landlord does not elect to terminate this
Lease following a Default by Tenant, Landlord may, from time to time, without terminating this Lease, enforce all of its rights and remedies hereunder, including the right to recover all Rent as it becomes due. 

(iv) Whether or not Landlord elects to terminate this Lease following a Default by Tenant, Landlord shall have the right to
terminate any and all subleases, licenses, concessions or other consensual arrangements for possession entered into by Tenant and affecting the Premises or may, in Landlord’s sole discretion, succeed to Tenant’s interest in such subleases,
licenses, concessions or arrangements. Upon Landlord’s election to succeed to Tenant’s interest in any such subleases, licenses, concessions or arrangements, Tenant shall, as of the date of notice by Landlord of such election, have no
further right to or interest in the rent or other consideration receivable thereunder. 
 (v) Independent of the exercise of
any other remedy of Landlord hereunder or under applicable law, Landlord may conduct an environmental test of the Premises as generally described in Section 30(d) hereof, at Tenant’s expense. 

(d) Effect of Exercise. Exercise by Landlord of any remedies hereunder or otherwise available shall not be deemed to be an acceptance
of surrender of the Premises and/or a termination of this Lease by Landlord, it being understood that such surrender and/or termination can be effected only 

 
by the express written agreement of Landlord and Tenant. Any law, usage, or custom to the contrary notwithstanding, Landlord shall have the right at all times to enforce the provisions of this
Lease in strict accordance with the terms hereof; and the failure of Landlord at any time to enforce its rights under this Lease strictly in accordance with same shall not be construed as having created a custom in any way or manner contrary to the
specific terms, provisions, and covenants of this Lease or as having modified the same and shall not be deemed a waiver of Landlord’s right to enforce one or more of its rights in connection with any subsequent default. A receipt by Landlord of
Rent or other payment with knowledge of the breach of any covenant hereof shall not be deemed a waiver of such breach, and no waiver by Landlord of any provision of this Lease shall be deemed to have been made unless expressed in writing and signed
by Landlord. To the greatest extent permitted by law, Tenant waives the service of notice of Landlord’s intention to re-enter, re-take or otherwise obtain
possession of the Premises as provided in any statute, or to institute legal proceedings to that end, and also waives all right of redemption in case Tenant shall be dispossessed by a judgment or by warrant of any court or judge. Any reletting of
the Premises or any portion thereof shall be on such terms and conditions as Landlord in its sole discretion may determine. Landlord shall not be liable for, nor shall Tenant’s obligations hereunder be diminished because of, Landlord’s
failure to relet the Premises or collect rent due in respect of such reletting or otherwise to mitigate any damages arising by reason of Tenant’s Default. 

22. Assignment and Subletting. 

(a) General Prohibition. Without Landlord’s prior written consent subject to and on the conditions described in
Section 22(b) below, Tenant shall not, directly or indirectly, voluntarily or by operation of law, assign this Lease or sublease the Premises or any part thereof or mortgage, pledge, or hypothecate its leasehold interest or grant any
concession or license within the Premises, and any attempt to do any of the foregoing shall be void and of no effect. If Tenant is a corporation, partnership or limited liability company, the shares or other ownership interests thereof which are not
actively traded upon a stock exchange or in the over-the-counter market, a transfer or series of transfers whereby 49.9% or more of the issued and outstanding shares or
other ownership interests of such corporation are, or voting control is, transferred (but excepting transfers upon deaths of individual owners) from a person or persons or entity or entities which were owners thereof at time of execution of this
Lease to persons or entities who were not owners of shares or other ownership interests of the corporation, partnership or limited liability company at time of execution of this Lease, shall be deemed an assignment of this Lease requiring the
consent of Landlord as provided in this Section 22. Notwithstanding the foregoing, Tenant shall have the right to obtain financing from institutional and/or individual investors (including venture capital funding and corporate partners)
or undergo a public offering which results in a change in control of Tenant without such change of control constituting an assignment under this Section 22 requiring Landlord consent, provided that (i) Tenant notifies Landlord in
writing of the financing at least 5 business days prior to the closing of the financing, and (ii) provided that in no event shall such financing result in a change in use of the Premises from the use contemplated by Tenant at the commencement
of the Term. 
 (b) Permitted Transfers. If Tenant desires to assign, sublease, hypothecate or otherwise transfer this Lease or
sublet the Premises other than pursuant to a Permitted Assignment (as defined below), then at least 15 business days, but not more than 45 business days, before the date Tenant desires the assignment or sublease to be effective (the
“Assignment Date”), Tenant shall give Landlord a notice (the “Assignment Notice”) containing such information about the proposed assignee or sublessee, including the proposed use of the Premises and any Hazardous
Materials proposed to be used, stored handled, treated, generated in or released or disposed of from the Premises, the Assignment Date, any relationship between Tenant and the proposed assignee or sublessee, and all material terms and conditions of
the proposed assignment or sublease, including a copy of any proposed assignment or sublease in its final form, and such other information as Landlord may deem reasonably necessary or appropriate to its consideration whether to grant its consent.
Landlord may, by giving written notice to Tenant within 15 business days after receipt of the Assignment Notice: (i) grant such consent, (ii) refuse such consent, in its reasonable discretion, or (iii) terminate this Lease with respect to the space
described in the Assignment Notice as of the Assignment Date (an “Assignment Termination”). Among other reasons, it shall be reasonable for Landlord to withhold its consent in any of these instances: (1) the proposed assignee or
subtenant is a governmental agency; (2) in Landlord’s 

 
reasonable judgment, the use of the Premises by the proposed assignee or subtenant would entail any alterations that would lessen the value of the leasehold improvements in the Premises, or would
require increased services by Landlord; (3) in Landlord’s reasonable judgment, the proposed assignee or subtenant is engaged in areas of scientific research or other business concerns that are controversial such that they may (i) attract or
cause negative publicity for or about the Building or the Project, (ii) negatively affect the reputation of the Building, the Project or Landlord, (iii) attract protestors to the Building or the Project, or (iv) lessen the attractiveness of the
Building or the Project to any tenants or prospective tenants, purchasers or lenders; (4) in Landlord’s reasonable judgment, the proposed assignee or subtenant lacks the creditworthiness to support the financial obligations it will incur under
the proposed assignment or sublease; (5) in Landlord’s reasonable judgment, the character, reputation, or business of the proposed assignee or subtenant is inconsistent with the desired tenant-mix or the quality of other tenancies in the
Project or is inconsistent with the type and quality of the nature of the Building; (6) Landlord has received from any prior landlord to the proposed assignee or subtenant a negative report concerning such prior landlord’s experience with the
proposed assignee or subtenant; (7) Landlord has experienced previous defaults by or is in litigation with the proposed assignee or subtenant; (8) the use of the Premises by the proposed assignee or subtenant will violate any applicable Legal
Requirement; (9) the proposed assignee or subtenant is an entity with whom Landlord is negotiating to lease space in the Project; or (10) the assignment or sublease is prohibited by Landlord’s lender. If Landlord delivers notice of its election
to exercise an Assignment Termination, Tenant shall have the right to withdraw such Assignment Notice by written notice to Landlord of such election within 5 business days after Landlord’s notice electing to exercise the Assignment Termination.
If Tenant withdraws such Assignment Notice, this Lease shall continue in full force and effect. If Tenant does not withdraw such Assignment Notice, this Lease, and the term and estate herein granted, shall terminate as of the Assignment Date with
respect to the space described in such Assignment Notice. No failure of Landlord to exercise any such option to terminate this Lease, or to deliver a timely notice in response to the Assignment Notice, shall be deemed to be Landlord’s consent
to the proposed assignment, sublease or other transfer. Tenant shall pay to Landlord a fee equal to One Thousand Five Hundred Dollars ($1,500) in connection with its consideration of any Assignment Notice and/or its preparation or review of any
consent documents. Notwithstanding the foregoing, Landlord’s consent to an assignment of this Lease or a subletting of any portion of the Premises to any entity controlling, controlled by or under common control with Tenant (a “Control
Permitted Assignment”) shall not be required, provided that Landlord shall have the right to approve the form of any such sublease or assignment (which approval shall not be unreasonably withheld or delayed). In addition, Tenant shall have
the right to assign this Lease, upon 30 days prior written notice to Landlord (unless Tenant is prohibited from providing such notice by confidentiality or Legal Requirements in which case Tenant shall notify Landlord promptly thereafter) but
without obtaining Landlord’s prior written consent, to a corporation or other entity which is a successor-in-interest to Tenant, by way of merger, consolidation or corporate reorganization, or by the purchase of all or substantially all of the
assets or the ownership interests of Tenant provided that (i) such merger or consolidation, or such acquisition or assumption, as the case may be, is for a legitimate business purpose and not principally for the purpose of transferring the Lease,
and (ii) the net worth (as determined in accordance with generally accepted accounting principles (“GAAP”)) of the assignee is not less than the net worth (as determined in accordance with GAAP) of Tenant as of the date of
Tenant’s most current quarterly or annual financial statements, and (iii) such assignee shall agree in writing to assume all of the terms, covenants and conditions of this Lease arising after the effective date of the assignment (a
“Corporate Permitted Assignment”). Control Permitted Assignments and Corporate Permitted Assignments are hereinafter referred to as “Permitted Assignments.” 

(c) Additional Conditions. As a condition to any such assignment or subletting, whether or not Landlord’s consent is required,
Landlord may require: 
 (i) that any assignee or subtenant agree, in writing at the time of such assignment or subletting,
that if Landlord gives such party notice that Tenant is in default under this Lease, such party shall thereafter make all payments otherwise due Tenant directly to Landlord, which payments will be received by Landlord without any liability except to
credit such payment against those due under the Lease, and any such third party shall agree to attorn to Landlord or its successors and assigns should this Lease be terminated for any reason; provided, however, in no event shall Landlord or
its successors or assigns be obligated to accept such attornment; and 

 (ii) A list of Hazardous Materials, certified by the proposed assignee or
sublessee to be true and correct, which the proposed assignee or sublessee intends to use, store, handle, treat, generate in or release or dispose of from the Premises, together with copies of all documents relating to such use, storage, handling,
treatment, generation, release or disposal of Hazardous Materials by the proposed assignee or subtenant in the Premises or on the Project, prior to the proposed assignment or subletting, including, without limitation: permits; approvals; reports and
correspondence; storage and management plans; plans relating to the installation of any storage tanks to be installed in or under the Project (provided, said installation of tanks shall only be permitted after Landlord has given its written consent
to do so, which consent may be withheld in Landlord’s sole and absolute discretion); and all closure plans or any other documents required by any and all federal, state and local Governmental Authorities for any storage tanks installed in, on
or under the Project for the closure of any such tanks. Neither Tenant nor any such proposed assignee or subtenant is required, however, to provide Landlord with any portion(s) of the such documents containing information of a proprietary nature
which, in and of themselves, do not contain a reference to any Hazardous Materials or hazardous activities. 
 (d) No Release of Tenant,
Sharing of Excess Rents. Notwithstanding any assignment or subletting, Tenant and any guarantor or surety of Tenant’s obligations under this Lease shall at all times remain fully and primarily responsible and liable for the payment of Rent
and for compliance with all of Tenant’s other obligations under this Lease. Except in connection with a Permitted Assignment, if the Rent due and payable by a sublessee or assignee (or a combination of the rental payable under such sublease or
assignment plus any bonus or other consideration therefor or incident thereto in any form) exceeds the sum of the rental payable under this Lease, (excluding however, any Rent payable under this Section) and actual and reasonable brokerage fees,
legal costs and any design or construction fees directly related to and required pursuant to the terms of any such sublease (“Excess Rent”), then Tenant shall be bound and obligated to pay Landlord as Additional Rent hereunder 50%
of such Excess Rent within 10 days following receipt thereof by Tenant. If Tenant shall sublet the Premises or any part thereof, Tenant hereby immediately and irrevocably assigns to Landlord, as security for Tenant’s obligations under this
Lease, all rent from any such subletting, and Landlord as assignee and as attorney -in-fact for Tenant, or a receiver for Tenant appointed on Landlord’s application, may collect such rent and apply
it toward Tenant’s obligations under this Lease; except that, until the occurrence of a Default, Tenant shall have the right to collect such rent. 

(e) No Waiver. The consent by Landlord to an assignment or subletting shall not relieve Tenant or any assignees of this Lease or any
sublessees of the Premises from obtaining the consent of Landlord to any further assignment or subletting nor shall it release Tenant or any assignee or sublessee of Tenant from full and primary liability under the Lease. The acceptance of Rent
hereunder, or the acceptance of performance of any other term, covenant, or condition thereof, from any other person or entity shall not be deemed to be a waiver of any of the provisions of this Lease or a consent to any subletting, assignment or
other transfer of the Premises. 
 (f) Prior Conduct of Proposed Transferee. Notwithstanding any other provision of this
Section 22, if (i) the proposed assignee or sublessee of Tenant has been required by any prior landlord, lender or Governmental Authority to take remedial action in connection with Hazardous Materials contaminating a property, where
the contamination resulted from such party’s action or use of the property in question, (ii) the proposed assignee or sublessee is subject to an enforcement order issued by any Governmental Authority in connection with the use, storage,
handling, treatment, generation, release or disposal of Hazardous Materials (including, without limitation, any order related to the failure to make a required reporting to any Governmental Authority), or (iii) because of the existence of a pre-existing environmental condition in the vicinity of or underlying the Project, the risk that Landlord would be targeted as a responsible party in connection with the remediation of such pre-existing environmental condition would be materially increased or exacerbated by the proposed use of Hazardous Materials by such proposed assignee or sublessee, Landlord shall have the absolute right to refuse
to consent to any assignment or subletting to any such party. 

 23. Estoppel Certificate. Tenant shall, within 10 business days of written
notice from Landlord, execute, acknowledge and deliver a statement in writing in any form reasonably requested by a proposed lender or purchaser, (i) certifying that this Lease is unmodified and in full force and effect (or, if modified,
stating the nature of such modification and certifying that this Lease as so modified is in full force and effect) and the dates to which the rental and other charges are paid in advance, if any, (ii) acknowledging that there are not any
uncured defaults on the part of Landlord hereunder, or specifying such defaults if any are claimed, and (iii) setting forth such further factual information with respect to the status of this Lease or the Premises as may be requested thereon.
Any such statement may be relied upon by any prospective purchaser or encumbrancer of all or any portion of the real property of which the Premises are a part. Tenant’s failure to deliver such statement within such time shall be conclusive upon
Tenant that the Lease is in full force and effect and without modification except as may be represented by Landlord in any certificate prepared by Landlord and delivered to Tenant for execution. 

24. Quiet Enjoyment. So long as Tenant is not in Default under this Lease, Tenant shall, subject to the terms of this Lease, at
all times during the Term, have peaceful and quiet enjoyment of the Premises against any person claiming by, through or under Landlord. 

25. Prorations. All prorations required or permitted to be made hereunder shall be made on the basis of a 360 day year and 30
day months. 
 26. Rules and Regulations. Tenant shall, at all times during the Term and any extension thereof, comply with
all reasonable rules and regulations at any time or from time to time established by Landlord covering use of the Premises and the Project. The current rules and regulations are attached hereto as Exhibit E. If there is any conflict
between said rules and regulations and other provisions of this Lease, the terms and provisions of this Lease shall control. Landlord shall not have any liability or obligation for the breach of any rules or regulations by other tenants in the
Project and shall not enforce such rules and regulations in a discriminatory manner. 
 27. Subordination. This Lease and
Tenant’s interest and rights hereunder are hereby made and shall be subject and subordinate at all times to the lien of any Mortgage now existing or hereafter created on or against the Project or the Premises, and all amendments, restatements,
renewals, modifications, consolidations, refinancing, assignments and extensions thereof, without the necessity of any further instrument or act on the part of Tenant; provided, however that so long as there is no Default hereunder,
Tenant’s right to possession of the Premises shall not be disturbed by the Holder of any such Mortgage. Tenant agrees, at the election of the Holder of any such Mortgage, to attorn to any such Holder. Tenant agrees upon demand to execute,
acknowledge and deliver such instruments, confirming such subordination, and such instruments of attornment as shall be requested by any such Holder, provided any such instruments contain appropriate
non-disturbance provisions assuring Tenant’s quiet enjoyment of the Premises as set forth in Section 24 hereof. Notwithstanding the foregoing, any such Holder may at any time subordinate its
Mortgage to this Lease, without Tenant’s consent, by notice in writing to Tenant, and thereupon this Lease shall be deemed prior to such Mortgage without regard to their respective dates of execution, delivery or recording and in that event
such Holder shall have the same rights with respect to this Lease as though this Lease had been executed prior to the execution, delivery and recording of such Mortgage and had been assigned to such Holder. The term “Mortgage”
whenever used in this Lease shall be deemed to include deeds of trust, security assignments and any other encumbrances, and any reference to the “Holder” of a Mortgage shall be deemed to include the beneficiary under a deed of
trust. As of the date of this Lease, there is no existing Mortgage encumbering the Project. 
 28. Surrender. Upon the
expiration of the Term or earlier termination of Tenant’s right of possession, Tenant shall surrender the Premises to Landlord in the same condition as received, subject to any Alterations or Installations permitted by Landlord to remain in the
Premises, free of Hazardous 

 
Materials brought upon, kept, used, stored, handled, treated, generated in, or released or disposed of from, the Premises by any person other than a Landlord Party (collectively, “Tenant
HazMat Operations”), and released of all Hazardous Materials Clearances, broom clean, ordinary wear and tear and casualty loss and condemnation covered by Sections 18 and 19 excepted. At least 3 months prior to the surrender
of the Premises, Tenant shall deliver to Landlord a narrative description of the actions proposed (or required by any Governmental Authority) to be taken by Tenant in order to surrender the Premises (including any Installations permitted by Landlord
to remain in the Premises) at the expiration or earlier termination of the Term, free from any residual impact from the Tenant HazMat Operations and otherwise released for unrestricted use and occupancy (the “Surrender Plan”). Such
Surrender Plan shall be accompanied by a current listing of (i) all Hazardous Materials licenses and permits held by or on behalf of any Tenant Party with respect to the Premises, and (ii) all Hazardous Materials used, stored, handled,
treated, generated, released or disposed of from the Premises, and shall be subject to the review and reasonable approval of Landlord’s environmental consultant. In connection with the review and approval of the Surrender Plan, upon the request
of Landlord, Tenant shall deliver to Landlord or its consultant such additional non-proprietary information concerning Tenant HazMat Operations as Landlord shall request. On or before such surrender, Tenant
shall deliver to Landlord evidence that the approved Surrender Plan shall have been satisfactorily completed and Landlord shall have the right, subject to reimbursement at Tenant’s expense as set forth below, to cause Landlord’s
environmental consultant to inspect the Premises and perform such additional procedures as may be deemed reasonably necessary to confirm that the Premises are, as of the effective date of such surrender or early termination of the Lease, free from
any residual impact from Tenant HazMat Operations. Tenant shall reimburse Landlord, as Additional Rent, for the actual out-of pocket expense incurred by Landlord for Landlord’s environmental consultant to
review and approve the Surrender Plan and to visit the Premises and verify satisfactory completion of the same, which cost shall not exceed $5,000. Landlord shall have the unrestricted right to deliver such Surrender Plan and any report by
Landlord’s environmental consultant with respect to the surrender of the Premises to third parties. 
 If Tenant shall fail to prepare
or submit a Surrender Plan approved by Landlord, or if Tenant shall fail to complete the approved Surrender Plan, or if such Surrender Plan, whether or not approved by Landlord, shall fail to adequately address any residual effect of Tenant HazMat
Operations in, on or about the Premises, Landlord shall have the right to take such actions as Landlord may deem reasonable or appropriate (as confirmed by Landlord’s environmental consultant) to assure that the Premises and the Project are
surrendered free from any residual impact from Tenant HazMat Operations, the cost of which actions shall be reimbursed by Tenant as Additional Rent, without regard to the limitation set forth in the first paragraph of this Section 28.

 Tenant shall immediately return to Landlord all keys and/or access cards to parking, the Project, restrooms or all or any portion of the
Premises furnished to or otherwise procured by Tenant. If any such access card or key is lost, Tenant shall pay to Landlord, at Landlord’s election, either the cost of replacing such lost access card or key or the cost of reprogramming the
access security system in which such access card was used or changing the lock or locks opened by such lost key. Any Tenant’s Property, Alterations and property not so removed by Tenant as permitted or required herein shall be deemed abandoned
and may be stored, removed, and disposed of by Landlord at Tenant’s expense, and Tenant waives all claims against Landlord for any damages resulting from Landlord’s retention and/or disposition of such property. All obligations of Tenant
hereunder not fully performed as of the termination of the Term, including the obligations of Tenant under Section 30 hereof, shall survive the expiration or earlier termination of the Term, including, without limitation, indemnity
obligations, payment obligations with respect to Rent and obligations concerning the condition and repair of the Premises. 
 29. Waiver
of Jury Trial. TO THE EXTENT PERMITTED BY LAW, TENANT AND LANDLORD WAIVE ANY RIGHT TO TRIAL BY JURY OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, BETWEEN LANDLORD AND TENANT
ARISING OUT OF THIS LEASE OR ANY OTHER INSTRUMENT, DOCUMENT, OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO. 

 30. Environmental Requirements. 

(a) Prohibition/Compliance/Indemnity. Tenant shall not cause or permit any Hazardous Materials (as hereinafter defined) to be
brought upon, kept, used, stored, handled, treated, generated in or about, or released or disposed of from, the Premises or the Project in violation of applicable Environmental Requirements (as hereinafter defined) by Tenant or any Tenant Party. If
Tenant breaches the obligation stated in the preceding sentence, or if the presence of Hazardous Materials in the Premises during the Term or any holding over results in contamination of the Premises, the Project or any adjacent property or if
contamination of the Premises, the Project or any adjacent property by Hazardous Materials brought into, kept, used, stored, handled, treated, generated in or about, or released or disposed of from, the Premises by anyone other than Landlord and
Landlord’s employees, agents and contractors otherwise occurs during the Term or any holding over, Tenant hereby indemnifies and shall defend and hold Landlord, its officers, directors, employees, agents and contractors harmless from any and
all actions (including, without limitation, remedial or enforcement actions of any kind, administrative or judicial proceedings, and orders or judgments arising out of or resulting therefrom), costs, claims, damages (including, without limitation,
punitive damages and damages based upon diminution in value of the Premises or the Project, or the loss of, or restriction on, use of the Premises or any portion of the Project), expenses (including, without limitation, attorneys’,
consultants’ and experts’ fees, court costs and amounts paid in settlement of any claims or actions), fines, forfeitures or other civil, administrative or criminal penalties, injunctive or other relief (whether or not based upon personal
injury, property damage, or contamination of, or adverse effects upon, the environment, water tables or natural resources), liabilities or losses (collectively, “Environmental Claims”) which arise during or after the Term as a
result of such contamination. This indemnification of Landlord by Tenant includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, treatment, remedial, removal, or restoration work required
by any federal, state or local Governmental Authority because of Hazardous Materials present in the air, soil or ground water above, on, or under the Premises. Without limiting the foregoing, if the presence of any Hazardous Materials on the
Premises, the Building, the Project or any adjacent property caused or permitted by Tenant or any Tenant Party results in any contamination of the Premises, the Building, the Project or any adjacent property, Tenant shall promptly take all actions
at its sole expense and in accordance with applicable Environmental Requirements as are necessary to return the Premises, the Building, the Project or any adjacent property to the condition existing prior to the time of such contamination, provided
that Landlord’s approval of such action shall first be obtained, which approval shall not unreasonably be withheld so long as such actions would not potentially have any material adverse long-term or short-term effect on the Premises, the
Building or the Project. Notwithstanding anything to the contrary contained in Section 28 or this Section 30, Tenant shall not be responsible for, and the indemnification and hold harmless obligation set forth in this
paragraph shall not apply to (i) contamination in the Premises which Tenant can prove to Landlord’s reasonable satisfaction existed in the Premises immediately prior to the Commencement Date, or (ii) the presence of any Hazardous
Materials in the Premises which Tenant can prove to Landlord’s reasonable satisfaction migrated from outside of the Premises into the Premises, unless in either case, the presence of such Hazardous Materials (x) is the result of a breach
by Tenant of any of its obligations under this Lease, or (y) was caused, contributed to or exacerbated by Tenant or any Tenant Party. 

Landlord shall deliver to Tenant a copy of the finalized environmental exit assessment provided to Landlord by the prior tenant of the
Premises within a reasonable period after such finalized environmental exit assessment becomes available to Landlord. 
 (b)
Business. Landlord acknowledges that it is not the intent of this Section 30 to prohibit Tenant from using the Premises for the Permitted Use. Tenant may operate its business according to prudent industry practices so long
as the use or presence of Hazardous Materials is strictly and properly monitored according to all then applicable Environmental Requirements. As a material inducement to Landlord to allow Tenant to use Hazardous Materials in connection with its
business, Tenant agrees to deliver to Landlord prior to the Commencement Date a list identifying each type of Hazardous Materials to be brought upon, kept, used, stored, handled, treated, generated on, or released or disposed of from, the Premises
and setting forth any and all governmental approvals or permits required in connection with the presence, use, storage, handling, treatment, generation, release or disposal of such Hazardous Materials

 
on or from the Premises (“Hazardous Materials List”). Tenant shall deliver to Landlord an updated Hazardous Materials List at least once a year listing all Hazardous Materials
which Tenant is required to disclose to any Governmental Authority (e.g., the fire department) in connection with its use or occupancy of the Premises. Tenant shall deliver to Landlord true and correct copies of the following documents (the
“Haz Mat Documents”) relating to the use, storage, handling, treatment, generation, release or disposal of Hazardous Materials prior to the Commencement Date, or if unavailable at that time, concurrent with the receipt from or
submission to a Governmental Authority: permits; approvals; reports and correspondence; storage and management plans, notice of violations of any Legal Requirements; plans relating to the installation of any storage tanks to be installed in or under
the Project (provided, said installation of tanks shall only be permitted after Landlord has given Tenant its written consent to do so, which consent may be withheld in Landlord’s sole and absolute discretion); all closure plans or any other
documents required by any and all federal, state and local Governmental Authorities for any storage tanks installed in, on or under the Project for the closure of any such tanks; and a Surrender Plan (to the extent surrender in accordance with
Section 28 cannot be accomplished in 3 months). Tenant is not required, however, to provide Landlord with any portion(s) of the Haz Mat Documents containing information of a proprietary nature which, in and of themselves, do not contain
a reference to any Hazardous Materials or hazardous activities. It is not the intent of this Section to provide Landlord with information which could be detrimental to Tenant’s business should such information become possessed by Tenant’s
competitors. 
 (c) Tenant Representation and Warranty. Tenant hereby represents and warrants to Landlord that
(i) neither Tenant nor any of its legal predecessors has been required by any prior landlord, lender or Governmental Authority at any time to take remedial action in connection with Hazardous Materials contaminating a property which
contamination was permitted by Tenant of such predecessor or resulted from Tenant’s or such predecessor’s action or use of the property in question, and (ii) Tenant is not subject to any enforcement order issued by any Governmental
Authority in connection with the use, storage, handling, treatment, generation, release or disposal of Hazardous Materials (including, without limitation, any order related to the failure to make a required reporting to any Governmental Authority).
If Landlord determines that this representation and warranty was not true as of the date of this lease, Landlord shall have the right to terminate this Lease in Landlord’s sole and absolute discretion. 

(d) Testing. Landlord shall have the right, upon reasonable advance notice to Tenant, to conduct annual tests of the Premises to
determine whether any contamination of the Premises or the Project has occurred as a result of Tenant’s use. Tenant shall be required to pay the cost of such annual test of the Premises if there is violation of this Section 30 or if
contamination for which Tenant is responsible under this Section 30 is identified; provided, however, that if Tenant conducts its own tests of the Premises using third party contractors and test procedures acceptable to Landlord which
tests are certified to Landlord, Landlord shall accept such tests in lieu of the annual tests to be paid for by Tenant. In addition, at any time, and from time to time, prior to the expiration or earlier termination of the Term, Landlord shall have
the right to conduct appropriate tests of the Premises and the Project to determine if contamination has occurred as a result of Tenant’s use of the Premises. In connection with such testing, upon the request of Landlord, Tenant shall deliver
to Landlord or its consultant such non-proprietary information concerning the use of Hazardous Materials in or about the Premises by Tenant or any Tenant Party. If contamination has occurred for which Tenant
is liable under this Section 30, Tenant shall pay all costs to conduct such tests. If no such contamination is found, Landlord shall pay the costs of such tests (which shall not constitute an Operating Expense). Landlord shall provide
Tenant with a copy of all third party, non-confidential reports and tests of the Premises made by or on behalf of Landlord during the Term without representation or warranty and subject to a confidentiality
agreement. Tenant shall, at its sole cost and expense, promptly and satisfactorily remediate any environmental conditions for which Tenant is responsible under this Section 30 identified by such testing in accordance with all
Environmental Requirements. Landlord’s receipt of or satisfaction with any environmental assessment in no way waives any rights which Landlord may have against Tenant. Tenant shall have the right to have a Tenant representative present while
Landlord conducts tests in the Premises pursuant to this Section 30(d). 

 (e) Control Areas. Tenant shall be allowed to utilize up to its pro rata share
of the Hazardous Materials inventory within any control area or zone (located within the Premises), as designated by the applicable building code, for chemical use or storage. As used in the preceding sentence, Tenant’s pro rata share of any
control areas or zones located within the Premises shall be determined based on the rentable square footage that Tenant leases within the applicable control area or zone. For purposes of example only, if a control area or zone contains 10,000
rentable square feet and 2,000 rentable square feet of a tenant’s premises are located within such control area or zone (while such premises as a whole contains 5,000 rentable square feet), the applicable tenant’s pro rata share of such
control area would be 20%. 
 (f) Underground Tanks. If underground or other storage tanks storing Hazardous Materials located
on the Premises or the Project are used by Tenant or are hereafter placed on the Premises or the Project by Tenant, Tenant shall install, use, monitor, operate, maintain, upgrade and manage such storage tanks, maintain appropriate records, obtain
and maintain appropriate insurance, implement reporting procedures, properly close any underground storage tanks, and take or cause to be taken all other actions necessary or required under applicable state and federal Legal Requirements, as such
now exists or may hereafter be adopted or amended in connection with the installation, use, maintenance, management, operation, upgrading and closure of such storage tanks. 

(g) Tenant’s Obligations. Tenant’s obligations under this Section 30 shall survive the expiration or
earlier termination of the Lease. During any period of time after the expiration or earlier termination of this Lease required by Tenant or Landlord to complete the removal from the Premises of any Hazardous Materials (including, without limitation,
the release and termination of any licenses or permits restricting the use of the Premises and the completion of the approved Surrender Plan), Tenant shall continue to pay the full Rent in accordance with this Lease for any portion of the Premises
not relet by Landlord in Landlord’s sole discretion, which Rent shall be prorated daily. 
 (h) Definitions. As used
herein, the term “Environmental Requirements” means all applicable present and future statutes, regulations, ordinances, rules, codes, judgments, orders or other similar enactments of any Governmental Authority regulating or
relating to health, safety, or environmental conditions on, under, or about the Premises or the Project, or the environment, including without limitation, the following: the Comprehensive Environmental Response, Compensation and Liability Act; the
Resource Conservation and Recovery Act; and all state and local counterparts thereto, and any regulations or policies promulgated or issued thereunder. As used herein, the term “Hazardous Materials” means and includes any substance,
material, waste, pollutant, or contaminant listed or defined as hazardous or toxic, or regulated by reason of its impact or potential impact on humans, animals and/or the environment under any Environmental Requirements, asbestos and petroleum,
including crude oil or any fraction thereof, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas). As defined in Environmental Requirements, Tenant is and shall be deemed to
be the “operator” of Tenant’s “facility” and the “owner” of all Hazardous Materials brought on the Premises by Tenant or any Tenant Party, and the wastes,
by-products, or residues generated, resulting, or produced therefrom. 
 31. Tenant’s
Remedies/Limitation of Liability. Landlord shall not be in default hereunder unless Landlord fails to perform any of its obligations hereunder within 30 days after written notice from Tenant specifying such failure (unless such
performance will, due to the nature of the obligation, require a period of time in excess of 30 days, then after such period of time as is reasonably necessary, so long as Landlord is diligently pursuing the cure to completion). Upon any default by
Landlord, Tenant shall give notice by registered or certified mail to any Holder of a Mortgage covering the Premises and to any landlord of any lease of property in or on which the Premises are located and Tenant shall offer such Holder and/or
landlord a reasonable opportunity to cure the default, including time to obtain possession of the Project by power of sale or a judicial action if such should prove necessary to effect a cure; provided Landlord shall have furnished to Tenant
in writing the names and addresses of all such persons who are to receive such notices. All obligations of Landlord hereunder shall be construed as covenants, not conditions; and, except as may be otherwise expressly provided in this Lease, Tenant
may not terminate this Lease for breach of Landlord’s obligations hereunder. 

 All obligations of Landlord under this Lease will be binding upon Landlord only during the
period of its ownership of the Premises and not thereafter. The term “Landlord” in this Lease shall mean only the owner for the time being of the Premises. Upon the transfer by such owner of its interest in the Premises and
assumption of this Lease by the transferree, such owner shall thereupon be released and discharged from all obligations of Landlord thereafter accruing, but such obligations shall be binding during the Term upon each new owner for the duration of
such owner’s ownership. 
 32. Inspection and Access. Landlord and its agents, representatives, and contractors may enter
the Premises at any reasonable time to inspect the Premises (which inspections shall be performed during regular business hours unless otherwise agreed to by Tenant) and to make such repairs as may be required or permitted pursuant to this Lease and
for any other business purpose. Landlord and Landlord’s representatives may enter the Premises during business hours on not less than 48 hours advance written notice (except in the case of emergencies in which case no such notice shall be
required and such entry may be at any time) for the purpose of effecting any such repairs, inspecting the Premises, showing the Premises to prospective purchasers and, during the last year of the Term, to prospective tenants or for any other
business purpose. Landlord shall use reasonable efforts to minimize interference with Tenant’s operations in the Premises in connection with Landlord’s activities conducted pursuant to this paragraph. Landlord may erect a suitable sign on
the Premises stating the Premises are available to let or that the Project is available for sale. Landlord may grant easements, make public dedications, designate Common Areas and create restrictions on or about the Premises, provided that no
such easement, dedication, designation or restriction materially, adversely affects Tenant’s use or occupancy of the Premises for the Permitted Use. At Landlord’s request, Tenant shall execute such instruments as may be necessary for such
easements, dedications or restrictions. Tenant shall at all times, except in the case of emergencies, have the right to escort Landlord or its agents, representatives, contractors or guests while the same are in the Premises, provided such escort
does not materially and adversely affect Landlord’s access rights hereunder. 
 33. Security. Tenant acknowledges and
agrees that security devices and services, if any, while intended to deter crime may not in given instances prevent theft or other criminal acts and that Landlord is not providing any security services with respect to the Premises. Tenant agrees
that Landlord shall not be liable to Tenant for, and Tenant waives any claim against Landlord with respect to, any loss by theft or any other damage suffered or incurred by Tenant in connection with any unauthorized entry into the Premises or any
other breach of security with respect to the Premises. Tenant shall be solely responsible for the personal safety of Tenant’s officers, employees, agents, contractors, guests and invitees while any such person is in, on or about the Premises
and/or the Project. Tenant shall at Tenant’s cost obtain insurance coverage to the extent Tenant desires protection against such criminal acts. 

34. Force Majeure. Except for the payment of Rent, neither Tenant nor Landlord shall be responsible or liable for delays in the
performance of its obligations hereunder when caused by, related to, or arising out of acts of God, sinkholes or subsidence, strikes, lockouts, or other labor disputes, embargoes, quarantines, extreme weather, national, regional, or local disasters,
calamities, or catastrophes, inability to obtain labor or materials (or reasonable substitutes therefor) at reasonable costs or failure of, or inability to obtain, utilities necessary for performance, governmental restrictions, orders, limitations,
regulations, or controls, national emergencies, delay in issuance or revocation of permits, enemy or hostile governmental action, terrorism, insurrection, riots, civil disturbance or commotion, fire or other casualty, and other similar causes or
events beyond the reasonable control of such party (“Force Majeure”). 
 35. Brokers. Landlord and Tenant
each represents and warrants that it has not dealt with any broker, agent or other person (collectively, “Broker”) in connection with this transaction and that no Broker brought about this transaction, other than Avison Young and
Cassidy Turley. Landlord and Tenant each hereby agrees to indemnify and hold the other harmless from and against any claims by any Broker, other than the broker, if any named in this Section 35, claiming a commission or other form of
compensation by virtue of having dealt with Tenant or Landlord, as applicable, with regard to this leasing transaction. Landlord shall be responsible for all fees of Avison Young and Cassidy Turley arising out of the execution of this Lease in
accordance with the terms of separate written agreement between Landlord, on the one hand, and Avison Young and Cassidy Turley, respectively, on the other hand. 

 36. Limitation on Landlord’s Liability. NOTWITHSTANDING ANYTHING SET
FORTH HEREIN OR IN ANY OTHER AGREEMENT BETWEEN LANDLORD AND TENANT TO THE CONTRARY: (A) LANDLORD SHALL NOT BE LIABLE TO TENANT OR ANY OTHER PERSON FOR (AND TENANT AND EACH SUCH OTHER PERSON ASSUME ALL RISK OF) LOSS, DAMAGE OR INJURY, WHETHER
ACTUAL OR CONSEQUENTIAL TO: TENANT’S PERSONAL PROPERTY OF EVERY KIND AND DESCRIPTION, INCLUDING, WITHOUT LIMITATION TRADE FIXTURES, EQUIPMENT, INVENTORY, SCIENTIFIC RESEARCH, SCIENTIFIC EXPERIMENTS, LABORATORY ANIMALS, PRODUCT, SPECIMENS,
SAMPLES, AND/OR SCIENTIFIC, BUSINESS, ACCOUNTING AND OTHER RECORDS OF EVERY KIND AND DESCRIPTION KEPT AT THE PREMISES AND ANY AND ALL INCOME DERIVED OR DERIVABLE THEREFROM; (8) THERE SHALL BE NO PERSONAL RECOURSE TO LANDLORD FOR ANY ACT OR
OCCURRENCE IN, ON OR ABOUT THE PREMISES OR ARISING IN ANY WAY UNDER THIS LEASE OR ANY OTHER AGREEMENT BETWEEN LANDLORD AND TENANT WITH RESPECT TO THE SUBJECT MATTER HEREOF AND ANY LIABILITY OF LANDLORD HEREUNDER SHALL BE STRICTLY LIMITED SOLELY TO
LANDLORD’S INTEREST IN THE PROJECT OR ANY PROCEEDS FROM SALE OR CONDEMNATION THEREOF AND ANY INSURANCE PROCEEDS PAYABLE IN RESPECT OF LANDLORD’S INTEREST IN THE PROJECT OR IN CONNECTION WITH ANY SUCH LOSS; AND (C) IN NO EVENT SHALL
ANY PERSONAL LIABILITY BE ASSERTED AGAINST LANDLORD IN CONNECTION WITH THIS LEASE NOR SHALL ANY RECOURSE BE HAD TO ANY OTHER PROPERTY OR ASSETS OF LANDLORD OR ANY OF LANDLORD’S OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR CONTRACTORS. UNDER NO
CIRCUMSTANCES SHALL LANDLORD OR ANY OF LANDLORD’S OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR CONTRACTORS BE LIABLE FOR INJURY TO TENANT’S BUSINESS OR FOR ANY LOSS OF INCOME OR PROFIT THEREFROM. 

37. Severability. If any clause or provision of this Lease is illegal, invalid or unenforceable under present or future laws,
then and in that event, it is the intention of the parties hereto that the remainder of this Lease shall not be affected thereby. It is also the intention of the parties to this Lease that in lieu of each clause or provision of this Lease that is
illegal, invalid or unenforceable, there be added, as a part of this Lease, a clause or provision as similar in effect to such illegal, invalid or unenforceable clause or provision as shall be legal, valid and enforceable. 

38. Signs; Exterior Appearance. Tenant shall not, without the prior written consent of Landlord, which may be granted or
withheld in Landlord’s sole discretion: (i) attach any awnings, exterior lights, decorations, balloons, flags, pennants, banners, painting or other projection to any outside wall of the Project, (ii) use any curtains, blinds, shades
or screens visible from the outside of the Premises other than Landlord’s standard window coverings, (iii) coat or otherwise sunscreen the interior or exterior of any windows, (iv) place any bottles, parcels, or other articles on the
window sills, (v) place any equipment, furniture or other items of personal property on any exterior balcony, or (vi) paint, affix or exhibit on any part of the Premises or the Project any signs, notices, window or door lettering,
placards, decorations, or advertising media of any type which can be viewed from the exterior of the Premises. Interior signs on doors and the directory tablet shall be inscribed, painted or affixed for Tenant by Landlord at the sole cost and
expense of Tenant, and shall be of a size, color and type acceptable to Landlord. Nothing may be placed on the exterior of corridor walls or corridor doors other than Landlord’s standard lettering. The directory tablet shall be provided
exclusively for the display of the name and location of tenants. 
 Tenant shall, at Tenant’s sole cost and expense, have the non-exclusive right to install a sign bearing Tenant’s name on the Monument Sign serving the Project (“Monument Sign”). Tenant acknowledges and agrees that Tenant’s signage on the Monument
Sign including, without limitation, the location, size, color and type, shall be subject to Landlord’s prior written approval, which shall not be unreasonably withheld and shall be subject to and consistent with Landlord’s signage program
at the Project and applicable Legal Requirements. Tenant shall be responsible, at Tenant’s sole cost and expense, for the maintenance of Tenant’s signage on the Monument Sign, for the removal of Tenant’s signage from the Monument Sign
at the expiration or earlier termination of this Lease and for the repair of all damage resulting from such removal. Tenant may use a portion of the TI Allowance to pay the cost of installation of Tenant’s signage on the Monument Sign. 

 39. Community Center Amenities. 

(a) Generally. Subject to the provisions of this Section 39, Landlord’s affiliate, ARE-SD Region No. 17, LLC, a Delaware limited liability company (“Torreyana Landlord”) may construct amenities at the property owned by Torreyana Landlord located at 10996 Torreyana Road, San
Diego, California (“Torreyana Project”), which include, without limitation, shared conference facilities (“Shared Conference Facilities”), a fitness center and restaurant (collectively, the
“Amenities”) for non-exclusive use by (a) Tenant, (b) other tenants of the Project, (c) Landlord, (d) the tenants of Torreyana Landlord, (e) Torreyana Landlord, (e) other
affiliates of Landlord, Torreyana Landlord and Alexandria Real Estate Equities, Inc. (“ARE”), (f) the tenants of such other affiliates of Landlord, Torreyana Landlord and ARE, and (g) any other parties permitted by Torreyana
Landlord (collectively, “Users”). Landlord, Torreyana Landlord, ARE, and all affiliates of Landlord, Torreyana and ARE may be referred to collectively herein as the “ARE Parties.” Notwithstanding anything to the
contrary contained herein, Tenant acknowledges and agrees that (i) Torreyana Landlord is in the preliminary phase of design and development of the Amenities and does not currently have and may not be able to obtain the governmental approvals
necessary for the development and construction of the Amenities, and (ii) Torreyana Landlord’s construction of the Amenities is subject to, among other things, Torreyana Landlord’s ability to obtain, on terms and conditions acceptable
to Torreyana Landlord in its sole and absolute discretion, all of the governmental approvals to permit the design and construction of the Amenities, and the availability of materials and labor and all other conditions outside of Torreyana
Landlord’s reasonable control. Torreyana Landlord shall have the sole right to determine all matters related to the Amenities including, without limitation, relating to the design and construction thereof. Tenant acknowledges and agrees that
Landlord has not made any representations or warranties regarding the development of any of the Amenities and that Tenant is not entering into this Lease relying on the construction and completion of the Amenities or with an expectation that the
Amenities will ever be constructed. Tenant acknowledges and agrees that the current plan for the Amenities Center including, without limitation, the type, configuration and locations and the existence of any of the Amenities within the Torreyana
Project are not guaranteed and are subject to change by Landlord from time to time in the exercise of Landlord’s sole and absolute discretion; provided, however, that the Amenities provided will be of a Class A building standard and will,
at a minimum, include a fitness center, eatery and conference center. 
 (b) License. Following the delivery of written notice
from Landlord to Tenant that the Amenities are available for use by Tenant (“Amenity Availability Notice”), if at all, and so long as the Torreyana Project and the Project continue to be owned by affiliates of ARE, Tenant shall have
the non -exclusive right to the use of the available Amenities for up to 35 employees of Tenant (which employees are employed at the Premises) in common with other Users pursuant to the terms of this Section 39. If Landlord delivers
an Amenity Availability Notice to Tenant, Tenant shall, upon the date (“Amenities Commencement Date”) set forth in the Amenity Availability Notice (provided that Tenant is actually permitted to commence using the Amenities as of
such date), commence paying Landlord a fixed fee during the Base Term equal to $0.18 per rentable square foot of the Premises per month (“Amenities Fee”), which Amenities Fee shall by payable on the first day of each month during
the Term whether or not Tenant elects to use any or all of the Amenities. The Amenities Fee shall be increased annually on each anniversary of the Commencement Date by the Rent Adjustment Percentage. 

(c) Shared Conference Facilities. Use by Tenant of the Shared Conference Facilities and restaurant at the Torreyana Project
shall be in common with other Users with scheduling procedures reasonably determined by Torreyana Landlord. Torreyana Landlord reserves the right to exercise its reasonable discretion in the event of conflicting scheduling requests among Users. 

Any vendors engaged by Tenant in connection with Tenant’s use of the Shared Conference Facilities shall be professional licensed vendors.
Torreyana Landlord shall have the right to reasonably approve any vendors utilized by Tenant in connection with Tenant’s use of the Shared Conference 

 
Facilities. Prior to any entry by any such vendor onto the Torreyana Project, Tenant shall deliver to Landlord a copy of the contract between Tenant and such vendor and certificates of insurance
from such vendor evidencing industry standard commercial general liability, automotive liability, and workers’ compensation insurance. Tenant shall cause all such vendors utilized by Tenant to provide a certificate of insurance naming Landlord,
ARE, and Torreyana Landlord as additional insureds under the vendor’s liability policies. Notwithstanding the foregoing, Tenant shall be required to use the food service operator used by Torreyana Landlord at the Torreyana Project for any food
service or catered events held by Tenant in the Shared Conference Facilities. 
 Tenant shall, at Tenant’s sole cost and expense,
(i) be responsible for the set-up of the Shared Conference Facilities in connection with Tenant’s use (including, without limitation ensuring that Tenant has a sufficient number of chairs and tables
and the appropriate equipment), and (ii) surrender the Shared Conference Facilities after each time that Tenant uses the Shared Conference Facilities free of Tenant’s personal property, in substantially the same set up and same condition
as received, subject to casualty, and free of any debris and trash. If Tenant fails to restore and surrender the Shared Conference Facilities as required by sub-section (ii) of the immediately preceding
sentence, such failure shall constitute a “Shared Facilities Default.” Each time that Landlord reasonably determines that Tenant has committed a Shared Facilities Default, Tenant shall be required to pay Landlord a penalty within 5
days after notice from Landlord of such Shared Facilities Default. The penalty payable by Tenant in connection with the first Shared Facilities Default shall be $200. The penalty payable shall increase by $50 for each subsequent Shared Facilities
Default (for the avoidance of doubt, the penalty shall be $250 for the second Shared Facilities Default, shall be $300 for the third Shared Facilities Default, etc.). In addition to the foregoing, Tenant shall be responsible for reimbursing
Torreyana Landlord or Landlord, as applicable, for all costs expended by Torreyana Landlord or Landlord, as applicable, in repairing any damage to the Shared Conference Facilities, the Amenities, or the Torreyana Project caused by Tenant or any
Tenant Related Party. The provisions of this Section 39(c) shall survive the expiration or earlier termination of this Lease. 

(d) Rules and Regulations. Tenant shall be solely responsible for paying any and all food services operators and any other third
party vendors providing services to Tenant at the Torreyana Project. Tenant shall use the Amenities (including, without limitation, the Shared Conference Facilities) in compliance with all applicable Legal Requirements and any reasonable rules and
regulations imposed by Torreyana Landlord or Landlord from time to time (which rules shall not be enforced in a discriminatory manner) and in a manner that will not interfere with the rights of other Users. The use of Amenities other than the Shared
Conference Facilities by employees of Tenant shall be in accordance with the terms and conditions of the standard licenses, indemnification and waiver agreement required by Torreyana Landlord or the operator of the Amenities to be executed by all
persons wishing to use such Amenities. Neither Torreyana Landlord nor Landlord (nor, if applicable, any other affiliate of Landlord) shall have any liability or obligation for the breach of any rules or regulations by other Users with respect to the
Amenities. Tenant shall not make any alterations, additions, or improvements of any kind to the Shared Conference Facilities, the Amenities or the Torreyana Project. 

Tenant acknowledges and agrees that Torreyana Landlord shall have the right at any time and from time to time to reconfigure, relocate, modify
or remove any of the Amenities at the Torreyana Project and/or to revise, expand or discontinue any of the services (if any) provided in connection with the Amenities. 

(e) Waiver of Liability and Indemnification. Tenant warrants that it will use reasonable care to prevent damage to property and
injury to persons while on the Torreyana Project. To the extent permitted by applicable law, Tenant waives any claims it or any Tenant Parties may have against any ARE Parties relating to, arising out of or in connection with the Amenities and any
entry by Tenant and/or any Tenant Parties onto the Torreyana Project, and Tenant releases and exculpates all ARE Parties from any liability relating to, arising out of or in connection with the Amenities and any entry by Tenant and/or any Tenant
Parties onto the Torreyana Project. Tenant hereby agrees to indemnify, defend, and hold harmless the ARE Parties from any claim of damage to property or injury to person relating to, arising out of or in connection with (i) the use of the
Amenities by Tenant or any Tenant Parties, and (ii) any entry by Tenant and/or any Tenant Parties onto the Torreyana Project. The provisions of this Section 39 shall survive the expiration or earlier termination of the Lease. 

 (f) Insurance. As of the Amenities Commencement Date, Tenant shall cause
Torreyana Landlord to be named as an additional insured under the commercial general liability policy of insurance that Tenant is required to maintain pursuant to Section 17 of this Lease. 

40. Alternative Premises. If at any time during the Term of this Lease, Tenant is considering leasing additional or alternative
space in the San Diego area, Tenant shall deliver written notice (“Premises Notice”) to Landlord, which Premises Notice shall include a description of the additional or alternative space desired by Tenant. For a period of 30 days
following Tenant’s delivery of the Premises Notice to Landlord (“Exclusive Period”), Tenant agrees that Landlord shall have the exclusive right, if it so elects and without any obligation to do so, to offer Tenant additional or
alternative premises which satisfy in part or in its entirety the premises being sought by Tenant (“Alternative Premises”) on market terms at the Project or, if Landlord so elects, at another property in the San Diego area owned or
controlled by an entity controlled by, under common control with, or controlling Landlord including, without limitation, any of the constituent members of Landlord or Alexandria Real Estate Equities, Inc. (any such entity, an
“Affiliate”). Landlord and/or any Affiliate, as the case may be, shall have the right, if it so elects and without any obligation to do so, to acquire a new project or redevelop any existing project it then owns to provide the
Alternative Premises. Tenant shall consider in good faith any Alternative Premises offered to Tenant by Landlord (or its Affiliate) during the Exclusive Period. If Landlord (or its Affiliate) and Tenant identify an Alternative Premises acceptable to
Tenant, Landlord (or its Affiliate) and Tenant shall use good faith efforts to negotiate and enter into a new lease for such Alternative Premises. If Landlord (or its Affiliate) and Tenant are negotiating a lease as of the expiration of the
Exclusive Period, the Exclusive Period shall be extended through the earlier to occur of (i) the date that Landlord (or its Affiliate) and Tenant enter into a new lease, or (ii) the date that negotiations between Landlord (or its
Affiliate) and Tenant terminate. Such new lease shall, if entered into, otherwise be upon terms and conditions acceptable to Landlord or Affiliate, as the case may be, and Tenant in their respective good faith sole discretion. The provisions of this
Section 40 shall only apply so long as ARE-10933 North Torrey Pines, LLC, or an Affiliate is the owner of the Project. 

41. Miscellaneous. 

(a) Notices. All notices or other communications between the parties shall be in writing and shall be deemed duly given upon
delivery or refusal to accept delivery by the addressee thereof if delivered in person, or upon actual receipt if delivered by reputable overnight guaranty courier, addressed and sent to the parties at their addresses set forth above. Landlord and
Tenant may from time to time by written notice to the other designate another address for receipt of future notices. 
 (b) Joint and
Several Liability. If and when included within the term “Tenant,” as used in this instrument, there is more than one person or entity, each shall be jointly and severally liable for the obligations of Tenant. 

(c) Financial Information. Upon Landlord’s request, Tenant shall furnish Landlord with true and complete copies of
(i) Tenant’s most recent audited annual financial statements within 180 days of the end of each of Tenant’s fiscal years during the Term or, if the audited annual financial statements have not been made available to Tenant within such
180 day period, then at such time that such annual audited financial statements become available to Tenant, (ii) Tenant’s most recent unaudited quarterly financial statements within 60 days of the end of each of Tenant’s first three
fiscal quarters of each of Tenant’s fiscal years during the Term, (iii) at Landlord’s request from time to time, updated business plans, including cash flow projections and/or pro forma balance sheets and income statements, all of
which shall be treated by Landlord as confidential information belonging to Tenant, (iv) corporate brochures and/or profiles prepared by Tenant for prospective investors, and (v) any other financial information or summaries that Tenant
typically provides to its lenders or shareholders. Notwithstanding the foregoing, in no event shall Tenant be required to provide any financial information to Landlord which Tenant does not otherwise prepare (or cause to be prepared) for its own
purposes. 

 (d) Recordation. Neither this Lease nor a memorandum of lease shall be filed by or on
behalf of Tenant in any public record. Landlord may prepare and file, and upon request by Landlord Tenant will execute, a memorandum of lease. The foregoing is not intended to prohibit Tenant from filing this Lease to the extent that Tenant is
required to do so pursuant to applicable SEC requirements. 
 (e) Interpretation. The normal rule of construction to the effect that
any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Lease or any exhibits or amendments hereto. Words of any gender used in this Lease shall be held and construed to include any other
gender, and words in the singular number shall be held to include the plural, unless the context otherwise requires. The captions inserted in this Lease are for convenience only and in no way define, limit or otherwise describe the scope or intent
of this Lease, or any provision hereof, or in any way affect the interpretation of this Lease. 
 (f) Not Binding Until Executed. The
submission by Landlord to Tenant of this Lease shall have no binding force or effect, shall not constitute an option for the leasing of the Premises, nor confer any right or impose any obligations upon either party until execution of this Lease by
both parties. 
 (g) Limitations on Interest. It is expressly the intent of Landlord and Tenant at all times to comply with
applicable law governing the maximum rate or amount of any interest payable on or in connection with this Lease. If applicable law is ever judicially interpreted so as to render usurious any interest called for under this Lease, or contracted for,
charged, taken, reserved, or received with respect to this Lease, then it is Landlord’s and Tenant’s express intent that all excess amounts theretofore collected by Landlord be credited on the applicable obligation (or, if the obligation
has been or would thereby be paid in full, refunded to Tenant), and the provisions of this Lease immediately shall be deemed reformed and the amounts thereafter collectible hereunder reduced, without the necessity of the execution of any new
document, so as to comply with the applicable law, but so as to permit the recovery of the fullest amount otherwise called for hereunder. 

(h) Choice of Law. Construction and interpretation of this Lease shall be governed by the internal laws of the state in which the
Premises are located, excluding any principles of conflicts of laws. 
 (i) Time. Time is of the essence as to the performance of
Tenant’s obligations under this Lease. 
 (j) OFAC. Tenant is currently (a) in compliance with and shall at all times
during the Term of this Lease remain in compliance with the regulations of the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury and any statute, executive order, or regulation relating thereto
(collectively, the “OFAC Rules”), (b) not listed on, and shall not during the term of this Lease be listed on, the Specially Designated Nationals and Blocked Persons List maintained by OFAC and/or on any other similar list
maintained by OFAC or other governmental authority pursuant to any authorizing statute, executive order, or regulation, and (c) not a person or entity with whom a U.S. person is prohibited from conducting business under the OFAC Rules. 

(k) Incorporation by Reference. All exhibits and addenda attached hereto are hereby incorporated into this Lease and made a part
hereof. If there is any conflict between such exhibits or addenda and the terms of this Lease, such exhibits or addenda shall control. 

(l) Entire Agreement. This Lease, including the exhibits attached hereto, constitutes the entire agreement between Landlord and Tenant
pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, letters of intent, negotiations and discussions, whether oral or written, of the parties, and there are no warranties, representations
or other agreements, express or implied, made to either party by the other party in connection with the subject matter hereof except as specifically set forth herein. 

 (m) No Accord and Satisfaction. No payment by Tenant or receipt by Landlord of a
lesser amount than the monthly installment of Base Rent or any Additional Rent will be other than on account of the earliest stipulated Base Rent and Additional Rent, nor will any endorsement or statement on any check or letter accompanying a check
for payment of any Base Rent or Additional Rent be an accord and satisfaction. Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such Rent or to pursue any other remedy provided in this
Lease. 
 (n) Hazardous Activities. Notwithstanding any other provision of this Lease, Landlord, for itself and its employees, agents
and contractors, reserves the right to refuse to perform any repairs or services in any portion of the Premises which, pursuant to Tenant’s routine safety guidelines, practices or custom or prudent industry practices, require any form of
protective clothing or equipment other than safety glasses. In any such case, Tenant shall contract with parties who are acceptable to Landlord, in Landlord’s reasonable discretion, for all such repairs and services, and Landlord shall, to the
extent required, equitably adjust Tenant’s Share of Operating Expenses in respect of such repairs or services to reflect that Landlord is not providing such repairs or services to Tenant. 

(o) Redevelopment of Project. Tenant acknowledges that Landlord, in its sole discretion, may from time to time expand, renovate and/or
reconfigure the Project as the same may exist from time to time and, in connection therewith or in addition thereto, as the case may be, from time to time without limitation: (a) change the shape, size, location, number and/or extent of any
improvements, buildings, structures, lobbies, hallways, entrances, exits, parking and/or parking areas relative to any portion of the Project; (b) modify, eliminate and/or add any buildings, improvements, and parking structure(s) either above or
below grade, to the Project, the Common Areas and/or any other portion of the Project and/or make any other changes thereto affecting the same; and (c) make any other changes, additions and/or deletions in any way affecting the Project and/or
any portion thereof as Landlord may elect from time to time, including without limitation, additions to and/or deletions from the land comprising the Project, the Common Areas and/or any other portion of the Project. Landlord shall use reasonable
efforts to minimize interference with Tenant’s operations in the Premises during any expansion, renovation and/or reconfiguration performed by Landlord pursuant to this paragraph. Notwithstanding anything to the contrary contained in this
Lease, Tenant shall have no right to seek damages (including abatement of Rent) or to cancel or terminate this Lease because of any proposed changes, expansion, renovation or reconfiguration of the Project nor shall Tenant have the right to
restrict, inhibit or prohibit any such changes, expansion, renovation or reconfiguration; provided, however, Landlord shall not change the size, dimensions, location or Tenant’s Permitted Use of the Premises. 

(p) Discontinued Use. If, at any time following the Rent Commencement Date, Tenant (or an assignee or subtenant of Tenant pursuant to
Section 22) does not continuously operate its business in the Premises for a period of 180 consecutive days, Landlord may, but is not obligated to, elect to terminate this Lease upon 30 days’ written notice to Tenant, whereupon this
Lease shall terminate 30 days’ after Landlord’s delivery of such written notice (“Termination Date”), and Tenant shall vacate the Premises and deliver possession thereof to Landlord in the condition required by the terms
of this Lease on or before the Termination Date and Tenant shall have no further obligations under this Lease except for those accruing prior to the Termination Date and those which, pursuant to the terms of the Lease, survive the expiration or
early termination of the Lease. 
 [Signatures on next page] 

 IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the day and year
first above written. 
  

			
	TENANT:
	
	AVIDITY NANOMEDICINES LLC,
	a Delaware limited liability company
		
	By:	 	    /s/ Kent Hawryluk
	Its:	 	    Chief Business Officer
	
	LANDLORD:

 
			
	
	ARE-10933 NORTH TORREY PINES, LLC,
	a Delaware limited liability company

 
			
		
	By:	 	    ALEXANDRIA REAL ESTATE EQUITIES, INC.,
		 	    a Maryland corporation,
		 	    managing member

 
					
			
	           	 	By:	 	/s/ Gary Dean
			
		 	Its:	 	    Gary Dean
		 		 	    Vice President
		 		 	    RE Legal Affairs

 EXHIBIT A TO LEASE 

DESCRIPTION OF PREMISES 
  

 

 EXHIBIT B TO LEASE 

DESCRIPTION OF PROJECT 
  

 

 EXHIBIT C TO LEASE 

WORK LETTER 
 THIS
WORK L TTER (this “Work Letter”) is incorporated into that certain Lease Agreement (the “Lease”) dated as of March 31, 2014 by and between ARE-10933 NORTH
TORREY PINES, LLC, a Delaware limited liability company (“Landlord”), and AVIDITY NANOMEDICINES LLC, a Delaware limited liability company (“Tenant”). Any initially capitalized terms used but not defined
herein shall have the meanings given them in the Lease. 
 1. General Requirements. 

(a) Tenant’s Authorized Representative. Tenant designates Heidi Henson and Angelica Garcia (either such individual acting alone,
“Tenant’s Representative”) as the only persons authorized to act for Tenant pursuant to this Work Letter. Landlord shall not be obligated to respond to or act upon any request, approval, inquiry or other communication
(“Communication”) from or on behalf of Tenant in connection with this Work Letter unless such Communication is in writing from Tenant’s Representative. Tenant may change either Tenant’s Representative at any time upon not
less than 5 business days advance written notice to Landlord. Neither Tenant nor Tenant’s Representative shall be authorized to direct Landlord’s contractors in the performance of Landlord’s Work (as hereinafter defined). 

(b) Landlord’s Authorized Representative. Landlord designates Jenny Gardner and Steve Pomerenke (either such individual acting
alone, “Landlord’s Representative”) as the only persons authorized to act for Landlord pursuant to this Work Letter. Tenant shall not be obligated to respond to or act upon any request, approval, inquiry or other Communication
from or on behalf of Landlord in connection with this Work Letter unless such Communication is in writing from Landlord’s Representative. Landlord may change either Landlord’s Representative at any time upon not less than 5 business days
advance written notice to Tenant. Landlord’s Representative shall be the sole persons authorized to direct Landlord’s contractors in the performance of Landlord’s Work. 

(c) Architects, Consultants and Contractors. Landlord and Tenant hereby acknowledge and agree that: (i) the general contractor and
any subcontractors for the Tenant Improvements shall be selected by Landlord, subject to Tenant’s approval, which approval shall not be unreasonably withheld, conditioned or delayed, and (ii) Dowler Gruman shall be the architect (the
“TI Architect”) for the Tenant Improvements. 
 2. Tenant Improvements. 

(a) Definition of Tenant Improvements. As used herein, “Tenant Improvements” shall mean all improvements to the
Project of a fixed and permanent nature as shown on the TI Construction Drawings, as defined in Section 2(c) below. Other than Landlord’s Work (as defined in Section 3(a) below, Landlord shall not have any obligation
whatsoever with respect to the finishing of the Premises for Tenant’s use and occupancy. 
 (b) Tenant’s Space Plans.
Tenant shall deliver to Landlord and the TI Architect schematic drawings and outline specifications (the “TI Design Drawings”) detailing Tenant’s requirements for the Tenant Improvements within 5 business days of the date
hereof. Not more than 2 days thereafter, Landlord shall deliver to Tenant the written objections, questions or comments of Landlord and the TI Architect with regard to the TI Design Drawings. Tenant shall cause the TI Design Drawings to be revised
to address such written comments and shall resubmit said drawings to Landlord for approval within 2 days thereafter. Such process shall continue until Landlord has approved the TI Design Drawings. 

(c) Working Drawings. Landlord shall cause the TI Architect to prepare and deliver to Tenant for review and comment construction plans,
specifications and drawings for the Tenant Improvements (“TI Construction Drawings”), which TI Construction Drawings shall be prepared 

 
substantially in accordance with the TI Design Drawings. Tenant shall be solely responsible for ensuring that the TI Construction Drawings reflect Tenant’s requirements for the Tenant
Improvements. Tenant shall deliver its written comments on the TI Construction Drawings to Landlord not later than 10 business days after Tenant’s receipt of the same; provided, however, that Tenant may not disapprove any matter that is
consistent with the TI Design Drawings without submitting a Change Request. Landlord and the TI Architect shall consider all such comments in good faith and shall, within 10 business days after receipt, notify Tenant how Landlord proposes to respond
to such comments, but Tenant’s review rights pursuant to the foregoing sentence shall not delay the design or construction schedule for the Tenant Improvements. Any disputes in connection with such comments shall be resolved in accordance with
Section 2(d) hereof. Provided that the design reflected in the TI Construction Drawings is consistent with the TI Design Drawings, Tenant shall approve the TI Construction Drawings submitted by Landlord, unless Tenant submits a Change
Request. Once approved by Tenant, subject to the provisions of Section 4 below, Landlord shall not materially modify the TI Construction Drawings except as may be reasonably required in connection with the issuance of the TI Permit (as
defined in Section 3(b) below). 
 (d) Approval and Completion. It is hereby acknowledged by Landlord and Tenant that the
TI Construction Drawings must be completed and approved not later than April 30, 2014, in order for the Landlord’s Work to be Substantially Complete by the Target Commencement Date (as defined in the Lease). Upon any dispute regarding the
design of the Tenant Improvements, which is not settled within 10 business days after notice of such dispute is delivered by one party to the other, Tenant may make the final decision regarding the design of the Tenant Improvements, provided
(i) Tenant acts reasonably and such final decision is either consistent with or a compromise between Landlord’s and Tenant’s positions with respect to such dispute, (ii) that all costs and expenses resulting from any such
decision by Tenant shall be payable out of the TI Fund (as defined in Section 5(d) below), and (iii) Tenant’s decision will not affect the base Building, structural components of the Building or any Building systems. Any
changes to the TI Construction Drawings following Landlord’s and Tenant’s approval of same requested by Tenant shall be processed as provided in Section 4 hereof. 

3. Performance of Landlord’s Work. 

(a) Definition of Landlord’s Work. As used herein, the term “Landlord’s Work” shall mean the work of
constructing the Tenant Improvements and (i) cleaning of the carpets and flooring in the Premises, (ii) applying touch-up paint to the interior walls of the Premises, as needed, as reasonably
determined by Landlord, (iii) repairing or replacing broken or discolored ceiling tiles in the Premises, as reasonably determined by Landlord, and (iv) repairing or replacing broken light fixtures located in the Premises, as reasonably
determined by Landlord. The cost of items (i) through (iv) above shall be paid for by Landlord and not be payable from the TI Allowance. 

(b) Commencement and Permitting. Landlord shall commence construction of the Tenant Improvements upon obtaining a building permit (the
“TI Permit”) authorizing the construction of the Tenant Improvements consistent with the TI Construction Drawings approved by Tenant. The cost of obtaining the TI Permit shall be payable from the TI Fund. Tenant shall assist
Landlord in obtaining the TI Permit. If any Governmental Authority having jurisdiction over the construction of Landlord’s Work or any portion thereof shall impose terms or conditions upon the construction thereof that: (i) are
inconsistent with Landlord’s obligations hereunder, (ii) increase the cost of constructing Landlord’s Work, or (iii) will materially delay the construction of Landlord’s Work, Landlord and Tenant shall reasonably and in good
faith seek means by which to mitigate or eliminate any such adverse terms and conditions. 
 (c) Completion of Landlord’s Work.
On or before the Target Commencement Date (subject to Tenant Delays and Force Majeure delays), Landlord shall substantially complete or cause to be substantially completed Landlord’s Work in a good and workmanlike manner, in accordance with
the TI Permit subject, in each case, to Minor Variations and normal “punch list” items of a non-material nature that do not interfere with the use of the Premises (“Substantial
Completion” or “Substantially Complete”). Upon Substantial Completion of Landlord’s Work, Landlord shall require the TI Architect and the general contractor to execute and deliver, for the benefit of Tenant and
Landlord, a Certificate of 

 
Substantial Completion in the form of the American Institute of Architects (“AIA”) document G704. For purposes of this Work Letter, “Minor Variations” shall mean
any modifications reasonably required: (i) to comply with all applicable Legal Requirements and/or to obtain or to comply with any required permit (including the TI Permit); (ii) to comply with any request by Tenant for modifications to
Landlord’s Work; (iii) to comport with good design, engineering, and construction practices that are not material; or (iv) to make reasonable adjustments for field deviations or conditions encountered during the construction of
Landlord’s Work. 
 (d) Selection of Materials. Where more than one type of material or structure is indicated on the TI
Construction Drawings approved by Landlord and Tenant, the option will be selected at Landlord’s sole and absolute discretion. As to all building materials and equipment that Landlord is obligated to supply under this Work Letter, Landlord
shall select the manufacturer thereof in its reasonable discretion unless a manufacturer is specified in the approved TI Construction Drawings. 

(e) Delivery of the Premises. When Landlord’s Work is Substantially Complete, subject to the remaining terms and provisions of
this Section 3(e), Tenant shall accept the Premises. Tenant’s taking possession and acceptance of the Premises shall not constitute a waiver of: (i) any warranty with respect to workmanship (including installation of equipment)
or material (exclusive of equipment provided directly by manufacturers), (ii) any non-compliance of Landlord’s Work with applicable Legal Requirements, or (iii) any claim that Landlord’s Work
was not completed substantially in accordance with the TI Construction Drawings (subject to Minor Variations and such other changes as are permitted hereunder) (collectively, a “Construction Defect”). Tenant shall have one year
after Substantial Completion within which to notify Landlord of any such Construction Defect discovered by Tenant, and Landlord shall use reasonable efforts to remedy or cause the responsible contractor to remedy any such Construction Defect within
30 days thereafter. Notwithstanding the foregoing, Landlord shall not be in default under the Lease if the applicable contractor, despite Landlord’s reasonable efforts, fails to remedy such Construction Defect within such 30-day period, in which case Landlord shall have no further obligation with respect to such Construction Defect other than to cooperate, at no cost to Landlord, with Tenant should Tenant elect to pursue a claim
against such contractor. 
 Tenant shall be entitled to receive the benefit of all construction warranties and manufacturer’s equipment warranties
relating to equipment installed in the Premises. If requested by Tenant, Landlord shall attempt to obtain extended warranties from manufacturers and suppliers of such equipment, but the cost of any such extended warranties shall be borne solely out
of the TI Fund. Landlord shall promptly undertake and complete, or cause to be completed, all punch list items. 
 (f) Commencement Date
Delay. Except as otherwise provided in the Lease, Delivery of the Premises shall occur when Landlord’s Work has been Substantially Completed, except to the extent that completion of Landlord’s Work shall have been actually delayed by
any one or more of the following causes (“Tenant Delay”): 
 (i) Tenant’s Representative was not
available to give or receive any Communication or to take any other action required to be taken by Tenant hereunder; 

(ii) Tenant’s request for Change Requests (as defined in Section 4(a) below) whether or not any such
Change Requests are actually performed; 
 (iii) Construction of any Change Requests; 

(iv) Tenant’s request for materials, finishes or installations requiring unusually long lead times; 

(v) Tenant’s delay in reviewing, revising or approving plans and specifications beyond the periods set forth herein; 

 (vi) Tenant’s delay in providing information critical to the normal
progression of the Project. Tenant shall provide such information as soon as reasonably possible, but in no event longer than one week after receipt of any request for such information from Landlord; 

(vii) Tenant’s delay in making payments to Landlord for Excess TI Costs (as defined in Section 5(d)
below); or 
 (viii) Any other act or omission by Tenant or any Tenant Party (as defined in the Lease), or persons
employed by any of such persons that continues for more than 1 day after Landlord’s notice thereof to Tenant. 
 If Delivery is delayed for any of the
foregoing reasons, then Landlord shall cause the TI Architect to certify the date on which the Tenant Improvements would have been Substantially Completed but for such Tenant Delay and such certified date shall be the date of Delivery. Upon request,
Landlord shall advise Tenant of any materials, finishes or installation which are required as part of any Change Request that will result in unusually long lead times. 

4. Changes. Any changes requested by Tenant to the Tenant Improvements after the delivery and approval by Landlord of the Space Plan
shall be requested and instituted in accordance with the provisions of this Section 4 and shall be subject to the written approval of Landlord and the TI Architect, such approval not to be unreasonably withheld, conditioned or delayed. 

(a) Tenant’s Request For Changes. If Tenant shall request changes to the Tenant Improvements (“Changes”), Tenant
shall request such Changes by notifying Landlord in writing in substantially the same form as the AIA standard change order form (a “Change Request”), which Change Request shall detail the nature and extent of any such Change. Such
Change Request must be signed by Tenant’s Representative. Landlord shall, before proceeding with any Change, use commercially reasonable efforts to respond to Tenant as soon as is reasonably possible with an estimate of: (i) the time it
will take, and (ii) the architectural and engineering fees and costs that will be incurred, to analyze such Change Request (which costs shall be paid from the TI Fund to the extent actually incurred, whether or not such change is implemented).
Landlord shall thereafter submit to Tenant in writing, within 5 business days of receipt of the Change Request (or such longer period of time as is reasonably required depending on the extent of the Change Request), an analysis of the additional
cost or savings involved, including, without limitation, architectural and engineering costs and the period of time, if any, that the Change will extend the date on which Landlord’s Work will be Substantially Complete. Any such delay in the
completion of Landlord’s Work caused by a Change, including any suspension of Landlord’s Work while any such Change is being evaluated and/or designed, shall be Tenant Delay. 

(b) Implementation of Changes. If Tenant: (i) approves in writing the cost or savings and the estimated extension in the time for
completion of Landlord’s Work, if any, and (ii) deposits with Landlord any Excess TI Costs required in connection with such Change, Landlord shall cause the approved Change to be instituted. Notwithstanding any approval or disapproval by
Tenant of any estimate of the delay caused by such proposed Change, the TI Architect’s determination of the amount of Tenant Delay in connection with such Change shall be final and binding on Landlord and Tenant. 

5. Costs. 
 (a)
Budget For Tenant Improvements. Before the commencement of construction of the Tenant Improvements, Landlord shall obtain a detailed breakdown by trade of the costs incurred or that will be incurred in connection with the design and
construction of the Tenant Improvements (the “Budget”). The Budget shall be submitted to Tenant for its approval, which approval shall not be unreasonably withheld, conditioned or delayed. Following Landlord’s delivery to
Tenant of the initial Budget, Tenant shall be permitted to value-engineer the Tenant Improvements for a period of 10 business days. Notwithstanding anything to the contrary contained herein, if Tenant does not approve or disapprove the Budget such
10 business day period, Tenant shall be deemed to have approved the 

 
Budget. The Budget shall be based upon the TI Construction Drawings approved by Tenant and shall include a payment to Landlord of administrative rent (“Administrative Rent”)
equal to 4% of the TI Costs for monitoring and inspecting the construction of the Tenant Improvements and Changes, which sum shall be payable from the TI Fund (as defined in Section 5(d). Administrative Rent shall include, without
limitation, all out-of-pocket costs, expenses and fees incurred by or on behalf of Landlord arising from, out of, or in connection with monitoring the construction of
the Tenant Improvements and Changes, and shall be payable out of the TI Fund. If the Budget is greater than the TI Allowance, Tenant shall deposit with Landlord the difference, in cash, prior to the commencement of construction of the Tenant
Improvements or Changes, for disbursement by Landlord as described in Section 5(d). 
 (b) TI Allowance. Landlord shall
provide to Tenant a tenant improvement allowance (the “TI Allowance”) of $15 per rentable square foot of the Premises, or $128,415 in the aggregate. The TI Allowance shall be disbursed in accordance with this Work Letter. 

Tenant shall have no right to the use or benefit (including any reduction to or payment of Base Rent) of any portion of the TI Allowance not required for the
construction of (i) the Tenant Improvements described in the TI Construction Drawings approved pursuant to Section 2(d), (ii) any Changes pursuant to Section 4, or (iii) the installation of Tenant’s signage on the
Monument Sign. 
 (c) Costs lncludable in TI Fund. The TI Fund shall be used solely for the payment of design, permits and
construction costs in connection with the construction of the Tenant Improvements, including, without limitation, the cost of electrical power and other utilities used in connection with the construction of the Tenant Improvements, the cost of
preparing the Space Plan and the TI Construction Drawings, all costs set forth in the Budget, including Landlord’s Administrative Rent, Landlord’s out-of-pocket expenses, costs resulting from Tenant
Delays and the cost of Changes (collectively, “TI Costs”). Notwithstanding anything to the contrary contained herein, the TI Fund shall not be used to purchase any furniture, personal property or other
non-Building system materials or equipment, including, but not limited to, Tenant’s voice or data cabling, non-ducted biological safety cabinets and other
scientific equipment not incorporated into the Tenant Improvements. 
 (d) Excess TI Costs. Landlord shall have no obligation to bear
any portion of the cost of any of the Tenant Improvements except to the extent of the TI Allowance. If at any time the remaining TI Costs under the Budget exceed the remaining unexpended TI Allowance, Tenant shall deposit with Landlord, as a
condition precedent to Landlord’s obligation to complete the Tenant Improvements, 100% of the then current TI Cost in excess of the remaining TI Allowance (“Excess TI Costs”). If Tenant fails to deposit any Excess TI Costs with
Landlord, Landlord shall have all of the rights and remedies set forth in the Lease for nonpayment of Rent (including, but not limited to, the right to interest at the Default Rate and the right to assess a late charge). For purposes of any
litigation instituted with regard to such amounts, those amounts will be deemed Rent under the Lease. The TI Allowance and Excess TI Costs are herein referred to as the “TI Fund.” Funds deposited by Tenant shall be the first
disbursed to pay TI Costs. Notwithstanding anything to the contrary set forth in this Section 5(d), Tenant shall be fully and solely liable for TI Costs and the cost of Minor Variations in excess of the TI Allowance. If upon completion
of the Tenant Improvements and the payment of all sums due in connection therewith there remains any undisbursed portion of the TI Fund, Tenant shall be entitled to such undisbursed TI Fund solely to the extent of any Excess TI Costs deposit Tenant
has actually made with Landlord. 
 6. Tenant Access. 

(a) Tenant’s Access Rights. Landlord hereby agrees to permit Tenant access, at Tenant’s sole risk and expense, to the
Building (i) 14 days prior to the Commencement Date to perform any work (“Tenant’s Work”) required by Tenant other than Landlord’s Work, provided that such Tenant’s Work is coordinated with the TI Architect and the
general contractor, and complies with the Lease and all other reasonable restrictions and conditions Landlord may impose, and (ii) prior to the completion of Landlord’s Work, to inspect and observe work in process; all such access shall be
during normal business hours or at such other times as are reasonably designated by Landlord. Notwithstanding the foregoing, Tenant 

 
shall have no right to enter onto the Premises or the Project unless and until Tenant shall deliver to Landlord evidence reasonably satisfactory to Landlord demonstrating that any insurance
reasonably required by Landlord in connection with such pre-commencement access (including, but not limited to, any insurance that Landlord may require pursuant to the Lease) is in full force and effect. Any
entry by Tenant shall comply with all established safety practices of Landlord’s contractor and Landlord until completion of Landlord’s Work and acceptance thereof by Tenant. 

(b) No Interference. Neither Tenant nor any Tenant Party (as defined in the Lease) shall interfere with the performance of
Landlord’s Work, nor with any inspections or issuance of final approvals by applicable Governmental Authorities, and upon any such interference, Landlord shall have the right to exclude Tenant and any Tenant Party from the Premises and the
Project until Substantial Completion of Landlord’s Work. 
 (c) No Acceptance of Premises. The fact that Tenant may, with
Landlord’s consent, enter into the Project prior to the date Landlord’s Work is Substantially Complete for the purpose of performing Tenant’s Work shall not be deemed an acceptance by Tenant of possession of the Premises, but in such
event Tenant shall defend with counsel reasonably acceptable by Landlord, indemnify and hold Landlord harmless from and against any loss of or damage to Tenant’s property, completed work, fixtures, equipment, materials or merchandise, and from
liability for death of, or injury to, any person, caused by the act or omission of Tenant or any Tenant Party. 
 7. Miscellaneous.

 (a) Consents. Whenever consent or approval of either party is required under this Work Letter, that party shall not unreasonably
withhold, condition or delay such consent or approval, unless expressly set forth herein to the contrary. 
 (b) Modification. No
modification, waiver or amendment of this Work Letter or of any of its conditions or provisions shall be binding upon Landlord or Tenant unless in writing signed by Landlord and Tenant. 

 EXHIBIT D TO LEASE 

ACKNOWLEDGMENT OF COMMENCEMENT DATE 

This ACKNOWLEDGMENT OF COMMENCEMENT DATE is made this          day of
            ,         , between ARE-10933 NORTH TORREY PINES, LLC, a Delaware limited
liability company (“Landlord”), and AVIDITY NANOMEDICINES LLC, a Delaware limited liability company (“Tenant”), and is attached to and made a part of the Lease dated
            ,          (the “Lease”), by and between Landlord and Tenant. Any initially capitalized terms used but not
defined herein shall have the meanings given them in the Lease. 
 Landlord and Tenant hereby acknowledge and agree, for all purposes of the
Lease, that the Commencement Date of the Base Term of the Lease is             ,         , the Rent Commencement Date of the Base Term
of the Lease is             ,         , and the termination date of the Base Term of the Lease shall be midnight on
            ,         . In case of a conflict between the terms of the Lease and the terms of this Acknowledgment of Commencement Date,
this Acknowledgment of Commencement Date shall control for all purposes. 
 IN WITNESS WHEREOF, Landlord and Tenant have executed this
ACKNOWLEDGMENT OF COMMENCEMENT DATE to be effective on the date first above written. 
  

			
	TENANT:
	
	AVIDITY NANOMEDICINES LLC,
	a Delaware limited liability company

 
			
		
	By:	 	  

	Its:	 	  

 
			
	
	LANDLORD:
	
	ARE-10933 NORTH TORREY PINES, LLC,
	a Delaware limited liability company

 
					
		
	By:	 	ALEXANDRIA REAL ESTATE EQUITIES, INC.,
		 	a Maryland corporation,
		 	managing member

 
			
		
	       By:	 	  

	       Its:	 	  

 EXHIBIT E TO LEASE 

Rules and Regulations 

1. The sidewalk, entries, and driveways of the Project shall not be obstructed by Tenant, or any Tenant Party, or used by them for any purpose
other than ingress and egress to and from the Premises. 
 2. Tenant shall not place any objects, including antennas, outdoor furniture,
etc., in the parking areas, landscaped areas or other areas outside of its Premises, or on the roof of the Project. 
 3. Except for animals
assisting the disabled, no animals shall be allowed in the offices, halls, or corridors in the Project. 
 4. Tenant shall not disturb the
occupants of the Project or adjoining buildings by the use of any radio or musical instrument or by the making of loud or improper noises. 

5. If Tenant desires telegraphic, telephonic or other electric connections in the Premises, Landlord or its agent will direct the electrician
as to where and how the wires may be introduced; and, without such direction, no boring or cutting of wires will be permitted. Any such installation or connection shall be made at Tenant’s expense. 

6. Tenant shall not install or operate any steam or gas engine or boiler, or other mechanical apparatus in the Premises, except as
specifically approved in the Lease. The use of oil, gas or inflammable liquids for heating, lighting or any other purpose is expressly prohibited. Explosives or other articles deemed extra hazardous shall not be brought into the Project. 

7. Parking any type of recreational vehicles is specifically prohibited on or about the Project. Except for the overnight parking of operative
vehicles, no vehicle of any type shall be stored in the parking areas at any time, provided that temporary short-term overnight parking by Tenant’s employees while travelling for business purposes shall be permitted. In the event that a vehicle
is disabled, it shall be removed within 48 hours. There shall be no “For Sale” or other advertising signs on or about any parked vehicle. All vehicles shall be parked in the designated parking areas in conformity with all signs and other
markings. All parking will be open parking, and no reserved parking, numbering or lettering of individual spaces will be permitted except as specified by Landlord. 

8. Tenant shall maintain the Premises free from rodents, insects and other pests. 

9. Landlord reserves the right to exclude or expel from the Project any person who, in the judgment of Landlord, is intoxicated or under the
influence of liquor or drugs or who shall in any manner do any act in violation of the Rules and Regulations of the Project. 
 10. Tenant
shall not cause any unnecessary labor by reason of Tenant’s carelessness or indifference in the preservation of good order and cleanliness. Landlord shall not be responsible to Tenant for any loss of property on the Premises, however occurring,
or for any damage done to the effects of Tenant by the janitors or any other employee or person. 
 11. Tenant shall give Landlord prompt
notice of any defects in the water, lawn sprinkler, sewage, gas pipes, electrical lights and fixtures, heating apparatus, or any other service equipment affecting the Premises. 

12. Tenant shall not permit storage outside the Premises, including without limitation, outside storage of trucks and other vehicles, or
dumping of waste or refuse or permit any harmful materials to be placed in any drainage system or sanitary system in or about the Premises. 

 13. All moveable trash receptacles provided by the trash disposal firm for the Premises must
be kept in the trash enclosure areas, if any, provided for that purpose. 
 14. No auction, public or private, will be permitted on the
Premises or the Project. 
 15. No awnings shall be placed over the windows in the Premises except with the prior written consent of
Landlord. 
 16. The Premises shall not be used for lodging, sleeping or cooking or for any immoral or illegal purposes or for any purpose
other than that specified in the Lease. No gaming devices shall be operated in the Premises. 
 17. Tenant shall ascertain from Landlord the
maximum amount of electrical current which can safely be used in the Premises, taking into account the capacity of the electrical wiring in the Project and the Premises and the needs of other tenants, and shall not use more than such safe capacity.
Landlord’s consent to the installation of electric equipment shall not relieve Tenant from the obligation not to use more electricity than such safe capacity. 

18. Tenant assumes full responsibility for protecting the Premises from theft, robbery and pilferage. 

19. Tenant shall not install or operate on the Premises any machinery or mechanical devices of a nature not directly related to Tenant’s
ordinary use of the Premises and shall keep all such machinery free of vibration, noise and air waves which may be transmitted beyond the Premises. 

 EXHIBIT F TO LEASE 

TENANT’S PERSONAL PROPERTY 

None. 

 EXHIBIT G TO LEASE 

INTENTIONALLY OMITTED 

 EXHIBIT H TO LEASE 

LANDLORD’S FURNITURE 
  

					
	 Description
	  	Dimensions	  	Qty
	Reception desk (maple laminate)	  	76 x 71	  	1
			
	Cubicles/ workstations (maple laminate)	  	70 x 70	  	12
			
	Desk (maple laminate)	  	72 x 108	  	4
			
	Conference table (maple laminate)	  	48 x 144	  	2
			
	Table (maple laminate)	  	24 x 48	  	9
			
	Workstations (grey laminate)	  	36 x 80	  	8
			
	Desk (grey laminate)	  	30 x 50	  	2
			
	Desk (maple laminate)	  	30 x 60	  	9
			
	Table (white laminate)	  	30 x 60	  	6
			
	Two-door cabinet (maple laminate)	  	22 x 36	  	4

 FIRST AMENDMENT TO LEASE 

This First Amendment to Lease (the “First Amendment”) is made as of June 27, 2017, by and between ARE-10933 NORTH TORREY PINES, LLC, a Delaware limited liability company (“Landlord”), and AVIDITY BIOSCIENCES LLC, a Delaware limited liability company
(“Tenant”), formerly known as AVIDITY NANOMEDICINES LLC, a Delaware limited liability company. 

RECITALS 
 A. Landlord and
Tenant are parties to that certain Lease Agreement dated as of March 31, 2014 (the “Lease”), wherein Landlord leases to Tenant certain premises containing approximately 8,561 rentable square feet (the
“Premises”) located at 10975 North Torrey Pines, La Jolla, California, as more particularly described in the Lease. Capitalized terms used herein without definition shall have the meanings defined for such terms in the
Lease. 
 B. The term of the Lease is scheduled to expire on November 30, 2017. 

C. Landlord and Tenant desire to amend the Lease to, among other things, extend the term of the Lease through December 31, 2021 (the
“First Amendment Expiration Date”).  
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, the mutual promises and
conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 

 

	1.	 Term. The expiration date of the term of the Lease is hereby extended through the First Amendment
Expiration Date. Tenant’s occupancy of the Premises through the First Amendment Expiration Date shall be on an “as-is’’ basis and, except as expressly provided in Section 3
below, Landlord shall have no obligation to provide any tenant improvement allowance or to make any alterations to the Premises. 

  

	2.	 Base Rent. Tenant shall continue to pay Base Rent as provided in the Lease
through November 30, 2017. Commencing on December 1, 2017, Tenant shall pay Base Rent for the Premises equal to $3.60 per rentable square foot of the Premises per month. On December 1, 2018, and each subsequent December 1st during the Term through the First Amendment Expiration Date (each, a “First Amendment Adjustment Date”), Base Rent shall be increased by multiplying the Base Rent
payable immediately before such First Amendment Adjustment Date by 3% and adding the resulting amount to the Base Rent payable immediately before such First Amendment Adjustment Date. 

Notwithstanding anything to the contrary contained herein, so long as Tenant is not then in Default under the Lease, the Base Rent payable
under the Lease for the period commencing on December 1, 2017, through February 28, 2018 (the “Abatement Period”), shall be abated. Tenant shall resume paying full Base Rent under the Lease on March 1,
2018. Tenant shall continue to pay Operating Expenses (including administration rent each month equal to the amount of the administration rent that Tenant would have been required to pay in the absence of there being an Abatement Period) and all
other amounts due under the Lease during the Abatement Period. 
  

	3.	 Tenant Improvements. Commencing in December 2017, Landlord and its
contractors and agents shall have the right, subject to the Schedule (as defined in the Work Letter) to enter the Premises to complete Landlord’s Work (as defined in the Work Letter) pursuant to the Work Letter attached hereto as Exhibit A
(“Work Letter”) and Tenant shall reasonably cooperate with Landlord in 

	 	
connection with the same. Landlord shall use reasonable efforts to complete Landlord’s Work in accordance with the Schedule. Tenant acknowledges that Landlord’s completion of
Landlord’s Work may adversely affect Tenant’s use and occupancy of the Premises. Landlord shall endeavor to minimize interference with Tenant’s operations in the Premises during the performance of Landlord’s Work. At
Tenant’s request, Landlord shall perform Landlord’s Work outside of regular business hours, provided that Tenant shall be responsible as part of Excess TI Costs (as defined in the Work Letter) for any additional or overtime costs incurred
by Landlord in connection with performing Landlord’s Work outside of regular business hours. Tenant waives all claims against Landlord in connection with the construction of Landlord’s Work including, without limitation, claims for rent
abatement. Upon the expiration or earlier termination of the Lease, Tenant will not be required to restore or remove any of the Landlord’s Work nor shall Tenant have the right to remove any of the Landlord’s Work during the Term.

  

	4.	 Security Deposit. Landlord and Tenant acknowledge that as of the date of this First Amendment,
Landlord holds a Security Deposit as security for Tenant’s performance under the Lease in the amount of $27,823.25, which Security Deposit is in the form of a Letter of Credit. Tenant has requested that Tenant be allowed to replace the Letter
of Credit with a cash Security Deposit and Landlord has agreed to such request. As a result, concurrently with Tenant’s delivery to Landlord of an original of this First Amendment, Tenant shall deliver to Landlord a cash Security Deposit in the
amount of $27,823.25. Within 15 days after receipt of Tenant’s cash Security Deposit pursuant to the immediately preceding sentence, Landlord shall return the Letter of Credit to Tenant and shall reasonably cooperate, at no cost to Landlord,
with Tenant’s efforts to cause the issuer of the Letter of Credit to cancel or terminate the Letter of Credit. Following the delivery of the cash Security Deposit to Landlord, such cash Security Deposit shall constitute the Security Deposit
under Section 6 of the original Lease. 

  

	5.	 Alternative Premises. As of the date of this First Amendment,
Section 40 of the original Lease is hereby deleted in its entirety and is of no further force or effect. 

  

	6.	 Tenant’s Personal Property. As of the date of this First Amendment,
Exhibit F of the original Lease is hereby deleted in its entirety and replaced with Exhibit F attached to this First Amendment. 

  

	7.	 California Accessibility Disclosure. For purposes of Section 1938(a) of
the California Civil Code, Landlord hereby discloses to Tenant, and Tenant hereby acknowledges, that the Project has not undergone inspection by a Certified Access Specialist (CASp). In addition, the following notice is hereby provided pursuant to
Section 1938(e) of the California Civil Code: “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards
under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy
or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost
of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.” In furtherance of and in connection with such notice: (i) Tenant, having read such notice and understanding
Tenant’s right to request and obtain a CASp inspection, hereby elects not to obtain such CASp inspection and forever waives its rights to obtain a CASp inspection with respect to the Premises, Building and/or Project to the extent permitted by
Legal Requirements; and (ii) if the waiver set forth in clause (i) hereinabove is not enforceable pursuant to Legal Requirements, then Landlord and Tenant hereby agree as follows (which constitute the mutual agreement of the parties as to
the matters described in the last sentence of the foregoing notice): (A) Tenant shall have the one-time right to request for and obtain a CASp inspection, which request must be made, if at all, in a written
notice delivered by Tenant to Landlord; (B) any CASp inspection timely requested by Tenant shall be conducted (1) at a time mutually agreed to by 

	 	
Landlord and Tenant, (2) in a professional manner by a CASp designated by Landlord and without any testing that would damage the Premises, Building or Project in any way, and (3) at
Tenant’s sole cost and expense, including, without limitation, Tenant’s payment of the fee for such CASp inspection, the fee for any reports prepared by the CASp in connection with such CASp inspection (collectively, the
“CASp Reports”) and all other costs and expenses in connection therewith; (C) the CASp Reports shall be delivered by the CASp simultaneously to Landlord and Tenant; (D) Tenant, at its sole cost and
expense, shall be responsible for making any improvements, alterations, modifications and/or repairs to or within the Premises to correct violations of construction-related accessibility standards including, without limitation, any violations
disclosed by such CASp inspection; and (E) if such CASp inspection identifies any improvements, alterations, modifications and/or repairs necessary to correct violations of construction-related accessibility standards relating to those items of
the Building and Project located outside the Premises that are Landlord’s obligation to repair as set forth in the Lease, then Landlord shall perform such improvements, alterations, modifications and/or repairs as and to the extent required by
Legal Requirements to correct such violations, and Tenant shall reimburse Landlord for the cost of such improvements, alterations, modifications and/or repairs within 10 business days after Tenant’s receipt of an invoice therefor from Landlord.

  

	8.	 OFAC. Tenant is currently (a) in compliance with and shall at all times
during the Term of this Lease remain in compliance with the regulations of the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury and any statute, executive order, or regulation relating
thereto (collectively, the “OFAC Rules”), (b) not listed on, and shall not during the term of this Lease be listed on, the Specially Designated Nationals and Blocked Persons List maintained by OFAC and/or on any
other similar list maintained by OFAC or other governmental authority pursuant to any authorizing statute, executive order, or regulation, and (c) not a person or entity with whom a U.S. person is prohibited from conducting business under the
OFAC Rules. 

  

	9.	 Miscellaneous. 

 

	 	a.	 This First Amendment is the entire agreement between the parties with respect to the subject matter hereof and
supersedes all prior and contemporaneous oral and written agreements and discussions. This First Amendment may be amended only by an agreement in writing, signed by the parties hereto. 

 

	 	b.	 This First Amendment is binding upon and shall inure to the benefit of the parties hereto and their respective
agents and assigns. 

  

	 	c.	 This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original,
but all of which when taken together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature page is
attached to any other counterpart identical thereto except having additional signature pages executed by other parties to this First Amendment attached thereto. 

 

	 	d.	 Landlord and Tenant each represents and warrants that it has not dealt with any broker, agent or other person
(collectively, “Broker”) in connection with the transaction reflected in this First Amendment and that no Broker brought about this transaction, other than Cushman & Wakefield and Avison Young. Landlord and
Tenant each hereby agree to indemnify and hold the other harmless from and against any claims by any Broker, other than Cushman & Wakefield and Avison Young, claiming a commission or other form of compensation by virtue of having dealt with
Tenant or Landlord, as applicable, with regard to this First Amendment. Landlord shall be responsible for all fees of Cushman & Wakefield and Avison Young arising out of the execution of this First Amendment in accordance with the terms of
separate written agreement between Landlord, on the one hand, and Cushman & Wakefield and/or Avison Young, respectively, on the other hand. 

	 	e.	 Except as amended and/or modified by this First Amendment, the Lease is hereby ratified and confirmed and all
other terms of the Lease shall remain in full force and effect, unaltered and unchanged by this First Amendment. In the event of any conflict between the provisions of this First Amendment and the provisions of the Lease, the provisions of this
First Amendment shall prevail. Whether or not specifically amended by this First Amendment, all of the terms and provisions of the Lease are hereby amended to the extent necessary to give effect to the purpose and intent of this First Amendment.

 [Signatures are on the next page] 

 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the day and
year first above written. 
  

			
	 TENANT:

	
	 AVIDITY BIOSCIENCES LLC,

	 a Delaware corporation

		
	 By:
	  	 /s/ Kent Hawryluk

	 Its:
	  	 Chief Business Officer

	
	 LANDLORD:

	
	 ARE-10933 NORTH TORREY PINES,
LLC,

	 a Delaware limited liability company

		
	 By:
	  	ALEXANDRIA REAL ESTATE EQUITIES, INC.,
		  	 a Maryland corporation,

managing member

		
	 By:
	  	 /s/ Gary Dean

		
	 Its:
	  	 Gary Dean

		  	 Vice President

		  	 RE Legal Affairs

 Exhibit A 

Work Letter 
 THIS
WORK LETTER dated June 27, 2017 (this “Work Letter”) is incorporated into that certain Lease Agreement dated as of March 31, 2014, and amended by that certain First Amendment to Lease of even date herewith
(as amended, the “Lease”), by and between ARE-10933 NORTH TORREY PINES, LLC, a Delaware limited liability company (“Landlord”), and
AVIDITY BIOSCIENCES LLC, a Delaware limited liability company (“Tenant”), formerly known as AVIDITY NANOMEDICINES LLC, a Delaware limited liability company. Any initially capitalized terms
used but not defined herein shall have the meanings given them in the Lease. 
  

	 	1.	 General Requirements. 

(a) Tenant’s Authorized Representative. Tenant designates Leigh Elkolli and Anneke Raney (either such individual acting
alone, “Tenant’s Representative”) as the only persons authorized to act for Tenant pursuant to this Work Letter. Landlord shall not be obligated to respond to or act upon any request, approval, inquiry or other
communication (“Communication”) from or on behalf of Tenant in connection with this Work Letter unless such Communication is in writing from Tenant’s Representative. Tenant may change either Tenant’s
Representative at any time upon not less than 5 business days advance written notice to Landlord. Neither Tenant nor Tenant’s Representative shall be authorized to direct Landlord’s contractors in the performance of Landlord’s Work
(as hereinafter defined). 
 (b) Landlord’s Authorized Representative. Landlord designates Chris Clement and Eric Hedblad
(either such individual acting alone, “Landlord’s Representative”) as the only persons authorized to act for Landlord pursuant to this Work Letter. Tenant shall not be obligated to respond to or act upon
any request, approval, inquiry or other Communication from or on behalf of Landlord in connection with this Work Letter unless such Communication is in writing from Landlord’s Representative. Landlord may change either Landlord’s
Representative at any time upon not less than 5 business days advance written notice to Tenant. Landlord’s Representative shall be the sole persons authorized to direct Landlord’s contractors in the performance of Landlord’s Work.

 (c) Architects, Consultants and Contractors. Landlord and Tenant hereby acknowledge and agree that: (i) DPR shall be
the general contractor for the Tenant Improvements, (ii) DGA shall be the architect (the “TI Architect”) for the Tenant Improvements, and (iii) any subcontractors for the Tenant Improvements shall be selected by Landlord.

  

	 	2.	 Tenant Improvements. 

(a) Tenant Improvements Defined. As used herein, “Tenant Improvements” shall mean all improvements
to the Premises of a fixed and permanent nature (including a fume hood) as shown on the TI Construction Drawings, as defined in Section 2(c) below. Other than the performance of Landlord’s Work (as defined in
Section 3(a) below) and the payment of the TI Costs (as defined in Section 5(a) below) in accordance with the terms of this Work Letter, Landlord shall not have any obligation whatsoever with respect to the finishing of the
Premises for Tenant’s use and occupancy. 
 (b) Tenant’s Space Plans. Landlord and Tenant acknowledge and agree that
the plan prepared by the TI Architect attached to this Work Letter as Schedule 1 (the “Space Plan”) has been approved by both Landlord and Tenant. Landlord and Tenant further acknowledge and agree that any
changes to the Space Plan requested by Tenant constitute a Change Request the cost of which changes shall be paid for by Tenant. Tenant shall be solely responsible for all costs incurred by Landlord to alter the Building as a result of
Tenant’s requested Changes. 

 (c) Working Drawings. Landlord shall cause the TI Architect to prepare and
deliver to Tenant for review and comment construction plans, specifications and drawings for the Tenant Improvements (“TI Construction Drawings”), which TI Construction Drawings shall be prepared substantially in accordance with the
Space Plan. Tenant shall be solely responsible for ensuring that the TI Construction Drawings reflect Tenant’s requirements for the Tenant Improvements. Tenant shall deliver its written comments on the TI Construction Drawings to Landlord not
later than 7 days after Tenant’s receipt of the same; provided, however, that Tenant may not disapprove any matter that is substantially in accordance with the Space Plan without submitting a Change Request. Landlord and the TI Architect shall
consider all such comments in good faith and shall, within 7 days after receipt, notify Tenant how Landlord proposes to respond to such comments (provided that any comments made in order to cause the TI Construction Drawings to be consistent with
the Space Plan will be incorporated), but Tenant’s review rights and Landlord’s response to Tenant’s comments pursuant to the foregoing sentence shall not delay the design or construction schedule for the Tenant Improvements. Any
disputes in connection with such comments shall be resolved in accordance with Section 2(d) hereof. Provided that the design reflected in the TI Construction Drawings is substantially in accordance with the Space Plan, Tenant shall
approve the TI Construction Drawings submitted by Landlord, unless Tenant submits a Change Request. Once approved by Tenant, subject to the provisions of Section 4 below, Landlord shall not materially modify the TI Construction Drawings
except as may be reasonably required in connection with the issuance of the TI Permit (as defined in Section 3(b) below). 
 (d)
Approval and Completion. Upon any dispute regarding the design of the Tenant Improvements, which is not settled within 10 business days after notice of such dispute is delivered by one party to the other, Tenant may make the final
decision regarding the design of the Tenant Improvements, provided (i) Tenant acts reasonably and such final decision is either consistent with or a compromise between Landlord’s and Tenant’s positions with respect to such dispute,
(ii) that all costs and expenses resulting from any such decision by Tenant shall be payable by Tenant to the extent such costs are in excess of Landlord’s budgeted cost for such item as such item is reflected on the Space Plan, and
(iii) Tenant’s decision will not affect the base Building, structural components of the Building or any Building systems. In connection with any increase of the Landlord’s budgeted costs, Landlord shall provide Tenant with the amount
of the specific line item increase together with backup information reasonably required to support Landlord’s budgeted costs for the applicable line item and the applicable line item increase but, for the avoidance of any doubt, in no event
shall Landlord be required to provide Tenant with its budget. Any changes to the TI Construction Drawings requested by Tenant following Landlord’s and Tenant’s approval of same requested by Tenant shall be processed as provided in
Section 4 hereof. 
 3. Performance of Landlord’s Work. 

(a) Definition of Landlord’s Work. As used herein, “Landlord’s Work” shall mean the work of
constructing the Tenant Improvements. 
 (b) Commencement and Permitting. Landlord shall commence construction of the Tenant
Improvements upon obtaining a building permit (the “TI Permit”) authorizing the construction of the Tenant Improvements consistent with the TI Construction Drawings approved by Tenant. The cost of obtaining the TI Permit shall be
payable by Landlord. Tenant shall assist Landlord in obtaining the TI Permit, at no material cost to Tenant. If any Governmental Authority having jurisdiction over the construction of Landlord’s Work or any portion thereof shall impose terms or
conditions upon the construction thereof that: (i) are inconsistent with Landlord’s obligations hereunder, (ii) increase the cost of constructing Landlord’s Work, or (iii) will materially delay the construction of
Landlord’s Work, Landlord and Tenant shall reasonably and in good faith seek means by which to mitigate or eliminate any such adverse terms and conditions, at no material cost to Tenant. Notwithstanding anything to the contrary contained
herein, Tenant acknowledges that Tenant has requested that Landlord commence performing Landlord’s Work in December 2017, in accordance with the Schedule attached hereto as Schedule 2 (the “Schedule”), and further
acknowledges and agrees that there may be delays in the Substantial Completion of Landlord’s Work resulting from Landlord’s Work being performed in the month of December due to holiday schedules of third parties including, without
limitation, Governmental Authorities having inspection rights over Landlord’s Work. 

 (c) Completion of Landlord’s Work. Landlord shall substantially complete
or cause to be substantially completed Landlord’s Work in a good and workmanlike manner, in accordance with the TI Permit and applicable Legal Requirements subject, in each case, to Minor Variations and normal “punch list” items of a non-material nature that do not interfere with the use of the Premises (“Substantial Completion” or “Substantially Complete”). Upon Substantial Completion of Landlord’s Work,
Landlord shall require the TI Architect and the general contractor to execute and deliver, for the benefit of Tenant and Landlord, a Certificate of Substantial Completion in the form of the American Institute of Architects (“AIA”)
document G704. For purposes of this Work Letter, “Minor Variations” shall mean any modifications reasonably required: (i) to comply with all applicable Legal Requirements and/or to obtain or to comply with any required permit
(including the TI Permit); (ii) to comply with any request by Tenant for modifications to Landlord’s Work; (iii) to comport with good design, engineering, and construction practices that are not material; or (iv) to make reasonable
adjustments for field deviations or conditions encountered during the construction of Landlord’s Work. 
 (d) Selection of
Materials. Where more than one type of material or structure is indicated on the TI Construction Drawings approved by Landlord and Tenant, the option will be selected at Landlord’s reasonable discretion. As to all building materials
and equipment that Landlord is obligated to supply under this Work Letter, Landlord shall select the manufacturer thereof in its reasonable discretion, provided that all such materials and equipment shall be consistent with the existing Building
standard materials and equipment. 
 (e) Delivery of the Tenant Improvements. When Landlord’s Work is Substantially
Complete, subject to the remaining terms and provisions of this Section 3(e), Tenant shall accept the Tenant Improvements. Tenant’s taking possession and acceptance of the Tenant Improvements shall not constitute a waiver of:
(i) any warranty with respect to workmanship (including installation of equipment) or material (exclusive of equipment provided directly by manufacturers), (ii) any non-compliance of Landlord’s Work
with applicable Legal Requirements, or (iii) any claim that Landlord’s Work was not completed substantially in accordance with the TI Construction Drawings (subject to Minor Variations and such other changes as are permitted hereunder)
(collectively, a “Construction Defect”). Tenant shall have one year after Substantial Completion within which to notify Landlord of any such Construction Defect discovered by Tenant, and Landlord shall use reasonable efforts to
remedy or cause the responsible contractor to remedy any such Construction Defect within 30 days thereafter. Notwithstanding the foregoing, Landlord shall not be in default under the Lease if the applicable contractor, despite Landlord’s
reasonable efforts, fails to remedy such Construction Defect within such 30-day period, in which case Landlord shall have no further obligation with respect to such Construction Defect other than to cooperate,
at no cost to Landlord, with Tenant should Tenant elect to pursue a claim against such contractor. 
 (f) Warranties. Tenant
shall be entitled to receive the benefit of all construction warranties and manufacturer’s equipment warranties relating to equipment installed in the Premises pursuant to this Work Letter. If requested by Tenant, Landlord shall attempt to
obtain extended warranties from manufacturers and suppliers of such equipment, but the cost of any such extended warranties shall be borne solely by Tenant. Landlord shall promptly undertake and complete, or cause to be completed, all punch list
items. 
 4. Changes. Any changes requested by Tenant to the Tenant Improvements after the date of this Work Letter shall be
requested and instituted in accordance with the provisions of this Section 4 and shall be subject to the written approval of Landlord and the TI Architect, such approval not to be unreasonably withheld, conditioned or delayed. 

(a) Tenant’s Request For Changes. If Tenant shall request changes to the Tenant Improvements (“Changes”),
Tenant shall request such Changes by notifying Landlord in writing in substantially the same form as the AIA standard change order form (a “Change Request”), which Change 

 
Request shall detail the nature and extent of any such Change. Such Change Request must be signed by Tenant’s Representative. Landlord shall, before proceeding with any Change, use
commercially reasonable efforts to respond to Tenant as soon as is reasonably possible with an estimate of: (i) the time it will take, and (ii) the architectural and engineering fees and costs that will be incurred, to analyze such Change
Request (which costs shall be paid by Tenant to the extent actually incurred, whether or not such change is implemented). Landlord shall thereafter submit to Tenant in writing, within 5 business days of receipt of the Change Request (or such longer
period of time as is reasonably required depending on the extent of the Change Request), an analysis of the additional cost or savings involved, including, without limitation, architectural and engineering costs and the period of time, if any, that
the Change will extend the date on which Landlord’s Work will be Substantially Complete. Any such delay in the completion of Landlord’s Work caused by a Change, including any suspension of Landlord’s Work while any such Change is
being evaluated and/or designed, shall be a delay caused by Tenant. 
 (b) Implementation of Changes. If Tenant: (i) approves
in writing the cost or savings and the estimated extension in the time for completion of Landlord’s Work, if any, and (ii) deposits with Landlord any Excess TI Costs required in connection with such Change, Landlord shall cause the approved
Change to be instituted. Notwithstanding any approval or disapproval by Tenant of any estimate of the delay caused by such proposed Change, the TI Architect’s determination of the delay caused by Tenant in connection with such Change shall be
final and binding on Landlord and Tenant. 
 5. Costs. 

(a) TI Costs. Landlord shall be responsible for the payment of design, permits and construction costs in connection with the
construction of the Tenant Improvements, including, without limitation, the cost of preparing the TI Construction Drawings and the Space Plan and Landlord’s out-of -pocket expenses (collectively,
“TI Costs”). Notwithstanding anything to the contrary contained herein, in no event shall Landlord be required to pay for any furniture, personal property or other non-Building system
materials or equipment, including, but not limited to, Tenant’s voice or data cabling, non-ducted biological safety cabinets and other scientific equipment not incorporated into the Tenant Improvements.

 (b) Excess TI Costs. Notwithstanding anything to the contrary contained herein, Tenant acknowledges and agrees that
Landlord shall have no responsibility for any costs arising from or related to Tenant’s changes to the Space Plan or TI Construction Drawings, delays caused by Tenant (provided that Tenant’s request that the construction of Landlord’s
Work not commence until December 2017 as reflected in the Schedule shall not be deemed a “delay caused by Tenant” for the purposes of this Section), the cost of Changes and Change Requests (collectively, “Excess TI
Costs”). Tenant shall deposit with Landlord, as a condition precedent to Landlord’s obligation to complete the Tenant Improvements, 100% of the Excess TI Costs. If Tenant fails to deposit any Excess TI Costs with Landlord within 15
days after Landlord’s delivery to Tenant of an invoice therefor, Landlord shall have all of the rights and remedies set forth in the Lease for nonpayment of Rent (including, but not limited to, the right to interest at the Default Rate and the
right to assess a late charge). For purposes of any litigation instituted with regard to such amounts, those amounts will be deemed Rent under the Lease. 

6. Tenant Access. 

(a) Tenant’s Access Rights. Landlord and Tenant acknowledge that, pursuant to the terms of the Lease, Tenant is occupying
the Premises during the construction of the Tenant Improvements. Tenant shall have the right to continue to occupy the Premises (except those portions of the Premises in which Tenant Improvements are being constructed while Tenant Improvements are
being constructed in such portions), at Tenant’s sole risk and expense, during the construction of the Tenant Improvements; provided, however, that Tenant’s occupancy shall be coordinated with the TI Architect and the general contractor
and shall be subject to Tenant’s compliance with (i) applicable Legal Requirements, and (ii) all other reasonable restrictions which Landlord, the TI Architect or the general contractor may impose. Tenant shall cooperate with Landlord in
connection with the performance of the Tenant Improvements. 

 (b) No Interference. Neither Tenant nor any Tenant Party (as defined in the
Lease) shall interfere with the performance of Landlord’s Work, nor with any inspections or issuance of final approvals by applicable Governmental Authorities, and upon any such interference, Landlord shall have the right to exclude Tenant and
any Tenant Party from the portions of the Premises in which Landlord’s Work is being performed until Substantial Completion of Landlord’s Work. 

7. Miscellaneous. 
 (a)
Consents. Whenever consent or approval of either party is required under this Work Letter, that party shall not unreasonably withhold, condition or delay such consent or approval, unless expressly set forth herein to the contrary. 

(b) Modification. No modification, waiver or amendment of this Work Letter or of any of its conditions or provisions shall be
binding upon Landlord or Tenant unless in writing signed by Landlord and Tenant. 

 Schedule 1 

Space Plan 
  

 

 Exhibit F 

Tenant’s Personal Property 
  

	 	•	 	 11 whiteboards 

  

	 	•	 	 2 corkboards 

  

	 	•	 	 2 TVs 

  

	 	•	 	 Ice machine 

  

	 	•	 	 Autoclave 

  

	 	•	 	 Dishwasher 

  

	 	•	 	 Flammable cabinet 

  

	 	•	 	 Nitrogen control manifold 

 

	 	•	 	 CO2 control manifoldDocument

Exhibit 10.1

EXECUTION VERSION

			
	

ASSET PURCHASE AGREEMENT
by and between
AMAG PHARMACEUTICALS, INC.
and
MILLICENT PHARMA LIMITED

May 21, 2020
This Asset Purchase Agreement (the “Agreement”) contains representations, warranties and covenants that were made only for purposes of the Agreement and as of specific dates; were solely for the benefit of the parties to the Agreement; may be subject to limitations agreed upon by the parties, including being qualified by confidential disclosures made for the purposes of allocating contractual risk between the parties to the Agreement instead of establishing these matters as facts; and may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors. Stockholders of AMAG Pharmaceuticals, Inc. (“AMAG”) and other investors and stakeholders are not third-party beneficiaries under the Agreement and should not rely on the representations, warranties and covenants or any description thereof as characterizations of the actual state of facts or condition of AMAG or any of its subsidiaries or affiliates. Moreover, information concerning the subject matter of the representations, warranties and covenants may change after the date of the Agreement, which subsequent information may or may not be fully reflected in AMAG’s public disclosures.
			
	

									
			

									
	TABLE OF CONTENTS		
			Page
	Article I SALE AND PURCHASE OF ASSETS, ASSUMPTION OF LIABILITIES		5
	1.01	Transferred Assets	5
	1.02	Excluded Assets	5
	1.03	Assumed Liabilities	5
	1.04	Excluded Liabilities	5
	1.05	Business Transfer Documents	5
	Article II CLOSING		6
	2.01	Closing	6
	2.02	Seller Closing Deliverables	6
	2.03	Purchaser Closing Deliverables	6
	Article III PURCHASE PRICE		7
	3.01	Upfront Consideration	7
	3.02	Contingent Consideration.	7
	3.03	Purchase Price Adjustment	8
	3.04	Final Purchase Price Adjustment Amount Calculation	8
	3.05	Post‐Closing Adjustment Payment	10
	3.06	Withholding	10
	3.07	Transfer Taxes and Other Costs	11
	3.08	Tax Treatment; Allocation of the Consideration	12
	Article IV [RESERVED]		12
	Article V REPRESENTATIONS AND WARRANTIES OF THE SELLER		12
	5.01	Organization and Organizational Power	12
	5.02	Authorization; Valid and Binding Agreement	13
	5.03	No Contravention	13
	5.04	Financial Statements	14
	5.05	Absence of Changes	14
	5.06	Title to Transferred Assets	14
	5.07	Tax Matters	14
	5.08	Transferred Contracts	15
	5.09	Intellectual Property	17
	5.10	Litigation	17
	5.11	Compliance with Laws; Licenses and Permits	18
	5.12	Affiliated Transactions	20
	5.13	Brokerage	20
	5.14	Product Warranty.	20
	5.15	Product Distribution Practices.	20
	5.16	Regulatory Matters.	21
	5.17	Sufficiency of Assets.	21
	5.18	Solvency	21
	5.19	Insurance	21

1

									
	5.20	No Other Representations and Warranties	21
	Article VI REPRESENTATIONS AND WARRANTIES OF THE PURCHASER		22
	6.01	Organization and Organizational Power	22
	6.02	Authorization; Valid and Binding Agreement	22
	6.03	No Contravention	23
	6.04	Brokerage	23
	6.05	Solvency	23
	Article VII COVENANTS		24
	7.01	Access to Books and Records	24
	7.02	Further Assurances	24
	7.03	Transfer of Marketing Authorizations; National Drug Codes	24
	7.04	Shared Contracts	25
	7.05	Payments from Third Parties	25
	7.06	Return of Excluded Assets and Transferred Assets	25
	7.07	Mutual Non-Solicitation.	26
	7.08	Noncompete.	26
	7.09	Insurance	27
	7.10	Recalled Products.	27
	Article VIII INDEMNIFICATION		29
	8.01	Indemnification by Seller.	29
	8.02	Indemnification by Purchaser.	29
	8.03	Third Party Claims.	29
	8.04	Survival.	31
	8.05	Limitations of Liability.	31
	8.06	Purchaser Right to Set-Off.	33
	8.07	Exclusive Remedy.	33
	8.08	Tax Treatment.	33
	8.09	Materiality Qualifiers.	33
	Article IX [RESERVED]		34
	Article X ADDITIONAL COVENANTS		34
	10.01	Provision Respecting Legal Representation	34
	10.02	Tax Matters	35
	Article XI DEFINITIONS		36
	11.01	Definitions	36
	11.02	Rules of Construction and Other Definitional Provisions	46
	11.03	References	47
	11.04	Index of Defined Terms	47
	Article XII MISCELLANEOUS		48
	12.01	Representations, Warranties, Covenants and Agreements	48
	12.02	Press Releases and Communications	49
	12.03	Expenses	50
	12.04	Notices	50

2

									
	12.05	Successors and Assigns	51
	12.06	Severability	51
	12.07	Construction	51
	12.08	Amendment and Waiver	52
	12.09	Entire Agreement	52
	12.10	Third‐Party Beneficiaries	52
	12.11	Purchaser Deliveries	52
	12.12	Delivery by Electronic Transmission	52
	12.13	Counterparts; Effectiveness	53
	12.14	Governing Law	53
	12.15	Jurisdiction	53
	12.16	Waiver of Trial by Jury	53
	12.17	Non-Recourse	54
	12.18	Specific Performance	54
	12.19	Time is of the Essence	54

INDEX OF EXHIBITS
Exhibit A – Calculation Methodology
Exhibit B – Rules of Engagement for Valuation Firm
Exhibit C-1 – Seller Transfer Letter 
Exhibit C-2 – Purchaser Transfer Letter

INDEX OF ANNEXES
Annex A – Product 
Annex B – Transferred Contracts
Annex C – Transferred IP – Domain Names
Annex D – Transferred IP – Patents
Annex E – Transferred IP – Trademarks
Annex F – Licensed IP 
Annex G - Transferred Equipment
Annex H – Saleable Inventory

INDEX OF SCHEDULES

Schedule 1.01 – Transferred Assets
Schedule 1.02 – Excluded Assets 
Schedule 1.03 – Assumed Liabilities
Schedule 1.04 – Excluded Liabilities 

3

Schedule 5.02(d) – Authorization; Valid Binding Agreement 
Schedule 5.03 – No Contravention
Schedule 5.04 – Financial Statements 
Schedule 5.05 – Absence of Changes 
Schedule 5.08 – Transferred Contracts
Schedule 5.09 – Intellectual Property
Schedule 5.10 – Litigation
Schedule 5.11 – Compliance with Laws; License and Permits
Schedule 5.12 – Affiliated Transactions
Schedule 5.13 – Brokerage
Schedule 5.17 – Sufficiency of Assets
Schedule 7.03 – Marketing Authorizations
Schedule 7.08 – Noncompete

ASSET PURCHASE AGREEMENT
THIS ASSET PURCHASE AGREEMENT (this “Agreement”), dated as of May 21, 2020, is made by and between Millicent Pharma Limited, a company organized under the laws of Ireland (the “Purchaser”), and AMAG Pharmaceuticals, Inc., a Delaware corporation (the “Seller”).  Capitalized terms used and not otherwise defined herein have the meanings set forth in Article XI.  In this Agreement, the Seller and the Purchaser are individually referred to as a “Party” and collectively as the “Parties.” 
WHEREAS, the Seller owns, licenses or otherwise holds certain rights to manufacture, package, promote, market, sell, distribute and/or otherwise commercialize the Products in the Territory and other assets related to the Business; and
WHEREAS, the Seller desires to sell, transfer, assign, convey and deliver the Transferred Assets, and the Purchaser desires to purchase the Transferred Assets and assume or cause certain of its Affiliates to assume certain liabilities related to the Business, in each case, upon the terms and subject to the conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:
4

Article I.

SALE AND PURCHASE OF ASSETS, ASSUMPTION OF LIABILITIES
1.01 Transferred Assets.  Upon the terms and subject to the conditions set forth in this Agreement, the Seller agrees to sell, transfer, assign, convey and deliver to the Purchaser at the Closing (other than the Co-Pay Contracts, which shall be transferred following the Closing on a date mutually agreed by the Parties), and the Purchaser agrees to purchase, acquire and accept delivery from the Seller all of the Seller’s rights, title and interests in, to and under the Transferred Assets (other than the Co-Pay Contracts, which shall be transferred following the Closing on a date mutually agreed by the Parties), in each case free and clear of all Liens other than Permitted Liens. 
1.02 Excluded Assets.  Nothing in this Agreement shall operate to transfer from the Seller, create any obligation on the Seller to transfer or cause to have transferred any rights, title or interests in or to any of the Excluded Assets, or create any Liability on the part of the Purchaser with respect thereto. 
1.03 Assumed Liabilities.  Effective at the Closing and from and after the Closing Date, the Purchaser shall assume or cause its applicable Affiliates to assume the Assumed Liabilities and shall agree to satisfy and discharge when due the liabilities and obligations of Seller and its Affiliates in respect of the Assumed Liabilities.  After the Closing, the Purchaser shall be liable to pay, perform and discharge when due all Assumed Liabilities.  For the avoidance of doubt, in the event that any Assumed Liability has been paid by the Seller, the Purchaser shall, subject to receipt of satisfactory evidence of the Seller’s payment thereof, promptly reimburse the Seller for such amounts.
1.04 Excluded Liabilities.  Notwithstanding anything to the contrary set forth herein, the Seller shall retain and be responsible for all Excluded Liabilities, and, as the case may be, their payment, performance and discharge when due.  For the avoidance of doubt, in the event that any Excluded Liability has been paid by the Purchaser, the Seller shall, subject to receipt of satisfactory evidence of the Purchaser’s payment thereof, promptly reimburse the Purchaser for such amounts. 
1.05 Business Transfer Documents.  To the extent required under applicable Law or as reasonably deemed necessary by either of the Parties, to effect the transactions contemplated hereunder, the Parties shall execute and deliver, or cause their respective Affiliates to execute and deliver, such asset and/or business transfer agreements, bills of sale, deeds, assignments, assumptions and other documents and instruments of sale, conveyance, assignment, novation, transfer and assumption (the “Business Transfer Documents”) as are necessary to effect any transfer of the Transferred Assets or related Assumed Liability at the Closing or any assumption of the Assumed Liabilities at the Closing.  The Business Transfer Documents shall be in form and substance reasonably agreed to by the Parties and as is usual and customary in the applicable jurisdiction; provided that the Parties agree and acknowledge that the Business Transfer Documents are intended solely to formalize the terms and conditions of this Agreement in order to comply with any applicable Law and shall be, in all respects, consistent with the terms and conditions set forth in this Agreement.  In the event of any inconsistency between this Agreement and a Business Transfer Document, this Agreement shall control to the extent it would not be incompatible with applicable Law.

5

Article II.
CLOSING

2.01 Closing.  The closing of the purchase and sale of the Transferred Assets and the assumption of the Assumed Liabilities transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of Goodwin Procter LLP (“Goodwin”) located at 100 Northern Ave, Boston, Massachusetts 02210, or remotely through the execution and exchange, via .pdf copies of originally signed documents, of the documents and agreements contemplated herein, effective as of 12:01 a.m. Eastern Daylight Time on the date hereof unless another time, date or place is mutually agreed to in writing by the Parties.  The date and time of the Closing are referred to herein as the “Closing Date.”
2.02 Seller Closing Deliverables.  At the Closing, the Seller shall deliver or cause to be delivered to the Purchaser (or Purchaser’s designated Affiliate) (unless previously delivered), the following:
(a)a duly executed IRS Form W-9 certifying that Seller is a U.S. person and is exempt from backup withholding; 
(b)a duly executed counterpart to each Ancillary Agreement; 
(c)a DVD, CD-ROMs or other digital media imprinted with all documents or information available to the Purchaser as of the date hereof in the Data Room; 
(d)a duly executed Endoceutics Amendment; and
(e)the Transferred Assets (other than those Transferred Assets that by the terms and conditions of this Agreement or any Ancillary Agreement are to be transferred following the Closing, including the Co-Pay Contracts).
2.03 Purchaser Closing Deliverables.  At the Closing, the Purchaser shall deliver or cause to be delivered to the Seller (unless previously delivered) the following:
(a)the Closing Cash Consideration, by wire transfer of immediately available funds to one or more accounts designated by the Seller prior to the Closing, in accordance with Section ‎3.01; 
(b)a duly executed counterpart to each Ancillary Agreement; and
(c)a representations and warranties insurance policy obtained by Purchaser with a limit of liability of five million dollars ($5,000,000) (the “R&W Policy”) that provides coverage for breaches by the Seller with respect to the transactions contemplated hereby.  All premiums, underwriting fees, brokerage fees, legal fees (if any) for counsel engaged by the underwriter, surplus lines tax and any other costs and expenses associated with obtaining the R&W Policy shall be paid by the Purchaser. 

6

Article III.
PURCHASE PRICE
                  
3.01 Upfront Consideration.  In consideration for the purchase and sale of the Transferred Assets and the consummation of the transactions contemplated by this Agreement or the Ancillary Agreements, the Purchaser hereby agrees to pay the Seller an amount equal to (i) the Closing Cash Consideration, plus (ii) the Purchaser Portion of PDUFA Fees, less (iv) the RWI Payment. 
3.02 Contingent Consideration. 
(a)Pursuant to the terms and subject to the conditions set forth herein, the Purchaser shall pay to Seller, as additional consideration for the Transferred Assets, the non-refundable and non-creditable cash payment in the amount set forth in the following milestone payments table, such payments to be made within sixty (60) days after the end of the applicable Calendar Quarter in which each applicable threshold below is achieved (each, a “Milestone Payment”):
						
	 Milestone Event
	Milestone Payment
	The first time Net Sales during any consecutive twelve (12) month period is greater than or equal to $65 million	$25 million
	The first time Net Sales during any consecutive twelve (12) month period is greater than or equal to $115 million	$35 million
	The first time Net Sales during any consecutive twelve (12) month period is greater than or equal to $175 million	$45 million

For the avoidance of doubt, (x) each of the Milestone Payments shall become payable upon the occurrence of the associated milestone event, irrespective of the order in which the milestone events occur relative to each other (for example, if the first time Net Sales during any consecutive twelve (12) month period reach $175 million or greater, is also the first time Net Sales during any consecutive twelve (12) month period reach $65 million or greater, all three Milestone Payments shall become payable) and (y) each of the Milestone Payments shall be payable one (1) time only.   
(b)Written Report. Purchaser shall prepare quarterly written statements that set forth the calculation of Net Sales with respect to each Calendar Quarter, commencing with the Calendar Quarter ending June 30, 2020 (the “Quarterly Reports”). Purchaser shall deliver such Quarterly Reports to Seller within forty-five (45) days of the end of the applicable Calendar Quarter. All payments, if any, shall be accompanied by a written report setting forth for the applicable twelve-month period the calculation of Net Sales and the payment due hereunder.
(c)Commercially Reasonable Efforts.  Following the Closing, Purchaser shall use Commercially Reasonable Efforts to market, promote, and otherwise Commercialize (as defined in the License Agreement) the Product in the Territory, as required pursuant to the License Agreement. Notwithstanding the foregoing, the Purchaser shall not take 
7

any action or fail to take any action with the sole intent of avoiding or reducing the payment of any Milestone Payments. Purchaser shall have sole discretion with respect to all matters relating to the commercialization of the Product.
(d)Record-Keeping.  Purchaser shall, and shall cause its Affiliates to, keep true, accurate and complete books and records pertaining to Net Sales in sufficient detail to calculate all amounts payable hereunder, to evaluate and verify the accuracy of such calculations and to verify compliance with its obligations under this Agreement. Such books and records shall be retained by Purchaser and its Affiliates in accordance with its record retention policies applicable to such books and records. Such books and records shall be kept for a period of no less than three (3) years following the end of the calendar year to which they shall pertain.
(e)Audits.  At the request of Seller, Purchaser shall, and shall cause its Affiliates to, permit Seller or an independent auditor designated by Seller, at reasonable times once each calendar year and upon at least thirty (30) days’ prior written notice, to audit the books and records maintained pursuant to Section ‎3.02 to ensure the accuracy of all reports and payments made hereunder.  No time period may be audited more than one time.  The cost of such audit shall be borne by Seller; provided that if such audit reveals (after resolution of any applicable dispute pursuant to Section ‎3.02‎(f)) that a Milestone Payment was owed and improperly withheld, Purchaser shall bear the entire cost of such audit and remit the omitted Milestone Payment within forty-five (45) days after the date on which such audit is completed by Seller.
(f)Audit Disputes.  In the event of a dispute with respect to any audit under Section ‎3.02‎(e), Seller and Purchaser shall work in good faith to resolve the disagreement.  If the Parties are unable to reach a mutually acceptable resolution of any such dispute within thirty (30) days, the dispute shall be submitted for resolution to the Valuation Firm.  Absent manifest error, the decision of the Valuation Firm shall be final.  In the event the Valuation Firm determines that a Milestone Payment was owed and improperly withheld, Purchaser shall bear the entire cost of the Valuation Firm.  Otherwise, the cost of the Valuation Firm shall be borne by Seller.
3.03 Purchase Price Adjustment.  Within three (3) Business Days prior to the anticipated Closing Date, the Seller shall deliver to the Purchaser a schedule setting forth its good faith estimates of (a) the value of the Saleable Inventory in respect of Inventory as of the Closing (as of 11:59 P.M., local time, on the day immediately prior to the Closing Date) (the “Estimated Saleable Inventory”), and (b) Purchase Price Adjustment Amount (the “Estimated Purchase Price Adjustment Amount”), together with a schedule calculating in reasonable detail such amounts.  
3.04 Final Purchase Price Adjustment Amount Calculation.  
(a)As promptly as possible following the Closing, but in any event within sixty (60) days after the Closing Date, the Purchaser will deliver to the Seller a statement showing the calculation of Saleable Inventory and Purchase Price Adjustment Amount (the “Preliminary Statement”).  The calculations of Saleable Inventory  and Purchase Price Adjustment Amount shall be determined (including for purposes of Section ‎3.03) 
8

in accordance with GAAP using the same accounting methods, policies, principles, practices and procedures, with consistent classifications, judgments and estimation methodology, as were used in the preparation of the calculation of Purchase Price Adjustment Amount set forth on Exhibit A and, to the extent not specified on Exhibit A, in accordance with Seller’s internal inventory policies as of the date of this Agreement, and shall not include any changes as a result of purchase accounting adjustments (related to the transactions contemplated hereby) or other changes arising from or resulting as a consequence of the transactions contemplated hereby.  The parties agree that the purpose of determining Saleable Inventory  and Purchase Price Adjustment Amount and the related purchase price adjustment contemplated by this Section ‎3.04 is to measure the amount of Saleable Inventory and Purchase Price Adjustment Amount, and such processes are not intended to permit the introduction of different judgments, accounting methods, policies, principles, practices, procedures, classifications or estimation methodologies for the purpose of determining Saleable Inventory  or Purchase Price Adjustment Amount. 
(b)After delivery of the Preliminary Statement, the Purchaser shall provide the Seller and its accountants and other representatives full access to review the Purchaser’s and its Subsidiaries’ applicable books and records and any work papers related to the preparation of the Preliminary Statement.  The Seller and its accountants and other representatives may make inquiries of the Purchaser and its accountants regarding questions concerning or disagreements with the Preliminary Statement arising in the course of their review thereof, and the Purchaser shall use its, and shall cause its Subsidiaries to use their, commercially reasonable efforts to cause any such accountants to cooperate with and respond to such inquiries.  If the Seller has any objections to the Preliminary Statement, the Seller shall deliver to the Purchaser a statement setting forth in reasonable detail each objected item or amount and the basis for such objection, together with supporting calculations (an “Objections Statement”).  If an Objections Statement is not delivered to the Purchaser within sixty (60) days after delivery of the Preliminary Statement to the Seller, the Preliminary Statement shall be final, binding and non-appealable by the Parties.  
(c)The Seller and the Purchaser shall negotiate in good faith to resolve any such objections, but if they do not reach a final resolution within thirty (30) days after the delivery of the Objections Statement, the Seller and the Purchaser shall submit such dispute to Grant Thornton (the “Valuation Firm”).  Any further submissions to the Valuation Firm must be written and delivered to each party to the dispute.  The Valuation Firm shall make a final determination of Saleable Inventory  and Purchase Price Adjustment Amount, and the resulting Final Cash Consideration calculated with reference to such amounts to the extent such amounts are in dispute, in accordance with the guidelines and procedures set forth in this Agreement and on Exhibit B.  The parties will cooperate with the Valuation Firm during the term of its engagement.  The Valuation Firm shall only have authority to make determinations in respect of those specific items for which an objection has been raised in the Objections Statement, and all determinations shall be based solely on the presentations of the Purchaser and Seller and their respective representatives, and not by independent review.  In resolving any 
9

disputed item, the Valuation Firm: (i) shall be bound by the principles set forth in this Section ‎3.04, and (ii) shall not assign a value to any item greater than the greatest value for such item claimed by either party.  The determination of Saleable Inventory and Purchase Price Adjustment Amount as of the Closing Date, and the resulting Final Cash Consideration calculated with reference thereto, shall become final and binding on the parties on the date the Valuation Firm delivers its final resolution in writing to the parties.  Such Valuation Firm will determine each of Seller’s and Purchaser’s allocation of its fees and expenses in connection with the foregoing based on the inverse of the percentage its determination bears to the total amount of the disputed matters originally submitted to it. For example, solely for illustrative purposes, should the disputed matters amount to One Thousand Dollars ($1,000) and such Valuation Firm awards Six Hundred Dollars ($600) in favor of Seller’s position, sixty percent (60%) of such fees and expenses would be borne by Purchaser and forty percent (40%) of such fees and expenses would be borne by Seller.
3.05 Post-Closing Adjustment Payment.  If the Final Cash Consideration is greater than the Closing Cash Consideration, the Purchaser shall promptly (but in any event within five (5) Business Days in the determination thereof) pay to the Seller the amount of such excess, by wire transfer of immediately available funds to one or more accounts designated in writing by the Seller to the Purchaser.  If the Final Cash Consideration is less than the Closing Cash Consideration, the Seller shall promptly (but in any event within five (5) Business Days) pay to the Purchaser the absolute value of such difference by wire transfer of immediately available funds to one or more accounts designated in writing by the Purchaser to the Seller. 
3.06 Withholding.  The Purchaser shall be entitled to deduct and withhold from the consideration otherwise payable pursuant to this Agreement to the Seller such amounts as it is required to deduct and withhold with respect to the making of such payment under applicable Law; provided that, notwithstanding anything in this Agreement to the contrary, in the event any such deduction or withholding with respect to the making of any payment by Purchaser pursuant to this Agreement is required under applicable Law of the jurisdiction of incorporation or tax domicile  of Purchaser or any of its successors or assigns pursuant to Section ‎12.05 (including without limitation the Republic of Ireland), or any branch thereof, Purchaser (or such successor, assign or branch thereof) shall increase the amount payable pursuant to this Agreement as necessary so that after any such deduction or withholding has been made, including with respect to amounts payable pursuant to this Section ‎3.06, the Seller receives the amount it would have received had no such deduction or withholding been made.  To the extent the Seller obtains any actual cash tax benefits from a tax refund of or tax deduction directly related to some or all of such grossed-up amount (including any refund or reduction in taxes otherwise owed recovered by way of a foreign tax credit or such tax deduction by Seller), then Seller shall promptly reimburse the Purchaser (or such successor, assign or branch thereof) to the extent of such benefit that is actually recognized by Seller and to the extent that would not place Seller in a net after-tax worse position. The Purchaser shall make such required deductions and timely pay the full amount deducted to the applicable Governmental Entity in accordance with applicable Law, and deliver to the Seller an original or a certified copy of a receipt evidencing such payment.  Notwithstanding the foregoing, the Purchaser will provide written notice to the Seller promptly upon determination that withholding may be required on any payments under this Agreement and take such steps as the Seller may reasonably request and otherwise cooperate with the Seller to reduce or eliminate such deduction 
10

and withholding requirement.  To the extent that amounts are so deducted or withheld by the Purchaser and paid to the applicable Governmental Entity, such deducted or withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Seller in respect of which such deduction and withholding was made by the Purchaser. 
3.07 Transfer Taxes and Other Costs. 
(a)Transfer Taxes.  All Transfer Taxes payable on or in connection with the transfer of the Transferred Assets to the Purchaser and the transactions contemplated by this Agreement shall be borne equally by the Parties.   Purchaser shall pay the Transfer Taxes when due in compliance with applicable Transfer Tax Laws; provided that if the Seller determines (in its sole reasonable discretion) that it is required by applicable Law to pay any Transfer Taxes, then the Seller shall pay such Transfer Taxes. The Party not paying the Transfer Taxes shall, subject to receipt of reasonably satisfactory evidence of the other Party’s payment thereof, promptly reimburse the other Party for its share of the Transfer Taxes, whether or not such Transfer Taxes were correctly or legally imposed by the applicable Governmental Entity. 
(b)The party responsible under applicable Law for filing the applicable Tax Return with respect to such Transfer Tax shall prepare and file all necessary Tax Returns and other documentation required to be filed by it with respect to all Transfer Taxes, and, if required by applicable Law, the Parties will, and will cause their applicable Affiliates to, join in the execution of any such Tax Returns and other documentation.  The Seller and the Purchaser agree to cooperate with each other in the filing of any Tax Returns with respect to Transfer Taxes and to use commercially reasonable efforts to avail themselves of any available procedures or certifications to reduce or eliminate any Transfer Taxes, including by promptly supplying any information in its possession that is reasonably necessary to complete such Tax Returns and other documentation.
(c)Other Costs.  All costs and fees, including, without limitation, shipping and delivery costs, incurred by the Seller and any of its Affiliates related or necessary to prepare and transfer the Transferred Assets or the Assumed Liabilities to the Purchaser in accordance with the terms of this Agreement or any Ancillary Agreement, shall be the obligations of and paid solely by the Purchaser when due; provided that if any such costs or fees have been paid by the Seller, the Purchaser shall, subject to receipt of satisfactory evidence of the Seller’s payment thereof, promptly reimburse the Seller for such amounts; and provided, however, that such costs and fees shall not include costs, fees and expenses (i) addressed elsewhere in the Agreement (for example, Transfer Taxes) or (ii) in connection with the negotiation, execution and consummation of this Agreement or any of the Ancillary Agreements.
(d)All costs and expenses associated with removing and moving any Transferred Asset to a location designated by the Purchaser shall be borne and paid solely by the Purchaser when due; provided that if any such amount shall be incurred by the Seller at the direction and with the consent of Purchaser, the Purchaser shall, subject to receipt of satisfactory evidence of the Seller’s payment thereof, promptly reimburse the Seller. 
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3.08 Tax Treatment; Allocation of the Consideration.  For income Tax purposes the Parties intend that the transactions pursuant to this Agreement shall be treated as a taxable sale of the Transferred Assets in exchange for the Closing Cash Consideration, the Assumed Liabilities, the Purchaser Portion of PDUFA Fees and the right to receive Milestone Payment (except the portion thereof that may be reported as imputed interest) (the “Intended Tax Treatment”). The Parties shall file all Tax Returns in a manner consistent with the Intended Tax Treatment and shall not take any Tax position that is otherwise inconsistent with the Intended Tax Treatment, unless otherwise required to do so by a Taxing Authority following an audit or examination in which the Intended Tax Treatment has been defended in good faith.  The Parties have agreed that the Purchaser shall prepare a draft allocation schedule allocating the Closing Cash Consideration, the Assumed Liabilities and other relevant items among the Transferred Assets in accordance with the rules under Section 1060 of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder (the “Draft Allocation”).  The Purchaser shall deliver the Draft Allocation to the Seller for review and comment within thirty (30) calendar days after the final determination of the Final Cash Consideration pursuant to Section ‎3.04.  If the Seller disagrees with the Draft Allocation, the Seller may, within thirty (30) days after delivery of such Draft Allocation, deliver a written notice (an “Allocation Notice”) to Purchaser to such effect, specifying those items as to which Seller disagrees and setting forth Seller’s proposed Draft Allocation.  If an Allocation Notice is timely delivered, Seller and Purchaser shall, during the thirty (30) days following such delivery, use commercially reasonable efforts to reach agreement on the disputed items or amounts in order to determine the allocation pursuant to this Section ‎3.08. In the event that an agreement as to the allocation pursuant to this Section ‎3.08 is not reached within such thirty (30) day period, Seller and Purchaser shall jointly retain the Valuation Firm to resolve the disputed items. The costs, fees and expenses of the Valuation Firm in connection with any disputed items pursuant to this Section ‎3.08 shall be borne fifty-percent (50%) by Seller and fifty-percent (50%) by Purchaser.  The Draft Allocation, as prepared by Purchaser if no Allocation Notice has been given, or as adjusted pursuant to any agreement between Purchaser and Seller during the thirty (30) days following delivery of an Allocation Notice, or as otherwise adjusted pursuant to a determination by the Valuation Firm shall be final, conclusive and binding on the Parties (such final determination of the allocation, the “Tax Allocation”).  None of the Purchaser, the Seller, or their respective Affiliates shall take any Tax position (whether in Tax audits, Tax Returns or otherwise) that is inconsistent with the Tax Allocation unless required to do so by applicable Law.  In the event an adjustment to the post-Closing adjustment payment is made pursuant to Section ‎3.05 or otherwise under this Agreement (and any refunds and/or other payments are made in connection therewith), the Tax Allocation shall be revised to allocate such adjustment to the Transferred Assets based upon the item to which such adjustment is attributable.
Article IV.
[RESERVED]  
                             
Article V.
REPRESENTATIONS AND WARRANTIES OF THE SELLER

Except as set forth in the schedules accompanying this Agreement (each, a “Schedule” and, collectively, the “Disclosure Schedules”), the Seller represents and warrants to the Purchaser as follows:  
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5.01 Organization and Organizational Power.  The Seller is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware, and has all requisite corporate power and authority necessary to own its assets and carry on its business relating to the Products as currently conducted by it in the Territory immediately prior to the Closing, except where the absence of such power and authority would not have a Material Adverse Effect.  
5.02 Authorization; Valid and Binding Agreement.  
(a)This Agreement and the Ancillary Agreements have been duly authorized and approved by all necessary corporate action by Seller.  The performance of the Seller’s obligations hereunder and thereunder and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all requisite corporate action of the Seller, and no other proceedings on the Seller’s part are necessary to authorize the execution, delivery or performance of this Agreement.  The Seller has duly executed and delivered this Agreement the Ancillary Agreements.
(b)Assuming the due authorization, execution and delivery of this Agreement by Purchaser, this Agreement constitutes a legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general equity principles.  
(c)Assuming the due authorization, execution and delivery of the Ancillary Agreements by Purchaser, each Ancillary Agreement executed by the Seller constitutes a legal, valid and binding obligation of the Seller, enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general equity principles.
(d)The execution, delivery and performance of this Agreement and the Ancillary Agreements to which it is a party by the Seller, and the consummation of the transactions contemplated hereby or thereby, require no action by or in respect of, or any notice, report or other filing with, any Governmental Entity, other than notice and transfer filings with the Governmental Entities set forth on Schedule ‎5.02. 
5.03 No Contravention.  Except as set forth on Schedule ‎5.03, the execution, delivery and performance of this Agreement and the Ancillary Agreements by the Seller does not and the consummation of the transactions contemplated hereby or thereby will not (a) violate or result in a breach of or constitute a default, in any material respect, under any Law, authorization of a Governmental Entity or writ, injunction or decree, applicable to the Seller, or any of the Transferred Assets, (b) violate  any provision of the Seller’s certificates or articles of formation or incorporation or bylaws (or similar organizational documents), (c) conflict with, result in any breach of, constitute a default under, or result in the termination, cancellation, modification or acceleration (whether after the filing of notice or the lapse of time or both) of any right or obligation of the Seller under, or result in the creation of any Lien (other than a Permitted Lien) upon any of the Transferred Assets or in the cancellation, modification, revocation or suspension of any material authorization from any Governmental Entity, applicable to the Seller, or any of the Transferred Assets, or (d) require any 
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consent, authorization, approval, waiver or other action by any Person under any provision of any material agreement or other instrument to which the Seller is a party.
5.04 Financial Statements.  The pro forma financial information set forth on Schedule ‎5.04 (the “Financial Statements”) (a) has been prepared in good faith having regard to the purpose for which they were prepared and in accordance with the accounting policies and procedures used consistently by the Seller since January 1, 2018; (b) accurately reflects the operations of the activities described therein; (c) does not materially misstate the historic revenues, cost of goods sold, royalties and research and development expenses attributable to the Business, in each case either individually or in the aggregate; and (d) represents good faith estimates of an appropriate attribution of historic sales and marketing expenses, upon the assumption and the basis of preparation set forth on Schedule ‎5.04, where actual information was not available.  
5.05 Absence of Changes.  Since January 1, 2019 to the date hereof, there have not been any events or occurrences that have resulted in a Material Adverse Effect.  Except as set forth on Schedule ‎5.05 or except as expressly contemplated by this Agreement or any Ancillary Agreement, since January 1, 2019 to the date hereof, the Seller has not, with respect to the Business or the Transferred Assets:
(a)mortgaged or pledged any material assets, rights or interests, except Permitted Liens;
(b)sold, assigned, exchanged, transferred or otherwise disposed of any material assets, rights or interests, except in the ordinary course of business;
(c)commenced or settled any material Proceeding;
(d)except as required by GAAP or by applicable Law, materially changed any of its accounting principles or practices or revalued, wrote up, wrote down or wrote off the book value of any material assets, rights or interests;
(e)suffered any material damage, destruction or other casualty loss (whether or not covered by insurance); or
(f)entered into an agreement to do any of the foregoing.
5.06 Title to Transferred Assets.  The Seller has good and valid title to all of the Transferred Assets and will deliver to the Purchaser at the Closing all rights, title and interests in, to and under the Transferred Assets free and clear of all Liens other than Permitted Liens.  
5.07 Tax Matters. 
(a)The Seller has filed all material Tax Returns that it was required to file on or before the date of this Agreement in respect of the Transferred Assets, and all such Tax Returns are true, correct, and complete in all material respects.
(b)The Seller has paid all material Taxes in respect of the Transferred Assets, that are due and payable, except for Taxes being contested in good faith through 
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appropriate proceedings or Taxes for which adequate reserves have been established in the Financial Statements.
(c)No audits or administrative or judicial proceedings are currently being conducted or have been threatened in writing with respect to Taxes of the Seller in respect of the Transferred Assets in each instance.
(d)None of the Transferred Assets are subject to Liens for Taxes, other than Permitted Liens.
(e)The Seller has filed all material Tax Returns that it was required to file on or before the date of this Agreement and has paid all material Taxes due and owing by the Seller, except, in each case, where the failure to do so would reasonably be expected to not have a Material Adverse Effect on the Transferred Assets.  
(f)The Seller has no permanent establishment or trade or business outside of the United States with respect to the Product.
(g)None of the Transferred Assets constitutes a joint venture, partnership, or similar arrangement that is treated as a partnership for any tax purposes.
(h)The representations and warranties set forth in this Section ‎5.07 are the sole representations and warranties relating to Taxes and no other representations or warranties contained in this Agreement shall be construed to cover any matter involved Taxes.
5.08 Transferred Contracts.
(a)Schedule ‎5.08(a) sets forth all currently effective agreements, undertakings, arrangements or understandings with any Third Party that relate primarily to the Business or the Product and which are not Transferred Contracts hereunder (such contracts, the “Non-Transferred Contracts”).    For the avoidance of doubt, any agreements that apply to all of the Seller’s commercially available products shall not constitute agreements that relate primarily to the Business or the Product.
(b)Except as set forth on Schedule ‎5.08(b), there are no Transferred Contracts or Non-Transferred Contracts which constitute:
(i)any joint venture, partnership, limited liability company or other similar agreements or arrangements providing for joint research, joint development or joint marketing of the Products;
(ii)any agreement with a Third Party (A) pursuant to which Seller has granted such Third Party a license to any of the Transferred IP or Licensed IP; or (B) pursuant to which such Third Party has granted Seller a license to Intellectual Property of such Third Party; 
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(iii)any agreement, including any option agreement, granting to any Person a right of first refusal or option to purchase or acquire any assets of the Business (whether by merger, sale of stock, sale of assets or otherwise related to the Business) other than for the Seller’s sale of units of Product in the ordinary course of business;
(iv)any agreement (other than confidentiality and non-solicitation agreements entered into in the ordinary course) that (A) limits the freedom of Seller to operate the Business or with any Person or in any area or that would so limit the freedom of the Purchaser or its Affiliates after the Closing (other than customary exclusive distribution agreements for the Products), (B) contains a covenant not to compete or that has exclusivity obligations or field or territory restrictions that  restrict the freedom to operate the Business that are binding on the Seller or that would be binding on the Purchaser or any of its Affiliates after the Closing;
(v)any agreement for the purchase of materials, supplies, goods, services, equipment or other assets related to the Business that is reasonably expected to involve annual payments on the part of Seller in excess of $500,000 and is not terminable by Seller on ninety (90) calendar days’ notice or less without premium or penalty (excluding sales orders and purchase orders issued in the ordinary course of business);
(vi)any sales, distribution, agency or other similar agreement providing for the sale by the Business of Products, which is reasonably expected to involve annual payments to Seller over the remaining term of the agreement in excess of $500,000 and is not terminable by Seller on ninety (90) calendar days’ notice or less without premium or penalty (excluding sales orders and purchase orders issued in the ordinary course of business); 
(vii)any other agreement which is reasonably expected to involve annual payments to Seller or on the part of Seller, in each case, over the remaining term of the agreement in excess of $500,000 and is not terminable by Seller on ninety (90) calendar days’ notice or less without premium or penalty; and
(viii)any agreement under which the Business has (A) granted a Lien (other than a Permitted Lien) on any  Transferred Asset or Licensed IP, other than a Lien that will be released as of the Closing or (B) provided for the sale of any Transferred Asset, or granted any preferential rights to purchase any Transferred Asset, in each case outside the ordinary course of business.
(c)Except as set forth on Schedule ‎5.08, as of the date hereof, each of the Transferred Contracts is valid, binding, enforceable and in full force and effect, and none of the Seller, or, to the Seller’s Knowledge, any other Person party to such contract is in default or breach in any material respect (or is alleged to be in default or breach in any material respect) under any such contract, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, moratorium, sponsorship or other Laws relating to or affecting creditors’ rights generally and to general principles of equity, whether considered at law or in equity.  During the past two (2) years, the Seller 
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has not received written notice of any material default, non-renewal, intent to terminate, or termination under any Transferred Contract.  
5.09 Intellectual Property.  
(a)Except with respect to non-exclusive licenses granted to third parties in the ordinary course of business, (which does not include any licenses to generics or competitors) agreements with distributors entered into in the ordinary course of business, “shrink-wrap”, other generally available commercial licenses or contracts otherwise included in Schedule ‎5.08, the Transferred IP and Licensed IP includes all Domain Names, Product Copyrights, Patents and Trademarks currently used exclusively in connection with the Products in the Territory by the Seller.  Except as set forth on Schedule ‎5.09, the Seller is the sole and exclusive owners of all right, title and interest of each item of Transferred IP and has valid and continuing rights to use, sell and license, as the case may be, such Transferred IP and Licensed IP, free and clear of all Liens other than Permitted Liens or obligations to other Persons  pursuant to the Transferred Contracts. 
(b)To the Knowledge of the Seller, the operation of the Business as currently conducted or as currently contemplated to be conducted, does not infringe upon or otherwise violate, and has not infringed upon or otherwise violated any of the Intellectual Property rights of any Person.
(c)Except as set forth on Schedule ‎5.09‎(c), to the Knowledge of the Seller, no Person has in the past three (3) years infringed or is currently infringing upon or otherwise materially violating the Transferred IP or Licensed IP.
(d)None of the Transferred IP or, to the Knowledge of the Seller, Licensed IP is or has been the subject  of any written: objection, claim, assertion or challenge with respect to the ownership, patentability, validity, enforceability, or inventorship thereof, including, without limitation, by Université Laval and/or the Centre Hospitalier de l’Université Laval.
(e)The Seller has taken commercially reasonable measures to maintain the Transferred IP and, subject to the applicable contractual rights to take such actions, the Licensed IP under any applicable Law (including making and maintaining in full force and effect all necessary filings, registrations and issuances). 
(f)To the Knowledge of the Seller, commercially reasonable measures have been taken to maintain the Licensed IP under any applicable Law (including making and maintaining in full force and effect all necessary filings, registrations and issuances).
5.10 Litigation.  Except as set forth on Schedule ‎5.10, there are no material Proceedings with respect to the Seller, the Business, the Transferred Assets, or, to the Knowledge of the Seller, the Licensed IP pending or, to the Knowledge of the Seller, threatened in writing that (A), individually or when taken as a whole, would have an adverse effect on or materially impair the ability of the Seller to enter into this Agreement or consummate the transactions contemplated hereby, or (B) involves the 
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development, packaging, labeling, storage, import, export, use and marketing of the Product in the Territory and the manufacture of such Product or the Transferred Assets, or is otherwise specifically and substantially targeted at the Product.  Except as set forth on Schedule ‎5.10, the Seller is not subject to any outstanding judgment, order, arbitral award or decree of any court or other Governmental Entity with respect to the Business of the Transferred Assets. 
5.11 Compliance with Laws; Licenses and Permits.  Except as disclosed on Schedule ‎5.11: 
(a)Since January 1, 2018, Seller has conducted the Business in material compliance with applicable Laws and, the Seller has not received any written notice alleging material noncompliance with applicable Laws.
(b)Seller has all material licenses, franchises, permits, concessions, exemptions, orders, certificates, registrations, re-registrations, applications, consents, approvals, qualifications or other similar authorizations issued by applicable Governmental Entities, including Marketing Authorizations, necessary to operate the Business (the “Permits”).  The Permits are valid and in full force and effect, fully-transferable to the extent applicable and permissible, and, to the Knowledge of Seller, none of the material Permits will be revoked, materially modified, withdrawn or terminated as a result of the transactions contemplated by this Agreement.  No Proceeding is pending or, to the Knowledge of Seller, threatened regarding the withdrawal, material adverse modification or revocation of any such Permit.  As of the date hereof, Seller has not received any written communication from any Governmental Entity threatening to withdraw, materially modify or suspend any Permit.  To the Knowledge of Seller, Seller is not in material violation of the terms of any Permit.
(c)(i) Since the commercial launch of the Product in the Territory, there have been no recalls, withdrawals or suspensions conducted by or on behalf of Seller concerning the Products in the Territory, whether voluntary or otherwise; (ii) there are no pending Proceedings seeking the recall, market withdrawal, or suspension of any Product or otherwise relating to the alleged lack of safety, efficacy or regulatory compliance of any Product; and (iii) there have been no warning letters or untitled letters from any Governmental Entity received by the Seller in the two (2) years prior to the date hereof relating to any Product or Product manufacturing facility.
(d)Since the commercial launch of the Product in the Territory, the Products have been manufactured in compliance in all material respects with applicable Law, including cGMP and applicable Marketing Authorizations. 
(e)Since the commercial launch of the Product in the Territory, the Seller has not received any material written claims alleging that any Product failed to meet its specifications set forth in applicable Marketing Authorizations. 
(f)Seller is not party to any corporate integrity agreements, monitoring agreements, consent decrees, settlement orders or similar material agreements with or imposed by any Governmental Entity relating specifically to any part of the Business.
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(g)The Seller has not been, with respect to the sale of the Products in the Territory, the operation of the Business or the ownership of the Transferred Assets:
(i)convicted of or charged or threatened in writing with prosecution or, to the Seller’s Knowledge, has been under investigation, by a Governmental Entity for any violation of a Healthcare Regulatory Law including any law applicable to a health care program defined in 42 U.S.C. § 1320a-7b(f) (“Federal Health Care Programs”);
(ii)convicted of, charged with, or, to the Seller’s Knowledge, is under investigation for, any violation of applicable Law related to fraud, theft, embezzlement, breach of fiduciary responsibility, financial misconduct, obstruction of an investigation, or manufacture, storage, distribution or sale of controlled substances;
(iii)debarred pursuant to the Healthcare Regulatory Laws;
(iv)excluded, suspended or debarred from participation, or is otherwise ineligible to participate, in any Federal Health Care Program, any federal, state, or local governmental procurement or non-procurement program, or any other federal or state government program or activity; or
(v)found to have committed any violation of Law that is reasonably expected to serve as the basis for any such exclusion, suspension, debarment or other ineligibility.
(h)Neither the Seller, any of its directors, officers, employees nor, to the Knowledge of the Seller, its representatives or authorized agents, has, with respect to the sale of the Products in the Territory, the operation of the Business or the ownership of the Transferred Assets, (i) made any payment of cash or other consideration (including payments or discounts to customers or clients or employees of customers or clients) for purposes of doing business with such Persons, or taken any action, or failed to take any action, in violation of any Laws prohibiting the payment of undisclosed commissions or bonuses; (ii) made, offered, promised, authorized,  received, or solicited any illegal contribution, gift, bribe, rebate, payoff, commission, promotional allowance, influence payment, kickback, or other payment or economic benefit or anything of value to any person, in any country, private or public, regardless of what form, whether in money, property, or services; (iii) paid, established or maintained any funds or assets that have not been recorded in the books and records of the Seller; or (iv) aided, abetted, caused (directly or indirectly), participated in, or otherwise conspired with, any person or entity to violate the terms of any judgment, sentence, order or decree of any court or Governmental Entity applicable to the Seller or its Subsidiaries.
(i)Except for transactions that have been authorized pursuant to specific licenses issued by the U.S. Office of Foreign Assets Control (“OFAC”), in the past five (5) years, neither the Seller  any of its directors, officers, employees nor to the Knowledge of the Seller, its representatives or authorized agents, has, with respect to the sale of the Products in the Territory, the operation of the Business or the ownership of the Transferred Assets, participated in any transaction in or involving (i) a party designated on the OFAC Specially Designated Nationals and Blocked Persons List or other similar 
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list, or owned fifty percent (50%) or more by one or more such parties, (ii) a country with which such transactions by the Seller or its Subsidiaries are prohibited pursuant to applicable Laws including U.S. economic sanctions administered by OFAC (“sanctioned country”), or (iii) a government or national of a sanctioned country where prohibited by applicable Laws including U.S. economic sanctions administered by OFAC.
(j)The Seller, its directors, officers, employees and, to the Knowledge of the Seller, its representatives and authorized agents, are, with respect to the sale of the Products in the Territory, the operation of the Business or the ownership of the Transferred Assets, in compliance with all Laws or regulations of any applicable jurisdiction that relate to money laundering, terrorist financing, or financial recordkeeping and reporting requirements relating to money laundering, terrorist financing, or financial recordkeeping.
(k)Notwithstanding the foregoing, Seller makes no representation or warranty in this Section ‎5.11 with respect to Tax matters or litigation matters, which matters are exclusively addressed in Sections ‎5.07 and ‎5.10, respectively.
5.12 Affiliated Transactions.  Except as set forth on Schedule ‎5.12 and except as relating to matters addressed in the Transition Services Agreement, none of the Transferred Assets relate to or will trigger any current or future rights or obligations between, among or involving the Seller or its Affiliates, on one hand, and any current or former officer, director or employee of the Seller (or Affiliate thereof), on the other hand, which will become an obligations of the Purchaser by reason of the transactions contemplated by this Agreement or the Ancillary Agreements.
5.13 Brokerage.  Except for fees and expenses of the Persons listed on Schedule ‎5.13, there are no claims for brokerage commissions, finders’ fees or similar compensation in connection with the transactions contemplated by this Agreement based on any arrangement or agreement made by or on behalf of the Seller for which the Seller would be liable following the Closing.
5.14 Product Warranty.  All Saleable Inventory shall, as of the Closing, (i) be in compliance with the Product’s applicable specifications, (ii) have been manufactured in accordance with all applicable Laws, (iii) not be adulterated or misbranded within in the meaning of any applicable Law, (iv) have been approved by the U.S. Food and Drug Administration (“FDA”) for commercial sale in the Territory, and (v) have no less than twelve (12) months remaining shelf life.
5.15 Product Distribution Practices.  Except as set forth on Schedule ‎5.15 since January 1, 2019, each of Seller and its Affiliates has conducted distribution and shipments of the Product in the ordinary course of Business, quantities and at prices consistent with past Product demand and shipment and sales practices in all material respects, and not in quantities in excess of the historical or market demand for the Products, and, in particular, since January 1, 2019, Seller has not engaged in (a) stopping or slowing shipments of the Products; (b) “loading” selling of the Products; (c) encouraging or requiring customers to “buy in” the Products, or (d) taking any similar actions inconsistent with past practice that would reasonably be expected to  adversely affect sales of the Products following the Closing Date.
5.16 Regulatory Matters.
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(a)The Marketing Authorizations are in full force and effect.  All maintenance and other fees related to the Marketing Authorizations occurring prior to the Closing Date have been paid.  All Marketing Authorizations and all related records have been maintained in accordance with applicable Laws.
(b)The distribution of the Products by Seller in the Territory has been conducted in material compliance with the Marketing Authorizations and all applicable Law. 
(c)Seller has completed and filed all annual or other reports required by the FDA in order to maintain the Marketing Authorizations, except for filings not yet due.
5.17 Sufficiency of Assets. Except as forth on Schedule ‎5.17 and for (a) Shared Contracts and Non-Transferred Contracts, (b) actions taken or performed by Seller’s personnel or agents in connection with the operation of the Business, (c) IT systems and other equipment used in the ordinary course of business, (d) those services contemplated to be provided pursuant to the Transition Services Agreement and (e) other non-Product specific general administrative and corporate functions performed by Seller (including for the avoidance of doubt, sales and marketing functions), the Transferred Assets are sufficient in all material respects to provide Purchaser with the legal rights and assets necessary for the manufacture, marketing, and sale of the Products in the Territory as conducted by Seller immediately prior to the Closing Date.
5.18 Solvency.  As of immediately after giving effect to the Closing, Seller and its applicable Subsidiaries (a) will be able to pay their respective obligations in the ordinary course of business as they become due and will own property that has a fair saleable value greater than the amounts required to pay their respective liabilities (including all liabilities, whether or not reflected in a balance sheet prepared in accordance with GAAP and whether direct or indirect, fixed or contingent, secured or unsecured, disputed or undisputed), and (b) will have adequate capital to carry on their respective businesses.  No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated by this Agreement with the intent to hinder, delay or defraud either present or future creditors of the Seller or its Subsidiaries.
5.19 Insurance. Seller is in compliance in all material respects with the terms of its insurance policies applicable to the Business and the Transferred Assets. Such insurance policies have provided substantially similar insurance coverage continuously since the commercial launch of the Product in the Territory. Such insurance policies are sufficient for material compliance with applicable FDA requirements and with all agreements to which Seller is a party. All claims, occurrences, litigation, and circumstances related to the Business or the Transferred Assets that would reasonably be expected to lead to a claim have been properly reported to the applicable insurer. 
5.20 No Other Representations and Warranties
EXCEPT AS EXPRESSLY SET FORTH IN THIS ‎Article V, (A) NONE OF SELLER OR ANY OF ITS AFFILIATES IS MAKING OR HAS MADE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, WITH RESPECT TO THIS AGREEMENT, THE ANCILLARY AGREEMENTS, Seller, THE TRANSFERRED ASSETS, THE ASSUMED LIABILITIES, THE BUSINESS, THE TRANSACTIONS 
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CONTEMPLATED BY THIS AGREEMENT (INCLUDING ANY CONSENTS OR APPROVALS REQUIRED IN CONNECTION THEREWITH) OR ANY INFORMATION PROVIDED OR MADE AVAILABLE TO THE PURCHASER IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (INCLUDING ANY FORECASTS, PROJECTIONS, ESTIMATES, BUDGETS, PRESENTATIONS CONCERNING THE BUSINESS (INCLUDING WITHOUT LIMITATION, THE CONFIDENTIAL INFORMATION MEMORANDA AND ANY “TEASER” DOCUMENTS), OR DUE DILIGENCE OR OTHER MATERIALS PROVIDED IN THE DATA ROOM), INCLUDING ANY WARRANTY WITH RESPECT TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, AND ALL OTHER REPRESENTATIONS OR WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED AND SHALL NOT BE DEEMED TO BE OR TO INCLUDE REPRESENTATIONS OR WARRANTIES OF ANY OF THE FOREGOING PARTIES AND HAVE NOT BEEN RELIED UPON BY THE PURCHASER OR ANY OF ITS AFFILIATES IN EXECUTING, DELIVERING AND PERFORMING THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY; AND (B) ALL OF THE ASSETS AND LIABILITIES TO BE SOLD, CONVEYED, ASSIGNED, TRANSFERRED OR ASSUMED, AS APPLICABLE, IN ACCORDANCE WITH THIS AGREEMENT, SHALL BE SOLD, CONVEYED, ASSIGNED, TRANSFERRED OR ASSUMED ON AN “AS IS, WHERE IS” BASIS.
Article VI.
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

The Purchaser represents and warrants to the Seller as follows:
6.01 Organization and Organizational Power.  The Purchaser is a company duly organized, validly existing and in good standing under the Laws of the country of Ireland, and has all requisite corporate power and authority necessary to enter into this Agreement and the Ancillary Agreements, to perform its obligations hereunder and thereunder, to consummate the transactions contemplated hereby and thereby, to own the Transferred Assets and carry on the Business.  
6.02 Authorization; Valid and Binding Agreement.  
(a)This Agreement and the Ancillary Agreements have been duly authorized and approved by all necessary corporate action by Purchaser.  The performance of the Purchaser’s obligations hereunder and thereunder and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all requisite corporate action of the Purchaser, and no other proceedings on the Purchaser’s part are necessary to authorize the execution, delivery or performance of this Agreement.  The Purchaser has duly executed and delivered this Agreement and the Ancillary Agreements.
(b)Assuming the due authorization, execution and delivery of this Agreement by Seller, this Agreement constitutes a legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as 
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enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general equity principles.  
(c)Assuming the due authorization, execution and delivery of the Ancillary Agreements by Seller, each Ancillary Agreement executed by the Purchaser,  constitutes a legal, valid and binding obligation of the Purchaser, enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general equity principles.
(d)The execution, delivery and performance of this Agreement and the Ancillary Agreements by the Purchaser, and the consummation of the transactions contemplated hereby and thereby, require no action by or in respect of, or any notice, report or other filing with, any Governmental Entity, other than (i) notice and transfer filings with the regulatory bodies set forth on Schedule ‎6.02 and (ii) any actions or filings under Laws, the absence of which would not be, individually or in the aggregate, materially adverse to the Purchaser or materially impair the ability of the Purchaser to perform its obligations and to consummate the transactions contemplated hereby or thereby. 
6.03 No Contravention.  Except as set forth on Schedule ‎6.03, the execution, delivery and performance of this Agreement and the Ancillary Agreements by the Purchaser does not and the consummation of the transactions contemplated hereby or thereby will not (a) violate or result in a breach of or constitute or constitute a default, in any material respect, under any Law, authorization of a Governmental Entity or writ, injunction or decree, applicable to the Purchaser or any of the Transferred Assets, (b) violate any provision of the Purchaser’s certificate or articles of formation or incorporation or bylaws (or similar organizational documents), (c) result in the cancellation, modification, revocation or suspension of any material authorization from any Governmental Entity, applicable to any of the Transferred Assets, or (d) require any consent, authorization, approval, waiver or other action by any Person under any provision of any material agreement or other instrument to which the Purchaser is a party.
6.04 Brokerage.  There are no claims for brokerage commissions, finders’ fees or similar compensation in connection with the transactions contemplated by this Agreement based on any arrangement or agreement made by or on behalf of the Purchaser for which the Seller or any of its respective Affiliates would be liable following the Closing.
6.05 Solvency.  As of immediately after giving effect to the Closing, each of the Purchaser and its applicable Subsidiaries (a) will be able to pay their respective obligations in the ordinary course of business as they become due and will own property that has a fair saleable value greater than the amounts required to pay their respective liabilities (including all liabilities, whether or not reflected in a balance sheet prepared in accordance with GAAP and whether direct or indirect, fixed or contingent, secured or unsecured, disputed or undisputed), and (b) will have adequate capital to carry on their respective businesses, including the Business.  No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated by this Agreement with the intent to hinder, delay or defraud either present or future creditors of the Purchaser or its Subsidiaries.
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Article VII.
COVENANTS
                           
7.01 Access to Books and Records.  From and after the Closing, for a period of three (3) years, the Purchaser shall, and shall cause its Affiliates to, provide the Seller and its authorized representatives with access, during normal business hours and upon reasonable notice, to (a) the books and records (for the purpose of examining) of the Purchaser and its Subsidiaries with respect to periods or occurrences prior to or on the Closing Date and (b) employees of the Purchaser and its Subsidiaries for purposes of better understanding such books and records; provided that, notwithstanding the foregoing, (i) such access does not unreasonably interfere with the normal operations of the Purchaser or its Subsidiaries, (ii) nothing herein shall require the Purchaser or its Subsidiaries to provide access to, or to disclose any information to, the Seller or its authorized representatives if such access or disclosure would reasonably be expected to (x) waive any legal privilege, or (y) be in violation of applicable law, and (c) as a condition to providing such access, the Seller and the Purchaser enter into a nondisclosure agreement reasonably acceptable to Purchaser.  Unless otherwise consented to in writing by the Seller, the Purchaser shall not, and shall not permit its Subsidiaries to, for a period of seven years following the Closing Date, destroy, alter or otherwise dispose of any of the books and records of the Seller or its Subsidiaries for any period prior to and including the Closing Date without first giving reasonable prior notice to the Seller and offering to surrender to the Seller such books and records or any portion thereof which the Purchaser or the Seller may intend to destroy, alter or dispose of.  
7.02 Further Assurances.  From time to time after the Closing Date, at the request of another Party, without further consideration and at the expense of the Party so requesting, each of the Parties shall execute and deliver to such requesting party, or shall cause to be executed and delivered to such requesting party, such additional instruments or documents, and shall take or cause to be taken such other action, as such requesting party may reasonably request in order to consummate more effectively the transactions contemplated by this Agreement.
7.03 Transfer of Marketing Authorizations; National Drug Codes.  
(a)Marketing Authorizations. As promptly as reasonably practicable following the Closing, Purchaser and Seller shall file the Transfer Letters with the FDA to transfer ownership of the Marketing Authorizations for the Product.
(b)National Drug Codes. As promptly as reasonably practicable following the Closing, Purchaser shall initiate applicable processes necessary, and shall use its Commercially Reasonable Efforts, to obtain, establish and begin using its own National Drug Code for the Product, including, without limitation, submission for approval of primary and secondary packaging, label and/or package insert for the Product. As promptly as reasonably practicable following the Closing, Purchaser and Seller shall submit all appropriate and necessary documentation with respect to approval by the FDA and any other applicable Governmental Entity of the removal of Trademarks of the Seller or its Affiliates and the inclusion of Purchaser’s name, corporate logo and National Drug Code on labeling for each Product, subject to the Transitional Trademark License Agreement, and Purchaser shall apply for and obtain and begin using its own National Drug Code for the Product, and shall promptly notify Seller thereof.  Notwithstanding the 
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foregoing, Purchaser shall only be entitled to (i) complete manufacturing and packaging of, and (ii) promote, market, sell, distribute and/or otherwise commercialize, Product using Seller’s National Drug Code, for up to twelve (12) months following the Closing; provided, however, that Purchaser may reasonably request, within six (6) months from Closing, to manufacture and package additional units of Product using Seller’s National Drug Code, in an amount not to exceed 42,000 units, subject to Seller’s consent, which consent may not be unreasonably withheld.  
7.04 Shared Contracts.  Except as otherwise set forth in the Transition Services Agreement, the sole obligation of the Seller and its Affiliates with respect to Shared Contracts shall be to introduce Purchaser to the applicable Third Party and to reasonably assist the Purchaser in the negotiation and entering into a new agreement with the applicable Third Party, in each case, for a period of three (3) months following the Closing.  The costs of entering into a new contract or contract(s) shall be borne by the Purchaser.
7.05 Payments from Third Parties.  Except as expressly provided in any Ancillary Agreement, in the event that, on or after the Closing Date, (i) the Seller or any of its Affiliates shall receive any payments or other funds due to the Purchaser or any of its Affiliates from Third Parties, or (ii) the Purchaser or any of its Affiliates shall receive any payments or other funds due to Seller or any of its Affiliates from Third Parties, in each case pursuant to the terms of this Agreement or of any Ancillary Agreement, then the relevant party receiving such funds shall promptly forward such funds to the proper party.  The Parties acknowledge and agree there is no right of offset regarding such payments and a Party may not withhold funds received from third parties for the account of the other Party in the event there is a dispute regarding any other issue under this Agreement or of any Ancillary Agreement.  In the event of any conflict between this Section ‎7.05 and the provisions of the relevant Ancillary Agreement (including any provisions thereof related to the collection of accounts receivable), the provisions of the relevant Ancillary Agreement shall control. 
7.06 Return of Excluded Assets and Transferred Assets.  
(a)If, for any reason after the Closing Date, any asset transferred to Purchaser or its Affiliates is ultimately determined to be an Excluded Asset or Purchaser is found to be in possession of any Excluded Asset, (i) the Purchaser or such Affiliate shall be treated as having received and held the Excluded Asset as nominee for the Seller or its Affiliate (as the case may be); (ii) the Purchaser shall promptly notify the Seller and, should the Seller so request, return or transfer and convey (without further consideration) to the Seller, and the Seller will accept, such asset; (iii) upon any such return, transfer or conveyance, the Seller shall assume and agree to pay, perform, fulfill and discharge (without further consideration) any Excluded Liabilities associated with such asset as contemplated in this Agreement and pay any reasonable out-of-pocket costs and expenses borne by the Purchaser or its Affiliates in connection with such return, transfer or conveyance; and (iv) upon any such return, transfer or conveyance, the Purchaser and the Seller shall, and shall cause their respective Affiliates to, promptly execute such documents or instruments of conveyance or assumption and take such further actions which are reasonably necessary or desirable to effect the transfer of such asset back to the Seller. 
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(b)If, for any reason after the Closing Date, any asset retained by the Seller or its Affiliate is ultimately determined to be a Transferred Asset or the Seller or its Affiliate is found to be in possession of any Transferred Asset, the Seller shall promptly notify the Purchaser and should the Purchaser so request, (i) return, deliver, or transfer and convey (without further consideration) to Purchaser, and the Purchaser shall accept, such asset; (ii) upon such return, delivery, transfer or conveyance, the Purchaser shall assume and agree to pay, perform, fulfill and discharge (without further consideration) any Assumed Liabilities associated with such asset as contemplated in this Agreement; and (iii) upon any such return, delivery, transfer or conveyance, the Purchaser and the Seller will promptly execute such documents or instruments of conveyance or assumption and take such further actions which are reasonably necessary or desirable to effect the transfer of such asset to Purchaser. 
7.07 Mutual Non-Solicitation. From and after the Closing Date, the Seller and the Purchaser each agree that they shall not, and they shall each cause their respective Subsidiaries and Affiliates to not, for a period of one (1) year after such Closing Date, directly or indirectly, encourage, induce, or solicit (a) in the case of Seller, any employee to leave employment with the Purchaser or any of its Affiliates or (b) in the case of the Purchaser, any employee of Seller or any of its Affiliates  to leave employment with the Seller or any of its Affiliates; provided that this clause shall not preclude the Seller, the Purchaser or any of their respective Subsidiaries or Affiliates from (i) posting a general solicitation through a public medium or general or mass mailing by or on behalf of the Seller, the Purchaser or any of their respective Subsidiaries or Affiliates, as applicable, that is not targeted at employees of such other party or (ii) soliciting any terminated employee of such other party so long as such former employee has been terminated from the employment with the Seller, the Purchaser or any of their respective Subsidiaries or Affiliates, as applicable.
7.08 Noncompete. During the period set forth in Schedule ‎7.08,  the Seller shall not, and shall cause its Affiliates not to, directly or indirectly, including through merger, acquisition or similar transaction (a) market, manufacture, sell, distribute, or otherwise commercialize any pharmaceutical product as a monotherapy with the same indications and the same active pharmaceutical ingredient as the Product as of the date hereof (“Competing Product”) anywhere in the Territory, or (b) undertake the planning or organization of any activity to market, manufacture, sell, distribute, or otherwise commercialize any Competing Product or  assist or cooperate in any way with any other Person to market, manufacture, sell, distribute, or otherwise commercialize any Competing Product, anywhere in the Territory; provided, however, that nothing herein shall prevent the Seller and its Affiliates from, and the Seller and its Affiliates shall have no liability to the Purchaser under this paragraph in connection with, (i) acquiring (including by merger or consolidation) a Person or substantially all of the assets of a Person engaged in the development, marketing, manufacturing, selling, distribution, or commercialization of a Competing Product, provided that such Person’s Competing Product represents less than thirty percent (30%) of that Person’s total assets or gross sales; (ii) continuing the operations of a Person or a business acquired pursuant to the prior clause (i) in the ordinary course of such Person’s or assets’ business consistent with their past practices; (iii) beneficially owning up to five percent (5%) of the total equity interests outstanding of any Person engaged in the development and/or commercialization of a Competing Product; (iv) issuing equity to and/or accepting an investment from a Person directly or indirectly engaged in the development, marketing, manufacturing, selling, distribution, or commercialization of a Competing Product or (v) performing its obligations under those 
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arrangements set forth in this Agreement or the Ancillary Agreements; provided, further, that  upon the acquisition by a Person or group of Persons of at least a majority of the business or assets of the Seller and its Subsidiaries, taken as a whole, any product held as of the date of such acquisition by such Person or group of Persons that would otherwise be a Competing Product hereunder shall be excluded from the definition of Competing Product for purposes of this paragraph.
7.09 Insurance.  The coverage under all insurance policies related to the Transferred Assets and the Business and arranged or maintained by Seller or its Affiliates is only for the benefit of Seller and its Affiliates, and not for the benefit of the Purchaser or the Business, and shall continue in force only for the benefit of the Seller or any of its Affiliates following the Closing; provided, however, the foregoing in no way limits or restricts Purchaser’s rights or Seller’s obligations under ‎Article VIII. From and after the Closing Date, the Purchaser shall arrange for its own insurance policies with respect to the Transferred Assets and the Business, and Purchaser shall have no recourse or rights to any coverage under any of the Seller’s or its Affiliates’ insurance policies, including for any claims relating in any way to the Transferred Assets or the Business. With respect to insurance policies related to the Transferred Assets and the Business, Seller shall not (a) take any actions, other than file bona fide claims, which would make a policy void or voidable or prejudice the ability to effect equivalent insurance in the future, and (b) fail to maintain its insurance coverage, pay premiums, and report claims to its insurance carrier in a timely matter until the third (3rd) anniversary of the Closing Date.
7.10 Recalled Products. 
(a)From and after the transfer of the Marketing Authorizations, each Party shall notify the other as soon as practicable after it becomes aware of any adulteration, misbranding, contamination of or other latent defect in (i) the Product bearing Seller’s NDC Code sold prior to the Closing, or  (ii) any Saleable Inventory (each of the foregoing described in clauses (i) and (ii), a “Relevant Product”). If a Governmental Entity issues a warning letter or threatens or commences a Proceeding (including seeking an injunction) in relation to, seizes, or requests or requires a recall of a Relevant Product, Purchaser or Seller, as the case may be, shall immediately notify the other Party of the action, seizure, request or requirement and provide to the other Party a copy of any warning letter or notice given by the Governmental Entity. If an action as described in the foregoing sentence requires response, Purchaser will consult with the Seller prior to providing any information to or otherwise communicating (whether in written or oral form) with the applicable Governmental Entity with respect to the response, and incorporate the reasonable comments of the Seller in connection with providing such information or response,  and/or determining the nature, content and scope of that response and will have sole discretion of all procedures and steps in respect of that response, whether or not the response is to be given by Purchaser or Seller, provided that such procedures and steps are reasonable and in compliance with applicable Laws. 
(b)From and after the transfer of the Marketing Authorizations, except as otherwise provided in any Transferred Contract, Purchaser shall have the right, in Purchaser’s sole discretion, to decide whether to undertake a recall of Product voluntarily, and the nature, level and scope of, and all steps and procedures with respect to, any such voluntary recall, subject to and in compliance with applicable Laws; 
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provided that Purchaser shall (i) notify the Seller immediately upon initiation of the consideration of a recall that pertains to Relevant Product, (ii) consult with Seller with respect to such recall that pertains to Relevant Product, including the reasons for and the proposed nature, level and scope of the proposed voluntary recall, prior to initiating, communicating or announcing such recall. If Purchaser determines to recall a Relevant Product, then (A) Purchaser shall take all reasonable steps to affect the recall, in compliance with applicable Laws and (B) Purchaser and Seller shall use Commercially Reasonable Efforts to mitigate the costs of such recall. Purchaser shall be responsible for all costs and expenses (including any costs and expenses of Seller and its Affiliates) with respect to any recalls of  Product manufactured and sold after Closing, or recalls of Relevant Product sold after Closing to the extent such recall results from Purchaser’s adulteration, misbranding, contamination, damage or mishandling of such Relevant Product after Closing. Seller shall be responsible for all reasonable costs and expenses (including the reasonable costs and expenses of Purchaser and its Affiliates) to the extent such recall was of Relevant Product, unless such recall results from Purchaser’s adulteration, misbranding, contamination, damage or mishandling of such Relevant Product after Closing, subject to receipt of satisfactory evidence of Seller’s costs and expenses and, if applicable, a summary report of the actions taken by Purchaser in connection with such recall and their effectiveness, for Seller’s books and records. 
(c)If a Governmental Entity requires the recall of a Relevant Product, Purchaser shall comply with any notice given by the Governmental Entity with respect to such recall and notify the Seller as soon as practicable after receipt of such notice. Purchaser shall be responsible for all reasonable costs and expenses (including the reasonable costs and expenses of Seller and its Affiliates required to be incurred by Seller and its Affiliates in order to comply with such notice; provided that no such costs and expenses shall be incurred without the prior consent of Purchaser) associated with such recall to the extent the recall is of Product manufactured and sold after Closing, or a recall of Relevant Product sold after Closing to the extent such recall results from Purchaser’s adulteration, misbranding, contamination, damage or mishandling of such Relevant Product after Closing. Seller shall be responsible for all reasonable costs and expenses (including the reasonable costs and expenses of Purchaser and its Affiliates required to be incurred by Buyer and its Affiliates in order to comply with such notice) associated with such recall to the extent the recall is of Relevant Product, unless such recall results from Purchaser’s adulteration, misbranding, contamination, damage or mishandling of such Relevant Product after Closing, subject to receipt of satisfactory evidence of Seller’s costs and expenses and, if applicable, a summary report of the actions taken by Purchaser in connection with such recall and their effectiveness, for Seller’s books and records.
(d)Nothing in this Section ‎7.10 shall limit the Parties’ respective obligations under the Transition Services Agreement.

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Article VIII.
INDEMNIFICATION
                              
8.01 Indemnification by Seller.   From and after the Closing, subject to the limitations in this Article VIII:
(a)Seller shall indemnify and hold Purchaser and its officers, directors, employees and Affiliates (together, the “Purchaser Indemnified Parties”) harmless against any and all Indemnifiable Amounts incurred by any of the Purchaser Indemnified Parties by reason of or to the extent arising out of:
(i)any misrepresentation, breach or inaccuracy of any representation or warranty of Seller contained in this Agreement; 
(ii)any Excluded Liabilities;
(iii)any Excluded Assets; and
(iv)the non-fulfillment of any agreement or covenant of Seller contained in this Agreement.
8.02 Indemnification by Purchaser. 
(a)From and after the Closing, subject to the limitations in this ‎Article VIII, Seller and its respective officers, directors, employees and Affiliates (the “Seller Indemnified Parties”) shall be entitled to be indemnified and held harmless against any and all Indemnifiable Amounts incurred by such Seller Indemnified Parties by reason of or to the extent arising out of:
(i) any misrepresentation, breach or inaccuracy of any representation or warranty of Purchaser contained in this Agreement;
(ii) any Assumed Liabilities;
(iii) the use of any Transferred Assets after the Closing; and
(iv) the non-fulfillment of any agreement or covenant of Purchaser contained in this Agreement.
8.03 Third Party Claims. 
(a)Notwithstanding anything to the contrary contained herein, whenever a Purchaser Indemnified Party or a Seller Indemnified Party seeking indemnification under this ‎Article VIII (the “Indemnified Party”) shall learn that a claim or demand has been asserted or threatened by a Third Party (“Third-Party Claim”) as to which the Indemnified Party may seek indemnification hereunder, the Indemnified Party shall promptly notify the party against whom indemnification is sought (the “Indemnifying 
29

Party”) of such claim or demand and of the facts within the Indemnified Party’s knowledge that relate thereto, setting forth in reasonable detail a description of the matter, and, if known, the anticipated Indemnifiable Amounts; provided that the failure to promptly notify the Indemnifying Party shall not release the Indemnifying Party from any of its obligations under this ‎Article VIII, except to the extent the Indemnifying Party is actually prejudiced by such failure or delay.  The Indemnifying Party shall have the right to conduct and control the defense of any Third-Party Claim at its cost and expense through counsel reasonably acceptable to the Indemnified Party, such acceptance not to be unreasonably withheld, conditioned or delayed; provided that the Indemnified Party may retain separate co-counsel at its sole cost and expense (other than any fees and expenses of such separate counsel that are incurred prior to the date the Indemnifying Party agrees to assume control of the defense, which, provided that the Indemnified Party promptly notifies the Indemnifying Party of such Third-Party Claim, shall be borne by the Indemnifying Party) and participate in the defense of the Third-Party Claim.  Notwithstanding the foregoing, the Indemnifying Party shall not have the right to assume control of the defense of any Third-Party Claim and shall pay the reasonable fees and out-of-pocket  expenses of counsel for such Indemnified Parties with respect to such Third-Party Claim if:  (i) the Indemnifying Party does not assume the defense thereof promptly, but in any event, within thirty (30) days of receipt of the Indemnified Party’s notice;  (ii) the Third-Party Claim (A) seeks material non-monetary, equitable or injunctive relief, (B) alleges violations of criminal law, or (C) includes as the named parties in any such Third-Party Claim both an Indemnified Party and an Indemnifying Party, and either a defense is available to an Indemnified Party that is not available to an Indemnifying Party or applicable ethical guidelines provide that, in either case, it would be inappropriate to have the same counsel represent both parties, or (iii) the insurer under the R&W Policy assumes the defense of such claim pursuant to the R&W Policy.  If the Indemnifying Party has assumed such defense as provided in this Section ‎8.03‎(a), the Indemnifying Party will not be liable for any legal expenses subsequently incurred by any Indemnified Party in connection with the defense of such claim.  If the Indemnifying Party does not assume the defense of any Third-Party Claim in accordance with this Section ‎8.03‎(a), or is not entitled to do so, the Indemnified Party may continue to defend such claim and the Indemnifying Party may still participate in, but not control, the defense of such Third-Party Claim at the Indemnifying Party’s sole cost and expense.
(b)Settlement.  
(i) If the Indemnifying Party does not assume and conduct the defense of the Third-Party Claim in accordance with Section ‎8.03‎(a), or is not entitled to do so, the Indemnified Party shall not consent to the entry of any judgment or enter into any settlement with respect to the Third-Party Claim without the written consent of the Indemnifying Party (such consent not to be unreasonably withheld, conditioned or delayed).
(ii) If the Indemnifying Party assumes and conducts the defense of the Third-Party Claim in accordance with Section ‎8.03‎(a), the Indemnifying Party shall not, without the written consent of the Indemnified Party (such consent not to be 
30

unreasonably withheld, conditioned or delayed), consent to the entry of any judgment or enter into any settlement with respect to the Third-Party Claim that:  (A) involves any action by the Indemnified Party other than the payment of money (which, subject to Section ‎8.05, is paid in full by the Indemnifying Party), (B) provides for non-monetary equitable or injunctive relief affecting the Indemnified Party, or (C) does not grant an unconditional release of the Indemnified Party from all liability with respect to such Third-Party Claim.
(iii) In any Third-Party Claim, the party responsible for the defense of such claim shall, to the extent reasonably requested by the other party, keep such other party informed as to the status of such claim, including all settlement negotiations and offers.  The Indemnified Party shall make available to the Indemnifying Party and its representatives all books and records of the Indemnified Party relating to such Third-Party Claim and shall cooperate with the Indemnifying Party in the defense of the Third-Party Claim, including by making available personnel as witnesses in connection with any action.
8.04 Survival.  The representations and warranties in this Agreement and all covenants and other agreements in this Agreement shall survive the Closing and the consummation of the transactions contemplated by this Agreement in accordance with their terms; provided, however, that the representations and warranties set forth in this Agreement (other than the Seller Fundamental Reps and Purchaser Fundamental Reps) shall only continue in effect until the twelve (12) month anniversary of the Closing Date, at which time all representations and warranties (other than the Seller Fundamental Reps and Purchaser Fundamental Reps) shall expire.  The Seller Fundamental Reps and Purchaser Fundamental Reps shall survive until 60 (sixty) days after the applicable statute of limitations or, if a statute of limitations does not apply with respect to such representation and warranty, until the eight (8) year anniversary of the Closing Date.  Notwithstanding the foregoing, no representation, warranty, covenant or agreement shall expire to the extent the Indemnified Party has provided to the Indemnifying Party written notice of the Indemnified Party’s claim for indemnification prior to the expiration of the applicable survival period set forth above.
8.05 Limitations of Liability. 
(a)Notwithstanding any other provision in this ‎Article VIII (i)  Purchaser shall be entitled to indemnification pursuant to Section ‎8.01(a)(i) only if and to the extent that the aggregate of the Indemnifiable Amounts under Section ‎8.01(a)(i) exceed $200,000 (such amount, the “Threshold Amount”); except that the foregoing Threshold Amount shall not apply to any misrepresentation, breach or inaccuracy under the Seller Fundamental Reps or in cases of actual and intentional fraud made with respect to this Agreement (other than any claim for equitable fraud, promissory fraud, unfair dealings fraud or any torts based on negligence or recklessness); (ii) Purchaser shall be entitled to be indemnified under Section ‎8.01(a)(i) for the Indemnifiable Amounts exceeding the Threshold Amount (or all Indemnifiable Amounts if the Threshold Amount is not applicable); and (iii) the total aggregate liability of Seller under Section ‎8.01(a)(i) shall not exceed $200,000 (the “Cap”), provided, however that the Cap shall not apply to claims for indemnification under Section ‎8.01(a)(i) for: (x) actual and intentional fraud 
31

made with respect to this Agreement (other than any claim for equitable fraud, promissory fraud, unfair dealings fraud or any torts based on negligence or recklessness), or (y) breaches of the Seller Fundamental Reps; provided, further, that Seller’s indemnification obligation for claims arising under Section ‎8.01(a)(i) for breaches of the Seller Fundamental Reps shall be limited to the Base Consideration. 
(b)Notwithstanding any other provision in this ‎Article VIII (i)  the Seller Indemnified Parties shall be entitled to indemnification pursuant to Section ‎8.02(a)(i) only if and to the extent that the aggregate of the Indemnifiable Amounts under Section ‎8.02(a)(i) exceed the Threshold Amount; except that the Threshold Amount shall not apply to any misrepresentation, breach or inaccuracy under the Purchaser Fundamental Reps or in cases of actual and intentional fraud made with respect to this Agreement (other than any claim for equitable fraud, promissory fraud, unfair dealings fraud or any torts based on negligence or recklessness); (ii) the Seller Indemnified Parties shall be entitled to be indemnified under Section ‎8.02(a)(i) for the Indemnifiable Amounts exceeding the Threshold Amount (or all Indemnifiable Amounts if the Threshold Amount is not applicable); and (iii) the total aggregate liability of Purchaser under Section ‎8.02(a)(i) shall not exceed $2,000,000, provided, however that such limit shall not apply to claims for indemnification under Section 8.02(a)(i) for: (x) actual and intentional fraud made with respect to this Agreement (other than any claim for equitable fraud, promissory fraud, unfair dealings fraud or any torts based on negligence or recklessness), or (y) breaches of the Purchaser Fundamental Reps; provided, further that claims to the extent arising under Section 8.02(a)(i) for breaches of the Purchaser Fundamental Reps shall be limited to the Base Consideration.
(c)Notwithstanding the foregoing, the Indemnifiable Amounts shall be net of (i) the amount of any insurance proceeds actually recovered  pursuant to the R&W Policy by the Indemnified Party (off-set by any increase in premium resulting therefrom), and (ii) any indemnity or contribution amounts actually recovered by such Indemnified Party for the applicable matter hereunder as follows: the Purchaser Indemnified Party shall use commercially reasonable efforts to seek recovery under the R&W Policy to the extent such  Indemnifiable Amounts is actually covered and collectible under the R&W Policy. In the event that recovery is made under the R&W Policy by any Purchaser Indemnified Party with respect to any Indemnifiable Amount for which any such Person has been indemnified hereunder, then a refund equal to the aggregate amount of the recovery shall be promptly delivered by Purchaser to Seller.
(d)Each Indemnifiable Party shall take commercially reasonable efforts to mitigate Indemnifiable Amounts for which indemnification may be claimed by it under this Agreement upon and after becoming aware of any event that could reasonably be expected to give rise to any such Indemnifiable Amounts.
(e)Any Indemnifiable Amounts for which any Purchaser Indemnified Party is entitled to indemnification under Section ‎8.01 shall be determined without duplication of recovery by reason of the state of facts giving rise to such Indemnifiable Amounts 
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constituting a breach of more than one representation, warranty, or covenant, or Excluded Liability.
(f)Any Indemnifiable Amounts payable under this Article VIII shall be paid by wire transfer to an account designated in writing by the applicable Indemnified Party.
(g)Notwithstanding any other provision in this Article VIII, no Indemnified Party shall make any claim for indemnification under this Agreement in respect of any matter to the extent the Liabilities arising therefrom have been satisfied as part of the dispute mechanisms described in Article III.
8.06 Purchaser Right to Set-Off.  Purchaser shall have the right, but not the obligation, to set off any Indemnifiable Amounts against other amounts owed to Seller pursuant to this Agreement.
8.07 Exclusive Remedy.  From and after the Closing Date, the indemnification rights set forth in this Article VIII shall be the sole and exclusive right and remedy of the Indemnified Parties for Indemnifiable Amounts, or other damages or amounts which otherwise might be due under the indemnification provisions contained in, and for any breach of any provision contained in, this Agreement, or otherwise under or in connection with this Agreement and the transactions contemplated hereby (including with respect to any and all claims in any way relating hereto or arising out of or in connection herein); provided that the foregoing shall not limit (i) any rights of Purchaser or Seller to assert claims for actual and intentional fraud made with respect to this Agreement (other than any claim for equitable fraud, promissory fraud, unfair dealings fraud or any torts based on negligence or recklessness) against the Party alleged to have acted fraudulently (but not against any other Person); (ii) the Purchaser Indemnified Parties’ rights under the R&W Policy; (iii) any claims relating to any of the Ancillary Agreements or the Confidentiality Agreement; or (iv) the amounts payable under ‎Article III.
8.08 Tax Treatment. Any payments made to any party pursuant to this ‎Article VIII shall constitute an adjustment of the purchase price for Tax purposes and shall be treated as such by Purchaser and Seller on their Tax Returns to the extent permitted by law.
8.09 Materiality Qualifiers. All materiality qualifications contained in the representations and warranties of the Parties set forth in this Agreement (however they may be phrased and including the term “Material Adverse Effect”) shall be ignored and not taken into account for purposes of this Article VIII for purposes of determining whether a breach of, or inaccuracy in, such representation and warranty has occurred and if such breach or inaccuracy has occurred, all such materiality qualifications shall be ignored and not given any effect for purposes of determining the Indemnifiable Amounts arising out of or relating to such breach of, or inaccuracy in, such representation and warranty for purposes of this Article VIII; provided, however, in each event, that the Indemnifiable Amounts pursuant to a breach of the Seller Fundamental Reps shall not include any individual item where the losses relating thereto are less than fifty thousand US dollars ($50,000).

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Article IX.
[RESERVED]
                     
Article X.
ADDITIONAL COVENANTS   
                  
10.01 Provision Respecting Legal Representation.  
(a)The Seller hereby informs the Purchaser that the Seller and its Subsidiaries have retained Goodwin to act as its counsel in connection with the transactions contemplated hereby and that Goodwin has not acted as counsel for any other party hereto in connection with the transactions contemplated hereby and that the Seller has the status of a client of Goodwin for conflict of interest or any other purposes as a result thereof. 
(b)The Purchaser and the Seller hereby agree that, in the event that a dispute arises under this Agreement after the Closing between the Purchaser and/or its Subsidiaries on the one hand, and the Seller or its Affiliates, on the other hand, (an “Agreement Dispute”) Goodwin may represent the Seller and/or such Affiliates in any Agreement Dispute even though the interests of the Seller and/or such Affiliates may be directly adverse to the Purchaser or its Subsidiaries, and even though Goodwin may have represented the Purchaser or its Subsidiaries in a matter substantially related to such Agreement Dispute, or may be handling other matters for the Purchaser or any of its Subsidiaries.  
(c)The Purchaser further agrees that, in any Agreement Dispute, that all communications in any form or format whatsoever between or among any of Goodwin and/or Seller or its Affiliates, or any of their respective managers, directors, officers employees or other representatives that relate in any way to the negotiation, documentation and consummation of the transactions contemplated by this Agreement or any dispute arising under this Agreement (collectively, the “Deal Communications”), shall be deemed to be retained and owned collectively by the Seller and its Affiliates, shall be controlled by the Seller on behalf of the Seller and its Affiliates and shall not pass to or be claimed by the Purchaser or any of its Affiliates.  All Deal Communications that are attorney–client privileged (the “Privileged Communications”) shall remain privileged after the Closing and the expectation of client confidence related thereto belongs solely to the Seller, shall be controlled by the Seller and, except as expressly provided in Section ‎10.01(d), shall not pass to or be claimed by the Purchaser or any of its Subsidiaries. 
(d)The Purchaser and the Seller hereby agree that the protections afforded to the Seller in Section ‎10.01(c) shall not be considered, and is not, a waiver by the Purchaser or its Subsidiaries of any attorney-client privilege that they may have over the Privileged Communications as against any Third Party other than the Seller and its Affiliates (an “Unaffiliated Party”).  In the event of a dispute between the Purchaser and/
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or its Subsidiaries, on the one hand, and an Unaffiliated Party, on the other hand (an “Unaffiliated Party Suit”), the Purchaser and its Subsidiaries may assert the attorney-client privilege to prevent the disclosure of any Privileged Communications to such Unaffiliated Party.  Notwithstanding anything to the contrary set forth in this Agreement, in the event that any of the Purchaser or its Subsidiaries is required or requested by governmental order, other order or request of a tribunal of competent jurisdiction, or by request or order of any Governmental Entity, to produce, or otherwise to access or obtain a copy of, all or a portion of a Privileged Communication, the Purchaser shall be entitled to so produce, access or obtain such Privileged Communication, provided that, as soon as reasonably practicable following such a request or order, the Purchaser shall notify the Seller in writing so that the Seller can seek such remedy as may be available to the Seller to prevent the production or disclosure of, or access to, any of such Privileged Communications or maintain the confidentiality of any of such Privileged Communications.  Where the Seller seeks such a remedy regarding such Privileged Communications in an Unaffiliated Party Suit, the Purchaser agrees to reasonably assist the Seller in seeking such remedy.
(e)The Purchaser agrees that, in any Agreement Dispute, it will not, and that it will cause its Subsidiaries to not, (i) seek to obtain such Privileged Communications, whether by seeking a waiver of the attorney-client privilege or through other means, or (ii) use or rely on any of the Privileged Communications.  The Privileged Communications may be used by the Seller and/or any of its Closing Affiliates in connection with any Agreement Dispute.
10.02 Tax Matters.
(a)Cooperation on Tax Matters.  The Purchaser and the Seller shall cooperate, as and to the extent reasonably requested by the other party, in connection with the preparation and filing of Tax Returns (including the Tax Allocation) pursuant to this Agreement and any action, suit, demand or other proceeding with respect to Taxes relating to the transaction pursuant to this Agreement.  
(b)Tax Contests.
(i)  After the Closing, the Purchaser shall, and shall cause its Subsidiaries to, promptly notify the Seller in writing upon receipt of any written notice, or becoming aware, of any audit, examination, or proceeding with respect to Taxes that are Excluded Liabilities (a “Tax Claim”).
(ii) Seller shall have the right, directly or through its designated representatives, to control the defense of any Tax Claim, including the settlement thereof; provided that Seller may not settle a Tax Claim that would reasonably be expected to have an adverse effect on Purchaser without Purchaser’s prior written consent (such consent not to be unreasonably withheld, conditioned or delayed).

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Article XI.
DEFINITIONS
                          
11.01 Definitions.  For purposes hereof, the following terms when used herein shall have the respective meanings set forth below:
“Affiliate” of any particular Person means any other Person directly or indirectly controlling, controlled by or under common control with, such particular Person, at any time during the period for which the determination of affiliation is being made.  For purposes of this definition, “control” of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person whether through the ownership of voting securities, contract or otherwise, and, in any event, and without limitation of the previous sentence, any Person owning more than fifty percent (50%) or more of the voting securities of another Person shall be deemed to control that Person.
“Ancillary Agreements” means the Transition Services Agreement, the Transitional Trademark License Agreement, and each certificate or other document to be delivered by a party hereto at the Closing. 
“Assumed Liabilities” means the Liabilities identified on Schedule ‎1.03; provided that Assumed Liabilities shall not include any Liabilities arising after the Closing Date as a result of or based upon the satisfaction and discharge, or failure thereof, of liabilities and obligations of the Seller and its Affiliates due prior to the Closing Date, and all such Liabilities shall constitute Excluded Liabilities hereunder (for the avoidance of doubt, excluding any Taxes imposed on the Business, Transferred Assets or Assumed Liabilities arising in a taxable period (or portion thereof) beginning after the Closing Date).
“Base Consideration” means Twenty Million United States Dollars ($20,000,000).
“Books and Records” mean copies of any books and records relating exclusively to the Products in the Territory.  For the avoidance of doubt, Books and Records do not include the Regulatory Files or Regulatory Applications.
“Business” means the business of manufacturing, packaging, promoting, marketing, selling, distributing and/or otherwise commercializing the Product in the Territory by Seller or its Affiliates.
“Business Day” means any day other than a Saturday, a Sunday or other day on which banks are required or authorized by Law to be closed in, Boston, Massachusetts.
“Calendar Quarter” means each three (3) month period beginning on the first day of January, April, July and October.
“cGMP” means the applicable regulatory requirements for the then-current good manufacturing practices as are required by the Governmental Entities in the Territory.
“Chargebacks” has the meaning set forth in the Transition Services Agreement.
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“Closing Cash Consideration” means (a) the Base Consideration, plus (b) the Estimated Purchase Price Adjustment Amount.
“Commercially Reasonable Efforts” means, with respect to a Party’s obligations under this Agreement with respect to the Product, those efforts and resources that are consistent with the exercise of customary scientific and business practices as applied to similarly situated companies in the pharmaceutical industry for development, regulatory and commercialization activities conducted with respect to products at a similar stage of development or commercialization and having similar commercial potential, taking into account all relevant factors, including relative safety and efficacy, product profile, the proprietary position, the competitiveness of the marketplace and the market potential of such products, the nature and extent of market exclusivity, including patent coverage and regulatory data protection, price and reimbursement status and other relevant scientific, technical and commercial factors.  Commercially Reasonable Efforts require that a Party:  (a) promptly assigns responsibility for each such obligations to specific employees or consultants who are held accountable for progress and monitor such progress on an ongoing basis, and (b) makes and implements decisions and allocates resources designed to advance progress with respect to such objectives. 
“Co-Pay Contracts” means (a) that certain Master Services Agreement by and between Seller and PSKW, LLC d/b/a ConnectiveRx, dated as of July 1, 2017, as amended by that certain Amendment No. 1, dated as of January 16, 2020, , and (b) that certain Services Agreement by and between Seller and NDCHealth Corporation d/b/a Relay Health, dated as of November 15, 2018,.  For the avoidance of doubt, the Co-Pay Contracts do not include related Statements of Work.  
“Data Room” means the electronic data room containing documents and materials relating to the Product, the Transferred Assets and Licensed IP hosted by Datasite, access of which has been made available to the Purchaser prior to the Closing Date.
“Domain Names” means any domain name registered with an internet domain name registrar and the uniform resource locators associated therewith. 
“Endoceutics Amendment” means an amendment to the Manufacturing and Supply Agreement by and between Seller and Endoceutics, Inc., dated as of April 5, 2017, reasonably acceptable to Purchaser that permits Purchaser to purchase Product directly from Fareva SA in the event Endoceutics Inc. is unable, for any reason, to timely supply Product that conforms to the requirements of such Manufacturing and Supply Agreement.
“Excluded Assets” means any assets, properties and rights of the Seller or any of its Affiliates other than the Transferred Assets, including, without limitation, the assets, rights and interests of Seller and its Affiliates set forth or described on Schedule ‎1.02, which assets, rights and interests are not to be transferred to the Purchaser hereunder.
“Excluded Liabilities” means all Liabilities relating to the Products and the Transferred Assets other than the Assumed Liabilities or as provided in any of the Ancillary Agreements, including, without limitation and solely for illustrative purposes, the Liabilities set forth or described on Schedule ‎1.04.
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“Final Cash Consideration” means (a) the Base Consideration, plus (b) the Final Purchase Price Adjustment Amount as finally determined pursuant to Section ‎3.04.
“Final Purchase Price Adjustment Amount” means the amount of the Purchase Price Adjustment Amount as finally determined pursuant to Section ‎3.04.
“GAAP” means United States generally accepted accounting principles, consistently applied by the Seller, in effect at the date of the financial statement to which it refers.
“Governmental Entity” means any (a) supranational, national, regional, state, county, city, town, village, district or other jurisdiction; (b) federal, state, local, municipal, foreign or other government; (c) governmental or quasi-governmental authority of any nature (including any agency, branch, department or instrumentality thereof, including any business, company, enterprise or other entity owned or controlled, in whole or in part, by any government and any court or other tribunal); (d) multinational organization; (e) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature; or (f) any arbitral authority; provided that any Governmental Entity acting in its capacity as a contract counterparty shall not be a Governmental Entity for the purposes of this Agreement.
 “Healthcare Regulatory Laws” means Laws relating to healthcare regulatory matters, including, but not limited to: (a) 42 U.S.C. §§ 1320a-7, 7a, and 7b, which are commonly referred to as the “Federal Fraud Statutes;” (b) Title XVIII of the Social Security Act (42 U.S.C. § 1395 et seq.), the “Medicare Laws;” (c) 42 U.S.C. § 263a, which is commonly referred to as the “Clinical Laboratory Improvement Amendments of 1988” or “CLIA;” (d) 42 U.S.C. § 1395nn, which is commonly referred to as the “Stark Statute;” (e) 31 U.S.C. §§ 3729-3733, which is commonly referred to as the “Federal False Claims Act;” (f) 42 U.S.C. §§ 1320d through 1320d-8 and 42 C.F.R. §§ 160, 162 and 164, which are commonly referred to as the “Health Insurance Portability and Accountability Act of 1996” or “HIPAA;” (g) any federal, state or local applicable Law that regulates either the approval, clinical development, manufacturing, promotion or distribution of products; (h) any state law regulating the interactions with health care professionals and reporting thereof; or (i) any federal, state or local statute or regulation relevant to false statements or claims including knowingly and willfully making or causing to be made any false statement or representation of a material fact for use in determining rights to any benefit, payment or registration.
“Indemnifiable Amounts” means, in respect of any obligation of any Party to indemnify any Person pursuant to the terms of this Agreement, any and all actual monetary losses, damages, awards, judgments, settlement payments to the extent incurred in accordance with ‎Article VIII, fines and other reasonable and documented out-of-pocket costs, expenses and charges, including reasonable attorneys’ fees.
“Intellectual Property” means any or all of the following in any jurisdiction in the world: (a) copyrights, copyrightable works, and registrations and applications for registration thereof; (b) trade names, trademarks, service marks, and trade dress, and registrations and applications for registration thereof, and all goodwill associated therewith; (c) patents and applications therefor and all reissues, divisions, renewals, extensions, provisionals, continuations and continuations-
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in-part thereof; (d) internet uniform resource locators and Domain Names; (e) rights in software, data, and databases; and (f) trade secrets, know-how, and other confidential information.
“Inventory” means all inventory owned by the Seller and used exclusively in the Business or held for sale exclusively to customers of the Business, including the Products and active pharmaceutical ingredients, spare parts, raw materials, containers, packaging and packaging supplies and work-in-process.
“Knowledge” means the actual knowledge of Kyle Haraldsen, Joseph Vittiglio, Helen Milton and Anthony Casciano.
“Law” means any law, rule, regulations, judgment, injunction, order, ordinance, statute, or decree issued, promulgated or enforced by any Governmental Entity.
“Licensed IP” means all Intellectual Property relating exclusively to the Product that has been licensed in by Seller or its Affiliates from a Third Party, including the Intellectual Property licensed to Seller pursuant to the License Agreement by and between Seller and Endoceutics, Inc. dated as of February 13, 2017 (the “License Agreement”), including the Intellectual Property set forth on Annex F.
“Liens” means any encumbrance, hypothecation, infringement, lien, deed of trust, mortgage, easement, encroachment, pledge, restriction, security interest, option, title retention or other security arrangement, or any other adverse right or interest, charge or claim of a similar nature in or on any asset, property or property interest.
“Liabilities” means any and all debts, liabilities, assessments, expenses, deficiencies, judgments, losses, damages, fines, penalties and obligations of any nature, whether accrued or unaccrued, known or unknown, express or implied, primary or secondary, direct or indirect, liquidated, disputed or undisputed, absolute or contingent, matured or un-matured or determined or determinable and whether due or to become due. 
“Marketing Authorization” means the registrations, approvals, licenses, Investigational New Drug Applications, New Drug Applications (pursuant to Section 505 of the Act (21 U.S.C. Section 355) (or ANDA), Regulatory Applications, including any supplements, amendments or modifications submitted to or required by any Governmental Entity or any successor application or procedure) or other Permits granted by a Governmental Entity, in each case, and identified on Schedule ‎7.03 attached hereto.
“Material Adverse Effect” means any change, effect, event or condition that, individually or in the aggregate, is, or would reasonably be expected to have or result in a material adverse change in, or effect on, the assets, properties, liabilities, financial condition or results of operations of the Business, taken as a whole; provided, however, that none of the following shall be deemed in and of itself, either alone or in combination, to constitute, and none of the following shall be taken into account in determining whether there has been or will be, a Material Adverse Effect:  (a) any change in economic conditions generally or capital and financial markets generally, including changes in interest or exchange rates or market volatility, (b) any change in the industry in which the Business operates or in which the Products are used or 
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distributed, including changes that directly or indirectly result in increased operating costs or decrease in sales, (c) any change or proposed change in Laws or GAAP, or the enforcement or interpretation thereof, after the date of this Agreement, (d) any actions taken in order to comply with applicable Law, contracts or agreements, (e) any failure by the Business to achieve any internal or external earnings or other financial projections or forecasts (provided, that this clause (e) shall not prevent a determination that any change or effect underlying such failure to meet projections or forecasts has resulted in a Material Adverse Effect (to the extent such change or effect is not otherwise excluded from this definition of Material Adverse Effect)), (f) geographic and political conditions in or affecting jurisdictions in which the Business operates or the Products are sold, including hostilities, acts of war, sabotage, terrorism, military actions or other material international or national calamity or strife, or any escalation or worsening of any of the foregoing, (g) any change resulting from the negotiation, execution, announcement or consummation of the transactions contemplated by, or the performance of obligations under, this Agreement or the Ancillary Agreements, including any such change relating to the identity of, or facts and circumstances relating to, the Purchaser or any actions or threats by employees, customers, suppliers, licensors, distribution partners or other business partners, including those related to the Business or the Product, (h) changes resulting directly or indirectly from any action taken by the Purchaser or any of its Affiliates, financing sources, agents or other representatives, (i) any change resulting directly or indirectly from any earthquake, hurricane, tsunami, tornado, flood, mudslide, wild fire, epidemic, pandemic, health or healthcare crisis or other similar disasters, acts of God, weather conditions or other force majeure events in the U.S. or any other country or region in the world, including the impacts of such events, including on infrastructure, employees, travel, the markets and business generally, (j) changes resulting directly or indirectly from any actions required to be taken or omitted pursuant to this Agreement or the Ancillary Agreements or taken with the Purchaser’s consent or waiver, or not taken because the Purchaser withheld, delayed or conditioned its consent or waiver, (k) any matter set forth in the Disclosure Schedules, (l) any labor strikes, reductions in force, labor stoppages or loss of employees, (m) matters related to any Excluded Asset or Excluded Liability or (n) any effect that is cured by Seller prior to the termination of this Agreement or the consummation of the transactions contemplated hereby; provided that, in the case of clauses (a), (b) and (c) above, if such change, effect, event or condition disproportionately affects the Business as compared to other businesses that operate in the industry and geographies in which the Seller and the Business operate, then the disproportionate aspect of such change, effect, event, occurrence, state of facts or development may be taken into account in determining whether a Material Adverse Effect has or will occur.
“MOU Product” means Product purchased by Seller pursuant to that certain Memorandum of Understanding by and between Seller and Endoceutics, Inc., dated as of December 16, 2019.
“Net Sales” means with respect to the Product, the gross amounts invoiced for sales or other dispositions of the Product by or on behalf of Purchaser and its Affiliates and sublicensees to Third Parties (other than sublicensees), less the following deductions to the extent included in the gross invoiced sales price for the Product or otherwise directly paid or incurred by Purchaser or its Affiliates or sublicensees, as applicable, with respect to the sale or other disposition of the Product:
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(a) normal and customary trade and quantity discounts actually allowed and properly taken directly with respect to sales of the Product (provided that such discounts are not applied disproportionately to the Product when compared to the other products of Purchaser or its Affiliates or sublicensees, as applicable);
(b) credits or allowances given or made for rejection or return of previously sold Product or for retroactive price reductions and billing errors;
(c) rebates and chargeback payments granted to managed health care organizations, pharmacy benefit managers (or equivalents thereof), national, state/provincial, local, and other governments, their agencies and purchasers and reimbursers, or to trade customers;
(d) costs of freight, insurance, and other transportation charges directly related to the distribution of the Product; and
(e) taxes, duties or other governmental charges (including any tax such as a value added or similar tax, other than any taxes based on income) levied on or measured by the billing amount for the Product, as adjusted for rebates and refunds.
Such amounts shall be determined in accordance with GAAP, consistently applied.
In no event will any particular amount identified above be deducted more than once in calculating Net Sales. Sales of the Product between any of Purchaser or its Affiliates or sublicensees for resale shall be excluded from the computation of Net Sales, but the subsequent resale of the Product to a Third Party shall be included within the computation of Net Sales. Any free of charge disposal or use of a Product for regulatory or marketing purposes, including sales for clinical studies purposes or compassionate, named patient, charitable, humanitarian program or similar use, will not be deemed a sale or disposition for calculating Net Sales.
The Purchaser and its Affiliates and sublicensees shall not sell the Product in combination with or as part of a bundle with other products, or offer packaged arrangements to customers that include the Product, in such a manner as to disproportionately discount the selling price of the Product as compared with the weighted-average discount applied to the other products, as a percent of the respective list prices (or if not available, a good faith estimate thereof) of such products and the Product prior to applying the discount.  All sales must be for cash payment with no sales for other consideration than cash. “Patents” means patents (as well as the relevant complementary protection certificates where applicable) and patent applications (including any divisions, continuations, continuations-in-part, provisional applications, reexamined versions or reissues thereof) whether or not patents are issued on any such applications.
“PDUFA Fees” means all user fees and other prescription drug program fees payable to the FDA for the fiscal year ended September 30, 2020 that relate exclusively to the Products (and not to any of Seller’s other products) under the FDCA, as amended by the Prescription Drug User Fee Amendments of 2019, in each case to the extent transferrable to a purchaser of the Products.
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“Permitted Liens” means (a) statutory Liens for current Taxes or other governmental charges not yet due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings by the Seller and/or its Subsidiaries; (b) mechanics’, carriers’, workers’, repairers’ and similar statutory Liens arising or incurred in the ordinary course of business for amounts which are not delinquent; (c) Liens arising under worker’s compensation, unemployment insurance, social security, retirement and similar legislation; (d) Liens on goods in transit incurred pursuant to documentary letters of credit; (e) purchase money Liens and Liens securing rental payments under capital lease arrangements; (f) other Liens arising in the ordinary course of business and not incurred in connection with the borrowing of money; (g) non-exclusive licenses of Intellectual Property; and (h) Liens that, individually or in the aggregate, do not, and would not reasonably be expected to, materially detract from the value of any of the Transferred Assets, properties, rights or assets of the Business.
“Person” means a natural person, a partnership, a limited partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, any other entity or organization, or a Governmental Entity or any department, agency or political subdivision thereof.
“Pre-Closing Accounts Payable” means accrued receipts and accounts payable arising out of or relating to the operation or conduct of the Business prior to the Closing Date.  
“Pre-Closing Accounts Receivable” means all accounts receivable, notes receivable and similar rights to receive payments of Seller or any of its Affiliates existing on the Closing Date and arising out of the operation or conduct of the Business prior to the Closing Date.
“Pre-Closing Tax Period”  means any Tax period or portion thereof that is not a Post-Closing Period.
“Post-Closing Tax Period” means any Tax period beginning on or after the Closing Date. If a Tax period begins before the Closing Date and ends on or after the Closing Date, then the portion of the taxable period that begins on the Closing Date shall constitute a Post-Closing Period.
“Proceeding” means any action, arbitration, audit, examination, investigation, hearing, litigation or suit (whether civil, criminal, administrative, judicial or investigative, whether formal or informal, and whether public or private) commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental Entity, excluding, in each case, routine administrative activities with respect to obtaining, maintaining and renewing Marketing Authorizations and licenses and permits required for manufacturing, storage and distribution of Products, and prosecution, renewals and similar activities pertaining to Intellectual Property before the United States Patent and Trademark Office, the United States Copyright Office or any foreign counterpart of either of them.
“Product” means the pharmaceutical product identified on Annex A.
“Product Copyrights” mean all copyrights owned or controlled by Seller or its Affiliates that are or have been used exclusively in the commercialization of the Product, including (i) the 
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Product Labels and Inserts, (ii) all copyrights, copyright registrations and applications therefor and copyrightable works, (iii) all rights of authorship, use, publication, reproduction, display, distribution, performance, preparation of derivative works and transformation of such copyrightable works; (iv) all copies, compilations and derivative works of such copyrightable works; (v) all rights of ownership of copyrightable works; and (vi) all rights to register and obtain renewals and extensions of copyright registrations, but excluding, in each case of the foregoing clauses (i) through (vi), the portions thereof that are labeled or branded with the Seller’s marks.
“Product Labels and Inserts” has the meaning set forth in the Transition Services Agreement.
“Promotional Materials” means all advertising, marketing, sales, and promotional materials used exclusively at any time by Seller, its Affiliates and their respective licensees and distributors to commercialize the Product, including in-design and editable files including all supporting fonts, artwork, and layered files, artwork usage rights, and references for promotional claims, and digital asset program files, but excluding, in each case, the portions thereof that are labeled or branded with the Seller’s marks.
“Purchaser Fundamental Reps” means those representations and warranties contained in the first sentence of Section ‎6.01 (Organization and Organizational Power), Section ‎6.02 (Authorization), Section ‎6.04 (Brokerage) and Section ‎6.05 (Solvency).
 “Purchaser Portion of PDUFA Fees” means the dollar amount represented by the following formula:  the PDUFA Fees multiplied by a fraction, the numerator of which is the number of days from the Closing Date through September 30, 2020 and the denominator of which is 366.
“Purchase Price Adjustment Amount” means  Saleable Inventory (as of 11:59 P.M., local time, on the day immediately prior to the Closing Date),  calculated in a manner and on a basis consistent with the procedures and principles set forth on Exhibit A attached hereto.  
 “Rebates” has the meaning set forth in the Transition Services Agreement.
“Regulatory Applications” means copies of any and all applications (including pending INDs and NDAs) filed with any Governmental Entity by or on behalf of Seller or its Affiliates with respect to any of the Products for approval to develop, test, manufacture, process, distribute, import, market, store, label, package, promote, sell, or offer to sell the Products, and all supplements, amendments and revisions thereto, whether approved or pending.
“Regulatory Files” means copies of all U.S. regulatory files with respect to (a) Marketing Authorizations for the Products, (b) all adverse event reports and other data, information and materials relating to adverse experiences and other safety issues submitted to any Governmental Entity with respect to any of the Products, (c) clinical information related to investigational studies and sponsored studies within the Seller’s possession and control, and (d) all material correspondence with any Governmental Entity relating to any of the Products, including any safety reports or updates, complaint files and product quality reviews. 
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“RWI Payment” means One Hundred Twenty Six Thousand Two Hundred United States Dollars ($126,200).  
“Saleable Inventory” means Inventory identified in Annex H that (a) is in the physical condition to be sold to customers in accordance with applicable Laws and Seller’s internal inventory policies as of the date of this Agreement, (b) has not been damaged, recalled and/or does not have a materially defective or damaged label, package or case, and (c) has no less than twelve (12) months shelf life remaining as of the Closing. “Saleable Inventory” excludes MOU Product.
“Seller Fundamental Reps” means those representations and warranties contained in the first sentence of Section ‎5.01 (Organization and Organizational Power), Section ‎5.02 (Authorization), Section ‎5.06 (Title to Transferred Assets), Section ‎5.07 (Tax Matters), and Section ‎5.13 (Brokerage). 
“Shared Contract” means each agreement, contract, arrangement, commitment, purchase order and other contract that relates to both (a) the Business or any Transferred Assets and (b) one or more other businesses or products of Seller or any of its Affiliates.
“Subsidiary” means, with respect to any Person, any corporation of which a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination thereof, or any partnership, association or other business entity of which a majority of the partnership or other similar ownership interest is at the time owned or controlled, directly or indirectly, by such Person or one or more Subsidiaries of such Person or a combination thereof.  For purposes of this definition, a Person is deemed to have a majority ownership interest in a partnership, association or other business entity if such Person is allocated a majority of the gains or losses of such partnership, association or other business entity or is or controls the managing director or general partner of such partnership, association or other business entity.
“Tax” (including with correlative meaning the terms “Taxes” and “Taxable”) means U.S. federal, state, local or non-U.S. taxes (including interest, penalties or additions associated therewith), including income, alternative, minimum, franchise, capital stock, profits, real property, personal property, tangible, withholding, employment, payroll, social security, social contribution, unemployment compensation, severances, disability, stamp, transfer, registration, sales, use, excise, premium, ad valorem, gross receipts and value-added taxes.
“Tax Returns” means any return, report, declaration, statement, information return or other document (including schedules, attachments or any related or supporting information and any amended returns) filed or required to be filed with any Governmental Entity charged with the determination, assessment or collection of any Tax or the administration of any Laws relating to any Tax.
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“Territory” means fifty (50) states of the United States of America and its territories, commonwealths, possessions and associated states, including the District of Columbia and the Commonwealth of Puerto Rico.
“Third Party” means any Person other than the Seller, the Purchaser or one of their respective Affiliates. 
“Trademarks” means, collectively, trademarks, service marks, trade names, slogans, logos, trade dress or other similar source or origin identifiers (whether statutory or common law, whether registered or unregistered), together with all (a) registrations and applications for any of the foregoing, (b) extensions or renewals thereof, (c) goodwill (if any) connected with use thereof or symbolized thereby, (d) rights and privileges arising under applicable Law with respect to any of the foregoing and (e) all rights corresponding thereto.
 “Transfer Letters” means the letters to be filed with the FDA, substantially in the form attached to this Agreement as Exhibit C-1 and Exhibit C-2, respectively, to transfer the Marketing Authorizations for the Products from Seller or its Affiliates to Purchaser in accordance with 21 C.F.R. § 314.72.
“Transfer Taxes” means any U.S., state, county, local, non-U.S. and other sales, use, transfer, goods and services, value added, conveyance, documentary transfer, stamp duty, recording or other similar Tax, fee or charge imposed on or in connection with the transactions contemplated by or the instruments executed under or in connection with this Agreement or the recording of any sale, transfer, or assignment or property (or any interest therein) effected pursuant to this Agreement. 
“Transferred Assets” means the assets, rights and interests of Seller and its Affiliates set forth or described on Schedule ‎1.01, which expressly exclude the Excluded Assets.  
“Transferred Contracts” means the agreements, contracts, licenses and purchase orders identified on Annex B.  
“Transferred Equipment” means the equipment identified on Annex G.
“Transferred IP” means (a) the Domain Names identified on Annex C, (b) the Patents identified on Annex D, (c) the Trademarks identified on Annex E, and (d) the Product Copyrights.
 “Transition Services Agreement” means that certain Transition Services Agreement, dated as of the date hereof, by and between Seller and Purchaser. 
“Transitional Trademark License Agreement” means that certain Transitional Trademark License Agreement, dated as of the date hereof, by and between Seller and Purchaser.
“Website IP” means copies of the software and hardware specifications, to the extent owned or controlled by the Seller, with respect to the Domain Names and the content hosted thereon, including but not limited to, html code, css code, javascript code and any other supporting code, sufficient to allow Purchaser re-create and modify the Domain Names and the 
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content hosted thereon, but excluding, in each case, the portions thereof that are labeled or branded with the Seller’s marks and/or with respect to Excluded Assets.
11.02 Rules of Construction and Other Definitional Provisions.  For purposes of this Agreement, unless the express context otherwise requires:
(a) the words “include,” “includes” and “including” will be deemed to be followed by the words “without limitation”;
(b) the words “herein,” “hereof”, “hereby”, “hereto,” “hereunder,” and words of similar import, will be construed to refer to this Agreement as a whole, as the context requires, and not to any particular provision hereof; 
(c) the phrase “ordinary course of business” means “ordinary course of business consistent with past practice;”  
(d) whenever this Agreement refers to a number of days or months without using a term otherwise defined herein, such number refers to calendar days or months, respectively;
(e) all references to “$” shall be deemed references to United States dollars;
(f) the word “shall” will be construed to have the same meaning and effect as the word “will;” 
(g) references herein to Articles, Sections, clauses, Exhibits and Schedules refer, respectively, to the Articles, Sections and clauses of, and the Exhibits and Schedules attached to, this Agreement;
(h) each reference to an agreement, instrument, plan or other document means such agreement, instrument, plan or other document as amended, supplemented or otherwise modified from time to time to the extent permitted by the provisions thereof and by this Agreement;
(i) each reference to a law, rule or regulation, or article, section or other division thereof, will be deemed to include the thencurrent amendments thereto or any replacement or successor law, rule or regulation thereof;
(j) accounting terms which are not otherwise defined in this Agreement have the meanings given to them under GAAP, and, to the extent that the definition of an accounting term defined in this Agreement is inconsistent with the meaning of such term under GAAP, the definition set forth in this Agreement will control;
(k) the definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term; and
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(l) this Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. 
11.03 References.  The table of contents and the section and other headings and subheadings contained in this Agreement and the Exhibits hereto are solely for the purpose of reference, are not part of the agreement of the Parties, and shall not in any way affect the meaning or interpretation of this Agreement or any Exhibit hereto.  Capitalized terms used in the Disclosure Schedules and not otherwise defined therein have the meanings given to them in this Agreement.  
11.04 Index of Defined Terms.  
												
		Page		Page
	Affiliate	36	Healthcare Regulatory Laws	38
	Agreement	4	Indemnifiable Amounts	38
	Agreement Dispute	34	Indemnified Party	29
	Ancillary Agreements	36	Indemnifying Party	29
	Assumed Liabilities	36	Intellectual Property	38
	Base Consideration	36	Inventory	39
	Books and Records	36	Knowledge	39
	Business	36	Law	39
	Business Day	36	Liabilities	39
	Business Transfer Documents	5	License Agreement	39
	Calendar Quarter	36	Licensed IP	39
	Cap	31	Liens	39
	cGMP	36	Marketing Authorization	39
	Chargebacks	36	Material Adverse Effect	39
	Closing	6	Milestone Payment	7
	Closing Cash Consideration	37	MOU Product	40
	Closing Date	6	Net Sales	40
	Commercially Reasonable Efforts	36	Non-Transferred Contracts	15
	Competing Product	26	Objections Statement	9
	Co-Pay Contracts	37	OFAC	19
	Data Room	37	Party, Parties	4
	Deal Communications	34	Patents	41
	Disclosure Schedules	12	PDUFA Fees	41
	Domain Names	37	Permits	18
	Endoceutics Amendment	37	Permitted Liens	42
	Estimated Net Working Capital Amount	8	Person	42
	Estimated Saleable Inventory	8	Post-Closing Tax Period	42
	Excluded Assets	37	Pre-Closing Accounts Payable	42
	Excluded Liabilities	37	Pre-Closing Accounts Receivable	42
	Federal Health Care Programs	19	Pre-Closing Tax Period	42

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	Final Cash Consideration	38	Preliminary Statement	8
	Final NWC Adjustment Amount	38	Privileged Communications	34
	Financial Statements	14	Proceeding	42
	GAAP	38	Product	42
	Goodwin	6	Product Copyrights	42
	Governmental Entity	38	Product Labels and Inserts	43
	Promotional Materials	43	Tax Allocation	13
	Purchase Price Adjustment Amount	43	Tax Claim	35
	Purchaser	4	Tax Returns	44
	Purchaser Fundamental Reps	43	Territory	45
	Purchaser Indemnified Parties	29	Third Party	45
	Purchaser Portion of PDUFA Fees	43	Third-Party Claim	29
	Quarterly Reports	7	Threshold Amount	31
	R&W Policy	6	Trademarks	45
	Rebates	43	Transfer Letters	45
	Regulatory Applications	43	Transfer Taxes	45
	Regulatory Files	43	Transferred Assets	45
	Relevant Product	27	Transferred Contracts	45
	Saleable Inventory	44	Transferred Equipment	45
	Schedule	12	Transferred IP	45
	Seller	4	Transition Services Agreement	20, 45
	Seller Fundamental Reps	44	Transitional Trademark License Agreement	45
	Seller Indemnified Parties	29	Unaffiliated Party	34
	Shared Contract	43	Unaffiliated Party Suit	35
	Subsidiary	43	Valuation Firm	9
	Tax	44	Website IP	45

ARTICLE XII
MISCELLANEOUS
12.01 Representations, Warranties, Covenants and Agreements.  The Purchaser acknowledges and agrees that it has conducted to its satisfaction an independent investigation and verification into and concerning the Transferred Assets and the Business, that the Purchaser has been provided sufficient access to such information, documents and other materials relating to the Transferred Assets and the Business, and, in making its determination to proceed with the transactions contemplated by this Agreement, the Purchaser has relied solely and exclusively on the representations and warranties of the Seller expressly and specifically set forth in ‎Article V, as qualified by the Disclosure Schedules.  Such representations and warranties by the Seller constitute the sole and exclusive representations and warranties of the Seller to the Purchaser in connection with the transactions contemplated hereby, and 
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the Purchaser understands, acknowledges and agrees that all other representations and warranties of any kind or nature expressed or implied are specifically disclaimed by the Seller.  The Purchaser expressly disclaims reliance on any omissions of any representations and warranties of the Seller in ‎Article V.  EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, NONE OF THE SELLER OR ITS AFFILIATES MAKES OR PROVIDES, AND THE PURCHASER HEREBY WAIVES, ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE QUALITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, CONFORMITY TO SAMPLES, OR CONDITION OF THE TRANSFERRED ASSETS.  In connection with the Purchaser’s investigation of the Transferred Assets, the Purchaser has received certain projections, including projected statements of operating revenues and income from operation of the Business and certain business plan information.  The Purchaser acknowledges that there are uncertainties inherent in attempting to make such estimates, projections, budgets, pipeline reports and other forecasts and plans, that the Purchaser is familiar with such uncertainties and that the Purchaser is taking full responsibility for making its own evaluation of the adequacy and accuracy of all estimates, projections, budgets, pipeline reports and other forecasts and plans so furnished to it, including the reasonableness of the assumptions underlying such estimates, projections, budgets, pipeline reports and other forecasts and plans.  Accordingly, the Purchaser hereby acknowledges that the Seller is not making any representation or warranty with respect to such estimates, projections, budgets, pipeline reports and other forecasts and plans, including the reasonableness of the assumptions underlying such estimates, projections, budgets, pipeline reports, forecasts and plans, and that the Purchaser has not relied on any such estimates, projections, budgets, pipeline reports or other forecasts or plans.  The Purchaser further agrees that (a) neither the Seller nor any other Person will have or be subject to any liability to the Purchaser or any other Person resulting from the distribution to the Purchaser, or the Purchaser’s use of, any such information, including any information, document or material made available to the Purchaser in certain data rooms, management presentations, the confidential information memorandum, or any other form in expectation of the transactions contemplated by this Agreement, including liability related to the completeness or accuracy of any such information, and (b) the Purchaser has not relied on any such information.  Notwithstanding anything contained herein to the contrary, nothing in this Section ‎12.01 shall limit (i) any Person’s remedies in the event of actual and intentional fraud made with respect to this Agreement (other than any claim for equitable fraud, promissory fraud, unfair dealings fraud or any torts based on negligence or recklessness) against the Person who committed such fraud, or (ii) any Person’s liability in the event of actual and intentional fraud committed by such Person with respect to this Agreement (other than any claim for equitable fraud, promissory fraud, unfair dealings fraud or any torts based on negligence or recklessness).   
12.02 Press Releases and Communications.  No press release or public announcement, written or oral, related to this Agreement, the transactions contemplated herein or to the existence of any arrangement between the Parties,  shall be issued or made by any Party (or any Affiliate of a Party) without the joint approval of the Purchaser and the Seller (which approval shall not be unreasonably withheld), unless required by Law or the listing requirements of the Nasdaq (on the reasonable advice of counsel) in which case the Purchaser and the Seller shall have the right to review such press release, announcement or communication prior to issuance, distribution or publication to the extent reasonably practicable.  For the avoidance of doubt, the Parties acknowledge and agree that the Seller and its Affiliates may provide general information about the subject matter of this Agreement in connection with their fund raising, marketing, informational or reporting activities.  Notwithstanding anything contained herein to the contrary, unless required by Law or the listing requirements of the Nasdaq (on 
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the reasonable advice of counsel), the Purchaser shall not use the name or mark of any Affiliates of the Seller, or any abbreviation, variation or derivative thereof, in any press release, public announcement or similar public document or communication relating to the transactions contemplated by this Agreement without the express written consent of the Seller.  If either party, based on the advice of its counsel, determines that this Agreement, or any of the Ancillary Agreements, must be publicly filed with a Governmental Entity, then such party, prior to making any such filing, shall provide the other party and its counsel with a redacted version of this Agreement (and any other Ancillary Agreement) which it intends to file, and will give due consideration to any comments provided by the other party or its counsel and use commercially reasonable efforts to ensure the confidential treatment by such Governmental Entity of those sections specified by the other party or its counsel.
12.03 Expenses.  Except as otherwise expressly provided herein, all costs, fees and expenses incurred in connection with the negotiation of this Agreement, the Ancillary Agreements, the performance of the obligations hereunder and thereunder and the consummation of the transactions contemplated hereby and thereby, whether or not consummated, shall be paid by the Party incurring such cost or expense.
12.04 Notices.  All notices, demands and other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given (a) when personally delivered, (b) when transmitted via facsimile machine to the number set out below if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), (c) the day following the day (except if not a Business Day then the next Business Day) on which the same has been delivered prepaid to a reputable national overnight air courier service or (d) the third Business Day following the day on which the same is sent by certified or registered mail, postage prepaid.  Notices, demands and communications, in each case to the respective parties, shall be sent to the applicable address set forth below, unless another address has been previously specified in writing:
Notices to the Purchaser:
Millicent Pharma Ltd, 
Block 4 Floor 2, Quayside Business Park, 
Mill Street, Dundalk, 
County Louth, 
A91 KA9R 
Ireland
Attention: Chief Executive Officer

with copies (which shall not constitute notice) to:
Hutchison PLLC 
 3110 Edwards Mill Rd., Suite 300 
 Raleigh, NC 27612 
 Attention: Dan O’Korn
 Facsimile: (919) 859-1841

Notices to the Seller:
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AMAG Pharmaceuticals, Inc.
1100 Winter Street
Waltham, Massachusetts 02451
Attention: Joseph Vittiglio & Ted Myles 
Facsimile: (617) 812-1659

with copies (which shall not constitute notice) to:
Goodwin Procter LLP
100 Northern Ave 
Boston, Massachusetts 02110
Attention: Stuart Cable, Jacqueline Mercier & Robert Crawford Facsimile: (617) 523-1231

Or to such other address with respect to a party as such party notifies the other in writing as above provided.
12.05 Successors and Assigns.  This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the Parties and their respective heirs, successors and permitted assigns; provided that neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned or delegated by (a) the Purchaser without the prior written consent of the Seller, or (b) the Seller without the prior written consent of the Purchaser.  Notwithstanding the foregoing, the Purchaser may assign (without relieving it of its obligations under) this Agreement in whole or in part to any of its Subsidiaries or Affiliates.  For the avoidance of doubt, any permitted assignment to an Affiliate shall be deemed null and void as of the time of the assignment if, following such assignment, such Affiliate ceases to be an Affiliate of the assigning Party.  Any attempted assignment or transfer in violation of this Section ‎12.05 shall be null and void.
12.06 Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Law, but if any provision, including any phrase, sentence, clause, section or subsection, of this Agreement is determined by a court of competent jurisdiction to be invalid, inoperative or unenforceable for any reason, such provision shall be modified or eliminated to the minimum extent necessary to achieve, to the extent possible, the purpose of such provision, and the Agreement shall otherwise remain in full force and effect and enforceable; provided that such modification or elimination does not affect the economic or legal substance of this Agreement or transactions contemplated by this Agreement in a manner adverse to any party hereto.
12.07 Construction.  The language used in this Agreement shall be deemed to be the language chosen by the Parties to express their mutual intent, and no rule of strict construction shall be applied against any Person.  The Disclosure Schedules have been arranged for purposes of convenience in separately titled sections; however, each section of the Disclosure Schedules shall be deemed to incorporate by reference all information disclosed in any other section of the Disclosure Schedules to the extent its relevance is reasonably apparent on its face.  Any information set forth in any Schedule or incorporated in any Section of the Agreement shall, to the extent its relevance is reasonably apparent on its face, be considered to have been set forth in each other Schedule and shall be deemed to modify the representations and warranties in ‎Article V of this Agreement whether or not such representations and 
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warranties refer to such Schedule or any Schedule; provided that the disclosures and information in the Schedules shall not constitute a representation or warranty and shall not expand any representation or warranty in Article V.  The specification of any dollar amount or the inclusion of any item in the representations and warranties contained in this Agreement or the Disclosure Schedules or Exhibits is not intended to imply that the amounts, or higher or lower amounts, or the items so included, or other items, are or are not required to be disclosed (including whether such amounts or items are required to be disclosed as material or threatened) or are within or outside of the ordinary course of business.  The information contained in this Agreement and in the Disclosure Schedules and Exhibits hereto is disclosed solely for purposes of this Agreement, and no information contained herein or therein shall be deemed to be an admission by any party hereto to any Third Party of any matter whatsoever (including any violation of Law or breach of contract).  For purposes of this Agreement, if the Seller or a Person acting on its behalf posts a document to the Data Room, such document shall be deemed to have been “delivered,” “furnished” or “made available” (or any phrase of similar import) to the Purchaser by the Seller.  
12.08 Amendment and Waiver.  Any provision of this Agreement or the Disclosure Schedules or Exhibits hereto may be amended or waived only in a writing signed by the Purchaser and the Seller.  
12.09 Entire Agreement.  This Agreement (including the Exhibits, Annexes and Schedules hereto), the Ancillary Agreements (when executed and delivered) and the Confidentiality Agreement constitute the entire agreement and supersede all prior agreements, understandings and representations, both written and oral, between the parties with respect to the subject matter hereof.  In the event of any conflict between this Agreement and any agreement entered into in connection herewith, including any Ancillary Agreement, the provisions of this Agreement will control.  The parties agree that no Ancillary Agreement is intended or will be construed in any way, to enhance, decrease or otherwise modify any of the rights or obligations of the Purchaser, the Seller or any of their respective Affiliates from those contained in this Agreement.
12.10 Third-Party Beneficiaries.  Except as otherwise expressly provided herein, nothing expressed or referred to in this Agreement will be construed to give any Person other than the Parties any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement.
12.11 Purchaser Deliveries.  The Purchaser agrees and acknowledges that all documents or other items delivered or made available to the Purchaser’s Representatives shall be deemed to be delivered or made available, as the case may be, to the Purchaser for all purposes hereunder.
12.12 Delivery by Electronic Transmission.  This Agreement and any signed agreement entered into in connection herewith or contemplated hereby, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine or by .pdf, .tif, .gif, .jpeg or similar attachment to electronic mail, shall be treated in all manner and respects as an original contract and shall be considered to have the same binding legal effects as if it were the original signed version thereof delivered in person.  At the request of any party hereto or to any such contract, each other party hereto or thereto shall re–execute original forms thereof and deliver them to all other parties.  No party hereto or to any such contract shall raise the use of a facsimile machine or by .pdf, .tif, .gif, .jpeg or similar attachment to electronic mail to deliver a signature or the fact that any signature or contract was transmitted or communicated through the use of facsimile machine or by .pdf, .tif, .gif, .jpeg or similar attachment to 
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electronic mail as a defense to the formation of a contract and each such party forever waives any such defense.
12.13 Counterparts; Effectiveness.  This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which shall together constitute one and the same instrument.  This Agreement shall become effective when each party shall have received a counterpart hereof signed by all of the other parties.  Until and unless each party has received a counterpart hereof signed by the other party, this Agreement shall have no effect and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication).
12.14 Governing Law.  All issues and questions concerning the construction, validity, interpretation and enforceability of this Agreement and the Exhibits and Schedules hereto shall be governed by, and construed in accordance with, the Laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of Delaware.  Neither this Agreement nor any right or obligation of any of the parties under this Agreement shall be governed by the U.N. Convention on Contracts for the International Sale of Goods, and the parties to this Agreement expressly waive or disclaim, as the case may be, any right or obligation they may have under this Agreement pursuant to the U.N. Convention on Contracts for the International Sale of Goods.
12.15 Jurisdiction.  Except as otherwise expressly provided in this Agreement, any Proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States District Court for the District of Delaware, the Delaware Court of Chancery of the State of Delaware or any other court of the State of Delaware, and each of the Parties hereby consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such Proceeding and irrevocably waives, to the fullest extent permitted by Law, any objection which it may now or hereafter have to the laying of the venue of any such Proceeding in any such court or that any such Proceeding which is brought in any such court has been brought in an inconvenient forum.  Process in any such Proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.  Without limiting the foregoing, each party agrees that service of process on such party as provided in Section ‎12.04 shall be deemed effective service of process on such party.  
12.16 Waiver of Trial by Jury.  EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS AMONG THE PARTIES IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE.  EACH PARTY TO THIS AGREEMENT HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
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12.17 Non-Recourse.  Except as expressly set forth herein, this Agreement may only be enforced against, and any claim or cause of action based upon, arising out of or related to this Agreement may only be brought against, the Persons that are expressly named as parties to this Agreement.  Except to the extent named as a party to this Agreement, and then only to the extent of the specific obligations of such parties set forth in this Agreement, no past, present or future shareholder, member, partner, manager, director, officer, employee, Affiliate, agent or representative of any party to this Agreement or successor or assignee of any of the foregoing will have any liability (whether in contract, tort, equity or otherwise) for any of the representations, warranties, covenants, agreements or other obligations or liabilities of any of the parties to this Agreement or for any claim based upon, arising out of or related to this Agreement. NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO THE CONTRARY, NOTHING IN THIS SECTION ‎12.17 SHALL LIMIT (I) ANY PERSON’S REMEDIES IN THE EVENT OF ACTUAL AND INTENTIONAL FRAUD MADE WITH RESPECT TO THIS AGREEMENT (OTHER THAN ANY CLAIM FOR EQUITABLE FRAUD, PROMISSORY FRAUD, UNFAIR DEALINGS FRAUD OR ANY TORTS BASED ON NEGLIGENCE OR RECKLESSNESS) AGAINST THE PERSON WHO COMMITTED SUCH FRAUD, OR (II) ANY PERSON’S LIABILITY IN THE EVENT OF ACTUAL AND INTENTIONAL FRAUD COMMITTED BY SUCH PERSON WITH RESPECT TO THIS AGREEMENT (OTHER THAN ANY CLAIM FOR EQUITABLE FRAUD, PROMISSORY FRAUD, UNFAIR DEALINGS FRAUD OR ANY TORTS BASED ON NEGLIGENCE OR RECKLESSNESS).
12.18 Specific Performance.  Each of the Parties acknowledges that the rights of each party to consummate the transactions contemplated hereby are unique and recognizes and affirms that in the event of a breach of this Agreement by any party, money damages may be inadequate, and the non-breaching party may have no adequate remedy at law.  Accordingly, the parties agree that such non breaching party shall have the right, in addition to any other rights and remedies existing in their favor at law or in equity, to enforce their rights and the other party’s obligations hereunder not only by an action or actions for damages but also by an action or actions for specific performance, injunctive and/or other equitable relief (without posting of bond or other security.
12.19 Time is of the Essence.  The parties hereby expressly acknowledge and agree that time is of the essence for each and every provision of this Agreement.
[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties hereto have executed this Asset Purchase Agreement on the date first above written.
						
		
	The Purchaser:
	MILLICENT PHARMA LIMITED
		

By:  /s/ Claire Gilligan 

		Name: Claire GilliganTitle:   Director
		
		
	The Seller:
	AMAG PHARMACEUTICALS, INC.
		

By:  /s/ Scott D. Myers 

		Name: Scott D. MyersTitle:   President and Chief Executive Officer

[Signature Page to Asset Purchase Agreement]

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