Document:

EX-10.24

 Exhibit 10.24 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential
Treatment has been requested with respect to the omitted portions. 
 EXECUTION VERSION 

EXCLUSIVE LICENSE AND OPTION AGREEMENT 

This EXCLUSIVE LICENSE AND OPTION AGREEMENT (the “Agreement”) is made and entered into effective as of 28 October 2017 (the
“Effective Date”) by and between ASTRAZENECA AB, a company incorporated in Sweden under no. 556011-7482 with its registered office at SE-151 85 Sodertalje, Sweden
(“AstraZeneca”), and MEREO BIOPHARMA 4 LIMITED, a company incorporated in England and Wales under no. 11029583 with its registered office at 4th Floor, One, Cavendish Place,
London, W1G 0QF (“Mereo”). AstraZeneca and Mereo are sometimes referred to herein individually as a “Party” and collectively as the “Parties.” 

BACKGROUND 
  

	(A)	 AstraZeneca owns and controls certain intellectual property rights and assets relating to a compound designated
AZD9668, which is an orally delivered form of a neutrophil elastase inhibitor that has been the subject of Phase II clinical trials in respiratory diseases [***]; 

 

	(B)	 AstraZeneca wishes to grant a world-wide, exclusive license to Mereo and Mereo wishes to obtain, a license
under such intellectual property rights to develop, manufacture and commercialize such compounds in the Territory, in each case in accordance with the terms and conditions set forth in this Agreement; and 

 

	(C)	 AstraZeneca wishes to grant Mereo an option to acquire title to certain of such intellectual property rights
and Mereo wishes to obtain such option, in accordance with the terms and conditions set forth in this Agreement. 

 NOW, THEREFORE,
in consideration of the premises and the mutual promises and conditions set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties, intending to be legally bound, do hereby
agree as follows: 
  

	1.	 DEFINITIONS 

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

 

	1.1	 “[***]” has the meaning given in the Subscription Deed; 

 

	1.2	 “Accounting Standards” means the International Financial Reporting Standards
(“IFRS”), consistently applied. 

  

	1.3	 “Additional Studies” means the [***] collaborative research agreements
currently under negotiation or recently executed between AstraZeneca or its Affiliates and [***], in each case which relate to the Compounds and which will be entered into prior to or after the Effective Date pursuant to Section 5.6, as further
described in Part 1 of Schedule 1.3. 

	1.4	 “Affiliate” means, with respect to a Party, any Person that, directly or indirectly, through
one (1) or more intermediaries, controls, is controlled by or is under common control with such Party. For purposes of this definition, “control” and, with correlative meanings, the terms “controlled by” and “under
common control with” means: (i) the possession, directly or indirectly, of the power to direct the management or policies of a business entity, whether through the ownership of voting securities, by contract relating to voting rights or
corporate governance or otherwise; or (ii) the ownership, directly or indirectly, of fifty percent (50%) or more of the voting securities or other ownership interest of a business entity (or, with respect to a limited partnership or other
similar entity, its general partner or controlling entity). 

  

	1.5	 “Agreement” has the meaning set forth in the preamble hereto. 

 

	1.6	 “Anti-Corruption Laws” means the U.S. Foreign Corrupt Practices Act, as amended, the UK
Bribery Act 2010, as amended, and any other applicable anti-corruption laws and laws for the prevention of fraud, racketeering, money laundering or terrorism. 

 

	1.7	 “Applicable Law” means all federal, provincial, state, local and foreign law (including United
States), (statutory, common or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, directive, order, injunction, judgment, decree, ruling or other similar requirement, and other agreements between states or between
states and the European Union or other supranational bodies, including any rules, regulations, guidelines or other requirements of the Regulatory Authorities, that may be in effect from time to time, including the FFDCA and the Anti-Corruption Laws.

  

	1.8	 “API” means active pharmaceutical ingredient. 

 

	1.9	 “AstraZeneca” has the meaning set forth in the preamble hereto. 

 

	1.10	 “AstraZeneca Hourly Rate” means an hourly rate of [***] United States Dollars for AstraZeneca
personnel. 

  

	1.11	 “AZ’s Global Ethical Interactions Policy” means AstraZeneca’s
“Ethical Interactions & Anti-Bribery/Anti-Corruption Policy”, as available on AstraZeneca’s website at https://www.astrazeneca.com/content/dam/az/PDF/Ethical-Interactions-Policy.pdf from time to time. 

 

	1.12	 “Auditor” has the meaning set forth in Section 8.14. 

 

	1.13	 “Breaching Party” has the meaning set forth in Section 14.2.1. 

 

	1.14	 “Business” means the assets, business, operations and activities of Developing and
Manufacturing the Compounds and includes any other actions taken in furtherance of the Business. 

  

	1.15	 “Business Day” means a day other than a Saturday or Sunday or a day on which banking
institutions in London or Stockholm, Sweden are permitted or required to be closed. 

  
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in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
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	1.16	 “Calculation Agent” means the auditors (from time to time) of the Company or, if they are
unwilling or unable to act, an independent firm of chartered accountants (of international repute) as the parties shall agree (or, if they are unable to reach agreement within [***] of a notice to agree being served by either party on the other, as
determined by the [***] on the [***]); 

  

	1.17	 “Calendar Quarter” means each successive period of three (3) calendar months commencing
on 1 January, 1 April, 1 July and 1 October, except that the first Calendar Quarter of the Term shall commence on the Effective Date and end on the day immediately prior to the first to occur of 1 January, 1 April,
1 July or 1 October after the Effective Date and the last Calendar Quarter shall end on the last day of the Term. 

  

	1.18	 “Calendar Year” means each successive period of twelve (12) calendar months commencing on
1 January and ending on 31 December, except that the first Calendar Year of the Term shall commence on the Effective Date and end on 31 December of the year in which the Effective Date occurs and the last Calendar Year of the Term shall
commence on 1 January of the year in which the Term ends and end on the last day of the Term. 

  

	1.19	 “Clinical Trial” means any [***], [***] and/or variations or subsets of such trials. 

  

	1.20	 “Combination Product” means (a) a single Product in finished form that is comprised of or
contains a Compound as an API together with one (1) or more other APIs and is sold [***]; (b) any Product [***]; or (c) any Product [***] (i.e. where a Product [***]), to the extent not described in (a) or (b). 

 

	1.21	 “Commencement” means, in relation to a Clinical Trial, the first dosing of the first patient
participating in such Clinical Trial. 

  

	1.22	 “Commercialization” means any and all activities directed to the launch of, offering for sale
of or sale of a Product, including activities related to marketing, promoting, detailing, distributing, Manufacturing, importing, exporting, offering to sell or selling such Product, interacting with Regulatory Authorities regarding any of the
foregoing and seeking pricing or reimbursement approvals (as applicable). When used as a verb, “to Commercialize” and “Commercializing” means to engage in Commercialization and “Commercialized” has a corresponding
meaning. 

  

	1.23	 “Commercially Reasonable Efforts” means, with respect to the performance of Development or
Commercialization activities with respect to a Compound or a Product by Mereo, the carrying out of such activities using efforts and resources comparable to the efforts and resources used by an entity that is comparable and similarly situated to
Mereo in the research-based bio-pharmaceutical industry for compounds or products of similar market potential at a similar stage in development or product life taking into account mechanism of action, product
profile, efficacy, safety, actual or anticipated Regulatory Authority approved labelling, the nature and extent of market exclusivity (including patent coverage, proprietary position and regulatory exclusivity), competitiveness of alternative
products in the marketplace, costs, time required for and likelihood of obtaining Regulatory Approval given the regulatory structure involved, product profitability, and other relevant factors commonly considered in similar circumstances.

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
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	1.24	 “Competitive Product” means any neutrophil elastase inhibitors for the treatment of: Alpha-1 Antitrypsin Deficiency. 

  

	1.25	 “Compound” means (a) (i) the pharmaceutical compound known as AZD9668, which is a
neutrophil elastase inhibitor (the “9668 Compound”) [***] and (b) any [***] of (a). 

  

	1.26	 “Confidential Information” has the meaning set forth in Section 10.1.

  

	1.27	 “Control” or “Controlled” (as applicable) means, with respect to any item of
Information, Regulatory Documentation, material, Patent, Know-How or other intellectual property right, possession of the right of a Party or its Affiliates, whether directly or indirectly and whether by
ownership, license or otherwise (other than by operation of the license and other grants in Section 2.1), to grant to the other Party a license, sublicense, access or other right (including the right to reference Regulatory Documentation) to or
under such Information, Regulatory Documentation, Patent or other intellectual property right as provided for herein without violating the terms of any agreement with any Third Party in existence as of the time such Party or its Affiliates would
first be required hereunder to grant the other Party such license, sublicense, access or other right. 

  

	1.28	 “Controlling Party” has the meaning set forth in Section 9.5. 

 

	1.29	 “Currency Conversion Policy” means Mereo’s, its Affiliate’s or Sublicensee’s,
as applicable, standard currency conversion policy from time to time, consistent with Accounting Standards and IAS 21 (The Effects of Changes in Foreign Exchange Rates) and which is consistently applied across Mereo, its Affiliates or Sublicencee,
as applicable.  

  

	1.30	 “Development” means all drug development activities, including those related to research, pre-clinical and other non-clinical testing, test method development and stability testing, toxicology, assay development and audit development formulation, process
development, manufacturing scale-up, qualification and validation, quality assurance/quality control, clinical studies, including Manufacturing in support thereof, statistical analysis and report writing, the
preparation, submission and prosecution of Drug Approval Applications, regulatory affairs with respect to the foregoing, packaging development and all other activities necessary or reasonably useful or otherwise requested or required by a Regulatory
Authority as a condition or in support of obtaining or maintaining a Regulatory Approval. When used as a verb, “Develop” means to engage in Development. 

 

	1.31	 “Development Report Period” means, on a Product-by-Product basis, the period commencing on the Effective Date and expiring on Mereo’s cessation of Development for such Product. 

 

	1.32	 “Dispute” has the meaning set forth in Section 16.6.1. 

  
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in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
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	1.33	 “Dollars” or “$” means United States Dollars. 

 

	1.34	 “Drug Approval Application” means a New Drug Application as defined in the FFDCA or any
corresponding foreign application in the Territory, including, with respect to the European Union, a Marketing Authorization Application filed with the EMA pursuant to the centralized approval procedure or with the applicable Regulatory Authority of
a country in Europe with respect to the mutual recognition or any other national approval. 

  

	1.35	 “Effective Date” has the meaning set forth in the preamble hereto. 

 

	1.36	 “EMA” means the European Medicines Agency and any successor agency thereto.

  

	1.37	 “Enforcing Party” has the meaning set forth in Section 9.3.2. 

 

	1.38	 “European Union” or “EU” means the economic, scientific and political
organization of member states as it may be constituted as at the Effective Date. For clarity, the European Union, as at the Effective Date, includes the United Kingdom. 

 

	1.39	 “Exploit” means to make, have made, import, use, sell or offer for sale, including to
research, Develop, Commercialize, register, Manufacture, have Manufactured, hold or keep (whether for disposal or otherwise), have used, export, transport, distribute, promote, market or have sold or otherwise dispose of. 

 

	1.40	 “Exploitation” means the act of Exploiting a compound, product or process.

  

	1.41	 “Fair Market Value” means, with respect to any property on any date, the fair market value of
that property as determined by the Calculation Agent, provided that the fair market value of a cash dividend paid or to be paid per Ordinary Share shall be the amount of such cash dividend per Ordinary Share determined as at the date of announcement
of such dividend; 

  

	1.42	 “FDA” means the United States Food and Drug Administration and any successor agency thereto.

  

	1.43	 “FFDCA” means the United States Food, Drug, and Cosmetic Act, as amended from time to time,
together with any rules, regulations and requirements promulgated thereunder (including all additions, supplements, extensions and modifications thereto). 

  

	1.44	 “Field” means all diagnostic, prophylactic and therapeutic uses in humans and animals.

  

	1.45	 “First Commercial Sale” means, on a Product-by-Product and country-by-country basis, the first invoiced sale by Mereo or an Affiliate of Mereo or a Sublicensee to a
Third Party for monetary value for use or consumption by the end user of such Product in such country after Regulatory Approval for such Product has been obtained in such country. Sales or transfers prior to receipt of Regulatory Approval for such
Product for research, use pursuant to a treatment IND, proof of concept studies or other clinical trial purposes, or for compassionate, named patient or other similar use, shall not be considered a First Commercial Sale. 

  
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in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
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	1.46	 “[***]” means the [***] of [***] following [***] of [***] of [***] such that the [***]. For
the avoidance of doubt this does not include [***]. 

  

	1.47	 “Generic Version” means, with respect to [***] a Product, any other prescription
pharmaceutical product sold by a Third Party that is not a Sublicensee, or distributor of Mereo, its Affiliate, or their Sublicensees, that (i) contains the same API(s) as such Product, (ii) has the same [***] as such Product and
(ii) is “therapeutically equivalent” as evaluated by the FDA, applying the definition of “therapeutically equivalent” set forth in the preface to the FDA’s Orange Book (or, with respect to any country in the Territory
outside the United States, is similarly substitutable under equivalent Applicable Law in such country), with respect to such [***], as such Product. 

  

	1.48	 “Government Official” means (a) any Person employed by or acting on
behalf of a government, government-controlled agency or entity or public international organization, (b) any political party, party official or candidate, (c) any Person who holds or performs the duties of an appointment, office or
position created by custom or convention or (d) any Person who holds himself out to be the authorized intermediary of any of the foregoing. 

  

	1.49	 “Hatch-Waxman Act” means the U.S. “Drug Price Competition and Patent Term Restoration
Act” of 1984, as set forth at 21 U.S.C. §355(b)(2)(A)(iv) or (j)(2)(A)(vii)(IV). 

  

	1.50	 “Indemnification Claim Notice” has the meaning set forth in Section 13.3.1.

  

	1.51	 “Indemnified Party” has the meaning set forth in Section 13.3.1. 

 

	1.52	 “Indication” means a specific disease or condition for which a Product is designed to
diagnose, mitigate, prevent or treat. 

  

	1.53	 “Information” means all technical, scientific and other
know-how and information, trade secrets, knowledge, technology, means, methods, processes, practices, formulae, instructions, skills, techniques, procedures, structures, sequences, experiences, ideas,
technical assistance, designs, drawings, assembly procedures, computer programs, apparatuses, specifications, data, results and other material, including: biological, chemical, pharmacological, toxicological, pharmaceutical, physical and analytical,
pre-clinical, clinical, safety, manufacturing and quality control data and information, including study designs and protocols, statistical programs including QC programs, clinical study reports, trial master
files, assays and biological methodology, in each case (whether or not confidential, proprietary, patented or patentable) in written, electronic or any other form now known or hereafter developed under or in connection with any Transferring
Contract, Additional Study or Ongoing Research Agreement which is not assigned to Mereo as of the Effective Date. 

  

	1.54	 “Infringement” has the meaning set forth in Section 9.3.1. 

 

	1.55	 “Initiation” means, with respect to a clinical study, the first dosing of the first human
subject in such clinical study. 

  
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in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
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	1.56	 “Invention” means any invention, Information, discovery, development or modification, whether
or not patented or patentable. 

  

	1.57	 “Invoiced Sales” has the meaning set forth in the definition of “Net Sales”.

  

	1.58	 “Knowledge” means, with regard to AstraZeneca, the actual knowledge [***] of [***] of
AstraZeneca [***], and with respect to Mereo, the actual knowledge of the [***] of Mereo.  

  

	1.59	 “Loan Note 1” means the [***] to be issued by Mereo to MBGP for the principal amount of
$2.0 million pursuant to Section 8.2.1(a). 

  

	1.60	 “Loan Note 2” means the [***] to be issued by Mereo to MBGP for the principal amount of $[***]
pursuant to Section 8.2.1(b). 

  

	1.61	 “Loan Note 3” means the [***] to be issued by Mereo to MBGP for the principal amount of $[***]
pursuant to Section 8.2.1(c). 

  

	1.62	 “Loan Notes” means Loan Note 1, Loan Note 2 and Loan Note 3; 

 

	1.63	 “Losses” has the meaning set forth in Section 13.1. 

 

	1.64	 “MAA” means an application for the authorization to market any Product in any country or group
of countries outside the United States, as defined in the applicable laws and regulations and filed with the Regulatory Authority of a given country or group of countries. 

 

	1.65	 “Manufacture” and “Manufacturing” means all activities related to the
production, manufacture, processing, filling, finishing, packaging, labelling, shipping and holding of a Product, or Compound or any intermediate thereof, including process development, process qualification and validation, scale-up, pre-clinical, clinical and commercial manufacture and analytical development, product characterization, stability testing, quality assurance and quality control.

  

	1.66	 “Material Anti-Corruption Law Violation” means a violation of an
Anti-Corruption Law relating to the subject matter of this Agreement that would, [***], have a material adverse effect on AstraZeneca [***]. 

  

	1.67	 “Mereo” has the meaning set forth in the preamble hereto. 

 

	1.68	 “MBGP” means Mereo BioPharma Group plc, a company incorporated in England and Wales with
registered number 09481161. 

  

	1.69	 “NCATS” means the National Center for Advancing Translational Sciences of the United States
National Institutes of Health. 

  

	1.70	 “Net Sales” means, with respect to a Product for any period, the gross amounts invoiced by
Mereo or its Affiliates to Third Parties for sales of the Product in the Territory (the “Invoiced Sales”), less the following deductions to the extent included in the gross invoiced sales price for the Product or otherwise directly
paid or incurred by Mereo or its Affiliates with respect to the sale of the Product: 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
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	 	(a)	 trade, quantity, governmental or cash discounts, credits, adjustments or allowances, including those granted on
account of price adjustments, billing errors, rejected goods or damaged goods or goods otherwise not in saleable condition; 

  

	 	(b)	 rebates and chargebacks allowed, given or accrued to customers and Third Parties (including cash, governmental
and managed care rebates, hospital or other buying group chargebacks, and governmental taxes in the nature of a rebate based on usage levels or sales of the Product); 

 

	 	(c)	 taxes related to [***] assessed on the sale of the Product; 

 

	 	(d)	 any other similar and customary deductions that are consistent with Accounting Standards;

  

	 	(e)	 to the extent amounts from a prior period are not collected and are written off by Mereo, including bad debts,
the lesser of (i) [***] and (ii) [***], provided that if any such amounts are subsequently collected, they will be included in the calculation of Net Sales; and 

 

	 	(f)	 an allowance for transportation costs, distribution expenses, special packaging and related insurance charges,
freight and insurance charges, taken in accordance with Purchaser’s standard practices applicable to other of Purchaser’s products, which allowance will in no event exceed [***] of the amount arrived at after application of items
(a) to (d) above.  

 Subject to the above, Net Sales shall be calculated in accordance with Accounting
Standards. For the avoidance of doubt, in the case of any sale or other disposal of a Product between or among Mereo and its Affiliates for resale, invoiced sales and Net Sales shall be calculated only on the amount invoiced on the first arm’s
length sale thereafter to a Third Party, provided that in each case: 
  

	 	(i)	 the following will not be included in Net Sales: 

 

	 	(A)	 transfers or dispositions for charitable, promotional, pre-clinical,
clinical, regulatory, compassionate use, named patient use, indigent programs or governmental purposes; 

  

	 	(B)	 commercially reasonable quantities of Product used as samples to promote additional Net Sales; and

  

	 	(C)	 Product provided for use in the Development of Products; and 

 

	 	(D)	 sales or transfers between or among Mereo, its Affiliates or Sublicensees; 

 

	 	(ii)	 in the event that a Product is sold as part of a Combination Product, Net Sales of the Product, shall be
determined by multiplying Net Sales of the Combination Product by the fraction A/(A+B), where A is the weighted (by sales volume) average sales price of the Product when sold separately in finished form and B is the weighted average sale

  
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in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
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price of the other product(s) sold separately in finished form. In the event that such average sales price cannot be determined for both the Product and the other product(s) in combination, Net
Sales for purposes of determining payments hereunder shall be mutually agreed by the Parties based on the relative value contributed by each component, and such agreement shall not be unreasonably withheld. 

 

	1.71	 “Non-Breaching Party” has the meaning set forth in
Section 14.2.1. 

  

	1.72	 “Notice Period” shall have the meaning set forth in Section 14.2.1.

  

	1.73	 “Ongoing MTAs” means those ongoing material transfer agreements between
AstraZeneca or an Affiliate of AstraZeneca and a Third Party, which relate to the Compounds, each as described in more detail on Schedule 1.129. 

  

	1.74	 “Ongoing Research Agreements” means [***]; and [***] the Ongoing MTAs, each as described in
more detail on Schedule 1.129. 

  

	1.75	 “Option” shall have the meaning set forth in Section 2.1.3. 

 

	1.76	 “Option Exercise Date” shall have the meaning set forth in Section 2.1.3(b).

  

	1.77	 “Option Know-How” means (i) any Information which
is owned by AstraZeneca or any of its Affiliates as of the Effective Date or which is owned or Controlled by AstraZeneca or any of its Affiliates under the Transferring Contracts and Additional Studies following the Effective Date and prior to the
effective date of the assignment of the relevant Transferring Contract or Additional Study, in each case, that (ii) relates [***] to the Compounds. 

  

	1.78	 “Option Intellectual Property” means (a) the Option
Know-How and (b) the Option Patents (i) which are owned by AstraZeneca or any of its Affiliates as of the Effective Date as well as any Information which is owned or Controlled by AstraZeneca or any
of its Affiliates under the Transferring Contracts and Additional Studies following the Effective Date and prior to the effective date of the assignment of the relevant Transferring Contract or Additional Study and, in each case, that
(ii) relate [***] to the Compounds or Products. 

  

	1.79	 “Option Patents” means those Patents that are owned by AstraZeneca or any of its
Affiliates as of the Effective Date and listed in Schedule 1.79 and any Patents at any time during the term of the Agreement claiming priority thereto or to any application from which such Patents have issued. 

 

	1.80	 “Ordinary Shares” has the meaning set forth in the Subscription Deed; 

 

	1.81	 “Parent Company Guarantee” means the guarantee entered into on even date herewith between
AstraZeneca and MBGP, pursuant to which MBGP agrees to guarantee Mereo’s obligations hereunder. 

  

	1.82	 “Party” and “Parties” have the meaning set forth in the preamble hereto.

  
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in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
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	1.83	 “Patents” means: (i) all national, regional and international patents and patent
applications, including provisional patent applications; (ii) all patent applications filed either from such patents, patent applications or provisional applications or from an application claiming priority from either of these, including
divisionals, continuations, continuations-in-part, provisionals, converted provisionals, non-provisionals, PCTs, and continued prosecution applications; (iii) any
and all patents that have issued or in the future issue from the foregoing patent applications ((i) and (ii)), including utility models, petty patents, innovation patents and design patents and certificates of invention; (iv) any and all
extensions or restorations by existing or future extension or restoration mechanisms, including revalidations, reissues, re-examinations and extensions (including any supplementary protection certificates and
the like) of the foregoing patents or patent applications ((i), (ii) and (iii)); and (v) any similar rights, including so-called pipeline protection or any importation, revalidation, confirmation or
introduction patent or registration patent or patent of additions to any of such foregoing patent applications and patents. 

  

	1.84	 “Payment” has the meaning set forth in Section 8.10.1. 

 

	1.85	 “Person” means an individual, sole proprietorship, partnership, limited partnership, limited
liability partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture or other similar entity or organization, including a government or political subdivision, department
or agency of a government. 

  

	1.86	 “[***]” means (i) a human clinical trial of a Product [***] (e.g.,
in the United States such clinical trial is conducted [***]) and to [***] in patients with the disease or condition being studied and to [***], for purposes of filing an NDA or MAA for Product, and that would satisfy the requirements under [***], or
(ii) any other clinical trial that is intended to establish [***], and to determine [***], which clinical trial is a [***] as evidenced by [***]. 

  

	1.87	 “[***]” has the meaning set forth in Section 8.3.3. 

 

	1.88	 “[***]” has the meaning set forth in Section 8.3.1. 

 

	1.89	 “[***]” has the meaning set forth in Section 8.3.2 

 

	1.90	 “[***]” means [***] or [***] or other [***] to the [***] of [***] (including an [***] of any
[***] of [***] or [***] and [***] instead of the [***] or [***] of a [***]). 

  

	1.91	 “[***] Success Payments” means the [***], the [***] and the [***]. As provided in
Section 2.1.3, within [***] days following the payment of all [***] Success Payments and the issuance of [***] and [***], Mereo shall have the right to exercise the Option. 

 

	1.92	 “[***]” means a study in patients [***]. 

 

	1.93	 “Product” means any product that is comprised of or contains a Compound, alone or in
combination with one (1) or more other API, in any and all forms, presentations, dosages and formulations. “Product” includes (a) a Product that includes as an API the 9668 Compound (a “9668 Product”)[***]. For
clarity, (i) the 9668 Product 

  
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[***] shall be considered different Products, (ii) all forms, presentations, dosages and formulations of the 9668 Product, and all combinations of the 9668 Product with one or more other
APIs, shall collectively be deemed to be one and the same Product, and (iii) [***]. 

  

	1.94	 “Product Agreement” means, with respect to a Product [***], any agreement entered into by and
between Mereo or any of its Affiliates or its or their Sublicensees, on the one hand and one (1) or more Third Parties, on the other hand, that is [***] for the Exploitation of such Product in the Field in the Territory, including (i) any
agreement pursuant to which Mereo, its Affiliates or its or their Sublicensees receives any license or other rights to Exploit such Product, (ii) supply agreements pursuant to which Mereo, its Affiliates or its or their Sublicensees obtain or
will obtain quantities of such Product, (iii) clinical trial agreements, (iv) contract research organization agreements and (v) service agreements. 

 

	1.95	 “Product Know-How” means the Option Know-How and the Related Know-How. 

  

	1.96	 “Product Intellectual Property” means the Option Intellectual Property and the Related Know-How. 

  

	1.97	 “Prosecuting Party” has the meaning set forth in Section 9.2.1. 

 

	1.98	 “Regulatory Approval” means, with respect to a country in the Territory, any and all approvals
(including Drug Approval Applications), licenses, registrations or authorizations of any Regulatory Authority necessary to distribute, market, sell or offer for sale a Product in such country, including, where applicable, (i) pricing or
reimbursement approval in such country, (ii) marketing authorizations (including any prerequisite Manufacturing approval or authorization related thereto) and (iii) labelling approval. 

 

	1.99	 “Regulatory Authority” means any applicable supra-national, federal, national, regional,
state, provincial or local regulatory agencies, departments, bureaus, commissions, councils or other government entities regulating or otherwise exercising authority with respect to the Exploitation of Compounds or Products in the Territory,
including the FDA in the United States and the EMA in the European Union (including any successor authority in respect of the United Kingdom). 

  

	1.100	 “Regulatory Documentation” means: all (i) applications (including all INDs and Drug
Approval Applications), registrations, licenses, authorizations and approvals (including Regulatory Approvals); (ii) correspondence and reports submitted to or received from Regulatory Authorities (including minutes and official contact reports
relating to any communications with any Regulatory Authority) and all supporting documents with respect thereto, including all adverse event files and complaint files; and (iii) clinical and other data contained or relied upon in any of the
foregoing; in each case ((i), (ii) and (iii)) relating to a Compound or a Product. 

  

	1.101	 “Related Know-How” means (i) any Information
which is owned or Controlled by AstraZeneca or any of its Affiliates as of the Effective Date as well as any Information which is owned or Controlled by AstraZeneca or any of its Affiliates under the Transferring Contracts and Additional Studies
following the Effective Date 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 11 

	 	
and prior to the effective date of the assignment of the relevant Transferring Contract or Additional Study and, in each case, that is (ii) reasonably necessary or intended for use in
connection with the Development or Exploitation of Product(s) in the Field in the Territory. Related Know-How excludes the Option Know-How and excludes [***].

  

	1.102	 “Remaining API” means all Compound API in AstraZeneca’s or its Affiliates’
possession or control which were not allocated as of the Effective Date for use in AstraZeneca’s then Ongoing Research Agreements, [***], provided that on the effective date of transfer of a given Ongoing Research Agreement to Mereo, the amount
of such Compound API required for such Ongoing Research Agreement shall become Remaining API always with the exception that [***] of [***] and [***]. 

  

	1.103	 “Retained Rights” mean, with respect to the Compounds and Products in the Field in the
Territory, the rights of AstraZeneca, its Affiliates and its and their licensors, (sub)licensees and contractors to perform its and their obligations under this Agreement. 

 

	1.104	 “Royalty Term” means, on a
Product-by-Product and country-by-country basis, the period beginning on the date of the
First Commercial Sale of such Product in such country and ending on the latest to occur of: (i) ten years from such First Commercial Sale or (ii) the expiration of the
last-to-expire Valid Claim of an Option Patent in such country that, if asserted against a Person, would, in the absence of a license, be sufficient to prevent the sale
or use by such Person of all Generic Versions of such Product in such country. 

  

	1.105	 “[***]” has the meaning set forth in clause 1.2 of the Subscription Deed.

  

	1.106	 “[***]” has the meaning set forth in clause 1.2 of the Subscription Deed.

  

	1.107	 “Senior Officer” means, with respect to AstraZeneca, [***] and with respect to Mereo,
[***].  

  

	1.108	 “Sublicensee” means a Person, other than an Affiliate, that is granted a sublicense by Mereo
or its Affiliate under the grants in Section 2.1, as provided in Section 2.2, but excluding any distributor, and which shall include any Person that is granted a licence under the Option Intellectual Property following Mereo’s
exercise of the Option. 

  

	1.109	 “Sublicensing Consideration” means [***] payments received by Mereo or its Affiliates from a
Sublicensee in consideration for the grant of a license, waiver from suit or equivalent rights under any Product Intellectual Property in the form of [***]; provided, however, Sublicensing Consideration does not include payments received by Mereo or
its Affiliates from Sublicensees for (a) the purchase of equity to the extent [***]) or issuance of debt instruments ([***]); (b) reimbursement for bona fide development expenses incurred by Mereo or its Affiliates (c) amounts received as
consideration for the grant of a license, sublicense, waiver from suit or equivalent rights under any technology or intellectual property other than the Product Intellectual Property, whether [***] or [***], based on a [***] taking into account the
relative value of the Product Intellectual Property and those other rights; (d) amounts received for supply of Compound, or Product to a Sublicensee for [***] the [***], or for the

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 12 

	 	
[***] of [***] (including for [***]) to the extent [***]; (e) reimbursement of the amount paid for [***] by Mereo, such as [***] or [***] to [***]; (f) any payments made to Mereo for Mereo’s
performance of services, including Development or Commercialization services. For clarity, any consideration received in connection with any merger, consolidation, acquisition, divestment or asset sale by Mereo or MBGP is not Sublicensing
Consideration hereunder. 

  

	1.110	 “Subscription Deed” means that certain ordinary shares subscription deed between MBGP and
AstraZeneca and dated as of the Effective Date. 

  

	1.111	 “Subscription Shares” shall have the meaning set forth in the Subscription Deed.

  

	1.112	 “Tax” or “Taxation” means any form of tax or taxation, levy, duty, charge,
social security charge, contribution, or withholding of whatever nature (including any related fine, penalty, surcharge or interest) imposed by, or payable to, a Tax Authority. 

 

	1.113	 “Tax Authority” means any government, state or municipality, or any local, state, federal or
other fiscal, revenue, customs or excise authority, body or official anywhere in the world, authorized to levy Tax. 

  

	1.114	 “Tech Transfer Support” has the meaning given in Section 4.1.1. 

 

	1.115	 “Tech Transfer Support Period” has the meaning set forth in Section 4.1.2.

  

	1.116	 “Term” has the meaning set forth in Section 14.1. 

 

	1.117	 “Termination Notice” has the meaning set forth in Section 14.2.1. 

 

	1.118	 “Territory” means world-wide. 

 

	1.119	 “[***]” has the meaning set forth in clause 1.2 of the Subscription Deed.

  

	1.120	 “[***]” has the meaning set forth in clause 1.2 of the Subscription Deed;

  

	1.121	 “Third Party” means any Person other than AstraZeneca, Mereo and their respective Affiliates.

  

	1.122	 “Third Party Claims” has the meaning set forth in Section 13.1. 

 

	1.123	 “Third Party Infringement Claim” has the meaning set forth in Section 9.4.

  

	1.124	 “Third Party Patent Right” has the meaning set forth in Section 9.6.

  

	1.125	 “Third Party Payments” means the aggregate of [***] payments (including for [***]) Mereo, its
Affiliates or Sublicensees pay directly to a Third Party for rights under patents or know-how controlled by such Third Party necessary for the manufacture, use or sale of Products. For avoidance of doubt,
[***] payments by Mereo, its Affiliates or Sublicensees for licenses to Patents or Information generated by the Ongoing Research Agreements or Additional Studies will be included in Third Party Payments. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 13 

	1.126	 “Top Line Data” means with respect to a clinical study, a summary of demographic data, the
data for the primary endpoint and a summary of safety data. 

  

	1.127	 “Top Line Data Date” means the date on which Mereo provides AstraZeneca with a copy of its Top
Line Data from the first [***] for a Product. 

  

	1.128	 “Transfer Activities” means those activities to be performed by AstraZeneca as set out in
Sections 3.1 and 4. 

  

	1.129	 “Transferring Assets” means those assets to be transferred by AstraZeneca to Mereo pursuant to
Section 3.1, as set forth on Schedule 1.129. 

  

	1.130	 “Transferring Contracts” means the Ongoing Research Agreements, each as set out in Schedule
1.129. 

  

	1.131	 “Transferring Regulatory Documentation” means Regulatory Documentation owned by AstraZeneca or
any of its Affiliates as of the Effective Date [***] related to the Product(s) in the Field in the Territory. 

  

	1.132	 “TUPE” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 of the
United Kingdom. 

  

	1.133	 “United Kingdom” means the United Kingdom and its territories and possessions.

  

	1.134	 “United States” or “U.S.” means the United States of America and its
territories and possessions (including the District of Columbia and Puerto Rico). 

  

	1.135	 “Valid Claim” means a claim of any issued and unexpired Patent whose validity, enforceability
or patentability has not been affected by (a) irretrievable lapse, abandonment, revocation, dedication to the public or disclaimer or (b) a holding, finding or decision of invalidity, unenforceability or
non-patentability by a court, governmental agency, national or regional patent office or other appropriate body that has competent jurisdiction, such holding, finding or decision being final and unappealable
or unappealed within the time allowed for appeal.  

  

	1.136	 “VAT” has the meaning set forth in Section 8.10.2. 

 

	2.	 GRANT OF RIGHTS 

 

	2.1	 Grants to Mereo 

Subject to the terms and conditions of this Agreement, AstraZeneca hereby grants to Mereo: 

 

	2.1.1	 subject to Section 2.3, an exclusive (even as to AstraZeneca and its Affiliates) license, with the right
to grant sublicenses in accordance with Section 2.2, under the Option Intellectual Property to Exploit the Compounds and Products in the Field in the Territory; 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 14 

	2.1.2	 a non-exclusive license, with the right to grant sublicenses in
accordance with Section 2.2, under the Related Know-How to Exploit the Compounds and Products in the Field in the Territory; and 

 

	2.1.3	 an exclusive option, exercisable any time within [***] days following: (i) payment by Mereo to AstraZeneca
of all [***] Success Payments; (ii) [***]; and (iii) [***], to require the transfer to Mereo of all right, title and interest of AstraZeneca and any of its respective Affiliates to the Option Intellectual Property (the “Option”) for
the consideration stated in Section 8, exercisable as follows: 

  

	 	(a)	 within the [***] day period referred to above in this Section 2.1.3, Mereo may provide AstraZeneca with
written notice that it desires AstraZeneca to transfer to Mereo all of AstraZeneca’s and its respective Affiliates’ right, title and interest of to the Option Intellectual Property; and 

 

	 	(b)	 effective upon the date AstraZeneca receives such notice (“Option Exercise Date”), AstraZeneca
shall cause its respective Affiliates to, grant, sell, transfer, convey, assign and deliver to Mereo, and Mereo shall accept from AstraZeneca or any of its respective Affiliates all of AstraZeneca and any of its respective Affiliates’ right,
title and interest of to, the Option Intellectual Property, including any and all rights to bring proceeding and obtain all remedies in respect of any infringement or unauthorized use of the Option Intellectual Property, irrespective of when such
infringement occurred or occurs (including prior to the Effective Date), by way of an assignment agreement to be agreed between the Parties acting reasonably. 

 

	 	(c)	 For clarity, if Mereo exercises the Option, the license granted in Section 2.1.1 will expire once all of
AstraZeneca’s and any of its respective Affiliates’ right, title and interest to the Option Intellectual Property has been sold, transferred, conveyed, assigned and delivered to Mereo (including the perfection of the relevant transfers),
but Mereo’s obligations under this Agreement shall continue, including Mereo’s obligation to make payments to AstraZeneca as set forth in Section 8. 

 

	2.2	 Sublicenses 

  

	2.2.1	 Mereo shall have the right to grant sublicenses (or licences or further rights of reference, as applicable),
through multiple tiers, under the licenses and rights granted in Section 2.1 (a) to its Affiliates upon notice to AstraZeneca but without consent and (b) to Third Party only with the prior written consent of AstraZeneca (not to be
unreasonably withheld), and provided that in each case such license or sublicense is consistent with the terms and conditions of this Agreement and provided that Mereo shall be liable for all acts or omissions of any Sublicensee that, if committed
by Mereo, would be a breach of any of the provisions of this Agreement. 

  

	2.2.2	 Mereo shall remain at all times responsible for the performance of its Affiliates and permitted Sublicensees
that are sublicensed as permitted herein and the grant of any such license or sublicense shall not relieve Mereo of its obligations under this Agreement, except to the extent such obligations are performed by such Sublicensee. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 15 

	2.3	 Retained Rights 

Mereo acknowledges and agrees that AstraZeneca retains the right for AstraZeneca or its Affiliates to enter into the Additional Studies solely
as set out in Section 5.6 and Mereo hereby grants to AstraZeneca a non-exclusive license, with the right to grant sublicenses in accordance with Section 2.2, expiring upon the assignment of the
relevant agreement to Mereo in accordance with Section 5.6, under the Option Intellectual Property solely to the extent required to perform research, pre-clinical and other
non-clinical testing pursuant to the agreements governing the conduct of the Additional Studies, in each case as [***] in accordance with Section 5.6.1. 

 

	2.4	 No Other Rights Granted by AstraZeneca 

Except as expressly provided herein, neither AstraZeneca or any of its Affiliates grants any other right or license, including any rights or
licenses to the Product Intellectual Property or any other Patent or other intellectual property rights. 
  

	2.5	 Non-Compete 

For a period of three (3) years following the Effective Date, AstraZeneca shall not and shall cause its Affiliates not to
(a) directly or indirectly Commercialize or Develop any Competitive Product in the Territory or (b) [***] to Commercialize or Develop any Competitive Product in the Territory. AstraZeneca agrees that this Section 2.5 is reasonable and
necessary to protect Mereo’s legitimate business interest. AstraZeneca will not, during the Term, [***]. The Parties agree that, in the event that a court of competent jurisdiction determines that this Section 2.5 is unenforceable as
written, the court should enforce this Section 2.5 to render it valid and enforceable to the maximum extent possible. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 16 

	2.6	 Non-Assert 

AstraZeneca hereby covenants and agrees that it shall not, and shall cause that its Affiliates do not, sue, or support or encourage any Third
Party in suing, any Mereo Party claiming that the manufacture, having manufactured, use, distribution, sale, offering for sale, or importation of any Product or any component thereof permitted under this Agreement for sale in the Territory as of or
after the Effective Date infringes or misappropriates any intellectual property rights AstraZeneca and / or its Affiliates may have in or to the Products. AstraZeneca shall impose the foregoing covenant not-to-sue on (i) its Affiliates and (ii) any Third Party to which AstraZeneca or any of its Affiliates may assign, exclusively license or [***] to the foregoing intellectual property rights. The
Parties expressly agree and intend that the covenants and agreements set forth in this Section 2.6 shall run with such intellectual property right, as a covenant appurtenant, and shall continue and be binding on any successor-in-interest to such intellectual property right. For the purposes of this Section 2.6, “Mereo Party” means (a) Mereo and its Affiliates, and
(b) Mereo’s and its Affiliates’ licensees, sublicensees, suppliers, distributors, importers, contractors, direct or indirect customers (including without limitation [***]), and manufacturers of the Products, in each case to the extent
that such party makes, has made, uses, distributes, sells, offers for sale, or imports the products (or components thereof) referenced above in the Territory for Mereo or its Affiliates in accordance with this Section 2. 

 

	3.	 TRANSFER OF ASSETS, MATERIALS 

 

	3.1	 Transferring Assets. 

Subject to Section 5.5, on the Effective Date, in accordance with the terms and conditions of this Agreement, for the consideration stated
in Section 8, AstraZeneca shall and hereby does, and shall cause its respective Affiliates to, grant, sell, transfer, convey, assign and deliver to Mereo, and Mereo shall accept from AstraZeneca or any of its respective Affiliates, as of the
Effective Date, all right, title and interest of AstraZeneca and any of its respective Affiliates to the Transferring Assets. 
  

	3.2	 Remaining API 

AstraZeneca hereby agrees, and shall cause its respective Affiliates, to grant, sell, transfer, convey, assign and deliver to Mereo, and Mereo
shall accept from AstraZeneca or any of its respective Affiliates the Remaining API. AstraZeneca shall deliver all quantities of the Remaining API to its or its nominated designee’s facility [***] within [***]. The Parties agree that:
(i) such Remaining API shall be used solely for the Development of the Compounds or Products pursuant to this Agreement; and (ii) such Remaining API shall not be made available by Mereo to any Third Party except as expressly consented to
in writing by AstraZeneca, provided that Mereo may make such Remaining API available to a subcontractor or Sublicensee of Mereo. WITHOUT PREJUDICE TO SECTION 11.2, MEREO AGREES THAT ALL SUCH REMAINING API IS PROVIDED “AS IS” AND WITHOUT
ANY WARRANTIES, EXPRESS OR IMPLIED. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 17 

	3.3	 Materials 

Notwithstanding Sections 3.1 and 3.2, the Parties agree that Mereo shall [***] to source all materials (including API) necessary for the
Development, Commercialization and Manufacture of Products from a Third Party. AstraZeneca shall provide Mereo and such Third Party supplier(s) with reasonable assistance in connection with the qualification, validation and onboarding of such Third
Party supplier during the Tech Transfer Support Period [***], and following the expiry of such period, [***] (a) [***] of [***] to [***] such [***] at the [***] and (b) [***] and [***] in [***], in each case as [***] in [***] the [***]. 

 

	3.4	 TUPE 

Notwithstanding the transfer of the Transferring Assets, each Party confirms that it does not consider TUPE will apply to the commencement or
termination of this Agreement or to the transactions contemplated hereby. 
  

	4.	 TECHNOLOGY TRANSFER 

 

	4.1	 Transfer Activities 

 

	4.1.1	 In addition to its obligations under Section 3.2, AstraZeneca will provide reasonable access to and make
its qualified and technical personnel with knowledge of the research and development of the Compounds, as reasonably required to assist with the transfer of such Product Know-How, reasonably available to Mereo
in person at AstraZeneca’s facilities or by teleconference during normal business hours to (a) facilitate the transfer of Product Know-How in accordance with Section 4.1.3 and the Transferring
Assets and (b) assist Mereo in familiarizing its personnel with any intellectual property comprised in the Transferred Assets ((a) and (b) together being the Tech Transfer Support”). Representatives of AstraZeneca and Mereo
shall meet in person or by teleconference as reasonably required, to facilitate the timely and efficient transfer of knowledge and technology. 

  

	4.1.2	 AstraZeneca shall provide Mereo with the Tech Transfer Support for a period of [***] months following the
Effective Date (the “Tech Transfer Support Period”) provided that: (a) [***] for the [***] of the [***] of [***] by [***]; and, (b) [***] the [***] of [***] to [***] (a), [***] by [***] at [***] (i) [***] of [***] to [***]
such [***] at the [***] and (ii) [***] and [***] in connection therewith, in each case as agreed [***]. 

  

	4.1.3	 AstraZeneca shall make available and deliver to Mereo all documented then existing Product Know-How in AstraZeneca’s possession that has not previously been provided hereunder no later than [***] days after the Effective Date, and thereafter no later than [***] days after the creation of the relevant
Option Know-How, [***]. 

  

	5.	 DEVELOPMENT ACTIVITIES 

 

	5.1	 Diligence 

After the Effective Date and after completion of relevant Transfer Activities, Mereo shall be solely responsible for all aspects of the
Development of the Compounds and Products in the Field in the Territory. Mereo shall use Commercially Reasonable Efforts to Develop and obtain and maintain Regulatory Approvals for a Product for use in the Field in the Territory. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 18 

	5.2	 Development Costs 

Mereo shall be responsible for all of its costs and expenses in connection with the Development of, and obtaining and maintaining Regulatory
Approvals for, the Products in the Field in the Territory. 
  

	5.3	 Development Records 

Mereo shall, and shall cause its Affiliates and its and their Sublicensees to, maintain, in good scientific manner, complete and accurate books
and records pertaining to Development of Products hereunder, in sufficient detail to verify compliance with its obligations under this Agreement. Such books and records shall be retained by Mereo for at least [***] years after the expiration or
termination of this Agreement in its entirety or for such longer period as may be required by Applicable Law. 
  

	5.4	 Development Reports 

Within [***] days following the end of each [***] during the Development Report Period, Mereo shall provide AstraZeneca with a written summary
of the Development activities it has performed, or caused to be performed, since the preceding report, its Development activities in process and the future activities it expects to initiate during the following [***] month period. Each such report
shall contain information to enable AstraZeneca to assess Mereo’s compliance with its obligations set forth in Section 5.1 
  

	5.5	 Ongoing Research Agreements 

 

	5.5.1	 Within [***] days following the Effective Date, AstraZeneca shall [***], and cause its Affiliates to [***], to
assign all of its right, title and interest in and to the Ongoing Research Agreements to Mereo by way of an assignment and assumption agreement to be agreed between the Parties acting reasonably unless, with respect to any such Ongoing Research
Agreements, such Ongoing Research Agreements do not permit such assignment, in which case AstraZeneca (or such Affiliate) shall cooperate with Mereo in all reasonable respects to negotiate a novation agreement with such Third Party in a form
reasonably acceptable to Mereo in respect of such Ongoing Research Agreement, provided that [***], and if any such novation cannot be obtained with respect to an Ongoing Research Agreement, AstraZeneca shall use good faith efforts, and cause its
Affiliates to use good faith efforts, to obtain for Mereo [***] of the practical benefit and burden under such Ongoing Research Agreement, including by [***] and for the account of Mereo, any and all rights of AstraZeneca (or such Affiliate) against
the other party thereto arising out of the breach or cancellation thereof by such other party or otherwise. AstraZeneca shall keep Mereo reasonably informed as to the status of any such transfer and shall reasonably take into account any comments
made by Mereo. 

  

	5.5.2	 In the event that any intellectual property rights are created under the Ongoing Research Agreements that fall
within the definition of Option Intellectual Property, then, in the event such Ongoing Research Agreements have not been assigned to Mereo pursuant to Section 5.5.1 above, AstraZeneca shall use [***], and shall cause its Affiliates to [***] to,
within [***] days following the creation thereof, assign all of its right, title and interest in and to such intellectual property rights to Mereo, by way of an assignment agreement to be agreed between the Parties acting reasonably.

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 19 

	5.6	 Additional Studies 

 

	5.6.1	 The Parties recognize that AstraZeneca or its Affiliates are currently in the process of negotiating or have
recently executed certain Additional Studies with potential Third Party partners in relation to the Compounds. Following the Effective Date, AstraZeneca shall keep Mereo informed as to the negotiation status of such Additional Studies, if
applicable, and shall [***], including by [***] Following the conclusion of such negotiations, if applicable, AstraZeneca or its Affiliates or Mereo, as agreed between the Parties, shall enter into agreements governing the conduct of such Additional
Studies, provided that [***] 

  

	5.6.2	 Following the later of (a) the Effective Date or (b) the date of execution of the agreement governing
an Additional Study, AstraZeneca shall promptly provide Mereo with fully executed copies of the relevant agreements and provide such information as Mereo reasonably requires relating thereto. 

 

	5.6.3	 Following the execution of any agreements described in Section 5.6 governing Additional Studies, such
agreements shall be promptly assigned by AstraZeneca to Mereo by way of an assignment and assumption agreement to be agreed between the Parties acting reasonably and Mereo, following such assignment, shall assume AstraZeneca’s rights,
obligations and liabilities thereunder occurring from and after the assignment date. 

  

	5.6.4	 Following any such assignment: 

 

	 	(a)	 Mereo shall be the sponsor for the applicable clinical trials and studies under such Additional Studies;

  

	 	(b)	 AstraZeneca shall agree in writing to provide directly to Mereo available compound and drug product for such
Additional Studies, to the extent the same are in AstraZeneca’s possession as of the date of execution of agreements governing the conduct of the Additional Studies described in Section 5.6. Except as provided in the immediately preceding
sentence, AstraZeneca shall have no further obligation to manufacture or procure the manufacture of relevant compound or drug product thereafter and any such obligations under the Applicable Studies shall pass to Mereo; 

 

	 	(c)	 Any funding obligations under the Additional Studies shall, as between the Parties, be assumed by and be the
responsibility of [***]; and 

  

	 	(d)	 AstraZeneca shall have no rights relating to such Additional Studies, including any rights to any resulting
clinical data or intellectual property rights. 

  

	6.	 REGULATORY ACTIVITIES 

 

	6.1	 Regulatory Approvals 

Subject to the Retained Rights, Mereo shall have the sole right to prepare, obtain and maintain Drug Approval Applications (including the
setting of the overall regulatory strategy therefor), other Regulatory Approvals and other submissions (including INDs) and to conduct communications with the Regulatory Authorities, for Products in the Field in the Territory in its name. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 20 

	6.2	 Recalls, Suspensions or Withdrawals 

Prior to exercise of the Option pursuant to Section 2.1.3, Mereo shall notify AstraZeneca following its determination that any event,
incident or circumstance has occurred that may result in the need for a recall, market suspension or market withdrawal of a Product in the Field in the Territory and shall include in such notice the reasoning behind such determination and any
supporting facts. As between the Parties, Mereo shall have the right to make the final determination whether to voluntarily implement any such recall, market suspension or market withdrawal in the Field in the Territory. If a recall, market
suspension or market withdrawal is mandated by a Regulatory Authority in the Territory, as between the Parties, Mereo shall initiate such a recall, market suspension or market withdrawal in compliance with Applicable Law. For all recalls, market
suspensions or market withdrawals undertaken pursuant to this Section 6.2, as between the Parties, Mereo shall be solely responsible for the execution thereof. For clarity, on or after the exercise of the Option pursuant to Section 2.1.3,
Mereo shall have the sole right and obligation to determine whether to implement any recall, market suspension or market withdrawal in the Field in the Territory and Mereo shall be solely responsible for the execution thereof and shall be under no
obligation to notify AstraZeneca thereof. Mereo shall be responsible for all costs of any recall, market suspension or market withdrawal, except in the event and to the extent that a recall, market suspension or market withdrawal resulted from
AstraZeneca’s or its Affiliate’s breach of its obligations hereunder or from such AstraZeneca’s or its Affiliate’s fraud, gross negligence or willful misconduct, in which case, AstraZeneca shall bear the expense of such recall,
market suspension or market withdrawal. 
  

	6.3	 Global Safety Database 

Mereo shall establish, hold and maintain (at Mereo’s sole cost and expense) the global safety database for Products as required under
Applicable Law. Mereo shall provide AstraZeneca with such safety information, including adverse event reports, relating to the Products as AstraZeneca reasonably requires, including to enable AstraZeneca to respond to a request from any applicable
Regulatory Authority. To the extent that AstraZeneca requires Mereo to provide AstraZeneca with safety information that constitutes personal data under Applicable Laws relating to privacy pursuant to this Section 6.3, the Parties will agree on
reasonable terms for such disclosure in order to ensure compliance with the requirements of Applicable Laws relating to privacy on each Party. 
  

	7.	 COMMERCIALIZATION 

 

	7.1	 Diligence 

As between the Parties, Mereo shall be solely responsible for Commercialization of the Products in the Field throughout the Territory at
Mereo’s own cost and expense. Mereo shall use Commercially Reasonable Efforts to Commercialize the Products throughout the Territory. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 21 

	7.2	 Commercialization Costs; Booking of Sales; Distribution 

Except as otherwise provided in this Agreement, as between the Parties Mereo shall be responsible for all costs and expenses in connection with
the Commercialization of the Products in the Field in the Territory. Mereo shall invoice and book sales, establish all terms of sale (including pricing and discounts) and warehouse and distribute the Products in the Field in the Territory and
perform or cause to be performed all related services. Mereo shall handle all returns, recalls or withdrawals, order processing, invoicing, collection, distribution and inventory management with respect to the Products in the Territory. 

 

	7.3	 Commercialization Records 

Mereo shall maintain complete and accurate books and records pertaining to Commercialization of Products hereunder, in sufficient detail to
verify compliance with its obligations under this Agreement and which shall be in compliance with Applicable Law and properly reflect all work done and results achieved in the performance of its Commercialization activities. Such records shall be
retained by Mereo for at least [***] years after the expiration or termination of this Agreement in its entirety or for such longer period as may be required by Applicable Law. 

 

	7.4	 Commercialization Reports 

Without limiting Section 5.4, within [***] days following the end of each [***], during the Royalty Term, Mereo shall provide to
AstraZeneca a written summary of the Commercialization activities it has performed, or caused to be performed, including a summary of all relevant financial data relating to such activities since the preceding report. 

 

	8.	 PAYMENTS AND RECORDS 

 

	8.1	 Upfront Payment 

In partial consideration of the rights granted by AstraZeneca to Mereo hereunder, Mereo shall within [***] of the Effective Date make a non-refundable and non-creditable cash payment to AstraZeneca equal to three million US Dollars (USD$3,000,000). 

 

	8.2	 Issue of Loan Notes 

 

	8.2.1	 In partial consideration of the rights granted by AstraZeneca to Mereo hereunder, Mereo will issue to MBGP:

  

	 	(a)	 Loan Note 1 within [***] days of the Effective Date; 

 

	 	(b)	 Loan Note 2 no later than the date upon which the [***] becomes due and payable pursuant to Section [***] (or,
if earlier, no later than the date of any [***]); and 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 22 

	 	(c)	 Loan Note 3 no later than the date upon which the [***] becomes due and payable pursuant to Section [***] (or,
if earlier, no later than the date of any [***]).  

  

	8.2.2	 Loan Note 1, Loan Note 2 and Loan Note 3 shall constitute the consideration for the allotment and issue of the
Subscription Shares to be subscribed for by, and issued credited as fully paid to, AstraZeneca pursuant to clauses 2.1, 2.2 and 2.3, respectively, of the Subscription Deed. Mereo shall issue the Loan Notes on such terms as enable MBGP to credit the
Subscription Shares as fully paid on their allotment and issue to AstraZeneca in accordance with the terms of the Subscription Deed. 

  

	8.3	 [***] Success Payments 

In partial consideration of the rights granted by AstraZeneca to Mereo hereunder, Mereo shall make the following
one-time payments to AstraZeneca as follows, for the first of the 9668 Product [***] to satisfy such milestone event: 
  

	8.3.1	 within [***] days of Mereo or its Affiliate [***] to [***] that the first [***] for the first Product has
achieved [***], Mereo shall make a non-refundable cash payment to AstraZeneca of [***] US Dollars (USD[***], subject to adjustment pursuant to Section 8.15.1 (“[***]”); and

  

	8.3.2	 within [***] days of [***] by Mereo or its Affiliates of the [***] the first [***] for the first Product that
(i) [***]) [***] with [***] or other [***] such as [***] of [***] that would [***] the [***] of a [***]; or (ii) [***] is [***] for [***] to [***] the [***] for such Product, Mereo shall make a
non-refundable cash payment to AstraZeneca of [***] US Dollars (USD[***] (“[***]”), provided that in the event that [***] that such [***] is [***] for [***] to [***] the [***] for such [***]
and subsequently [***] the [***] for such [***] then [***] shall [***] within [***] days following [***]; and 

  

	8.3.3	 within [***] days of Mereo or its Affiliates [***] of the first [***] for the first Product, Mereo shall make a
non-refundable cash payment to AstraZeneca of [***] US Dollars (USD[***], subject to adjustment pursuant to Section 8.15.2 (“[***]”). 

As set forth in Section 2.1.3, within [***] days following the [***] and the [***], Mereo shall have the right to exercise the
Option.  

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 23 

	8.4	 Milestones 

  

	8.4.1	 Regulatory Milestones  

 

	 	(a)	 In partial consideration of the rights granted by AstraZeneca to Mereo hereunder, Mereo shall pay to
AstraZeneca the following payments within [***] days after the achievement of each of the following milestone events with respect to the first Product to reach such milestone event only (unless otherwise provided below), which amounts shall be fully
earned upon the achievement of the applicable milestone event: 

  

					
	 Regulatory Milestone
	  	Amount	 
	 [***]
	  	 	[***]	 
	 [***]
	  	 	[***]	 
	 [***]
	  	 	[***]	 
	 [***]
	  	 	[***]	 
	 [***]
	  	 	[***]	 
	 [***]
	  	 	[***]	 
	 [***]
	  	 	[***]	 
	 [***]
	  	 	[***]	 
	 [***]
	  	 	[***]	 
	 [***]
	  	 	[***]	 
	 TOTAL:
	  	 	[***]	 

 For the second (2nd) Indication for which a milestone is
achieved for a Product, a milestone payment shall be due but shall be reduced to [***] of the milestone amounts set forth in the table above. For the third (3rd) Indication for which a milestone
is achieved for a Product, a milestone payment shall be due but shall be reduced to [***] of the milestone amounts set forth in the table above. 

For clarity, for purposes of the payments due under this Section 8.4.1, the 9668 Product [***] shall be considered different Products.

 Each milestone in this Section 8.4.1 shall be payable on a
Product-by-Product basis based on the first achievement of such milestone for the applicable Product (subject to the paragraph immediately following the table above).

  

	8.4.2	 Sales Milestones 

In partial consideration of the rights granted by AstraZeneca to Mereo hereunder, Mereo shall pay to AstraZeneca the following one-time payments, which shall be fully earned upon the first achievement of the applicable milestone event for each of the 9668 Product [***]: 

 

					
	 Sales Milestone
	  	Amount	 
	 [***]
	  	 	[***]	 
	 [***]
	  	 	[***]	 
	 [***]
	  	 	[***]	 
	 TOTAL PER PRODUCT:
	  	 	[***]	 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 24 

 If in a given Calendar Year more than one (1) of the milestone events set forth in the
immediately preceding table is achieved, Mereo shall pay to AstraZeneca a separate milestone payment with respect to each such threshold that is exceeded in such Calendar Year. Each such milestone payment shall be due within [***] days of the date
the milestone was achieved. Each milestone payment in this Section 8.4.2 shall be payable only upon the first achievement of such milestone in a given Calendar Year and no amounts shall be due for subsequent or repeated achievements of such
milestone in subsequent Calendar Years. 
  

	8.4.3	 Determination that Milestones Have Occurred 

Mereo shall notify AstraZeneca promptly of the achievement of each of the events identified as a milestone in Section 8.4.1 or
Section 8.4.2. In the event that, notwithstanding the fact that Mereo has not provided AstraZeneca such a notice, AstraZeneca believes that any such milestone has been achieved, it shall so notify Mereo in writing and the Parties shall promptly
meet and discuss in good faith whether such milestone has been achieved. Any dispute under this Section 8.4.3 regarding whether or not such a milestone has been achieved shall be subject to resolution in accordance with Section 16.6. 

 

	8.5	 Royalties 

  

	8.5.1	 Royalty Rates 

As further consideration for the rights granted to Mereo hereunder, commencing upon the First Commercial Sale of a Product in the Territory,
Mereo shall pay to AstraZeneca a royalty on Net Sales with respect to each Product in each country in the Territory on a Product-by-Product and country-by-country basis during each Calendar Year at the following rates: 
  

					
	 That portion of aggregate Net Sales of the Product in the Territory during a given Calendar Year
that is:
	  	 	Percentage	 
	 less than or equal to [***] US Dollars (USD$[***]).
	  	 	[***	]% 
	 greater than [***] US Dollars (USD$[***]) but less than or equal to [***] US Dollars
(USD$[***]).
	  	 	[***	]% 
	 greater than [***] US Dollars (USD$[***]) but less than or equal to [***] US Dollars
(USD$[***]).
	  	 	[***	]% 
	 greater than [***] US Dollars (USD$[***]) but less than or equal to [***] US Dollars
(USD$[***]).
	  	 	[***	]% 
	 greater than [***] US Dollars (USD$[***]).
	  	 	[***	]% 

 No multiple royalties will be payable to AstraZeneca because a Product is covered by more than one Valid Claim
in any Option Patent. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 25 

	8.5.2	 Royalty Term 

Mereo shall have no obligation to pay any royalty with respect to Net Sales of any Product in any country after the Royalty Term for such
Product in such country has expired. Upon the expiration of the Royalty Term with respect to a Product in any country, the license grants to Mereo in Section 2.1, as applicable, with respect to such Product shall become fully paid-up with respect to such country. 
  

	8.5.3	 Reductions 

  

	 	(a)	 If during the Royalty Term, on a
country-by-country and Product by Product basis, such Product ceases to be Covered by a Valid Claim in the country of manufacture, use, sale, offer for sale or import
but does contain, incorporate or use any Product Know-How, the applicable royalty rate will thereafter be reduced to [***] of the applicable royalty rate set forth in Section 8.5. 

 

	 	(b)	 If during the Royalty Term, on a
country-by-country and Product by Product basis, one (1) or more Generic Versions of the Product are marketed and sold in such country in a given [***] during the
Royalty Term, and such that Generic Versions of the Product sold in such country equal or exceed in the aggregate [***] of the total units sold of such Product or Generic Version(s) in such country, then the royalty rate for such Product in such
country will thereafter be reduced to [***] of the applicable royalty rate set forth in Section 8.5 for so long as such reduction in units sold persists. 

 

	 	(c)	 If during the Royalty Term, Mereo pays Third Party Payments with respect to a Product, Mereo may credit [***]
of such Third Party Payments paid against the royalties otherwise due to AstraZeneca on the Net Sales of that particular Product in that [***]; provided, however that the royalties paid to AstraZeneca on such Net Sales after application of such
credit shall not be less than [***] of those otherwise due above without such credit. Such credit for Third Party Payments allowed hereunder shall apply on a [***] basis, provided that Mereo shall be entitled to carry forward any amount of Third
Party Payments which it is not entitled to credit from the royalties due to AstraZeneca in accordance with this Section 8.5.3 by reason of such limitation from one (1) Calendar Year to the following Calendar Year until such amount is fully
credited. 

  

	8.6	 Royalty Payments and Reports 

Mereo shall calculate all amounts payable to AstraZeneca pursuant to Section 8.5 at the end of each Calendar Quarter, which amounts shall
be converted to United States Dollars, in accordance with Section 8.7. Mereo shall pay to AstraZeneca the royalty amounts due with respect to a given Calendar Quarter within [***] days after the end of such Calendar Quarter. Each payment of
royalties due to AstraZeneca shall be accompanied by a statement specifying the amount of Net Sales and deductions taken to arrive at Net Sales attributable to each Product in each country the Territory during the applicable Calendar Quarter
(including such amounts expressed in local currency and as converted to United States Dollars using the Currency Conversion Policy and a calculation of the amount of royalty payment due on such Net Sales for such Calendar Quarter. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 26 

	8.7	 Maximum deduction 

The maximum cumulative royalty reduction pursuant to Section 8.5.3 shall not in any circumstances exceed [***] in any [***]. 

 

	8.8	 Mode of Payment 

 

	8.8.1	 All payments to AstraZeneca under this Agreement shall be made in Dollars. All amounts payable to AstraZeneca
pursuant to Section 8.5 shall be made in United States Dollars. All payments to AstraZeneca under this Agreement shall be made by deposit in the requisite amount to such bank account as AstraZeneca may from time to time designate by notice to
Mereo. 

  

	8.8.2	 Other than in respect of amounts payable to AstraZeneca pursuant to Section 8.5, for the purpose of
calculating any sums due under, or otherwise reimbursable pursuant to, this Agreement, Mereo shall convert any amount expressed in a foreign currency into Dollar equivalents using the Currency Conversion Policy. For the purpose of calculating any
sums payable to AstraZeneca pursuant to Section 8.5 (including the calculation of Net Sales expressed in currencies other than United States Dollars), Mereo shall convert any amount expressed in a foreign currency into United States Dollars
equivalents the Currency Conversion Policy. 

  

	8.9	 Sublicensing Consideration [***] 

 

	8.9.1	 If Mereo sublicenses a Product to a Third Party (other than AstraZeneca) at any time then Mereo shall pay
AstraZeneca [***] of all Sublicensing Consideration received pursuant to such sublicense. 

  

	8.9.2	 Mereo shall not, and shall not permit its Affiliates to, [***] any Sublicensing Consideration, enter into any
agreement with a Sublicensee under which the payments thereunder are (a) [***] and (b) [***].  

  

	8.10	 Taxes 

  

	8.10.1	 General 

All payments required to be made pursuant to this Agreement (each, a “Payment”) shall be paid free and clear of any deduction
or withholding for or on account of Tax, except for any withholding or deduction required by Applicable Law. Except as provided in this Section 8.10, AstraZeneca shall be solely responsible for paying any and all taxes (other than withholding
taxes required by Applicable Law to be deducted from Payments) levied on account of, or measured in whole or in part by reference to, any Payments it receives. Mereo shall deduct or withhold from the Payments any Taxes that it is required by
Applicable Law to deduct or withhold. Notwithstanding the foregoing, if AstraZeneca is entitled under any applicable tax treaty to a reduction of the rate of, or the elimination of, applicable withholding tax, it may deliver to Mereo or the
appropriate governmental authority (with the assistance of Mereo to the extent that this is reasonably required and is requested in writing) the prescribed forms necessary to reduce the applicable rate of withholding or to relieve Mereo of its
obligation to withhold such Tax and Mereo shall apply the reduced rate of withholding or dispense with withholding, as the case may be; provided that Mereo has received evidence of AstraZeneca’s delivery of all applicable forms (and, if 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 27 

 necessary, Mereo’s receipt of appropriate governmental authorization) at least [***] days
prior to the time that the Payments are due. If, in accordance with the foregoing, Mereo withholds any amount, it shall pay to AstraZeneca the balance when due, make timely payment to the proper taxing authority of the withheld amount and send to
AstraZeneca proof of such payment within [***] days following such payment. Notwithstanding the foregoing, in the event a Party assigns its rights or obligations under this Agreement or otherwise makes Payments from a jurisdiction other than the
jurisdiction in which such party is organised (each an “Assignment”), and immediately after such Assignment the amount of Tax Deductions in respect of any Payment it makes are greater than the amount of Tax Deductions that would have been
required by Applicable Law absent such Assignment, then such increased Tax shall be borne by the party making such Assignment. 
  

	8.10.2	 Value Added Tax 

Notwithstanding anything contained in Section 8.10.1, this Section 8.10.2 shall apply with respect to value added tax
(“VAT”). All Payments are exclusive of VAT. If any VAT is chargeable in respect of any Payments and AstraZeneca is required to account to the relevant Tax Authority for that VAT, Mereo shall pay an amount equal to the VAT at the
applicable rate in respect of any such Payments following the receipt of a VAT invoice in the appropriate form issued by AstraZeneca in respect of those Payments. The Parties shall issue invoices for all goods and services supplied under this
Agreement consistent with VAT requirements, and to the extent any invoice is not initially issued in an appropriate form, shall cooperate and provide such information or assistance as may be reasonably necessary to enable the issuance of such
invoice consistent with VAT requirements. 
  

	8.11	 Interest on Late Payments 

If any payment due to either Party under this Agreement is not paid when due, then such paying Party shall pay interest thereon (before and
after any judgment) at an annual rate (but with interest accruing on a daily basis) equal to the greater of: (i) the United States prime rate of interest as reported by Citibank, New York, New York, as of the date such payment was due and
payable, plus [***], and (ii) the maximum applicable legal rate of interest, such interest to run from the date on which payment of such sum became due until payment thereof in full. 

 

	8.12	 Financial Records 

Mereo shall and shall cause its Affiliates and its and their Sublicensees to, keep complete and accurate financial books and records pertaining
to the Commercialization of Products hereunder, including books and records of Invoiced Sales and Net Sales of Products, in sufficient detail to calculate and verify all amounts payable hereunder. Mereo shall and shall cause its Affiliates and its
and their Sublicensees to, retain such books and records until the later of (i) [***] years after the end of the period to which such books and records pertain, (ii) the expiration of the applicable tax statute of limitations (or any extensions
thereof) and (iii) for such period as may be required by Applicable Law. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 28 

	8.13	 Audit 

At the request of AstraZeneca, Mereo shall and shall cause its Affiliates and its and their Sublicensees to, permit an independent auditor
designated by AstraZeneca and reasonably acceptable to Mereo, at reasonable times and upon reasonable notice, no more than once per Calendar Year, to audit the books and records maintained pursuant to Section 8.12 relating to the preceding
[***] Calendar Years only, solely for the purposes of ensuring the accuracy of the reports and payments made hereunder. An audit shall not cover any time period previously audited. Except as provided below, the cost of this audit shall be borne by
AstraZeneca, unless the audit reveals, with respect to a period, an underpayment of amounts due hereunder of more than [***] from the reported amounts for such period, in which case Mereo shall bear [***] costs of the audit. Unless disputed pursuant
to Section 8.14 below, if such audit concludes that (i) additional amounts were owed by Mereo, Mereo shall pay the additional amounts or (ii) excess payments were made by Mereo, AstraZeneca shall reimburse such excess payments, in
either case ((i) or (ii)), within [***] days after the date on which such audit is completed by AstraZeneca. Mereo may require the auditor to sign a customary non-disclosure agreement before providing access
to its books and records. 
  

	8.14	 Audit Dispute 

In the event of a dispute with respect to any audit under Section 8.13, AstraZeneca and Mereo 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 [***] days, the dispute shall be submitted for resolution to one (1) of the big four (4) public accounting firms, jointly selected
by each Party’s certified public accountants or to such other Person as the Parties shall mutually agree (the “Auditor”). The decision of the Auditor shall be final and the costs of such arbitration as well as the initial audit
shall be borne between the Parties in such manner as the Auditor shall determine. Not later than [***] days after such decision and in accordance with such decision, Mereo shall pay the additional amounts or AstraZeneca shall reimburse the excess
payments, as applicable. 
  

	8.15	 Adjustment of [***] Success Payments 

 

	8.15.1	 In partial consideration of the rights granted by AstraZeneca to Mereo hereunder, in the event that after the
date of this Agreement and before the [***], which has a [***] to the [***], the [***] by [***] to the [***] of the [***] or [***] that [***] of the [***] in the [***] on the [***] for the [***] or [***]. 

 

	8.15.2	 In partial consideration of the rights granted by AstraZeneca to Mereo hereunder, in the event that after the
date of this Agreement and before the [***], which has a [***] to the [***], the [***] by an [***] to the [***] of the [***] or [***] that [***] of the [***] in the [***] on the [***] for the [***] or [***]. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 29 

	9.	 INTELLECTUAL PROPERTY 

 

	9.1	 Ownership of Intellectual Property 

 

	9.1.1	 Ownership of Inventions 

Subject to Section 9.1.2, as between the Parties, each Party shall own all right, title and interest in and to any and all Inventions that
are conceived, discovered, developed or otherwise made by or on behalf of such Party or its Affiliates or its or their (sub)licensees (or Sublicensee(s)), as applicable, under or in connection with this Agreement, whether or not patented or
patentable and any and all Patents and other intellectual property rights with respect thereto. 
  

	9.1.2	 United States Law 

The determination of whether Inventions are conceived, discovered, developed or otherwise made by a Party for the purpose of allocating
proprietary rights (including Patent, copyright or other intellectual property rights) therein, shall, for purposes of this Agreement, be made in accordance with Applicable Law in the United States as such law exists as of the Effective Date
irrespective of where such conception, discovery, development or making occurs. The Parties shall jointly own any Inventions and intellectual property rights therein that are made, conceived, reduced to practice, authored, or otherwise discovered
jointly by the Parties or any of their employees, Affiliates, licensees, Sublicensees (where permitted), independent contractors, or agents, whether simultaneously or successively, including any Patent on such jointly owned Invention. Each Party
shall have the right to use and license jointly owned Inventions and all intellectual property rights therein for any and all purposes without the need to account to or seek permission from the other Party (subject, in all cases, to any other
applicable terms of this Agreement); provided, however, that for clarity, the foregoing shall not be construed as granting or conveying to either Party any license or other rights to the other Party’s other intellectual property rights, unless
otherwise expressly set forth in this Agreement. 
  

	9.1.3	 Assignment Obligation 

Each Party shall cause all Persons who perform activities for such Party under this Agreement or who conceive, discover, develop or otherwise
make any Inventions by or on behalf of either Party or its Affiliates or its or their (sub)licensees (or Sublicensees) under or in connection with this Agreement to be under an obligation to assign (or, if such Party is unable to cause such Person
to agree to such assignment obligation despite such Party’s using commercially reasonable efforts to negotiate such assignment obligation, then to grant an exclusive license under) their rights in any Inventions resulting therefrom to such
Party, except where Applicable Law requires otherwise and except in the case of governmental, not-for-profit and public institutions that have standard policies against
such an assignment (in which case, a suitable license or right to obtain such a license, shall be obtained). 
  

	9.2	 Maintenance and Prosecution of Patents 

 

	9.2.1	 In General 

As between the Parties Mereo shall through counsel of its choice, prepare, file, prosecute, extend, apply for supplementary protection
certificates relating thereto, and maintain the Option Patents, including any related interference, re-issuance, re-examination and opposition proceedings with respect
thereto, in the Territory, in each case, the cost and expense of which shall [***]. Prior to the Option Exercise Date, 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 30 

 
Mereo, as prosecuting Party shall periodically inform AstraZeneca of all material steps with regard to the preparation, filing, prosecution and maintenance of the Option Patents, in the
Territory, including by providing AstraZeneca with a copy of material communications to and from any patent authority in the Territory regarding such Patents and by providing AstraZeneca drafts of any material filings or responses to be made to such
patent authorities in the Territory sufficiently in advance of submitting such filings or responses so as to allow for a reasonable opportunity for AstraZeneca to review and comment thereon. Prior to the Option Exercise Date, Mereo shall consider in
good faith the requests and suggestions of AstraZeneca with respect to such drafts and with respect to strategies for filing and prosecuting such Patents in the Territory and [***]. If, as between the Parties, Mereo decides, prior to the Option
Exercise Date, not to prepare, file, prosecute or maintain an Option Patent in a country in the Territory, Mereo shall provide reasonable prior written notice to AstraZeneca of such intention, AstraZeneca shall thereupon have the right, in its sole
discretion, to assume the control and direction of the preparation, filing, prosecution and maintenance of such Option Patent [***], whereupon AstraZeneca shall be deemed the prosecuting Party and Mereo the
non-prosecuting Party with respect to such Patent for the purposes of Section 9.2.2. Notwithstanding the foregoing, if Mereo exercises the Option, AstraZeneca shall have no right to prepare, file,
prosecute, extend, apply for supplementary protection certificates relating thereto, and maintain the Option Patents from and including the Option Exercise Date. 
  

	9.2.2	 Cooperation 

The non-prosecuting Party (as set forth in Section 9.2.1) shall, and shall cause its Affiliates
to, assist and cooperate with the prosecuting Party (as set forth in Section 9.2.1), as the prosecuting Party may reasonably request from time to time, in the preparation, filing, prosecution and maintenance of the Option Patents in the
Territory under this Section 9.2, including that the non-prosecuting Party shall, and shall ensure that its Affiliates, (i) offer its comments, if any, promptly, (ii) provide access to relevant
documents and other evidence and make its employees available at reasonable business hours; provided, however, that neither Party shall be required to provide legally privileged information with respect to such intellectual property unless
and until procedures reasonably acceptable to such Party are in place to protect such privilege); and provided, further, that the prosecuting Party shall reimburse the non-prosecuting Party for its
[***] costs and expenses incurred in connection therewith. 
  

	9.2.3	 Patent Listings 

As between the Parties, Mereo shall have the right in its good faith determination to make all filings with Regulatory Authorities in the
Territory with respect to the Option Patents, including as required or allowed (i) in the United States, in the FDA’s Orange Book and (ii) in the European Union, under the national implementations of Section 10.1(a)(iii) of
Directive 2001/EC/83 or other international equivalents. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 31 

	9.3	 Enforcement of Patents 

 

	9.3.1	 Notice 

Each Party shall promptly notify the other Party in writing of (i) any alleged or threatened infringement of the Option Patents in any
jurisdiction in the Territory or (ii) any certification filed under the Hatch-Waxman Act claiming that any of the Option Patents are invalid or unenforceable or claiming that any of the Option Patents would not be infringed by the making, use,
offer for sale, sale or import of a product for which an application under the Hatch-Waxman Act is filed or any equivalent or similar certification or notice in any other jurisdiction, in each case ((i) and (ii)) of which such Party becomes aware
(an “Infringement”). 
  

	9.3.2	 Enforcement of Patents 

As between the Parties, Mereo shall have the first right, but not the obligation, to prosecute any Infringement with respect to the Option
Patents, including as a defense or counterclaim in connection with any Third Party Infringement Claim, [***], using counsel of Mereo’s choice. If, prior to the Option Exercise Date, Mereo declines to prosecute any Infringement with respect to
an Option Patent, AstraZeneca may prosecute such infringement [***]. For purposes of this Section 9.3.2, the Party prosecuting any Infringement pursuant to the foregoing sentences with respect to a Patent shall be the “Enforcing
Party.” In the event AstraZeneca prosecutes any such Infringement in the Field in the Territory, Mereo shall have the right to join as a party to such claim, suit or proceeding and participate with its own counsel [***]; provided
that AstraZeneca shall retain control of the prosecution of such claim, suit or proceeding, including the response to any defense or defense of any counterclaim raised in connection therewith. In the event Mereo prosecutes any such Infringement
in the Field in the Territory, AstraZeneca shall have the right to join as a party to such claim, suit or proceeding and participate with its own counsel [***]; provided that Mereo shall retain control of the prosecution of such claim, suit or
proceeding, including the response to any defense or defense of any counterclaim raised in connection therewith. If Mereo exercises the Option, AstraZeneca shall have no right to prosecute any Infringement relating to the Option Patents from and
including the relevant Option Exercise Date. 
  

	9.3.3	 Cooperation 

The Parties agree to cooperate fully in any Infringement action pursuant to this Section 9.3.3, including by making the inventors,
applicable records and documents (including laboratory notebooks) with respect to the relevant Patents available to the Enforcing Party on the Enforcing Party’s request. With respect to an action controlled by the applicable Enforcing Party,
the other Party shall, and shall cause its Affiliates to, assist and cooperate with the Enforcing Party, as the Enforcing Party may reasonably request from time to time, in connection with its activities set forth in this Section 9.3.3,
including where necessary, furnishing a power of attorney solely for such purpose or joining in, or being named as a necessary party to, such action, providing access to relevant documents and other evidence and making its employees available at
reasonable business hours; provided that the Enforcing Party shall reimburse such other Party for its [***] costs and expenses incurred in connection therewith. Unless otherwise set forth herein, the Enforcing Party shall have the right to settle
such claim; provided that neither Party shall have the right to settle any Infringement litigation under this Section 9.3.3 in a manner that has a material adverse 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 32 

 
effect on the rights or interest of the other Party or in a manner that imposes any costs or liability on or involves any admission by, the other Party, without the express written consent of
such other Party (which consent shall not be unreasonably withheld, conditioned or delayed). In connection with any activities with respect to an Infringement action prosecuted by the applicable Enforcing Party pursuant to this Section 9.3.3
involving Patents owned or Controlled by or licensed under Section 2 to the other Party, the Enforcing Party shall (i) consult with the other Party as to the strategy for the prosecution of such claim, suit or proceeding,
(ii) consider in good faith any comments from the other Party with respect thereto and (iii) keep the other Party reasonably informed of any material steps taken and provide copies of all material documents filed, in connection with such
action. 
  

	9.3.4	 Recovery 

Except as otherwise agreed by the Parties in connection with a cost sharing arrangement, any recovery realized as a result of such litigation
described above in this Section 9.3.4 (whether by way of settlement or otherwise) shall be first, allocated to reimburse the Parties for their costs and expenses in making such recovery (which [***] if [***] to [***] the [***] of [***]). Any
remainder after such reimbursement is made shall be [***]; provided, however, that to the extent that [***] or [***] (whether by [***] or [***]) with respect to an [***] is [***] to [***] of [***] or [***] with respect to [***] such
[***] or [***] shall be [***] and [***]. 
  

	9.4	 Infringement Claims by Third Parties 

If the Exploitation of a Product in the Territory pursuant to this Agreement results in, or is reasonably expected to result in, any claim,
suit or proceeding by a Third Party alleging infringement by Mereo or any of its Affiliates or its or their Sublicensees, (a “Third Party Infringement Claim”), including any defense or counterclaim in connection with an Infringement
action initiated pursuant to this Section 9.4, the Party first becoming aware of such alleged infringement shall promptly notify the other Party thereof in writing. As between the Parties, Mereo shall be responsible for defending any such
claim, suit or proceeding [***], using counsel of Mereo’s choice. Prior to the Option Exercise Date, AstraZeneca may participate in any such claim, suit or proceeding with counsel of its choice [***]; provided that Mereo shall retain the right
to control such claim, suit or proceeding. If Mereo exercises the Option, AstraZeneca shall have no right participate in any such claim, suit or proceeding relating to the Option Patents from and including the Option Exercise Date. AstraZeneca
shall, and shall cause its Affiliates to, assist and cooperate with Mereo, as Mereo may reasonably request from time to time, in connection with its activities set forth in this Section 9.4, including where necessary, furnishing a power of
attorney solely for such purpose or joining in, or being named as a necessary party to, such action, providing access to relevant documents and other evidence and making its employees available at reasonable business hours; provided that Mereo shall
reimburse AstraZeneca for [***] costs and expenses incurred in connection therewith. Mereo shall keep AstraZeneca reasonably informed of all material developments in connection with any such claim, suit or proceeding. Mereo agrees to provide
AstraZeneca with copies of all material pleadings filed in such action and to allow AstraZeneca reasonable opportunity to participate in the defense of the claims. Any 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 33 

 
damages, or awards, including royalties incurred or awarded in connection with any Third Party Infringement Claim defended under this Section 9.4 shall be [***]. For clarity, if Mereo is
required to make any payment to a Third Party to settle such Third Party Infringement Claim, such Third Party Payment shall be a Third Party Payment for the purposes of Section 8.5.3(c). 

 

	9.5	 Invalidity or Unenforceability Defenses or Actions 

Each Party shall promptly notify the other Party in writing of any alleged or threatened assertion of invalidity or unenforceability of any of
the Option Patents by a Third Party and of which such Party becomes aware. As between the Parties, Mereo shall have the first right, but not the obligation, to defend and control the defense of the validity and enforceability of the Option Patents
[***]. If, prior to the Option Exercise Date, Mereo declines to defend any such invalidity claim with respect to an Option Patent, AstraZeneca may defend such invalidity claim [***]. For purposes of this Section 9.5, the Party defending any
action pursuant to the foregoing sentence with respect to a Patent shall be the “Controlling Party.” If the Controlling Party or its designee elects not to defend or control the defense of the applicable Patents in a suit brought in
the Territory or otherwise fails to initiate and maintain the defense of any such claim, suit or proceeding, then subject to any rights of Third Parties under any applicable Third Party agreements existing as of the Effective Date, the non-Controlling Party may conduct and control the defense of any such claim, suit or proceeding [***]. If Mereo exercises the Option, AstraZeneca shall have no right to defend or control the defense of for the
relevant Option Patents from and including the relevant Option Exercise Date. The non-Controlling Party in such an action shall, and shall cause its Affiliates to, assist and cooperate with the Controlling
Party, as such Controlling Party may reasonably request from time to time in connection with its activities set forth in this Section 9.5, including where necessary, furnishing a power of attorney solely for such purpose or joining in, or being
named as a necessary party to, such action, providing access to relevant documents and other evidence and making its employees available at reasonable business hours; provided that the Controlling Party shall reimburse the non-Controlling Party for its [***] costs and expenses incurred in connection therewith. In connection with any activities with respect to a defense, claim or counterclaim relating to the Option Patents pursuant to
this Section 9.5, the Controlling Party shall (x) consult with the non-Controlling Party as to the strategy for such activities, (y) consider in good faith any comments from the non-Controlling Party and (z) keep the non-Controlling Party reasonably informed of any material steps taken and provide copies of all material documents filed, in
connection with such defense, claim or counterclaim. 
  

	9.6	 Third Party Patent Rights 

If, at any time during the Term, [***], the Exploitation of the Compounds or Product in the Field and in the Territory by Mereo, any of its
Affiliates or any of its or their Sublicensees infringes or is reasonably expected to infringe any Patent of a Third Party in any country in the Territory (such right, a “Third Party Patent Right”), then, as between the Parties,
Mereo shall have the right, but not the obligation, to negotiate and obtain a license from such Third Party to such Third Party Patent Right as necessary or desirable for Mereo or its Affiliates or its or their Sublicensees to Exploit the Compounds
and Products in the Field in such country; provided that subject to [***]. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 34 

	10.	 CONFIDENTIALITY AND NON-DISCLOSURE 

 

	10.1	 Confidentiality Obligations 

At all times during the Term and for a period of [***] years following termination or expiration hereof in its entirety (except that
Confidential Information consisting of trade secrets shall be subject to the terms and conditions of this Section 10 beyond such [***] year period until such Confidential Information no longer constitutes a trade secret except where due to a
breach by the receiving Party of this Agreement or other obligation of confidentiality owed to the disclosing Party), each Party shall and shall cause its officers, directors, employees and agents to, keep confidential and not publish or otherwise
disclose to a Third Party and not use, directly or indirectly, for any purpose, any Confidential Information furnished or otherwise made known to it, directly or indirectly, by the other Party, except to the extent such disclosure or use is
expressly permitted by the terms of this Agreement. “Confidential Information” means any technical, business or other information or data provided by or on behalf of one Party to the other Party regardless of form including a
formula, pattern, compilation, program, method, technique, process, inventory, chemical, physical material, chemical structure or activity, design, prototype, drawings, samples, source code, business plan, business opportunity, customer or personnel
list, or financial statement proprietary to a Party or its Affiliate, including information relating to the terms of this Agreement (subject to Section 10.4), information relating to the Compound(s) or any Product(s) (including the Regulatory
Documentation), any Development or Commercialization of the Compounds or any Product(s), any know-how with respect thereto developed by or on behalf of the disclosing Party or its Affiliates or the scientific,
regulatory or business affairs or other activities of either Party. Notwithstanding the foregoing, the terms of this Agreement shall be deemed to be the Confidential Information of both Parties and both Parties shall be deemed to be the receiving
Party and the disclosing Party with respect thereto. Notwithstanding the foregoing, the confidentiality and non-use obligations under this Section 10.1 with respect to any Confidential Information shall
not include any information or portion thereof that: 
  

	10.1.1	 is or hereafter becomes part of the public domain by public use, publication, general knowledge or the like
through no breach of this Agreement by the receiving Party; 

  

	10.1.2	 can be demonstrated by documentation or other competent proof to have been known by or in the receiving
Party’s possession prior to disclosure by the disclosing Party without any obligation of confidentiality with respect to such information; 

  

	10.1.3	 is subsequently received by the receiving Party from a Third Party who is not bound by any obligation of
confidentiality with respect to such information and who otherwise has the right to make such disclosure; 

  

	10.1.4	 has been or is published by a Third Party or otherwise enters the public domain through no fault of the
receiving Party in breach of this Agreement; or 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 35 

	10.1.5	 can be demonstrated by documentation or other competent evidence to have been independently developed by or for
the receiving Party without reference to the disclosing Party’s Confidential Information. 

 Specific aspects or
details of Confidential Information shall not be deemed to be within the public domain or in the possession of the receiving Party merely because the Confidential Information is embraced by more general information in the public domain or in the
possession of the receiving Party. Further, any combination of Confidential Information shall not be considered in the public domain or in the possession of the receiving Party merely because individual elements of such Confidential Information are
in the public domain or in the possession of the receiving Party unless the combination and its principles are in the public domain or in the possession of the receiving Party. 

 

	10.2	 Permitted Disclosures 

Each Party may disclose Confidential Information to the extent that such disclosure is: 

 

	10.2.1	 made in response to a valid order of a court of competent jurisdiction or other supra-national, federal,
national, regional, state, provincial and local governmental or regulatory body of competent jurisdiction or, if in the reasonable opinion of the receiving Party’s legal counsel, such disclosure is otherwise required by law, including by reason
of filing with securities regulators or rules of an applicable securities exchange; provided, however, that the receiving Party shall first where practicable have given notice to the disclosing Party and given the disclosing Party a
reasonable opportunity to quash such order or to obtain a protective order or confidential treatment requiring that the Confidential Information and documents that are the subject of such order be held in confidence by such court or agency or, if
disclosed, be used only for the purposes for which the order was issued; provided, further, that the Confidential Information disclosed in response to such court or governmental order shall be limited to that information which is
legally required to be disclosed in response to such court or governmental order; 

  

	10.2.2	 made by or on behalf of the receiving Party to the Regulatory Authorities as required in connection with any
filing, application or request for Regulatory Approval; provided, however, that reasonable measures shall be taken to assure confidential treatment of such information to the extent practicable and consistent with Applicable Law;

  

	10.2.3	 made by or on behalf of the receiving Party to a patent authority as may be reasonably necessary or useful for
purposes of obtaining or enforcing a Patent; provided, however, that reasonable measures shall be taken to assure confidential treatment of such information, to the extent such protection is available; 

 

	10.2.4	 made by or on behalf of Mereo or its Affiliate to an actual or potential Sublicensee; or 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 36 

	10.2.5	 made by or on behalf of Mereo to (a) legal, financial and investment banking advisors and potential or
actual sources of financing, investors or acquirers as may be necessary in connection with their evaluation of such potential or actual investment or acquisition and counsel for the foregoing and (b) in connection with disclosure obligations
that arise in connection with potential financing; provided, however, that such persons shall be subject to obligations of confidentiality and non-use with respect to such Confidential Information that
are customary in such circumstances. In addition, if legally required, a copy of this Agreement, the Subscription Deed and Parent Company Guarantee may be filed by Mereo with the U.S. Securities and Exchange Commission (or relevant ex-U.S. counterpart). In that case, Mereo shall notify AstraZeneca and provide AstraZeneca a reasonable period of time of no more than [***] to request Mereo to diligently seek confidential treatment for terms of
this Agreement for which confidential treatment is reasonably available, and shall provide AstraZeneca reasonable advance notice of the terms proposed for redactions and a reasonable opportunity to request that Mereo make additional redactions of
financial or other information to the extent confidential treatment is reasonably available under the law. 

  

	10.3	 Use of Name 

Except as expressly provided herein, neither Party shall mention or otherwise use the name, logo or Trademark of the other Party or any of its
Affiliates or any of its or their (sub)licensees (or Sublicensees) (or any abbreviation or adaptation thereof) in any publication, press release, marketing and promotional material or other form of publicity without the prior written approval of
such other Party in each instance. The restrictions imposed by this Section 10.3 shall not prohibit (i) either Party from making any disclosure identifying the other Party to the extent required in connection with its exercise of its
rights or obligations under this Agreement and (ii) either Party from making any disclosure identifying the other Party that is required by Applicable Law or the rules of a stock exchange on which the securities of the disclosing Party are
listed (or to which an application for listing has been submitted). 
  

	10.4	 Public Announcements 

The Parties have agreed to make an announcement in the form set out in Schedule 10.4 on the date of execution of this Agreement. Subject to the
foregoing and Section 10.2.5, the Parties have agreed that neither Party shall issue any public announcement, press release or other public disclosure regarding this Agreement or its subject matter without the other Party’s prior written
consent, except for any such disclosure that is, in the opinion of the disclosing Party’s counsel, required to be disclosed by the disclosing Party (or any of its Affiliates) by Applicable Law or the rules of a stock exchange on which the
securities of the disclosing Party (or any of its Affiliates) are listed or admitted to trading (or to which an application for listing or admission to trading has been submitted). In the event a Party (or any of its Affiliates) is, in the opinion
of its counsel, required by Applicable Law or the rules of a stock exchange on which its securities are listed or admitted to trading (or to which an application for listing or admission to trading has been submitted) to make such a public
disclosure, such Party (or its relevant Affiliate) shall submit the proposed disclosure in writing to the other Party as far in advance as reasonably practicable (and in no event less than [***] prior to the anticipated date of disclosure or such
shorter period as required to ensure compliance with Applicable Law) so as to provide a reasonable opportunity to comment thereon. Neither Party shall be required to seek the permission of the other 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 37 

 
Party to repeat any information regarding the terms of this Agreement or any amendment hereto that has already been publicly disclosed by such Party or by the other Party, in accordance with this
Section 10.4; provided that such information remains accurate as of such time and provided the frequency and form of such disclosure are reasonable. 
  

	10.5	 Publications 

The Parties recognize the desirability of publishing and publicly disclosing the results of and information regarding, activities under this
Agreement. Accordingly, Mereo shall be free to publicly disclose the results of and information regarding, activities under this Agreement, subject to prior review by AstraZeneca of any disclosure of AstraZeneca’s Confidential Information for
issues of patentability and protection of such Confidential Information, in a manner consistent with Applicable Law and industry practices, as provided in this Section 10.5. Accordingly, prior to publishing or disclosing any Confidential
Information of AstraZeneca, Mereo shall provide AstraZeneca with drafts of proposed abstracts, manuscripts or summaries of presentations that cover such Confidential Information. AstraZeneca shall respond promptly through its designated
representative and in any event no later than [***] after receipt of such proposed publication or presentation or such shorter period as may be required by the publication or presentation. Mereo agrees to allow a reasonable period (not to exceed
[***]) to permit filings for patent protection and to otherwise address issues of Confidential Information or related competitive harm to the reasonable satisfaction of AstraZeneca. In addition, Mereo shall give due regard to comments furnished by
AstraZeneca. Notwithstanding the foregoing, Mereo shall be free to include scientific and clinical data relating solely to the Compounds in publications on Mereo’s activities under this Agreement, and such scientific and clinical data relating
solely to the Compounds will not be considered Confidential Information of AstraZeneca for such purpose. 
  

	10.6	 Return of Confidential Information 

Upon the effective date of the expiration or termination of this Agreement for any reason, either Party may request in writing and the non-requesting Party shall, with respect to Confidential Information to which such non-requesting Party does not retain rights under the surviving provisions of this
Agreement, promptly destroy all copies of such Confidential Information in the possession or control of the non-requesting Party and confirm such destruction in writing to the requesting Party. Notwithstanding
the foregoing, the non-requesting Party shall be permitted to retain such Confidential Information (x) to the extent necessary or useful for purposes of performing any continuing obligations or exercising
any ongoing rights hereunder and, in any event, a single copy of such Confidential Information for archival purposes and (y) any computer records or files containing such Confidential Information that have been created solely by such non-requesting Party’s automatic archiving and back-up procedures, to the extent created and retained in a manner consistent with such
non-requesting Party’s standard archiving and back-up procedures, but not for any other uses or purposes. All Confidential Information shall continue to be subject
to the terms of this Agreement for the period set forth in Section 10.1. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 38 

	10.7	 Privileged Communications 

In furtherance of this Agreement, it is expected that the Parties may, from time to time, disclose to one another privileged communications
with counsel, including opinions, memoranda, letters and other written, electronic and verbal communications. Such disclosures are made with the understanding that they shall remain confidential in accordance with this Section 10, that they
will not be deemed to waive any applicable attorney-client or attorney work product or other privilege and that they are made in connection with the shared community of legal interests existing between AstraZeneca and Mereo, including the community
of legal interests in avoiding infringement of any valid, enforceable patents of Third Parties and maintaining the validity of any patents owned or controlled by the Parties. In the event of any litigation (or potential litigation) with a Third
Party related to this Agreement or the subject matter hereof, the Parties shall, upon either Party’s request, enter into a reasonable and customary joint defense agreement. In any event, each Party shall consult in a timely manner with the
other Party before engaging in any conduct (e.g., producing information or documents) in connection with litigation or other proceedings that could conceivably implicate privileges maintained by the other Party. Notwithstanding anything
contained in this Section 10.7, nothing in this Agreement shall prejudice a Party’s ability to take discovery of the other Party in disputes between them relating to the Agreement and no information otherwise admissible or discoverable by
a Party shall become inadmissible or immune from discovery solely by this Section 10.7. 
  

	11.	 REPRESENTATIONS AND WARRANTIES 

 

	11.1	 Mutual Representations and Warranties 

AstraZeneca and Mereo each represent and warrant to the other, as of the Effective Date, and covenants, that: 

 

	11.1.1	 it is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of
its organization and has all requisite power and authority, corporate or otherwise, to execute, deliver and perform this Agreement; 

  

	11.1.2	 the execution and delivery of this Agreement and the performance by it of the transactions contemplated hereby
have been duly authorized by all necessary corporate action and do not violate: (i) such Party’s charter documents, bylaws or other organizational documents; (ii) in any material respect, any agreement, instrument or contractual
obligation to which such Party is bound; (iii) any requirement of any Applicable Law; or (iv) any order, writ, judgment, injunction, decree, determination or award of any court or governmental agency presently in effect applicable to such
Party; 

  

	11.1.3	 this Agreement is a legal, valid and binding obligation of such Party enforceable against it in accordance with
its terms and conditions, subject to the effects of bankruptcy, insolvency or other laws of general application affecting the enforcement of creditor rights, judicial principles affecting the availability of specific performance and general
principles of equity (whether enforceability is considered a proceeding at law or equity); 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 39 

	11.1.4	 it is not under any obligation, contractual or otherwise, to any Person that conflicts with or is inconsistent
in any material respect with the terms of this Agreement or that would impede the diligent and complete fulfilment of its obligations hereunder; and 

  

	11.1.5	 neither it nor any of its Affiliates has been debarred or is subject to debarment and neither it nor any of its
Affiliates has used or will use in any capacity, in connection with the services to be performed under this Agreement, any Person who has been debarred pursuant to Section 306 of the FFDCA or who is the subject of a conviction described in such
section. It will inform the other Party in writing promptly if it or any such Person who is performing services hereunder is debarred or is the subject of a conviction described in Section 306 or if any action, suit, claim, investigation or
legal or administrative proceeding is pending or, to the best of its or its Affiliates’ Knowledge, is threatened, relating to the debarment or conviction of it or any such Person performing services hereunder. 

 

	11.2	 Additional Representations and Warranties of AstraZeneca 

AstraZeneca further represents and warrants to Mereo, as of the Effective Date, that: 

 

	11.2.1	 to AstraZeneca’s Knowledge, other than the Option Intellectual Property, there are no intellectual
property rights: (a) which are owned by AstraZeneca or any of its Affiliates as of the Effective Date or at any time during the time of the Agreement and that (b) relate [***] to the Compounds or Products; 

 

	11.2.2	 AstraZeneca owns the Option Know-How and, subject to any restrictions
in the Transferring Contracts or Additional Studies, has the right to grant the licenses and sublicenses specified thereunder without liens or other encumbrances; 

 

	11.2.3	 AstraZeneca owns the Option Patents set forth in Schedule 1.79 and has the right to grant the licenses and
sublicenses specified thereunder without liens or other encumbrances; 

  

	11.2.4	 the list of Option Patents set forth in Schedule 1.79 is true, complete and accurate as of the Effective Date;

  

	11.2.5	 AstraZeneca has obtained all necessary consents, approvals and authorizations of all governmental Authorities
and / or Regulatory Authorities and other Persons or entities required to be obtained by it in connection with the execution and delivery of this Agreement; 

  

	11.2.6	 AstraZeneca is in compliance with all Applicable Law to the extent relevant to the licenses granted hereunder
and the Product Intellectual Property, including the Bayh-Dole Act; 

  

	11.2.7	 AstraZeneca has not received any written claim or demand alleging that (a) the Option Patents are invalid
or unenforceable or (b) the Development or Commercialization of the Products as contemplated herein infringes any Patent owned by any Third Party; 

  

	11.2.8	 to AstraZeneca’s Knowledge, there are no ongoing proceedings in court as to infringement, misappropriation
or invalidity of any of the Option Patents, including any inter partes proceedings or oppositions; 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 40 

	11.2.9	 to AstraZeneca’s Knowledge, no Person is infringing or threatening to infringe the Option Patents in the
Field; and no facts exist that would render the Option Patents invalid or unenforceable; 

  

	11.2.10	 the Option Patents have been prosecuted in accordance with all Applicable Law including the duty of candor;

  

	11.2.11	 AstraZeneca has received no regulatory warnings or complaint letters in connection with the Compounds or
Products; 

  

	11.2.12	 solely in relation to the services carried out in its conduct of the Transfer Activities: (i) none of its
Third Party suppliers and no employees or contractors of AstraZeneca who has been involved in the development of the Compounds and Products has, to AstraZeneca’s Knowledge, been debarred or is subject to debarment; and (ii) neither it nor
any of its Affiliates has used, does use or will use in any capacity, in connection with the services to be performed under this Agreement, any Person who has been debarred pursuant to Section 306 of the FFDCA or who is the subject of a
conviction described in such section; 

  

	11.2.13	 all API, Compounds, and the Products, as applicable, have been manufactured in compliance with all Applicable
Law and applicable good manufacturing practice; 

  

	11.2.14	 AstraZeneca has not had any and is not in material dispute with any Third Party supplier in connection with the
supply of the Compounds, or Products; 

  

	11.2.15	 AstraZeneca is not conducting, nor planning to conduct in the immediate future, any Development with a
neutrophil elastase inhibitor, other than as contemplated by this Agreement; 

  

	11.2.16	 With the exception of the Additional Studies and the Ongoing Research Agreements, to AstraZeneca’s
Knowledge neither AstraZeneca nor its Affiliates is a party to an upstream agreement which relates to any of the Product Intellectual Property; 

  

	11.2.17	 to AstraZeneca’s Knowledge, the list of Transferring Contracts set forth in Schedule 1.129 is a true,
complete and accurate list as of the Effective Date of all written or oral legally binding contracts, agreements, instruments, commitments, obligations, understandings, or undertakings of any nature (including leases, licenses, mortgages, notes,
guarantees, sublicenses, subcontracts, covenants not to compete, covenants not to sue, confidentiality agreements, options and warranties) which are exclusively related to the Business; and 

 

	11.2.18	 to AstraZeneca’s Knowledge, AstraZeneca is in compliance with the terms of all Transferring Contracts.

  

	11.3	 Additional Representation, Warranty and Covenant of AstraZeneca 

AstraZeneca further represents and warrants to Mereo on an ongoing basis that, subject to any restrictions contained in the Transferring
Contracts or Additional Studies: 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 41 

	11.3.1	 AstraZeneca will not grant any security, liens or other encumbrance over the Option Intellectual Property prior
to the Option Exercise Date; and 

  

	11.3.2	 AstraZeneca will not grant any security, liens or other encumbrance over the Option Intellectual Property on or
following to the Option Exercise Date that would prevent AstraZeneca granting the licenses and sublicenses specified hereunder. 

  

	11.4	 DISCLAIMER OF WARRANTIES 

EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH HEREIN, NEITHER PARTY MAKES ANY REPRESENTATIONS OR GRANTS ANY WARRANTIES, EXPRESS OR IMPLIED,
EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE AND EACH PARTY SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR
USE OR PURPOSE OR ANY WARRANTY AS TO THE VALIDITY OF ANY PATENTS OR THE NON-INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES. 

 

	12.	 ANTI-BRIBERY AND ANTI-CORRUPTION COMPLIANCE 

 

	12.1	 Mereo agrees, on behalf of itself, its officers, directors and employees and on behalf of its Affiliates,
agents, representatives, consultants and subcontractors hired in connection with the subject matter of this Agreement (together with Mereo, the “Mereo Representatives”) that for the performance of its obligations hereunder:

  

	12.1.1	 the Mereo Representatives shall not directly or indirectly pay, offer or promise to pay or authorize the
payment of any money or give, offer or promise to give or authorize the giving of anything else of value, to: (a) any Government Official in order to improperly influence official action; (b) any Person (whether or not a Government
Official) (i) to improperly influence such Person to act in breach of a duty of good faith, impartiality or trust (“acting improperly”), (ii) to reward such Person for acting improperly or (iii) where such Person would be acting
improperly by receiving the money or other thing of value; (c) any Person (whether or not a Government Official) while knowing or having reason to know that all or any portion of the money or other thing of value will be paid, offered, promised
or given to or will otherwise benefit, a Government Official in order to improperly influence official action for or against either Party in connection with this Agreement; or (d) any Person (whether or not a Government Official) to reward that
Person for acting improperly or to induce that Person to act improperly; and 

  

	12.1.2	 the Mereo Representatives shall not, directly or indirectly, solicit, receive or agree to accept any payment of
money or anything else of value in violation of the Anti-Corruption Laws. 

  

	12.2	 Mereo shall and shall cause the Mereo Representatives to comply with (a) such applicable Anti-Corruption
Laws; (b) their own internal policies relating to anti-corruption; and (c) in connection with activities under this Agreement, AZ’s Global Ethical Interactions Policy. If AstraZeneca makes any material change to AZ’s Global
Ethical Interactions Policy, it shall notify Mereo of such change in writing and Mereo and the Mereo Representatives shall be under no obligation to comply with such change until such time as Mereo has received such notice of the same.

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 42 

	12.3	 Mereo, on behalf of itself and the other Mereo Representatives shall promptly inform AstraZeneca upon receipt
by Mereo of a formal notification that it or any of the Mereo Representatives is the target of a formal investigation by a Regulatory Authority for a Material Anti-Corruption Law Violation. 

 

	12.4	 For the purpose of auditing and monitoring the performance of its compliance with this Section 12, Mereo
will during the Term, subject to the terms of this Section 12.4 and not more than [***] in each Calendar Year, permit any reasonably acceptable independent auditor appointed by AstraZeneca for such purpose and any Regulatory Authority to have
access to any premises of Mereo or other Mereo Representatives used in connection with this Agreement (such access to be at reasonable times and on reasonable notice), together with a right to access personnel and records that relate to this
Agreement (“Compliance Audit”). To the extent that any Compliance Audit by AstraZeneca requires access and review of any commercially or strategically sensitive information or agreements of Mereo or Mereo Representatives, such
independent auditor shall only report back to AstraZeneca such information as is directly relevant to informing AstraZeneca on Mereo’s compliance with the particular provisions of this Agreement or the agreement being audited. Mereo shall, and
shall cause the Mereo Representatives to, provide all cooperation and assistance during normal working hours as reasonably requested by its independent auditor for the purposes of a Compliance Audit. AstraZeneca shall cause any such auditor to enter
into a confidentiality agreement substantially consistent with the applicable requirements of Section 10 hereof, and to cause the minimum amount of disruption to the business of Mereo and the Mereo Representatives and to comply with relevant
building and security regulations. 

  

	12.5	 The costs and fees of any Compliance Audit shall be paid by [***] and [***] of rendering assistance under this
Section 12. 

  

	12.6	 If AstraZeneca becomes aware that Mereo (or any other Mereo Representative) has or comes to reasonably believe
that Mereo (or any other Mereo Representative) has (and provides written evidence of the same to Mereo) committed a Material Anti-Corruption Law Violation, AstraZeneca shall have the right, in addition to any other rights or remedies under this
Agreement or to which it may be entitled in law or equity, to terminate this Agreement immediately and in its entirety upon written notice to Mereo if Mereo does not cure such Material Anti-Corruption Law Violation or demonstrate that such Material
Anti-Corruption Law Violation did not occur within [***] days of learning of, or notice from AstraZeneca alleging, such Material Anti-Corruption Law Violation. To cure such Material Anti-Corruption Law Violation, Mereo shall take such steps,
additional measures, representations, warranties, undertakings and other provisions, in each case, as AstraZeneca believes in good faith are reasonably necessary in order to avoid a subsequent Material Anti-Corruption Law Violation or continuing
violation of Anti-Corruption Laws. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 43 

	12.7	 Any termination of this Agreement pursuant to Section 12 shall be treated as a termination by AstraZeneca
for Mereo’s breach and the applicable consequences of termination set forth in Section 15 shall apply. 

  

	12.8	 AstraZeneca may disclose the terms of this Agreement or any action taken under this Section 12 to prevent
a potential violation or continuing violation of applicable Anti-Corruption Laws, including the identity of Mereo or a Mereo Representative and the payment terms, to any Regulatory Authority if AstraZeneca determines, upon advice of counsel, that
such disclosure is necessary. 

  

	12.9	 Nothing in this Section 12 shall require Mereo or any Mereo Representative to breach any applicable laws
or regulations. 

  

	13.	 INDEMNITY 

  

	13.1	 Indemnification of AstraZeneca 

Mereo shall indemnify AstraZeneca, its Affiliates, its or their (sub)licensees and its and their respective directors, officers, employees and
agents and defend and save each of them harmless, from and against any and all losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and expenses) (collectively, “Losses”) in connection with:
(a) the employment or termination of employment of or other obligations to any employee of Mereo whose contract of employment is claimed or is deemed to transfer to AstraZeneca or its Affiliates (each an “AZ Transferee” for the
purposes of this Section 13.1) pursuant to TUPE, provided that the relevant employee is dismissed within [***] days of the AZ Transferee becoming aware of the claimed or deemed transfer; and (b) any and all suits, investigations, claims or
demands of Third Parties (collectively, “Third Party Claims”) arising from or occurring as a result of: (i) the breach by Mereo of this Agreement; (ii) the gross negligence or willful misconduct on the part of Mereo or its
Affiliates or its or their Sublicensees or its or their distributors or contractors or its or their respective directors, officers, employees or agents in performing its or their obligations under this Agreement; or (iii) the Exploitation by
Mereo or any of its Affiliates or its or their Sublicensees or its or their distributors or contractors of any Product or the Compounds in or for the Territory, except, in each case ((i), (ii) and (iii)), for those Losses for which AstraZeneca has
an obligation to indemnify Mereo pursuant to Section 13.2 hereof, as to which Losses each Party shall indemnify the other to the extent of their respective liability for the Losses. 

 

	13.2	 Indemnification of Mereo 

AstraZeneca shall indemnify Mereo, its Affiliates, its or their (sub)licensees and its and their respective directors, officers, employees and
agents and defend and save each of them harmless, from and against any and all Losses in connection with: (a) the employment or termination of employment of or other obligations to any employee of AstraZeneca or its Affiliates whose contract of
employment is claimed or is deemed to transfer to Mereo or its Affiliates (each a “Mereo Transferee” for the purposes of this Section 13.2) pursuant to TUPE provided that the relevant employee is dismissed within [***] days of the
Mereo Transferee becoming aware of the claimed or deemed transfer; and (b) any and all Third Party Claims arising from or occurring as a result 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 44 

 
of: (i) the breach by AstraZeneca of this Agreement; (ii) the gross negligence or willful misconduct on the part of AstraZeneca or its Affiliates or its or their Sublicensees or its or
their respective directors, officers, employees or agents in performing its obligations under this Agreement; and (iii) the Exploitation by AstraZeneca or any of its Affiliates or its or their sublicensees or its or their distributors or
contractors of any Product or the Compounds in or for the Territory prior to the Effective Date, except, in each case (i) through (iii), for those Losses for which Mereo has an obligation to indemnify AstraZeneca pursuant to Section 13.1
hereof, as to which Losses each Party shall indemnify the other to the extent of their respective liability for the Losses. 
  

	13.3	 Indemnification Procedures 

 

	13.3.1	 Notice of Claim 

All indemnification claims in respect of a Party, its Affiliates or its or their (sub)licensees or their respective directors, officers,
employees and agents shall be made solely by such Party to this Agreement (the “Indemnified Party”). The Indemnified Party shall give the indemnifying Party prompt written notice (an “Indemnification Claim Notice”)
of any Losses or discovery of fact upon which such indemnified Party intends to base a request for indemnification under this Section 13, but in no event shall the indemnifying Party be liable for any Losses that result from any delay in
providing such notice. Each Indemnification Claim Notice must contain a description of the claim and the nature and amount of such Loss (to the extent that the nature and amount of such Loss is known at such time). The Indemnified Party shall
furnish promptly to the indemnifying Party copies of all papers and official documents received in respect of any Losses and Third Party Claims. 
  

	13.3.2	 Control of Defense 

The indemnifying Party shall have the right to assume the defense of any Third Party Claim by giving written notice to the Indemnified Party
within [***] days after the indemnifying Party’s receipt of an Indemnification Claim Notice; provided that the indemnifying Party expressly agrees to defend the claim against the Indemnified Party with respect to such Third Party Claim. The
assumption of the defense of a Third Party Claim by the indemnifying Party shall not be construed as an acknowledgment that the indemnifying Party is liable to indemnify the Indemnified Party in respect of the Third Party Claim, nor shall it
constitute a waiver by the indemnifying Party of any defenses it may assert against the Indemnified Party’s claim for indemnification. Upon assuming the defense of a Third Party Claim, the indemnifying Party may appoint as lead counsel in the
defense of the Third Party Claim any legal counsel selected by the indemnifying Party; provided that it obtains the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed). In the
event the indemnifying Party assumes the defense of a Third Party Claim, the Indemnified Party shall immediately deliver to the indemnifying Party all original notices and documents (including court papers) received by the Indemnified Party in
connection with the Third Party Claim. Should the indemnifying Party assume the defense of a Third Party Claim, except as provided 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 45 

 
in Section 13.3.3, the indemnifying Party shall not be liable to the Indemnified Party for any legal expenses subsequently incurred by such Indemnified Party in connection with the analysis,
defense or settlement of the Third Party Claim unless specifically requested in writing by the indemnifying Party. In the event that it is ultimately determined that the indemnifying Party is not obligated to indemnify, defend or hold harmless the
Indemnified Party from and against the Third Party Claim, the Indemnified Party shall reimburse the indemnifying Party for any and all [***] costs and expenses (including attorneys’ fees and costs of suit) and any Losses incurred by the
indemnifying Party in accordance with this Section 13 in its defense of the Third Party Claim. 
  

	13.3.3	 Right to Participate in Defense 

Any Indemnified Party shall be entitled to participate in the defense of such Third Party Claim and to employ counsel of its choice for such
purpose; provided, however, that such employment shall be at the Indemnified Party’s sole cost and expense unless (i) the employment thereof has been specifically authorized in writing by the indemnifying Party in writing (in which
case, the defense shall be controlled as provided in Section 13.3.2), (ii) the indemnifying Party has failed to assume the defense and employ counsel in accordance with Section 13.3.2 (in which case the Indemnified Party shall control the
defense) or (iii) the interests of the indemnitee and the indemnifying Party with respect to such Third Party Claim are sufficiently adverse to prohibit the representation by the same counsel of both Parties under Applicable Law, ethical rules
or equitable principles (in which case, the Indemnified Party shall control its defense). 
  

	13.3.4	 Settlement 

With respect to any Losses relating solely to the payment of money damages in connection with a Third Party Claim and that shall not result in
the applicable indemnitee(s) becoming subject to injunctive or other relief or otherwise adversely affecting the business of the Indemnified Party in any manner and as to which the indemnifying Party shall have acknowledged in writing the obligation
to indemnify the applicable indemnitee hereunder, the indemnifying Party shall have the sole right to consent to the entry of any judgment, enter into any settlement or otherwise dispose of such Loss, on such terms as the indemnifying Party, in its
sole discretion, shall deem appropriate. With respect to all other Losses in connection with Third Party Claims, where the indemnifying Party has assumed the defense of the Third Party Claim in accordance with Section 13.3.2, the indemnifying
Party shall have authority to consent to the entry of any judgment, enter into any settlement or otherwise dispose of such Loss; provided it obtains the prior written consent of the Indemnified Party (which consent shall not be
unreasonably withheld, conditioned or delayed). If the indemnifying Party does not assume and conduct the defense of a Third Party Claim as provided above, the Indemnified Party may defend against such Third Party Claim; provided that
the Indemnified Party shall not settle any Third Party Claim without the prior written consent of the indemnifying Party (which consent shall not be unreasonably withheld, conditioned or delayed). 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 46 

	13.3.5	 Cooperation 

Regardless of whether the indemnifying Party chooses to defend or prosecute any Third Party Claim, the Indemnified Party shall and shall cause
each indemnitee to, cooperate in the defense or prosecution thereof and shall furnish such records, information and testimony, provide such witnesses and attend such conferences, discovery proceedings, hearings, trials and appeals as may be
reasonably requested in connection therewith. Such cooperation shall include access during normal business hours afforded to the indemnifying Party to and reasonable retention by the Indemnified Party of, records and information that are reasonably
relevant to such Third Party Claim and making Indemnified Parties and other employees and agents available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder and the indemnifying Party
shall reimburse the Indemnified Party for all its, its Affiliates’ and its and their (sub)licensees’ or their respective directors’, officers’, employees’ and agents’, as applicable, reasonable and verifiable out-of-pocket expenses in connection therewith. 
  

	13.3.6	 Expenses 

Except as provided above, [***] and [***] of [***] the [***] and [***] and [***] and [***] and [***], as applicable, [***] on a [***] by the
[***], without prejudice to the [***] to [***] the [***] to [***] and [***] to [***] in the event [***] is [***] to be [***] to [***] the [***]. 
  

	13.4	 Special, Indirect and Other Losses 

EXCEPT (i) IN THE EVENT THE GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR FRAUD OF A PARTY OR IT’S AFFILIATES OR OF A PARTY’S BREACH
OF ITS OBLIGATIONS UNDER SECTION 10, (ii) AS PROVIDED UNDER SECTION 16.11, (iii) TO THE EXTENT ANY SUCH DAMAGES ARE REQUIRED TO BE PAID TO A THIRD PARTY AS PART OF A CLAIM FOR WHICH A PARTY PROVIDES INDEMNIFICATION UNDER THIS SECTION 13, NEITHER
PARTY NOR ANY OF ITS AFFILIATES OR (SUB)LICENSEES SHALL BE LIABLE IN CONTRACT, TORT, NEGLIGENCE, BREACH OF STATUTORY DUTY OR OTHERWISE FOR ANY SPECIAL, PUNITIVE, INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS OR REVENUES) OR
FOR LOSS OF PROFITS OR REVENUES SUFFERED BY THE OTHER PARTY, REGARDLESS OF WHETHER ARISING FROM BREACH OF CONTRACT, WARRANTY, TORT ,STRICT LIABILITY OR OTHERWISE, EVEN IF SUCH PARTY IS ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE OR IF SUCH
LOSS OR DAMAGE COULD HAVE BEEN REASONABLY FORESEEN. 
  

	13.5	 Insurance 

Mereo shall have and maintain such types and amounts of insurance covering its Exploitation of the Compounds and Products as is (i) normal
and customary in the pharmaceutical industry generally for parties similarly situated and (ii) otherwise required by Applicable Law. Upon request by AstraZeneca, Mereo shall provide to AstraZeneca evidence of its insurance coverage, including
copies of applicable insurance policies. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 47 

	14.	 TERM AND TERMINATION 

 

	14.1	 Term and Expiration 

This Agreement shall commence on the Effective Date and, unless earlier terminated in accordance herewith, shall continue in force and effect
until the date of expiration of the last Royalty Term for the last Product (such period, the “Term”). Following the expiration of the Royalty Term for a Product in a country, the grants in Section 2.1 shall become fully-paid,
royalty-free, and irrevocable for such Product in such country. For clarity, upon the expiration of the Term, the grants in Section 2.1 shall become fully-paid, royalty-free, and irrevocable in their entirety. 

 

	14.2	 Termination 

  

	14.2.1	 Termination for Material Breach  

In the event that either Party (the “Breaching Party”) shall be in material breach in the performance of any of its
obligations under this Agreement prior to or after the Option Exercise Date, in addition to any other right and remedy the other Party (the “Non-Breaching Party”) may have, the Non-Breaching Party may terminate this Agreement in its entirety by providing sixty (60) days (the “Notice Period”) prior written notice (the “Termination Notice”) to the
Breaching Party and specifying the breach and provided such termination shall not become effective at the end of the Notice Period if the Breaching Party cures the breach specified in the Termination Notice during the Notice Period (or, if such
default cannot be cured within the Notice Period, if the Breaching Party commences actions to cure such breach within the Notice Period and thereafter diligently continues such actions). For the purposes of this Section 14.2.1, Mereo shall be
deemed to be in material breach of the performance of its obligations under this Agreement if MBGP is in material breach of the performance of any of its obligations under the Subscription Deed. 

 

	14.2.2	 Termination by Mereo 

Prior to the Option Exercise Date, Mereo shall have the right to terminate this Agreement in its entirety, without cause, upon sixty
(60) days’ prior written notice, such termination to be effective at the end of such notice period. 
  

	14.2.3	 Termination for Insolvency 

In the event that either Party (or, in the case of Mereo, MBGP or any other person who controls (as defined in Section 1.4) Mereo:
(i) files for protection under bankruptcy or insolvency laws, (ii) makes an assignment for the benefit of creditors, (iii) appoints or suffers appointment of an administrator, liquidator, receiver or trustee over it or substantially
all of its property that is not discharged within ninety (90) days after such filing, (iv) proposes a written agreement of composition or extension of its debts, (v) proposes or is a party to any dissolution or liquidation,
(vi) files a petition under any bankruptcy or insolvency act or has any such petition filed against that is not discharged within sixty (60) days of the filing thereof or (vii) admits in writing its inability generally to meet its
obligations as they fall due in the general course, then the other Party may terminate this Agreement in its entirety effective immediately upon written notice to such Party. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 48 

	14.3	 Rights in Bankruptcy 

All rights and licenses granted under or pursuant to this Agreement by Mereo or AstraZeneca are and shall otherwise be deemed to be, for
purposes of Section 365(n) of the U.S. Bankruptcy Code or any analogous provisions in any other country or jurisdiction, licenses of right to “intellectual property” as defined under Section 101 of the U.S. Bankruptcy Code. The
Parties agree that the Parties, as licensees of such rights under this Agreement, shall retain and may fully exercise all of their rights and elections under the U.S. Bankruptcy Code or any analogous provisions in any other country or jurisdiction.
The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against either Party under the U.S. Bankruptcy Code or any analogous provisions in any other country or jurisdiction, the Party hereto that is not a
Party to such proceeding shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, which, if not already in the non-subject Party’s possession, shall be promptly delivered to it (i) upon any such commencement of a bankruptcy proceeding upon the non-subject Party’s written
request therefor, unless the Party subject to such proceeding elects to continue to perform all of its obligations under this Agreement or (ii) if not delivered under clause (i) above, following the rejection of this Agreement by or on
behalf of the Party subject to such proceeding upon written request therefor by the non-subject Party. 
  

	15.	 Consequences of Termination of this Agreement in its entirety 

 

	15.1.1	 In the event of a termination of this Agreement in its entirety for any reason: 

 

	 	(a)	 the grants in Section 2.1 shall become fully-paid, royalty-free, and irrevocable for such Product in their
entirety provided however that if AstraZeneca terminates pursuant to Section 14.2.1 (Termination for Material Breach) or 14.2.3 (Termination for Insolvency) or where Mereo terminates pursuant to Section 14.2.2
(Termination by Mereo), then all rights and licenses granted by AstraZeneca hereunder shall immediately terminate, including, for clarity, any sublicense granted by Mereo pursuant to Section 2.2; and 

 

	 	(b)	 subject to Section 15.1.1(a), nothing in the Agreement will be construed to release either Party from any
obligation that matured before the effective date of termination. 

  

	15.1.2	 In addition to the provisions of Section 15.1.1, on a termination of this Agreement in its entirety by
Mereo pursuant to Section 14.2.2 (Termination by Mereo) or by AstraZeneca pursuant to Section 14.2.1 (Termination for Material Breach) or 14.2.3 (Termination for Insolvency): 

 

	 	(a)	 Mereo shall and hereby does, and shall cause its Affiliates and its and their Sublicensees to, when and as
requested by AstraZeneca, assign to AstraZeneca [***] of its right, title and interest in and to (a) all Regulatory Documentation (including any Regulatory Approvals) applicable to any Compound(s) or

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 49 

	 	
Product(s) then owned or Controlled by Mereo or any of its Affiliates; provided that if any such Regulatory Documentation or Regulatory Approval is not immediately transferable in a country,
Mereo shall provide AstraZeneca with [***] benefit of such Regulatory Documentation or Regulatory Approval, as applicable, and such assistance and cooperation as necessary or reasonably requested by AstraZeneca to timely transfer such Regulatory
Documentation or Regulatory Approval, as applicable, to AstraZeneca or its designee [***]; 

  

	 	(b)	 unless expressly prohibited by any Regulatory Authority, at AstraZeneca’s written request, Mereo shall and
hereby does, and shall cause its Affiliates to, (a) transfer control to AstraZeneca of [***] clinical studies involving Products thereto being conducted by or on behalf of Mereo, an Affiliate as of the effective date of termination and
(b) continue to conduct such clinical studies, [***], for up to [***] days to enable such transfer to be completed without interruption of any such clinical study; provided that AstraZeneca shall not have any obligation to continue any clinical
study unless required by Applicable Law; 

  

	 	(c)	 at AstraZeneca’s written request, Mereo shall, and cause its Affiliates to, assign to AstraZeneca all
Product Agreements, unless, with respect to any such Product Agreement, such Product Agreement expressly prohibits such assignment, in which case Mereo (or such Affiliate) shall cooperate with AstraZeneca in all reasonable respects to secure the
consent of the applicable Third Party to such assignment and if any such consent cannot be obtained with respect to a Product Agreement, Mereo shall, and cause its Affiliates to, obtain for AstraZeneca [***] of the practical benefit and burden under
such Product Agreement, including by (a) [***] and (b) [***]; and 

  

	 	(d)	 at AstraZeneca’s written request, Mereo shall supply to AstraZeneca such quantities of the Compound(s) and
Product(s) as [***] from time to time [***] to Manufacture such Compound(s) and Product(s) until the earlier of (a) such time as AstraZeneca has established an alternate, validated source of supply for the Compound(s) and Product(s) and
AstraZeneca is receiving supply from such alternative source and (b) the [***] of the effective date of termination of this Agreement. 

  

	15.1.3	 In addition to the provisions of Sections 15.1.1 and 15.1.2: 

 

	 	(a)	 if Mereo exercises its right to terminate this Agreement in its entirety pursuant Section 14.2.1
(Termination for Material Breach) or 14.2.3 (Termination for Insolvency):AstraZeneca shall have the [***] option for a period of [***] days after such termination to negotiate for an exclusive license for all Confidential Information
and Patents Controlled by Mereo and its Affiliates claiming Inventions developed under the Agreement by Mereo and its Affiliates claiming the composition or methods of use or Manufacture of Compounds or Products; and 

 

	 	(b)	 if Mereo exercises its right to terminate this Agreement in its entirety pursuant to Section 14.2.2
(Termination by Mereo), or AstraZeneca exercises its right to terminate this Agreement in its entirety pursuant to Section 14.2.1 (Termination for Material Breach) or 14.2.3 (Termination for Insolvency):

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 50 

	 	(i)	 Mereo shall and hereby does, and shall cause its Affiliates to, grant to AstraZeneca solely for the
Exploitation in the Territory in the Field of any Compound(s) or Product(s): 

  

	 	(A)	 [***] royalty-free license with the right to grant multiple tiers of sublicenses, in and to all Confidential
Information of Mereo and its Affiliates [***] to the Compound(s) or any Product(s); and 

  

	 	(B)	 [***] license with the right to grant multiple tiers of sublicenses, in and to all Confidential Information of
Mereo and its Affiliates [***] of any Compound(s) or any Product(s). In the interest of clarity, the non-exclusive license would only to Exploit Compounds or Product(s); and 

 

	 	(ii)	 Mereo shall and hereby does, and shall cause its Affiliates to, effective as of the effective date of
termination, grant AstraZeneca solely for the Exploitation in the Territory of any Compound(s) or Product(s) in the Field: 

  

	 	(A)	 [***], royalty-free license, with the right to grant multiple tiers of sublicenses, in and to all:

  

	 	(I)	 Patents Controlled by Mereo or its Affiliates claiming Inventions [***] to the [***] of Compounds or Products;
and 

  

	 	(II)	 Know-How Controlled by Mereo or its Affiliates [***] to the [***] of
Compounds or Products; and 

  

	 	(B)	 [***] license, with the right to grant multiple tiers of sublicenses, in and to all: 

 

	 	(I)	 Patents Controlled by Mereo or its Affiliates claiming Inventions [***] Compounds or Products by Mereo or its
Affiliates; and 

  

	 	(II)	 Know-How Controlled by Mereo or its Affiliates [***] Compounds or
Products by Mereo or its Affiliates; and 

  

	 	(C)	 [***], royalty-free license, with the right to grant multiple tiers of sublicenses, in and to all, together
with a right of reference, Regulatory Documentation (including any Regulatory Approvals) then Controlled by Mereo or any of its Affiliates. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 51 

	15.2	 Remedies 

Except as otherwise expressly provided herein, termination of this Agreement in accordance with the provisions hereof shall not limit any
remedies that may otherwise be available in law or equity and shall be without prejudice to the rights of either Party against the other then accruing or accrued under this Agreement. For clarity, on any expiry or termination of this Agreement on or
after the Option Exercise Date, each Party shall retain all rights that may otherwise be available in law or equity to pursue any remedy available to such Party for the material breach of the other Party. 

 

	15.3	 Accrued Rights; Surviving Obligations 

Termination or expiration of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit of a
Party prior to such termination or expiration. Such termination or expiration shall not relieve a Party from obligations that are expressly indicated to survive the termination or expiration of this Agreement. Without limiting the foregoing,
(a) Sections 1, 2.5, 2.6, 3.4, 5.3, 7.3, 8.10, 8.12, 8.13, 8.14, 9.1, 10, 13.1 to 13.4, 14.1, 15, 16.5 to 16.8 and 16.9 to 16.18 of this Agreement shall survive the termination or expiration of this Agreement for any reason and (b) the
grants in Section 2.1 shall survive the expiration of the Term in accordance with Section 14.1. 
  

	16.	 MISCELLANEOUS 

 

	16.1	 Force Majeure 

Neither Party shall be held liable or responsible to the other Party or be deemed to have defaulted under or breached this Agreement for
failure or delay in fulfilling or performing any term of this Agreement (other than an obligation to make payments) when such failure or delay is caused by or results from events beyond the reasonable control of the
non-performing Party, including fires, floods, earthquakes, hurricanes, embargoes, shortages, epidemics, quarantines, war, acts of war (whether war be declared or not), terrorist acts, insurrections, riots,
civil commotion, strikes, lockouts or other labor disturbances (other than a labor disturbance involving the workforce of the non-performing Party where such event is within the reasonable control of the non-performing Party), acts of God or acts, omissions or delays in acting by any governmental authority (except to the extent such delay results from the breach by the
non-performing Party or any of its Affiliates of any term or condition of this Agreement). The non-performing Party shall notify the other Party of such force majeure
within [***] days after such occurrence by giving written notice to the other Party stating the nature of the event, its anticipated duration and any action being taken to avoid or minimize its effect. The suspension of performance shall be of no
greater scope and no longer duration than is necessary and the non-performing Party shall use commercially reasonable efforts to remedy its inability to perform. 

 

	16.2	 Export Control 

This Agreement is made subject to any restrictions concerning the export of products or technical information from the United States or other
countries that may be imposed on the Parties from time to time. Each Party agrees that it will not export, directly or indirectly, any technical information acquired from the other Party under this Agreement or any products using such technical
information to a location or in a manner that at the time of export requires an export license or other governmental approval, without first obtaining the written consent to do so from the appropriate agency or other governmental entity in
accordance with Applicable Law. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 52 

	16.3	 Assignment 

  

	16.3.1	 Neither Party may assign its rights or delegate its obligations under this Agreement, whether by operation of
law or otherwise, in whole or in part without the prior written consent of the other Party, which consent shall not be unreasonably withheld, conditioned or delayed, except that each Party shall have the right, without such consent, (i) to
perform any or all of its obligations and exercise any or all of its rights under this Agreement through any of its Affiliates or its or their (sub)licensees, and (ii) assign any or all of its rights and delegate any or all of its obligations
hereunder to any of its Affiliates or its or their (sub)licensees or to any successor in interest (whether by merger, acquisition, asset purchase or otherwise) to all or substantially all of the business to which this Agreement relates; provided
that such assigning Party shall provide written notice to the other Party within [***] days after such assignment or delegation, [***]. 

  

	16.3.2	 In the event that Mereo assigns (or otherwise transfers) the Option Intellectual Property to any Third Party
(following Mereo’s exercise of the Option), Mereo shall assign its rights and obligations under this Agreement to the assignee of the Option Intellectual Property such that the assignee shall be bound by such obligations in place of Mereo,
provided that [***] to [***] under Section [***] in the event: (i) such assignment or transfer [***]; and (ii) [***]. Mereo shall provide written notice to AstraZeneca within [***] days after any such assignment. 

 

	16.3.3	 Any successor of a Party or any assignee of all of a Party’s rights under this Agreement pursuant to this
Section 16.3 that has also assumed all of such Party’s obligations hereunder in writing shall, upon any such succession or assignment and assumption, be deemed to be a party to this Agreement as though named herein in substitution for the
assigning Party, whereupon the assigning Party shall cease to be a party to this Agreement and shall cease to have any rights or obligations under this Agreement. All validly assigned rights of a Party shall inure to the benefit of and be
enforceable by, and all validly delegated obligations of such Party shall be binding on and be enforceable against, the successors and assigns of such Party pursuant to this Section 16.3; provided that such Party, if it survives, shall remain
jointly and severally liable for the performance of such delegated obligations under this Agreement. 

  

	16.3.4	 In the event that Mereo wishes to assign (or otherwise transfer) part, but not all, of the Option Intellectual
Property to any Third Party (following Mereo’s exercise of the Option) (i) the Parties shall in good faith agree any amendments to this Agreement that may be necessary to reflect such partial assignment and (ii) following such
amendment, Mereo shall assign such Option Intellectual Property together with applicable rights and obligations under this Agreement to the assignee of the Option Intellectual Property such that the assignee shall be bound by such obligations.

  

	16.3.5	 Any attempted assignment or delegation in violation of this Section 16.3 shall be void and of no effect.

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 53 

	16.4	 Subcontracting 

Subject to Section 2.2, Mereo may subcontract with a Third Party to perform any or all of its obligations hereunder (including by
appointing one or more distributors). Mereo shall remain at all times responsible for the performance of its subcontractors and the appointment of a subcontractor shall not relieve Mereo of its obligations under this Agreement, except to the extent
they are satisfactorily performed by such subcontractor. 
  

	16.5	 Severability 

If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future law and if the rights or
obligations of either Party under this Agreement will not be materially and adversely affected thereby, (i) such provision shall be fully severable, (ii) this Agreement shall be construed and enforced as if such illegal, invalid or
unenforceable provision had never comprised a part hereof, (iii) the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance
here from and (iv) in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible and reasonably acceptable to the Parties. To the fullest extent permitted by Applicable Law, each Party hereby waives any provision of law that would render any provision hereof illegal, invalid or
unenforceable in any respect. 
  

	16.6	 Dispute Resolution 

 

	16.6.1	 If a dispute arises between the Parties in connection with or relating to this (a) Agreement or
(b) any document or instrument delivered in connection herewith (collectively, (a) and (b), a “Dispute”), then either Party shall have the right to refer such Dispute to the Senior Officers for attempted resolution by good
faith negotiations during a period of [***]. Any final decision mutually agreed to by the Senior Officers shall be conclusive and binding on the Parties. For purposes of referrals under this Section 16.6.1, it will be sufficient for a Party to
send notice (a “Notice of Arbitration”) of the Dispute to the Senior Officers of the other Party, and no meeting among the Senior Officers shall be required. 

 

	16.6.2	 Any Dispute not resolved by the Senior Officers within such [***] period, shall be determined by arbitration
administered by the [***] in accordance with its International Arbitration Rules. The number of arbitrators (each, an “Arbitrator”) shall be three (3). Each of the Arbitrators must have experience with disputes related to the
pharmaceutical industry. Within [***] days after the filing of the Notice of Arbitration, each of Mereo and AstraZeneca shall simultaneously appoint one (1) Arbitrator. Within [***] days after the appointment of the two party-appointed
Arbitrators, the two party-appointed Arbitrators shall appoint the third Arbitrator, who shall serve as the chair of the tribunal. Any Arbitrator not appointed within these time limits shall be appointed by the [***]. The place of arbitration shall
be [***]. Judgment may be entered upon any award in [***] (to the jurisdiction of which the Parties irrevocably and unconditionally submit for themselves and their property, and waive any jurisdictional objection or challenge to such courts,
including without limitation the defense of inconvenient forum), or any other court of competent 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 54 

	 	
jurisdiction. The parties undertake to keep confidential all awards in their arbitration, together with all materials in the proceedings created for the purpose of the arbitration and all other
documents produced by another party in the proceedings not otherwise in the public domain, save and to the extent that disclosure may be required of a party by legal duty, to protect or pursue a legal right or to enforce or challenge an award in
legal proceedings before a court or other judicial authority. The Arbitrators shall award to the prevailing party, if any, as determined by the Arbitrators, its reasonable attorneys’ fees and costs. Unless the Parties otherwise agree in
writing, during the period of time that any arbitration proceeding described in this Section 16.6.2 is pending under this Agreement, the Parties shall continue to comply with all those terms and provisions of this Agreement that are not the
subject of such pending arbitration proceeding. 

  

	16.7	 Governing Law, Jurisdiction and Service 

 

	16.7.1	 Governing Law 

This Agreement shall be governed by and construed in accordance with the Laws of the State of New York, excluding any conflicts or choice of
law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction. The Parties agree to exclude the application to this Agreement of the United Nations Convention on
Contracts for the International Sale of Goods. The Federal Arbitration Act shall govern the interpretation, enforcement, and proceedings pursuant to the arbitration clause in this Agreement. 

 

	16.7.2	 Service 

Each Party further agrees that service of any process, summons, notice or document by registered mail to its address set forth in
Section 16.8.2 shall be effective service of process for any action, suit or proceeding brought against it under this Agreement in any such court. 
  

	16.8	 Notices 

  

	16.8.1	 Notice Requirements 

Any notice, request, demand, waiver, consent, approval or other communication permitted or required under this Agreement shall be in writing,
shall refer specifically to this Agreement and shall be deemed given only if delivered by hand or sent by email transmission (with transmission confirmed) or by internationally recognized overnight delivery service that maintains records of
delivery, addressed to the Parties at their respective addresses specified in Section 16.8.2 or to such other address as the Party to whom notice is to be given may have provided to the other Party in accordance with this Section 16.8.1.
Such Notice shall be deemed to have been given as of the date delivered by hand or transmitted by email (with transmission confirmed) or on the second Business Day (at the place of delivery) after deposit with an internationally recognized overnight
delivery service. Any notice delivered by email shall be confirmed by a hard copy delivered as soon as practicable thereafter. This Section 16.8.1 is not intended to govern the
day-to-day business communications necessary between the Parties in performing their obligations under the terms of this Agreement. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 55 

	16.8.2	 Address for Notice 

If to Mereo, to: 
 Mereo
BioPharma 4 Limited 
 1 Cavendish Place 

London W1G 0QF 
 United Kingdom

 Attention: General Counsel 

Email: [***] 
 with copies (which
shall not constitute notice) to: 
 Mereo BioPharma Group plc 

1 Cavendish Place 
 London W1G
0QF 
 United Kingdom 

Attention: General Counsel 

Email: [***] 
 and 

Latham & Watkins LLP 

140 Scott Drive 
 Menlo Park, CA
94025 
 Attention: [***] 

Email: [***] 
 If to AstraZeneca,
to: 
 AstraZeneca UK Limited 

Macclesfield, Cheshire, SK10 2NA 

Attention: Deputy General Counsel, Corporate 

Email: [***] 
 with a copy (which
shall not constitute notice) to: 
 Bristows LLP 

100 Victoria Embankment, London, EC4Y 0DH, United Kingdom 

Attention: [***] 
 Email: [***]

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 56 

	16.9	 Entire Agreement; Amendments 

This Agreement, together with the Schedules attached hereto, the Subscription Deed and the Parent Company Guarantee, sets forth and constitutes
the entire agreement and understanding between the Parties with respect to the subject matter hereof and all prior agreements, understandings, promises and representations, whether written or oral, with respect thereto are superseded hereby. Each
Party confirms that it is not relying on any representations or warranties of the other Party except as specifically set forth in this Agreement. No amendment, modification, release or discharge shall be binding on the Parties unless in writing and
duly executed by authorized representatives of both Parties. In the event of any inconsistencies between this Agreement and any schedules or other attachments hereto, the terms of this Agreement shall control. 

 

	16.10	 English Language 

This Agreement shall be written and executed in and all other communications under or in connection with this Agreement shall be in, the
English language. Any translation into any other language shall not be an official version thereof and in the event of any conflict in interpretation between the English version and such translation, the English version shall control. 

 

	16.11	 Equitable Relief 

Each Party acknowledges and agrees that the restrictions set forth in Sections 10 and 11 are reasonable and necessary to protect the legitimate
interests of the other Party and that such other Party would not have entered into this Agreement in the absence of such restrictions and that any breach or threatened breach of any provision of such Sections may result in irreparable injury to such
other Party for which there will be no adequate remedy at law. In the event of a breach or threatened breach of any provision of such Sections, the non- breaching Party shall be authorized and entitled to seek
from any court of competent jurisdiction injunctive relief, whether preliminary or permanent, specific performance and an equitable accounting of all earnings, profits and other benefits arising from such breach, which rights shall be cumulative and
in addition to any other rights or remedies to which such non-breaching Party may be entitled in law or equity. Both Parties agree to waive any requirement that the other (i) post a bond or other security
as a condition for obtaining any such relief and (ii) show irreparable harm, balancing of harms, consideration of the public interest or inadequacy of monetary damages as a remedy. Nothing in this Section 16.11 is intended or should be
construed, to limit either Party’s right to equitable relief or any other remedy for a breach of any other provision of this Agreement. 
  

	16.12	 Waiver and Non-Exclusion of Remedies 

Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver
shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. The waiver by either Party hereto of any right hereunder or of the failure to perform or of a breach by the other
Party shall not be deemed a waiver of any other right hereunder or of any other breach or failure by such other Party whether of a similar nature or otherwise. The rights and remedies provided herein are cumulative and do not exclude any other right
or remedy provided by Applicable Law or otherwise available except as expressly set forth herein. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 57 

	16.13	 No Benefit to Third Parties 

The covenants and agreements set forth in this Agreement are for the sole benefit of the Parties hereto and their successors and permitted
assigns and they shall not be construed as conferring any rights on any other Persons. 
  

	16.14	 Further Assurance 

Each Party shall duly execute and deliver or cause to be duly executed and delivered, such further instruments and do and cause to be done such
further acts and things, including the filing of such assignments, agreements, documents and instruments, as may be necessary or as the other Party may reasonably request in connection with this Agreement or to carry out more effectively the
provisions and purposes hereof or to better assure and confirm unto such other Party its rights and remedies under this Agreement. 
  

	16.15	 Relationship of the Parties 

It is expressly agreed that AstraZeneca, on the one hand and Mereo, on the other hand, shall be independent contractors and that the
relationship between the two Parties shall not constitute a partnership, joint venture or agency. Neither AstraZeneca, on the one hand, nor Mereo, on the other hand, shall have the authority to make any statements, representations or commitments of
any kind or to take any action, that will be binding on the other, without the prior written consent of the other Party to do so. All persons employed by a Party shall be employees of such Party and not of the other Party and all costs and
obligations incurred by reason of any such employment shall be for the account and expense of such first Party. 
  

	16.16	 References 

Unless otherwise specified, (1) references in this Agreement to any Section or Schedule shall mean references to such Section or Schedule
of this Agreement, (ii) references in any Section to any clause are references to such clause of such Section and (iii) references to any agreement, instrument or other document in this Agreement refer to such agreement, instrument or
other document as originally executed or, if subsequently amended, replaced or supplemented from time to time, as so amended, replaced or supplemented and in effect at the relevant time of reference thereto. 

 

	16.17	 Construction 

Except where the context otherwise requires, wherever used, the singular shall include the plural, the plural the singular, the use of any
gender shall be applicable to all genders and the word “or” is used in the inclusive sense (and/or). Whenever this Agreement refers to a number of days, unless otherwise specified, such number refers to calendar days. The captions of this
Agreement are for convenience of reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision contained in this Agreement. The term

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 58 

 
“including,” “include,” or “includes” as used herein shall mean including, without limiting the generality of any description preceding such term. The language of
this Agreement shall be deemed to be the language mutually chosen by the Parties and no rule of strict construction shall be applied against either Party hereto. 
  

	16.18	 Counterparts 

This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. This Agreement may be executed by PDF format via email or other electronically transmitted signatures and such signatures shall be deemed to bind each Party hereto as if they were original signatures. 

[Signature Page Follows] 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 59 

 EXECUTION PAGE TO EXCLUSIVE LICENSE AND OPTION AGREEMENT 

IN WITNESS WHEREOF this Agreement is duly executed by the authorized representatives of the Parties as of the date first written above.

  

			
	ASTRAZENECA AB PUBL
		
	By:	 	 /s/ Jan-Olof Jacke

	Name:	 	
	Title:	 	President AstraZeneca AB

  

			
	MEREO BIOPHARMA 4 LIMITED
		
	By:	 	 /s/ Denise Scots-Knight

	Name:	 	
	Title:	 	Chief Executive Officer and Director

  
 60 

 SCHEDULE 1.3 

ADDITIONAL STUDIES 
  

	1.	 DESCRIPTION OF ADDITIONAL STUDIES 

[***] 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 61 

 SCHEDULE 1.25 

[***] 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 62 

 SCHEDULE 1.79 

OPTION PATENTS 
 [***] 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 63 

 SCHEDULE 10.4 

AGREED PRESS RELEASE 
 THE
INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE,
THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN 
 Mereo BioPharma Group plc 

(“Mereo” or “Mereo BioPharma” or the “Company” or the “Group”) 

Mereo BioPharma announces agreement with AstraZeneca AB (“AstraZeneca”) 

for an exclusive license and option to acquire AZD9668 

Highlights 
  

	 	•	 	 Potential novel oral therapy for the orphan disease alpha-1
antitrypsin deficiency  

  

	 	•	 	 Substantive and supportive clinical data package available from studies in linked respiratory diseases;
c.1,000 patients have been treated with the drug with positive data on safety, tolerance and efficacy 

  

	 	•	 	 Initial upfront consideration and planned Phase II study to be funded from the Company’s existing
resources 

  

	 	•	 	 AstraZeneca to become a shareholder in Mereo 

London, XX October 2017 – Mereo BioPharma Group plc (AIM: MPH), a clinical stage, UK-based,
biopharmaceutical company focused on rare and specialty diseases, today announces that it has reached an agreement with AstraZeneca for an exclusive license, including an option to acquire, AZD9668, an oral inhibitor of neutrophil elastase. Under
the exclusive license the Company plans to conduct a Phase II study for the treatment of alpha-1 antitrypsin deficiency (“AATD”), a congenital orphan condition. The Company has the right to exercise
its option to acquire AZD9668 after the initiation of pivotal studies. 
 Denise Scots-Knight, CEO of Mereo BioPharma Group plc commented: 

“We are delighted to have closed this agreement with AstraZeneca for AZD9668 in furtherance of our stated strategy of building a portfolio of products
focussed on rare and speciality diseases. We believe that this neutrophil elastase inhibitor has potential as an effective, orally available treatment for alpha-1 antitrypsin deficiency, an undertreated orphan
condition that results in progressive lung destruction. The structure of this license and option agreement allows us to complete the Phase II study with our existing resources before triggering additional payments to acquire the asset
outright.” 
 “AstraZeneca has generated a substantial clinical data package on AZD9668 which includes extensive Phase II studies in
several respiratory conditions that will inform the initial Phase II clinical study we are planning for AATD. We believe that the neutrophil elastase inhibitor AZD9668 could provide a new innovative approach for the treatment of AATD, which affects
approximately 100,000 patients in the US and 120,000 patients in Europe.” “As part of this agreement, we also welcome AstraZeneca as another large pharma shareholder in the Company, alongside Novartis.” 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 64 

 Kumar Srinivasan, Vice President of Scientific Partnering & Alliances at AstraZeneca added: 

“This transaction reaffirms AstraZeneca’s commitment to patients by re-positioning an asset into an orphan
indication with a high unmet need. We will continue to divest or out-license deprioritized assets where we believe it will help accelerate the development of new medicines.” 

Professor Sandy Sandhaus MD, PhD, FCCP said: “Alpha-1 antitrypsin deficiency is a debilitating disease with
limited treatment options. Available data to date suggests AZD9668 may be effective in treating this condition. I welcome Mereo’s clinical development programme that will evaluate its potential in this setting.” 

Robert A. (Sandy) Sandhaus, MD, PhD, FCCP is Professor of Medicine at National Jewish Health in Denver CO and a leading expert in the treatment of AATD. He is
also the Medical Director at AlphaNet, a patient advocacy organisation for patients with AATD, and Clinical Director of the Alpha-1 Foundation that promotes research and development of new therapies for the
treatment of AATD. 
 A conference call for analysts will be held today at 1pm GMT see below for details. 

Outline of deal terms 
 Mereo has acquired the license and
option to acquire AZD9668 for an initial upfront payment totalling US $5 million, in a combination of US $3 million in cash and the issue of • new ordinary shares in the capital of the Company (“New Ordinary Shares”) to
satisfy the balance of the upfront payment. The New Ordinary Shares are expected to be issued to AstraZeneca on or around • 2017. 
 Additional
deferred payments in cash and in new ordinary shares would be payable on certain milestones based on completion and success of the proof of concept study in AATD and upon the initiation of a potentially pivotal study in this indication. 

Additional global filing and approval milestones are payable following successful pivotal data. Under the agreement, following product launch, if approved,
the Company will pay AstraZeneca commercial milestones, sales-related payments and royalties, each in line with rates for analogous licensing deals for drugs at this stage of development. 

The cash element of the upfront payment for the option purchase and the initial Phase II study will be funded from the Company’s existing financial
resources. 
 Application will be made for the New Ordinary Shares to be admitted to trading on the AIM market operated by the London Stock Exchange and
admission is expected to become effective and dealings in the New Ordinary Shares on the London Stock Exchange are expected to commence on or around • 2017. The New Ordinary Shares, when issued, will rank pari passu with the existing
ordinary shares in the capital of the Company. 
 Following the issue of the New Ordinary Shares, the total number of shares in issue will be •
ordinary shares, each with voting rights. Therefore, the total number of voting rights in the Company with effect from such date will be •. This figure may be used from such date by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to notify their interest, or a change to their interest, in the Company under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 65 

 About AATD 

AATD is a genetic disorder that affects approximately 100,000 patients in the United States and 120,000 patients in Europe
[rarediseases.org/rare-diseases/alpha-1-antitrypsin-deficiency]. It can cause severe debilitating conditions such as chronic liver disease but, most notably,
pulmonary emphysema, which is a life-threatening disease. Pulmonary emphysema results in irreversible destruction of the tissues supporting the function of the lungs and causing severe shortness of breath and wheeze. Patients typically present
between the ages of 20 and 50 and have both a significantly reduced quality of life and a reduced life expectancy. 
 The lung damage in AATD results from
loss of the normal protective effect of alpha-1 antitrypsin against the damaging enzymes released during inflammation, specifically neutrophil elastase. 

Current standard of care for AATD varies from country to country. Protein replacement therapy, involving weekly infusions of plasma-derived alpha 1
antitrypsin is approved but is only reimbursed in the United States and some European countries. By suppressing neutrophil elastase through a more easily administered oral treatment, Mereo believes AZD9668 has significant differentiation from the
current protein replacement therapy. 
 AstraZeneca has conducted a number of Phase I and Phase II clinical studies with AZD9668 in respiratory conditions
that share some common pathology with AATD, specifically chronic obstructive pulmonary disease (“COPD”), cystic fibrosis and bronchiectasis. Approximately 1,000 patients have been treated with the drug in clinical studies to date. These
studies have shown AZD9668 to be safe and well-tolerated. They have also generated signals of efficacy in lung function and biomarker data that are consistent with an elastase-mediated mechanism of action. 

Mereo intends to initiate a Phase II study in AATD in 2018. This Phase II study is expected to be a 12-week
randomized, placebo controlled, study that will evaluate two doses of AZD9668 in approximately 150 patients with the PiZZ and NULL genetic mutations. These mutations are seen in the more severely affected patients who have very low (PiZZ) or zero
(NULL) alpha-1 antitrypsin levels. Mereo expects to leverage the internal expertise and respiratory disease key opinion leader network that it has assembled for the development of acumapimod to develop
AZD9668. 
 Analyst conference call 
 A conference call
for analysts will be held today at 1pm GMT. To participate please dial: 
 United Kingdom: +44 3333000804 

United States: +1 6319131422 
 PIN: 33714203# 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 66 

 For Further Enquiries: 
  

			
	Mereo BioPharma Group plc	  	+44 (0)333 023 7319
	Denise Scots-Knight, Chief Executive Officer	  	
	Richard Jones, Chief Financial Officer	  	
		
	 Nominated Adviser and Joint Broker

Cantor Fitzgerald Europe
	  	+44 (0)20 7894 7000
	Phil Davies	  	
	Will Goode	  	
		
	 Joint Broker
 RBC Capital
Markets
	  	+44 (0)20 7653 4000
	Rupert Walford	  	
	Laura White	  	
		
	 Public Relations Adviser to Mereo BioPharma

FTI Consulting
	  	+44 (0)20 3727 1000
	Ben Atwell	  	
	Simon Conway	  	
	Brett Pollard	  	
		
	 US Public Relations Advisor to Mereo BioPharma

Burns McClellan
	  	+01 (0) 212 213 0006
	Lisa Burns	  	
	Steven Klass	  	

 About Mereo 
 Mereo
BioPharma is an innovative biopharma company established to address the R&D and financial challenges faced by an increasing number of large pharma and biotech companies. Mereo focuses on developing and optimizing the value of novel medicines
acquired from large pharma and biotech designed to address significant unmet medical needs in rare and specialty disease areas. 
 Mereo is comprised of a
strong team with broad operational capabilities and the financial resources to conduct comprehensive clinical studies. The Company plans to build a rare and orphan commercial business combined with plans to partner where appropriate. 

Mereo’s existing portfolio consists of three mid-late stage clinical assets that were acquired from Novartis in
July 2015 each with proof of concept data in the indication that Mereo is now developing. BPS-804 is being developed for the prevention of fractures resulting from osteogenesis imperfecta (brittle bone
disease); acumapimod (BCT-197), is being developed to treat inflammation in patients with an AECOPD; and BGS-649 is a once-weekly oral novel therapy that restores the
patient’s own testosterone in men with hypogonadotropic hypogonadism. 
 In H1 2016 the Company initiated a Phase 2 study with acumapimod and a Phase
2b study with BGS-649. Mereo recently announced commencement of the first potentially pivotal Phase 2b trial for BPS-804 and completion of enrolment of both the
acumapimod Phase 2 study and the BGS-649 Phase 2b study. The acquisition of AZD9668 is in furtherance of the Company’s objective to build a portfolio of additional rare and specialty products acquired
from large pharmaceutical and biotechnology companies. The Company continues to actively evaluate other opportunities with this product profile. 

  
 [***] Certain information
in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

 
 67EX-10.25

 Exhibit 10.25 
  

 
 EXECUTION VERSION 

DATED 28 September 2018 
 (1)
MEREO BIOPHARMA GROUP PLC  
 (as Borrower) 

(2) THE GUARANTORS 
 (as
Guarantor)  
 (3) SILICON VALLEY BANK and KREOS CAPITAL V (UK) LIMITED  

(as Lenders)  
 (4) KREOS
CAPITAL V (UK) LIMITED  
 (as Agent)  

(5) KREOS CAPITAL V (UK) LIMITED  

(as Security Agent)  
  

 
 LOAN
AGREEMENT 
  
  

5 Fleet Place London EC4M 7RD 

Tel: +44 (0)20 7203 5000 ● Fax: +44 (0)20 7203 0200 ● DX: 19 London/Chancery Lane 

www.charlesrussellspeechlys.com 

 Loan Summary 

This summary is to facilitate reporting and is not binding on either the Lenders or the Borrower. 

 

			
	Term Loan Amount	  	 £20,455,000.
  

	Availability Period	  	 On or before 1 October 2018.
  

	Interest Rate	  	 8.5% fixed per annum.
  

	Loan Term	  	 Subject to clause 2.3, interest only until 30 April 2019, followed by equal monthly repayment of interest and principal until the Final
Repayment Date.
  

	Arrangement Fee	  	 0.5% of the Term Loan Amount payable on the Closing Date.

 

	Final Payment	  	 10.5% of the Term Loan Amount.
  

 CONTENTS 
  

							
	1	 	DEFINITIONS AND INTERPRETATIONS	  	 	3	 
			
	2	 	LOAN AND TERMS OF PAYMENT	  	 	3	 
			
	3	 	CONDITIONS OF LOANS	  	 	9	 
			
	4	 	SECURITY DOCUMENTS	  	 	13	 
			
	5	 	REPRESENTATIONS AND WARRANTIES	  	 	14	 
			
	6	 	AFFIRMATIVE COVENANTS	  	 	19	 
			
	7	 	BANKING AND FUTURE DEBT FINANCING	  	 	24	 
			
	8	 	FURTHER ASSURANCES	  	 	24	 
			
	9	 	NEGATIVE COVENANTS	  	 	25	 
			
	10	 	EVENTS OF DEFAULT	  	 	27	 
			
	11	 	FINANCE PARTIES RIGHTS, REMEDIES AND OBLIGATION	  	 	31	 
			
	12	 	GUARANTEE AND INDEMNITY	  	 	45	 
			
	13	 	NOTICES	  	 	48	 
			
	14	 	AGENCY AND SECURITY TRUST DEED	  	 	50	 
			
	15	 	CHOICE OF LAW AND JURISDICTION	  	 	50	 
			
	16	 	GENERAL PROVISIONS	  	 	50	 
			
	17	 	DEFINITIONS	  	 	54	 
		
	EXHIBIT A LOAN PAYMENT/ADVANCE REQUEST FORM	  	 	71	 
		
	EXHIBIT B COMPLIANCE CERTIFICATE	  	 	73	 
		
	EXHIBIT C CLIENT PAYMENT INSTRUCTIONS	  	 	75	 
		
	EXHIBIT D FORM OF ACCESSION DEED	  	 	76	 
		
	EXHIBIT E FORM OF PERFECTION CERTIFICATE	  	 	78	 
		
	EXHIBIT F PRIMARY AND SECONDARY ENDPOINTS	  	 	88	 
		
	EXHIBIT G REPAYMENT SCHEDULE	  	 	89	 
		
	SIGNATURE PAGE	  	 	90	 

  

 THIS LOAN AGREEMENT is made on 28 September 2018 

BETWEEN: 
  

	(1)	 MEREO BIOPHARMA GROUP PLC a public limited company established in England and Wales under company number
09481161 with registered office at 4th Floor, 1 Cavendish Place, London W1G 0QF (the “Borrower”); 

  

	(2)	 THE GUARANTORS; 

 

	(3)	 SILICON VALLEY BANK (“SVB”) a California corporation, with its principal place
of business at 3003 Tasman Drive, Santa Clara, California 95054 US and registered in England & Wales under numbers BR014561 and FC029579 acting through its UK branch at Alphabeta 14-18 Finsbury
Square, London, EC2A 1BR and KREOS CAPITAL V (UK) LIMITED (“Kreos”) a limited liability company incorporated under the laws of England & Wales with company number 09728300 and its registered office at
25 Old Burlington Street London W1S 3AN (each a “Lender” and together the “Lenders”); 

  

	(4)	 KREOS CAPITAL V (UK) LIMITED a limited liability company incorporated under the laws of
England & Wales with company number 09728300 and its registered office at 25 Old Burlington Street London W1S 3AN (in its capacity as agent the “Agent”); and 

 

	(5)	 KREOS CAPITAL V (UK) LIMITED a limited liability company incorporated under the laws of
England & Wales with company number 09728300 and its registered office at 25 Old Burlington Street London W1S 3AN (in its capacity as security agent the “Security Agent”). 

AGREED TERMS: 
  

	1	 DEFINITIONS AND INTERPRETATIONS  

Capitalised terms not otherwise defined in this Agreement shall have the meanings set out in Clause 17 (Definitions) and the principles
of interpretation set out in Clause 17 (Definitions) shall apply to this Agreement. 
  

	2	 LOAN AND TERMS OF PAYMENT  

 

	2.1	 Term Loan  

  

	 	2.1.1	 Facility  

Subject to the terms of this Agreement and during the Availability Period only, Kreos agrees to make available to the Borrower the Kreos
Commitment and SVB agrees to make available to the Borrower the SVB Commitment. The obligations of the Lenders to make the Kreos Commitment and the SVB Commitment are several. 

  
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	 	2.1.2	 Interim Payment  

If the Drawdown Date is not the first Business Day of a calendar month, the Borrower shall pay to the Agent on behalf of the Lenders on the
Drawdown Date (by way of deduction by the Agent of the amount of the Term Loan actually advanced to the Borrower on the Drawdown Date) the Interim Payment. 
  

	 	2.1.3	 Advance Payment  

Following the delivery by the Borrower of a Loan Payment/Advance Request Form to the Agent, the Borrower agrees (subject to and in accordance
with the Pay Off Confirmation) to pay to Agent on behalf of the Lenders an Advance Payment in respect of the Term Loan to be held by the Agent and applied in or towards payment of the last Monthly Repayment. 

 

	 	2.1.4	 Cancellation of unused Facility  

If the Facility is not drawn during its Availability Period, then the whole Facility shall be cancelled automatically at the end of such
Availability Period. 
  

	2.2	 Repayment  

  

	 	2.2.1	 The Obligors agree to pay to the Agent on behalf of the Lenders the unpaid principal amount of all Credit
Extensions and interest on the unpaid principal amount of any Credit Extensions as and when due in accordance with this Agreement and as per the Repayment Schedule accompanying the Loan Payment/Advance Request Form or as the same may subsequently be
updated or revised in accordance with the terms hereof. 

  

	 	2.2.2	 On the Final Repayment Date, the Obligors shall repay the Term Loan in full together with all accrued unpaid
interest and all other amounts accrued or outstanding under the Loan Documents. 

  

	 	2.2.3	 The initial Final Repayment Date of 1 March 2011 shall automatically be extended to 1 March 2022 upon
the Lenders confirming to the Borrower in writing (and the Lenders shall confirm so in writing, as soon as reasonably practicable), that the Lenders have received satisfactory evidence that (i) the
MPH-966 or BPS-205 Phase 2 trials have met all necessary primary endpoints as described in Exhibit F in line with the agreed trial designs;
and (ii) the MPH-966 or BPS-205 Phase 2 trials have met sufficient secondary endpoints as described in Exhibit F in line with the agreed
trial designs, such that there is agreement by the board of directors of the Borrower that the asset(s) can move into the next phase of clinical development via the Borrower or a partner organisation (subject to evidence of such agreement by the
board of directors of the Borrower also being provided). 

  
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	2.3	 Repayment of Term Loan 

 

	 	2.3.1	 The initial Repayment Schedule for the Term Loan shall state that, subject to Clause 2.3.2:

  

	 	(a)	 the Borrower shall only pay interest (and not principal) on the Term Loan for the period from (and including)
the Drawdown Date to (and including) 30 April 2019 (“Interest Only Period”); 

  

	 	(b)	 following the expiry of the Interest Only Period and up until the Final Repayment Date, the Borrower shall
repay the Term Loan in equal instalments of interest and principal on the first Business Day of each month in accordance with the Repayment Schedule (the “Monthly Repayments”) during such period. 

 

	 	2.3.2	 If prior to 30 April 2019, the Borrower shall deliver evidence satisfactory to the Lenders that
(i) the MPH-966 Phase 2 trial has commenced, and (ii) it has raised at least US$25,000,000 of additional cash from other sources (excluding cash raised from transactions giving rise to
Indebtedness which is secured and which has not otherwise been subordinated to the Obligations), then the Interest Only Period for the Term Loan shall continue until 31 December 2019 and the following Monthly Repayments shall reduce
accordingly. For the avoidance of doubt, nothing in this clause 2.3.2 shall operate to extend or has the effect of extending the Final Repayment Date. 

  

	2.4	 Permitted Prepayment of Term Loan 

 

	 	2.4.1	 The Borrower shall have the option to prepay the Term Loan (but not part of the Term Loan), advanced by Lenders
under this Agreement, provided that no Event of Default shall have occurred and be continuing and provided that the Borrower (i) provides written notice to Agent of its election to prepay the Term Loan at least fifteen (15) days prior to
such prepayment (save in the case of the Borrower being acquired or merged with another person in accordance with Clause 9.3 (Mergers or Acquisitions) where at least seven (7) days prior notice is required and such notice of prepayment
being conditional upon completion of merger or acquisition), and (ii) Borrower pays, on the date of such prepayment: 

  

	 	(a)	 all outstanding principal amount of the Term Loan plus all accrued and unpaid interest; 

 

	 	(b)	 future interest (as set out in the most recent Repayment Schedule issued by Agent), discounted at the rate of
four per cent. (4%) per annum, such discount being applied pro rata in respect of any part year (“Term Loan Early Termination Fee”); 

  
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	 	(c)	 the Final Payment, plus 

 

	 	(d)	 all other sums, if any, that shall have become due and payable, including any interest payable at the Default
Rate. 

  

	 	2.4.2	 If a payment date under Clause 2.2 (Repayment) falls on a day which is not a Business Day, the relevant
payment date shall be the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not). 

  

	2.5	 Mandatory Prepayment 

The Obligors shall promptly and without delay repay all Obligations should any of the following events occur: 

 

	 	2.5.1	 at any time any act, condition or thing required to be done, fulfilled or performed by an Obligor in order to:

  

	 	(a)	 enable that Obligor to lawfully enter into, exercise its rights under or perform the obligations expressed to
be assumed by it in the Loan Documents to which it is a party; 

  

	 	(b)	 ensure that the obligations expressed to be assumed by that Obligor in the Loan Documents to which it is a
party are legal, valid and binding save for any registration at Companies House under the Companies Act or any other registration at any applicable public register (including at the Intellectual Property Office in the UK and the US and HM Land
Registry (as applicable)); or 

  

	 	(c)	 make the Loan Documents to which it is a party admissible in evidence in England and Wales,

 is not done, fulfilled or performed within any time available to ensure compliance with the same. 

 

	 	2.5.2	 at any time it is or becomes unlawful for an Obligor to perform or comply with any of its material obligations
under the Loan Documents or such obligations are not, or cease to be, legal, valid and binding on any Obligor. 

  

	2.6	 Mandatory Prepayment upon an Acceleration 

 

	 	2.6.1	 If the Term Loan is accelerated following the occurrence of an Event of Default which is continuing, the
Obligors shall immediately pay to Agent an amount equal to the sum of: (i) all outstanding principal plus accrued interest and future interest, (ii) the Final Payment, plus (iii) all other sums, if any, that shall have become due and
payable, including interest at the Default Rate with respect to any past due and unpaid amounts. 

  
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	 	2.6.2	 The Agent shall have the right to issue a revised Repayment Schedule from time to time (and the Obligors
acknowledge that the amount required to be repaid pursuant to Clause 2.2 (Repayment) may be increased from time to time in accordance with any revised Repayment Schedule) if the Agent, having consulted and agreed in writing with any Obligor,
considers it necessary in order to ensure that, in respect of each Credit Extension, on the Final Repayment Date there will be no amounts owing from the Obligors to the Finance Parties pursuant to the Loan Documents. 

 

	2.7	 Purpose 

Borrower shall apply amounts borrowed by it under the Facility towards the Refinancing and its general working capital purposes. 

 

	2.8	 Final Payment 

On the earlier of: 
  

	 	2.8.1	 the Final Repayment Date; 

 

	 	2.8.2	 the date of a permitted prepayment of the whole of the Term Loan (in accordance with Clause 2.4 (Permitted
Prepayment of Term Loan)); 

  

	 	2.8.3	 the date of a mandatory repayment under Clause 2.5 (Mandatory Prepayment); or

  

	 	2.8.4	 the date of acceleration of the Facility prior to the Final Repayment Date (in accordance with Clause 2.6
(Mandatory Prepayment upon an Acceleration)); and 

  

	 	2.8.5	 when the Agent declares the Obligations immediately due and payable pursuant to Clause 11 (Finance Parties
rights, remedies and obligation), 

 an Obligor shall pay, in addition to the outstanding principal, accrued and unpaid
interest, and all other amounts due on such date with respect to the Term Loan, the Final Payment. 
  

	2.9	 Payment of Interest on Term Loan 

 

	 	2.9.1	 Interest Rate Term Loan 

Subject to Clause 2.9.2 (Default Rate), the Term Loan shall accrue interest at a fixed rate equal to eight and a half per cent. (8.5%)
per annum as more particularly set out in the Repayment Schedule. Interest shall be payable in accordance with Clause 2.9.5 (Payments) below. 
  

	 	2.9.2	 Default Rate 

Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall bear interest at a rate per annum which
is three per cent. (3%) above the rate that is otherwise applicable thereto (the 

  
 7 

 “Default Rate”) unless Agent otherwise elects from time to time in its
discretion to impose a smaller increase. Fees and expenses which are required to be paid by an Obligor pursuant to the Loan Documents (including Lender Expenses) but are not paid when due shall bear interest until paid at a rate equal to the Default
Rate. Payment or acceptance of the increased interest rate provided in this Clause 2.9.2 (Default Rate) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit
any rights or remedies of Lender. 
  

	 	2.9.3	 Computation 

In computing interest, the date of the making of any Credit Extension shall be included and the date of payment shall be excluded;
provided, however, that if any Credit Extension is repaid on the same day on which it is made, such day shall be included in computing interest on such Credit Extension. Interest on Term Loan is computed on the basis of a 365 day year for the
actual number of days elapsed. 
  

	 	2.9.4	 Debit of Accounts 

 

	 	(a)	 In the event any Obligor should fail to comply with the Obligations, the Finance Parties may debit any deposit
or operating account of any Obligor held with a Finance Party for principal and interest payments when due, or any other amounts any Obligor owes to the Finance Parties. 

 

	 	(b)	 The Finance Party shall promptly notify the relevant Obligor after it debits that Obligor’s accounts.

  

	 	2.9.5	 Payments 

  

	 	(a)	 Subject to Clause 2.3 (Repayment of Term Loan), the Borrower shall pay interest monthly on the first
calendar day of Repayment Date and in any event in accordance with the Repayment Schedule. 

  

	 	(b)	 If the Final Repayment Date is extended in accordance with Clause 2.2.3, the Monthly Repayment shall be
recalculated to account for such extension and Clause 2.3.2 (if applicable) on a basis consistent with prior Monthly Repayments and the Repayment Schedule shall be revised accordingly so that on the Final Repayment Date (as extended) there will be
no amounts owing from the Obligors to the Finance Parties pursuant to the Loan Documents. 

  
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	2.10	 Fees  

Borrower shall pay to Agent: 
  

	 	2.10.1	 Arrangement Fee  

A fully earned, non-refundable arrangement fee of the One Hundred Two Thousand Two Hundred and Seventy
Five Pounds (£102,275) due and payable on the Drawdown Date (the “Arrangement Fee”) to be deducted from the Term Loan Amount; 
  

	 	2.10.2	 Lender Expenses  

All Lender Expenses when due. For the avoidance of doubt, the deposit of Twelve Thousand and Five Hundred Pounds (inclusive of VAT)
(£12,500) (“Deposit”) held by the Agent shall be applied towards such Lender Expenses and the Arrangement Fee; and 
  

	 	2.10.3	 Final Payment  

The Final Payment, when due hereunder. 
  

	2.11	 Payments; Application of Payments  

 

	 	2.11.1	 All payments (including prepayments) to be made by any Obligor under any Loan Document shall be made in
immediately available funds, without set-off or counterclaim, before midday London time on the date when due. Payments of principal and/or interest received after midday London time are considered received at
the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable, shall continue to accrue until paid.

  

	 	2.11.2	 All payments of principal and interest (including prepayments) to be made by Borrower and all payments of any
fees due under this Agreement to be made by Borrower shall be made to Lenders accounts, as set out in Exhibit C (Client Payment Instructions) of this Agreement. 

 

	3	 CONDITIONS OF LOANS  

 

	3.1	 Conditions Precedent to Closing and Credit Extension of the Term Loan  

Closing is subject to the condition precedent that Agent shall have received, in form and substance satisfactory to Agent, such documents and
completion of such other matters, as Agent may reasonably deem necessary or appropriate (provided the Agent has notified the Borrower), including the following: 
  

	 	3.1.1	 this Agreement duly executed by Borrower and the Guarantors; 

 

	 	3.1.2	 the Security Documents (save as provided for in Clause 3.5.2 (Conditions Subsequent), each executed by
Borrower and/or Guarantors; 

  
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	 	3.1.3	 a certificate of a director of Obligors with respect to their constitutional documents and resolutions of the
relevant corporate bodies (i) approving the terms of, and the transactions contemplated by, the Loan Documents to which an Obligor is a party and resolving that it execute, deliver and perform the Loan Documents to which it is a party,
(ii) authorising a specified person or persons to execute the Loan Documents to which it is a party on its behalf, and (iii) authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be
signed and/or despatched by it under or in connection with the Loan Documents to which it is a party; 

  

	 	3.1.4	 the provision of a certified copy of the resolutions of each Obligor’s board of directors (other than in
respect of the Borrower, which shall provide resolutions from its duly appointed Finance Committee, which was constituted pursuant to a prior resolution of the directors of the Borrower at a board meeting of the Borrower on 26 September 2018)
authorising the transactions contemplated by this Loan Agreement and the execution and delivery to the Lender of this Loan Agreement and associated documents, including but not limited to, the Loan Documents; 

 

	 	3.1.5	 certified copies of the Certificate of Incorporation and the Memorandum and Articles of Association of each
Obligor; 

  

	 	3.1.6	 a certificate of a director of the Borrower and each Guarantor in the agreed form confirming that the borrowing
of the Loan Facility in full would not cause any borrowing limit binding on the Borrower or each Guarantor to be exceeded; 

  

	 	3.1.7	 specimen signatures, authenticated by a director or the company secretary of the Borrower and each Guarantor,
of the persons authorised to execute and deliver this Loan Agreement and associated documents including but not limited to, the Loan Documents, in the resolutions of the board of directors referred to in Clause 3.1.4; 

 

	 	3.1.8	 a Perfection Certificate in respect of the Obligors signed by a Responsible Officer of the Borrower;

  

	 	3.1.9	 an Agency and Security Trust Deed executed by Borrower; 

 

	 	3.1.10	 [Intentionally left blank]; 

 

	 	3.1.11	 the Subordination Agreement duly executed by Novartis, the Finance Parties and the Obligors;

  

	 	3.1.12	 the Warrant Instrument and Warrant Certificates in favour of Kreos Capital V (Expert Fund) LP and SVB
respectively; 

  

	 	3.1.13	 evidence reasonably satisfactory to Agent that the insurance policies required by Clause 6.5 (Insurance)
are in full force and effect; 

  
 10 

	 	3.1.14	 an excerpt from the website of the US National Library of Medicine in respect of clinical trials
(www.clinicaltrial.gov) evidencing that the Borrower is progressing the trial for BPS-205 under the new protocol amendment; 

 

	 	3.1.15	 payment of the fees and Lender Expenses then due and payable; 

 

	 	3.1.16	 signed consent for Lenders to: (i) use Borrower’s logo; (ii) use a tombstone to highlight the
transaction; and (iii) issue a press release in a form acceptable to Borrower and Lenders highlighting and summarising the credit facilities extended by Lenders to Borrower under this Agreement, for marketing purposes, provided that no press
release or other public announcement will be made by the Lenders until after the Borrower has made its own public announcement; 

  

	 	3.1.17	 the representations and warranties in Clause 5 (Representations and Warranties) shall be true in all
material respects on the Closing Date; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided further
that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no Event of Default shall have occurred and be continuing or result from Closing.

  

	 	3.1.18	 in Agent’s reasonable discretion, there has not been any material impairment in the general affairs,
management, results of operation, financial condition or the prospect of repayment of the Obligations, or any material adverse deviation by Borrower from the most recent business plan of Borrower presented to and accepted by Agent;

  

	 	3.1.19	 except as otherwise provided in Clause 3.3 (Covenant to Deliver), timely receipt of the Loan
Payment/Advance Request Form (which for the avoidance of doubt may be completed and submitted by the Borrower prior to the execution of this Agreement and which shall become effective upon the execution of this Agreement); 

 

	 	3.1.20	 Powers of Attorney for any documents required by this Agreement; and 

 

	 	3.1.21	 such other documents, and completion of such other matters, as Agent may reasonably deem necessary or
appropriate. 

  

	3.2	 [Intentionally left blank] 

 

	3.3	 Covenant to Deliver 

The Obligors agree to deliver to Agent each item required to be delivered to Agent under this Agreement as a condition precedent to any Credit
Extension. The Obligors expressly agree that a Credit Extension made prior to the receipt by Agent of any such item shall not constitute a waiver by Agent of Borrower’s obligation to deliver such item, and the making of any Credit Extension in
the absence of a required item shall be in Agent’s sole discretion. 

  
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	3.4	 Procedures for Borrowing  

 

	 	3.4.1	 Together with any such electronic or facsimile notification, Borrower shall deliver to Agent by electronic mail
or facsimile the completed Loan Payment/Advance Request Form executed by a Responsible Officer or his or her designee. Agent may rely on any telephone notice given by a person whom the Agent believes is a Responsible Officer or designee. Subject to
the prior satisfaction of all other applicable conditions to the making of the Term Loan set out in this Agreement and in accordance to Clause 2.1 (Term Loan) above, to obtain the Term Loan, Borrower must notify Agent (which
notice shall be irrevocable) by electronic mail, or telephone by midday London time on or before the Drawdown Date. Such notice shall be in the form of a completed Loan Payment/Advance Request Form in the form attached as Exhibit A and
shall specify (i) the date the Term Loan is to be made (which shall be the date of this Agreement); (ii) the amount of such Term Loan; and (iii) such other procedural requirements as Agent has notified to Borrower in advance of the
Drawdown Date. If such notification is by telephone, Borrower must promptly confirm the notification by delivering to Agent a completed Loan Payment/Advance Request Form in the form attached at Exhibit A. The Lenders shall
transfer the Term Loan to Borrower’s sterling deposit account held with Silicon Valley Bank. The Lenders may make the Term Loan based on instructions from a Responsible Officer or his or her designee or without instructions if the Term Loan is
necessary to meet Obligations which have become due. The Finance Parties may rely on any telephone notice given by a Person whom the Finance Parties reasonably believe is a Responsible Officer or designee. The Obligors shall indemnify the Finance
Parties for any loss the Finance Parties suffer due to such reliance unless caused by the Finance Parties negligence or intentional misconduct. 

  

	 	3.4.2	 Each of the Lenders and the Borrower acknowledge that an amount of the Term Loan Amount shall be applied
towards paying off the amount due under the Original Term Loan Facility Agreement. The precise amount so applied will be set out in the Pay Off Confirmation. Subject to Closing and the Drawdown Date occurring, the Lenders and the Obligors hereby
agree that on the Drawdown Date: 

  

	 	(a)	 the Original Term Loan Facility Agreement is cancelled and terminated as between themselves save for any
confidentiality obligations and other obligations which, by their terms, are to survive the termination of the Original Term Loan Facility Agreement (which shall remain in force in accordance with their terms); and 

  
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	 	(b)	 any Lien created in respect of the Original Term Loan Facility Agreement shall be released and discharged by
the Lenders with effect from the Drawdown Date. 

  

	3.5	 Conditions Subsequent  

 

	 	3.5.1	 Promptly and without delay after the Credit Extension of the Term Loan, the Borrower shall instruct its patent
agents or appropriate local counsel, to prepare and deliver the documents required to register the Lenders’ security interests over the Patents which exist as at the date of this Loan Agreement to the patent registries of UK, USA as soon as
possible and thereafter use all commercially reasonable endeavours to achieve registration of the Lenders’ security interests thereon. If any objection or challenge to such registration is received or if any delay in such registration occurs or
is likely to occur, the Borrower shall forthwith inform the Agent thereof, and, without prejudice to the Lenders rights hereunder, agree how to deal with such objection, challenge or delay. The Agent may, after having provided not less than 10
Business Days’ notice to the Borrower of its intention to do the following, take on the registration process from the Borrower at the cost of and with the continuing assistance of the Borrower at any time. 

 

	 	3.5.2	 The Borrower shall, as soon as reasonably practicable and in any event no later than 21 days from the date of
this Agreement, deliver to the Agent the original Guarantor 5 Debenture (and any relevant notices and/or documents annexed to it) duly executed by Guarantor 5. 

 

	4	 SECURITY DOCUMENTS  

 

	4.1	 All Obligations shall be secured by any and all present and future properties, rights and assets of Obligors,
in respect of which Obligors have granted to Security Agent a security interest now, or in the future, as set out in the Debentures and all other security agreements, mortgages or other collateral granted by an Obligor to Security Agent as security
for the Obligations now or in the future (collectively, such properties, rights and assets being the “Collateral”). Each Obligor represents, warrants and covenants that the security interests granted or to be granted in favour of
Security Agent, save in respect of the Permitted Liens, shall at all times after the creation and initial perfection of such interest in favour of the Security Agent continue to be a first priority perfected security interest in the Collateral (it
being acknowledged by the parties hereto that perfection of a security interest shall only be required to the extent (and in the jurisdictions) set out in the Loan Documents). If this Agreement is terminated, Security Agent’s Lien and security
interest in the Collateral shall continue until the Obligations are fully satisfied. 

  
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	5	 REPRESENTATIONS AND WARRANTIES  

Each Obligor, as the case may be, represents and warrants to the Finance Parties as follows: 

 

	5.1	 Due Incorporation and Authorisation; Power and Authority  

 

	 	5.1.1	 The Borrower is a public company and each Guarantor is a private company with limited liability, duly
incorporated and validly existing under the laws of England and Wales (save in respect of Guarantor 5, which is duly incorporated and validly existing under the laws of the Republic of Ireland) and has power to carry on its business as it is now
being conducted and to own its property and other assets. In connection with this Agreement, the Borrower has delivered to the Agent a certificate signed by it and, entitled “Perfection Certificate” (the “Perfection
Certificate”) relating to itself and each Guarantor. Each Obligor represents and warrants to the Finance Parties that: (a) its exact legal name is that indicated on the Perfection Certificate and on the signature page hereof;
and (b) it is an organisation of the type, and is incorporated in the jurisdiction, set out in the Perfection Certificate; and (c) the Perfection Certificate accurately sets out each Obligor’s registered number; and (d) the
Perfection Certificate accurately sets out such Obligor’s corporate seat and its registered office as well as such Obligor’s postal address if different from its registered office, and (e) all other information set out in the
Perfection Certificate pertaining to such Obligor and each of its Subsidiaries including as to its assets and liabilities, the material Copyrights, Trademarks and Patents is accurate and complete (it being understood and agreed that such Obligor may
from time to time update certain information in the Perfection Certificate after the Closing Date to the extent permitted by one or more specific provisions in this Agreement). 

 

	 	5.1.2	 The execution, delivery and performance of this Agreement and the other Loan Documents to which any Obligor is
a party are within the corporate powers of such Obligor, have been duly authorised by all necessary corporate and other action and do not and will not conflict with (i) any law or regulation applicable to it; (ii) the constitutional
documents of such Obligor or any other organisational documents; (iii) any agreement or instrument binding on such Obligor or (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any
Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect and customary filings with any Governmental Authority necessary to register or perfect any Lien created pursuant to the Loan
Documents) or (v) constitute an event of default under any material agreement by which such Obligor is bound. Each Obligor is not in default under any agreement to which it is a party or by which it or its assets are bound in which the default
could reasonably be expected to have a material adverse effect on such Obligor’s business. 

  

	5.2	 Collateral  

  

	 	5.2.1	 Each Obligor has good title to the Collateral, free of Liens except Permitted Liens or any Lien arising in the
ordinary course of business of such Obligor 

  
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which is discharged in the ordinary course of business of such Obligor. Each Obligor has no deposit accounts other than the deposit accounts, if any, described in the Perfection Certificate
delivered to Agent in connection herewith, or of which such Obligor has given Agent notice and taken such actions as are necessary to give Security Agent a perfected security interest therein. The Accounts are bona fide, existing obligations of each
relevant Account Debtor. 
  

	 	5.2.2	 The Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise
provided in the Perfection Certificate. None of the components of any tangible Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to Clause 9.6 (Encumbrance).

  

	 	5.2.3	 Each Obligor is the sole owner of the Intellectual Property which it owns or purports to own except for (a) non-exclusive licences granted to its customers, agents, partners or suppliers, in the ordinary course of business,
(b) over-the-counter software that is commercially available to the public, and (c) material Intellectual Property licensed or
sub-licensed to such Obligor and noted on the Perfection Certificate. Save in respect of any Permitted Liens, each Obligor’s Intellectual Property is not subject to any Liens. To the knowledge of each
Obligor, each Patent which it owns or purports to own and which is material to such Obligor’s business is valid and enforceable, and no part of the Intellectual Property which Borrower owns or purports to own and which is material to such
Obligor’s business has been adjudged invalid or unenforceable, in whole or in part. To the best of each Obligor’s knowledge, no claim has been made that any part of the Intellectual Property infringes the rights of any third party except
to the extent such claim would not reasonably be expected to have a material adverse effect on such Obligor’s business. 

  

	 	5.2.4	 Except as noted on the Perfection Certificate, each Obligor is not a party to, nor is it bound by, any
Restricted Licence. 

  

	5.3	 Litigation  

There are no actions or proceedings pending or, to the knowledge of such Obligor’s Responsible Officers or legal counsel, threatened (save
for any speculative claims by employees or former employees or oppositions to any third party intellectual property filings in the ordinary course of an Obligor’s protection of its intellectual property rights) by or against such Obligor or any
of its Subsidiaries or Affiliates, involving more than, individually or in the aggregate, One Hundred Thousand Pounds (£100,000) (or its equivalent in any other currency).  

 

	5.4	 Financial Statements; Financial Condition  

 

	 	5.4.1	 All consolidated financial statements for the Obligors and any of their Subsidiaries and/or Affiliates (if any)
truly and fairly present the Group’s 

  
 15 

 
financial condition and results of operations. There has not been any material deterioration in the Group’s assets, liabilities, financial condition or prospects as a whole since the date of
such financial statements (“Accounts Date”). 
  

	 	5.4.2	 The unaudited consolidated management accounts of the Borrower and its Subsidiaries since the Accounts Date up
to 31 August 2018 (“Management Accounts Date”) fairly present the assets, liabilities, financial condition and prospects of the Group and so far as the Borrower is aware there has been no material deterioration in
the Group’s assets, financial condition or prospects since the Management Accounts Date. 

  

	5.5	 Forecasts and projections  

All unaudited forecasts and projections supplied by or on behalf of an Obligor to the Agent were carefully prepared and believed by such
Obligor to be not misleading in any material respect at the date on which they were provided. 
  

	5.6	 Solvency  

  

	 	No:	 

  

	 	5.6.1	 corporate action, legal proceeding or other procedure or step described in Clause 10.5 (Insolvency
and insolvency proceedings); or 

  

	 	5.6.2	 attachment described in Clause 10.4 (Attachment), 

has been taken or, to the knowledge of each Obligor, is threatened or pending in relation to such Obligor. 

 

	5.7	 Centre of main interests  

For the purposes of Regulation (EU) 2015/848 of 20 May 2015 on insolvency proceedings (recast) (the
“Regulation”), its centre of main interest (as that term is used in Article 3(1) of the Regulation) is situated in England and Wales, except in the case of Guarantor 5, whose centre of main interest is Ireland. 

 

	5.8	 Regulatory Compliance  

To the best of each Obligors’ knowledge, each Obligor has not breached any laws, ordinances or rules or regulations, the breach of which
could reasonably be expected to cause a Material Adverse Change. None of any Obligor’s (or any of its Subsidiaries/Affiliates) property or assets has been used by such Obligor or, to the best of such Obligor’s knowledge, by previous
Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Each Obligor (and each of its Subsidiaries/Affiliates) has obtained all consents, approvals and authorisations of, made all declarations
or filings with, and given all notices to, all Government Authorities that are necessary to continue its business as currently conducted, except where the failure to do so could not reasonably be expected to be detrimental to such Obligor’s
business. 

  
 16 

	5.9	 Subsidiaries; Investments  

Each Obligor does not own any stock, partnership interest or other equity securities except for Permitted Investments. 

 

	5.10	 Taxation  

Each Obligor has complied in all material respects with all Taxation laws in all jurisdictions in which it is subject to Taxation and has paid
all Taxes due and payable by it and no claims are being asserted against it in respect of Taxes save for assessments in relation to the ordinary course of the business of such Obligor or claims contested in good faith and in respect of which
adequate provision has been made and disclosed in the latest accounts of such Obligor or information delivered to Agent under this Agreement. 
  

	5.11	 Full Disclosure  

No written representation, warranty or other statement of any Obligor in any certificate or written statement given to Agent, as of the date
such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Agent, contains any untrue statement of a material fact or omits to state a material fact necessary to make
the statements contained in the certificates or statements not misleading (it being recognised by Agent that the projections and forecasts provided by such Obligor in good faith and based upon reasonable assumptions are not viewed as facts and that
actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 
  

	5.12	 No winding-up  

Each Obligor has not taken any corporate or other action nor has any application been made or have any other steps been taken or legal
proceedings been started or (to the best of such Obligor’s knowledge and belief having made due and proper enquiry) threatened against such Obligor or any of its Subsidiaries/Affiliates for its winding-up
or for the appointment of a trustee, liquidator, receiver, administrative receiver, administrator or similar officer of it or of any or all of its assets. 
  

	5.13	 AIM Status  

The shares of the Borrower are duly admitted to trading on AIM and no circumstances exist to the Borrower’s knowledge which are reasonably
likely to cause the suspension or cancellation of such admission. The Borrower has complied and continues to comply with all AIM Rules and Disclosure and Transparency Rules and the Market Abuse Regulation as applicable to it. 

 

	5.14	 Patents  

The Borrower owns the Patents and has good title to, has rights in, and the power to transfer each of the Patents. 

  
 17 

	5.15	 Licences  

Other than as previously disclosed to the Agent in the Perfection Certificate, each Obligor is not a party to, nor is bound by, any material
licence (other than over the counter software that is commercially available to the public) or other material agreement with respect to which such Obligor is the licensee that prohibits or otherwise restricts such Obligor from granting a charge in
such Obligor’s interest in such licence or agreement or any other property. Each Obligor shall provide written notice to Agent within fifteen (15) days of entering or becoming bound by, any such licence or agreement which is reasonably
likely to have a material impact on Borrower’s business or financial condition. Each Obligor shall take such steps as Agent reasonably requests to obtain the consent of, authorisation by or waiver by, any Person whose consent or waiver is
necessary for all such licences or contract rights to be deemed Collateral and for Agent to have a charge in it that might otherwise be restricted or prohibited by law or by the terms of any such licence or agreement, whether now existing or entered
into in the future. 
  

	5.16	 Subordinated debt  

 

	 	5.16.1	 All amounts due to officers, directors, shareholders, the holder(s) of the Convertible Loans and any secured
creditors (other than Lenders) of each Obligor have been subordinated to the Obligations. 

  

	 	5.16.2	 No amounts are due to officers, directors, shareholders of any Obligor. 

 

	5.17	 Novartis  

All amounts due and any obligations under the Novartis Acquisition Agreement as at the date of this Agreement by an Obligor have been duly paid
or satisfied (as the case may be).  
  

	5.18	 Alpha 1 Grant  

The terms of the Alpha 1 Grant as disclosed to the Lenders prior to the date of this Agreement are true and complete and all facts and/or
circumstances which, in the reasonable opinion of the Borrower, may be material to the terms and/or continuation of such grant have been disclosed to the Lenders.  

 

	5.19	 Definition of “Knowledge”  

For purposes of the Loan Documents, whenever a representation or warranty is made to any Obligor’s knowledge or awareness, to the
“best of” such Obligor’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge, after reasonable investigation, of the Responsible Officers. 

  
 18 

	6	 AFFIRMATIVE COVENANTS  

Each Obligor shall do the following: 
  

	6.1	 Government Compliance  

 

	 	6.1.1	 Maintain its legal existence and good standing in its jurisdiction of incorporation and maintain qualification
in each jurisdiction in which the failure to do so would reasonably be expected to be detrimental to such Obligor’s business or operations. Each Obligor shall and shall procure that each of its Subsidiaries/Affiliates shall comply with all
laws, ordinances and regulations to which it is subject, non-compliance with which could be detrimental to such Obligor’s business or operations or would reasonably be expected to cause a Material Adverse
Change. 

  

	 	6.1.2	 Obtain all of the Governmental Approvals (if any) necessary to carry on its business and for the performance by
such Obligor of its obligations under the Loan Documents to which it is a party and the grant of a security interest to Security Agent in all of its present and future property and assets, including the Governmental Approvals for manufacturing
licenses. Each Obligor shall promptly provide copies of any such obtained Governmental Approvals to Agent. 

  

	6.2	 Financial Statements, Reports, Certificates  

The Obligors shall deliver to Agent: 
  

	 	6.2.1	 Monthly Financial Statements  

As soon as available, but no later than forty five (45) days after the last day of each month, (or if sooner, at the same time as they
are provided to any investor in the Borrower) a company prepared consolidated (and consolidating for each subsidiary) balance sheet and income statement covering each Obligor’s and each of its Subsidiary’s operations for such month
certified by a Responsible Officer and in a form acceptable to Agent (the “Monthly Financial Statements”); 
  

	 	6.2.2	 Monthly Compliance Certificate  

Within forty five (45) days after the last day of each month a duly completed Compliance Certificate signed by a Responsible Officer,
certifying that as of the end of such month, each Obligor was in full compliance with all of the terms and conditions of this Agreement and such other information as Agent shall reasonably request; 

 

	 	6.2.3	 Annual Audited Financial Statements  

As soon as available, but within one hundred and eighty (180) days after each Obligor’s financial year, consolidated financial
statements prepared under GAAP, consistently applied, with an opinion on the financial statements from an independent certified public accounting firm acceptable to Agent in its reasonable discretion; 

  
 19 

	 	6.2.4	 Other Statements  

Within five (5) days of delivery, copies of all statements, reports and notices made available to the holder(s) of the Convertible Loans;

  

	 	6.2.5	 Legal Action Notice  

A prompt report of any legal actions pending or threatened in writing against an Obligor or any of its Subsidiaries/Affiliates that could
result in damages or costs to such Obligor or any of its Subsidiaries/Affiliates of, individually or in the aggregate, One Hundred Thousand Pounds (£100,000) (or its equivalent in any other currency) or more; 

 

	 	6.2.6	 Intellectual Property Notice  

Prompt written notice of (i) of any material change in the composition of the Intellectual Property, and (ii) such Obligor’s
knowledge of an event that could reasonably be expected materially and adversely to affect the value of the Intellectual Property. Additionally, within ten (10) Business Days after each six (6) months anniversary of the date of this
Agreement, prompt written notice of the registration of any ownership right of an Obligor in or to any Patent or Trademark not previously disclosed in writing to Agent in respect of the prior six (6) month period.  

 

	 	6.2.7	 Operating Budget  

Within sixty (60) days after the end of the Borrower’s financial year an operating plan which includes, without limitation, balance
sheet and income statement, operating budgets and reflects projections for such year plus updates or amendments to such budget when available and as approved by the board of directors; 

 

	 	6.2.8	 Other Financial Information  

Other financial information reasonably requested by Agent; 
  

	 	6.2.9	 Board Pack  

As soon as available and on the same date on which it is circulated to the board of directors but no later than fifteen (15) days after a
meeting of the board of directors of any Obligor, such Obligor’s board pack, provided that third party information may be redacted from such board pack in order to comply with the terms of any confidentiality obligations with such third party
binding upon an Obligor. 

  
 20 

	6.3	 “Know your Customer” checks  

If: 
  

	 	6.3.1	 the introduction of or any change in (or in the interpretation, administration or application of) any law or
regulation made after the date of this Agreement; 

  

	 	6.3.2	 any change in the status of an Obligor or the composition of the shareholders of or control of an Obligor after
the date of this Agreement; or 

  

	 	6.3.3	 a proposed assignment or transfer by any Finance Party of any of its rights and/or obligations under this
Agreement, 

 obliges any Finance Party (or, in the case of Clause 6.3.3 above, any prospective new lender) to comply with
“know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, such Obligors shall promptly upon the request of the Agent supply, or procure the supply of, such
documentation and other evidence as is reasonably requested by the Agent (for itself or, in the case of the event described in Clause 6.3.3 above, on behalf of any prospective new lender) in order for the Finance Parties or, in the case of the event
described in Clause 6.3.3 above, any prospective new lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulation pursuant to the transactions
contemplated in the Loan Documents. 
  

	6.4	 Taxes; pensions  

Each Obligor shall make, and cause each of its Subsidiaries/Affiliates to make, timely payment of all material Taxes or assessments (other than
taxes and assessments which such Obligor or a Subsidiary/Affiliate of such Obligor is contesting in good faith, with adequate reserves maintained in accordance with GAAP) and will deliver to Agent, on demand, appropriate certificates attesting to
such payments and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms. 
  

	6.5	 Insurance  

  

	 	6.5.1	 Each Obligor shall keep its business and the Collateral insured for risks (including third party liability
appropriate to a company undertaking the business of the Company) and in amounts as Agent may reasonably request. 

  

	 	6.5.2	 Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Agent in its
reasonable discretion as are typical for the industry in the UK, for companies similar to each Obligor. 

  

	 	6.5.3	 At Agent’s request, each Obligor shall deliver copies of policies and evidence of all premium payments.

  

	 	6.5.4	 Following an Event of Default which is continuing, proceeds payable under any property or asset protection
policies taken out by each Obligor pursuant to which such Obligor is the ultimate beneficiary of any payment 

  
 21 

	 	
under such policy (which, for the avoidance of doubt, shall not include proceeds of any insurance policies that, pursuant to their terms, are intended, directly or indirectly, to compensate a
third party that is not a member of the Group) shall, at the Agent’s option, be payable to the Agent on account of the Obligations. 

  

	 	6.5.5	 If each Obligor fails to obtain insurance as required under this Clause 6.5 (Insurance) or to pay any amount or
furnish any required proof of payment to third persons and Agent, Agent may make all or part of such payment or obtain such insurance policies required in this Clause 6.5, and take any action under the policies Agent deems prudent.

  

	6.6	 Protection and Registration of Intellectual Property Rights  

 

	 	6.6.1	 Each Obligor shall use commercially reasonable endeavours to: 

 

	 	(a)	 protect, defend and maintain the validity and enforceability of the material Intellectual Property;

  

	 	(b)	 promptly advise Agent in writing of material infringements of its Intellectual Property after becoming aware of
such material infringements; and 

  

	 	(c)	 not allow any Intellectual Property material to such Obligor’s business to be abandoned, forfeited or
dedicated to the public without Agent’s prior written consent (not to be unreasonably withheld). 

  

	 	6.6.2	 If an Obligor: 

  

	 	(a)	 obtains any registered patent, registered trademark or servicemark, registered copyright, registered mask work,
or any pending application for any of the foregoing, whether as owner, licensee or otherwise, or 

  

	 	(b)	 applies for any patent or the registration of any trademark or servicemark: 

then, if the same are not already secured by the provisions of an existing Security Document, it shall promptly and without delay provide
written notice thereof to the Agent and shall execute such intellectual property security agreements and other documents and take such other actions as the Agent shall reasonably request in its good faith business judgement to perfect and, upon
perfection, maintain a first priority perfected Security Interest in favour of the Security Agent in such property, provided (i) that such perfection shall only extend to and without prejudice to Clause 6.6.3 and Clause 8 (Further
assurances), notifying such Security Interest to any intellectual property register in the USA and the UK and (ii) that, to the extent that an Obligor’s interest in any of the foregoing intellectual property 

  
 22 

 
is only as a licensee, any such security shall only be granted in respect of and to the extent of the Borrower’s contractual rights pursuant to the relevant licence agreement. 

 

	 	6.6.3	 If an Obligor decides to register any material copyrights or material mask works in the United States Copyright
Office, it shall: 

  

	 	(a)	 promptly inform the Agent of any such registration; 

 

	 	(b)	 execute an intellectual property security agreement or an intellectual property security confirmation if the
relevant intellectual property is already secured by a Debenture and such other documents and take such other actions as the Agent may reasonably request in its good faith business judgement to perfect and maintain a first priority perfected
Security Interest in favour of the Security Agent in the material copyrights or material mask works intended to be registered with the United States Copyright Office; and 

 

	 	(c)	 record such intellectual property security agreement or security confirmation with the United States Copyright
Office contemporaneously with filing the material copyright or material mask work application(s) with the United States Copyright Office. 

  

	6.7	 Clinical Trials  

The Borrower shall ensure that all clinical trials conducted by it or on its behalf strictly comply with all applicable Government Approvals
and good clinical practice including, but without limitation, Directive 2001/20/EC on the conduct of clinical trials as implemented in the relevant jurisdictions including the UK (the “Clinical Trials Directive”), any
applicable ethics committee approval, the terms of any applicable protocols and any other requirements of the applicable Regulatory Authority, in each case, as is mandatorily required to be complied with under relevant laws and for the industry in
which the Borrower operates, and shall promptly and without delay notify the Lenders of any notification of non-compliance which an Obligor has received from any relevant governmental or regulatory authority.

  

	6.8	 Litigation Cooperation  

From the date hereof and continuing until all Obligations have been irrevocably discharged and Agent has no commitment or liability hereunder,
make available (to the extent legally permissible) to Agent, without expense to Lenders, Obligors and their officers, employees and agents and Obligors relevant books and records, to the extent that Agent may deem them reasonably necessary to
institute or defend any third-party action or proceeding instituted by or against Lenders with respect to any Collateral or relating to the Obligors. 

  
 23 

	6.9	 Access to Collateral; Books and Records  

Allow Agent, or its agents, at reasonable times, on ten (10) Business Days’ notice (provided no notice is required if an Event of
Default has occurred and is continuing), to inspect the Collateral and audit and copy the relevant Obligors’ Books. Such inspections or audits shall be conducted no more often than once every twelve (12) months unless an Event of Default
has occurred and is continuing and shall be carried out at the reasonable expense of the Obligors. 
  

	7	 BANKING AND FUTURE DEBT FINANCING  

 

	7.1	 Banking  

During the continuation of this Facility subject to SVB providing terms of business reasonably acceptable to the Obligors and SVB being able to
meet the Obligors’ reasonable commercial requirements, each Obligor shall conduct and arrange all its primary current account banking requirements in the USA and UK with SVB or its Affiliates (except in respect of any banking arrangements with
third parties as detailed in the Perfection Certificate), and shall give to SVB and/or its Affiliates the opportunity to quote on all foreign exchange spot trades and hedging transaction over £50,000 in value before going to any other
provider. It being understood that should the Obligors receive an offer from a third bank providing materially better commercial terms, they shall be obliged to notify SVB of such occurrence prior to terminating their banking relationship with SVB
to allow for any notification of a Security Interest to be served on a third bank. 
  

	7.2	 Future debt financing  

Save in respect of the Alpha 1 Grant, the Borrower and each Obligor shall provide the Lenders with the opportunity to offer for additional debt
or loan financing in relation to the Group fifteen (15) Business Days prior to the time that such requests are provided to any other financing sources. 
  

	8	 FURTHER ASSURANCES  

 

	8.1	 Each Obligor shall without expense to the Lenders execute any further instruments and take further action as
Agent reasonably requests to perfect or continue Security Agent’s security interest in the Collateral or to effect the purposes of this Agreement. 

  

	8.2	 Each Obligor shall procure at Agent’s request that any of the Borrower’s wholly-owned Subsidiaries
which become subsidiaries after the date hereof, become a guarantor in relation to this Agreement and enters into such documentation and grants a Lien to Agent in substantially all of its assets, for the sole purpose of securing the Obligations,
pursuant to such documentation as may be required by the Agent in the Agent’s sole discretion. 

  
 24 

	9	 NEGATIVE COVENANTS  

No Obligor shall do any of the following without Agent’s prior written consent (such consent not to be unreasonably withheld, conditioned
or delayed).     
  

	9.1	 Dispositions  

Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”), or permit any of its Subsidiaries
to Transfer, all or any part of its business or property, except for (i) a Permitted Disposal and/or (ii) Transfers: (a) of Inventory in the ordinary course of business; (b) of worn out or obsolete Equipment; and (c) in
connection with Permitted Liens and Permitted Investments. An Obligor shall not enter into an agreement with any Person other than Agent which restricts the subsequent granting of a security interest in any Intellectual Property owned by such
Obligor, unless such agreement between an Obligor and the foregoing Person contains an exemption to permit any security created pursuant to the Security Documents (which the Obligor shall use reasonable endeavours to obtain) (an Exemption).
It being understood that an Obligor should be able to enter into a licence arrangement pursuant to which any Intellectual Property is licensed to such Obligor, provided that (i) such arrangement is an arm’s length transaction and the
relevant Person is a third party, and (i) the relevant Obligor shall use reasonable endeavours to obtain an Exemption. 
  

	9.2	 Changes in Business, Ownership, Management or Business Locations  

 

	 	9.2.1	 Engage in or permit any of its Subsidiaries: to engage in any business other than the businesses currently
engaged in by such Obligor or such Subsidiary or reasonably related thereto as at the Closing Date; (b) to be liquidated or dissolved; or (c) in the case of the Subsidiaries only, to permit or suffer any Change in Control.

  

	 	9.2.2	 An Obligor shall not, without at least fifteen (15) days prior written notice to Agent: (1) change
its jurisdiction of organisation, registration or incorporation, or (2) change its legal name. An Obligor shall not, without at least five (5) days prior written notice to Agent, change its organisational structure or type.

  

	 	9.2.3	 An Obligor shall within fifteen (15) days after adding any new offices or business locations, including
warehouses (unless such new offices or business locations contain less than Fifty Thousand Pounds (£50,000) (or its equivalent in any other currency)) in such Obligor’s assets or property) or deliver any portion of the Collateral valued,
individually or in the aggregate, in excess of One Hundred Thousand Pounds (£100,000) (or its equivalent in any other currency) to a bailee at a location other than to a bailee and at a location already disclosed in the Perfection Certificate,
provide written notice of the same to Agent. 

  
 25 

	9.3	 Mergers or Acquisitions  

Permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or
substantially all of the share capital or property of another Person. A Subsidiary of an Obligor may merge or consolidate into another Subsidiary of such Obligor or into such Obligor.  

 

	9.4	 Indebtedness  

Create, incur, assume, or be liable for any Indebtedness, or permit any of its Subsidiaries to do so, other than the Permitted Indebtedness.

  

	9.5	 Guarantees or indemnities  

Except in accordance with Clause 12 (Guarantee and Indemnity), no Obligor shall incur or allow to remain outstanding any
guarantee in respect of any obligation of any person, commit itself as joint and several debtor for such obligations or bind itself as a surety for such obligations, except in each case in respect of Permitted Guarantees. 

 

	9.6	 Encumbrance  

Create, incur, allow, or suffer any Lien on any of, the Collateral and/or its Intellectual Property, or assign or convey any right to receive
income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any Collateral not to be subject to the first priority security interest granted by the Security Documents, except as is
otherwise permitted in Clause 9.1 (Dispositions) and the definition of “Permitted Liens”. 
  

	9.7	 Distributions; Investments  

Directly or indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted Investments, or permit any of its
Subsidiaries to do so; or pay any dividends or make any distribution or payment or redeem, or purchase any of its share capital or give any financial assistance in respect of the purchase of any of its share capital except in each case in respect of
any long term incentive plans or employee and officer shares schemes in operation in respect of each Obligor. 
  

	9.8	 Transactions with Affiliates  

Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of an Obligor, except for transactions that
are in the ordinary course of such Obligor’s business, upon fair and reasonable terms that are no less favourable to such Obligor than would be obtained in an arm’s length transaction with a
non-affiliated Person and transactions permitted pursuant to the terms of Clause 9.1 (Dispositions). 

  
 26 

	9.9	 Convertible Loans  

 

	 	9.9.1	 Make or permit any payment on any debts owing to the holder(s) of the Convertible Loans other than exclusively
as permitted under the terms permitted by the Subordination Agreement (for the avoidance of doubt, this provision shall not preclude any conversion of the Convertible Loans into equity in the Borrower). 

 

	 	9.9.2	 Suffer or incur any breach of the Subordination Agreement. 

 

	10	 EVENTS OF DEFAULT  

Any one of the following shall constitute an event of default (an “Event of Default”): 

 

	10.1	 Payment Default  

 

	 	10.1.1	 An Obligor fails to: 

 

	 	(a)	 make any payment of principal or interest on any Credit Extension on its due date (unless its failure to pay is
caused by administrative or technical error and payment is made within three (3) Business Days after its due date); or 

  

	 	(b)	 pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which
three (3) Business Day cure period shall not apply to payments due on the Final Repayment Date). 

  

	 	10.1.2	 During the cure period, the failure to make any payment specified under Clauses 10.1.1(a) or 10.1.1(b) is not
an Event of Default (but no Credit Extension will be made during the cure period). 

  

	10.2	 Covenant Default  

 

	 	10.2.1	 An Obligor fails or neglects to perform any obligation in Clause 6 (Affirmative Covenants)
or breaches any covenant in Clause 9 (Negative Covenants) provided that no Event of Default will occur under the following obligations or covenants if the failure to comply or breach is capable of being remedied and is
remedied within the period specified next to such obligation or covenant (such period commencing on the earlier of (a) the Agent giving notice to such Obligor or the failure to comply or breach, and (b) such Obligor becoming aware of the
failure to comply or breach): 

  

	 	(a)	 Clause 6.1 (Government Compliance), Clause 6.2 (Financial Statements, Reports, Certificates) or
Clause 6.3 (“Know your Customer” checks), Clause 6.5 (Insurance) – ten (10) Business Days; 

  

	 	(b)	 Clause 9.1 (Dispositions), Clause 9.2 (Changes in Business, Ownership, Management or Business
Locations), Clause 9.4 

  
 27 

	 	(Indebtedness), Clause 9.5 (Guarantees or Indemnities), Clause 9.6 (Encumbrance), Clause 9.7 (Distributions), Clause 9.8 (Transactions with Affiliates), Clause 9.9 (Convertible
Loans) – ten (10) Business Days each ; 

  

	 	(c)	 Clause 6.4 (Taxes; pensions) – five (5) Business Days; and 

 

	 	(d)	 Clause 6.7 (Protection and Registration of Intellectual Property Rights) and Clause 6.7 (Clinical
Trials) – thirty (30) Business Days. 

  

	 	10.2.2	 An Obligor fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or
agreement contained in this Agreement or in any Loan Document to which it is a party or in any other present or future agreement between such Obligor and Agent, and as to any default (other than those specified in this Clause 10) under such other
term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within fifteen (15) days after the occurrence thereof (but no Credit Extensions shall be made during such cure period). 

 

	10.3	 Material Adverse Change  

A Material Adverse Change occurs. 
  

	10.4	 Attachment  

Any material portion of an Obligor’s or any of its Subsidiary’s assets is attached, seized, levied on, or comes into possession of a
trustee, receiver, creditor or encumbrancer and the attachment, seizure or levy is not removed in fifteen (15) days or is not discharged within twenty (20) days; (ii) the service of proceedings upon such Obligor or any of its Subsidiaries
seeking to attach, by trustee or similar process, any funds of such Obligor or any such Subsidiary on deposit with Finance Parties, or any entity under control of Finance Parties (including any of their subsidiaries); (iii) such Obligor or any of
its Subsidiaries is injuncted, restrained, or prevented by court order from conducting a material part of its business; (iv) a judgment or other claim becomes a lien on a material portion of the assets of such Obligor or any of its
Subsidiaries; or (v) a notice of lien, levy, or assessment is filed against such Obligor or any of its Subsidiaries assets by any government department or agency and not paid within fifteen (15) days after such Obligor or any of its
Subsidiaries receives such notice. These are not Events of Default if stayed or if a bond is posted pending appeal by an Obligor or its Subsidiary (as appropriate) (but no Credit Extensions shall be made during the grace period). 

 

	10.5	 Insolvency and Insolvency Proceedings  

 

	 	10.5.1	 Any of the following occurs in respect of an Obligor (each of which is an “Insolvency
Proceeding”) 

  
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	 	(a)	 any order shall be made by any competent court, a petition presented (other than a petition that in the
reasonable opinion of the Lenders is frivolous or vexatious) or any resolution shall be passed by any Obligor for the appointment of a liquidator, administrator or receiver of, or for the winding up of, any Obligor or a moratorium is imposed or
declared over any or all of the assets and business of any Obligor; or 

  

	 	(b)	 an encumbrancer takes possession of or a receiver, liquidator, supervisor, compulsory manager, trustee,
administrator or similar official is appointed over the whole or, in the reasonable opinion of the Agent, any material part of, the assets of any Obligor or a distress, execution or other process is levied or enforced upon or sued out against the
whole or, in the reasonable opinion of the Agent, a material part of the assets of any Obligor; or 

  

	 	(c)	 an administration application is presented or made for the making of an administration order or a notice of
intention to appoint an administrator under Schedule B1 to the Insolvency Act 1986 is issued by any Obligor or its directors or by the holder of a qualifying floating charge (as defined in such Schedule) or a notice of appointment of an
administrator is filed by any person with the court; or 

  

	 	(d)	 any judgment made against any Obligor is not paid, stayed or discharged within 15 days; or

  

	 	(e)	 any Obligor shall stop payment or shall be unable to, or shall admit inability to, pay its debts as they fall
due, or shall be adjudicated or found bankrupt or insolvent, or shall enter into any composition or other arrangement with its creditors generally; or 

  

	 	(f)	 any event shall occur which under the law of any jurisdiction to which any Obligor is subject has an effect
equivalent or similar to any of the events referred to in this Clause 10.5; or 

  

	 	(g)	 any Obligor ceases, threatens to cease, or suspends carrying on its business or a part of its business.

  

	10.6	 Other Agreements  

There is, under any agreement to which an Obligor is a party with a third party or parties, (a) any default resulting in a right by such
third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount individually or in the aggregate in excess of Two Hundred Thousand Pounds (£200,000); or (b) any default by an Obligor, the
result of which could be materially detrimental to Borrower’s business. 

  
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	10.7	 Judgments  

If a judgment, arbitration award, order or decree for the payment of money and that is no longer subject to an appeal process in an amount,
individually or in the aggregate, of at least One Hundred Thousand Pounds (£100,000) (or its equivalent in any other currency) shall be rendered against an Obligor or any of its Subsidiaries and shall remain unsatisfied or unstayed for a
period of fifteen (15) days of it being made (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment, order or decree). 
  

	10.8	 Misrepresentations  

If any representation or warranty or statement in writing made or deemed to be made or repeated by an Obligor or any Person acting for such
Obligor in, or in connection with the negotiation of, any Loan Document or in any notice, certificate or statement of fact referred to in or delivered under any Loan Document or in any other written material delivered to Finance Parties is or shall
prove to be untrue or incorrect in any material respect or misleading when made or deemed to be made or repeated under such Loan Document. 
  

	10.9	 Convertible Loans  

Any document, instrument, or agreement evidencing any Convertible Loans, including the Subordination Agreement, shall for any reason be revoked
or invalidated or otherwise cease to be in full force and effect (otherwise than in circumstances permitted by the Loan Documents), any Person shall be in breach thereof or contest in any manner the validity or enforceability thereof or deny that it
has any further liability or obligation thereunder, or the Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement. 
  

	10.10	 Other Agreements with Finance Parties  

An Obligor, or any of its Subsidiaries fails to perform any of its financial obligations or other material obligations under any agreement
between such Obligor, or any of its Subsidiaries and Finance Parties or any of its Affiliates and any applicable grace period in relation to the foregoing has expired. 
  

	10.11	 Governmental Approvals  

Any Governmental Approval shall have been (a) revoked, rescinded, suspended, modified in an adverse manner or not renewed in the ordinary
course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications for renewal of any of such Governmental Approval or that could result in the Governmental Authority
taking any of the actions described in (a) above, and such decision or such revocation, rescission, suspension, modification 

  
 30 

 
or non-renewal (i) is, or could reasonably be expected to be, a Material Adverse Change, or (ii) adversely affects the legal qualifications of an
Obligor or any of its Subsidiaries/Affiliates to hold such Governmental Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be
expected to affect the status of or legal qualifications of such Obligor or any of its Subsidiaries/Affiliates to hold any Governmental Approval in any other jurisdiction. 
  

	10.12	 Repudiation  

An Obligor repudiates any of the Loan Documents or does or causes to be done any act or thing evidencing an intention to repudiate any of the
Loan Documents. 
  

	11	 FINANCE PARTIES RIGHTS, REMEDIES AND OBLIGATION  

 

	11.1	 When an Event of Default occurs and continues, the Agent (on instructions from the Lenders) may, without notice
or demand, do any or all of the following: 

  

	 	11.1.1	 declare all Obligations immediately due and payable (but if an Event of Default described in Clause 10.5
(Insolvency and Insolvency Proceedings) occurs all Obligations are immediately due and payable without any action by the Agent); 

  

	 	11.1.2	 stop advancing money or extending credit for the benefit of the Borrower under this Agreement or under any
other agreement between an Obligor and the Finance Parties; 

  

	 	11.1.3	 settle or adjust disputes and claims directly with Account Debtors for amounts, on terms and in any order that
the Agent considers advisable and notify any person owing the Obligors money of the Security Agent’s Security Interest in such funds and verify and/or collect the amounts owed by such Account Debtors. During the occurrence of an Event of
Default that is continuing, any amounts received by any Obligor shall be held in trust by such Obligor for the Finance Parties, and, if requested by the Agent, the Obligor shall immediately deliver such receipts to the Agent in the form received
from the Account Debtor, with proper endorsements for deposit; 

  

	 	11.1.4	 make any payments and do any acts it considers necessary or reasonable to protect its Security Interest in the
Collateral. Each Obligor shall assemble the Collateral if the Agent requests and make it available as the Agent designates in accordance with the relevant provisions of the Security Documents, Intercreditor Agreement and/or Agency and Security Trust
Deed (as the case may be). The Security Agent may enter premises where the Collateral is located, and, to the fullest extent permitted under applicable law take and maintain possession of any part of the Collateral, pay, purchase, contest, or
compromise any Security Interest which appears to be prior or superior to its Security Interest and pay all expenses 

  
 31 

 
incurred. Each Obligor grants the Security Agent a licence to enter and occupy any of its premises, without charge, to exercise any of the Security Agent’s rights or remedies during an Event
of Default that is continuing; 
  

	 	11.1.5	 apply towards the discharge of the Obligations any: 

 

	 	(a)	 balances and deposits of any Obligor it holds; or 

 

	 	(b)	 any amount held by any Finance Party owing to or for the credit or the account of any Obligor;

  

	 	11.1.6	 ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the
Collateral. Each Obligor grants in favour of the Security Agent a non-exclusive, royalty-free licence or other right to use, without charge, such Obligor’s labels, Patents, Copyrights, rights of use of
any name, trade secrets, trade names, Trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with
the Security Agent’s exercise of its rights under this Clause 11 such Obligor ‘s rights under all licences and all franchise agreements inure to the Security Agent’s benefit; 

 

	 	11.1.7	 deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to
any control agreement or similar agreements providing control of any Collateral; 

  

	 	11.1.8	 demand and receive possession of each Obligor‘s Books; and 

 

	 	11.1.9	 exercise any rights and remedies available to the Finance Parties under the Security Documents or applicable
law. 

  

	11.2	 Power of Attorney  

Each Obligor, as security for the discharge of the Obligations, hereby irrevocably appoints Security Agent as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse such Obligor’s name on any cheques or other
forms of payment or security; (b) sign such Obligor’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors,
for amounts and on terms Security Agent determines reasonable; (d) make, settle, and adjust all claims under such Obligor’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse
claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) at any time after the security becomes enforceable, transfer the Collateral into the name of Security Agent
or a third party. Each Obligor hereby appoints Security Agent as its lawful attorney-in-fact to sign such Obligor’s name on any deeds or documents necessary to
perfect or continue the perfection of Security Agent’s security interest in the Collateral (to the extent contemplated by the Loan Agreements) regardless of 

  
 32 

 
whether an Event of Default has occurred until all Obligations have been satisfied in full and Security Agent is under no further obligation to make Credit Extensions hereunder. Security Agent
foregoing appointment as each Obligor’s attorney-in-fact, and all of Security Agent rights and powers, coupled with an interest, are irrevocable until all
Obligations have been fully repaid and performed and Security Agent obligation to provide Credit Extensions terminates. 
  

	11.3	 Protective Payments  

If an Obligor fails to obtain the insurance called for by Clause 6.5 (Insurance) or fails to pay any premium thereon, Agent may obtain
such insurance or make such payment, and all amounts so paid by Agent are Lender Expenses and promptly and without delay due and payable, and secured by the Collateral. Agent will make reasonable efforts to promptly and without delay provide any
Obligor with notice of Agent obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Agent are deemed an agreement to make similar payments in the future or Agent’s waiver of any Event of
Default. 
  

	11.4	 Lender Expenses  

Any Lender Expenses are due and payable within ten (10) Business Days of receipt by Borrower of a written notice been incurred by the
Lenders in respect of this Agreement) and be secured by the Collateral. No payments by Agent shall be deemed an agreement to make similar payments in the future or Agent’s waiver of any Event of Default.  

 

	11.5	 Remedies Cumulative  

Agent’s failure, at any time or times, to require strict performance by each Obligor of any provision of this Agreement or any other Loan
Document shall not waive, affect, or diminish any right of Agent thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by Agent and then is only effective for the specific
instance and purpose for which it is given. Agent’s rights and remedies under this Agreement and the other Loan Documents are cumulative. Agent has all rights and remedies provided by law, or in equity. Agent’s exercise of one right or
remedy is not an election and Agent’s waiver of any Event of Default is not a continuing waiver. Agent’s delay in exercising any remedy is not a waiver, election, or acquiescence. 

 

	11.6	 Withholding; Gross-up  

 

	 	11.6.1	 Definitions  

In this Agreement: 

“Borrower DTTP Filing” means an HM Revenue & Customs’ Form DTTP2 duly completed and filed by the relevant
Borrower, which contains the scheme reference number and jurisdiction of tax residence stated in respect of that Lender in the documentation which it executes on becoming a Party as a Lender; and 

  
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	 	(i)	 where the Obligor is an Obligor as at the date on which that Treaty Lender becomes a Party as a Lender, is
filed with HM Revenue & Customs within 30 days of that date; or 

  

	 	(ii)	 where the Obligor is not an Obligor as at the date on which that Treaty Lender becomes a Party as a Lender, is
filed with HM Revenue & Customs within 30 days of the date on which that Obligor becomes an additional Obligor. 

“Qualifying Lender” means: 
  

	 	(i)	 a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance under a
Loan Document and is: 

  

	 	(A)	 a Lender: 

  

	 	(1)	 which is a bank (as defined for the purpose of section 879 of the ITA) making an advance under a Loan Document
and is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance or would be within such charge as respects such payments apart from section 18A of the CTA; or 

 

	 	(2)	 in respect of an advance made under a Loan Document by a person that was a bank (as defined for the purpose of
section 879 of the ITA) at the time that that advance was made and within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance; or 

 

	 	(B)	 a Lender which is: 

  

	 	(1)	 a company resident in the United Kingdom for United Kingdom tax purposes; or 

 

	 	(2)	 a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a
permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company; or 

  
 34 

	 	(C)	 a Treaty Lender. 

“Tax Confirmation” means a confirmation by a Lender that the person beneficially entitled to interest payable to that Lender
in respect of an advance under a Loan Document is either: 
  

	 	(i)	 a company resident in the United Kingdom for United Kingdom tax purposes; or 

 

	 	(ii)	 a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a
permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company. 

“Treaty Lender” means a Lender which: 
  

	 	(i)	 is treated as a resident of a Treaty State for the purposes of the Treaty; and 

 

	 	(ii)	 does not carry on a business in the United Kingdom through a permanent establishment with which that
Lender’s participation in the Loan is effectively connected. 

 “Treaty State” means a jurisdiction
having a double taxation agreement (a “Treaty”) with the United Kingdom which makes provision for full exemption from tax imposed by the United Kingdom on interest. 
  

	 	11.6.2	 All payments to be made by the Obligors under the Loan Documents, whether in respect of principal, interest,
fees or otherwise, shall (save insofar as required by law to the contrary) be paid in full without set-off or counterclaim and free and clear of and without any deduction or withholding or payment for or on
account of any Taxes (other than a FATCA Deduction) that may be imposed in the United Kingdom or any other jurisdiction (a “Tax Deduction”) from which payment may be made by the Borrower under this Agreement. If any Obligor is
required by law to effect Tax Deduction from or in connection with any payment made under this Agreement for the account of a Finance Party then: 

  

	 	(a)	 such Obligor shall promptly notify the Finance Party upon becoming aware of the relevant requirements to deduct
any such Tax Deduction; 

  

	 	(b)	 such Obligor shall ensure that such Tax Deduction does not exceed the minimum legal liability therefor, shall
remit the amount of such Tax to the appropriate Taxation authority and shall forthwith pay to the Agent such additional amount as will result in the immediate receipt by the Finance Party of the full amount which would otherwise have been receivable
under this Agreement had no such Tax Deduction been made; and 

  
 35 

	 	(c)	 such Obligor shall not later than fifty (50) days after each Tax Deduction forward to the Finance Party
documentary evidence reasonably required by the Finance Party in respect of the payment of any such Taxes. 

  

	 	11.6.3	 A payment shall not be increased under Clause 11.6.2 above by reason of a Tax Deduction on account of Tax
imposed by the United Kingdom, if on the date on which the payment falls due: 

  

	 	(a)	 the payment could have been made to the relevant Lender without a Tax Deduction if the Lender had been a
Qualifying Lender, but on that date that Lender is not or has ceased to be a Qualifying Lender other than as a result of any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application
of) any law or treaty or any published practice or published concession of any relevant taxing authority; or 

  

	 	(b)	 the relevant Lender is a Qualifying Lender solely by virtue of paragraph (i)(B) of the definition of Qualifying
Lender and: 

  

	 	(i)	 an officer of H.M. Revenue & Customs has given (and not revoked) a direction (a “Direction”)
under section 931 of the ITA which relates to the payment and that Lender has received from the Obligor making the payment or from the Company a certified copy of that Direction; and 

 

	 	(ii)	 the payment could have been made to the Lender without any Tax Deduction if that Direction had not been made;
or 

  

	 	(c)	 the relevant Lender is a Qualifying Lender solely by virtue of paragraph (i)(B) of the definition of Qualifying
Lender and: 

  

	 	(i)	 the relevant Lender has not given a Tax Confirmation to the Company; and 

 

	 	(ii)	 the payment could have been made to the Lender without any Tax Deduction if the Lender had given a Tax
Confirmation to the Company, on the basis that the Tax Confirmation would have enabled the Company to have formed a reasonable belief that the payment was an “excepted payment” for the purpose of section 930 of the ITA; or

  

	 	(d)	 the relevant Lender is a Treaty Lender and the Obligor making the payment is able to demonstrate that the
payment could 

  
 36 

	 	
have been made to the Lender without the Tax Deduction had that Lender complied with its obligations under Clauses 11.6.4 or 11.6.5 (as applicable) below. 

 

	 	11.6.4	 

  

	 	(a)	 Subject to Clause 11.6.4(b) below, a Treaty Lender and each Obligor which makes a payment to which that Treaty
Lender is entitled shall co-operate in completing any procedural formalities necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction. 

 

	 	(b)	 a Treaty Lender which holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme
to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence in the documentation which it executes on becoming a Party as a Lender and, having done so, that Lender shall be under no obligation pursuant
to Clause 11.6.4(a) above. 

  

	 	11.6.5	 If a Lender has confirmed its scheme reference number and its jurisdiction of tax residence in accordance with
Clause 11.6.4(b) above and: 

  

	 	(a)	 a Borrower making a payment to that Lender has not made a Borrower DTTP Filing in respect of that Lender; or

  

	 	(b)	 a Borrower making a payment to that Lender has made a Borrower DTTP Filing in respect of that Lender but:

  

	 	(i)	 that Borrower DTTP Filing has been rejected by HM Revenue & Customs; or 

 

	 	(ii)	 HM Revenue & Customs has not given the Borrower authority to make payments to that Lender without a
Tax Deduction within 60 days of the date of the Borrower DTTP Filing, 

 and, in each case, the Borrower has notified that
Lender in writing, that Lender and the Borrower shall co-operate in completing any additional procedural formalities necessary for that Borrower to obtain authorisation to make that payment without a Tax
Deduction. 
  

	 	11.6.6	 If a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in accordance with
Clause 11.6.4(b) above, no Obligor shall make a Borrower DTTP Filing or file any other form relating to the HMRC DT Treaty Passport scheme in respect of that Lender’s Commitment or its participation in any Loan unless the Lender otherwise
agrees. 

  
 37 

	 	11.6.7	 A Borrower shall, promptly on making a Borrower DTTP Filing, deliver a copy of that Borrower DTTP Filing to the
Agent for delivery to the relevant Lender. 

  

	 	11.6.8	 Kreos gives a Tax Confirmation to the Borrower by entering into this Agreement. 

 

	 	11.6.9	 The Agent shall promptly notify the Obligors if there is any change in the position from that set out in the
Tax Confirmation. 

  

	 	11.6.10	 If any Finance Party receives the benefit of any credit, payments or reimbursement in respect of the payment of
any amount by any Obligor under this Clause 11 it shall (to the extent that it can do so without prejudice to the retention of such benefit) pay to such Obligor such part of that benefit as in its absolute discretion will leave it (after such
payment) in no more or less favourable position than it would have been in if no Tax Payment had been required by such Obligor. For these purposes a “Tax Payment” means an increase in a payment made by such Obligor to the Finance
Party under Clause 11.6.2 (Withholding; gross up). 

  

	 	11.6.11	 Nothing in this Clause 11 requires any Finance Party to arrange its tax affairs in a particular way or to
disclose any information regarding its tax affairs. 

  

	 	11.6.12	 FATCA information  

 

	 	(a)	 Subject to Clause 11.6.12(c) below, each party shall, within ten (10) Business Days of a reasonable
request by another party: 

  

	 	(i)	 confirm to that other party whether it is: 

 

	 	(A)	 a FATCA Exempt Party; or 

 

	 	(B)	 not a FATCA Exempt Party; and 

 

	 	(ii)	 supply to that other party such forms, documentation and other information relating to its status under FATCA
as that other party reasonably requests for the purposes of that other party’s compliance with FATCA; and 

  

	 	(iii)	 supply to that other party such forms, documentation and other information relating to its status as that other
party reasonably requests for the purposes of that other party’s compliance with any other law, regulation, or exchange of information regime. 

  

	 	(b)	 If a party confirms to another party pursuant to Clause 11.6.12(a)(i) above that it is a FATCA Exempt Party and
it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, that party shall notify that other party reasonably promptly. 

  
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	 	(c)	 Clause 11.6.12(a) above shall not oblige the Finance Parties to do anything which would or might in its
reasonable opinion constitute a breach of: 

  

	 	(i)	 any law or regulation; 

 

	 	(ii)	 any policy of the Finance Parties; 

 

	 	(iii)	 any fiduciary duty; or 

 

	 	(iv)	 any duty of confidentiality. 

 

	 	(d)	 If a party fails to confirm its status or to supply forms, documentation or other information requested in
accordance with Clause 11.6.12(a) above (including, for the avoidance of doubt, where Clause 11.6.12(c) above applies), then such party shall be treated for the purposes of the Loan Documents as if it is not a FATCA Exempt Party until such time as
the party in question provides the requested confirmation, forms, documentation or other information. 

  

	11.7	 Tax indemnity  

 

	 	11.7.1	 On the later of ten (10) Business Days before the due date for payment of the relevant Tax and ten
(10) Business Days after the date on which a Lender serves a demand on the Borrower requesting payment pursuant to this Clause 11.7.1, the Borrower shall pay the Lender an amount equal to the loss, liability or cost which the Lender reasonably
determines that it has directly or indirectly suffered or will directly or indirectly suffer in relation to Tax in respect of amounts payable to it under a Loan Document. A Lender shall as soon as reasonably practicable notify the Borrower in
writing as soon as it is aware that it may be reasonably likely to make a claim pursuant to the indemnity in this Clause 11.7.1. In the event that, after receiving a demand for payment pursuant to this Clause 11.7.1, the Borrower, acting reasonably,
believes that such claim is inaccurate or can be mitigated, the relevant Lender and the Borrower shall engage in good faith discussions for a period not exceeding one month after the date of the Borrower’s receipt of the demand for payment, to
seek to resolve such claim by mutual agreement and any timeframes for payment of Tax by the Borrower shall be extended accordingly. If any such demand that is contested pursuant to the foregoing sentence is not resolved in such one month period, it
shall constitute a Dispute and resolved pursuant to Clause 15. 

  
 39 

	 	11.7.2	 Clause 11.7.1 shall not apply to: 

 

	 	(a)	 any Tax assessed on the Lender under the law of the jurisdiction in which the Lender is incorporated or
resident for tax purposes if that Tax is imposed on, or calculated by reference to, the net income, profits or gains received or receivable (but not any sum deemed to be received or receivable) by the Lender; or 

 

	 	(b)	 the extent that a loss, liability or cost is compensated for by an increased payment under Clause 11.6
(Withholding; Gross-up); 

  

	 	(c)	 would have been compensated for by an increased payment under Clause 11.6 (Withholding; Gross-up) but was not so compensated solely because Clause 11.6.3 applied; or 

  

	 	(d)	 the extent a loss, liability or cost relates to a FATCA Deduction required to be made by any party.

  

	 	11.7.3	 If the Agent on behalf of the Lenders makes (or intends to make) a claim under Clause 11.7.1, it shall promptly
notify the Borrower of the event which has caused (or will cause) that claim. 

  

	11.8	 Stamp taxes  

The Borrower shall pay and, within five (5) Business Days of demand, indemnify the Agent on behalf of the Lender against any cost, loss or
liability the Lender incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Loan Document. 
  

	11.9	 Value Added Tax  

 

	 	11.9.1	 All amounts payable by the Borrower to the Lender under a Loan Document, that (in whole or in part) constitute
consideration for VAT purposes are deemed to be exclusive of VAT. Subject to Clause 11.9.2, if VAT is chargeable on any supply made by the Lender to the Borrower under a Loan Document, the Borrower shall pay the Agent (in addition to, and at the
same time as, paying the consideration) an amount equal to the amount of the VAT and the Lender shall promptly provide an appropriate VAT invoice to the Borrower. 

 

	 	11.9.2	 Where a Loan Document requires the Borrower to reimburse the Lender for any costs or expenses, the Borrower
shall, at the same time, reimburse and indemnify the Agent on behalf of the Lenders against all VAT incurred by the Lender in respect of those costs or expenses. The amount payable shall be the amount that the Lender reasonably determines is the
amount that neither it, nor any other member of any group of which it is a member for VAT purposes, is entitled to recover from the relevant tax authority in respect of the VAT. 

  
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	11.10	 Other indemnities  

 

	 	11.10.1	 Each Obligor indemnifies, defends and holds each Finance Party and its directors, officers, employees, agents
or any other person affiliated with or representing such Finance Party (each, an “Indemnified Person”) harmless against: 

  

	 	(a)	 all direct obligations, demands, claims, and liabilities (collectively, “Claims”) asserted by
any other party in connection with the transactions contemplated by the Loan Documents including without limitation, any cost, loss or liability arising as a result of clause 5 (Sharing among the Finance Parties) of the Agency and Security Trust
Deed; 

  

	 	(b)	 any payment made to the Agent or the Security Agent pursuant to clause 3.11 of the Agency and Security Trust
Deed; and 

  

	 	(c)	 all direct losses or bank expenses incurred, or paid by such Indemnified Person from, following, or
consequential to transactions between the Finance Parties and such Obligors (including legal and audit fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’s gross negligence or wilful misconduct.

  

	11.11	 Illegality  

If it shall become unlawful for the Lenders to continue to fund or maintain any Credit Extensions, or to perform its obligations hereunder,
upon demand by Agent, the Obligors shall prepay the Credit Extensions in full with all accrued interest thereon and all other amounts payable by such Obligors hereunder. The Term Loan Early Termination Fee shall not be payable by the Obligors where
such illegality or unlawfulness arises as a result of an act or omission on the part of the Agent but, for the avoidance of doubt, the Term Loan Early Termination Fee shall be payable by the Obligors where such illegality or unlawfulness arises as a
result of any act or omission on such Obligor’s part. 
  

	11.12	 Additional Costs  

 

	 	11.12.1	 Borrower shall pay Agent, promptly after receipt of a written demand and suitable evidence of the cost having
been incurred by Agent, from time to time such amounts as Agent may reasonably determine to be necessary to compensate it for any costs incurred by Agent that Agent determines are directly attributable to its making or maintaining of any amount
receivable by Agent hereunder in respect of any Credit Extensions relating thereto (such increases in costs and reductions in amounts receivable being herein called “Additional Costs”), in each case resulting from any regulatory
change which: 

  
 41 

	 	(a)	 changes the basis of taxation of any amounts payable to Agent under this Agreement in respect of any Credit
Extensions (other than changes which affect taxes measured by or imposed on the overall net income of Agent by the jurisdiction in which Agent has its principal office); 

 

	 	(b)	 imposes or modifies any reserve, special deposit or similar requirements relating to any extensions of credit
or other assets of, or any deposits with, or other liabilities of Agent; or 

  

	 	(c)	 imposes any other condition affecting this Agreement (or any of such extensions of credit or liabilities),

 (each of the events specified at Clauses 11.12.1(a), 11.12.1(b) and 11.12.1(c) (except an event attributable to the
wilful breach by the Agent or any of its Affiliates of any law or regulation) being a “Regulatory Change”). 
  

	 	11.12.2	 Agent will notify Borrower of any event occurring after the Closing Date which will entitle Agent to
compensation pursuant to this Clause 11.12 (Additional Costs) as promptly as practicable after it obtains knowledge thereof and determines to request such compensation. Agent will furnish Borrower with a statement setting out the basis and
amount of each request by Agent for compensation under this Clause 11.12 (Additional Costs). Determinations and allocations by Agent for purposes of this Clause 11.12 (Additional Costs) of the effect of any Regulatory Change on
its costs of maintaining its obligations to make Credit Extensions, of making or maintaining Credit Extensions, or on amounts receivable by it in respect of Credit Extensions, and of the additional amounts required to compensate Agent in respect of
any Additional Costs, shall be conclusive in the absence of manifest error. 

  

	 	11.12.3	 If Agent shall determine (acting reasonably) that the adoption or implementation of any applicable law, rule,
regulation, or treaty regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank, or comparable agency charged with the interpretation or
administration thereof, or compliance by Agent (or its applicable lending office) with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank, or comparable agency, has or
would have the effect of reducing the rate of return on capital of Agent or any person or entity controlling Agent (a “Parent”) as a consequence of its obligations hereunder to a level below that which Agent (or its Parent) could
have achieved but for such adoption, change, or compliance (taking into consideration policies with respect to capital adequacy) by an amount deemed by Agent to be material, then from time to time, within five (5) days after demand by Agent,
Borrower shall pay to Agent such additional amount or amounts as will compensate 

  
 42 

	 	Agent for such reduction. A statement of Agent claiming compensation under this Clause 11.12 (Additional Costs) and setting out the additional amount or amounts to be paid to it hereunder shall be conclusive
absent manifest error. 

  

	11.13	 Indemnity to the Agent  

 

	 	11.13.1	 The Borrower shall promptly indemnify the Agent against: 

 

	 	(a)	 any cost, loss or liability incurred by the Agent (acting reasonably) as a result of: 

 

	 	(i)	 investigating any event which it reasonably believes is an Event of Default; 

 

	 	(ii)	 acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and
appropriately authorised; or 

  

	 	(iii)	 instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts as
permitted under this Loan Agreement; and 

  

	 	(b)	 any reasonable cost, loss or liability (including, without limitation, for negligence or any other category of
liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent’s gross negligence or wilful misconduct) in acting as Agent under the Loan Documents. 

 

	11.14	 Indemnity to the Security Agent  

 

	 	11.14.1	 Each Obligor jointly and severally shall promptly indemnify the Security Agent and every Receiver against any
reasonable cost, loss or liability incurred by any of them as a result of: 

  

	 	(a)	 any failure by the Borrower to comply with its obligations under Clause 2.10.2 (Lenders Expenses) and
Clause 11.4 (Lenders Expenses); 

  

	 	(b)	 acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and
appropriately authorised; 

  

	 	(c)	 the taking, holding, protection or enforcement of the Security Document; 

 

	 	(d)	 the exercise of any of the rights, powers, discretions, authorities and remedies vested in the Security Agent
and each Receiver by the Loan Documents or by law; 

  
 43 

	 	(e)	 any default by any Obligor in the performance of any of the obligations expressed to be assumed by it in the
Loan Documents; or 

  

	 	(f)	 acting as Security Agent or Receiver under the Loan Documents or which otherwise relates to any of the
Collateral (otherwise, in each case, than by reason of the relevant Security Agent’s or Receiver’s gross negligence or wilful misconduct). 

  

	 	11.14.2	 The Security Agent and every Receiver may, in priority to any payment to the Lenders and to the fullest extent
permitted under applicable law, indemnify itself out of the Collateral in respect of, and pay and retain, all sums necessary to give effect to the indemnity in this Clause 11.14 and shall have a lien on the Lenders’ rights under the Security
Documents and the proceeds of the enforcement of the Security Documents for all moneys payable to it. 

  

	11.15	 FINANCE PARTIES OBLIGATION  

 

	 	11.15.1	 The Finance Parties each acknowledge that the Borrower is a company whose financial instruments are traded in a
Multilateral Trading Facility and that information of the Group provided to them pursuant to the Loan Documents may constitute inside information for the purposes of the Market Abuse Regulation (“MAR”) and other applicable
legislation. Accordingly, each of the Finance Parties hereby irrevocably and unconditionally covenant with the Obligors that: 

  

	 	(a)	 such Finance Party will create and keep up to date a list of any individuals who have access to any information
from the Group in respect of the Loan Documents (or disclosed to them in connection with the Loan Documents) in the form provided to such Finance Party by the Borrower on or around the date of this Agreement or in such other form as may be
reasonably agreed between the Borrower and the relevant Finance Party (such lists being “Finance Party Insider Lists”); 

  

	 	(b)	 such Finance Party shall promptly provide a copy of any Finance Party Insider List held by it to the Borrower
or to the Financial Conduct Authority upon request in writing by either of the foregoing; 

  

	 	(c)	 such Finance Party shall retain all copies of any Finance Party Insider Lists held by it for not less than five
(5) years after the expiration of any obligations owed by the Obligors to the Finance Parties pursuant to the Loan Documents; 

  
 44 

	 	(d)	 such Finance Party shall take reasonable measures to ensure that any person named on a list is aware of the
sanctions that may apply for any misuse or unauthorised distribution of any inside information held by them in respect of any members of the Group; and 

  

	 	(e)	 such Finance Party shall take all measures necessary or desirable within its control to ensure that it is in
compliance with the requirements of MAR and any similar applicable legislation in relation to such inside information provided to it pursuant to the Loan Documents. 

 

	12	 GUARANTEE AND INDEMNITY  

 

	12.1	 Each Guarantor irrevocably and unconditionally: 

 

	 	12.1.1	 guarantees to the Finance Parties punctual performance by the Borrower of all such Borrower’s obligations
under the Loan Documents; 

  

	 	12.1.2	 undertakes with the Finance Parties that whenever the Borrower does not pay any amount when due under or in
connection with any Loan Document and after any applicable grace period has expired, that Guarantor shall promptly and without delay on demand pay that amount as if it was the principal obligor; and 

 

	 	12.1.3	 agrees with the Finance Parties that if any obligation guaranteed by it is or becomes unenforceable, invalid or
illegal, it will, as an independent and primary obligation, indemnify the Finance Parties promptly and without delay on demand against any cost, loss or liability it incurs as a result of the Borrower not paying any amount which would, but for such
unenforceability, invalidity or illegality, have been payable by it under any Loan Document on the date when it would have been due. The amount payable by the Guarantor under this indemnity will not exceed the amount it would have had to pay under
this Clause 12 if the amount claimed had been recoverable on the basis of a guarantee. 

  

	12.2	 This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by the
Borrower under the Loan Documents, regardless of any intermediate payment or discharge in whole or in part. 

  

	12.3	 If any discharge, release or arrangement (whether in respect of the obligations of the Borrower or any security
for those obligations or otherwise) is made by the Agent in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation,
then the liability of each Guarantor under this Clause 12 will continue or be reinstated as if the discharge, release or arrangement had not occurred. 

  
 45 

	12.4	 The obligations of each Guarantor under this Clause 12 will not be affected by an act, omission, matter or
thing which, but for this Clause 12, would reduce, release or prejudice any of its obligations under this Clause 12 (without limitation and whether or not known to it or the Finance Parties) including: 

 

	 	12.4.1	 any time, waiver or consent granted to, or composition with, the Borrower or other person;

  

	 	12.4.2	 the release of the Borrower or any other person under the terms of any composition or arrangement with any
creditor of the Borrower; 

  

	 	12.4.3	 the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up
or enforce, any rights against, or security over assets of, the Borrower or other person or any non-presentation or non-observance of any formality or other requirement
in respect of any instrument or any failure to realise the full value of any security; 

  

	 	12.4.4	 any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or
status of the Borrower or any other person; 

  

	 	12.4.5	 any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more
onerous) or replacement of any Loan Document or any other document or security including without limitation any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under any Loan Document or
other document or security; 

  

	 	12.4.6	 any unenforceability, illegality or invalidity of any obligation of any person under any Loan Document or any
other document or security; or 

  

	 	12.4.7	 any insolvency or similar proceedings. 

 

	12.5	 Without prejudice to the generality of this Clause 12, each Guarantor expressly confirms that it intends that
this guarantee shall extend from time to time to any (however fundamental) variation, increase, extension or addition of or to any of the Loan Documents and/or any facility or amount made available under any of the Loan Documents for the purposes of
or in connection with any of the following: business acquisitions of any nature; increasing working capital; enabling investor distributions to be made; carrying out restructurings; refinancing existing facilities; refinancing any other
indebtedness; making facilities available to new borrowers; any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and any fees, costs and/or expenses associated with any of
the foregoing. 

  

	12.6	 Each Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on
its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from each Guarantor 

  
 46 

	 	under this Clause 12 provided the Borrower is in breach of the Obligations and any applicable grace period has been exhausted. This waiver applies irrespective of any law or any provision of a Loan Document to the
contrary. 

  

	12.7	 Unless: 

  

	 	12.7.1	 all amounts which may be or become payable by the Borrower under the Loan Documents have been irrevocably paid
in full; or 

  

	 	12.7.2	 the Agent otherwise directs, 

each Guarantor shall not, after a claim has been made or by virtue of any payment by it under this Clause 12: 

 

	 	(a)	 present claims for the creditor’s meeting to the bankruptcy trustee or administrator of, or vote as a
creditor of the Borrower that is bankrupt in competition with the Finance Parties; or 

  

	 	(b)	 receive, claim or have the benefit of any payment from or on account of the Borrower, or exercise any right of set-off against the Borrower. 

  

	12.8	 Until all amounts which may be or become payable by the Borrower under or in connection with the Loan Documents
have been irrevocably paid in full and unless the Agent otherwise directs, each Guarantor will not exercise any rights which it may have by reason of performance by it of its obligations under the Loan Documents or by reason of any amount being
payable, or liability arising, under this Clause 12: 

  

	 	12.8.1	 to be indemnified by the Borrower; 

 

	 	12.8.2	 to claim any contribution from any other guarantor of the Borrower’s obligations under the Loan Documents;

  

	 	12.8.3	 to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the
Finance Parties under the Loan Documents or of any other guarantee or security taken pursuant to, or in connection with, the Loan Documents by any Finance Party; 

 

	 	12.8.4	 to bring legal or other proceedings for an order requiring the Borrower to make any payment, or perform any
obligation, in respect of which such Guarantor has given a guarantee, undertaking or indemnity under Clause 12.1; 

  

	 	12.8.5	 to exercise any right of set-off against the Borrower; and/or

  

	 	12.8.6	 to claim or prove as a creditor of the Borrower in competition with the Finance Parties. 

 

	 	12.8.7	 If the Borrower receives any benefit, payment or distribution in relation to such rights it shall hold that
benefit, payment or distribution to the extent 

  
 47 

	 	necessary to enable all amounts which may be or become payable to the Finance Parties by the Obligors under or in connection with the Loan Documents to be repaid in full on trust for the Finance Parties and shall
promptly pay or transfer the same to the Agent or as the Agent may direct for application. 

  

	12.9	 This guarantee is in addition to and is not in any way prejudiced by any other guarantee or security now or
subsequently held by the Finance Parties. 

  

	12.10	 This guarantee does not apply to any liability to the extent that it would result in this guarantee
constituting unlawful financial assistance. 

  

	13	 NOTICES  

All notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be
in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and five (5) Business Days after deposit in the mail, first class, registered or certified mail return receipt
requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when
delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address indicated below. Finance Parties or Borrower may change their mailing or electronic
mail address or facsimile number by giving the other party written notice thereof in accordance with the terms of this Clause 13 (Notices). 

If to Borrower: 
 Mereo BioPharma
Group plc 
 4th Floor, 
 1
Cavendish Place, 
 London W1G 0QF 

Attn: General Counsel 
 Email:
legal@mereobiopharma.com 
 If to the Guarantors (on behalf of all of them): 

Mereo Biopharma 1 Limited 
 4th
Floor, 
 1 Cavendish Place, 

London W1G 0QF 
 Attn: General
Counsel 
 Email: legal@mereobiopharma.com 

  
 48 

 
with a copy to: 
 Covington & Burling LLP 

265 Strand 
 London, WC2R 1BH 

Attn: James Gubbins 
 Email:
jgubbins@cov.com 
 If to Silicon Valley Bank (as Lender): 

Silicon Valley Bank 
 Alphabeta

 14-18 Finsbury Square 

London EC2A 1BR 
 Attn: Jim Watts

 Fax: +44(0)207 600 9556 

Email: JWatts2@svb.com 
 with a
copy to: 
 Charles Russell Speechlys LLP 

5 Fleet Place 
 London EC4M 7RD

 Fax: +44 (0)207 427 6600 

Attn: Chris Putt 
 If to Kreos
Capital V (UK) Limited (as Lender, Agent, Security Agent): 
 25-28 Old Burlington Street 

London 
 W1S 3AN 

Fax: +44 (0)207 409 1034 

Attention: Jack Diamond 
 with a
copy to: 
 Charles Russell Speechlys LLP 

5 Fleet Place 
 London EC4M 7RD

 Fax: +44 (0)207 427 6600 

Attn: Chris Putt 

  
 49 

	14	 AGENCY AND SECURITY TRUST DEED  

The terms of the Agency and Security Trust Deed shall be deemed to be incorporated in this Agreement as though set out in full in this
Agreement, with any reference to “this Deed” being deemed to be a reference to “this Agreement”, subject to any necessary changes. 
  

	15	 CHOICE OF LAW AND JURISDICTION  

 

	15.1	 This Agreement and any non-contractual obligations arising out of or in
connection with it are governed by English law. 

  

	15.2	 The courts of England have exclusive jurisdiction to settle any dispute (a “Dispute”) arising
out of or in connection with this Agreement (including a dispute regarding the existence, validity or termination of this Agreement or any non-contractual obligations arising out of or in connection with this
Agreement). It is agreed that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no party will argue to the contrary. 

 

	15.3	 This Clause 15 (Choice of Law and Jurisdiction) is for the benefit of the Finance Parties only. As a
result, the Finance Parties shall not be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions.

  

	16	 GENERAL PROVISIONS  

 

	16.1	 Changes to the Parties  

 

	 	16.1.1	 This Agreement binds and is for the benefit of the successors and permitted assigns of each party.

  

	 	16.1.2	 No Borrower may assign any of its rights or transfer any of its rights or obligations under the Loan Documents
without the Agent’s prior written consent (which may be granted or withheld in the Agent’s sole discretion). 

  

	 	16.1.3	 The Finance Parties have the right, with prior written notice, but without the consent of the Borrower, to
sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, their obligations, rights and benefits under any Loan Document to a Permitted Transferee. Notwithstanding any other provisions of this Agreement, no
transfer shall be made to any person which is a Competitor of the Borrower or any other Group company. 

  

	 	16.1.4	 In the case of any assignments under any Loan Documents, the Obligors shall only be required to make any
additional payments under Clause 11.6.2 (Withholding; Gross-up) to the same extent as would have been the case if the sale, transfer, assignment, negotiation or participation had not occurred.
This Clause 16.1.4 shall not apply to a Treaty Lender that has 

  
 50 

	 	
included a confirmation of its scheme reference number and its jurisdiction of tax residence in accordance with Clause 11.6.4(b) if the Obligor has not made a Borrower DTTP Filing in respect of
that Treaty Lender. 

  

	 	16.1.5	 An assignment or transfer of part of the Kreos Commitment or the SVB Commitment or part of its rights and
obligations under this Agreement by a Lender must be in a minimum amount of One Hundred Thousand Pounds (£100,000) or multiples thereof. 

  

	16.2	 Accession of Borrowers  

 

	 	16.2.1	 The Agent may request that any of the Borrower’s Subsidiaries becomes a Borrower and/or a Guarantor. Upon
such request from the Agent, the Subsidiary and the Borrower shall within thirty (30) days of such request provide the Agent with: 

  

	 	(a)	 a duly completed and executed Accession Deed; 

 

	 	(b)	 if the relevant Subsidiary is incorporated in a jurisdiction different to the existing Obligors or if otherwise
required, an amendment to this Agreement setting out such additional matters as the Agent’s local counsel may advise are required; and 

  

	 	(c)	 such Security and other documents (including, but not limited to, opinions of counsel) and evidence as it may
reasonably request (in form and substance similar to the items provided by the Obligors pursuant to Clause 3 (Conditions of Loans). 

  

	 	16.2.2	 The Agent shall notify the Obligors promptly upon being satisfied that it has received all of the items listed
in Clause 16.2.1. 

  

	16.3	 Right of Set-Off  

 

	 	16.3.1	 Each Obligor at any time whilst an Event of Default is continuing, authorises each Finance Party to apply
(without prior notice) any credit balance (whether or not then due) to which such Obligor is at any time beneficially entitled on any account at, any sum held to its order by and/or any liability or obligation (whether or not matured) of, any office
of SVB in or towards satisfaction of any sum then due and payable by it to any Finance Party under the Loan Documents and unpaid and, for that purpose, to convert one currency into another, provided that nothing in this Clause 16.3 shall create a
charge. 

  

	 	16.3.2	 The Finance Parties shall not be obliged to exercise any of their rights under this Clause 16, which shall be
without prejudice and in addition to any right of set-off, combination of accounts, lien or other right (including the benefit of the Loan Documents) to which it is at any time otherwise entitled (whether by
operation of law, contract or otherwise). 

  

  
 51 

	16.4	 Sanctions  

Each Obligor undertakes to the Agent that it is not: 
  

	 	16.4.1	 a Restricted Party and is not engaging in any transaction or conduct that could be reasonably expected to
result in it becoming a Restricted Party; 

  

	 	16.4.2	 subject to any claim, proceeding, formal notice or investigation with respect to Sanctions;

  

	 	16.4.3	 is engaging in any transaction that evades or avoids, or has the purpose of evading or avoiding, or breaches or
attempts to breach, directly or indirectly, any Sanctions applicable to it; or 

  

	 	16.4.4	 is engaging, directly or indirectly, in any trade, business or other activities with or for the benefit of a
Restricted Party. 

  

	16.5	 Severability of Provision  

Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision. 

 

	16.6	 Correction of Loan Documents  

Agent may complete any blanks in the Loan Documents consistent with the agreement of the parties. 

 

	16.7	 Amendments in Writing; Waiver; Integration  

No purported amendment or modification of any Loan Document, or waiver, discharge or termination of any obligation under any Loan Document,
shall be enforceable or admissible unless, and only to the extent, expressly set out in writing signed by the party against which enforcement or admission is sought. Without limiting the generality of the foregoing, no oral promise or statement, nor
any action, inaction, delay, failure to require performance or course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document. Any waiver granted shall be limited to the specific
circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further waiver. The Loan Documents represent
the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties hereto about the subject matter of the Loan
Documents shall cease to have effect from the date of this Agreement. 
  

	16.8	 Counterparts  

This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed
and delivered, are an original, and all taken together, constitute one Agreement. 

  
 52 

	16.9	 Survival  

All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its
terms and all Obligations (other than obligations which, by their terms, are to survive the termination of this Agreement) have been paid in full and satisfied. The obligation of the Obligors in Clause 11.10 (Other Indemnities) to indemnify
Finance Parties shall survive until the statute of limitations with respect to such claim or cause of action shall have run. 
  

	16.10	 Confidentiality  

 

	 	16.10.1	 In handling any confidential information, the Finance Parties shall exercise the same degree of care that it
exercises for their own proprietary information, but disclosure of information may be made: (a) to such Finance Parties Subsidiaries or Affiliates; (b) to prospective transferees or purchasers of any interest in the Credit Extensions
(provided, however, such Finance Party shall use its reasonable efforts to obtain any prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order;
(d) to such Finance Party regulators or as otherwise required in connection with such Finance Party examination or audit; (e) as such Finance Party considers appropriate in exercising remedies under the Loan Documents; and (f) to
third-party service providers of such Finance Party so long as such service providers have executed a confidentiality agreement with the Finance Parties with terms no less restrictive than those contained herein. 

 

	 	16.10.2	 Confidential information does not include information that is either: (i) in the public domain or in the
Finance Parties possession when disclosed to the Finance Parties, or becomes part of the public domain after disclosure to the Finance Parties; or (ii) disclosed to the Finance Parties by a third party if the Finance Parties do not know that
the third party is prohibited from disclosing the information. 

  

	 	16.10.3	 The Finance Parties may use confidential information for the development of databases, reporting purposes, and
market analysis so long as such confidential information is aggregated and anonymised prior to distribution unless otherwise expressly permitted by the Obligors. The provisions of the immediately preceding sentence shall survive the termination of
this Agreement 

  

	16.11	 Continuing obligations  

All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its
terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been satisfied.     

  
 53 

	16.12	 Relationship  

The relationship of the parties to this Agreement is determined solely by the provisions of this Agreement. The parties hereto do not intend to
create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of parties to an arm’s-length contract. 

 

	16.13	 Third Party Rights  

A Person who is not a party to this Agreement has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce or enjoy the
benefit of any term of this Agreement. 
  

	16.14	 Calculations and certificates  

 

	 	16.14.1	 Agent shall maintain accounts evidencing the amount the Obligors owe it, in accordance with its usual practice.
The entries made in the accounts maintained by Agent are prima facie evidence of the Obligors’ obligations and amount owed to Agent. 

  

	 	16.14.2	 Any certification or determination by Agent of a rate or amount under this Agreement is, in the absence of
manifest error, conclusive evidence of the matters to which it relates. Each certificate or determination shall contain reasonable details of the basis of determination. 

 

	17	 DEFINITIONS  

  

	17.1	 Definitions  

In this Agreement: 

“Accession Deed” a deed relating to this Agreement, in the form set out at Exhibit D whereby any third party
entering into the Accession Deed shall become bound by the terms of this Agreement. 
 “Account Debtors” a person or
enterprise who owes money to the Borrower at any time. 
 “Accounts Date” is defined in Clause 5.4.1 (Financial
Statements; Financial Condition). 
 “Accounts” are all present and future book debts, accounts, accounts receivable,
contract rights, and other obligations owed to Borrower in connection with its sale or lease of goods (including licensing software and other technology) or provision of services, all credit insurance, guarantees, other security and all merchandise
returned or reclaimed by Borrower and Borrower’s Books relating to any of the foregoing, as such definition may be amended from time to time. 

“Additional Costs” is defined in Clause 11.12 (Additional Costs). 

  
 54 

 “Advance Payment” Nine Hundred Sixty Thousand Ninety Seven Pounds and
Twenty Eight Pence (£960,097.28).  
 “Affiliate” is a Person that owns or controls directly or
indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, including any Subsidiaries, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a
limited liability company, that Person’s managers and members. 
 “Agency and Security Trust Deed” the deed dated on or
about the Closing Date between, among others, the Agent, the Security Agent and the Lenders in relation to this Agreement. 
 “Agreed
Form” means in relation to any document the form of that document specifically agreed by or on behalf of Borrower and Agent. 

“Agreement” means this loan agreement. 

“Alpha 1 Grant” means the unsecured funding of up to Four Hundred Thousand US Dollars (US$400,000) proposed to be obtained by
Mereo BioPharma Group Plc from The Alpha-1 Project, Inc; 
 “Arrangement Fee” is
defined in Clause 2.10.1 (Arrangement Fee). 
 “Availability Period” the period up to and including 1 October
2018. 
 “Borrowers” the Borrower and any company that becomes a Borrower in accordance with Clause 16.2 (Accession of
Obligors) and “Borrower” means any one of them. 
 “Borrower Debenture” the debenture in respect of all
assets and undertaking of the Borrower in the Agreed Form. 
 “Business Day” is any day that is not a Saturday, Sunday, a
day on which either Lender is closed or a day on which leading banks are closed in the City of London, England and/or the State of California. 

“Business” means the research, development, production, trading and licensing of rights, Intellectual Property and/or products
within the life sciences industry (or any of the foregoing or any activities connected thereto).  
 “Change in
Control” means any event, transaction, or occurrence as a result of which any person (a) acquires directly or indirectly the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to (i) cast, or
control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the Borrower, or (ii) appoint or remove all, or the majority, of the members of the board of the Borrower; or (b) acquires
directly or indirectly the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to hold beneficially more than 50% of the issued share capital of either the Borrower. 

  
 55 

 “Claims” is defined in Clause 11.10.1(a) (Other indemnities). 

“Clinical Trials Directive” is defined in Clause 6.7 (Clinical Trials). 

“Closing Date” means the date of satisfaction of all conditions to drawdown of the Facility to Clause 3 (Conditions of
Loans) being in any event a date not later than 1 October 2018. 
 “Closing” means closing of the transaction
contemplated by this Agreement pursuant to Clause 3 (Conditions of Loans). 
 “Code” the US Internal Revenue Code of
1986. 
 “Collateral” is defined in Clause 4.1 (Security Documents). 

“Companies Act” the Companies Act 2006 as amended from time to time. 

“Competitor” means any entity (other than a reputable financial institution) whose business directly competes with the
Business carried out by a Group company; 
 “Compliance Certificate” means the certificate in the form of Exhibit
B to this Agreement. 
 “Contingent Obligation” is, for any Person, any direct or indirect liability, which is
dependent or contingent upon a future event including (i) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed,
co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (ii) any obligations for undrawn letters of credit for the account of that Person; and
(iii) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designed to protect a Person against fluctuation in interest rates, currency exchange
rates or commodity prices. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it
determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 

“Convertible Loan” means the convertible loan pursuant to the loan note instrument dated 3 June 2016 between the Borrower
(as the issuer) and Novartis Pharma AG (as the noteholder) as amended from time to time.  
 “Copyrights” are all
copyright rights, applications or registrations and like protections in each work or authorship or derivative work, whether published or not (whether or not it is a trade secret) now or later existing, created, acquired or held, including those
described in the Perfection Certificate. 
 “Credit Extension” is the Term Loan or any other extension of credit by Finance
Parties for Borrower’s benefit under this Agreement. 

  
 56 

 “CTA” means the Corporation Tax Act 2009.  

“Debentures” together the Borrower Debenture, Guarantor 1 Debenture, Guarantor 2 Debenture, Guarantor 3 Debenture, Guarantor 4
Debenture and Guarantor 5 Debenture. 
 “Default Rate” is defined in Clause 2.9.2 (Default Rate). 

“Delegate” any delegate, agent, attorney or co-trustee appointed by the Security
Agent.  
 “Deposit” is defined in Clause 2.10.2 (Lenders Expenses). 

“Dispute” is defined in Clause 15 (Choice of Law and Jurisdiction). 

“Drawdown Date” is the date on which the Term Loan is made; 

“Equipment” is all present and future machinery, equipment, tenant improvements, furniture, fixture vehicles (including motor
vehicles and trailers), tools, parts and attachments in which an Obligor has any interest. 
 “Event of Default” means any
of the events set out in Clause 10 (Events of Default). 
 “Facility” means the loan facility made available under
this Agreement. 
 “FATCA” means: 
  

	 	(a)	 sections 1471 to 1474 of the Code or any associated regulations or other official guidance;

  

	 	(b)	 any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating to an
inter-governmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of paragraph (a) above; or 

  

	 	(c)	 any agreement pursuant to the implementation of paragraph (a) or (b) above with the IRS, the US government
or any governmental or taxation authority in any other jurisdiction. 

 “FATCA Deduction” means a
deduction or withholding from a payment under a Loan Document required by FATCA. 
 “FATCA Exempt Party” means a Party that
is entitled to receive payments free from any FATCA Deduction. 
 “Final Payment” means ten and a half per cent. (10.5%) of
the total principal amount drawn by Borrower under the Facility payable on the Final Repayment Date or otherwise in accordance with Clause 2.8 (Final Payment). 

“Final Repayment Date” as at the date of this Agreement being 1 March 2021, or as may be extended to 1 March 2022 in
accordance with Clause 2.2.3. 

  
 57 

 “Finance Parties” means together the Lenders, the Agent and the Security
Agent, each of them being a “Finance Party”. 
 “Foreign Currency” means any lawful money that is not
Sterling. 
 “GAAP” is generally accepted accounting principles in the United Kingdom, including IFRS. 

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

“Governmental Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority,
instrumentality, regulatory body, Regulatory Authority, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any
self-regulatory organisation. 
 “Group” means the Borrower and its Subsidiaries from time to time; 

“Guarantor 1” Mereo BioPharma 1 Limited, a company formed in England and Wales with CRO number 09646998 and registered office
at 4th Floor, One Cavendish Place, London, W1G 0QF, England. 
 “Guarantor 2” Mereo BioPharma 2 Limited, a company formed in
England and Wales with CRO number 09647035 and registered office at 4th Floor, One Cavendish Place, London, W1G 0QF, England. 

“Guarantor 3” Mereo BioPharma 3 Limited, a company formed in England and Wales with CRO number 09647034 and registered office
at 4th Floor, One Cavendish Place, London, W1G 0QF, England. 
 “Guarantor 4” Mereo BioPharma 4 Limited, a company formed in
England and Wales with CRO number 11029583 and registered office at 4th Floor, One Cavendish Place, London, W1G 0QF, England. 

“Guarantor 5” Mereo Biopharma Ireland Limited, a company formed in the Republic of Ireland with CRO number 627891 and
registered office at 25 – 28 North Wall Quay, Dublin 1, D01H104, Ireland. 
 “Guarantors” Guarantor 1, Guarantor 2,
Guarantor 3, Guarantor 4 and Guarantor 5 and any person who guarantees the Obligations in accordance with Clause 12 (Guarantee and indemnity) and any Person who becomes a Guarantor in accordance with Clause 16.2 (Accession of
Borrowers) and “Guarantor” means any one of them. 
 “Guarantor 1 Debenture” a debenture in respect of
all assets and undertaking of Guarantor 1 in the Agreed Form. 
 “Guarantor 2 Debenture” a debenture in respect of all
assets and undertaking of Guarantor 2 in the Agreed Form. 

  
 58 

 “Guarantor 3 Debenture” a debenture in respect of all assets and
undertaking of Guarantor 3 in the Agreed Form. 
 “Guarantor 4 Debenture” a debenture in respect of all assets and
undertaking of Guarantor 4 in the Agreed Form. 
 “Guarantor 5 Debenture” a debenture in respect of all assets and
undertaking of Guarantor 5 in the Agreed Form.  
 “IFRS” are the International Financial Reporting Standards, a
collection of guidelines and rules set by the International Accounting Standards Board (www.iasb.org) which are applicable to the circumstances as of the date of determination. 

“Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such as
reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations and (d) Contingent Obligations of Borrower. 

“Indemnified Person” is defined in Clause 11.10.1 (Other Indemnities). 

“Insolvency Proceeding” is defined in Clause 10.5 (Insolvency and Insolvency Proceedings). 

“Intellectual Property” means all of an Obligor’s present and future right, title, and interest in and to the following:

  

	 	(a)	 its Copyrights, Trademarks and Patents; 

 

	 	(b)	 any and all trade secrets and trade secret rights, including any rights to unpatented inventions, know-how and operating manuals; 

  

	 	(c)	 any and all source codes; 

 

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

 

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

  

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

“Intercreditor Agreement” the intercreditor agreement as between the Lenders dated on or about the Closing Date. 

“Interest Only Period” is defined in Clause 2.3.1(a) (Repayment of Term Loan). 

“Interest Payment Date” means the first day of each month. 

  
 59 

 “Interim Payment” the payment in respect of interest accruing during the
period from the Drawdown Date to the first Repayment Date, being an amount calculated at a fixed annual interest rate of eight and a half per cent. (8.5%), such amount accruing on a daily basis from the period from and including the Drawdown Date to
first Repayment Date following the Drawdown Date; 
 “Investment” is any beneficial ownership of stocks, shares, bonds and
securities (including any partnership interest) in any Person, or any loan, advance or capital contribution to any Person. 
 “IP
Agreement” is that certain Intellectual Property security confirmation agreement entered into by and between each Obligor and Agent dated on or around the date of this Agreement, as such may be amended from time to time. 

“ITA” means the Income Tax Act 2007.  

“Kreos Commitment” is Ten Million Two Hundred Twenty Seven Thousand and Five Hundred Pounds (£10,227,500.00). 

“Lender Expenses” are (a) all audit fees and expenses and reasonable costs and expenses (including reasonable legal fees
and expenses) for preparing, negotiating, closing and administering, the Loan Documents or otherwise incurred with respect to Borrower (up to a maximum aggregate amount of Ł20,000 plus VAT); and (b) all costs and expenses (including legal
fees and expenses) for defending and enforcing the Loan Documents (including appeals or Insolvency Proceedings) or otherwise incurred with respect to any Obligor in each case supported by a written invoice. 

“Letter of Credit” is a standby or commercial letter of credit issued by Agent upon request of an Obligor based upon an
application, guarantee, indemnity or similar agreement. 
 “Lien” is a mortgage, lien, deed of trust, levy, charge,
assignment, pledge, security interest or other encumbrance. 
 “Loan Documents” are, collectively, this Agreement, the
Intercreditor Agreement, the Agency and Security Trust Deed, the Perfection Certificates, the Security Documents, and any loan, notes or guarantees executed by an Obligor in favour of Finance Parties, and any other present or future agreement
between an Obligor and/or for the benefit of Finance Parties in connection with this Agreement, all as amended, extended or restated. 

“Loan Payment/Advance Request Form” is that certain form attached hereto as Exhibit A. 

“Management Accounts Date” is defined in Clause 5.4.2 (Financial Statements; Financial Condition). 

“Material Adverse Change” is: (i) a material impairment in the perfection or priority of Security Agent’s security
interest in the Collateral or in the value of such Collateral; 

  
 60 

 (ii) a material adverse change in the business, operations, or condition (financial or
otherwise) of an Obligor; or (iii) a material impairment of the prospect of repayment of any portion of the Obligations; 

“Member of the same Fund Group” is if the shareholder is a fund, partnership, company, syndicate or other entity whose
business is managed by a Fund Manager (an “Investment Fund”) or a nominee of that person: 
  

	 	(a)	 any participant or partner in or member of any such Investment Fund or the holders of any unit trust which is a
participant or partner in or member of any Investment Fund but only in connection with the dissolution of Investment Fund or any distribution of assets of the Investment Fund pursuant to the operation of the Investment Fund in the ordinary course of
business, 

  

	 	(b)	 any Investment Fund managed or exclusively advised by that Fund Manager, 

 

	 	(c)	 a Parent Undertaking or Subsidiary Undertaking of that Investment Fund or Fund Manager, or any Subsidiary
Undertaking of any Parent Undertaking of that Investment Fund or Fund Manager, or 

  

	 	(d)	 any trustee, nominee or custodian of such Investment Fund and vice versa; 

“Monthly Financial Statements” is defined in Clause 6.2.1 (Monthly Financial Statements). 

“Monthly Repayments” is defined in Clause 2.3.1(b) (Repayment of Term Loan). 

“Novartis Acquisition Agreement” means the three asset purchase agreements dated 28 July 2015, between Novartis and each
of the Guarantors, respectively, and which relate to the purchase by each Guarantor of certain intellectual property rights from Novartis. 

“Novartis” means Novartis Pharma AG, a company incorporated and registered in Switzerland whose registered office is Postfach,
4002 Basel Switzerland; 
 “Obligations” are all present and future monies, liabilities, obligations, debts, principal,
interest, Lender Expenses and other amounts owing by an Obligor to any Secured Party, in each case whether actual or contingent (including, but without limitation, Contingent Obligations) and whether owing as principal or as surety or in any other
capacity or of any nature arising, in each of the foregoing cases, under or in connection with the Loan Documents, and including interest accruing after Insolvency Proceedings begin. 

“Obligor’s Books” means all of an Obligor’s books and records including ledgers, records regarding that
Obligor’s assets or liabilities, the Collateral, business operations or financial condition and all computer programs or discs or any equipment containing such information. 

  
 61 

 “Obligors” means together, Borrower and Guarantors and
“Obligor” means any one of them. 
 “Original Term Loan Facility Agreement” means the up to
£20,000,000 term loan facility agreement between, amongst others, the Lenders and the Borrower dated 7 August 2017.  

“Parent” is defined in Clause 11.12.3 (Additional Costs). 

“Patents” are patents, including improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same, including as described in the Perfection Certificates and in each case owned by an Obligor. 

“Pay Off Confirmation” a statement confirming the final repayment amount under or in connection with the Original Term Loan
Facility Agreement and the balance of the Term Loan Amount available for drawdown by the Borrower in the Agreed Form. 
 “Perfection
Certificate” is defined in Clause 5.1 (Due Incorporation and Authorisation; Power and Authority) in respect of the Borrower and the Guarantors and “Perfection Certificates” is all of them. 

“Permitted Disposal” means: 
  

	 	(a)	 any licencing or sale of the Intellectual Property in the ordinary course of business on an arm’s length
basis, provided that the proceeds of such licensing or sale are used for the business of the Obligors, which shall, for the avoidance of doubt, include repayment obligations in respect of the Term Loan; 

 

	 	(b)	 any payment or disposal made in respect of Permitted Indebtedness, a Permitted Investment, a Permitted Lien, or
a Permitted Guarantee; 

  

	 	(c)	 any disposal of assets permitted by the Debenture relevant to the Obligor in question in exchange for cash or
other assets comparable or superior as to type, value or quality, or a disposal that is otherwise approved in writing by the Agent; 

  

	 	(d)	 any disposal from an Obligor to another member of the Group; and/or 

 

	 	(e)	 any disposal(s) not otherwise covered by the provisions of (a) to (d) above, up to an aggregate amount of
£250,000 (or its equivalent in other currencies) in any financial year. 

  
 62 

 “Permitted Guarantee” means: 

 

	 	(a)	 any guarantee, indemnity, performance bond or similar obligation given by a member of the Group for its
liabilities (or those of another member of the Group) in the ordinary course of business; 

  

	 	(b)	 any indemnity or guarantee in respect of documentation for an acquisition or disposal by an Obligor that is
permitted by the Loan Agreements; 

  

	 	(c)	 any guarantee or indemnity by a member of the Group in respect of any Permitted Indebtedness; and/or

  

	 	(d)	 any other guarantee or indemnity not otherwise covered by the provisions of (a) to (c) above, given by a
member of the Group, provided that the aggregate liability under such guarantees or indemnities permitted under this paragraph (d) shall not exceed £250,000 (or its equivalent in other currencies) in aggregate. 

“Permitted Indebtedness” is: 
  

	 	(a)	 an Obligor’s Indebtedness to Lenders under this Agreement or the Loan Documents; 

 

	 	(b)	 any sums payable pursuant to the Novartis Purchase Agreements; 

 

	 	(c)	 subject to the Subordination Agreement, any sums owing under the Convertible Loans; 

 

	 	(d)	 an Obligor’s Indebtedness in respect of the Alpha 1 Grant substantially as disclosed to the Lenders prior
to the date of this Agreement; 

  

	 	(e)	 Indebtedness existing on the date of this Agreement and shown on the Perfection Certificates;

  

	 	(f)	 unsecured Indebtedness to creditors (including professional advisers, suppliers, landlords, Governmental
Authorities, and service providers, and any netting or set-off arrangements with a bank or financial institution with whom an Obligor holds an account) incurred and discharged in the ordinary course of
business; 

  

	 	(g)	 Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of
business; 

  

	 	(h)	 Indebtedness secured by Liens permitted under paragraphs (a) and (c) of the definition of “Permitted
Liens”; 

  

	 	(i)	 any Indebtedness in respect of a Permitted Guarantee or Permitted Investment; 

 

	 	(j)	 Indebtedness owed by any member of the Group to another member of the Group; 

  
 63 

	 	(k)	 any Indebtedness in respect of any currency hedging agreement; 

 

	 	(l)	 any Indebtedness otherwise approved by the Agent; and/or 

 

	 	(m)	 any other Indebtedness not otherwise covered by the provisions of (a) to (l) above, provided that the
principal aggregate amount of the Indebtedness permitted under this paragraph (m) shall not exceed £250,000 (or its equivalent in other currencies) in aggregate. 

“Permitted Investments” are:  
  

	 	(a)	 Investments (including Subsidiaries) existing on the date of this Agreement and shown on the Perfection
Certificate; 

  

	 	(b)	 Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of an Obligor’s business; 

  

	 	(c)	 Investments accepted in connection with Transfers permitted by Clause 9.1 (Dispositions);

  

	 	(d)	 Investments (i) by an Obligor in its Subsidiaries to cover operating costs in the ordinary course of
business of such Subsidiary (ii) by Borrower in Subsidiaries and (iii) by Subsidiaries in other Subsidiaries or in Borrower; 

  

	 	(e)	 Investments consisting of (i) travel advances and employee relocation loans and other employee loans and
advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee share purchase plans or agreements approved by
Borrower’s Board of Directors; 

  

	 	(f)	 Investments (including debt obligations) received in connection with the bankruptcy or reorganisation of
customers or suppliers and in settlement of unfulfilled obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; and 

 

	 	(g)	 Investments consisting of notes receivable of, or prepaid royalties and other credit extensions to, customers
and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (i) shall not apply to Investments of Borrower in any Subsidiary; 

 

	 	(h)	 Investments in respect of the incorporation or acquisition of new Subsidiaries, provided that, if required by
Clause 8.2 (Further assurances), such Subsidiary shall become an Obligor; and/or 

  

	 	(i)	 Investments not otherwise covered by the provisions of (a) to (h) above, provided that the principal
aggregate amount of any Investments permitted under this paragraph (i) shall not exceed £250,000 (or its equivalent in other currencies) in aggregate. 

  
 64 

 “Permitted Liens” are: 

 

	 	(a)	 Liens arising under this Agreement, other Loan Documents or in favour of a Lender; 

 

	 	(b)	 Liens for taxes, fees, assessments or other government charges or levies, either being contested in good faith
or payment of which can be lawfully withheld and for which an Obligor maintains adequate reserves on Obligor’s Books, if they have no priority over any of Security Agent’s Liens; 

 

	 	(c)	 Purchase money Liens (i) on Equipment acquired or held by an Obligor incurred for financing the
acquisition of the Equipment securing no more than Two Hundred and Fifty Thousand Sterling (£250,000) in the aggregate amount outstanding, or (ii) existing on equipment when acquired, if the Lien is confined to the equipment itself and
improvements and the proceeds of the equipment; 

  

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

 

	 	(e)	 Liens in favour of other financial institutions arising in connection with an Obligor’s deposit accounts
held at such institutions, provided that Security Agent has a perfected security interest in the amounts held in such deposit accounts; 

  

	 	(f)	 Liens arising by operation of law in the ordinary course of business; 

 

	 	(g)	 Liens in respect of any rent deposit in relation to any lease of land or an interest in land by an Obligor;

  

	 	(h)	 any Lien not otherwise covered by the provisions of (a) to (g), provided that the total Indebtedness
secured by such Lien and permitted under this paragraph (h) shall not exceed one hundred thousand pounds Sterling £100,000; and/or 

  

	 	(i)	 Liens arising under the Original Term Loan Facility Agreement pending their release in accordance with the
terms of this Agreement with effect from the Drawdown Date. 

 “Permitted Transferee” are 

 

	 	(a)	 a nominee of the Lenders; 

  
 65 

	 	(b)	 a regulated, reputable financial institution; 

 

	 	(c)	 a member of the SVB Financial Group of companies; and/or 

 

	 	(d)	 a Member of the same Fund Group. 

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

“Receiver” a receiver or receiver and manager or administrative receiver of the whole or any part of the Collateral; 

 “Refinancing” means repayment in full of the principal and interest outstanding and owing by the Obligors to the
Lenders under the Original Term Loan Facility Agreement. 
 “Regulatory Authority” means any competent authority in
any country or region that regulates medicines and healthcare and life sciences products, including the UK Medicines and Healthcare Products Regulatory Agency, the European Medicines Agency, ethics committees and the US Food and Drug Administration.

 “Regulatory Change” is defined in Clause 11.12.1 (Additional Costs). 

“Repayment Date” the first Business Day of a calendar month, as specified in the Repayment Schedule; 

“Repayment Schedule” the fully amortising repayment schedule issued by the Agent to the Borrower prior to the Drawdown Date as
set out in Exhibit G (as supplemented or replaced from time to time); 
 “Responsible Officer” is each
executive director or other equivalent officer of any Obligor from time to time. 
 “Restricted Licence” is any material
licence or other agreement with respect to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such licence or agreement or any other property, or
(b) for which a default under or termination of could interfere with Security Agent’s right to sell any Collateral. 

“Restricted Party” means a person that is:  
  

	 	(a)	 listed on, or owned or controlled by a person listed on a Sanctions List, or a person acting on behalf of such
a person; 

  

	 	(a)	 located in or organised under the laws of a country or territory that is subject to country- or territory-wide
Sanctions, or a person who is owned or controlled by, or acting on behalf of such a person; 

  

	 	(b)	 otherwise a subject of Sanctions. 

  
 66 

 “Sanctions” means any trade, economic or financial sanctions laws,
regulations, embargoes or restrictive measures administered, enacted or enforced by a Sanctions Authority. 
 “Sanctions
Authority” means: 
  

	 	(a)	 the Security Council of the United Nations; 

 

	 	(b)	 the United States of America; 

 

	 	(c)	 the European Union; 

  

	 	(d)	 the United Kingdom; 

  

	 	(e)	 the official institutions or agencies of any of paragraphs (a) to (d) immediately above, including OFAC,
the United States Department of State, and Her Majesty’s Treasury. 

 “Sanctions List” means the
Specially Designated Nationals and Blocked Persons listed maintained by OFAC, the Consolidated List of Financial Sanctions Targets maintained by Her Majesty’s Treasury, or any similar list maintained by, or public pronouncement of a Sanctions
designation made by a Sanctions Authority, and that list of Tier 1 and Tier 2 sanctioned countries maintained by either of the Lenders, each as amended, supplemented or substituted from time to time. 

“Secured Parties” means a Finance Party, a Receiver or any Delegate and “Secured Party” means any one of
them. 
 “Security Documents” means the documents evidencing the security over the Collateral, including the
(i) Borrower Debenture; (ii) Guarantor 1 Debenture; (iii) Guarantor 2 Debenture, (iv) Guarantor 3 Debenture, (v) Guarantor 4 Debenture, (vi) Guarantor 5 Debenture, and (vii) the IP Agreement, and such other and
further documents and instruments as Agent deems reasonably necessary; all in form and content reasonably acceptable to Agent. 

“Sterling” or use of the sign “£” means the lawful currency of the United Kingdom of Great Britain and
Northern Ireland. 
 “Subordination Agreement” a subordination agreement in the Agreed Form in respect of the Convertible
Loans. 
 “Subsidiary” is a subsidiary undertaking within the meaning of section 1162 Companies Act 2006. 

“SVB Commitment” is Ten Million Two Hundred Twenty Seven Thousand and Five Hundred Pounds (£10,227,500.00). 

“Tax Credit” means a credit against, relief or remission for, or repayment of, any Tax. 

“Tax Deduction” is defined in Clause 11.6.1 (Withholding; Gross-up). 

  
 67 

 “Tax Payment” is defined in Clause 11.6.10 (Withholding; Gross-up). 
 “Taxes” means any present or future taxes, levies, duties, imposts or
other charges or withholdings of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same), and “Tax” and “Taxation” have a
corresponding meaning. 
 “Term Loan Amount” is together, the Kreos Commitment, and the SVB Commitment being an amount equal
to Twenty Million Four Hundred and Fifty Five Thousand Pounds (£20,455,000). 
 “Term Loan Early Termination Fee” is
defined in Clause 2.4.1(b) (Permitted Prepayment of Term Loan). 
 “Term Loan” the term loan facility made or
to be made by the Lenders to the Borrower under this Agreement or the principal amount outstanding form time to time as described in Clause 2.1 (Term Loan). 

“Trademarks” are trademark and service mark rights, registered or not, and the entire goodwill of the business of Borrower
connected with the trademarks, including as described in the Perfection Certificates. 
 “Transfer” is defined in Clause 9.1
(Dispositions). 
 “US Tax Obligor” means: 
  

	 	(a)	 an entity that is resident for tax purposes in the United States; or 

 

	 	(b)	 an entity, some or all of whose payments under the Loan Documents are from sources within the
United States for US federal income tax purposes. 

 “US Dollar” or use of the sign
“US$” means the lawful currency of the United States of America. 
 “Warrant Certificate” shall have the
same meaning as given to such term in the Warrant Instrument. 
 “Warrant Instrument” means a warrant instrument in Agreed
Form to be issued by the Borrower to Kreos Capital V (Expert Fund) LP and SVB on Closing. 
  

	17.2	 Interpretation. 

In this Agreement, unless the context otherwise requires or the contrary intention appears: 

 

	 	17.2.1	 a reference to a provision of law is a reference to that provision as extended, applied, amended or enacted
from time to time and includes any subordinate legislation; 

  
 68 

	 	17.2.2	 the singular includes the plural and vice versa, and reference to any gender includes the other genders;

  

	 	17.2.3	 references to this Agreement or any other agreement or document are to this Agreement or such other agreement
or document as it may be validly varied, amended, supplemented, restated, renewed, novated or replaced from time to time; 

  

	 	17.2.4	 references to any party to this Agreement include a reference to its successors and permitted assigns and
permitted transferees under this Agreement; 

  

	 	17.2.5	 references to “written” or “in writing” include all forms of visible reproduction in
permanent form, including electronic messages; 

  

	 	17.2.6	 the words “execution”, “signed”, “signature” and words of like import in any Loan
Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based
recordkeeping systems as the case may be, to the extent and as provided for in any applicable law; 

  

	 	17.2.7	 the headings used in this Agreement are for convenience only and shall not affect the interpretation of this
Agreement; 

  

	 	17.2.8	 the parties hereto mutually acknowledge that they and their lawyers have participated in the preparation and
negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist; 

 

	 	17.2.9	 any reference to: 

  

	 	(a)	 a “month” is a reference to a period starting on one day in a calendar month and ending on the
numerically corresponding day in the next calendar month (and “months” has a corresponding meaning) save that, where any such period would otherwise end on a day which is not a Business Day, it shall end on the next Business Day,
unless that day falls in the calendar month succeeding that in which it would otherwise have ended, in which case it shall end on the preceding Business Day provided that, if a period starts on the last Business Day in a calendar month or if there
is no numerically corresponding day in the month in which that period is to end, that period shall end on the last Business Day in that latter month; 

  

	 	(b)	 a “dispute” means any litigation or administrative or arbitration proceeding before or of any
court, tribunal, arbitrator or governmental or municipal authority, any labour dispute, any dispute with any governmental or municipal authority and any other dispute of any kind; 

  
 69 

	 	(c)	 any covenant by a party not to do an act or thing includes an obligation not to permit or suffer such act or
thing to be done; 

  

	 	17.2.10	 the words “including” and “in particular” and any similar words
or expressions are by way of illustration and emphasis only and do not operate to limit the generality or extent of any other words or expressions; 

  

	 	17.2.11	 all Exhibits to this Agreement form part of it and take effect as if set out in this Agreement, and any
reference to this Agreement includes the Exhibits; and 

  

	 	17.2.12	 references to Clauses and Exhibits refer to clauses of, and schedules and exhibits to, this Agreement.

 Signature page follows. 

  
 70 

 EXHIBIT A 

LOAN PAYMENT/ADVANCE REQUEST FORM 

[Repayment Schedule to be attached to this form] 

DEADLINE FOR SAME DAY PROCESSING IS
MIDDAY LONDON TIME 
  

											
	Fax To:	 	  
	 		  	Date:	 	  
	  	

  

LOAN PAYMENT:
                    MEREO BIOPHARAMA GROUP PLC 
  

 

			
	From Account #                                  
                                         
      	  	To Account #                                  
                                         
    
		
	(Deposit Account #)                                 
                                         
	  	(Loan Account #)                                 
                                        

		
	Principal £                                  
                                         
              	  	and/or Interest £                                
                                         
  

 

     

  

			
	Authorised Signature:                                 
                                   	  	Phone Number:                                  
                                         
  
		
	Print Name/Title:                                  
                                         
   	  	

  

     

 

LOAN ADVANCE: 

 

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

 

     

  

			
	From Account #                                  
                                         
     	  	To Account #                                  
                                         
     
		
	
(Loan Account #)                     
                                         
                 
  
	  	
(Deposit Account #)                     
                                         
       
  

	    
		
	 Amount of Term Loan £
                                         
                         
  
	  	
	    
		
	Date Term Loan is to be made                            
                              	  	

  
 71 

	
	  

All Borrower’s representations and warranties in the Loan Agreement are true, correct and complete in all material respects on the date of the telephone
transfer request for an advance, but those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date: 

 

	
	  

  

			
	Authorised Signature:                                
                                    	  	Phone Number:                                  
                                         
 
		
	Print
Name/Title:                                       
                                       	  	

  

	
	  

 

OUTGOING WIRE REQUEST: 

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

Deadline for same day processing is midday London Time. 
  

	
	  

  

			
	Beneficiary Name:                                  
                                        	  	Amount of Wire:
£                                        
                               
		
	Beneficiary Bank:                                  
                                         
	  	Account Number:                                  
                                       
		
	City
and State:                                      
                                         
 	  	Sort Code:                                   
                                         
        

 By signing below, we acknowledge and agree that our funds transfer request shall be processed in accordance with and
subject to the terms and conditions set out in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by us. 
  

	
	  

  

			
	Authorised Signature:                                  
                                     	  	2nd
Signature (if required):                                   
                      
		
	Print
Name/Title:                                       
                                       	  	Print Name/Title:                                  
                                       
		
	Telephone
#:                                        
                                         
    	  	Telephone
#:                                        
                                        

  

	
	  

  
 72 

 EXHIBIT B 

COMPLIANCE CERTIFICATE 
  

	TO:	 SILICON VALLEY BANK 

KREOS CAPITAL V (UK) LIMITED 
  

	FROM:	 MEREO BIOPHARMA GROUP PLC. 

The undersigned authorised officer of Mereo Biopharma Group plc (“Borrower”) certifies that under the terms and conditions of the Loan Agreement
between Borrower, Guarantors, Lenders, Agent and Security Agent (the “Agreement”), (1) Borrower and the Guarantors are in complete compliance for the period ending
                                 with all required covenants except as noted
below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall
not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true,
accurate and complete in all material respects as of such date, (4) Borrower, and each of the Guarantors, has timely filed all required tax returns and reports, and Borrower and the Guarantors have timely paid all taxes, assessments, deposits
and contributions owed by Borrower and the Guarantors except as otherwise permitted pursuant to the terms of Clause 5.10 (Taxation) of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of the
Guarantors relating to unpaid employee payroll or benefits of which Borrower have not previously provided written notification to Agent. Attached are the required documents supporting the certification. The undersigned certifies that these are
prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that
Borrower or the Guarantors are not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalised terms used but not otherwise defined herein shall have the
meanings given to them in the Agreement. 
 Please indicate compliance status by circling Yes/No under “Complies” column.

  

					
	 Covenant
	  	 Required
	  	 Complies

	Monthly financial statements with Compliance Certificate	  	Within 45 days of each month end	  	Yes   No
			
	Annual financial statement (Audited)	  	180 days of financial year end	  	Yes   No
			
	Board approved operating plan	  	Within 60 days after the expiration of the immediately preceding financial year	  	Yes   No

  
 73 

					
	 Covenant
	  	 Required
	  	 Complies

	Board meeting pack	  	No later than 30 days after the date on which each board meeting is held	  	Yes   No
		  		  	
	 The following Intellectual Property was registered after the Closing Date (if no
registrations, state “None”)

	
	 The following legal actions are pending (if none state “None”)

 The following are the exceptions with respect to the certification above: (If no exceptions
exist, state “No exceptions to note.”) 
  
  

 
  
  

 
  

									
	MEREO BIOPHARMA GROUP PLC	 		 	KREOS USE ONLY
			
	for itself and each GUARANTOR 	 		 	
					
		 		 		 	Received by:	 	  

					
	By:	 	
                     
                                         
     
	 		 	authorised signer	 	
					
	Name:	 	  
	 		 	Date:	 	  

					
	Title:	 	  
	 		 	Verified:	 	  

					
		 		 		 	authorised signer	 	
					
		 		 		 	Date:	 	  

					
		 		 		 	Compliance Status:	 	Yes   No

  
 74 

 EXHIBIT C 

CLIENT PAYMENT INSTRUCTIONS 

KREOS 
  

					
	    Principal and Interest Repayments	 	 	    	Fee Payments
	 	 	 
	    in Sterling	 	 	    	in Sterling
	 	 	 
	    Please remit funds to:                  
                                         
        	 	 	    	Please remit funds to:                      
                                         
      
	 	 	 
	    Account Number:                     
                                         
           	 	 	    	Account Number:                        
                                         
          
	 	 	 
	    IBAN:                        
                                         
                         	 	 	    	IBAN:                           
                                         
                        
	 	 	 
	    Sort Code:                      
                                         
                     	 	 	    	Sort Code:                         
                                         
                    
	 	 	 
	    Swift Code:                      
                                         
                   	 	 	    	Swift Code:                         
                                         
                  
	 	 	 
	    Ref: Please quote your client name	 	 	    	Ref: Please quote your client name 
	 	 	 
	                       
                                         
                                         
	 	 	    	
                          
                                         
                                    

 

  
 SVB 

 

					
	    Principal and Interest Repayments	 	 	    	Fee Payments
		 	
	    in Sterling	 	 	    	in Sterling
		 	
	    Please remit funds to:                            
                                       	 	 	    	Please remit funds to:                               
                                      
		 	
	    Account Number:                               
                                         
 	 	 	    	Account Number:                                  
                                         

		 	
	    IBAN:                                 
                                         
                	 	 	    	IBAN:                                     
                                         
               
		 	
	    Sort Code:                               
                                         
            	 	 	    	Sort Code:                                   
                                         
          
		 	
	    Swift Code:                               
                                         
          	 	 	    	Swift Code:                                   
                                         
        
		 	
	    Ref: Please quote your client name	 	 	    	Ref: Please quote your client name
		 	
	                                      
                                         
                          	 	 	    	
                          
                                         
                                     

 

  

  
 75 

 EXHIBIT D 

FORM OF ACCESSION DEED 
  

			
	This Accession Deed is made on	  	201[●]

  

	(1)	 Mereo BioPharma Group plc a company registered in England and Wales with registration number [●]
and whose registered office is at [●] (the “Parent”) 

  

	(2)	 [●] a company registered [●] in with registration number [●] whose registered office is at
[●] (the “New Obligor”); and  

  

	(3)	 KREOS CAPITAL V (UK) LIMITED a limited liability company incorporated under the laws of
England & Wales with company number 09728300 and its registered office at 25 Old Burlington Street London W1S 3AN (in its capacity as agent the “Agent”), 

and is supplemental to a loan agreement made between the Borrower, the Guarantors, the Agent, the Security Agent and Silicon Valley Bank on [●] 2018
(the “Loan Agreement”). 
 Now this Accession Deed witnesses as follows: 

 

	1	 DEFINITIONS AND INTERPRETATION  

Unless a contrary intention appears, words and expressions defined in the Loan Agreement have the same meaning in this Accession Deed and
Clause 17.2 (Interpretation) of the Loan Agreement shall apply to this Accession Deed. 
  

	2	 CONFIRMATION  

 

	2.1	 The New Obligor confirms it has read and understood the content of the Loan Agreement. 

 

	2.2	 The Parent confirms that no Default is continuing or will occur as a result of the accession of the New Obligor
to the terms of the Loan Agreement. 

  

	3	 ACCESSION 

With effect from the date of this Accession Deed, the New Obligor becomes a party to, and will be bound by the terms of, and assume the
obligations and duties of a Borrower and Guarantor under, the Loan Agreement as if it had been a party to the Loan Agreement from [●] 2018. 
  

	4	 CONSTRUCTION 

  

	4.1	 The Loan Agreement shall continue and remain in full force and effect and this Accession Deed shall be read and
construed as one with the Loan Agreement so that all references to “this Agreement” in the Loan Agreement shall include reference to this Accession Deed. 

 

	4.2	 This Accession Deed is a Loan Document. 

  
 76 

	5	 GOVERNING LAW  

 

	5.1	 This Accession Deed and any non-contractual obligations arising out of
or in connection with it shall be governed by and construed in accordance with English law. 

  

	5.2	 [Without prejudice to any other mode of service allowed under any relevant law, the New Obligor:

  

	 	5.2.1	 irrevocably appoints [●] as its agent for service of process in relation to any proceedings before the
English courts in connection with any Loan Document (and [●] by its execution of this Deed accepts that appointment); and 

  

	 	5.2.2	 agrees that failure by an agent for service of process to notify the New Obligor of the process will not
invalidate the proceedings concerned.]. 

 IN WITNESS WHEREOF the Parent, the Guarantors, the New Obligor and the Agent have caused
this Accession Deed to be duly executed on the date appearing at the head of page 1. 
 [INCLUDE EXECUTION BLOCKS TO ACCESSION DEED]

  
 77 

 EXHIBIT E 

FORM OF PERFECTION CERTIFICATE 
  

 

Notes: 
  

	 	1.	 This is an “on-line” form designed to be completed on your
computer in Microsoft Word. 

  

	 	2.	 If there is not enough space for your answer, use the continuation sheet at the end of this form or attach a
separate word document with the additional information. 

  

	 	3.	 Submit this by e-mail to CharledsRussellSpeechlys LLP on behalf of
the Lender. Please also print this form and submit a hard copy signed by an officer of the Company. 

  

	 	4.	 This completed and executed certificate is a condition to closing and funding the loan. Information
contained herein may have an impact on the drafting of the loan documents. The sooner this completed certificate is received by the Lender, the more likely it is that the transaction can be finalised in a timely manner.

 PERFECTION CERTIFICATE 
  

	TO:	 Kreos Capital V (UK) Limited and Silicon Valley Bank (the “Lender”)

 The undersigned, the [●] of MEREO BIOPHARMA GROUP PLC (the “Company”), hereby certify on behalf of the Company, that,
with reference to the Loan Agreement dated [●] between the Company and the Lender, the information set out below is true and accurate: 
 Note: if any
question is inapplicable to the Company, simply add in “not applicable” or “none” as appropriate. 
  

	1	 NAMES OF THE COMPANY  

 

	1.1	 The name of the Company as it appears in its current Articles or Certificate of Incorporation is: [●]

  

	1.2	 The Company is formed under the laws of the Country of [●] 

 

	1.3	 The organisational identification number of the Company is: [●] 

 

	1.4	 The Company transacts business in the following jurisdictions (list all domestic and foreign jurisdictions
other than jurisdiction of formation): [●]  

  

	1.5	 The Company is duly authorised to carry and actually carroes on business in the following jurisdictions (list
jurisdictions other than jurisdiction of formation): [●] 

  

	1.6	 The following is a list of all other names (including fictitious names, d/b/a’s, trade names or similar
names) currently used by the Company or used within the past five years: 

  

			
	 Name
	 	 Period of Use

	 [●]
	 	[●]

  
 78 

	1.7	 The following are the names of all entities to which the Company became the successor by merger, consolidation,
acquisition, change in form, nature or jurisdiction of organisation or otherwise, now or at any time during the past five years: 

  

			
	 Name of Merged Entity
	  	 Year of Merger

	 [●]
	  	[●]

  

	1.8	 The following are the names and addresses of all entities from whom the Company has acquired any personal
property in a transaction not in the ordinary course of business during the past five years, together with the date of such acquisition and the type of personal property acquired (e.g., equipment, inventory, etc.): 

 

							
	 Name
	  	 Address
	  	 Date of Acquisition
	  	 Type of Property

	 [●]
	  	 [●]
	  	 [●]
	  	 [●]

  

	2	 PARENT/SUBSIDIARIES OF THE COMPANY 

 

	2.1	 The legal name of each subsidiary or affiliate (hereafter “subsidiary” and “affiliate” are
jointly, severally, and collectively referred to as “subsidiary” or “subsidiaries”) and parent of the Company is as follows. (A “parent” is an entity owning more than 50% of the outstanding capital stock of the Company.
A “subsidiary” is an entity, 50% or more of the outstanding capital stock of which is owned by the Company.) 

  

			
	 Name
	 	 Subsidiary/Parent

	 [●]
	 	 Sub ☐  Parent ☐

		
	 [●]
	 	 Sub ☐  Parent ☐

		
	 [●]
	 	 Sub ☐  Parent ☐

  

	2.2	 The following is a list of the respective jurisdictions and dates of formation of the parent and each
subsidiary of the Company: 

  

					
	 Name
	 	 Jurisdiction
	 	 Date of Formation

	 [●]
	 	 [●]
	 	 [●]

  

  
 79 

					
	 Name
	  	 Jurisdiction
	  	 Date of Formation

	 [●]
	  	 [●]
	  	 [●]

			
	 [●]
	  	 [●]
	  	 [●]

  

	2.3	 The following is a list of all other names (including fictitious names, d/b/a’s, trade names or similar
names) currently used by each subsidiary of the Company or used during the past five years: 

  

			
	 Name
	  	 Subsidiary

	 [●]
	  	[●]

  

	2.4	 The following are the names of all corporations which have been merged into a subsidiary of the Company during
the five years: 

  

			
	 Name
	  	 Subsidiary

	 [●]
	  	[●]

  

	2.5	 The following are the names and addresses of all entities from whom each subsidiary of the Company has acquired
any personal property in a transaction not in the ordinary course of business during the past five years, together with the date of such acquisition and the type of personal property acquired (e.g., equipment, inventory, etc.):

  

									
	 Name
	  	 Address
	  	 Date of

Acquisition
	  	 Type of

Property
	  	 Subsidiary

	 [●]
	  	[●]	  	[●]	  	[●]	  	[●]

  

	3	 LOCATIONS OF COMPANY AND ITS SUBSIDIARIES  

 

	3.1	 The chief executive offices of the Company and its subsidiaries are presently located at the following
addresses: 

  

			
	 Company/Subsidiary
	  	 Complete Street and Mailing Address,
including County and Zip Code

	 Company ☐/ [●]
	  	[●]

  
 80 

			
	 Company/Subsidiary
	  	 Complete Street and Mailing Address, including County and Zip
Code

	 Company ☐ / [●]

Company ☐ / [●]
	  	 [●]

[●]

  

	3.2	 The Company’s books and records and those of its subsidiaries are located at the following additional
addresses (if different from the above): 

  

			
	 Company/Subsidiary
	  	 Complete Street and Mailing Address, including County and Zip
Code

	Company ☐/ [●]	  	[●]
		
	Company ☐/ [●]	  	[●]
		
	Company ☐/ [●]	  	[●]

  

	3.3	 The following are all the locations where the Company and its subsidiaries own, lease, or occupy any real
property. Please indicate whether the location is owned, leased or rented: 

  

			
	 Company/Subsidiary
	  	 Complete Street and Mailing Address, including County and Zip
Code

	 Company☐/ [●]
  

[Own/lease/rental]
	  	[●]
		
	 Company ☐/ [●]
  

[Own/lease/rental]
	  	[●]
		
	 Company☐/ [●]
  

[Own/lease/rental]
	  	[●]

  

	3.4	 The following are all of the locations where the Company and its subsidiaries maintain any inventory,
equipment, or other property: 

  

			
	 Company/Subsidiary
	 	 Complete Street and Mailing Address, including County and Zip
Code

	Company☐/ [●]	 	[●]

  
 81 

			
	 Company/Subsidiary
	 	 Complete Street and Mailing Address, including County
and Zip Code

	 Company ☐ / [●]
	 	[●]
		
	 Company ☐ / [●]
	 	[●]

  

	3.5	 The following are the names and addresses of all warehousemen, bailees, or other third parties who have
possession of any of the Company’s inventory or equipment or any of the inventory or equipment of its subsidiaries: 

  

					
	 Company/Subsidiary
	 	 Name
	 	 Complete Street and Mailing Address, including
County and
Zip Code

	Company ☐ / [●]	 	[●]	 	[●]
			
	Company ☐ / [●]	 	[●]	 	[●]
			
	Company ☐ / [●]	 	[●]	 	[●]

  

	4	 SPECIAL TYPES OF COLLATERAL 

 

	4.1	 The Company and its subsidiaries own (or have any ownership interest in) the following kinds of assets. (If the
answer is “Yes” to any of the following questions, please attach a schedule describing each such asset owned by the Company or its subsidiaries and identifying which party owns the asset.) 

 

					
	Copyrights or copyright applications registered with the [state appropriate filing office]	  	Yes  ☐	  	No  ☐
			
	Software registered with [state appropriate filing office]	  	Yes  ☐	  	No  ☐
			
	Unregistered software	  	Yes  ☐	  	No  ☐
			
	Patents and patent applications	  	Yes  ☐	  	No  ☐
			
	Trademarks or trademark applications (including any service marks, collective marks and certification marks)	  	Yes  ☐	  	No  ☐
			
	Licenses to use trademarks, patents and copyrights of others	  	Yes  ☐	  	No  ☐
			
	Licenses, permits (including environmental), authorisations, or certifications issued by federal, state, or local governments issued to the Company and/or its subsidiaries or with respect to their assets, properties, or
businesses	  	Yes  ☐	  	No  ☐
			
	Stocks, bonds or other securities	  	Yes  ☐	  	No  ☐

  
 82 

					
	Promissory notes, or other instruments or evidence of indebtedness	  	Yes  ☐	 	No  ☐
			
	Leases of equipment, security agreements naming such person as secured party or other chattel paper	  	Yes  ☐	 	No  ☐
			
	Aircraft	  	Yes  ☐	 	No  ☐
			
	Vessels, Boats or Ships	  	Yes  ☐	 	No  ☐
			
	Railroad Rolling Stock	  	Yes  ☐	 	No  ☐
			
	Motor Vehicles	  	Yes  ☐	 	No  ☐

  

	4.2	 The following is a list of material contracts to which the Company is a party (include any equipment leases) or
in which the Company has an interest (including whether such contract as a nonassignability provision which would require the other party’s or another person’s consent to the granting of a security interest in such contract):

  

											
	 Other Party

to Contract
	 	 Entity
	 	 Title/Date of Contract
	 	 Non-assignability Clause

	 	 Asset

Sale
 (Y/N)
	 	 Security

Interest
 (Y/N)
	 	 Consent

Obtained

(Y/N)

	 [●]
	 	[●]	 	[●]	 	[●]	 	[●]	 	[●]
						
	 [●]
	 	[●]	 	[●]	 	[●]	 	[●]	 	[●]
						
	 [●]
	 	[●]	 	[●]	 	[●]	 	[●]	 	[●]

  

	 	4.3	 The following are all banks, brokerages, or financial institutions at which the Company and its subsidiaries
maintain deposit, investment, payroll, or securities accounts: 

  

							
	 Bank Name
	 	 Account

Number
	 	 Bank Address
	 	 Company/Subsidiary

	[●]	 	[●]	 	[●]	 	Company ☐ / [●]
				
	[●]	 	[●]	 	[●]	 	Company ☐ / [●]
				
	[●]	 	[●]	 	[●]	 	Company ☐ / [●]

  
 83 

	4.4	 Does or is it contemplated that the Company will regularly receive letters of credit from customers or other
third parties to secure payments of sums owed to the Company? The following is a list of letters of credit naming the Company as “beneficiary” thereunder: 

 

					
	 LC Number
	 	 Name of LC Issuer
	 	 LC Applicant

	 [●]
	 	[●]	 	[●]
			
	 [●]
	 	[●]	 	[●]
			
	 [●]
	 	[●]	 	[●]

  

	5	 DEBT/ENCUMBRANCES 

 

	5.1	 The Company’s and its subsidiaries’ have the following debt for money borrowed outstanding (whether
or not convertible): 

  

							
	 Name of Lender
	 	 Original Principal

Amount/Principal

Outstanding
	 	 Maturity

Date
	 	 Company/Subsidiary

	 [●]
	 	[●]	 	[●]	 	Company ☐ / [●]
				
	 [●]
	 	[●]	 	[●]	 	Company ☐ / [●]

  

	5.2	 The Company’s and its subsidiaries’ property are subject to the following liens or encumbrances:

  

					
	 Name of Holder of

Lien/Encumbrance
	 	 Description of Property

Encumbered
	 	 Company/Subsidiary

	 [●]
	 	[●]	 	Company ☐ / [●]
			
	 [●]
	 	[●]	 	Company ☐ / [●]

  

	6	 REGULATION 

The Company and its subsidiaries are subject to regulation by the following federal, state or local government entity or any department,
agency, or instrumentality thereof: 
  

					
	 Name of Regulatory Entity
	 	 Description of Regulation
	 	 Company/Subsidiary

	 [●]
	 	[●]	 	Company ☐ / [●]
			
	 [●]
	 	[●]	 	Company ☐ / [●]

  
 84 

	7	 LITIGATION 

  

	7.1	 The following is a complete list of pending and threatened litigation or claims involving amounts claimed
against the Company in an indefinite amount or in excess of $50,000 in each case: 

  

	 	7.1.1	 [●] 

  

	 	7.1.2	 [●] 

  

	7.2	 The following are the only claims which the Company has against others (other than claims on accounts
receivable), which the Company is asserting or intends to assert, and in which the potential recovery exceeds $50,000: 

  

	 	7.2.1	 [●] 

  

	 	7.2.2	 [●] 

  

	8	 TAXES 

The following tax assessments are currently outstanding and unpaid: 
  

			
	 Assessing Authority
	 	 Amount and Description

	 [●]
	 	[●]
		
	 [●]
	 	[●]
		
	 [●]
	 	[●]

  

	9	 INSURANCE BROKER 

The following broker handles the Company’s property insurance: 
  

									
	 Broker
	 	 Contact
	 	 Telephone
	 	 Fax
	 	 Email

	 [●]
	 	[●]	 	[●]	 	[●]	 	[●]

  

	10	 OFFICERS OF THE COMPANY AND ITS SUBSIDIARIES  

The following are the names and titles of the officers of the Company and its subsidiaries. 

 

					
	 Office/Title
	 	 Name of Officer
	 	 Company/Subsidiary

	 [●]
	 	[●]	 	Company ☐ / [●]
			
	 [●]
	 	[●]	 	Company ☐ / [●]

  
 85 

					
	 Office/Title
	 	 Name of Officer
	 	 Company/Subsidiary

	 [●]
	 	[●]	 	Company ☐ / [●]

 The Company agrees to advise you of any change or modification to any of the foregoing information or any supplemental
information provided on any continuation pages attached hereto, and, until such notice is received by you, you shall be entitled to rely upon such information and presume it is correct. The Company acknowledges that your acceptance of this
Perfection Certificate and any continuation pages does not imply any commitment on your part to enter into a loan transaction with the Company, and that any such commitment may only be made by an express written loan commitment, signed by one of
your authorised officers. 
  

			
	Date:	 	  

		
	By:	 	  

		
	Its:	 	  

		
	Email:	 	  

		
	Phone:	 	  

		
	Fax:	 	  

  
 86 

 CONTINUATION PAGE 

ADDITIONAL INFORMATION 
 [●] 

  
 87 

 EXHIBIT F 

PRIMARY AND SECONDARY ENDPOINTS 
 MPH-966 
 MPH-966 primary endpoint(s) to be defined as: 

 

	•	 	 Within-individual % change from baseline in plasma desmosine/isodesmosine at end of treatment compared to placebo

 MPH-966 secondary endpoint(s) to be defined as: 

 

	•	 	 Change from baseline in plasma desmosine/isodesmosine at end of treatment compared to placebo

  

	•	 	 Change from baseline in blood Aα- Val360, neutrophil elastase,
EL-NE, EL- CG, and EP-3 at end of treatment compared to placebo 

 

	•	 	 Change from baseline in blood MMP: C6M, Pro-C6, C1M, and PGP at end of
treatment compared to placebo  

 BPS-205 

BPS-205 primary endpoint(s) to be defined as: 
  

	•	 	 Tr. vBMD (radius) on HRpQCT. 

BPS-205 secondary endpoint(s) to be defined as: 

 

	•	 	 Tr. vBMD (tibia & radius) on HRpQCT and bone strength on FEA at 6 months. 

 

	•	 	 Tr. vBMD (tibia & radius) on HRpQCT and bone strength on FEA at 3 & 6 months in open-label treatment
arm. 

  

	•	 	 Changes in lumbar dual-energy x-ray absorptiometry (DXA) BMD (absolute
and T-score) from baseline at Month 6 and Month 12. 

  

	•	 	 Changes in Tr. vBMD (tibia) from baseline at 12 months 

 

	•	 	 Changes in bone turnover markers and metabolic biomarkers associated with bone (parathyroid hormone [PTH], amino-
terminal propeptide of type 1 procollagen [P1NP], carboxy-terminal propeptide of type 1 procollagen [P1CP], osteocalcin [OC], bone-specific alkaline phosphatase [BSAP], carboxy-terminal telo-peptide [CTX-1],
amino-terminal telo-peptide [NTX-1].

  
 88 

 EXHIBIT G 

REPAYMENT SCHEDULE 
 All
amounts are in Sterling 
  

																					
	 Payment
Due
	  	Drawdown	 	 	Fees	 	  	Advance
Payment	 	 	Capital	 	  	Interest	 
	 Oct-2018
	  	 	(20,455,000.00	) 	 	 	102,275.00	 	  	 	960,097.28	 	 	 	0.00	 	  	 	144,889.58	 
	 Nov-2018
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	0.00	 	  	 	144,889.58	 
	 Dec-2018
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	0.00	 	  	 	144,889.58	 
	 Jan-2019
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	0.00	 	  	 	144,889.58	 
	 Feb-2019
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	0.00	 	  	 	144,889.58	 
	 Mar-2019
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	0.00	 	  	 	144,889.58	 
	 Apr-2019
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	0.00	 	  	 	144,889.58	 
	 May-2019
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	960,097.28	 	  	 	0.00	 
	 Jun-2019
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	822,008.39	 	  	 	138,088.89	 
	 Jul-2019
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	827,830.94	 	  	 	132,266.33	 
	 Aug-2019
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	833,694.75	 	  	 	126,402.53	 
	 Sep-2019
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	839,600.09	 	  	 	120,497.19	 
	 Oct-2019
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	845,547.25	 	  	 	114,550.03	 
	 Nov-2019
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	851,536.55	 	  	 	108,560.73	 
	 Dec-2019
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	857,568.26	 	  	 	102,529.02	 
	 Jan-2020
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	863,642.70	 	  	 	96,454.58	 
	 Feb-2020
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	869,760.17	 	  	 	90,337.11	 
	 Mar-2020
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	875,920.97	 	  	 	84,176.30	 
	 Apr-2020
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	882,125.42	 	  	 	77,971.86	 
	 May-2020
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	888,373.80	 	  	 	71,723.48	 
	 Jun-2020
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	894,666.45	 	  	 	65,430.83	 
	 Jul-2020
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	901,003.67	 	  	 	59,093.61	 
	 Aug-2020
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	907,385.78	 	  	 	52,711.50	 
	 Sep-2020
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	913,813.10	 	  	 	46,284.18	 
	 Oct-2020
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	920,285.94	 	  	 	39,811.34	 
	 Nov-2020
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	926,804.63	 	  	 	33,292.65	 
	 Dec-2020
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	933,369.50	 	  	 	26,727.78	 
	 Jan-2021
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	939,980.87	 	  	 	20,116.41	 
	 Feb-2021
	  	 	0.00	 	 	 	0.00	 	  	 	0.00	 	 	 	946,639.06	 	  	 	13,458.22	 
	 Mar-2021
	  	 	0.00	 	 	 	2,147,775.00	 	  	 	(960,097.28	) 	 	 	953,344.42	 	  	 	6,752.86	 

  
 89 

 SIGNATURE PAGE 

 

					
	THE BORROWER	 		  	
			
	EXECUTED as a DEED by	 	)	  	
			
	MEREO BIOPHARMA GROUP PLC	 	)	  	
			
	acting by  Denise Scots-Knight                         (director) a	 	)	  	
	director in the presence of a witness	 	)	  	
		 	)	  	
		 	)	  	
			
		 		  	 /s/ Denise Scots-Knight

		 		  	Director
			
		 		  	 /s/ Jessica Doughty

		 		  	Witness
			
	Name:	 		  	Jessica Doughty
			
	Address:	 		  	14 Sheraton Mews
			
		 		  	WD18 7PE
			
	Occupation:	 		  	Executive Assistant
			
	GUARANTOR 1	 		  	
			
	EXECUTED as a DEED by	 	)	  	
			
	MEREO BIOPHARMA 1 LIMITED	 	)	  	
			
	acting
by  Charles Sermon                                 
(director) a	 	)	  	
	director in the presence of a witness	 	)	  	
		 	)	  	
		 	)	  	
			
		 		  	 /s/ Charles Sermon

		 		  	Director
			
		 		  	 /s/ Grace Hamlett

		 		  	Witness
			
	Name:	 		  	Grace Hamlett
			
	Address:	 		  	12 Oxford Drive, London
			
		 		  	SEI 2FB
			
	Occupation:	 		  	Legal Counsel

  
 90 

					
	GUARANTOR 2	 	)	  	
			
	EXECUTED as a DEED by	 	)	  	
			
	MEREO BIOPHARMA 2 LIMITED	 	)	  	
			
	acting by  Charles
Sermon                                 (director) a	 	)	  	
	director in the presence of a witness	 	)	  	
		 	)	  	
		 		  	
			
		 		  	 /s/ Charles Sermon

		 		  	Director
			
		 		  	 /s/ Grace Hamlett

		 		  	Witness
			
	Name:	 		  	Grace Hamlett
			
	Address:	 		  	12 Oxford Drive, London
			
		 		  	SEI 2FB
			
	Occupation:	 		  	Legal Counsel
			
	GUARANTOR 3	 	)	  	
			
	EXECUTED as a DEED by	 	)	  	
			
	MEREO BIOPHARMA 3 LIMITED	 	)	  	
			
	acting by  Charles Sermon                              
     (director) a	 	)	  	
	director in the presence of a witness:	 	)	  	
		 	)	  	
			
		 		  	 /s/ Charles Sermon

		 		  	Director
			
		 		  	 /s/ Grace Hamlett

		 		  	Witness
			
	Name:	 		  	Grace Hamlett
			
	Address:	 		  	12 Oxford Drive, London
			
		 		  	SEI 2FB
			
	Occupation:	 		  	Legal Counsel

  
 91 

					
	GUARANTOR 4	 	)	  	
			
	EXECUTED as a DEED by	 	)	  	
			
	MEREO BIOPHARMA 4 LIMITED	 	)	  	
			
	acting by  Charles
Sermon                                 (director) a	 	)	  	
	director in the presence of a witness:	 	)	  	
		 	)	  	
			
		 		  	 /s/ Charles Sermon

		 		  	Director
			
		 		  	 /s/ Jessica Doughty

		 		  	Witness
			
	Name:	 		  	Jessica Doughty
			
	Address:	 		  	14 Sheraton Mews
			
		 		  	WD18 7PE
			
	Occupation:	 		  	Executive Assistant
			
	GUARANTOR 5	 	)	  	
			
	SIGNED for and on behalf of	 	)	  	
			
	MEREO BIOPHARMA IRELAND LIMITED	 	)	  	
			
	by its lawfully	 	)	  	
			
	appointed attorney  CHARLES SERMON                   	 	)	  	
	in the presence of:	 	)	  	
			
		 		  	 /s/ Charles Sermon

		 		  	Charles Sermon
			
		 		  	 /s/ Jessica Doughty

		 		  	Witness
			
	Name:	 		  	Jessica Doughty
			
	Address:	 		  	14 Sheraton Mews
			
		 		  	WD18 7PE
			
	Occupation:	 		  	Executive Assistant

  
 92 

					
	THE LENDER, AGENT AND SECURITY AGENT	 	
			
	EXECUTED as a DEED by	 	)	 	
			
	KREOS CAPITAL V (UK) LIMITED	 	)	 	
			
	acting
by  Luca Colciago                                 
            (director) a	 	)	 	
	director in the presence of a witness	 	)	 	
			
		 		 	 /s/ Luca Colciago

		 		 	Director
			
		 		 	 /s/ Lauren Mahoney

		 		 	Witness
			
	Name:	 		 	Lauren Mahoney
			
	Address:	 		 	25 - 28 Old Burlington Pl,
			
		 		 	London W15 3AN
			
	Occupation:	 		 	Administrator
			
	THE LENDER	 		 	
			
	EXECUTED as a DEED on behalf of	 	)	 	
			
	SILICON VALLEY BANK	 	)	 	
			
	a California corporation by	 	)	 	
	 Paula
Burke                                        
     (authorised signatory),
 being a person who, in accordance with the laws of that territory, is acting under the
authority of the corporation
	 	  
 )

)
	 	
			
		 		 	 /s/ Paula Burke

		 		 	Authorised Signatory
			
		 		 	  

		 		 	

  
 93

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}]]