Document:

Blueprint

  Exhibit 4.5

 

Franchising

 

Agreement

 

 

 

Between

 

 

 

Dufry International AG

(Switzerland)

 

 

and

 

 

Hudson Group (HG) Inc

(USA)

 

 

Franchising
agreement 

 

INDEX

 

	

I. PARTIES  

	

1

	

II. RECITALS  

	

2

	

III. DEFINITIONS AND INTERPRETATION  

	

4

	

A.  DEFINITIONS  

	

4

	

B.  INTERPRETATION GUIDELINES  

	

5

	

IV. COVENANTS  

	

6

	

Article 1

	

Object

	

6

	

Article 2

	

Territory

	

6

	

Article 3

	

Franchise

	

6

	

Article 4

	

Effective Date - Validity

	

7

	

Article 5

	

Sub-Franchise

	

7

	

Article 6

	

Remuneration

	

7

	

Article 7

	

Payments

	

7

	

Article 8

	

Franchisee’s Rights And Obligations

	

8

	

8.1

	

Exercise of Franchise

	

8

	

8.2

	

Use of Intellectual Property

	

8

	

8.3

	

Exclusivity

	

9

	

Article 9

	

The Franchisor’s Rights And Obligations

	

9

	

9.1

	

Provision of Materials

	

9

	

9.2

	

Coaching

	

9

	

9.3

	

Exclusivity

	

9

	

9.4

	

Trademark Maintenance

	

9

	

Article 10

	

Ownership Of Intellectual Property

	

9

	

Article 11

	

Registration Of The Franchisee As Registered User

	

10

	

Article 12

	

Other Marketing Intangibles

	

10

	

Article 13

	

Quality Control, Inspection & Reporting

	

10

	

13.1

	

Quality Control

	

10

	

13.2

	

Inspection

	

10

	

13.3

	

Reporting

	

11

	

Article 14 

	

Infringement By Unauthorised Persons

	

11

	

Article 15

	

Infringement of Third Parties’ Rights

	

11

	

Article 16

	

Confidentiality

	

11

	

Article 17

	

Transferability

	

11

	

Article 18

	

No Represenations or Warranties

	

12

	

Article 19

	

Termination

	

12

	

19.1

	

Ordinary Termination

	

12

	

19.2

	

Extraordinary Termination

	

12

	

Article 20

	

Effects of Termination

	

13

	

Article 21

	

No Goodwill Redundancy On Termination

	

13

	

Article 22

	

Entire Agreement

	

14

	

Article 23

	

Other Contractual Relationships Between The Parties

	

14

	

Article 24

	

Severability

	

14

	

Article 25

	

Successors And Assignees

	

14

	

Article 26

	

Independent Parties

	

15

	

Article 27

	

Costs And Taxes

	

15

	

27.1

	

Costs

	

15

	

27.2

	

Taxes

	

15

	

Article 28

	

Force Majeure

	

16

	

Article 29

	

Non-Waiver And Cumulative Rights

	

16

	

Article 30

	

Notices

	

16

	

Article 31

	

Applicable Law

	

17

	

Article 32

	

Dispute Resolution and Arbitration

	

17

	

Article 33

	

Further Assurances

	

17

	

EXHIBIT 1: COMPONENTS OF THE FRANCHISE 

	

19

	

EXHIBIT 2: FRANCHISE FEE 

	

21

 

 

Franchising agreement

 

I.
PARTIES

 

On one side,

 

Dufry
International AG, a Swiss stock corporation duly incorporated and
existing under the laws of Switzerland with registered offices at
Brunngässlein 12, 4010 Basel, Switzerland.

 

(hereinafter referred to as the "Franchisor")

 

and on the other side

 

Hudson
Group (HG) Inc , a limited company incorporated and existing under
the laws of the United States of America with registered offices
One Meadowlands Plaza, 11th Floor, East Rutherford, New Jersey,
07073, USA.

 

(hereinafter referred to as the "Franchisee”)

 

 

 

 

Page 1

 

II. RECITALS

 

I.

WHEREAS, both Parties belong to a
multinational group of companies operative in a number of markets
(hereinafter referred to as “the Dufry
Group”).

 

II.

WHEREAS, the Dufry Group is one of the
world’s leading operators of shops that sell luxury consumer
products and is engaged in the retail business with “duty
free” and “duty paid” concessions located at
airports, borders, on cruise liners, seaports, ferries, railway
stations and city centre locations.

 

III.

WHEREAS, the Franchisor has existing
goodwill, know-how and retail specific intellectual property
including a brand portfolio and a “business concept” in
the area of duty-free and duty-paid retailing, and has achieved a
valuable goodwill amongst stakeholders in the business of the Dufry
group (i.e. airport operators, luxury branded goods suppliers,
retail industry employees, banks and financial institutions
etc.).

 

IV.

WHEREAS, the Franchisor provides
corporate and supporting services as listed in Exhibit 1 and grants
the Franchisee access to global functions (hereinafter referred to
as the “Centralised Support Services”).

 

V.

WHEREAS, the Franchisor has the right to
use and licence its trademarks - Dufry, Nuance and WDFG -
(hereinafter referred to as the “Trademarks”),
registered in several jurisdictions including the Territory, as
well as ancillary brand-building and business related intangibles
as further described in Article 3 of this Agreement.

 

VI.

WHEREAS, the Franchisee and Franchisor
acknowledge the existence of a separate trademark license agreement
in relation to the right of Franchisee to use the Hudson brand as
set forth in such trademark license agreement.

 

VII.

WHEREAS, the Franchisee and its
subsidiaries and/or controlled affiliates operate currently certain
duty-free and/or duty paid shops in the Territory (hereinafter
referred to as “the Shops”).

 

VIII.

WHEREAS, the Franchisee, on behalf of
its subsidiaries and/or controlled affiliates, wishes to benefit
from the widespread recognition of Dufry Group’s trademarks,
business concept and goodwill, which shall open for the Franchisee
business opportunities to which it would have no access as a
stand-alone duty-free or other retail business and which shall
translate into the Franchisee’s ability to compete in the
globally competitive environment of the duty free business while
reducing its own business risks.

 

IX.

WHEREAS, the Franchisor is prepared to
franchise certain of the Dufry Group trademarks and its business
related intangibles to implement in the Franchisee’s local
business as well as provide access to its Global Distribution
Centers to the Franchisee in return for a franchise fee as this
term is defined in Article 6.

 

 

Page 2

 

NOW THEREFORE in consideration of the mutual covenants and
agreements hereinafter contained and for other good and valuable
consideration (the receipt and sufficiency of which is acknowledged
by each of the Parties hereto) the Parties covenant and agree each
with the other as follows:

 

 

 

[Remainder of
page intentionally left
blank]

 

 

 

Page 3

 

III. DEFINITIONS AND INTERPRETATION

 

A.
DEFINITIONS

 

For the
purposes of this Agreement, the following terms shall have the
following meanings:

 

●

“Affiliate”
shall mean any subsidiary or controlled affiliate, which includes
any legal entity that is directly or indirectly, through the
majority of voiting rights, equity capital or otherwise by
exercising a controlling influence, controlled by a
Party.

 

●

“Agreement”
shall mean this Agreement including all Exhibits and as amended
from time to time.

 

●

"Effective Date"
shall mean the date as from which this Agreement shall be deemed
effective in accordance with Article 4 below.

 

●

“Territory”
shall mean the Territory referred to in Article 2.

 

●

“IP
Rights” shall mean collectively certain trademarks, marketing
intangibles and any other intellectual property rights, which are
legally and/or economically owned by the Franchisor, or to which
the Franchisor has a right of use, including the “business
concept”, and which Franchisor has designated to be used by
Franchisee under this Agreement.

 

●

“Business
Concept” shall mean the Dufry Group’s business concept
in the area of travel retail sales, as described in Article 3 of
this Agreement.

 

●

“Centralised
Support Services” shall mean all services as outlined in
Exhibit 1.

 

●

“Global
Distribution Centers” shall mean the central purchasing and
logistic platforms operated by the Dufry Group.

 

●

“Duty
Free” shall mean shops located in or product sales made in an
environment exempt from customs duties and/or value added
taxes.

 

●

“Duty
Paid” shall mean shops located in or product sales made in an
environment subject to ordinary local duties and/or value added
taxes.

 

●

“Franchise”
shall mean all elements of the Franchise as defined in Article 3 of
this Agreement and in Exhibit 1, which may be reviewed and updated
from time to time by Franchisor, including, as the case may be: i)
the “trademark(s)”; ii) the “business
concept”; iii) access to the Global Distribution
Centers”; iv) all supporting or related business intangibles;
and v) all centralised support services.

 

●

“Franchise
Fee” shall mean the consideration payable by the Franchisee
to the Franchisor for the Franchise referred to and calculated in
Article 6.

 

●

“Net
Sales” shall mean the gross sales in Shops in the Territory
of the Franchisee and its sub-franchisees, less discounts and value
added tax as referred to in Article 6.

 

 

Page 4

 

●

"The Dufry Group"
shall mean all the companies affiliated to the Parties by
whatsoever corporate links in whatever jurisdiction.

 

●

“Party”
or “Parties” shall mean the Franchisor and/or the
Franchisee referred to alone or collectively.

 

●

“Shops”
shall mean brick and mortar travel retail outlets, spaces, or
concessions operated by the Franchisee and its permitted
sub-franchisees (if any) in the Territory with the approval of
Franchisor.

 

 

B.
INTERPRETATION GUIDELINES

 

●

A reference to a
person, corporation, trust, partnership, unincorporated body or
other entity includes any of them.

 

●

A reference to an
article, a clause, a chapter or a schedule is a reference to an
article, a clause, a chapter or a schedule of this
Agreement.

 

●

The singular
includes the plural and conversely, unless otherwise expressly
indicated.

 

 

Page 5

 

IV. COVENANTS

 

 

Article 1  Object

 

Subject
to and in accordance with the terms and conditions of this
Agreement, the Franchisor agrees to grant and hereby grants to
Franchisee the right to use the franchise as further defined under
Article 3 below (hereinafter referred to as
“Franchise”) for the purpose of the operation of its
Shops in the Territory.

 

This
Agreement sets forth the terms and conditions under which the
Franchisee may use the Franchise and shall remunerate the
Franchisor for the Franchise as well as the respective rights and
obligations of both Parties under the terms of this
grant.

 

Article 2  Territory

This
Agreement shall be valid within the continental United States,
Hawaii and Canada. (hereinafter referred to as the
“Territory”).

 

Article 3  Franchise

The
elements of the Franchise include the following:

 

(i)

Trademarks

 

(ii)

Business
Concept

 

(iii)

Access to the
Global Distribution Centers

 

(iv)

Supporting Business
Related IP

 

(v)

Centralised Support
Services

 

A more
detailed description of these elements is included in Exhibit 1 to
this Agreement, which shall be considered as an integral part of
this Agreement and may be updated and/or amended by Franchisor in
its sole discretion from time to time, including, without
limitation, to reflect changes and/or developments in the IP Rights
portfolio of Franchisor, as may be made available by the Franchisor
to the Franchisee from time to time.

 

The
Franchisor is entitled to outsource to third parties the total or
part of the delivery of the Franchise elements, i.e. the Franchisor
may engage (without the Franchisee’s consent) third parties
for the execution of the entire or part of the Franchise Agreement
as sub-contractors whereby such a sub-contracting relationship
between a sub-contractor and the Franchisor does not affect in any
manner the Francisee and no legal relationship shall be deemed to
exist between the Franchisee and sub-contractors.

 

The
Franchisor is in no case obliged to notify or otherwise inform the
Franchisee about any kind of delegation and/or outsourcing to third
parties in connection with this Agreement.

 

 

Page 6

 

Article 4  Effective Date - Validity

This
Agreement shall be effective as from January 1, 2018, which shall
be deemed to be the Effective Date. This Agreement is of unlimited
duration and shall remain in force until terminated in accordance
with Article 19 hereunder.

 

The
Parties mutually agree that any prior concluded franchise agreement
between the Parties shall be deemed terminated in its entirety as
per January 1, 2018. They shall procure that such franchise
agreements be terminated as of that date. In particular, they shall
procure that the franchise agreement between

 

●

Dufry International
AG and Dufry Newark Inc, dated September 30, 2005

●

Dufry International
AG and Dufry New York Inc, dated September 30, 2005

●

Dufry International
AG and Dufry Houston Duty Free & Retail Partnership, dated
September 30, 2005

●

Dufry International
AG and The Nuance Group (US) Inc, dated December 2011,
2015

 

terminate
as of said date.

 

Article 5  Sub-Franchise

The
Franchisee has the full right to grant sub-franchises to its
Affiliates. The Franchisee shall not under the terms of this
Agreement have the right to grant sub-franchises to any other third
parties without Franchisor’s prior consent, which shall not
be unreasonably withheld. Franchisee shall procure that any of its
sub-franchisees fully comply with the terms and conditions of this
Agreement and Franchisee shall be responsible for any acts (and
omissions) of its sub-franchisees as if they were Franchisee's own
acts (and omissions).

 

Article 6  Remuneration

As a
consideration for the Franchise granted hereby, Franchisee commits
to remunerate Franchisor with a fee (hereinafter referred to as
“the Franchise Fee”) which shall amount to the
percentage of the Net Sales achieved in the Territory as defined in
Exhibit
2, which shall be considered an integral part of this
Agreement.

 

This
Franchise Fee will be reviewed periodically to ensure that it
remains in line with internationally recognised transfer pricing
rules such as the OECD report on “Transfer Pricing Guidelines
for Multinational Enterprises and Tax Administrations”
effective 2017 with subsequent updates. In case any such transfer
pricing rules require the Franchise Fee to be adjusted, Franchisor
shall have the right to adjust the Franchise Fee accordingly and
such adjustment shall be binding upon Franchisee.

 

For the
purpose of this Agreement the Franchisee’s “net
sales” achieved in the Territory shall mean the gross sales
by Franchisee and its sub-franchisees in the Shops less any
discounts and/or value added taxes.

 

Article 7  Payments

The
payment of the Franchise Fee shall be made by the Franchisee to the
Franchisor on a monthly basis, namely in accordance with the
following rules:

 

 

Page 7

 

(i)

Within 30 (thirty)
days as from the last day of a calendar month the Franchisee will
submit to the Franchisor a monthly statement (hereinafter
“the Monthly Statement”) for the foregoing calendar
month containing the amount of Net Sales and the calculation of the
corresponding Franchise Fee.

 

(ii)

Not later than 30
(thirty) days as from the date of the Monthly Statement, the
Franchisee shall pay to the Franchisor the amount due corresponding
to the Monthly Statement.

 

(iii)

Interest of 0.5 %
per month will be charged on all late payments.

 

(iv)

All payments shall
be made in USD by wire transfer to a bank account to be specified
by the Franchisor and duly communicated to the
Franchisee.

 

(v)

Franchisee shall
retain for a period of at least 10 years, and provide to Franchisor
upon its request, all records and supporting evidence necessary for
Franchisor to verify the Monthly Statement, the Net Sales and the
calculation of the Franchise Fee.

 

Article 8  Franchisee’s Rights And
Obligations

 

8.1  Exercise of Franchise

The
Franchisee has the right and the obligation to use the Franchise in
accordance with the terms and conditions of this Agreement and
Franchisor's instructions during the term of validity of this
Agreement. Furthermore the Franchisee acknowledges and agrees that
the Franchise granted in this Agreement applies only in connection
with the Shops and the products and – if at all applicable
– services sold therein and may not be used for any other
purpose.

 

All use
of the Franchise shall conform fully with all policies, standards
and instructions of the Franchisor supplied to the Franchisee from
time to time. The Franchisee hereby undertakes to exercise the
Franchise in a manner which is not in any way detrimental to the
business and/or the reputation of the Franchisor and the Dufry
Group.

 

8.2  Use of Intellectual Property

The
Franchisee commits to use the IP Rights at a minimum to the extent
required by law for the maintenance of the valid registration of
the Trademarks and the survival of marketing intangibles. The
Franchisee acknowledges and agrees that the rights granted in this
Agreement for the use of the IP Rights apply only to their use in
connection with the operation of the Shops.

 

All use
of the IP Rights shall conform fully with all written policies,
standards and instructions of the Franchisor supplied to the
Franchisee from time to time. The Franchisee may not use the IP
Rights in a manner, which would injure the reputation or goodwill
of the Franchisor or the Dufry Group. The Franchisee further agrees
that it will not use the IP Rights for activities, products and
services, which are not within the scope of business operation of
the Shops.

 

 

Page 8

 

The
Franchisee hereby agrees that any use of the IP Rights by the
Franchisee outside the terms and conditions of this Agreement is
and shall be deemed as infringement of the Franchisor's
rights.

 

8.3  Exclusivity

The
Franchisee commits to abstain, as long as this Agreement remains in
force, from entering into any third party franchise to be fully or
partially exercised in the Shops without prior written permission
from the Franchisor.

 

Article 9  The Franchisor’s Rights And
Obligations

 

9.1  Provision of Materials

The
Franchisor undertakes to provide the Franchisee with the rights
owned by or licensed to Franchisor and with information and
materials which Franchisor deems necessary or convenient in order
to enable the Franchisee to use the Franchise in accordance with
this Agreement.

 

9.2  Coaching

The
Franchisor undertakes hereby to provide the Franchisee, at the
Franchisee’s reasonable request, with the training and
coaching of personnel, which is, in Franchisor's reasonable
assessment, required for the Franchisee to be in a position to
properly exercise the Franchise as set out in this
Agreement.

 

9.3  Exclusivity

The
Franchisor commits to abstain, as long as this Agreement remains in
force, from granting to any other person or entity which is not a
member of the Dufry Group a Franchise valid for the
Territory.

 

9.4  Trademark Maintenance

Without
prejudice to any other term of this Agreement (including, without
limitation, Articles 14 and 15), Franchisor undertakes to use
its commercially reasonable best efforts to maintain and defend the
Trademark during the term of this Agreement. Notwithstanding the
foregoing in this Article 9.4, the Parties agree that Franchisor
may in its sole discretion at any time during the term of this
Agreement make changes to the IP Rights, including, without
limitation, by amending the Trademark and/or any of the marketing
intangibles and/or by amending, adding and/or removing trademark
registrations to resp. from the scope of the license
grant.

 

Article 10  Ownership Of Intellectual Property

The
Parties hereto hereby acknowledge that between the Parties the
Franchisor is the exclusive owner or has otherwise the exclusive
right to use and license the IP Rights and all goodwill associated
therewith. Furthermore the Parties expressly agree that except as
expressly provided in this Agreement, the Franchisee acquires no
right, title or interest in any of the IP Rights or related
marketing intangibles. The Franchisee shall not in any manner
represent that it has any ownership interest in the IP Rights or
applications thereof. The Franchisee may not at any time dispute or
contest, directly or indirectly, the validity, ownership or
enforceability of any of the IP Rights, nor directly or indirectly
attempt to dilute the value of the goodwill attached to any of the
IP Rights.

 

 

Page 9

 

Article 11  Registration Of The Franchisee As Registered
User

Should
the registration of the Franchisee as registered user of the IP
Rights be possible, necessary or convenient in any public or
private register, the Franchisee agrees, upon request by the
Franchisor made at any time after the execution of this Agreement,
to join the Franchisor in applying for such registration as
registered user or any analogue registration in respect to the IP
Rights or a part of them. The Franchisee agrees to execute all
documents and do all acts necessary or convenient to obtain such
registration, as well as any documents, which might be necessary
for the variation, completion or cancellation of such
registration.

 

The
Franchisee shall not at any time during the term of this Agreement
or at any time after its termination use its capacity as registered
user of the IP Rights to do any act or assist any person in doing
any act which may in any way invalidate, impair or prejudice the
rights or title of the Franchisor, whichever nature these rights
might have, in the IP Rights.

 

Article 12  Other Marketing Intangibles

As far
as registered or registerable, the Franchisee undertakes hereby not
to register the Trademarks and/or marketing intangibles or any
marketing intangibles confusingly similar thereto. Any application
or registration in breach of this Article shall enure to the
benefit of and be beneficially owned by the Franchisor. The
Franchisee shall assign to the Franchisor at Franchisor’s
request and own expense all rights, title and interest in any such
application or registration.

 

Article 13  Quality Control, Inspection &
Reporting

 

13.1  Quality Control

The
Franchisee agrees that it shall only exercise the Franchise within
the scope of business of the Shops and that such operation shall
conform in nature and quality and shall be performed by the
Franchisee in compliance with this Agreement, as well as in
accordance with the quality standards and specifications set by the
Franchisor, in its sole discretion from time to time. Without
limiting the foregoing, the Franchisee agrees that the operation of
the Franchise by the Franchisee shall be of high quality standards
prevailing in the sector and consistent with that quality standard
maintained by the Franchisor in connection with comparable
businesses. The Franchisee further agrees that the operation of the
Franchise shall be in conformity with all laws, rules and
regulations applicable to the Franchisee as well as with the laws
applicable in the Territory.

 

13.2  Inspection

The
Franchisor or its authorised agents shall have the right at any
time to inspect the Shops, the performance thereof and any relevant
documents, materials and records related to the Shops in order to
determine whether the Franchisee has complied with its obligations
under this Agreement.

 

 

Page
10

 

13.3  Reporting

 

The
Franchisee agrees to maintain adequate books and records and to
report to the Franchisor at the latter's request about the exercise
of the Franchise by Franchisee and its permitted sub-franchisees
and their compliance with the terms and conditions of this
Agreement. For the purposes of this reporting, the Franchisor shall
be entitled to provide the Franchisee with a standard form to be
filled in by the Franchisee. The Franchisee undertakes further, at
the request of the Franchisor, to have its statutory independent
auditors certifying the completeness and accuracy of such
reports.

 

Article 14  Infringement By Unauthorised Persons

The
Franchisee agrees to immediately give notice to the Franchisor of
any conflicting use or any act of infringement or passing off by
unauthorised persons which comes to its or its sub-franchisees
attention and which involves the Franchise and/or IP Rights or any
variation or imitation thereof. Upon Franchisor's request,
Franchisee shall provide at its own cost all reasonable support and
assistance to Franchisor in any action taken by Franchisor to
defend against any infringement of and/or to enforce its
rights.

 

Article 15  Infringement of Third Parties’
Rights

The
Franchisee agrees to immediately give notice to the Franchisor of
any demand, claim and/or action involving the Franchise and/or IP
Rights that is made or threatened by any person against the
Franchisee and/or any of its sub-franchisees. Franchisee shall, and
shall cause its relevant sub-franchisee(s) to, upon Franchisor's
option and request, allow (i) either Franchisor to undertake the
defence against any such demand, claim and/or action or (ii) defend
against such demand, claim and/or action in accordance with
Franchisor's instructions. Franchisee and/or its sub-franchisees
shall not agree to any settlement or any judicial finding or award
that is reviewable by a higher authority without the express prior
written approval of Franchisor. Franchisee shall, and shall cause
its relevant sub-franchisee(s) to, further implement the measures
identified by Franchisor to prevent any further infringement of any
third party rights by the use of the Franchise and/or the IP
Rights.

 

Article 16  Confidentiality

Both
Parties acknowledge that by virtue of this Agreement they may have
direct or indirect access and acquire knowledge of the other
Party’s confidential information. Both Parties undertake
hereby to hold in absolute confidence all and any information and
not to use, disclose, reproduce or dispose of any information in
any manner other than (i) as expressly provided for in this
Agreement, or (ii) required under applicable law or regulation, in
the good understanding that the undertaking contemplated in this
Article 16 shall survive in case of termination of this Agreement,
being irrelevant the reasons of such a termination.

 

Article 17  Transferability

Except
as provided for in Article 3, this Agreement and all rights and
obligations arising here from shall not be transferred by either
Party to a third party without the express previous consent from
the other Party, which shall be in writing.

 

 

Page
11

 

Article 18  No Represenations or Warranties

Notwithstanding
any other provision in this Agreement, Franchisee acknowledges and
agrees that the Franchise and the IP Rights are made available to
Franchisee on an "as-is" basis without any representation or
warranty, including, without limitation, without any representation
or warranty regarding the validity, enforceability and/or
non-infringement of the IP Rights. To the maximum extent permitted
by applicable law, Franchisor hereby disclaims any liability for
any damages or detrimental consequences which may arise for the
Franchisee as a direct or indirect consequence of the
Franchisee’s exercise of its rights or fulfilment of its
obligations under this Agreement.

Article 19  Termination

 

19.1  Ordinary Termination

The
Franchisor may at any time and in its sole discretion terminate
this Agreement by serving a prior termination notice of 6 (six)
months to the Franchisee.

 

19.2 
Extraordinary Termination

In the
event either Party defaults on its obligations as provided for in
this Agreement, the other Party shall give the defaulting Party
written notice of said default. If the defaulting Party does not
cure said default to the satisfaction of the other Party and
notifies in writing such other Party of such cure within 10 (ten)
calendar days after receipt of the notice of default, then the
Party having given notice of default may terminate this Agreement.
This termination shall then be effective immediately upon
notification of termination.

 

Notwithstanding
the foregoing paragraph, the Franchisee shall be deemed to be in
default under this Agreement and this Agreement and all rights
granted therein shall be deemed to be terminated effective
immediately, without notice or prior opportunity to cure the
default in the following cases:

 

(i) 

If an application
or order is made, proceedings are commenced, a resolution is passed
or an application to court is made or whatsoever steps are taken
which might lead to the Franchisee's winding-up, dissolution,
declaration of bankruptcy or insolvency, appointment of an
administrator or controller or custodian or similar officer over
all or any of its assets (including any undertaking of the
Franchisee or any step preliminary to such appointment), assignment
for the benefit of creditors or the appointment of a receiver or
trustee for the assets.

 

(ii) 

If there is any
change in the ownership of more than 15% of the Franchisee's voting
stock (other than in case of Dufry group internal restructuings),
including but not limited to the case of expropriation,
nationalisation or whatsoever manner of exercise of governmental
control upon the Franchisee.

 

The
Parties further agree that this Agreement shall terminate upon the
effective date of any termination or expiry, if any, of the Master
Relationship Agreement entered into between Franchisor and Hudson
Ltd. dated February 1, 2018.

 

 

Page
12

 

Article 20  Effects of Termination

Upon
the proper termination of this Agreement for any reason whatsoever,
the Franchisee shall immediately cease to be a franchisee of the
Franchisor and shall immediately cease to exercise, directly or
indirectly, through any of its sub-franchisees, in any manner
whatsoever any rights arising out of the Franchise and shall,
forthwith upon request by the Franchisor, sign all documents and
take such actions as may be necessary to cancel any registration in
whatsoever register of the Franchisee as a user of the Trademarks.
Further the Franchisee shall return to the Franchisor, at the sole
discretion of the Franchisor, all materials which have been
provided by the Franchisor.

 

Without
prejudice to the foregoing in this Article 20, in case of a
termination by Franchisor without cause based on Article 19.1,
upon request of Franchisee, Franchisor will use its commercially
reasonable efforts to provide, on a case by case basis, to
Franchisee and/or its permitted sub-franchisees who, as of the
receipt by Franchisee of Franchisor's termination notice, operate
certain Shops in good faith reliance on the continued duration of
this Agreement, the right to continue to use the reasonably
necessary IP Rights for the operation of the relevant Shop(s) for a
limited term. Each such continued use shall: (i) fully comply with
the terms and conditions of this Agreement (including, without
limitation, regarding remuneration), which shall continue to remain
in force insofar as the operation of the relevant Shop(s) is
concerned (but, for the avoidance of doubt, not with regard to any
other Shops and/or any other use of the IP Rights); (ii) be limited
to the use expressly permitted by Franchisor on a case by case
basis; (iii) cease immediately without further notice required in
case of any breach of the terms and conditions of this Agreement by
Franchiseee and/or its permitted sub-franchisee that is not
remedied within 30 (thirty) days after Franchisor's request; and
(iv) cease immediately without further notice required, in respect
of each Shop for which an extension based on this Article 20 is
granted, upon the expiry of the remainder of the minimum term of
the concession, lease or similar agreement applicable to the
relevant Shop as in effect as of the receipt by Franchisee of
Franchisor's termination notice (without any extension or
prolongation).

 

Article 21  No Goodwill Redundancy On Termination

Any and
all goodwill which accrues or which has accrued from the Franchise
has accrued and shall accrue for the benefit of the Franchisor and
if so requested by the Franchisor at any time or on the termination
of this Agreement, the Franchisee shall assign all goodwill to the
Franchisor.

 

For the
case that the Franchisee has prior to the date of execution of this
Agreement already exercised any right inherent to the Franchise,
the Franchisee acknowledges that all such use has been under the
control of the Franchisor. Insofar as the Franchisee might have
been regarded as the proprietor of the IP Rights for the purposes
of any applicable law, the Franchisee hereby confirms that it has
abandoned in favour of the Franchisor its proprietorship in the IP
Rights.

 

Consequently,
upon the proper termination of this Agreement for any reason
whatsoever, the Franchisee shall in no case be entitled to receive
from the Franchisor any kind of compensation, redundancy fee or
whatever payment from the Franchisor on the basis of any goodwill
which might have arisen out of the Franchisee’s compliance
with its obligations under this Agreement.

 

 

Page
13

 

In the
unlikely case that any applicable law would vest the Franchisee
with any right to claim from the Franchisor any payment based on
goodwill, the Franchisee hereby waives, to the full extend
permitted by law, any right to claim such payment and
simultaneously declares hereby that, in case of its entitlement
being compulsory by law, it hereby assigns any payment in full to
the Franchisor without requesting any compensation
therefore.

 

Article 22  Entire Agreement

This
Agreement and its Exhibit hereto constitute the entire agreement
between the Parties in connection to the subject matter hereof and
supersede all prior agreements, understandings, negotiations and
discussions with respect to the subject matter hereof whether
written or oral. Except as provided in this Agreement and its
Exhibit, there are no conditions, representations, warranties,
undertakings, promises, inducements or agreements whether direct or
indirect, collateral, expressed or implied made by the Franchisor
to the Franchisee.

 

No
supplement, modification or waiver of this Agreement shall be
binding unless executed in writing by authorised officers of the
Franchisor and the Franchisee.

 

Article 23  Other Contractual Relationships Between The
Parties

The
Parties hereto acknowledge that they have or may have in the future
other contractual relationships between them. It is both
Parties’ interest and intention that the different
contractual relationships between the Parties are kept separated
from each other and that the matters regulated in this Agreement
shall in no way be affected by any term or condition other than
those set forth in this Agreement.

 

Article 24  Severability

The
invalidity or unenforceability of any provision or any covenant of
this Agreement in any jurisdiction shall not affect the validity or
enforceability of such provision or covenant in any other
jurisdiction or of any other provision or covenant hereof or herein
contained and any invalid provision or covenant shall be deemed to
be severable. The Parties shall negotiate in good faith in order to
replace the provision declared invalid or unenforceable with a new
provision, valid and enforceable, which preserves the original
intention of the Parties.

 

Article 25  Successors And Assignees

This
Agreement shall enure to the benefit of and be binding upon the
Franchisor and the Franchisee and their respective legal
representatives, successors and permitted assignees.

 

 

Page
14

 

Article 26  Independent Parties

The
Franchisee is and will at all times remain an independent party of
the Franchisor and is not and shall not represent itself to be the
agent, joint venturer or partner of the Franchisor. No
representations will be made or acts taken by the Franchisee which
could establish any apparent relationship of agency, joint venture
or partnership and the Franchisor shall not be bound in any manner
whatsoever by any agreements, warranties or representations made by
the Franchisee to any other person or with respect to any other
action of the Franchisee. No acts of assistance given by the
Franchisor to the Franchisee shall be construed to alter this
relationship.

 

Article 27  Costs And Taxes

 

27.1  Costs

All
costs related to the preparation and execution of this Agreement
shall be borne by the Franchisor. For the avoidance of doubt, this
Article 27.1 shall not apply to the costs of the use of the
Franchise, including, without limitation, the operation of the
Shops, by Franchisee and its sub-franchisees.

 

27.2  Taxes

The
Franchisor shall be completely responsible for any taxes now or
hereafter imposed on the Franchisor with respect to the
transactions contemplated hereunder, and the Franchisee shall be
completely responsible for any taxes now or hereafter imposed on
the Franchisee with respect to the transactions contemplated
hereunder.

 

All
sums payable to the Franchisor under or in connection with this
Agreement shall be calculated excluding any VAT or any other
applicable taxes. In this Agreement "VAT" means Value Added Tax and
includes any similar tax replacing it or adding to it. Therefore
the Franchisee shall also pay to the Franchisor an amount equal to
the amount of any VAT chargeable according to the applicable tax
regime in each case.

 

If
under the applicable legal dispositions in the Franchisee’s
jurisdiction, any amount to be paid to the Franchisor is subject to
withholding tax, the latter will be subject to taxation at the
relevant tax rate, so that the Franchisor receives the amount
agreed net of withholding tax. To the extent applicable law
requires any such amounts to be paid by the Franchisee directly to
a governmental authority, the Franchisee shall pay such amounts
promptly and receipts or other proof of such payment shall be
provided to the Franchisor immediately upon receipt. If the
Franchisee fails to pay these withholding taxes, will indemnify the
Franchisor for the full amount of such taxes, including any losses
occasioned by its failure to withhold any taxes imposed by any
local jurisdiction on amounts payable by the Franchisee, and for
any liability (including penalties, interest, and expenses) arising
from or concerning the payment of such taxes, whether such
withholding taxes were correctly or legally asserted or
not.

 

Whenever
an Agreement for the avoidance of double taxation between the
involved countries is available, the Franchisee shall provide the
Franchisor with a Certificate of Tax Residence within the meaning
of such agreement.

 

The
Franchisee shall bear the cost and be responsible for the payment
of stamp duty, if any, applicable to this Agreement.

 

 

Page
15

 

All
other taxes imposed, such as turnover taxes, which may be imposed
now or in the future, will be the Franchisee ́s responsibility
and will not affect its obligations to make payments as required
under this Agreement.

 

Article 28  Force Majeure

Neither
the Franchisor nor the Franchisee shall be liable in damages, or
shall be subject to termination of this Agreement by the other
Party, for any delay or default in performing any obligation
hereunder if that delay or default is due to any cause beyond the
reasonable control and without fault or negligence of that Party,
provided that, in order to excuse its delay or default hereunder, a
Party shall notify the other of the occurrence or the cause,
specifying the nature and particulars thereof and the expected
duration thereof, and provided, further, that within 15 (fifteen)
calendar days after the termination of such occurrence or cause,
that Party shall give notice to the other Party specifying the date
of termination thereof. All obligations of both Parties shall
return to being in full force and effect upon termination of such
occurrence or clause.

 

For the
purposes of this Agreement, a "cause beyond the reasonable control"
of a Party shall include, without limiting the generality of the
phrase, any act of God, act of any government (excepting the causes
contained in Article 19.2), or other statutory undertaking,
industrial dispute, fire, explosion, accident, power failure,
flood, riot, or war (declared or undeclared).

 

Article 29  Non-Waiver And Cumulative Rights

The
failure of either Party to exercise any right, power or option
given hereunder or to insist upon the compliance with the terms and
conditions hereof by the other Party shall not constitute a waiver
of the terms and conditions of this Agreement with respect to that
or any other or subsequent breach thereof nor a waiver by the
non-exercising Party of its rights at any time thereafter to
require strict compliance with all terms and conditions hereof
including the terms or conditions with respect to which
non-complying Party has failed to exercise such right or option.
The rights of each Party hereunder are cumulative.

 

Article 30  Notices

All
notices, consents and approvals (hereinafter referred to as a
"Notice") permitted or required to be given hereunder shall be
deemed to be sufficiently and duly given if written and delivered
personally or sent by courier or transmitted by facsimile
transmission or other form of recorded communication tested prior
to transmission, addressed as follows:

 

For the
Franchisor:         Dufry
International AG

Brunngässlein
12

CH-4010
Basel

Switzerland

 

For the
Franchisee:         Hudson
Group (HG) Inc

One
Meadowlands Plaza, 11th Floor

East
Rutherford

New
Jersey, 07073

USA

 

 

Page
16

 

Any
Notice so given shall be deemed to have been received on the date
of delivery if sent by courier, facsimile transmission or other
form of recorded communication, as the case may be. Either Party
from time to time by Notice may change its address for the purposes
of this Agreement.

 

Article 31  Applicable Law

This
Agreement shall be governed and construed in accordance with the
substantive laws of Switzerland, excluding
its conflict of laws principles and excluding the UN Convention on
Contracts for the International Sale of Goods.

 

Article 32  Dispute Resolution and Arbitration

Any
dispute, controversy or claim arising out of or relating to this
Agreement, or the validity, interpretation, breach or termination
thereof, or any agreement or action contemplated thereby (a
“Dispute”), shall be resolved in accordance with the
procedures set forth in this Article 32, which shall be the sole
and exclusive procedures for the resolution of any such Dispute
unless otherwise specified below.

 

The
Board of Directors of either Party may submit any Dispute for
resolution by mediation in accordance with the Swiss Rules of
Commercial Mediation of the Swiss Chambers’ Arbitration
Institution in force on the date when the request for mediation was
submitted in accordance with these Rules. The seat of the mediation
shall be Zurich, although the meetings may be held elsewhere. The
mediation proceedings shall be conducted in English.

 

If a
Dispute is not resolved by mediation as provided in this Article 32
within thirty (30) days of the selection of a mediator (unless the
mediator chooses to withdraw sooner), either Party may submit the
Dispute to be finally resolved by arbitration pursuant in
accordance with the Swiss Rules of International Arbitration of the
Swiss Chambers’ Arbitration Institution in force on the date
when the Notice of Arbitration was submitted in accordance with
those Rules. The Parties consent to a single, consolidated
arbitration for all known Disputes existing at the time of the
arbitration and for which arbitration is permitted.

 

The
number of arbitrators shall be three. The seat of the arbitration
shall be in Zurich. The arbitral proceedings shall be conducted in
English. The arbitration shall be conducted in accordance with the
provisions for expedited procedure.

 

Article 33  Further Assurances

The
Parties hereto agree to do or cause to be done all acts or things
necessary to implement and carry into effect this Agreement to its
full extent, including any kind of public deed or official document
which could be required according to the laws of Switzerland, the
laws of the Territory or to the laws applying to either the
Franchisee or the Franchiser.

 

 

Page
17

 

IN WITNESS THEREOF the Parties hereto have entered into this
Franchising Agreement on the date and place set hereunder and have
executed it in two originals, both of them together constituting
one and the same document.

 

For The Franchisor (Dufry International AG):

 

DATED at Basel this 1st day of February 2018

 

	
Signature:  

	
/s/
Julián
Díaz González

	

 

	

Signature:  

	
/s/
Andreas
Schneiter

	

 

	
Name:    

	
Julián
Díaz González

	

 

	

Name:  

	
Andreas
Schneiter

	

 

	
Title:  

	
Director

	

 

	

Title:  

	
Director

	

 

 

 

For The Franchisee (Hudson Group (HG) Inc):

 

DATED at Basel this 1st day of February 2018

 

	Signature:	
/s/
Julián
Díaz González 

	

 

	

Signature:  

	
/s/
Andreas
Schneiter

	

 

	Name:  	
Julián
Díaz González 

	

 

	Name:  	
Andreas
Schneiter

	

 

	Title:  	
Director 

	

 

	Title:  	Director
	

 

 

 

Page
18

 

EXHIBIT 1: COMPONENTS OF THE FRANCHISE

 

The list herein below represents only an overview of the components
of the Franchise and is not meant to be exhaustive. The scope of
the Centralised Support Services, which may vary from time to time,
shall be at the sole discretion of the Franchisor. The application
of the Dufry Group Trademarks has to be compliant with "Dufry
Corporate Identity Guidelines" as updated from time to time. Should
an envisaged application not be covered by the "Dufry Corporate
Identity Guidelines" the Franchisors approval is
required.

 

(i)

Trademarks:

 

●

The Dufry
Brands/Trademarks:

o

DUFRY

o

NUANCE

o

WORLD DUTY FREE
GROUP

(including
“DUFRY” master brand logo and “” signage, as
well as applicable colours and fonts);

 

●

Global Brand
Guidelines (technical details regarding application of the
brands);

 

●

Guidance and
training on how to utilise the logos and brands within stores (e.g.
on banners, logos, point of sale machines, sales tickets, plastic
bags etc);

 

●

Guidance and
training on how to utilise the master brand logo and brands on
stationery (letters, business cards, signage etc); and

 

●

Trademark
registrations and legal protection by the Franchisor.

 

(ii)

Business
Concept:

 

●

Commercial Concepts
for the traditional duty-free business (DUFRY, WDFG &
NUANCE)

 

●

Store Product
Category Concepts;

 

●

Store Operating
Concept;

 

●

The VIP Discount
Card;

 

●

Special Offers
Brochure (issued 3/4 times a year in major stores);

 

●

Calendar of
Promotions (month by month calendar of promotions designed for
every Store);

 

●

Corporate Web-Sites
including Pre-Order Platforms; and

 

●

Development of
Alternative Sales Channels.

 

 

Page
19

 

(iii)

Access
to Global Distribution Center:

 

●

Access to
replenishing tools; and

 

●

Access to central
datawarehouse structures such as Dufry Central Information System
(DCIS).

 

(iv)

Supporting
Business Related IP:

 

●

Marketing
Knowhow;

 

●

Product
Assortment;

 

●

Standardised
Business Procedures;

 

●

Central Management
of Promotion and Advertising Activities;

 

●

Dufry Magazines
& Corporate Communication;

 

●

Central
Industry/Market/Sales Knowledge;

 

●

Sales Staff
Training; and

 

●

Tender and Business
Development Support.

 

(v)

Centralised
Support Services:

 

●

Treasury Services
including Intragroup Financing and FX Hedging;

 

●

Internal Audit
including Loss Prevention Program;

 

●

Legal
Services;

 

●

Tax
Support;

 

●

Global Insurance
Programs; and

 

●

Budgeting,
Controlling and Performance Analysis Support.

 

 

Page
20

 

EXHIBIT 2: FRANCHISE FEE

 

The
Franchise fee rate payable by the Franchisee to the Franchisor
shall be set at:

 

Duty
Free Sales under the DUFRY trademark

3%
(THREE PERCENT) of the Net Sales of the Franchisee.

 

Duty
Free Sales under the NUANCE trademark

3%
(THREE PERCENT) of the Net Sales of the Franchisee.

 

Duty
Free Sales under the WORLD DUTY FREE trademark

3%
(THREE PERCENT) of the Net Sales of the Franchisee.

 

Duty
Free Sales under the franchise concept but not under a trademark(s)
of the Dufry Group

2% (TWO
PERCENT) of the Net Sales of the Franchisee.

 

Duty
Paid Sales under the franchise concept whether or not under a
trademark(s) of the Dufry Group (“Endorsement Fee”)

0.35%
(POINT THREE FIVE PERCENT) of the Net Sales of the
Franchisee

 

 

Page
21Exhibit

Exhibit 4.2

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN SECTIONS 5.3 AND 5.4 BELOW, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

WARRANT TO PURCHASE STOCK

Company: Miragen Therapeutics, Inc., a Delaware corporation
Number of Shares: As set forth in Paragraph A below
Type/Series of Stock: As set forth in Paragraph A below
Warrant Price: As set forth in Paragraph A below
Issue Date: April 30, 2015
Expiration Date: April 30, 2025    See also Section 5.1(b).
Credit Facility:  This Warrant to Purchase Stock (“Warrant”) is issued in connection with that certain Loan and Security Agreement of even date herewith between Silicon Valley Bank and the Company (as amended and/or modified and in effect from time to time, the “Loan Agreement”).

THIS WARRANT CERTIFIES THAT, for good and valuable consideration, SILICON VALLEY BANK (together with any successor or permitted assignee or transferee of this Warrant or of any shares issued upon exercise hereof, “Holder”) is entitled to purchase up to such number of fully paid and non-assessable shares of the Class (as defined below) of the above-named company (the “Company”) as determined pursuant to Paragraph A below, at the Warrant Price (as defined below), subject to the provisions and upon the terms and conditions set forth in this Warrant.  Reference is made to Section 5.4 of this Warrant whereby Silicon Valley Bank shall transfer this Warrant to its parent company, SVB Financial Group.

A.    Number and Type/Series of Shares; Warrant Price.

(1)    Certain Definitions.    As used herein, the following definitions have the respective meanings set forth below:

“Additional Shares” has the meaning given in Paragraph A(4)(b) below.

“Equity Financing” means the sale or issuance by the Company after the Issue Date of this Warrant set forth above, in a single transaction or series of related transactions, of shares of its convertible preferred stock or other senior equity securities to one or more investors for cash for financing purposes.

“Equity Financing Securities” means, with respect to any Equity Financing, the type, class and series of convertible preferred stock or other senior equity security sold or issued by the Company in such Equity Financing. 

“Equity Financing Price” means, with respect to any Equity Financing, the lowest price per share for which Equity Financing Securities are sold or issued by the Company in such Equity Financing.

“Initial Shares” has the meaning given in Paragraph A(4)(a) below.

“Series B Price” means $6.00, as adjusted from time to time upon the occurrence of events described in Section 2 hereof that occur on or after the Issue Date hereof.

“Series B Stock” shall mean the Company’s Series B Preferred Stock, $0.001 par value per share, and any securities of the Company into or for which the outstanding shares of Series B Preferred Stock may be converted, reclassified, reorganized or exchanged.

(2)    Type/Series of Stock.    

(a)    Initial Shares Class.  The type, class and series of the Company’s capital stock for which this Warrant shall be exercisable in respect of the Initial Shares (the “Initial Shares Class”) shall be Series B Stock, subject to adjustment from time to time in accordance with the provisions of this Warrant.

(b)    Additional Shares Class.  The type, class and series of the Company’s capital stock for which this Warrant shall be exercisable in respect of the Additional Shares, if any (the “Additional Shares Class”) shall be Series B Stock, subject to adjustment from time to time in accordance with the provisions of this Warrant; provided, that if, on or prior to the date (if any) on which this Warrant becomes exercisable for the Additional Shares, there shall have occurred one or more Equity Financings, then “Additional Shares Class” shall mean the Equity Financing Securities sold and issued by the Company in the then-most recent such Equity Financing, subject to adjustment thereafter from time to time in accordance with the provisions of this Warrant.

(c)    Class.    As used in this Warrant, “Class” shall mean and refer to the Initial Shares Class in respect of the Initial Shares, and the Additional Shares Class in respect of the Additional Shares (if any).

(3)    Warrant Price.

(a)    Initial Shares Warrant Price.  The purchase price per Initial Share hereunder (the “Initial Shares Warrant Price”) shall be the Series B Price, subject to adjustment from time to time in accordance with the provisions of this Warrant.

(b)    Additional Shares Warrant Price.  The purchase price per Additional Share (if any) hereunder (the “Additional Shares Warrant Price”) shall be the Series B Price, subject to adjustment from time to time in accordance with the provisions of this Warrant; provided, that if, on or prior to the date (if any) on any Funded Tranche B Loan (as defined below) is made, there shall have occurred one or more Equity Financings, then the “Additional Shares Warrant Price” with respect to the Additional Shares for which this Warrant becomes exercisable with respect to such Funded Tranche B Loan shall mean the Equity Financing Price of the then-most recent such Equity Financing, subject to adjustment thereafter from time to time in accordance with the provisions of this Warrant.

2

(c)    Warrant Price.  As used in this Warrant, “Warrant Price” shall mean the Initial Shares Warrant Price in respect of the Initial Shares, and the Additional Shares Warrant Price in respect of the Additional Shares (if any).

(4)    Number of Shares.  This Warrant shall be exercisable for the Initial Shares, plus the Additional Shares, if any (collectively, and as may be adjusted from time to time in accordance with the provisions hereof, the “Shares”).

(a)    Initial Shares.    As used herein, “Initial Shares” means 16,667 shares of the Initial Shares Class, subject to adjustment from time to time in accordance with the provisions of this Warrant.

(b)    Additional Shares.    Upon the funding by Holder, if any, of each Term Loan in Tranche B (as such terms are defined in the Loan Agreement) to the Company in any amount (each, a “Funded Tranche B Loan”) this Warrant automatically shall become exercisable for such number of additional shares of the Additional Shares Class as shall equal (i) two percent (2%) of the principal amount of such Funded Tranche B Loan, divided by (ii) the Additional Shares Warrant Price applicable to such Funded Tranche B Loan, subject to adjustment from time to time thereafter in accordance with the provisions of this Warrant.  All shares (if any) for which this Warrant becomes exercisable in accordance with the provisions of this Paragraph A(4)(b) are referred to herein collectively as the “Additional Shares”).

SECTION 1. EXERCISE.

1.1    Method of Exercise.  Holder may at any time and from time to time through the Expiration Date exercise this Warrant, in whole or in part, by delivering to the Company the original of this Warrant together with a duly executed Notice of Exercise in substantially the form attached hereto as Appendix 1 and, unless Holder is exercising this Warrant pursuant to a cashless exercise set forth in Section 1.2, a check, wire transfer of same-day funds (to an account designated by the Company), or other form of payment acceptable to the Company for the aggregate Warrant Price for the Shares being purchased.

1.2    Cashless Exercise.  On any exercise of this Warrant, in lieu of payment of the aggregate Warrant Price in the manner as specified in Section 1.1 above, but otherwise in accordance with the requirements of Section 1.1, Holder may elect to receive Shares equal to the value of this Warrant, or portion hereof as to which this Warrant is being exercised.  Thereupon, the Company shall issue to the Holder such number of fully paid and non-assessable Shares as are computed using the following formula: 

X = Y(A-B)/A

where:
X =    the number of Shares to be issued to the Holder;

		
	Y =
	the number of Shares with respect to which this Warrant is being exercised (inclusive of the Shares surrendered to the Company in payment of the aggregate Warrant Price);

3

		
	A =
	the Fair Market Value (as determined pursuant to Section 1.3 below) of one Share; and

B =    the Warrant Price.

1.3    Fair Market Value.  If the Company’s common stock is then traded or quoted on a nationally recognized securities exchange, inter-dealer quotation system or over-the-counter market (a “Trading Market”) and the Class is common stock, the fair market value of a Share shall be the closing price or last sale price of a share of common stock reported for the Business Day immediately before the date on which Holder delivers the original of this Warrant together with its Notice of Exercise to the Company.  If the Company’s common stock is then traded in a Trading Market and the Class is a series of the Company’s convertible preferred stock, the fair market value of a Share shall be the closing price or last sale price of a share of the Company’s common stock reported for the Business Day immediately before the date on which Holder delivers the original of this Warrant together with its Notice of Exercise to the Company multiplied by the number of shares of the Company’s common stock into which a Share is then convertible.  If the Company’s common stock is not traded in a Trading Market, the Board of Directors of the Company shall determine the fair market value of a Share in its reasonable good faith judgment.

1.4    Delivery of Certificate and New Warrant.  Within a reasonable time after Holder exercises this Warrant in the manner set forth in Section 1.1 or 1.2 above, the Company shall deliver to Holder a certificate representing the Shares issued to Holder upon such exercise and, if this Warrant has not been fully exercised and has not expired, a new warrant of like tenor representing the Shares not so acquired.

1.5    Replacement of Warrant.  On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form, substance and amount to the Company or, in the case of mutilation, on surrender of the original of this Warrant to the Company for cancellation, the Company shall, within a reasonable time, execute and deliver to Holder, in lieu of this Warrant, a new warrant of like tenor and amount.

1.6    Treatment of Warrant Upon Acquisition of Company.

(a)Acquisition.  For the purpose of this Warrant, “Acquisition” means any transaction or series of related transactions involving: (i) the sale, lease, exclusive license, or other disposition of all or substantially all of the assets of the Company (ii) any merger or consolidation of the Company into or with another person or entity (other than a merger or consolidation effected exclusively to change the Company’s domicile), or any other corporate reorganization, in which the stockholders of the Company in their capacity as such immediately prior to such merger, consolidation or reorganization, own less than a majority of the Company’s (or the surviving or successor entity’s) outstanding voting power immediately after such merger, consolidation or reorganization (or, if such Company stockholders beneficially own a majority of the outstanding voting power of the surviving or successor entity as of immediately after such merger, consolidation or reorganization, such surviving or successor entity is not the Company); or (iii) any sale or other transfer by the stockholders of the Company of shares representing at least a majority of the Company’s then-total outstanding combined voting power; provided, that “Acquisition” shall not include the sale and issuance by the Company of shares of its capital stock to one or more investors for 

4

cash and/or conversion of indebtedness in a transaction or series of related transactions the principal purpose of which is the bona fide equity financing of the Company.

(b)    Treatment of Warrant at Acquisition.  In the event of an Acquisition in which the consideration to be received by the Company’s stockholders consists solely of cash, solely of Marketable Securities or a combination of cash and Marketable Securities (a “Cash/Public Acquisition”), and the fair market value of one Share as determined in accordance with Section 1.3 above would be greater than the Warrant Price in effect on such date immediately prior to such Cash/Public Acquisition, and Holder has not exercised this Warrant pursuant to Section 1.1 above as to all Shares, then this Warrant shall automatically be deemed to be cashless exercised pursuant to Section 1.2 above as to all Shares effective immediately prior to and contingent upon the consummation of a Cash/Public Acquisition.  In connection with such cashless exercise pursuant to Section 1.2 above, Holder shall be deemed to have restated each of the representations and warranties in Section 4 of the Warrant as of the date thereof and the Company shall promptly notify the Holder of the number of Shares (or such other securities) issued upon cashless exercise.  In the event of a Cash/Public Acquisition where the fair market value of one Share as determined in accordance with Section 1.3 above would be less than the Warrant Price in effect immediately prior to such Cash/Public Acquisition, then this Warrant will expire immediately prior to the consummation of such Cash/Public Acquisition.  

(c)     Upon the closing of any Acquisition other than a Cash/Public Acquisition, the acquiring, surviving or successor entity shall assume the obligations of this Warrant, and this Warrant shall thereafter be exercisable for the same securities and/or other property as would have been paid for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on and as of the closing of such Acquisition, subject to further adjustment from time to time in accordance with the provisions of this Warrant.

(d)     As used in this Warrant, “Marketable Securities” means securities meeting all of the following requirements: (i) the issuer thereof is then subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is then current in its filing of all required reports and other information under the Act and the Exchange Act; (ii) the class and series of shares or other security of the issuer that would be received by Holder in connection with the Acquisition were Holder to exercise this Warrant on or prior to the closing thereof is then traded in a Trading Market, and (iii) following the closing of such Acquisition, Holder would not be restricted from publicly re-selling all of the issuer’s shares and/or other securities that would be received by Holder in such Acquisition were Holder to exercise this Warrant in full on or prior to the closing of such Acquisition, except to the extent that any such restriction (x) arises solely under federal or state securities laws, rules or regulations, and (y) does not extend beyond six (6) months from the closing of such Acquisition.
1.7    Holder Put Right.    Notwithstanding the provisions of Section 1.6 above or any other provision of this Warrant to the contrary, in connection with (i) an Acquisition or IPO (as hereinafter defined), (ii) the liquidation, dissolution or winding up of the Company, or (iii) the expiration of this Warrant, in each case occurring prior to the exercise of this Warrant by Holder in whole or in part, Holder shall have the one-time right (but not the obligation), exercisable in its sole discretion upon written notice to the Company (the “Put Notice”) given not less than: 

(w)  in the case of an Acquisition, ten (10) days following the Company’s written notice to Holder specifying the final agreed determination of the total 

5

consideration to be paid in respect of one share of the Class in connection therewith,

(x)  in the case of the IPO, ten (10) days following the consummation thereof,

(y)  in the case of a liquidation, dissolution or winding-up of the Company, ten (10) days following the Company’s written notice to Holder of its final determination of the aggregate amounts (if any) to be distributed in respect of each share of the Class, or

(z)  in the case of expiration, thirty (30) days prior to the Expiration Date,

to require the Company to repurchase from Holder all (but not less than all) of this Warrant (and the Company hereby agrees to repurchase this Warrant from Holder upon Holder’s exercise of such right) for a total aggregate purchase price equal to the sum of (A) One Hundred Thousand Dollars ($100,000.00) and (B) two percent (2%) of the aggregate principal amount of the Term Loan(s) in Tranche B, if any, actually funded by Holder to the Company on or before the date of the Put Notice and regardless of whether any such Term Loan in Tranche B is then still outstanding (such sum, which in no event shall exceed $200,000, the “Repurchase Price”), such Repurchase Price to be paid by the Company to Holder in cash in a single installment of immediately available funds at the Put Closing (as defined below), against surrender by Holder to the Company thereat of the original of this Warrant, duly endorsed for transfer on the books of the Company or accompanied by duly executed stock powers and/or other instruments of assignment or transfer.  As used in this Section 1.7, “Put Closing” means such date as shall be set forth in Holder’s Put Notice on which the closing of the Company’s repurchase of this Warrant shall occur, which date shall be 

(A)  in the event of a repurchase in connection with an Acquisition, the later of (i) the closing thereof, and (ii) ten (10) days following the date of Holder’s Put Notice (or, if the same shall not be a Business Day (as hereinafter defined), then on the first Business Day following such tenth day), 

(B)  in the event of a repurchase in connection with the IPO, ten (10) days following the date of Holder’s Put Notice (or, if the same shall not be a Business Day, then on the first Business Day following such tenth day), 

(C)  in the event of a repurchase in connection with the liquidation, dissolution or winding-up of the Company, the date of the first distribution made to holders of shares of the Class in connection therewith, or, if no such distribution is anticipated to be made, ten (10) days following the date of Holder’s Put Notice (or, if the same shall not be a Business Day, then on the first Business Day following such tenth day), or 

(D)  in the event of a repurchase in connection with the expiration of this Warrant, the Expiration Date (or, if the same shall not be a Business Day, then on the first Business Day following such Expiration Date); 

Notwithstanding anything in this Warrant to the contrary, (y) upon the delivery of the Put Notice, but subject to the consummation both of the event giving rise to Holder’s delivery thereof and of the Put 

6

Closing, this Warrant shall cease to be exercisable and (z) upon the consummation of both the event giving rise to Holder’s delivery of the Put Notice and the Put Closing, this Warrant shall terminate and be of no further force or effect.

1.8    Certain Agreements.    Upon any exercise of this Warrant and solely with respect to the Shares issued thereupon (and the shares of Common Stock, if any, issued upon conversion of such Shares), Holder shall, if the Company so requests in writing, become a party to, by execution and delivery to the Company of a counterpart signature page, joinder agreement, instrument of accession or similar instrument, the Company’s Second Amended and Restated Voting Agreement, dated as of April 10, 2012, by and among the Company and certain of its stockholders, as such agreement may be amended from time to time (the “Voting Agreement”), and to be deemed an “Investor” under the Voting Agreement for purposes thereof, only if (i) all holders of outstanding shares of the Class are then parties thereto, and (ii) such agreement is then by its terms in force and effect.  Provided that the conditions described in the foregoing clauses (i) and (ii) are met as to the Voting Agreement at the time of any exercise of this Warrant, Holder shall, effective upon such exercise, automatically become bound by, and the Shares issued upon such exercise (and the shares of Common Stock, if any, issuable upon conversion of such Shares), automatically become subject to, such Voting Agreement.

SECTION 2. ADJUSTMENTS TO THE SHARES AND WARRANT PRICE.

2.1    Stock Dividends, Splits, Etc.  If the Company declares or pays a dividend or distribution on the outstanding shares of the Class payable in common stock or other securities or property (other than cash), then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without additional cost to Holder, the total number and kind of securities and property which Holder would have received had Holder owned the Shares of record as of the date the dividend or distribution occurred.  If the Company subdivides the outstanding shares of the Class by reclassification or otherwise into a greater number of shares, the number of Shares purchasable hereunder shall be proportionately increased and the Warrant Price shall be proportionately decreased.  If the outstanding shares of the Class are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased and the number of Shares shall be proportionately decreased.

2.2    Reclassification, Exchange, Combinations or Substitution.  Upon any event whereby all of the outstanding shares of the Class are reclassified, exchanged, combined, substituted, or replaced for, into, with or by Company securities of a different class and/or series, then from and after the consummation of such event, this Warrant will be exercisable for the number, class and series of Company securities that Holder would have received had the Shares been outstanding on and as of the consummation of such event, and subject to further adjustment thereafter from time to time in accordance with the provisions of this Warrant.  The provisions of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, combinations, substitutions, replacements or other similar events. 

2.3    Conversion of Preferred Stock.  If the Class is a class and series of the Company’s convertible preferred stock, in the event that all outstanding shares of the Class are converted, automatically or by action of the holders thereof, into common stock pursuant to the provisions of the Company’s Certificate of Incorporation, including, without limitation, in connection with the Company’s initial, underwritten public offering and sale of its common stock pursuant to an effective registration statement under the Act (the “IPO”), then from and after the date on which all outstanding shares of the Class have been so converted, this Warrant shall be exercisable for such number of shares of common stock into which 

7

the Shares would have been converted had the Shares been outstanding on the date of such conversion, and the Warrant Price shall equal the Warrant Price in effect as of immediately prior to such conversion divided by the number of shares of common stock into which one Share would have been converted, all subject to further adjustment thereafter from time to time in accordance with the provisions of this Warrant.
2.4    Adjustments for Diluting Issuances.  Without duplication of any adjustment otherwise provided for in this Section 2, the number of shares of common stock issuable upon conversion of the Shares shall be subject to anti-dilution adjustment from time to time in the manner set forth in the Company’s Certificate of Incorporation as if the Shares were issued and outstanding on and as of the date of any such required adjustment.  

2.5    No Fractional Share.  No fractional Share shall be issuable upon exercise of this Warrant and the number of Shares to be issued shall be rounded down to the nearest whole Share.  If a fractional Share interest arises upon any exercise of the Warrant, the Company shall eliminate such fractional Share interest by paying Holder in cash the amount computed by multiplying the fractional interest by (i) the fair market value (as determined in accordance with Section 1.3 above) of a full Share, less (ii) the then-effective Warrant Price.

2.6    Notice/Certificate as to Adjustments.  Upon each adjustment of the Warrant Price, Class and/or number of Shares, the Company, at the Company’s expense, shall notify Holder in writing within a reasonable time setting forth the adjustments to the Warrant Price, Class and/or number of Shares and facts upon which such adjustment is based.  The Company shall, upon written request from Holder, furnish Holder with a certificate of its Chief Financial Officer, including computations of such adjustment and the Warrant Price, Class and number of Shares in effect upon the date of such adjustment.

SECTION 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

3.1    Representations and Warranties.  The Company represents and warrants to, and agrees with, the Holder as follows:

(a)    The Series B Price first set forth above is not greater than the price per share at which shares of Series B Stock were last sold and issued prior to the Issue Date hereof in an arms-length transaction in which at least $500,000 of such shares were sold.

(b)    All Shares which may be issued upon the exercise of this Warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and non-assessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein, under the Company’s Bylaws, under the Voting Agreement (to the extent Holder is then subject thereto pursuant to Section 1.8 above), under the Investor Rights Agreement (as defined below) to the extent Holder is then a party thereto, or under applicable federal and state securities laws.  The Company covenants that it shall at all times cause to be reserved and kept available out of its authorized and unissued capital stock such number of shares of the Class, common stock and other securities as will be sufficient to permit the exercise in full of this Warrant and the conversion of the Shares into common stock or such other securities. 

(c)    The Company’s capitalization table attached hereto as Schedule 1 is true and complete, in all material respects, as of the Issue Date.

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3.2    Notice of Certain Events.  If the Company proposes at any time to:
(a) declare any dividend or distribution upon the outstanding shares of the Class or common stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; 
(b) offer for subscription or sale pro rata to the holders of the outstanding shares of the Class any additional shares of any class or series of the Company's stock (other than pursuant to contractual pre-emptive rights); 
(c) effect any reclassification, exchange, combination, substitution, reorganization or recapitalization of the outstanding shares of the Class; 
(d) effect an Acquisition or to liquidate, dissolve or wind up; or 
(e) effect an IPO; 
then, in connection with each such event, the Company shall give Holder: 
(1) in the case of the matters referred to in (a) and (b) above, at least seven (7) Business Days prior written notice of the earlier to occur of the effective date thereof or the date on which a record will be taken for such dividend, distribution, or subscription rights (and specifying the date on which the holders of outstanding shares of the Class will be entitled thereto) or for determining rights to vote, if any;
(2) in the case of the matters referred to in (c) and (d) above, at least seven (7) Business Days prior written notice of the date when the same will take place (and specifying the date on which the holders of outstanding shares of the Class will be entitled to exchange their shares for the securities or other property deliverable upon the occurrence of such event and such reasonable information as Holder may reasonably require regarding the treatment of this Warrant in connection with such event giving rise to the notice); and 
(3) with respect to the IPO, at least seven (7) Business Days prior written notice of the date on which the Company proposes to file its registration statement in connection therewith.  
The Company will also provide information requested by Holder that is reasonably necessary to enable Holder to comply with Holder’s accounting or reporting requirements.
SECTION 4. REPRESENTATIONS, WARRANTIES OF THE HOLDER.

The Holder represents and warrants to the Company as follows:

4.1    Purchase for Own Account.  This Warrant and the securities to be acquired upon exercise of this Warrant by Holder are being acquired for investment for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the Act.  Holder also represents that it has not been formed for the specific purpose of acquiring this Warrant or the Shares.

9

4.2    Disclosure of Information.  Holder is aware of the Company’s business affairs and financial condition and has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant and its underlying securities.  Holder further has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to Holder or to which Holder has access.

4.3    Investment Experience.  Holder understands that the purchase of this Warrant and its underlying securities involves substantial risk.  Holder has experience as an investor in securities of companies in the development stage and acknowledges that Holder can bear the economic risk of such Holder’s investment in this Warrant and its underlying securities and has such knowledge and experience in financial or business matters that Holder is capable of evaluating the merits and risks of its investment in this Warrant and its underlying securities and/or has a preexisting personal or business relationship with the Company and certain of its officers, directors or controlling persons of a nature and duration that enables Holder to be aware of the character, business acumen and financial circumstances of such persons.

4.4    Accredited Investor Status.  Holder is an “accredited investor” within the meaning of Regulation D promulgated under the Act.

4.5    The Act.  Holder understands that this Warrant and the Shares issuable upon exercise hereof have not been registered under the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the Holder’s investment intent as expressed herein.  Holder understands that this Warrant and the Shares issued upon any exercise hereof must be held indefinitely unless subsequently registered under the Act and qualified under applicable state securities laws, or unless exemption from such registration and qualification are otherwise available.  Holder is aware of the provisions of Rule 144 promulgated under the Act.

4.6    Market Stand-off Agreement.  The Holder agrees that the Shares shall be subject to the Market Standoff provisions in Sections 2.11 and 2.12 of the Company’s Second Amended and Restated Investor Rights Agreement, dated as of April 10, 2012, by and among the Company and certain of its stockholders, as amended and in effect from time to time (the “Investor Rights Agreement”).  

4.7    No Shareholder Rights.  Without limitation of any provision of this Warrant, Holder agrees that as a Holder of this Warrant it will not have any rights as a shareholder of the Company (including, but not limited to, voting rights) in respect of the Shares issuable hereunder unless and until the exercise of this Warrant.
SECTION 5. MISCELLANEOUS.

5.1    Term; Automatic Cashless Exercise Upon Expiration.  

(a)     Term. Subject to the provisions of Sections 1.6 and 1.7 above, this Warrant is exercisable in whole or in part at any time and from time to time on or before 6:00 PM, Pacific time, on the Expiration Date and shall be void thereafter.   

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 (b)    Automatic Cashless Exercise upon Expiration.  In the event that, upon the Expiration Date, the fair market value of one Share (or other security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above is greater than the Warrant Price in effect on such date, then this Warrant, to the extent unexercised, shall automatically be deemed on and as of such date to be exercised pursuant to Section 1.2 above as to all Shares (or such other securities) for which it shall not previously have been exercised, and the Company shall, within a reasonable time, deliver a certificate representing the Shares (or such other securities) issued upon such exercise to Holder. 

5.2    Legends.    Each certificate evidencing Shares (and each certificate evidencing securities issued upon conversion of any Shares, if any) shall be imprinted with a legend in substantially the following form:

THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN THAT CERTAIN WARRANT TO PURCHASE STOCK ISSUED BY THE ISSUER TO SILICON VALLEY BANK DATED APRIL __, 2015, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

5.3    Compliance with Securities Laws on Transfer.  This Warrant and the Shares issued upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part except in compliance with applicable federal and state securities laws by the transferor and the transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, as reasonably requested by the Company).  The Company shall not require Holder to provide an opinion of counsel if the transfer is to SVB Financial Group (Silicon Valley Bank’s parent company) or any other affiliate of Holder, provided that any such transferee is an “accredited investor” as defined in Regulation D promulgated under the Act.  Additionally, the Company shall also not require an opinion of counsel if there is no material question as to the availability of Rule 144 promulgated under the Act.

5.4 Transfer Procedure.  After receipt by Silicon Valley Bank of the executed Warrant, Silicon Valley Bank will transfer all of this Warrant to its parent company, SVB Financial Group.  By its acceptance of this Warrant, SVB Financial Group hereby makes to the Company each of the representations and warranties set forth in Section 4 hereof and agrees to be bound by all of the terms and conditions of this Warrant as if the original Holder hereof.  Subject to the provisions of Section 5.3 and upon providing the Company with written notice, SVB Financial Group and any subsequent Holder may transfer all or part of this Warrant or the Shares issued upon exercise of this Warrant (or the securities issued upon conversion of the Shares, if any) to any transferee, provided, however, in connection with any such transfer, SVB Financial Group or any subsequent Holder will give the Company notice of the portion of the Warrant and/or Shares (and/or securities issued upon conversion of the Shares, if any) being transferred with the name, address and taxpayer identification number of the transferee and Holder will surrender this Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable); and provided further, that any subsequent transferee other than SVB Financial Group shall agree in writing with the Company to be bound 

11

by all of the terms and conditions of this Warrant.  Notwithstanding any contrary provision herein, at all times prior to the IPO, Holder may not, without the Company’s prior written consent, transfer this Warrant or any portion hereof, or any Shares issued upon any exercise hereof, or any shares or other securities issued upon any conversion of any Shares issued upon any exercise hereof, to any person or entity who directly competes with the Company, except in connection with an Acquisition of the Company by such a direct competitor.

5.5    Notices.  All notices and other communications hereunder from the Company to the Holder, or vice versa, shall be deemed delivered and effective (i) when given personally, (ii) on the third (3rd) Business Day after being mailed by first-class registered or certified mail, postage prepaid, (iii) upon actual receipt if given by facsimile or electronic mail and such receipt is confirmed in writing by the recipient, or (iv) on the first Business Day following delivery to a reliable overnight courier service, courier fee prepaid, in any case at such address as may have been furnished to the Company or Holder, as the case may be, in writing by the Company or such Holder from time to time in accordance with the provisions of this Section 5.5.  All notices to Holder shall be addressed as follows until the Company receives notice of a change of address in connection with a transfer or otherwise:

SVB Financial Group
Attn:  Treasury Department
3003 Tasman Drive, HC 215
Santa Clara, CA 95054
Telephone: (408) 654-7400
Facsimile:  (408) 988-8317
Email address:  derivatives@svb.com

Notice to the Company shall be addressed as follows until Holder receives notice of a change in address:
        Miragen Therapeutics, Inc.
Attn: Chief Financial Officer
     6200 Lookout Road #100
Boulder, CO 80301
Telephone: (720) 407-4600
Facsimile: (303) 531-5094
Email: jleverone@miragenrx.com

5.6    Waiver.  This Warrant and any term hereof may be changed, waived, discharged or terminated (either generally or in a particular instance and either retroactively or prospectively) only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought.

5.7    Attorneys’ Fees.  In the event of any dispute between the parties concerning the terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees.

5.8    Counterparts; Facsimile/Electronic Signatures.  This Warrant may be executed in counterparts, all of which together shall constitute one and the same agreement.  Any signature page 

12

delivered electronically or by facsimile shall be binding to the same extent as an original signature page with regards to any agreement subject to the terms hereof or any amendment thereto.

5.9    Governing Law.  This Warrant shall be governed by and construed in accordance with the laws of the State of California, without giving effect to its principles regarding conflicts of law.

5.10    Headings.  The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision of this Warrant.
5.11    Business Days.  “Business Day” is any day that is not a Saturday, Sunday or a day on which Silicon Valley Bank is closed.
5.12    Confidentiality.  Holder agrees that all Company information and notices provided to Holder hereunder shall be treated and held by it in confidence in accordance with the provisions of Section 12.8 of the Loan Agreement.

[Remainder of page left blank intentionally]
[Signature page follows]

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IN WITNESS WHEREOF, the parties have caused this Warrant to Purchase Stock to be executed by their duly authorized representatives effective as of the Issue Date written above.

	
			
	“COMPANY”

MIRAGEN THERAPEUTICS, INC.

	By:
	/s/ Jason Leverone
	 

	Name: 
	Jason Leverone
	 

	 
	(Print)
	 

	Title:
	CFO
	 

	
			
	“HOLDER”

SILICON VALLEY BANK

   

	 

	By:
	/s/Benjaman Johnson
	 

	Name: 
	Benjaman Johnson
	 

	 
	(Print)
	 

	Title:
	Managing Director
	 

14

APPENDIX 1

NOTICE OF EXERCISE

1.    The undersigned Holder hereby exercises its right to purchase ___________ shares of the Common/Series ______ Preferred [circle one] Stock of __________________  (the “Company”) in accordance with the attached Warrant To Purchase Stock, and tenders payment of the aggregate Warrant Price for such shares as follows: 

		
	[    ]
	check in the amount of $________ payable to order of the Company enclosed herewith

		
	[    ]
	Wire transfer of immediately available funds to the Company’s account 

		
	[    ]
	Cashless Exercise pursuant to Section 1.2 of the Warrant

		
	[    ]
	Other [Describe] __________________________________________

2.    Please issue a certificate or certificates representing the Shares in the name specified below:
___________________________________________
Holder’s Name

___________________________________________

___________________________________________
(Address)

3.   By its execution below and for the benefit of the Company, Holder hereby restates each of the representations and warranties in Section 4 of the Warrant to Purchase Stock as of the date hereof.

HOLDER:

_________________________

By:_________________________

Name:________________________

Title:_________________________

(Date):_______________________

Appendix 1

SCHEDULE 1

Company Capitalization Table

See attached

1821443.4

Schedule 1

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