Common use of Equity Option Clause in Contracts

Equity Option. GSK shall have the option, but shall not be required, to acquire up to ten percent (10%), in its discretion, of the securities issued in EPIZYME’s next Qualified Financing (as defined below) at the closing of such Qualified Financing and pursuant to the definitive agreements for such Qualified Financing (including customary limitations applicable to strategic investors that are consistent with limitations imposed on strategic investors in EPIZYME’s prior financings) as negotiated by and among EPIZYME and the lead investors in such Qualified Financing. Notwithstanding the foregoing, in no event shall GSK exercise such participation right to the extent that it would own more than 19.9% of EPIZYME’s outstanding capital stock upon the closing of such Qualified Financing (treating for this purpose as outstanding all shares of EPIZYME common stock issuable upon exercise of options outstanding