KalVista Pharmaceuticals, Inc.
Annual Report 2019

Plain-text annual report

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 FORM 10-K (Mark One)☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended April 30, 2019OR☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIODFROM TO Commission File Number 001-36830 KalVista Pharmaceuticals, Inc.(Exact name of Registrant as specified in its Charter) Delaware 20-0915291( State or other jurisdiction ofincorporation or organization) (I.R.S. EmployerIdentification No.) 55 Cambridge ParkwaySuite 901 EastCambridge, Massachusetts 02142(Address of principal executive offices) (Zip Code)Registrant’s telephone number, including area code: (857) 999-0075 Title of Each ClassTrading SymbolName of Exchange on Which RegisteredCommon Stock, $0.001 par value per shareKALVThe Nasdaq Stock Market LLC Securities registered pursuant to Section 12(g) of the Act: NoneIndicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES ☐ NO ☒Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. YES ☐NO ☒Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that theRegistrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ☒ NO ☐Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12months (or for such shorter period that the registrant was required to submit such files). YES ☒ NO ☐Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,”“accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☐ Accelerated filer☒Non-accelerated filer☐ Smaller reporting company ☐Emerging growth company ☒ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant toSection 13(a) of the Exchange Act. ☒Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒The aggregate market value of common stock held by non-affiliates of the registrant calculated based on the closing price of $18.90 of the registrant’s common stock as reported on The NASDAQ Global Market on October31, 2018, the last business day of the registrant’s most recently completed second quarter, was $177,929,193.The number of shares of Registrant’s Common Stock outstanding as of July 1, 2019 was 17,388,298.DOCUMENTS INCORPORATED BY REFERENCEInformation required in responses to Part III of Form 10-K is hereby incorporated by reference to portions of the Registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held in 2019. The ProxyStatement will be filed by the Registrant with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year ended April 30, 2019. Table of Contents PagePART I Item 1.Business 1Item 1A.Risk Factors 20Item 1B.Unresolved Staff Comments 45Item 2.Properties 45Item 3.Legal Proceedings 45Item 4.Mine Safety Disclosures 45 PART II Item 5.Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 46Item 6.Selected Financial Data 48Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations 49Item 7A.Quantitative and Qualitative Disclosures About Market Risk 57Item 8.Financial Statements and Supplementary Data 58Item 9.Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 59Item 9A.Controls and Procedures 59Item 9B.Other Information 60 PART III Item 10.Directors, Executive Officers and Corporate Governance 61Item 11.Executive Compensation 61Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 61Item 13.Certain Relationships and Related Transactions, and Director Independence 61Item 14.Principal Accounting Fees and Services 61 PART IV Item 15.Exhibits, Financial Statement Schedules 62Item 16.Form 10-K Summary 64Signatures 65 Index to Consolidated Financial Statements F-1 iPART ISPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTSThis Annual Report on Form 10-K contains forward-looking statements. All statements other than statements of historical fact are “forward-lookingstatements” for purposes of this Annual Report on Form 10-K. These forward-looking statements may include, but are not limited to, statements regarding ourfuture results of operations and financial position, business strategy, market size, potential growth opportunities, timing and results of preclinical and clinicaldevelopment activities, and potential regulatory approval and commercialization of product candidates. In some cases, forward-looking statements may beidentified by terminology such as “believe,” “may,” “will,” “should,” “predict,” “goal,” “strategy,” “potentially,” “estimate,” “continue,” “anticipate,”“intend,” “could,” “would,” “project,” “plan,” “expect,” “seek” and similar expressions and variations thereof. We have based these forward-lookingstatements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results ofoperations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subjectto a number of risks, uncertainties and assumptions, including those described in the “Risk Factors” section and elsewhere in this Annual Report on Form 10-K. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for ourmanagement to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, maycause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties andassumptions, the forward-looking events and circumstances discussed in this report may not occur and actual results could differ materially and adverselyfrom those anticipated or implied in the forward-looking statements.You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in theforward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected inthe forward-looking statements will be achieved or occur. We undertake no obligation to update publicly any forward-looking statements for any reason afterthe date of this report to conform these statements to actual results or to changes in our expectations, except as required by law.As used in this Annual Report on Form 10-K, the terms “KalVista,” “the Company,” “we,” “us,” and “our” refer to KalVista Pharmaceuticals, Inc. and,where appropriate, its consolidated subsidiary, unless the context indicates otherwise.Item 1. Business.OverviewWe are a clinical stage pharmaceutical company focused on the discovery, development and commercialization of small molecule protease inhibitorsfor diseases with significant unmet need. Our first product candidates are inhibitors of plasma kallikrein being developed for two indications: hereditaryangioedema (“HAE”) and diabetic macular edema (“DME”). We apply our insights into the chemistry of proteases and, with our current programs, thebiology of the plasma kallikrein system, to develop small molecule inhibitors with high selectivity, potency and bioavailability that we believe will makethem successful treatments for disease. We have created a structurally diverse portfolio of oral plasma kallikrein inhibitors and advanced multiple drugcandidates into Phase 1 clinical trials in order to create what we believe will be best-in-class oral therapies for these two indications.We have advanced one of these candidates, KVD900, into later stage clinical development as potential on-demand therapy for HAE attacks, with aPhase 2 clinical trial expected to complete in late 2019. This trial will evaluate the safety and efficacy of KVD900 as an on-demand treatment for HAE attacksin at least 50 Type 1 and Type 2 HAE patients. In the case of DME, we are initially developing a plasma kallikrein inhibitor which is administered directlyinto the eye and anticipate ultimately developing orally delivered drugs. Our most advanced DME drug candidate, KVD001, is currently in a fully enrolledPhase 2 clinical trial which we anticipate will be completed in the second half of 2019.1HAE is a rare and potentially life-threatening condition with symptoms that include episodes of debilitating and often painful swelling in the skin,gastrointestinal tract or airways. Despite having multiple therapies approved, we believe HAE patients are in need of alternatives that better meet theirobjectives for quality of life and ease of disease control. Currently marketed therapies are all administered by injection and we anticipate that there will bestrong interest in safe and effective, orally delivered, small molecule treatments. Our strategy for the treatment of HAE is to develop a portfolio of molecules,both to provide best-in-class oral therapeutics as well as to have the opportunity to evaluate molecules for different market segments. Our medicinalchemistry program has discovered and patented a large portfolio of structurally diverse plasma kallikrein inhibitors, which enables us to select onlycompounds that meet stringent criteria for progression. Based upon results observed in the Phase 1 trial, we have selected the compound KVD900 to move forward as a potential therapy for on-demandtreatment of acute attacks in patients with HAE. We believe that a conveniently administered oral, on-demand product could provide an opportunity tocapture a significant portion of the current acute treatment market as well as patients who may currently use prophylactic therapies because of the lack ofconvenient and effective alternatives. We initiated a Phase 2 clinical trial for KVD900 in late 2018 that we expect to complete in late 2019. This trial willevaluate the safety and efficacy of KVD900 as an on-demand treatment for HAE attacks when taken at the onset of symptoms. Our Phase 1 first-in-human study of KVD900 displayed what we believe is a very attractive profile for on-demand therapy. In the placebo-controlledstudy in healthy volunteers, doses of up to 600 mg were generally well tolerated with no dose-limiting safety signals emerging and no treatment-relatedgastrointestinal adverse events noted at all dose levels tested. The pharmacokinetic exposure profile revealed rapid absorption of KVD900 following oraladministration to maximal concentrations more than 100x the concentration at which we believe we can demonstrate clinical efficacy. The rapidity ofabsorption was such that at the higher dose levels, effective concentrations were reached in as little as 10 minutes after dosing. Exposure to KVD900,determined as both maximal concentration and overall exposure (area under the curve) increased dose-dependently. We believe this combination of rapiduptake and very high drug levels compares favorably to the existing injected therapies, which show no faster absorption and generally much lower peaklevels of drug concentration. Our pharmacodynamic analysis of samples collected from the volunteers following administration of KVD900 shows highlevels of plasma kallikrein inhibition for as long as 10 hours after a single dose. This data, combined with the level of inhibition of plasma kallikrein activityby exogenously added KVD900 in HAE patient plasma tested in a separate assay, leads us to believe that a single dose of KVD900 may inhibit plasmakallikrein in patients experiencing an acute HAE attack sufficiently to provide a therapeutic alternative that is superior to current treatments. DME is the leading cause of moderate vision loss in most developed countries and diabetes, the underlying cause of DME, is the leading cause ofblindness among adults aged 20 to 74 years old, according to 2014 statistics published by the Center for Disease Control and Prevention. Our DME programis initially focused on the development of an intravitreally administered small molecule plasma kallikrein inhibitor, KVD001. We believe intravitreal plasmakallikrein inhibitors may be an effective alternative therapy to vascular endothelial growth factor (“VEGF”) inhibitors and further improve visual acuity anddecrease macular thickening. Preclinical pharmacokinetic studies in animals using KVD001 have shown that direct injection into the eye delivers a highdrug concentration at the desired site of action. The drug concentration is maintained for a prolonged period with a low systemic exposure, potentiallysupporting an extended dosing schedule. We have successfully completed a first-in-human trial of KVD001 in patients with DME and have fully enrolled aPhase 2 trial that we expect to complete in the second half of 2019. In addition to KVD001, we also plan to develop an oral plasma kallikrein inhibitor totreat DME. An oral treatment may provide the opportunity to reduce treatment burden, treat patients earlier in disease progression, and provide a convenientand readily accessible treatment option for DME. In addition to KVD900 for HAE and KVD001 for DME, in January 2019 we announced initiation of a first-in-human study for KVD824, our nextclinical stage oral plasma kallikrein inhibitor candidate. This study tested single doses of KVD824 from 10 mg to 1280 mg and multiple doses from 80mg to640mg given twice daily. KVD824 was generally well tolerated at all dose levels tested. Based upon these results, we believe that KVD824 may havepotential for development in either HAE or DME, and we have determined to conduct additional formulation work to further optimize the pharmacokineticsand pharmacodynamics of the compound prior to making a decision as to which indication to pursue. We anticipate completing this additional work in 2019,and are currently making preparations to initiate a Phase 2 clinical trial in our chosen indication in the first half of 2020.2In October 2017, our wholly-owned, U.K. based subsidiary KalVista Pharmaceuticals Limited (“KalVista Limited) and Merck Sharp & Dohme Corp.(“Merck”) entered into an option agreement (the “Option Agreement”) under which we granted to Merck an option to acquire KVD001 through a periodfollowing completion of a Phase 2 clinical trial. We also granted to Merck a similar option to acquire investigational orally delivered molecules for DME (the“Oral DME Compounds”) that we will continue to develop as part of our ongoing research and development activities, through a period following thecompletion of a Phase 2 clinical trial. Under the terms of the Option Agreement, Merck paid to us a non-refundable upfront fee of $37.0 million in November2017 and may pay up to an additional $715 million in milestones as well as royalties on net sales of any products commercialized under the Agreement. Thenext payment due from Merck will be in the event that Merck determines to exercise its option on KVD001 after we provide them with a data packagefollowing the Phase 2 trial completion. Should Merck exercise this option, they will be obligated to make an exercise payment as well as additionalmilestone payments based upon achievement of further clinical and regulatory events. Merck also invested approximately $9.1 million in a separate privateplacement transaction of common shares that closed concurrently with the Option Agreement.StrategyKey elements of our strategy include: •Apply our deep scientific expertise in the area of serine proteases to develop novel oral therapies for indications with high unmet need. Ourcore scientific team has decades of experience working on protease inhibitors and developing compounds with high potency, selectivity andbioavailability. We have assembled a team of chemists and biologists who have demonstrated the ability to design and formulate multipledrug candidate programs from a broad variety of chemical classes, as indicated by our extensive intellectual property portfolio. Our initialfocus is specifically on development of plasma kallikrein inhibitors for HAE and DME; however, we believe our scientific capabilities alsocan be applied to other proteases to develop therapies for diseases with high unmet need and orphan indications. •Advance multiple HAE product candidates into clinical development. We intend to develop best-in-class oral therapies for HAE and, toaccomplish that goal, we plan to bring multiple drug candidates into clinical trials and compare their performance before determining whichprogram, or programs, to advance. KVD900 has been chosen to advance to later stage development as an on-demand therapy for acute HAEattacks, and a Phase 2 clinical trial in HAE patients is expected to complete in late 2019. We are still conducting preclinical development ofmultiple additional drug candidates. We expect that these additional candidates will be developed for other portions of the HAE market,such as prophylactic treatment, that are still in need of better therapeutic options. •Continue to advance our intravitreal DME program and develop an oral therapy. KVD001, our first product candidate to treat DME, willcomplete a Phase 2 clinical trial in the second half of 2019. We also intend to develop an oral therapy for this indication, which we believecould dramatically improve the standard of care for patients, since all current therapies are delivered by injection into the eye. •Grow our capabilities internally as well as through strategic partnerships. We intend to retain ownership and control of our pipelineprograms to key milestones. For certain indications, such as HAE, that can be addressed by a focused organization, we may determine to keepall program rights and develop sales and marketing capabilities. For programs that address larger markets or require greater infrastructure orresources, we may seek a partner that can provide those capabilities such as we did with Merck in DME. Decisions on whether, and when, toengage in partnerships or collaborations will be based upon our evaluations of the relative risks and rewards of those collaborations at eachpoint in the development cycle.Plasma Kallikrein in HAE and DMEPlasma kallikrein is a serine protease enzyme that is a key early mediator of inflammation and edema. The body modulates the inflammatory effectsof plasma kallikrein through a circulating inhibitor protein called C1-esterase inhibitor (“C1-INH”). Most patients with HAE have genetic mutations that leadto C1-INH deficiency,3which results in an inability to control activated plasma kallikrein in affected tissues. This excessive activation leads to inflammation, edema, and pain.Published laboratory work has shown that the vitreous fluid of the eye is also a site of increased plasma kallikrein in DME. In diabetic patients, theretina is one of a few tissues in which edema develops. Under normal circumstances the eye is protected from the diffusion of plasma proteins by an effectiveblood vessel barrier. In diabetes this barrier becomes less effective and allows plasma proteins such as plasma kallikrein to enter the retina and vitreous. WhileC1-INH can also to enter by the same route, animal models of DME have shown that the concentration of C1-INH in the vitreous fluid is insufficient to fullysuppress the effects of plasma kallikrein on retinal edema. Over time, this edema leads to retinal damage that causes blindness.Hereditary AngioedemaDisease OverviewHAE is a rare and potentially life-threatening genetic condition that occurs in about 1 in 10,000 to 1 in 50,000 people, according to publishedinformation from an HAE patient advocacy group. Excessive plasma kallikrein activation that is not sufficiently controlled by C1-INH leads to HAE attacks,which can vary with regard to the affected tissue or organ and severity. HAE attacks include episodes of intense swelling usually in the skin, gastrointestinaltract or airways. They often lead to temporary disfiguration of various body parts including the hands, feet, face, body trunk, and genitals. In addition,patients often have bouts of excruciating abdominal pain, nausea and vomiting that is caused by swelling in the intestinal wall. Airway swelling isparticularly dangerous and can lead to death by asphyxiation.Attacks can occur spontaneously although they often are associated with anxiety, stress, minor trauma, surgery, or illnesses. Commonly patients arealerted to an impending attack by prodromal symptoms which include rash, fatigue, and muscle aches. Trauma to the oral cavity caused by dental proceduresmakes HAE patients particularly vulnerable to airway attacks. The frequency of HAE attacks is highly variable, with some patients having attacks severaltimes per week and others very infrequently. Population studies have shown that the median number of attacks per month for patients is approximately one,and approximately 90% of patients have two or fewer attacks per month. Although life-threatening airway swelling is rare, at least half of HAE patients haveexperienced at least one such attack and airway attacks remain a major cause of mortality in HAE patients. The severity of attacks is unpredictable and notrelated to their underlying frequency. A patient with only one attack per year can nevertheless be at risk of suffering a laryngeal attack. The most common cause of HAE is a defect or mutation in the gene responsible for the production of C1-INH. HAE is an autosomal dominant disease,meaning that a defect in only one copy of the gene leads to symptoms and that it occurs at similar rates in both males and females. While HAE can result fromthe inheritance of a defective gene from a parent, a number of cases also arise from spontaneous mutations. Patients with C1-INH-related disease are classifiedas Type 1 or Type 2; Type 1 is the most common form and results in low levels of circulating C1-INH and Type 2 results in production of a low functionprotein. An additional form of HAE, sometimes called normal C1-INH HAE, can occur in patients with normal levels of C1-INH for a variety of reasonsincluding mutations in genes for Factor 12, plasminogen or angiopoetin. Moreover, bradykinin-induced acute attacks of angioedema can occuridiopathically in individuals for which a hereditary cause has not yet been identified. Excessive formation of bradykinin can also be caused by increasedcirculation of estrogens, reduced elimination of bradykinin, or through use of drugs such as ACE inhibitors.C1-INH is a natural plasma-borne protein that is an inhibitor of multiple serine proteases in both the complement and kallikrein kinin systems. C1-INH is the predominant physiological inhibitor of plasma kallikrein, and thereby suppresses the generation of bradykinin, a potent hormone produced byplasma kallikrein, that activates its receptors on blood vessels to increase vascular leakage. Uncontrolled plasma kallikrein activity leads to the edema that isthe hallmark of HAE. Selective plasma kallikrein inhibitors and a bradykinin receptor antagonist are approved therapies for HAE. As such, plasma kallikreinis a clinically validated target for HAE and previous studies have demonstrated that plasma kallikrein inhibition can both treat and prevent HAE attacks.4Current Treatments and Market opportunitiesThere are a number of marketed and development stage therapeutics for HAE which provide evidence that inhibition of plasma kallikrein activitywill give therapeutic benefit in HAE. Lanadelumab (TakyzyroTM) is a plasma kallikrein inhibitor indicated for prophylaxis to prevent attacks of HAE. Theprescribing information recommends subcutaneous administration every two weeks. Dosing every four weeks may be considered in some patients.Ecallantide (Kalbitor®) is a small protein inhibitor of plasma kallikrein that is approved for treatment of acute attacks of HAE. While effective, ecallantidehas been associated with cases of anaphylaxis and its approval by the U.S. Food and Drug Administration (“FDA”) includes a black box warning limiting itsadministration to healthcare professionals. Other therapies provide C1-INH replacement to control plasma kallikrein levels. Marketed C1-INH replacementtherapies include Cinryze® and Berinert®, which are purified from human plasma, and Ruconest® which is a recombinant product. Icatibant (Firazyr®) is asynthetic peptide-based antagonist that blocks the activity of bradykinin. All of these products are administered by injection, which is typically lessconvenient for patients and has the potential to reduce compliance. As a result of the lifelong nature of HAE and the challenges related to taking many of theinjected therapies, patient surveys consistently indicate an overwhelming desire of patients for an oral therapy. We believe that a safe and effective oral agenthas the potential to transform treatment for this disease. We also believe that opportunities exist for both acute and prophylactic treatments, and we intend toconsider all of our programs as potential therapies in both segments of the market. For this reason, we plan to evaluate multiple formulations and profiles ofour programs as part of our clinical development strategy.We believe a further future market opportunity may exist in treatment of normal C1-INH HAE. Estimates of the size of this patient population varywidely, but we believe that the nature of normal C1-INH HAE disease may make prophylaxis less attractive for these patients than a safe and rapidly effectiveon-demand plasma kallikrein inhibitor therapy.Our Portfolio of HAE ProgramsOur strategy is to evaluate and develop multiple oral molecules in pursuit of best-in-class therapies for HAE patients, with an initial focus ontreatment of Type 1 and Type 2 HAE. This portfolio approach may lead to development of multiple molecules to address unmet need in both prophylacticand acute market segments. We have promoted multiple molecules into clinical testing and are pursuing additional candidates in order to expand theuniverse of properties and increase the likelihood of delivery of one or more best-in-class treatments for HAE. The first of these product candidates to beevaluated in later stage clinical trials is KVD900. KVD900 entered a Phase 2 clinical trial in late 2018 that is expected to complete in late 2019.KVD900The Phase 1, first-in-human study of KVD900 was a multi-part study consisting of a single ascending dose phase, a formulation cross-over phase, andinvestigation of food effect in 84 healthy, male volunteers. Doses up to 600 mg were tested in this study using both capsule and tablet formulation, with thetablet the intended formulation for future development. Data from the single ascending dose phase of the study showed that KVD900 tablets were rapidlyabsorbed into the bloodstream and achieved blood levels that we believe are sufficient for efficacy within as little as 10 minutes at the higher dose levels, andessentially complete inhibition of plasma kallikrein was observed within 30 minutes. During the formulation cross-over eight subjects were administered 100mg KVD900 in both capsule and tablet formulation with a 7 day washout period between dosings. In the food effect phase twelve subjects were dosed fastedor following a standardized high calorie and high fat meal. The fed state had little impact on the pharmacodynamic profile of KVD900 tablets, delivering95% inhibition within 30 minutes.5There were no severe adverse events (“SAE”) reported. On active treatment, 22 of the 23 reported adverse events (AE) were mild; a moderate AE ofheadache was reported in the 10 mg dose group and considered unrelated to treatment. There was one gastrointestinal AE reported during the study whichwas considered unrelated to treatment. There were no clinically significant changes in vital signs, ECG or safety laboratory findings. Single doses of KVD900up to 600 mg were generally well-tolerated in this study.Evidence from studies using therapies approved for the treatment of acute HAE attacks shows that earlier treatment has a powerful impact on theefficacy outcomes. Despite clear evidence that early treatment markedly reduces attack duration, treatment is often delayed. In one outcome study of 207HAE attacks, attack duration was 2.75-fold shorter when treatment was administered within 1 hour of attack onset (6.1 hours versus 16.8 hours [p<0.001]), yetnearly 60% of patients delayed treatment for more than one hour after the attack began, and 30% waited more than five hours. We believe this delay inadministration is due to many factors including the inconvenience of preparation and administration as well as the discomfort of injectable therapies. An oraltherapy has the potential to overcome these and lower the barrier for treatment for patients. The combination of the rapid uptake of KVD900 to very highblood levels and the likelihood of earlier dosing by patients, could lead to much better disease management and prevention of attacks reaching the criticalstage of significant swelling and discomfort. We therefore believe that a safe, oral on-demand treatment has the potential to become a preferred alternative forpatients currently using injectable treatments, including both acute and prophylactic therapies.Based upon the results of the Phase 1 study, we are currently dosing KVD900 in a Phase 2 clinical trial intended to evaluate KVD900 as an on-demand treatment for HAE attacks. We intend to investigate the efficacy of KVD900 in at least 50 Type 1 and Type 2 HAE patients, conducted at 10-15 sitesin the UK, Germany and several other European countries. During the first part of this two-part study, patients will receive a single 600 mg dose of KVD900while not having an attack to explore pharmacokinetic and pharmacodynamic properties. All patients will then enter part two of the study, which is arandomized, blinded, crossover investigation of the efficacy of KVD900 versus placebo. Each patient will treat two attacks with trial medication, one withKVD900 and one with placebo in a randomized, blinded sequence. Following randomization, patients will be given the first treatment of the sequence to takehome. At the onset of an attack patients will call their doctor to confirm the attack has started and will take their treatment within one hour of the recordedonset. Patients will then return to the clinic to receive the alternative treatment and proceed to treat a second attack in an identical manner. Patients will haveaccess to their normal, acute treatment as required. The primary endpoint is use of standard of care and the secondary endpoints are comprised of severaldifferent symptom severity scores. Data is expected from this trial in late 2019.Additional HAE Development PlansIn parallel with progression of KVD900 for on-demand therapy, we are committed to expansion of our proprietary compound portfolio to enabledevelopment of molecules with a diverse set of properties that maximize our chance of progressing additional best-in-class treatments for HAE. We intend todevelop one of our other drug candidates to provide a therapeutic option for the prophylactic segment of the market. Our scientific team has6demonstrated the ability to consistently generate new candidate molecules, enabling a rigorous selection process that only advances programs that meet strictinternal criteria. As part of this effort, we have developed assays that provide proprietary insights into inhibition of plasma kallikrein, supporting selection ofproduct candidates at an earlier stage that may have a higher likelihood of demonstrating clinical success. Activation of plasma kallikrein during an HAEattack results in the cleavage of high molecular weight kininogen (HK) to release bradykinin, which increases vascular permeability leading to angioedema.Previous studies have shown that protection of HK from cleavage is associated with protection from HAE attacks. Therefore, we use an assay to quantify theprotection of HK whole plasma as an ex vivo model to evaluate the pharmacodynamic effects of plasma kallikrein inhibitors on HAE attacks. This modelevaluates the effects of plasma kallikrein inhibitors on the specific plasma kallikrein substrate (HK) that is associated with bradykinin generation inundiluted plasma, which has physiologically relevant concentrations of components of the kallikrein system as well as factors that may influence the activityof inhibitors. Indeed, we have found that some compounds that work well on pure enzyme may perform poorly in whole plasma. Therefore, we havespecifically selected and optimized plasma kallikrein inhibitors for potency in plasma.Diabetic Macular EdemaDisease OverviewDME occurs as a complication of diabetes and is caused by the breakdown of the endothelial barrier function in the retina, resulting in theaccumulation of fluid in the macula. This leads to edematous thickening of the macula region of the retina and loss of visual acuity, potentially leading toblindness. DME is a major complication associated with diabetes, affecting an estimated 26% of type 1 diabetic patients after 14 years of the disease, and anestimated 29% over their lifetime; 17% of type 1 diabetic patients were estimated to develop clinically significant macular edema over their lifetime.Approximately 900,000 patients in the United States have active DME and are at serious risk of vision loss, according to a study published in 2015.The current standard of care for DME in the United States is therapy directed against VEGF, a hypoxia-induced protein that stimulates the growth ofblood vessels in the retina. FDA approved anti-VEGF therapies for DME are ranibizumab (Lucentis®) and aflibercept (Eylea®). Both of these products areadministered via intravitreal injection at roughly monthly intervals. In addition to treatment by these two products, a large fraction of patients is treated withbevacizumab (Avastin®), another therapy that works through the same mechanism of binding to VEGF but has not been approved for ophthalmic use.Bevacizumab is priced based on its application in oncology and off-label use by retinal specialists typically results in treatment at a fraction of the cost seenwith both ranibizumab and aflibercept. Patients are also treated with laser therapy in some circumstances.A number of other drug therapies are used to treat DME, including corticosteroid anti-inflammatories such as triamcinolone acetonide, fluocinolone,and dexamethasone. These drugs also are administered via intravitreal injection. Sustained release versions of fluocinolone (Illuvien®) and dexamethasone(Ozurdex®) have been approved for use in DME, substantially reducing the number of injections required to obtain and maintain clinical responses. Thesenovel corticosteroid formulations led to 15-letter improvements in visual acuity in approximately 20-30% of patients. Corticosteroid treatment, however, isassociated with a dramatic increase in cataract formation and a rise in intraocular pressure, reducing the attractiveness of these agents as potential therapies inmany patients.In a recent large, multi-center clinical trial in DME patients, anti-VEGF therapy led to approximately 20% of patients improving their visual acuityby 15 letters or more after a median of 9 or 10 intravitreal injections, leaving a significant portion of the patients with inadequate control of their disease.Further, in one study conducted for an approved anti-VEGF, 40% of patients displayed minimal improvement in visual acuity following anti-VEGF therapyafter months of treatment.Research into the biology underlying DME by our scientific team has identified plasma kallikrein as a potential novel target for this indication.KalVista scientists were the first to identify increased concentrations of plasma kallikrein in vitreous fluid samples obtained from individuals with diabeticretinopathy and DME and have pioneered the development of plasma kallikrein inhibitors for the treatment of this disease. Our group has establishedpreclinical models to investigate the role of plasma kallikrein in both VEGF-independent and VEGF-mediated DME as well as for underlying pathologiesassociated with diabetic retinopathy. We have used this in-depth knowledge of the plasma kallikrein system, diabetic retinopathy, and clinicalophthalmology to evaluate the effects of orally available plasma kallikrein inhibitors for the treatment of DME. Using a pharmacology platform,7originally developed and validated using plasma kallikrein knockout mice at the Joslin Diabetes Center and Harvard Medical School, we have screened andcharacterized the pharmacodynamic effects of KalVista’s oral plasma kallikrein inhibitors. We were the first to demonstrate that plasma kallikrein inhibitionand gene knockout are protective against VEGF-induced retinal edema.Using subcutaneously implanted osmotic pumps we have quantified the dose-dependent pharmacodynamic effect of plasma kallikrein inhibitors onVEGF-induced retinal edema and have correlated these effects with both plasma and retinal drug concentrations. Moreover, using gavage we havecharacterized the pharmacokinetic and pharmacodynamics effects of orally administered plasma kallikrein inhibitors on retinal edema. These models andprotocols have enabled detailed characterization and comparison of the effects of multiple oral plasma kallikrein inhibitors on retinal edema.Our DME Development ActivitiesOur first potential DME therapy is KVD001. KVD001 is a potent inhibitor of human plasma kallikrein with an IC50 of approximately 10 nM and ahigh degree of selectivity against a broad range of other proteases. We have developed KVD001 for intravitreal injection because we believe that trials usingthis delivery modality will provide a relatively early and direct proof-of-concept since the molecule is delivered directly to the site of edema. Since otherproducts such as anti-VEGF therapies are also delivered intravitreally, we believe this will be accepted by both physicians and patients and will not lead toany competitive disadvantages. Another inherent advantage of intravitreal administration is that there is very limited systemic exposure, thus reducingpotential systemic safety concerns.We have completed an open label single ascending dose Phase 1 trial of KVD001 in 14 DME patients, all of whom had previously received anti-VEGF treatment but had discontinued this treatment prior to entry into the study. Following this study, we conducted further preclinical testing to enablemultiple monthly injections of KVD001, as well as enable concurrent treatment with KVD001 and anti-VEGF therapy. In 2018 we began recruiting a Phase 2trial of KVD001 administered by intravitreal injection in DME patients that is now fully enrolled. This study is intended to evaluate the safety and efficacy ofKVD001 in patients with DME who have received previous anti-VEGF therapy but continue to demonstrate reduced visual acuity and significant edema. Allpatients will have discontinued anti-VEGF therapy prior to entry into the study. The double-masked study consists of two active arms receiving low or highdose injections, and a sham control arm. Patients receive a total of four injections over a three-month period, with evaluation at the end of the dosing periodand for three months following. The endpoints include safety and tolerability, best corrected visual acuity, central subfield thickness, and thediabetic retinopathy severity scale. We continue to anticipate that data from this study will be available in the second half of 2019.KVD001 is subject to the Option Agreement with Merck. Under the terms of that Agreement once we provide certain data including results from thestudy, Merck will have a defined period to exercise the option on KVD001, as well as to make an additional payment to maintain the option on the Oral DMECompounds.Potential for Oral DME TherapiesIn parallel with the clinical development of our intravitreal product candidate KVD001, we intend to identify and advance plasma kallikreininhibitors as oral therapies for DME. We believe that a safe and effective oral therapy has the potential to transform the treatment of DME which to date hasbeen dominated by drug therapies that must be injected intravitreally. Future trials in DME with oral plasma kallikrein inhibitors may focus on the treatmentof earlier stage disease, a stage at which intravitreal injections are not a desirable solution due to their inherently invasive nature and consequent risk ofadverse reactions. Additional Earlier Stage ProgramsIn January 2019, we announced the initiation of a first-in-human study for our next clinical stage oral plasma kallikrein inhibitor, KVD824. Thisongoing study includes single ascending dose, multiple ascending dose, and food effect cohorts, and tests the drug at dose levels ranging from 10 mg to 1280mg. The single ascending dose part of the study demonstrated dose-dependent increases in exposure, achieving mean Cmax concentrations of over 9,0008ng/ml at the highest dose studied. The multiple ascending dose part of the study was conducted at doses from 80 mg up to 640 mg twice per day for 5 days.Exposures were consistent between days 1 and 5 at all dose levels. Examination of the blinded safety data across all cohorts, both single and multiple dose,revealed no significant changes in vital signs, ECG or safety laboratory results, there were no dose-limiting tolerability or safety signals reported and allsubjects completed the study.The blood levels achieved in this study, along with other preclinical data we have generated, suggests to us that KVD824 may have potential fordevelopment in either HAE or DME. We further believe that there may be an opportunity to formulate KVD824 in such manner as to modify the releasecharacteristics to further optimize its potential in either of these indications. We have initiated that formulation development work, which we anticipate canbe completed in 2019. Based upon the results of those efforts, as well as other strategic considerations, additional ongoing preclinical development of othercompounds and the results of our ongoing trials in both HAE and DME, we expect to make a final determination of the indication in which to developKVD824 in early 2020. We are currently planning for a Phase 2 clinical trial for KVD824 that we would seek to initiate in our selected indication in the firsthalf of 2020.The pharmacology of KVD824 has been studied in pharmacodynamic models of both HAE and DME. For HAE, our pharmacology studies show thatKVD824 added exogenously to whole human plasma provides dose dependent protection against HK cleavage following ex vivo stimulation with dextransulfate. The IC50 of KVD824 for dextran sulfate stimulated HK cleavage is approximately 100 nM. For DME, preclinical studies with KVD824 were performed on mice with retinal edema induced by intravitreal injection of VEGF as an experimentalmodel of DME. Retinal edema was quantified as the increase in retinal thickness at 24 hrs post injection with VEGF compared with baseline and measured byoptical coherence tomography (OCT). Oral administration of KVD824 by gavage decreased VEGF-induced retinal edema by 84.6 % compared with micereceiving vehicle (data shown below). A comparable decrease in VEGF-induced edema were demonstrated in mice continuously administered with KVD824using subcutaneously implanted osmotic pumps. The effects of KVD824 in reducing retinal edema is comparable with the effect of complete plasmaprekallikrein gene knockout in reducing VEGF-induced retinal thickening. We have identified the plasma concentrations of KVD824 that are associated withthe inhibition of retinal edema in this murine model. Comparison of these data with the pharmacokinetic data from the first in human study with KVD824indicates that the plasma concentrations KVD824 that associated with a reduction in retinal edema in our preclinical model are achieved by orallyadministered KVD824 in our MAD study described above.9In addition to our clinical stage candidates, we are continually conducting preclinical development work on multiple additional drug candidates inorder to achieve our goal of creating best-in-class oral plasma kallikrein inhibitors for prophylactic HAE therapy, as well as for the treatment of DME. Wecurrently have multiple additional compounds in preclinical testing. We routinely terminate earlier stage programs for any number of reasons that lead us tobelieve they will not achieve our objectives, and our medicinal chemistry team is constantly developing new potential candidates. We believe this capacityto develop large numbers of candidate compounds is key to success in drug development and represents a core strategic asset of the Company.CompetitionIn treating HAE, we expect to face competition from several FDA-approved therapeutics, including TakhzyroTM and Cinryze, marketed by Takeda inthe United States and Europe for the prevention of angioedema attacks in adults and adolescents; Firazyr, marketed by Takeda in the United States, Europeand certain other geographic territories for the treatment of acute angioedema attacks in adult patients; Kalbitor, an injectable plasma kallikrein inhibitormarketed by Takeda for the resolution of acute attacks in adolescent and adult HAE patients; Berinert and Haegarda, marketed by CSL Behring for theprophylaxis and treatment of acute abdominal, facial or laryngeal attacks of HAE in adults and adolescents; and Ruconest, marketed by Pharming Group forthe treatment of acute angioedema attacks in adult patients. We are also aware of two companies that are engaged in the clinical development of oral plasmakallikrein inhibitors for use as prophylaxis in HAE patients, BioCryst Pharmaceuticals and Attune Pharmaceuticals. BioCryst is also conducting clinical trialsof a liquid, orally delivered formulation of BCX7353 for use as on-demand therapy in acute attacks.In treating DME, we expect to face competition from several FDA-approved therapeutics, including anti-VEGF therapies Lucentis, marketed byRoche and Novartis, Eylea, marketed by Regeneron, and off-label use of Avastin from Roche. We also face competition from various corticoid steroidsincluding extended release formulations lluvien, marketed by Alimera, and Ozurdex, marketed by Allergan. We further expect to compete with genericcorticosteroids such as fluocinolone acetonide, and dexamethasone and we are aware of a number of other companies that have product candidates in earlyclinical trials, including Novartis, GlaxoSmithKline, Boehringer Ingelheim, Roche, Regeneron, Ohr Pharmaceutical, Aerpio Therapeutics, Oxurion andAllegro Ophthalmics. Oxurion recently announced data from a Phase 1 clinical trial of an intravitreally delivered plasma kallikrein inhibitor for the treatmentof DME and indicated plans to continue development.Intellectual PropertyOur success substantially depends on our ability to obtain and maintain patents and other forms of intellectual property rights for our productcandidates, methods used to manufacture our product candidates and methods for treating patients using our product candidates, as well as our ability topreserve our trade secrets, to prevent third parties from infringing upon our proprietary rights and to operate without infringing upon the proprietary rights of10others. As of April 30, 2019, we are the owner of nine U.S. patents expiring between 2023 and 2034, absent any extensions, as well as eight pending U.S.patent applications. Any patents issuing from the foregoing owned or licensed U.S. applications are expected to expire in between 2034 and 2037, absent anyadjustments or extensions. As of April 30, 2019, we owned a total of 119 pending foreign applications and 164 patents in multiple jurisdictions. Any issuedpatents, or those issuing from these foreign patent applications, are expected to expire between 2023 and 2037, absent any adjustments or extensions. As ofApril 30, 2019, we also controlled five pending international applications that, if issued, are expected to expire in 2038, absent any adjustments orextensions. The chemical structures of KVD001 and KVD900 are included in composition of matter applications.KVD001 is covered by U.S. patents and patent applications covering composition of matter, methods of treatment, solid form and clinicalformulations. The anticipated expiration dates of these patents, or patents arising from applications, range from 2032 to 2038, absent any adjustments orextensions.Our portfolio of oral plasma kallikrein inhibitors, including KVD900, is covered by U.S. patent applications and pending international applicationscovering composition of matter, methods of treatment, solid form and clinical formulations and any patents arising from those applications are expected toexpire between 2034 to 2038, absent any adjustments or extensions.Patents extend for varying periods according to the date of patent filing or grant and the legal term of patents in various countries where patentprotection is obtained. The actual protection afforded by a patent, which can vary from country to country, depends on the type of patent, the scope of itscoverage and the availability of legal remedies in the country.We also use other forms of protection, such as trademark, copyright and trade secret protection for our intellectual property, particularly where we donot believe patent protection is appropriate or obtainable. We require our employees, consultants, contractors and other advisors to execute nondisclosureand assignment of invention agreements upon commencement of their respective employment or engagement. In addition, we also require confidentiality orservice agreements from third parties that receive confidential information or materials.Government Regulation and Product ApprovalGovernment authorities in the United States, at the federal, state and local level, and in other countries and jurisdictions, including the UnitedKingdom and European Union, extensively regulate, among other things, the research, development, testing, manufacture, quality control, approval,packaging, storage, recordkeeping, labeling, advertising, promotion, distribution, marketing, post-approval monitoring and reporting, and import and exportof pharmaceutical products. The processes for obtaining regulatory approvals in the United States and in foreign countries and jurisdictions, along withsubsequent compliance with applicable statutes and regulations and other regulatory authorities, require the expenditure of substantial time and financialresources.FDA approval processIn the United States, pharmaceutical products are subject to extensive regulation by the FDA. The Federal Food, Drug, and Cosmetic Act, and otherfederal and state statutes and regulations, govern, among other things, the research, development, testing, manufacture, storage, recordkeeping, approval,labeling, promotion and marketing, distribution, post-approval monitoring and reporting, sampling, and import and export of pharmaceutical products.Failure to comply with applicable U.S. requirements may subject a company to a variety of administrative or judicial sanctions, such as clinical hold, FDArefusal to approve pending new drug applications (“NDA”), warning or untitled letters, product recalls, product seizures, total or partial suspension ofproduction or distribution, injunctions, fines, civil penalties, and criminal prosecution.Pharmaceutical product development for a new product or certain changes to an approved product in the United States typically involves preclinicallaboratory and animal tests, the submission to the FDA of an Investigational New Drug (“IND”) application, which must become effective before clinicaltesting may commence in the United States, and adequate and well-controlled clinical trials to establish the safety and effectiveness of the drug for eachindication for which FDA approval is sought. Satisfaction of FDA approval requirements prior to11marketing a pharmaceutical product typically takes many years and the actual time required may vary substantially based upon the type, complexity, andnovelty of the product or disease.Preclinical tests include laboratory evaluation of product chemistry, formulation and manufacturing process, as well as toxicity studies in animals toassess the characteristics and potential safety and efficacy of the product. The conduct of the preclinical tests must comply with federal regulations andrequirements, including good laboratory practices and good manufacturing practice (“cGMP”). The results of preclinical testing are submitted to the FDA aspart of an IND along with the information on product chemistry, manufacturing and controls, and a proposed clinical trial protocol. For the initial INDsubmission, a 30-day waiting period after the submission of the IND is required prior to the commencement of the clinical trial in humans. If the FDA hasneither commented on nor questioned the IND within this 30-day period, the clinical trial proposed in the IND may begin. For subsequent clinical trialprotocols submitted to the IND, there is no mandated review time for FDA. Longer duration pre-clinical studies, for example animal tests of reproductivetoxicology and carcinogenicity, if required, will be conducted and submitted to the IND throughout the development of the product until sufficient data isavailable to support submission of an NDA. Clinical trials involve the administration of the investigational drug to healthy volunteers or patients under thesupervision of a qualified investigator. Clinical trials must be conducted: (i) in compliance with federal regulations; (ii) in compliance with good clinicalpractice (“GCP”), an international standard designed to protect the rights, safety and well-being of trial subjects and to define the roles of clinical trialsponsors, administrators and monitors; as well as (iii) under protocols detailing the objectives of the trial, the parameters to be used in monitoring safety, andthe effectiveness criteria to be evaluated. Each protocol involving testing on U.S. patients and subsequent protocol amendments must be submitted to theFDA as part of the IND.The FDA may order the temporary, or permanent, discontinuation of a clinical trial at any time, or impose other sanctions if it believes that theclinical trial either is not being conducted in accordance with FDA requirements or presents an unacceptable risk to the clinical trial patients. The trialprotocol and informed consent information for patients in clinical trials must also be submitted to an institutional review board (“IRB”), for approval prior tothe start of the clinical trial. An IRB may also require the clinical trial at the site to be halted, either temporarily or permanently, for failure to comply with theIRB’s requirements, or may impose other conditions.Clinical trials to support NDAs for marketing approval are typically conducted in three sequential phases, but the phases may overlap. In Phase 1, theinitial introduction of the drug into healthy human subjects or patients, the product is tested to assess metabolism, pharmacokinetics, pharmacologicalactions, side effects associated with increasing doses, and, if possible, early evidence on effectiveness. Phase 2 usually involves trials in a limited patientpopulation to determine the effectiveness of the drug for a particular indication, dosage tolerance and optimum dose, and to identify common adverse effectsand safety risks. If a compound demonstrates evidence of effectiveness and an acceptable safety profile in Phase 2 evaluations, Phase 3 trials are undertakento obtain the additional information about clinical efficacy and safety in a larger number of patients, typically at geographically dispersed clinical trial sites,to permit the FDA to evaluate the overall benefit risk relationship of the drug and to provide adequate information for the labeling of the product. In mostcases, the FDA requires two adequate and well-controlled Phase 3 clinical trials to demonstrate the efficacy of the drug. A single Phase 3 trial with otherconfirmatory evidence may be sufficient in rare instances where the trial is a large multicenter trial demonstrating internal consistency and a statisticallypersuasive finding of a clinically meaningful effect on mortality, irreversible morbidity or prevention of a disease with a potentially serious or life-threatening outcome and confirmation of the result in a second trial would be practically or ethically impossible.The manufacturer of an investigational drug in a Phase 2 or 3 clinical trial for a serious or life- threatening disease is required to make available, suchas by posting on its website, its policy on evaluating and responding to requests for expanded access.After completion of the required clinical testing, an NDA is prepared and submitted to the FDA. FDA approval of the NDA is required beforemarketing of the product may begin in the United States. The NDA must include the results of all preclinical and clinical data, including pharmacology andtoxicology results, and the results of other testing and a compilation of data relating to the product’s chemistry, manufacture and controls. The cost ofpreparing and submitting an NDA is substantial. The submission of most NDAs is additionally subject to a application user fee, and once approved, the NDAis also subject to annual product and establishment user fees. These fees are typically increased annually. The FDA has 60 days from its receipt of an NDA todetermine whether12the application will be accepted for filing based on the agency’s threshold determination that it is sufficiently complete to permit substantive review. Oncethe submission is accepted for filing, the FDA begins an in-depth review. The FDA has agreed to certain performance goals in the review of NDAs. Most suchapplications for standard review drug products are reviewed within ten months of the date the FDA files the NDA; most applications for priority review drugsare reviewed within six months of the date the FDA files the NDA. Priority review can be applied to a drug that the FDA determines has the potential to treat aserious or life-threatening condition and, if approved, would be a significant improvement in safety or effectiveness compared to available therapies. Thereview process for both standard and priority review may be extended by the FDA for three additional months to consider certain late-submitted information,or information intended to clarify information already provided in the submission.After the FDA evaluates the NDA and the compliance of manufacturing facilities with GMP, it issues either an approval letter or a complete responseletter. A complete response letter generally outlines the deficiencies in the submission and may require substantial additional testing, or information, in orderfor the FDA to reconsider the application. If, or when, those deficiencies have been addressed to the FDA’s satisfaction, the FDA will issue an approval letter.The FDA has committed to reviewing such additional data in two or six months depending on the type of information included. An approval letter authorizescommercial marketing of the drug with specific prescribing information for the indication being supported. As a condition of NDA approval, the FDA mayrequire a risk evaluation and mitigation strategy (“REMS”) if it is considered that additional measures are needed to ensure that the benefits of the drugoutweigh the potential risks. REMS can include the use of medication guides and communication plans for healthcare professionals, and elements to assuresafe use (“ETASU”). ETASU can include, but are not limited to, special training or certification for prescribing or dispensing, dispensing only under certaincircumstances, special monitoring, and the use of patient registries. The requirement for a REMS can materially affect the potential market and profitability ofthe product. Moreover, product approval may require substantial post-approval testing and surveillance to monitor the product’s safety or efficacy.Once granted, product approvals may be withdrawn if compliance with regulatory standards is not maintained or problems are identified followinginitial marketing. Changes to some of the conditions established in an approved application, including changes in indications, labeling, or manufacturingprocesses or facilities, require submission and FDA approval of a new NDA or NDA supplement before the change can be implemented. An NDA supplementfor a new indication typically requires clinical data similar to that in the original application, and the FDA uses the same procedures and actions in reviewingNDA supplements as it does in reviewing NDAs.Foreign clinical studies to support an NDAThe FDA will accept as support for marketing approval of a product (NDA) well-designed, well-conducted, clinical studies conducted outside of theUnited States if the studies have been conducted in accordance with the exact same standards of GCP, as required in the United States, and the protocol wassubmitted to the IND. FDA may validate the data from the study through an onsite inspection, if necessary. Clinical studies conducted outside the UnitedStates are subject to the same rigorous regulatory controls as the United States (see “— Europe / rest of world government regulation” below).A sponsor or applicant who wishes to rely on a non-IND foreign clinical study to support an IND must submit documentation to the FDA todemonstrate compliance with GCP. The FDA may also request to inspect a foreign clinical study site to confirm compliance.Orphan drug designationUnder the Orphan Drug Act, the FDA may grant orphan drug designation to a compound with the potential to treat a rare disease or condition,generally a disease or condition that affects fewer than 200,000 individuals in the United States, or if it affects more than 200,000 individuals in the UnitedStates, there is no reasonable expectation that the cost of developing and making a product available in the United States for such disease or condition willbe recovered from sales of the product.Orphan drug designation must be requested prior to submitting an NDA. After the FDA grants orphan drug designation, the generic identity of thecompound and its potential orphan use are disclosed publicly by the FDA.13Orphan drug designation does not convey any advantage in, or shorten the duration of, the regulatory review and approval process of an NDA. The first NDAapplicant to receive FDA approval for a drug product containing a compound that has FDA orphan drug designation is entitled to a seven-year exclusivemarketing period in the United States for that drug product for that orphan indication. During the seven-year exclusivity period, the FDA may not approveany other applications to market a drug product containing the same active moiety for the same disease, except in limited circumstances, such as a showing ofclinical superiority to the product with orphan drug exclusivity. A product is clinically superior if it is safer, more effective or makes a major contribution topatient care. Orphan drug exclusivity does not prevent the FDA from approving a drug product containing a different active moiety for the same disease orcondition, or the same drug product for a different disease or condition. Among the other benefits of orphan drug designation are tax credits for certainresearch and a waiver of the NDA user fee.Disclosure of clinical trial informationSponsors of clinical trials of FDA-regulated products, including drugs, are required to register and disclose certain clinical trial information.Information related to the product, patient population, phase of investigation, trial sites and investigators, and other aspects of the clinical trial is then madepublic as part of the registration. Sponsors are also obligated to discuss the results of their clinical trials after completion. Disclosure of the results of thesetrials can be delayed in certain circumstances for up to two years after the date of completion of the trial. Competitors may use this publicly availableinformation to gain knowledge regarding the progress of development programs.Pediatric informationUnder the Pediatric Research Equity Act (“PREA”) NDAs or supplements to NDAs must contain data to assess the safety and effectiveness of the drugfor the claimed indications in all relevant pediatric subpopulations and to support dosing and administration for each pediatric subpopulation for which thedrug product is safe and effective. The FDA may grant full or partial waivers, or deferrals, for submission of data. Unless otherwise required by regulation,PREA does not apply to any drug product for an indication for which orphan designation has been granted.Post-approval requirementsOnce an NDA is approved, a product will be subject to certain post-approval requirements. For instance, the FDA closely regulates the post-approvalmarketing and promotion of drugs, including standards and regulations for direct-to-consumer advertising, off-label promotion, industry-sponsored scientificand educational activities and promotional activities involving the internet. Drugs may be marketed only for the approved indications and in accordancewith the provisions of the approved labeling.Adverse event reporting and submission of periodic reports is required following FDA approval of an NDA. The FDA also may require post-marketingtesting, known as Phase 4 testing, REMS, and surveillance to monitor the effects of an approved product, or the FDA may place conditions on an approvalthat could restrict the distribution or use of the product. In addition, quality control, drug product manufacture, packaging, and labeling procedures mustcontinue to conform to cGMPs after approval. Drug manufacturers and certain of their subcontractors are required to register their establishments with theFDA and certain state agencies. Registration with the FDA subjects entities to periodic unannounced inspections by the FDA, during which the agencyinspects manufacturing facilities to assess compliance with cGMPs. Accordingly, manufacturers must continue to expend time, money, and effort in the areasof production and quality-control to maintain compliance with cGMPs. Regulatory authorities may withdraw product approvals or request product recalls if acompany fails to comply with regulatory standards, or if previously unrecognized problems are subsequently discovered.Other U.S. healthcare laws and compliance requirementsIn the United States, our activities are potentially subject to regulation by various federal, state and local authorities in addition to the FDA,including but not limited to, the Centers for Medicare and Medicaid Services (“CMS”), other divisions of the U.S. Department of Health and Human Services(such as the Office of Inspector14General), the U.S. Department of Justice (“DOJ”), and individual U.S. Attorney offices within the DOJ, and state and local governments. For example, sales,marketing and scientific/educational grant programs may have to comply with the anti-fraud and abuse provisions of the Social Security Act, the false claimslaws, the privacy and security provisions of the Health Insurance Portability and Accountability Act (“HIPAA”), and similar state laws, each as amended, asapplicable.The federal Anti-Kickback Statute prohibits, among other things, any person or entity, from knowingly and willfully offering, paying, soliciting orreceiving any remuneration, directly or indirectly, overtly or covertly, in cash or in kind, to induce or in return for purchasing, leasing, ordering or arrangingfor the purchase, lease or order of any item or service reimbursable under Medicare, Medicaid or other federal healthcare programs. The Patient Protection andAffordable Care Act as amended by the Health Care and Education Reconciliation Act, collectively, the ACA, amended the intent element of the federalstatute so that a person or entity no longer needs to have actual knowledge of the statute or specific intent to violate it in order to commit a violation. Thisstatute has been interpreted broadly to include anything of value. The Anti-Kickback Statute has been interpreted to apply to arrangements betweenpharmaceutical manufacturers on one hand and prescribers, purchasers, and formulary managers on the other. There are a number of statutory exceptions andregulatory safe harbors protecting certain common activities from prosecution or other regulatory sanctions. The exceptions and safe harbors are drawnnarrowly and practices that involve remuneration that may be alleged to be intended to induce prescribing, purchasing or recommending may be subject toscrutiny if they do not qualify for an exception or safe harbor.Federal civil and criminal false claims laws, including the federal False Claims Act, prohibit, among other things, any person or entity fromknowingly presenting, or causing to be presented, a false or fraudulent claim for payment to the federal healthcare programs, including Medicare andMedicaid, or knowingly making, using, or causing to be made or used a false record or statement material to a false or fraudulent claim to the federalgovernment. This includes claims made to programs where the federal government. reimburses, such as Medicaid, as well as programs where the federalgovernment is a direct purchaser, such as when it purchases off the Federal Supply Schedule. Recently, several pharmaceutical and other healthcarecompanies have been prosecuted under these laws for allegedly inflating drug prices they report to pricing services, which in turn were used by thegovernment to set Medicare and Medicaid reimbursement rates, and for allegedly providing free product to customers with the expectation that the customerswould bill federal programs for the product. In addition, certain marketing off-label promotion, may also violate false claims laws. Additionally, PPACAamended the federal Anti-Kickback Statute such that a violation of that statute can serve as a basis for liability under the federal False Claims Act. Themajority of states also have similar fraud and abuse statutes or regulations that apply to items and services reimbursed under Medicaid and other stateprograms, or, in several states, apply regardless of the payor. Additionally, to the extent that any of our products are sold in a foreign country, we may besubject to similar foreign laws.Other federal statutes pertaining to healthcare fraud and abuse include the civil monetary penalties statute, which prohibits, among other things, theoffer or payment of remuneration to a Medicaid or Medicare beneficiary that the offerer or payor knows or should know is likely to influence the beneficiaryto order a receive a reimbursable item or service from a particular supplier, and the additional federal criminal statutes created by the Health InsurancePortability and Accountability Act of 1996, or HIPAA, which prohibits, among other things, knowingly and willfully executing or attempting to execute ascheme to defraud any healthcare benefit program or obtain by means of false or fraudulent pretenses, representations or promises any money or propertyowned by or under the control of any healthcare benefit program in connection with the delivery of or payment for healthcare benefits, items or services.In addition, HIPAA, as amended by HITECH, imposes obligations on certain healthcare providers, health plans, and healthcare clearinghouses,known as covered entities, as well as their business associates that perform certain services involving the storage, use or disclosure of individuallyidentifiable health information, including mandatory contractual terms, with respect to safeguarding the privacy, security, and transmission of individuallyidentifiable health information, and require notification to affected individuals and regulatory authorities of certain breaches of security of individuallyidentifiable health information.Further, pursuant to PPACA, the Centers for Medicare & Medicaid Services, or CMS, has issued a final rule that requires manufacturers of prescriptiondrugs to collect and report information on certain payments or transfers15of value to physicians and teaching hospitals, as well as investment interests held by physicians and their immediate family members. The first reports weredue in 2014 and must be submitted on an annual basis. The reported data is made available in searchable form on a public website on an annual basis.Additionally, the federal Physician Payments Sunshine Act within the ACA, and its implementing regulations, require that certain manufacturers ofdrugs, devices, biological and medical supplies for which payment is available under Medicare, Medicaid or the Children’s Health Insurance Program (withcertain exceptions) report annually to CMS information related to certain payments or other transfers of value made or distributed to physicians and teachinghospitals, or to entities or individuals at the request of, or designated on behalf of, the physicians and teaching hospitals and to report annually certainownership and investment interests held by physicians and their immediate family members. Moreover, the Drug Supply Chain Security Act imposes newobligations on manufacturers of pharmaceutical products related to product tracking and tracing. Legislative and regulatory proposals have been made toexpand post-approval requirements and restrict sales and promotional activities for pharmaceutical products.In order to distribute products commercially, we must comply with state laws that require the registration of manufacturers and wholesale distributorsof drug products in a state, including, in certain states, manufacturers and distributors who ship products into the state even if such manufacturers ordistributors have no place of business within the state. Some states also impose requirements on manufacturers and distributors to establish the pedigree ofproduct in the chain of distribution, including some states that require manufacturers and others to adopt new technology capable of tracking and tracingproduct as it moves through the distribution chain. Several states have enacted legislation requiring pharmaceutical and biotechnology companies toestablish marketing compliance programs, file periodic reports with the state, make periodic public disclosures on sales, marketing, pricing, clinical trials andother activities, and/or register their sales representatives, as well as to prohibit pharmacies and other healthcare entities from providing certain physicianprescribing data to pharmaceutical and biotechnology companies for use in sales and marketing, and to prohibit certain other sales and marketing practices.All of our activities are potentially subject to federal and state consumer protection and unfair competition laws.If our operations are found to be in violation of any of the federal and state healthcare laws described above or any other governmental regulationsthat apply to us, we may be subject to penalties, including without limitation, civil, criminal and/or administrative penalties, damages, fines, disgorgement,exclusion from participation in government programs, such as Medicare and Medicaid, injunctions, private “qui tam” actions brought by individualwhistleblowers in the name of the government, or refusal to allow us to enter into government contracts, contractual damages, reputational harm,administrative burdens, diminished profits and future earnings, and the curtailment or restructuring of our operations, any of which could adversely affect ourability to operate our business and our results of operations.Coverage, pricing and reimbursementSignificant uncertainty exists as to the coverage and reimbursement status of any product candidates for which we obtain regulatory approval. In theUnited States and markets in other countries, sales of any products for which we receive regulatory approval for commercial sale will depend, in part, on theextent to which third party payors provide coverage, and establish adequate reimbursement levels for such products. In the United States, third party payorsinclude federal and state healthcare programs, private managed care providers, health insurers and other organizations. The process for determining whether athird party payor will provide coverage for a product may be separate from the process for setting the price of a product or for establishing the reimbursementrate that such a payor will pay for the product. Third party payors may limit coverage to specific products on an approved list, also known as a formulary,which might not include all of the FDA-approved products for a particular indication. Third party payors are increasingly challenging the price, examiningthe medical necessity and reviewing the cost-effectiveness of medical products, therapies and services, in addition to questioning their safety and efficacy.We may need to conduct expensive pharmacoeconomic studies in order to demonstrate the medical necessity and cost-effectiveness of its products, inaddition to the costs required to obtain the FDA approvals. Our product candidates may not be considered medically necessary or cost-effective. A payor’sdecision to provide coverage for a product does not imply that an adequate reimbursement rate will be approved. Further, one payor’s determination toprovide coverage for a product does not assure that other payors will also provide coverage for the product. Adequate third16party reimbursement may not be available to enable us to maintain price levels sufficient to realize an appropriate return on its investment in productdevelopment.Different pricing and reimbursement schemes exist in other countries. In the EU, governments influence the price of pharmaceutical products throughtheir pricing and reimbursement rules and control of national health care systems that fund a large part of the cost of those products to consumers. Somejurisdictions operate positive and negative list systems under which products may only be marketed once a reimbursement price has been agreed. To obtainreimbursement or pricing approval, some of these countries may require the completion of clinical trials that compare the cost effectiveness of a particularproduct candidate to currently available therapies. Other member states allow companies to fix their own prices for medicines but monitor and controlcompany profits. The downward pressure on health care costs has become intense. As a result, increasingly high barriers are being erected to the entry of newproducts. In addition, in some countries, cross-border imports from low-priced markets exert a commercial pressure on pricing within a country.The marketability of any product candidates for which we receive regulatory approval for commercial sale may suffer if the government and thirdparty payors fail to provide adequate coverage and reimbursement. In addition, emphasis on managed care in the United States has increased and we expectwill continue to increase the pressure on healthcare pricing. Coverage policies and third party reimbursement rates may change at any time. Even if favorablecoverage and reimbursement status is attained for one or more products for which we receive regulatory approval, less favorable coverage policies andreimbursement rates may be implemented in the future.Healthcare reformIn March 2010, President Obama enacted the ACA, which has the potential to substantially change healthcare financing and delivery by bothgovernmental and private insurers, and significantly impacts the pharmaceutical and biotechnology industry.Among the ACA provisions of importance to the pharmaceutical industries, in addition to those otherwise described above, are the following: •an annual, nondeductible fee on any entity that manufactures or imports certain specified branded prescription drugs apportioned amongthese entities according to their market share in some government healthcare programs that began in 2011; •an increase in the statutory minimum rebates a manufacturer must pay under the Medicaid Drug Rebate Program, retroactive to January 1,2010, to 23.1% and 13% of the average manufacturer price for most branded and generic drugs, respectively and capped the total rebateamount for innovator drugs at 100% of the Average Manufacturer Price; •a new Medicare Part D coverage gap discount program, in which manufacturers must agree to offer 50% point-of-sale discounts offnegotiated prices of applicable brand drugs to eligible beneficiaries during their coverage gap period, as a condition for the manufacturers’outpatient drugs to be covered under Medicare Part D; •extension of manufacturers’ Medicaid rebate liability to covered drugs dispensed to individuals who are enrolled in Medicaid managed careorganizations; •expansion of eligibility criteria for Medicaid programs by, among other things, allowing states to offer Medicaid coverage to additionalindividuals beginning in 2014 and by adding new mandatory eligibility categories for individuals with income at or below 133% of thefederal poverty level, thereby potentially increasing manufacturers’ Medicaid rebate liability; •expansion of the entities eligible for discounts under the Public Health Service pharmaceutical pricing program; •a new Patient-Centered Outcomes Research Institute to oversee, identify priorities in, and conduct comparative clinical effectivenessresearch, along with funding for such research;17 •expansion of healthcare fraud and abuse laws, including the False Claims Act and the Anti-Kickback Statute, new government investigativepowers, and enhanced penalties for noncompliance; •a new methodology by which rebates owed by manufacturers under the Medicaid Drug Rebate Program are calculated for drugs that areinhaled, infused, instilled, implanted, or injected; •requirements to report certain financial arrangements with physicians and teaching hospitals; and •a requirement to annually report certain information regarding drug samples that manufacturers and distributors provide to physicians.The current U.S. presidential administration and Congress have sought, and we expect will continue to seek, to modify, repeal, or otherwiseinvalidate all, or certain provisions of, the ACA. Since January 2017, the current U.S. presidential administration has issued two executive orders and otherdirectives designed to delay the implementation of certain provisions of the ACA or otherwise circumvent some of the requirements for health insurancemandated by the ACA. For example, on October 12, 2017, the current U.S. presidential administration issued an executive order that expands the use ofassociation health plans and allows anyone to purchase short-term health plans that provide temporary, limited insurance. This executive order also calls forthe halt of federal payments to health insurers for cost-sharing reductions previously available to lower-income Americans to afford coverage. There is stilluncertainty with respect to the impact this executive order could have on coverage and reimbursement for healthcare items and services covered by plans thatwere authorized by the ACA. Concurrently, Congress has considered legislation that would repeal or repeal and replace all or part of the ACA. WhileCongress has not passed comprehensive repeal legislation, two bills affecting the implementation of certain taxes under the ACA have been signed into law.The Tax Cuts and Jobs Act of 2017, among other things, includes a provision repealing, effective January 1, 2019, the tax-based shared responsibilitypayment imposed by the ACA on certain individuals who fail to maintain qualifying health coverage for all or part of a year that is commonly referred to asthe “individual mandate”. Additionally, on January 22, 2018, the current U.S. presidential administration signed a continuing resolution on appropriationsfor fiscal year 2018 that delayed the implementation of certain ACA-mandated fees, including the so-called “Cadillac” tax on certain high cost employer-sponsored insurance plans, the annual fee imposed on certain health insurance providers based on market share, and the medical device excise tax on non-exempt medical devices. Further, the Bipartisan Budget Act of 2018, or the BBA, among other things, amends the ACA, effective January 1, 2019, to increasefrom 50 percent to 70 percent the point-of-sale discount that is owed by pharmaceutical manufacturers who participate in Medicare Part D and to close thecoverage gap in most Medicare drug plans, commonly referred to as the “donut hole”. There is still uncertainty with respect to the impact the current U.S.presidential administration and the Congress may have, if any, and any changes will likely take time to unfold, and could have an impact on coverage andreimbursement for healthcare items and services covered by plans that were authorized by the ACA. However, we cannot predict the ultimate content, timingor effect of any healthcare reform legislation or the impact of potential legislation on us.In addition, other legislative changes have been proposed and adopted in the United States since the ACA was enacted. For example, in August 2011,the President signed into law the Budget Control Act of 2011, which, among other things, created the Joint Select Committee on Deficit Reduction torecommend to Congress proposals in spending reductions. The Joint Select Committee on Deficit Reduction did not achieve a targeted deficit reduction of atleast $1.2 trillion for fiscal years 2012 through 2021, triggering the legislation’s automatic reduction to several government programs. This includesaggregate reductions to Medicare payments to providers of up to 2% per fiscal year, which went into effect beginning on April 1, 2013 and will stay in effectthrough 2025 unless additional Congressional action is taken. Additionally, in January 2013, the American Taxpayer Relief Act of 2012 was signed into law,which, among other things, reduced Medicare payments to several providers, including hospitals and imaging centers. These new laws may result inadditional reductions in Medicare and other healthcare funding, which could have a material adverse effect on customers for our products, if approved, and,accordingly, our financial operations.The Foreign Corrupt Practices ActThe Foreign Corrupt Practices Act (“FCPA”) prohibits any U.S. individual or business from paying, offering, or authorizing payment or offering ofanything of value, directly or indirectly, to any foreign official, political party or candidate for the purpose of influencing any act or decision of the foreignentity in order to assist the individual or18business in obtaining or retaining business. The FCPA also obligates companies whose securities are listed in the United States to comply with accountingprovisions requiring us to maintain books and records that accurately and fairly reflect all transactions of the corporation, including internationalsubsidiaries, and to devise and maintain an adequate system of internal accounting controls for international operations.Additional regulationIn addition to the foregoing, state and federal laws regarding environmental protection and hazardous substances, including the Occupational Safetyand Health Act, the Resource Conservancy and Recovery Act and the Toxic Substances Control Act, affect our business. These and other laws govern the use,handling and disposal of various biological, chemical and radioactive substances used in, and wastes generated by, our operations. If our operations result incontamination of the environment or expose individuals to hazardous substances, we could be liable for damages and governmental fines. We believe that weare in material compliance with applicable environmental laws and that continued compliance therewith will not have a material adverse effect on ourbusiness. We cannot predict, however, how changes in these laws may affect our future operations.Europe / rest of world government regulationIn addition to regulations in the United States, we will be subject to a variety of regulations in other jurisdictions governing, among other things,clinical trials and any commercial sales and distribution of our products. Whether or not we obtain FDA approval of a product, we must obtain the requisiteapprovals from regulatory authorities in foreign countries prior to the commencement of clinical trials or marketing of the product in those countries. Certaincountries outside of the United States have a similar process that requires the submission of a clinical trial application much like the IND prior to thecommencement of human clinical trials. In the European Union, for example, a clinical trial application must be submitted to each country’s national healthauthority and an independent ethics committee, much like the FDA and IRB, respectively. Once the clinical trial application is approved in accordance witha country’s requirements, clinical trial development may proceed. The requirements and process governing the conduct of clinical trials, product licensing,pricing and reimbursement vary from country to country in the European Union. In all cases, the clinical trials are conducted in accordance with GCP and theapplicable regulatory requirements and the ethical principles that have their origin in the Declaration of Helsinki.To obtain regulatory approval of a drug product under European Union regulatory systems, we must submit a marketing authorization application(MAA). The documentation submitted to the FDA in support of an NDA in the United States is almost identical to that required in the European Union, withthe exception of, among other things, country-specific document requirements. For other countries outside of the European Union, such as countries inEastern Europe, Latin America or Asia, the requirements governing the conduct of clinical trials, product licensing, pricing and reimbursement vary fromcountry to country. In all cases, again, the clinical trials are conducted in accordance with GCP and the applicable regulatory requirements and the ethicalprinciples that have their origin in the Declaration of Helsinki.If we or our potential collaborators fail to comply with applicable foreign regulatory requirements, we may be subject to, among other things, fines,suspension or withdrawal of regulatory approvals, product recalls, seizure of products, operating restrictions and criminal prosecution.Other regulationsWe are subject to numerous federal, state and local laws relating to such matters as safe working conditions, manufacturing practices, environmentalprotection, fire hazard control, and disposal of hazardous or potentially hazardous substances. We may incur significant costs to comply with such laws andregulations now or in the future.EmployeesAs of April 30, 2019, we had a total of 45 full-time employees, of whom 18 were located in the United States and 27 were located in the UnitedKingdom. None of our employees are represented by a labor union or covered by19a collective bargaining agreement. We have not experienced any work stoppages and consider our relations with employees to be good.Corporate InformationOur principal executive offices are located at 55 Cambridge Parkway, Ste 901E, Cambridge, MA 02142, and our telephone number is (857) 999-0075. Our website address is www.kalvista.com. The information contained on, or that can be accessed through, our website is not a part of this report. Wehave included our website address in this report solely as an inactive textual reference.Financial InformationWe manage our operations and allocate resources as a single reporting segment. Financial information regarding our operations, assets and liabilities,including our net loss for the years ended April 30, 2019, 2018 and 2017 and our total assets as of April 30, 2019 and 2018, is included in our ConsolidatedFinancial Statements in Item 8 of this Annual Report.Available InformationWe file annual, quarterly, and current reports, proxy statements, and other documents with the Securities and Exchange Commission (“SEC”) underthe Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are available on our corporate website at www.kalvista.com. Also, the SECmaintains an Internet website that contains reports, proxy and information statements, and other information regarding issuers, including us, that fileelectronically with the SEC. The public can obtain any documents that we file with the SEC at www.sec.gov. The information posted on or accessiblethrough these websites are not incorporated into this filing.Item 1A. Risk FactorsInvesting in our common stock involves a high degree of risk. You should consider carefully the risks and uncertainties described below, togetherwith all of the other information in this Annual Report on Form 10-K, including the consolidated financial statements, the notes thereto and the sectionentitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere in this Annual Report on Form 10-K before deciding whether to invest in shares of our common stock. The risks and uncertainties described below are not the only ones we face. Additionalrisks and uncertainties that we are unaware of or that we deem immaterial may also become important factors that adversely affect our business. If any ofthe following risks actually occur, our business, financial condition, results of operations and future prospects could be materially and adversely affected.In that event, the market price of our stock could decline, and you could lose part or all of your investment.Risks Related to Our BusinessWe have incurred significant losses since our inception. We expect to incur losses over the next several years and may never achieve or maintainprofitability. Since inception, we have incurred significant operating losses as we focused on our discovery efforts and developing our product candidates. Weexpect that it will be many years, if ever, before we have a product candidate ready for commercialization. To date, we have financed our operations primarilythrough sales of our stock, the Merck Agreement and associated private placement, and through the share purchase transaction with Carbylan. We expect tocontinue to incur significant expenses and increasing operating losses for the foreseeable future. We anticipate that our expenses will increase substantially ifand as we: •continue clinical development of our current product candidates; •seek to identify additional product candidates; •acquire or in-license other products and technologies or enter into collaboration arrangements with regards to product discovery;20 •initiate clinical trials for additional product candidates; •seek marketing approvals for our product candidates that successfully complete clinical trials; •establish a sales, marketing and distribution infrastructure to commercialize any products for which we may obtain marketing approval; •maintain, expand and protect our intellectual property portfolio; •hire additional personnel; •add operational, financial and management information systems and personnel, including personnel to support our product development andplanned future commercialization efforts; and •continue to incur increased costs as a result of operating as a public company. To become and remain profitable, we must develop and eventually commercialize a product or products with significant market potential. This willrequire us to be successful in a range of challenging activities, including completing clinical trials of our product candidates, obtaining marketing approvalfor these product candidates and manufacturing, marketing and selling those products for which we may obtain marketing approval. We may never succeedin these activities and, even if we do, we may never generate revenues that are significant or large enough to achieve profitability. If we do achieveprofitability, we may not be able to sustain or increase profitability on a quarterly or annual basis. Our failure to become and remain profitable woulddecrease the value of our business and could impair our ability to raise capital, maintain our discovery and preclinical development efforts, expand ourbusiness or continue our operations and may require us to raise additional capital that may dilute the ownership interest of common stockholders. A declinein the value of our business could also cause stockholders to lose all or part of their investment.Our short operating history may make it difficult to evaluate the success of our business to date and to assess our future viability.We are an early stage clinical development company and our operations to date have been limited to organizing and staffing, business planning,raising capital, acquiring and developing the technology, identifying potential product candidates, undertaking preclinical studies and early stage clinicalstudies of our most advanced product candidates, KVD001 and KVD900, which are currently in Phase 2 clinical trials. We have not yet demonstrated ourability to successfully complete large-scale, pivotal clinical trials, obtain marketing approvals, manufacture a commercial scale product or arrange for a thirdparty to do so on our behalf, or conduct sales and marketing activities necessary for successful product commercialization. Substantial time is required todevelop a new medicine from the time it is discovered to when it is available for treating patients. Consequently, any predictions made about our futuresuccess or viability based on our short operating history to date may not be as accurate as they could be if we had a longer operating history. In addition, as a new business, we may encounter unforeseen expenses, difficulties, complications, delays and other known and unknown factors. Wewill need to transition from a company with a research focus to a company capable of supporting commercial activities. We may not be successful in such atransition.We will need substantial additional funding. If we are unable to raise capital when needed, we may need to delay, reduce or eliminate our productdevelopment programs or commercialization efforts.We expect our expenses to increase in parallel with our ongoing activities, particularly as we continue our discovery and preclinical developmentcollaborations to identify new clinical candidates and initiate clinical trials of, and seek marketing approval for, our product candidates. In addition, if weobtain marketing approval for any of our product candidates, we expect to incur significant commercialization expenses related to product sales, marketing,manufacturing and distribution. Accordingly, we will need to obtain substantial additional funding for our continuing operations. If we are unable to raisecapital when needed or on attractive terms, we may be forced to delay, reduce or eliminate our discovery and preclinical development programs or any futurecommercialization efforts. 21Raising additional capital may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or productcandidates. Until such time, if ever, as we can generate substantial product revenues, we expect to finance our cash needs through a combination of equityofferings and debt financings. We do not have any committed external source of funds. To the extent that we raise additional capital through the sale ofequity or convertible debt securities, the ownership interest of common stockholders will be diluted, and the terms of these securities may include liquidationor other preferences that adversely affect the rights of common stockholders. Debt financing and preferred equity financing, if available, may involveagreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expendituresor declaring dividends. Risks Related to the Discovery and Development of Our Product Candidates We are very early in our development efforts. If we or our collaborators are unable to successfully develop and commercialize one or more of ourcompounds, or if we experience significant delays in doing so, the business will be materially harmed. We currently do not have any products that have gained regulatory approval. We have invested substantially all of our efforts and financial resourcesin identifying potential drug candidates and funding our preclinical and clinical studies. Our ability to generate product revenues, which we do not expectwill occur for many years, if ever, will depend heavily on the successful development and eventual commercialization of our early stage product candidates.We have not yet demonstrated an ability to successfully overcome many of the risks and uncertainties frequently encountered by companies in newand rapidly evolving fields, particularly in the biopharmaceutical area. For example, to execute our business plan, we will need to successfully: •execute ongoing clinical development activities; •move other product candidates into development; •obtain required regulatory approvals for the development and commercialization of one or more of our product candidates; •maintain, leverage and expand our intellectual property portfolio; •build and maintain robust sales, distribution and marketing capabilities, either on our own or in collaboration with strategic partners; •gain market acceptance for one or more of our product candidates; •develop and maintain any strategic relationships we elect to enter into, including the agreement with Merck; and •manage our spending as costs and expenses increase due to drug discovery, preclinical development, clinical trials, regulatory approvals andcommercialization. If we are unsuccessful in accomplishing these objectives, we may not be able to successfully develop and commercialize KVD001, KVD900 or otherproduct candidates, and our business will suffer.Clinical drug development involves a lengthy and expensive process, with an uncertain outcome. We may incur additional costs or experience delays incompleting, or ultimately be unable to complete, the development and commercialization of our product candidates. We have only recently commenced clinical development of our product candidates and the risk of failure for all of our product candidates is high.Before obtaining marketing approval from regulatory authorities for the sale of any product candidate, we must complete preclinical development and thenconduct extensive clinical trials to demonstrate the safety and efficacy of its product candidates in humans. Clinical testing is expensive, difficult to designand implement and can take many years to complete, and its outcome is inherently uncertain. Failure can occur at any time during the clinical trial process.Further, the results of preclinical studies and early clinical trials of22our product candidates may not be predictive of the results of later-stage clinical trials, and interim results of a clinical trial do not necessarily predict finalresults. Moreover, preclinical and clinical data are often susceptible to varying interpretations and analyses, and many companies that have believed theirproduct candidates performed satisfactorily in preclinical studies and clinical trials have nonetheless failed to obtain marketing approval of their products. Itis impossible to predict when or if any of our product candidates will prove effective or safe in humans or will receive regulatory approval. We may experience delays in our clinical trials and we do not know whether planned clinical trials will begin or enroll subjects on time, need to beredesigned or be completed on schedule, if at all. There can be no assurance that the Medicines & Healthcare products Regulatory Agency (the “MHRA”), theU.K. regulatory authority, the European Medicines Agency (the “EMA”) or the U.S. Food and Drug Administration (the “FDA”) will not put any of ourproduct candidates on clinical hold in the future. We may experience numerous unforeseen events during, or as a result of, clinical trials that could delay orprevent our ability to receive marketing approval or commercialize our product candidates. Clinical trials may be delayed, suspended or prematurelyterminated for a variety of reasons, such as: •delay or failure in reaching agreement with the MHRA, EMA, FDA or a comparable foreign regulatory authority on a trial design that wewant to execute; •delay or failure in obtaining authorization to commence a trial or inability to comply with conditions imposed by a regulatory authorityregarding the scope or design of a clinical study; •delays in reaching, or failure to reach, agreement on acceptable clinical trial contracts or clinical trial protocols with prospective trial sites; •inability, delay, or failure in identifying and maintaining a sufficient number of trial sites, many of which may already be engaged in otherclinical programs; •delay or failure in recruiting and enrolling suitable subjects to participate in a trial; •delay or failure in having subjects complete a trial or return for post-treatment follow-up; •clinical sites and investigators deviating from trial protocol, failing to conduct the trial in accordance with regulatory requirements, ordropping out of a trial; •the withdrawal of the United Kingdom from the European Union could materially impact the regulatory regime with respect to clinical trialsin the United Kingdom or the European Union; •lack of adequate funding to continue the clinical trial, including the incurrence of unforeseen costs due to enrollment delays, requirements toconduct additional clinical studies and increased expenses associated with the services of its clinical research organizations (“CROs”) andother third parties; •clinical trials of our product candidates may produce negative or inconclusive results, and we may decide, or regulators may require us toconduct additional clinical trials or abandon product development programs; •the number of patients required for clinical trials of our product candidates may be larger than we anticipate, enrollment in these clinicaltrials may be slower than we anticipate or participants may drop out of these clinical trials at a higher rate than we anticipate; •we may experience delays or difficulties in the enrollment of patients that our product candidates are designed to target; •our third party contractors may fail to comply with regulatory requirements or meet their contractual obligations to us in a timely manner, orat all; •we may have difficulty partnering with experienced CROs that can identify patients that our product candidates are designed to target andrun our clinical trials effectively; •regulators or institutional review boards (“IRBs”) may require that we or our investigators suspend or terminate clinical research for variousreasons, including noncompliance with regulatory requirements or a finding that the participants are being exposed to unacceptable healthrisks; 23 •the cost of clinical trials of our product candidates may be greater than we anticipate; •the supply or quality of our product candidates or other materials necessary to conduct clinical trials of our product candidates may beinsufficient or inadequate; or •there may be changes in governmental regulations or administrative actions. If we are required to conduct additional clinical trials or other testing of our product candidates beyond those that we currently contemplate, if we areunable to successfully complete clinical trials of our product candidates or other testing, if the results of these trials or tests are not positive or are onlymodestly positive or if there are safety concerns, we may: •be delayed in obtaining marketing approval for our product candidates; •not obtain marketing approval at all; •obtain approval for indications or patient populations that are not as broad as intended or desired; •obtain approval with labeling that includes significant use or distribution restrictions or safety warnings that would reduce the potentialmarket for our products or inhibit our ability to successfully commercialize our products; •be subject to additional post-marketing restrictions and/or testing requirements; or •have the product removed from the market after obtaining marketing approval.Our product development costs will also increase if we experience delays in testing or marketing approvals. We do not know whether any of ourpreclinical studies or clinical trials will need to be restructured or will be completed on schedule, or at all. Significant preclinical or clinical trial delays alsocould shorten any periods during which we may have the exclusive right to commercialize our product candidates or allow our competitors to bring productsto market before we do and impair our ability to successfully commercialize our product candidates and may harm our business and results of operations.If we experience delays or difficulties in the enrollment of patients in clinical trials, our receipt of necessary regulatory approvals could be delayed orprevented and expenses for development of our product candidates could increase.We may not be able to initiate or continue clinical trials for our product candidates if we are unable to locate and enroll a sufficient number ofeligible patients to participate in these trials to demonstrate safety and efficacy. We are conducting clinical trials of KVD001, KVD900 and KVD824, and wedo not know whether planned or ongoing clinical trials will enroll subjects in a timely fashion, require redesign of essential trial elements or be completed onour projected schedule. In particular, because we are focused on patients with HAE, which is a rare disease, our ability to enroll eligible patients in trials maybe limited or may result in slower enrollment than we anticipate. In addition, competitors have ongoing clinical trials for product candidates that treat thesame indications as our product candidates, and patients who would otherwise be eligible for our clinical trials may instead enroll in clinical trials of ourcompetitors’ product candidates. Our inability to enroll a sufficient number of patients for our clinical trials would result in significant delays and couldrequire us to abandon one or more clinical trials altogether. Patient enrollment is affected by other factors including: •the eligibility criteria for the study in question; •the perceived risks and benefits of the product candidate under study; •the efforts to facilitate timely enrollment in clinical trials; •the inability to identify and maintain a sufficient number of trial sites, many of which may already be engaged in other clinical trialprograms, including some that may be for the same disease indication; •the patient referral practices of physicians; 24 •the proximity and availability of clinical trial sites for prospective patients; •ambiguous or negative interim results of our clinical trials, or results that are inconsistent with earlier results; •feedback from the MHRA, EMA, FDA, IRBs, data safety monitoring boards, or a comparable foreign regulatory authority, or results fromearlier stage or concurrent preclinical and clinical studies, that might require modifications to the protocol; •decisions by the MHRA, EMA, FDA, IRBs, a comparable foreign regulatory authority or us, or recommendations by data safety monitoringboards, to suspend or terminate clinical trials at any time for safety issues or for any other reason; and •unacceptable risk-benefit profile or unforeseen safety issues or adverse effects. Enrollment delays in our clinical trials may result in increased development costs for our product candidates, which would cause the value of thecompany to decline and limit our ability to obtain additional financing.If we do not achieve our projected development goals in the timeframes we announce and expect, the commercialization of our products may be delayedand, as a result, our stock price may decline.From time to time, we estimate the timing of the anticipated accomplishment of various scientific, clinical, regulatory and other product developmentgoals, which we sometimes refer to as milestones. These milestones may include the commencement or completion of scientific studies and clinical trials andthe submission of regulatory filings. From time to time, we may publicly announce the expected timing of some of these milestones. All of these milestonesare and will be based on numerous assumptions. The actual timing of these milestones can vary dramatically compared to our estimates, in some cases forreasons beyond our control. If we do not meet these milestones as publicly announced, or at all, the commercialization of our products may be delayed ornever achieved and, as a result, our stock price may decline.If serious adverse events or unacceptable side effects are identified during the development of our product candidates, we may need to abandon or limit thedevelopment of some of our product candidates. If our product candidates are associated with undesirable effects in preclinical or clinical trials or have characteristics that are unexpected, we mayneed to interrupt, delay or abandon their development or limit development to more narrow uses or subpopulations in which the undesirable side effects orother characteristics are less prevalent, less severe or more acceptable from a risk-benefit perspective. There are risks inherent in the intravitreal administrationof drugs like KVD001 which can cause injury to the eye and other complications. Our HAE programs, including KVD900, are in the early stage of clinicaltesting and we have not yet determined what, if any, significant side effects may occur from dosing. Additional or more severe side effects may be identifiedfor all our programs through further clinical studies. These or other drug-related side effects could affect patient recruitment or the ability of enrolled subjectsto complete the trial or result in potential product liability claims. Any of these occurrences may harm our business, financial condition and prospectssignificantly.Risks Related to Regulatory Approval of Our Product Candidates and Other Legal Compliance Matters If we are not able to obtain, or if there are delays in obtaining, required regulatory approvals, we will not be able to commercialize our productcandidates, and our ability to generate revenue will be materially impaired. Our product candidates must be approved by the FDA pursuant to a new drug application (“NDA”) in the United States and by the EMA and similarregulatory authorities outside the United States prior to commercialization. The process of obtaining marketing approvals, both in the United States andabroad, is expensive and takes many years, if approval is obtained at all, and can vary substantially based upon a variety of factors, including the type,complexity and novelty of the product candidates involved. Failure to obtain marketing approval for a product candidate will prevent us fromcommercializing the product candidate. We have not received approval to market any of our product candidates from regulatory authorities in anyjurisdiction. We have no experience in filing and supporting the applications necessary to gain marketing approvals and expect to rely on third party CROsto assist us in this process. Securing marketing approval requires the submission of extensive preclinical and clinical25data and supporting information to regulatory authorities for each therapeutic indication to establish the product candidate’s safety and efficacy. Securingmarketing approval also requires the submission of information about the product manufacturing process to, and inspection of manufacturing facilities by,the regulatory authorities. Our product candidates may not be effective, may be only moderately effective or may prove to have undesirable or unintendedside effects, toxicities or other characteristics that may preclude us from obtaining marketing approval or prevent or limit commercial use. Regulatoryauthorities have substantial discretion in the approval process and may refuse to accept any application or may decide that our data are insufficient forapproval and require additional preclinical, clinical or other studies. In addition, varying interpretations of the data obtained from preclinical and clinicaltesting could delay, limit or prevent marketing approval of a product candidate. Changes in marketing approval policies during the development period,changes in or the enactment of additional statutes or regulations, or changes in regulatory review for each submitted product application, may also causedelays in or prevent the approval of an application. Additionally, on June 23, 2016, the electorate in the United Kingdom voted in favor of leaving the European Union, commonly referred to as Brexit.On March 29, 2017, the country formally notified the European Union of its intention to withdraw pursuant to Article 50 of the Lisbon Treaty. Since asignificant proportion of the regulatory framework in the United Kingdom is derived from European Union directives and regulations, the withdrawal of theUnited Kingdom from the European Union could materially impact the regulatory regime with respect to the approval of KVD001, KVD900 or any of ourother product candidates in the United Kingdom or the European Union. Any delay in obtaining, or an inability to obtain, any marketing approvals, as aresult of Brexit or otherwise, would prevent us from commercializing KVD001, KVD900 or any of our other product candidates in the United Kingdomand/or the European Union and restrict our ability to generate revenue and achieve and sustain profitability. If any of these outcomes occur, we may be forcedto restrict or delay efforts to seek regulatory approval in the United Kingdom and/or European Union for KVD001, KVD900 or any of our other productcandidates, which could significantly and materially harm our business.Any marketing approval we ultimately obtain may be limited or subject to restrictions or post-approval commitments that render the approvedproduct not commercially viable. If we experience delays in obtaining approval or if we fail to obtain approval of our product candidates, the commercial prospects for our productcandidates may be harmed and our ability to generate revenues will be materially impaired.We may seek orphan drug exclusivity for some of our product candidates, and we may be unsuccessful. Regulatory authorities in some jurisdictions, including the United States and Europe, may designate drugs for relatively small patient populations asorphan drugs. Under the Orphan Drug Act, the FDA may designate a product as an orphan drug if it is a drug intended to treat a rare disease or condition,which is generally defined as a disease with a patient population of fewer than 200,000 individuals in the United States. Generally, if a product with an orphan drug designation subsequently receives the first marketing approval for the indication for which it has suchdesignation, the product is entitled to a period of marketing exclusivity, which precludes the EMA or the FDA from approving another marketing applicationfor the same drug for the same indication during the period of exclusivity. The applicable period is seven years in the United States and ten years in Europe.The European exclusivity period can be reduced to six years if a drug no longer meets the criteria for orphan drug designation or if the drug is sufficientlyprofitable so that market exclusivity is no longer justified. Orphan drug exclusivity may be lost if the FDA or EMA determines that the request fordesignation was materially defective, if the manufacturer is unable to assure sufficient quantity of the drug to meet the needs of patients with the rare diseaseor condition. Even if we obtain orphan drug exclusivity for a product candidate, that exclusivity may not effectively protect the product candidate fromcompetition because different drugs can be approved for the same condition. Even after an orphan drug is approved, the FDA can subsequently approve adifferent drug for the same condition if the FDA concludes that the later drug is clinically superior in that it is shown to be safer, more effective or makes amajor contribution to patient care.26A fast track designation by the FDA, even if granted for any of our product candidates, may not lead to a faster development or regulatory review orapproval process and does not increase the likelihood that our product candidates will receive marketing approval. We do not currently have fast track designation for any of our product candidates but may seek such designation. If a drug is intended for thetreatment of a serious or life-threatening condition and the drug demonstrates the potential to address unmet medical needs for this condition, the drugsponsor may apply for FDA fast track designation. The FDA has broad discretion whether or not to grant this designation. Even if we believe a particularproduct candidate is eligible for this designation, we cannot assure that the FDA would decide to grant it. Even if it does receive fast track designation, wemay not experience a faster development process, review or approval compared to conventional FDA procedures. The FDA may withdraw fast trackdesignation if it believes that the designation is no longer supported by data from our clinical development program. Many drugs that have received fasttrack designation have failed to obtain drug approval.A breakthrough therapy designation by the FDA, even if granted for any of our product candidates, may not lead to a faster development or regulatoryreview or approval process, and does not increase the likelihood that our product candidates will receive marketing approval. We do not currently have breakthrough therapy designation for any of our product candidates but may seek such designation. A breakthroughtherapy is defined as a drug that is intended, alone or in combination with one or more other drugs, to treat a serious or life-threatening disease or condition,and preliminary clinical evidence indicates that the drug may demonstrate substantial improvement over existing therapies on one or more clinicallysignificant endpoints, such as substantial treatment effects observed early in clinical development. For drugs that have been designated as breakthroughtherapies, interaction and communication between the FDA and the sponsor can help to identify the most efficient path for development. Designation as a breakthrough therapy is within the discretion of the FDA. Accordingly, even if we believe, after completing early clinical trials, thatone of our product candidates meets the criteria for designation as a breakthrough therapy, the FDA may disagree and instead determine not to make suchdesignation. In any event, the receipt of a breakthrough therapy designation for a product candidate may not result in a faster development process, review orapproval compared to drugs considered for approval under conventional FDA procedures and does not assure ultimate approval by the FDA. In addition,even if one or more of our product candidates qualify as breakthrough therapies, the FDA may later decide that such product candidates no longer meet theconditions for qualification.Failure to obtain marketing approval in international jurisdictions would prevent our product candidates from being marketed abroad. In order to market and sell our products in the European Union and many other jurisdictions, we or our third party collaborators must obtain separatemarketing approvals and comply with numerous and varying regulatory requirements. The approval procedure varies among countries and can involveadditional testing. The time required to obtain approval may differ substantially from that required to obtain MHRA or FDA approval. The regulatoryapproval process outside the United Kingdom and United States generally includes all of the risks associated with obtaining, respectively, MHRA or FDAapproval. In addition, in many countries outside the United States, it is required that the product be approved for reimbursement before the product can beapproved for sale in that country. We, or these third parties, may not obtain approvals from regulatory authorities outside the United States on a timely basis,if at all. Approval by the MHRA or FDA does not ensure approval by regulatory authorities in other countries or jurisdictions, and approval by one regulatoryauthority outside the United States does not ensure approval by regulatory authorities in other countries or jurisdictions or by the FDA. We may not be ableto file for marketing approvals and may not receive necessary approvals to commercialize our products in any market.27Any product candidate for which we obtain marketing approval will be subject to extensive post-marketing regulatory requirements and could be subjectto post-marketing restrictions or withdrawal from the market, and we may be subject to penalties if we fail to comply with regulatory requirements or if weexperience unanticipated problems with our products, when and if any of them are approved. Our product candidates and the activities associated with their development and commercialization, including their testing, manufacture,recordkeeping, labeling, storage, approval, advertising, promotion, sale and distribution, are subject to comprehensive regulation by the MHRA, FDA andother regulatory authorities. In the United States, these requirements include submissions of safety and other post-marketing information and reports,registration and listing requirements, current good manufacturing practices (“cGMP”) requirements relating to manufacturing, quality control, qualityassurance and corresponding maintenance of records and documents, including periodic inspections by the FDA and other regulatory authority, requirementsregarding the distribution of samples to physicians and recordkeeping. The FDA, or other regulatory authorities, may also impose requirements for costly post-marketing studies or clinical trials and surveillance to monitorthe safety or efficacy of the product. The FDA closely regulates the post-approval marketing and promotion of drugs to ensure drugs are marketed only for theapproved indications and in accordance with the provisions of the approved labeling. The FDA imposes stringent restrictions on manufacturers’communications regarding use of their products and if we promote our products beyond their approved indications, we may be subject to enforcement actionfor off-label promotion. Violations of the Federal Food, Drug, and Cosmetic Act relating to the promotion of prescription drugs may lead to investigationsalleging violations of federal and state health care fraud and abuse laws, as well as state consumer protection laws. In addition, later discovery of previously unknown adverse events or other problems with our products, manufacturers or manufacturing processes, orfailure to comply with regulatory requirements, may yield various results, including: •restrictions on such products, manufacturers or manufacturing processes; •restrictions on the labeling or marketing of a product; •restrictions on product distribution or use; •requirements to conduct post-marketing studies or clinical trials; •warning or untitled letters; •withdrawal of the products from the market; •refusal to approve pending applications or supplements to approved applications that we submit; •recall of products; •fines, restitution or disgorgement of profits or revenues; •suspension or withdrawal of marketing approvals; •refusal to permit the import or export of our products; •product seizure; or •injunctions or the imposition of civil or criminal penalties. Non-compliance with European Union requirements regarding safety monitoring or pharmacovigilance, and with requirements related to thedevelopment of products for the pediatric population, can also result in significant financial penalties. Similarly, failure to comply with the EuropeanUnion’s requirements regarding the protection of personal information can also lead to significant penalties and sanctions.28Recently enacted and future legislation may increase the difficulty and cost for us to obtain marketing approval of and commercialize our productcandidates and affect the prices we may obtain. In the United States and some foreign jurisdictions, there have been a number of legislative and regulatory changes and proposed changes regardingthe healthcare system that could prevent or delay marketing approval of our product candidates, restrict or regulate post-approval activities and affect ourability to profitably sell any product candidates for which we obtain marketing approval. As an example, the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Affordability Reconciliation Act,(collectively, the “ACA”), was signed into law in 2010 but has continued to be the subject of legislative efforts at revision and repeal. The ACA included asubstantial number of major changes to the healthcare system that impact our business, and several other legislations since then, as well as ongoing efforts,have continued to create a complicated planning and operating environment for companies in our industry. We expect that the ACA, as well as other healthcare reform measures that may be adopted in the future, may result in more rigorous coverage criteriaand in additional downward pressure on the price that we receive for any approved product. Any reduction in reimbursement from Medicare or othergovernment programs may result in a similar reduction in payments from private payors. The implementation of cost containment measures or otherhealthcare reforms may prevent us from being able to generate revenue, attain profitability, or commercialize our products. Legislative and regulatory proposals have been made to expand post-approval requirements and restrict sales and promotional activities forpharmaceutical products. We cannot be sure whether additional legislative changes will be enacted, or whether the FDA regulations, guidance orinterpretations will be changed, or what the impact of such changes on the marketing approvals of our product candidates, if any, may be. In addition,increased scrutiny by the U.S. Congress of the FDA’s approval process may significantly delay or prevent marketing approval, as well as subject us to morestringent product labeling and post-marketing testing and other requirements.Governments outside the United States tend to impose strict price controls, which may adversely affect our revenues, if any. In some countries, particularly the countries of the European Union, the pricing of prescription pharmaceuticals is subject to governmental control. Inthese countries, pricing negotiations with governmental authorities can take considerable time after the receipt of marketing approval for a product. Toobtain reimbursement or pricing approval in some countries, we may be required to conduct a clinical trial that compares the cost-effectiveness of our productcandidate to other available therapies. If reimbursement of our products is unavailable or limited in scope or amount, or if pricing is set at unsatisfactorylevels, our business could be materially harmed.If we fail to comply with environmental, health and safety laws and regulations, we could become subject to fines or penalties or incur costs that couldharm our business. We are subject to numerous environmental, health and safety laws and regulations, including those governing laboratory procedures and thehandling, use, storage, treatment and disposal of hazardous materials and wastes. Our operations involve the use of hazardous and flammable materials,including chemicals and biological materials. Our operations also produce hazardous waste products. We generally contract with third parties for the disposalof these materials and wastes. We cannot eliminate the risk of contamination or injury from these materials. In the event of contamination or injury resultingfrom its use of hazardous materials, we could be held liable for any resulting damages, and any liability could exceed its resources. We also could incursignificant costs associated with civil or criminal fines and penalties for failure to comply with such laws and regulations. Although we maintain workers’ compensation insurance to cover us for costs and expenses we may incur due to injuries to our employees resultingfrom the use of hazardous materials, this insurance may not provide adequate coverage against potential liabilities. We do not maintain insurance forenvironmental liability or toxic tort claims that may be asserted against us in connection with the storage or disposal of biological, hazardous or radioactivematerials. 29In addition, we may incur substantial costs in order to comply with current or future environmental, health and safety laws and regulations. Thesecurrent or future laws and regulations may impair our discovery, preclinical development or production efforts. Our failure to comply with these laws andregulations also may result in substantial fines, penalties or other sanctions.Our employees may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements.As with all companies, we are exposed to the risk of employee fraud or other misconduct. Misconduct by employees could include intentionalfailures to comply with FDA regulations, provide accurate information to the FDA, comply with manufacturing standards we may establish, comply withfederal and state healthcare fraud and abuse laws and regulations, report financial information or data accurately or disclose unauthorized activities to us. Inparticular, sales, marketing and business arrangements in the healthcare industry are subject to extensive laws and regulations intended to prevent fraud,kickbacks, self-dealing and other abusive practices. These laws and regulations may restrict or prohibit a wide range of pricing, discounting, marketing andpromotion, sales commission, customer incentive programs and other business arrangements. Employee misconduct could also involve the improper use ofinformation obtained in the course of clinical trials, which could result in regulatory sanctions and serious harm to our reputation. It is not always possible toidentify and deter employee misconduct, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown orunmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to be in compliance withsuch laws or regulations. If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actionscould have a material and adverse effect on our business, financial condition, results of operations and prospects, including the imposition of significantcivil, criminal and administrative penalties, damages, fines, disgorgement, imprisonment, the curtailment or restructuring of our operations, loss of eligibilityto obtain approvals from the FDA, exclusion from participation in government contracting, healthcare reimbursement or other government programs,including Medicare and Medicaid, integrity oversight and reporting obligations, or reputational harm.Risks Related to the Commercialization of Our Product Candidates Even if any of our product candidates receives marketing approval, we may fail to achieve the degree of market acceptance by physicians, patients, thirdparty payors and others in the medical community necessary for commercial success. If any of our product candidates receives marketing approval, we may nonetheless fail to gain sufficient market acceptance by physicians, patients,third party payors and others in the medical community. In addition, physicians, patients and third party payors may prefer other novel products to ours. Ifour product candidates do not achieve an adequate level of acceptance, we may not generate significant product revenues and we may not become profitable.The degree of market acceptance of our product candidates, if approved for commercial sale, will depend on a number of factors, including: •the efficacy and safety and potential advantages and disadvantages compared to alternative treatments; •the ability to offer our products for sale at competitive prices; •the convenience and ease of administration compared to alternative treatments; •the willingness of the target patient population to try new therapies and of physicians to prescribe these therapies; •the strength of our marketing and distribution support; •the availability of third party coverage and adequate reimbursement, including patient cost-sharing programs such as copays anddeductibles; •the ability to develop or partner with third-party collaborators to develop companion diagnostics; •the prevalence and severity of any side effects; and •any restrictions on the use of our products together with other medications.30In addition, in order to commercialize any product candidates, we must build marketing, sales, distribution, managerial and other non-technicalcapabilities or make arrangements with third parties to perform these services, and we may not be successful in doing so. If we are unable to enter into sucharrangements when needed on acceptable terms or at all, we may not be able to successfully commercialize any of our product candidates that receiveregulatory approval or any such commercialization may experience delays or limitations. If we are not successful in commercializing our product candidates,either on our own or through collaborations with one or more third parties, our future product revenue will suffer and we may incur significant additionallosses.We face substantial competition, which may result in others discovering, developing or commercializing competing products before or more successfullythan we do.The development and commercialization of new drug products is highly competitive. We face competition with respect to our current productcandidates, and will face competition with respect to any product candidates that we may seek to develop or commercialize in the future, from majorpharmaceutical companies, specialty pharmaceutical companies and biotechnology companies worldwide. There are a number of large pharmaceutical andbiotechnology companies that currently market and sell products or are pursuing the development of products for the treatment of the disease indications forwhich we are developing our product candidates. Some of these competitive products and therapies are based on scientific approaches that are the same as orsimilar to our approach, and others are based on entirely different approaches. Potential competitors also include academic institutions, government agenciesand other public and private research organizations that conduct research, seek patent protection and establish collaborative arrangements for research,development, manufacturing and commercialization. Our commercial opportunity could be reduced or eliminated if our competitors develop and commercialize products that are safer, more effective,have fewer or less severe side effects, are more convenient or are less expensive than any products that we may develop. In addition, our ability to competemay be affected in many cases by insurers or other third party payors seeking to encourage the use of generic products. Generic products are expected tobecome available over the coming years, potentially creating pricing pressure. If our product candidates achieve marketing approval, we expect that they willbe priced at a significant premium over competitive generic products. Many of the companies against which we are competing or we may compete in the future have significantly greater financial resources and expertisein research and development, manufacturing, preclinical testing, conducting clinical trials, obtaining regulatory approvals and marketing approved productsthan we do. Mergers and acquisitions in the pharmaceutical and biotechnology industries may result in even more resources being concentrated among asmaller number of our competitors. Smaller and other early stage companies may also prove to be significant competitors, particularly through collaborativearrangements with large and established companies. These third parties compete with us in recruiting and retaining qualified scientific and managementpersonnel, establishing clinical trial sites and patient registration for clinical trials, as well as in acquiring technologies complementary to, or necessary for,our programs. The insurance coverage and reimbursement status of newly approved products is uncertain. Failure to obtain or maintain adequate coverage andreimbursement for new or current products could limit our ability to market those products and decrease our ability to generate revenue. The availability and extent of reimbursement by governmental and private payors is essential for most patients to be able to afford expensivetreatments. Sales of our product candidates will depend substantially, both domestically and abroad, on the extent to which the costs of our productcandidates will be paid by health maintenance, managed care, pharmacy benefit and similar healthcare management organizations, or reimbursed bygovernment health administration authorities, private health coverage insurers and other third party payors. If reimbursement is not available, or is availableonly to limited levels, we may not be able to successfully commercialize our product candidates. Even if coverage is provided, the approved reimbursementamount may not be high enough to allow us to establish or maintain pricing sufficient to realize a sufficient return on our investment. There is significant uncertainty related to the insurance coverage and reimbursement of newly approved products. In the United States, the principaldecisions about reimbursement for new medicines are typically made by31the Centers for Medicare & Medicaid Services (“CMS”), an agency within the U.S. Department of Health and Human Services, as CMS decides whether andto what extent a new medicine will be covered and reimbursed under Medicare. Private payors tend to follow CMS to a substantial degree. It is difficult topredict what CMS will decide with respect to reimbursement for fundamentally novel products such as ours, as there is no body of established practices andprecedents for these new products. Reimbursement agencies in Europe may be more conservative than CMS. Outside the United States, internationaloperations are generally subject to extensive governmental price controls and other market regulations, and we believe the increasing emphasis on cost-containment initiatives in Europe, Canada, and other countries has and will continue to put pressure on the pricing and usage of our product candidates. Inmany countries, the prices of medical products are subject to varying price control mechanisms as part of national health systems. In general, the prices ofmedicines under such systems are substantially lower than in the United States. Other countries allow companies to fix their own prices for medicines, butmonitor and control company profits. Additional foreign price controls or other changes in pricing regulation could restrict the amount that we are able tocharge for our product candidates. Accordingly, in markets outside the United States, the reimbursement for our products may be reduced compared with theUnited States and may be insufficient to generate commercially reasonable revenues and profits. Moreover, increasing efforts by governmental and third party payors, in the United States and abroad, to cap or reduce healthcare costs may causesuch organizations to limit both coverage and level of reimbursement for new products approved and, as a result, they may not cover or provide adequatepayment for our product candidates. We expect to experience pricing pressures in connection with the sale of any of our product candidates, due to the trendtoward managed healthcare, the increasing influence of health maintenance organizations and additional legislative changes. The downward pressure onhealthcare costs in general, particularly prescription drugs and surgical procedures and other treatments, has become very intense. As a result, increasinglyhigh barriers are being erected to the entry of new products into the healthcare market.In addition, many private payors contract with commercial vendors who sell software that provide guidelines that attempt to limit utilization of, andtherefore reimbursement for, certain products deemed to provide limited benefit to existing alternatives. Such organizations may set guidelines that limitreimbursement or utilization of our productsProduct liability lawsuits against us could cause us to incur substantial liabilities and to limit commercialization of any products that we may develop. We face an inherent risk of product liability exposure related to the testing of our product candidates in human clinical trials and will face an evengreater risk if we commercially sell any products that we may develop. If we cannot successfully defend against claims that our product candidates orproducts caused injuries, we will incur substantial liabilities. Regardless of merit or eventual outcome, liability claims may result in: •decreased demand for any product candidates or products that we may develop; •injury to our reputation and significant negative media attention; •withdrawal of clinical trial participants; •significant costs to defend the related litigation; •substantial monetary awards to trial participants or patients; •loss of revenue; •reduced resources of our management to pursue our business strategy; and •the inability to commercialize any products that we may develop. We currently hold $8,000,000 in product liability insurance coverage in the aggregate, with a per incident limit of $8,000,000, which may not beadequate to cover all liabilities that we may incur. We may need to increase our insurance coverage as we expand our clinical trials or if we commencecommercialization of our product candidates. Insurance coverage is increasingly expensive. We may not be able to maintain insurance coverage at areasonable cost or in an amount adequate to satisfy any liability that may arise.32Risks Related to Our Dependence on Third Parties We have entered, and may in the future seek to enter, into collaborations with third parties for the development and commercialization of our productcandidates. If we fail to enter into such collaborations, or such collaborations are not successful, we may not be able to capitalize on the market potentialof our product candidates.In October 2017, KalVista Limited and Merck entered into the Option Agreement, under which we granted to Merck an option to acquire KVD001through a period following completion of a Phase 2 clinical trial. We also granted to Merck a similar option to acquire investigational orally deliveredmolecules for DME that we will continue to develop as part of our ongoing research and development activities, through a period following the completionof a Phase 2 clinical trial. Biopharmaceutical companies are our prior and likely future collaborators for any marketing, distribution, development, licensingor broader collaboration arrangements. With respect to our existing collaboration agreement, and what we expect will be the case with any futurecollaboration agreements, we have and would expect to have limited control over the amount and timing of resources that our collaborators dedicate to thedevelopment or commercialization of our product candidates. Moreover, our ability to generate revenues from these arrangements will depend on ourcollaborators’ abilities to successfully perform the functions assigned to them in these arrangements. We face significant competition in seeking appropriatecollaborators. Our ability to reach a definitive agreement for any collaboration will depend, among other things, upon our assessment of the collaborator’sresources and expertise, the terms and conditions of the proposed collaboration and the proposed collaborator’s evaluation of a number of factors. If we areunable to reach agreements with suitable collaborators on a timely basis, on acceptable terms, or at all, we may have to curtail the development of a productcandidate, reduce or delay our development program or one or more of our other development programs, delay our potential development schedule or reducethe scope of research activities, or increase our expenditures and undertake discovery or preclinical development activities at our own expense. If we fail toenter into collaborations and do not have sufficient funds or expertise to undertake the necessary development activities, we may not be able to furtherdevelop our product candidates or continue to develop our product candidates and our business may be materially and adversely affected. Future collaborations we may enter into may involve the following risks: •collaborators may have significant discretion in determining the efforts and resources that they will apply to these collaborations; •collaborators may not perform their obligations as expected; •changes in the collaborators’ strategic focus or available funding, or external factors, such as an acquisition, may divert resources or createcompeting priorities; •collaborators may delay discovery and preclinical development, provide insufficient funding for product development of targets selected byus, stop or abandon discovery and preclinical development for a product candidate, repeat or conduct new discovery and preclinicaldevelopment for a product candidate; •collaborators could independently develop, or develop with third parties, products that compete directly or indirectly with our products orproduct candidates if the collaborators believe that competitive products are more likely to be successfully developed than our products; •product candidates discovered in collaboration with us may be viewed by our collaborators as competitive with their own product candidatesor products, which may cause collaborators to cease to devote resources to the development of its product candidates; •disagreements with collaborators, including disagreements over proprietary rights, contract interpretation or the preferred course ofdevelopment, might cause delays or termination of the discovery, preclinical development or commercialization of product candidates,might lead to additional responsibilities for us with respect to product candidates, or might result in litigation or arbitration, any of whichwould be time-consuming and expensive; •collaborators may not properly maintain or defend their intellectual property rights or intellectual property rights licensed to us or may usetheir proprietary information in such a way as to invite33 litigation that could jeopardize or invalidate our intellectual property or proprietary information or expose us to potential litigation; •collaborators may infringe the intellectual property rights of third parties, which may expose us to litigation and potential liability; and •collaborations may be terminated for the convenience of the collaborator and, if terminated, we could be required to raise additional capitalto pursue further development or commercialization of the applicable product candidates. Additionally, subject to its contractual obligations to us, if a collaborator is involved in a business combination, the collaborator might deemphasizeor terminate the development of any of our product candidates. If one of our collaborators terminates its agreement with us, we may find it more difficult toattract new collaborators and the perception of us in the business and financial communities could be adversely affected. If our collaborations do not result in the successful development of products or product candidates, product candidates could be delayed and we mayneed additional resources to develop product candidates. All of the risks relating to product development, regulatory approval and commercializationdescribed in this proxy statement also apply to the activities of our collaborators. Our existing collaboration with Merck is important to our business. If our collaborators cease development efforts under our existing or futurecollaboration agreements, or if any of those agreements are terminated, these collaborations may fail to lead to commercial products and we may neverreceive milestone payments or future royalties under these agreements.We have entered into a collaboration with Merck to develop KVD001 and other Oral DME Compounds, and these activities currently represent asignificant portion of our product development efforts. A significant portion of our future revenue and cash resources is expected to be derived from thisagreement or other similar agreements into which we may enter in the future. Revenue from research and development collaborations depends uponcontinuation of the collaborations, payments for research and development services and product supply, and the achievement of milestones, contingentpayments and royalties, if any, derived from future products developed from our research. If we are unable to successfully advance the development of ourproduct candidates or achieve milestones, revenue and cash resources from milestone payments under our collaboration agreements will be substantially lessthan expected.We are unable to predict the success of our collaborations and we may not realize the anticipated benefits of our strategic collaborations. Ourcollaborators have discretion in determining and directing the efforts and resources, including the ability to discontinue all efforts and resources, they applyto the development and, if approval is obtained, commercialization and marketing of the product candidates covered by such collaborations. As a result, ourcollaborators may elect to de-prioritize our programs, change their strategic focus or pursue alternative technologies in a manner that results in reduced,delayed or no revenue to us. Our collaborators may have other marketed products and product candidates under collaboration with other companies,including some of our competitors, and their corporate objectives may not be consistent with our best interests. Our collaborators may also be unsuccessful indeveloping or commercializing our products. If our collaborations are unsuccessful, our business, financial condition, results of operations and prospectscould be adversely affected. In addition, any dispute or litigation proceedings we may have with our collaborators in the future could delay developmentprograms, create uncertainty as to ownership of intellectual property rights, distract management from other business activities and generate substantialexpense.Moreover, to the extent that any of our existing or future collaborators were to terminate a collaboration agreement, we may be forced toindependently develop these product candidates, including funding preclinical studies or clinical trials, assuming marketing and distribution costs anddefending intellectual property rights, or, in certain instances, abandon product candidates altogether, any of which could result in a change to our businessplan and have a material adverse effect on our business, financial condition, results of operations and prospects.34We contract with third parties for the manufacture of our product candidates for preclinical and clinical testing and we expect to continue to do so forcommercialization. This reliance on third parties increases the risk that we will not have sufficient quantities of our product candidates or products at anacceptable cost and quality, which could delay, prevent or impair our development or commercialization efforts. We do not own or operate facilities for the manufacture of our product candidates, and we do not have any manufacturing personnel. We currentlyhave no plans to build our own clinical or commercial scale manufacturing capabilities. We rely, and expect to continue to rely, on third parties for themanufacture of our product candidates for preclinical and clinical testing and we do not have backup sources of supply established for our candidates. Wereview the manufacturing process for each of our candidates and assess the risk to supply and, as appropriate, establish multiple manufacturers and/orestablish stock levels to support future activities and do not believe we are currently substantially dependent on any one third party. Despite the drugsubstance and product risk management, this reliance on third parties presents a risk that we will not have sufficient quantities of our product candidates orproducts or such quantities at an acceptable cost or quality, which could delay, prevent or impair our development or commercialization efforts. Any performance failure on the part of our existing or future manufacturers of drug substance or drug products could delay clinical development ormarketing approval. If current suppliers cannot supply us with our Phase 2 requirements as agreed, we may be required to identify alternative manufacturers,which would lead us to incur added costs and delays in identifying and qualifying any such replacement. The formulation used in early studies frequently is not a final formulation for commercialization. Additional changes may be required by the FDA orother regulatory authorities on specifications and storage conditions. These may require additional studies and may delay our clinical trials. We expect to rely on third party manufacturers or third party collaborators for the manufacture of commercial supply of any other product candidatesfor which our collaborators or we obtain marketing approval. We also expect to rely on other third parties to store and distribute drug supplies for our clinical trials. Any performance failure on the part of ourdistributors could delay clinical development or marketing approval of our product candidates or commercialization of our products, producing additionallosses and depriving us of potential product revenue. We may be unable to establish any agreements with third party manufacturers or to do so on acceptable terms. Even if we are able to establishagreements with third party manufacturers, reliance on third party manufacturers entails additional risks, including: •reliance on the third party for regulatory compliance and quality assurance; •the possible breach of the manufacturing agreement by the third party; •the possible misappropriation of our proprietary information, including trade secrets and know-how; and •the possible termination or nonrenewal of the agreement by the third party at a time that is costly or inconvenient for us. Third party manufacturers may not be able to comply with cGMP, regulations or similar regulatory requirements outside the United States. Ourfailure, or the failure of our third party manufacturers, to comply with applicable regulations could result in sanctions being imposed on us, including clinicalholds, fines, injunctions, civil penalties, delays, suspension or withdrawal of approvals, license revocation, seizures or recalls of product candidates orproducts, operating restrictions and criminal prosecutions, any of which could significantly and adversely affect supplies of our products. Our product candidates and any products that we may develop may compete with other product candidates and products for access to manufacturingfacilities. There are a limited number of manufacturers that operate under cGMP regulations and that might be capable of manufacturing for us. 35Our current and anticipated future dependence upon others for the manufacture of our product candidates or products may adversely affect our futureprofit margins and our ability to commercialize any products that receive marketing approval on a timely and competitive basis. We may not successfully engage in strategic transactions, including any additional collaborations we seek, which could adversely affect our ability todevelop and commercialize product candidates, impact our cash position, increase our expenses and present significant distractions to our management.The terms of any collaborations may also have impacts on other aspects of our business.From time to time, we may consider strategic transactions, such as additional collaborations, acquisitions of companies, asset purchases and out- orin-licensing of product candidates or technologies that we believe will complement or augment our existing business. In particular, we will evaluate and, ifstrategically attractive, seek to enter into additional collaborations, including with major biotechnology or biopharmaceutical companies. The competitionfor collaborators is intense, and the negotiation process is time-consuming and complex. Any new collaboration may be on terms that are not optimal for us,and we may not be able to maintain any new collaboration if, for example, development or approval of a product candidate is delayed, sales of an approvedproduct candidate do not meet expectations or the collaborator terminates the collaboration. In addition, there have been a significant number of recentbusiness combinations among large pharmaceutical companies that have resulted in a reduced number of potential future strategic partners. Our ability toreach a definitive agreement for a collaboration will depend, among other things, upon our assessment of the strategic partner’s resources and expertise, theterms and conditions of the proposed collaboration and the proposed strategic partner’s evaluation of a number of factors. These factors may include thedesign or results of clinical trials, the likelihood of approval by the FDA or similar regulatory authorities outside the United States, the potential market forthe subject product candidate, the costs and complexities of manufacturing and delivering such product candidate to patients, the potential of competingproducts, the existence of uncertainty with respect to our ownership of technology, which can exist if there is a challenge to such ownership without regard tothe merits of the challenge, and industry and market conditions generally. Moreover, even if we acquire assets with promising markets or technologies, wemay not be able to realize the benefit of acquiring such assets due to an inability to successfully integrate them with our existing technologies and we mayencounter numerous difficulties in developing, manufacturing and marketing any new products resulting from a strategic acquisition that delay or prevent usfrom realizing their expected benefits or enhancing our business.We cannot assure you that following any such collaboration, or other strategic transaction, we will achieve the expected synergies to justify thetransaction. For example, such transactions may require us to incur non-recurring or other charges, increase our near- and long-term expenditures and posesignificant integration or implementation challenges or disrupt our management or business. These transactions would entail numerous operational andfinancial risks, including exposure to unknown liabilities, disruption of our business and diversion of our management’s time and attention in order tomanage a collaboration or develop acquired products, product candidates or technologies, incurrence of substantial debt or dilutive issuances of equitysecurities to pay transaction consideration or costs, higher than expected collaboration, acquisition or integration costs, write-downs of assets or goodwill orimpairment charges, increased amortization expenses, difficulty and cost in facilitating the collaboration or combining the operations and personnel of anyacquired business, impairment of relationships with key suppliers, manufacturers or customers of any acquired business due to changes in management andownership and the inability to retain key employees of any acquired business. Also, such strategic alliance, joint venture or acquisition may be prohibited.Collaborations may also have potential impact on other aspects of our business. If Merck chooses to exercise its rights under the Option Agreement, it willgain control of a significant portion of our intellectual property portfolio.Accordingly, although there can be no assurance that we will undertake or successfully complete any transactions of the nature described above, anytransactions that we do complete may be subject to the foregoing or other risks that would have a material and adverse effect on our business, financialcondition, results of operations and prospects. Conversely, any failure to enter any additional collaboration or other strategic transaction that would bebeneficial to us could delay the development and potential commercialization of our product candidates and have a negative impact on the competitivenessof any product candidate that reaches market.36Risks Related to Our Intellectual Property If we are unable to obtain and maintain intellectual property protection for our technology and products or if the scope of the intellectual propertyprotection obtained is not sufficiently broad, our competitors could develop and commercialize technology and products similar or identical to ours, andour ability to successfully commercialize our technology and products may be impaired. Our success depends in large part on our ability to obtain and maintain patent protection in the European Union, the United States and othercountries with respect to our proprietary technology and products. We seek to protect our proprietary position by filing patent applications in the UnitedStates and abroad related to our novel technologies and product candidates. This patent portfolio includes issued patents and pending patent applicationscovering compositions of matter and methods of use. The patent prosecution process is expensive and time-consuming, and we may not be able to file and prosecute all necessary or desirable patentapplications at a reasonable cost or in a timely manner. We may choose not to seek patent protection for certain innovations and may choose not to pursuepatent protection in certain jurisdictions, and under the laws of certain jurisdictions, patents or other intellectual property rights may be unavailable orlimited in scope. It is also possible that we will fail to identify patentable aspects of our discovery and preclinical development output before it is too late toobtain patent protection. Moreover, in some circumstances, we may not have the right to control the preparation, filing and prosecution of patentapplications, or to maintain the patents, covering technology that we license from third parties. Therefore, these patents and applications may not beprosecuted and enforced in a manner consistent with the best interests of our business. The patent position of biotechnology and pharmaceutical companies generally is highly uncertain, involves complex legal and factual questions,and has in recent years been the subject of much litigation. In addition, the laws of foreign countries may not protect our rights to the same extent as the lawsof the United States. For example, India and China do not allow patents for methods of treating the human body. Publications of discoveries in the scientificliterature often lag behind the actual discoveries, and patent applications in the United States and other jurisdictions are typically not published until 18months after filing, or in some cases not at all. Therefore, we cannot know with certainty whether we were the first to make the inventions claimed in ourowned or licensed patents or pending patent applications, or that we were the first to file for patent protection of such inventions. If a third party has also fileda United States patent application prior to the effective date of the relevant provisions of the America Invents Act (i.e. before March 16, 2013) covering ourproduct candidates or a similar invention, we may have to participate in an adversarial proceeding, known as an interference, declared by the USPTO todetermine priority of invention in the United States. As a result, the issuance, scope, validity, enforceability and commercial value of our patent rights arehighly uncertain. Our pending and future patent applications may not result in patents being issued which protect our technology or products, in whole or inpart, or which effectively prevent others from commercializing competitive technologies and products. Changes in either the patent laws or interpretation ofthe patent laws in the European Union, the United States and other countries may diminish the value of our patents or narrow the scope of our patentprotection. Moreover, we may be subject to a third party preissuance submission of prior art to the USPTO, or become involved in opposition, derivation,reexamination, inter partes review, post-grant review or interference proceedings challenging our patent rights or the patent rights of others. An adversedetermination in any such submission, proceeding or litigation could reduce the scope of, or invalidate, our patent rights, allow third parties tocommercialize our technology or products and compete directly with us, without payment to us, or result in our inability to manufacture or commercializeproducts without infringing third party patent rights. In addition, if the breadth or strength of protection provided by our patents and patent applications isthreatened, it could dissuade companies from collaborating with us to license, develop or commercialize current or future product candidates. Even if our owned and licensed patent applications issue as patents, they may not issue in a form that will provide us with any meaningful protection,prevent competitors from competing with us or otherwise provide us with any competitive advantage. Our competitors may be able to circumvent our ownedor licensed patents by developing similar or alternative technologies or products in a non-infringing manner. The issuance of a patent is not conclusive as to its inventorship, scope, validity or enforceability, and our owned and licensed patents may bechallenged in the courts or patent offices in the United States and abroad. Such37challenges may result in loss of exclusivity or freedom to operate or in patent claims being narrowed, invalidated or held unenforceable, in whole or in part,which could limit our ability to stop others from using or commercializing similar or identical technology and products, or limit the duration of the patentprotection of our technology and products. Given the amount of time required for the development, testing and regulatory review of new product candidates,patents protecting such candidates might expire before or shortly after such candidates are commercialized. As a result, our owned and licensed patentportfolio may not provide us with sufficient rights to exclude others from commercializing products similar or identical to ours. The risks described elsewhere pertaining to our patents and other intellectual property rights also apply to the intellectual property rights that welicense, and any failure to obtain, maintain and enforce these rights could have a material adverse effect on our business. In some cases we may not havecontrol over the prosecution, maintenance or enforcement of the patents that we license, and our licensors may fail to take the steps that we believe arenecessary or desirable in order to obtain, maintain and enforce the licensed patents. Any inability on our part to protect adequately our intellectual propertymay have a material adverse effect on our business, operating results and financial position. Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment and otherrequirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with theserequirements. Periodic maintenance fees, renewal fees, annuity fees and various other governmental fees on patents and/or applications will be due to be paid to theUSPTO and various governmental patent agencies outside of the United States in several stages over the lifetime of the patents and/or applications. Weemploy an outside firm and rely on our outside counsel to pay these fees due to non-U.S. patent agencies. The USPTO and various non-U.S. governmentalpatent agencies require compliance with a number of procedural, documentary, fee payment and other similar provisions during the patent applicationprocess. We employ reputable law firms and other professionals to help us comply, and in many cases, an inadvertent lapse can be cured by payment of a latefee or by other means in accordance with the applicable rules. However, there are situations in which non-compliance can result in abandonment or lapse ofthe patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. In such an event, our competitors might beable to enter the market and this circumstance would have a material adverse effect on our business. We may become involved in lawsuits to protect or enforce our patents or other intellectual property, which could be expensive, time consuming andunsuccessful. Because competition in our industry is intense, competitors may infringe or otherwise violate our issued patents, patents of our licensors or otherintellectual property. To counter infringement or unauthorized use, we may be required to file infringement claims, which can be expensive and timeconsuming. Any claims we assert against perceived infringers could provoke these parties to assert counterclaims against us alleging that we infringed theirpatents. In addition, in a patent infringement proceeding, a court may decide that a patent of ours is invalid or unenforceable, in whole or in part, construe thepatent’s claims narrowly or refuse to stop the other party from using the technology at issue on the grounds that our patents do not cover the technology inquestion. An adverse result in any litigation proceeding could put one or more of our patents at risk of being invalidated or interpreted narrowly. We mayalso elect to enter into license agreements in order to settle patent infringement claims or to resolve disputes prior to litigation, and any such licenseagreements may require us to pay royalties and other fees that could be significant. Furthermore, because of the substantial amount of discovery required inconnection with intellectual property litigation, there is a risk that some of our confidential information could be compromised by disclosure. Third parties may initiate legal proceedings alleging that we are infringing their intellectual property rights, the outcome of which would be uncertain andcould have a material adverse effect on the success of our business. Our commercial success depends upon our ability, and the ability of our collaborators, to develop, manufacture, market and sell our productcandidates and use our proprietary technologies without infringing the proprietary rights of third parties. There is considerable intellectual property litigationin the biotechnology and pharmaceutical industries. We may become party to, or threatened with, future adversarial proceedings or litigation regardingintellectual property rights with respect to our products and technology, including interference or38derivation proceedings before the USPTO. Third parties may assert infringement claims against us based on existing patents or patents that may be granted inthe future. If we are found to infringe a third party’s intellectual property rights, we could be required to obtain a license from such third party to continuedeveloping and marketing our products and technology. However, we may not be able to obtain any required license on commercially reasonable terms or atall. Even if we were able to obtain a license, it could be non-exclusive, thereby giving our competitors access to the same technologies licensed to us. Wecould be forced, including by court order, to cease commercializing the infringing technology or product. In addition, we could be found liable for monetarydamages, including treble damages and attorneys’ fees if we are found to have willfully infringed a patent. A finding of infringement could prevent us fromcommercializing our product candidates or force us to cease some of our business operations, which could materially harm our business. Claims that we havemisappropriated the confidential information or trade secrets of third parties could have a similar negative impact on our business. If we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed. In addition to seeking patents for some of our technology and product candidates, we also rely on trade secrets, including unpatented know-how,technology and other proprietary information, to maintain our competitive position. We seek to protect these trade secrets, in part, by entering into non-disclosure and confidentiality agreements with parties who have access to them, such as our employees, corporate collaborators, outside scientificcollaborators, contract manufacturers, consultants, advisors and other third parties. We seek to protect our confidential proprietary information, in part, byentering into confidentiality and invention or patent assignment agreements with our employees and consultants, however, we cannot be certain that suchagreements have been entered into with all relevant parties. Moreover, to the extent we enter into such agreements, any of these parties may breach theagreements and disclose our proprietary information, including our trade secrets, and we may not be able to obtain adequate remedies for such breaches.Enforcing a claim that a party illegally disclosed or misappropriated a trade secret is difficult, expensive and time-consuming, and the outcome isunpredictable. In addition, some courts inside and outside the United States are less willing or unwilling to protect trade secrets. If any of our trade secretswere to be lawfully obtained or independently developed by a competitor, we would have no right to prevent them, or those to whom they communicatethem, from using that technology or information to compete with us. If any of our trade secrets were to be disclosed to or independently developed by acompetitor, our competitive position would be harmed. Risks Related to Employee Matters, Facilities, Managing Growth and Macroeconomic Conditions Our future success depends on our ability to retain key executives and to attract, retain and motivate qualified personnel. We are highly dependent on the research and development, clinical and business development expertise of the principal members of ourmanagement, scientific and clinical team. Although we have entered into employment letter agreements with our executive officers, each of them mayterminate their employment with us at any time. We do not maintain “key person” insurance for any of our executives or other employees. Recruiting and retaining qualified scientific, clinical, manufacturing, sales and marketing personnel will also be critical to our success. The loss ofthe services of our executive officers or other key employees could impede the achievement of our research, development and commercialization objectivesand seriously harm our ability to successfully implement our business strategy. Furthermore, replacing executive officers and key employees may be difficultand may take an extended period of time because of the limited number of individuals in our industry with the breadth of skills and experience required tosuccessfully develop, gain regulatory approval of and commercialize products. Competition to hire from this limited pool is intense, and we may be unable tohire, train, retain or motivate these key personnel on acceptable terms given the competition among numerous pharmaceutical and biotechnology companiesfor similar personnel. We also experience competition for the hiring of scientific and clinical personnel from universities and research institutions. Inaddition, we rely on consultants and advisors, including scientific and clinical advisors, to assist us in formulating our discovery and preclinicaldevelopment and commercialization strategy. Our consultants and advisors may be employed by employers other than us and may39have commitments under consulting or advisory contracts with other entities that may limit their availability to provide services to us. If we are unable tocontinue to attract and retain high quality personnel, our ability to pursue our growth strategy will be limited. We expect to expand our development and regulatory capabilities and potentially implement sales, marketing and distribution capabilities, and as aresult, we may encounter difficulties in managing our growth, which could disrupt our operations. We expect to experience significant growth in the number of our employees and the scope of our operations, particularly in the areas of drugdevelopment, regulatory affairs and, if any of our product candidates receive marketing approval, sales, marketing and distribution. To manage ouranticipated future growth, we must continue to implement and improve our managerial, operational and financial systems, expand our facilities and continueto recruit and train additional qualified personnel. Due to our limited financial resources and the limited experience of our management team in managing acompany with such anticipated growth, we may not be able to effectively manage the expansion of our operations or recruit and train additional qualifiedpersonnel. The expansion of our operations may lead to significant costs and may divert our management and business development resources. Any inabilityto manage growth could delay the execution of our business plans or disrupt our operations. The U.K. vote to leave the European Union, known as Brexit, could negatively impact our business and operations.The majority of our scientific operations are based in the United Kingdom and we have received significant funding through United Kingdomgovernment sources and tax credits. In addition, we have used the United Kingdom as our European location for interactions with European Union regulatoryauthorities related to clinical development and other activities executed or planned in the European Union. The ongoing Brexit process is complicated andmany of the details of future interactions between the United Kingdom and European Union remain unresolved. There are many risks and uncertaintiesassociated with this process, including whether Brexit has a negative economic impact on either the United Kingdom or the European Union member states,or interactions with the European Union regulatory regime are changed as a result of Brexit, any of which could have an adverse impact on our business orfuture operations. For additional risks related to Brexit, see “—If we are not able to obtain, or if there are delays in obtaining required regulatory approvals,we will not be able to commercialize our product candidates, and our ability to generate revenue will be materially impaired.”Our business and operations would suffer in the event of system failures or security breaches. Our internal computer systems and those of our CROs, collaborators and third parties on whom we rely are vulnerable to damage from computerviruses, unauthorized access, natural disasters, terrorism, war and telecommunication and electrical failures. Furthermore, we have little or no control over thesecurity measures and computer systems of our third party collaborators. In May 2019, we were notified by one of our vendors that they suffered a securitybreach and some of our data was among the information stolen by an unknown third party. We have taken certain actions in response to that theft and we donot anticipate significant disruption to our business or future prospects. However, in the future, if such an event were to occur and lead to exposure ofsensitive information or cause interruptions in our operations or our third party collaborators, it could result in a material disruption of our drug developmentprograms and potential financial losses. For example, the loss of research data could delay development of our product candidates and the loss of clinical trialdata from completed or ongoing or planned clinical trials could result in delays in our regulatory approval efforts and we may incur substantial costs toattempt to recover or reproduce the data. If any disruption or security breach resulted in a loss of or damage to our data or applications, or inappropriatedisclosure of confidential or proprietary information, we could incur liability and/or the further development of our product candidates could be delayed orimpaired.40Risks Related to Ownership of Our Common StockOur stock price is volatile and our stockholders may not be able to resell shares of our common stock at or above the price they paid.The trading price of our common stock is highly volatile and could be subject to wide fluctuations in response to various factors, many of which arebeyond our control. These factors include those discussed in this “Risk Factors” section of this Annual Report on Form 10-K and others such as: •announcement of a strategic transaction or other significant events for us or our competitors; •our decision to initiate a clinical trial or not to initiate a clinical trial; •announcements of significant changes in our business or operations, including the decision not to pursue drug development programs; •additions or departures of key personnel; •adverse results or delays in clinical trials; •changes in reimbursement or third party coverage of treatments for HAE or DME, or changes to treatment recommendations or guidelinesapplicable to the treatment of HAE or DME; •announcements relating to collaboration partnerships or other strategic transactions undertaken by us; •announcements of therapeutic innovations or new products by us or our competitors; •adverse actions taken by regulatory agencies with respect to our clinical trials, manufacturing supply chain or sales and marketing activities; •changes or developments in laws or regulations applicable to any of our product candidates; •any adverse changes to our relationship with any manufacturers or suppliers; •the success of our testing and clinical trials; •the success of our efforts to acquire or license or discover additional product candidates; •any intellectual property infringement actions in which we may become involved; •announcements concerning our competitors or the pharmaceutical industry in general; •achievement of expected product sales and profitability; •manufacture, supply or distribution shortages; •actual or anticipated fluctuations in our operating results; •FDA or other regulatory actions affecting us or our industry or other healthcare reform measures in the United States, the United Kingdom orthe European Union; •changes in financial estimates or recommendations by securities analysts; •trading volume of our common stock; •sales of our common stock by us, our executive officers and directors or our stockholders in the future; and •general economic and market conditions and overall fluctuations in the United States equity markets.In addition, the stock markets in general, and the markets for pharmaceutical, biopharmaceutical and biotechnology stocks in particular, haveexperienced extreme volatility that may have been unrelated to the operating performance of the issuer. These broad market fluctuations may adversely affectthe trading price or liquidity of our common stock. In the past, when the market price of a stock has been volatile, holders of that stock have sometimesinstituted securities class action litigation against the issuer. If any of our stockholders were to bring such a lawsuit against us, we could incur substantialcosts defending the lawsuit and the attention of our41management would be diverted from the operation of our business, which could seriously harm our financial position. Any adverse determination inlitigation could also subject us to significant liabilities.If securities or industry analysts do not publish research or reports about our business, or if they issue an adverse opinion regarding our stock, our stockprice and trading volume could decline.The trading market for our common stock will be influenced by the research and reports that industry or securities analysts publish about us or ourbusiness. If any analysts who cover us issue an adverse regarding us, our business model, our intellectual property or our stock performance, or if our clinicaltrials and operating results fail to meet the expectations of analysts, our stock price would likely decline. If any of these analysts cease coverage of us or failto publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline.We incur significant costs as a result of operating as a public company, and our management devotes substantial time to compliance initiatives. We mayfail to comply with the rules that apply to public companies, including Section 404 of the Sarbanes-Oxley Act of 2002, which could result in sanctions orother penalties that would harm our business.We incur significant legal, accounting and other expenses as a public company, including costs resulting from public company reporting obligationsunder the Securities Exchange Act of 1934, as amended, or the Exchange Act, and regulations regarding corporate governance practices. The listingrequirements of The NASDAQ Global Market require that we satisfy certain corporate governance requirements relating to director independence,distributing annual and interim reports, stockholder meetings, approvals and voting, soliciting proxies, conflicts of interest and a code of conduct. Ourmanagement and other personnel have devoted, and will continue to need to devote, a substantial amount of time to ensure that we comply with all of theserequirements. Moreover, the reporting requirements, rules and regulations increase our legal and financial compliance costs and make some activities moretime consuming and costly. Any changes we make to comply with these obligations may not be sufficient to allow us to satisfy our obligations as a publiccompany on a timely basis, or at all. These reporting requirements, rules and regulations, coupled with the increase in potential litigation exposure associatedwith being a public company, could also make it more difficult for us to attract and retain qualified persons to serve on our board of directors or boardcommittees or to serve as executive officers, or to obtain certain types of insurance, including directors’ and officers’ insurance, on acceptable terms.We are subject to Section 404 of The Sarbanes-Oxley Act of 2002, or Section 404, and the related rules of the SEC which generally require ourmanagement and independent registered public accounting firm to report on the effectiveness of our internal control over financial reporting. Section 404requires an annual management assessment of the effectiveness of our internal control over financial reporting. However, for so long as we remain anemerging growth company as defined in the Jumpstart Our Business Startups Act of 2012, or JOBS Act, we intend to take advantage of certain exemptionsfrom various reporting requirements that are applicable to public companies that are not emerging growth companies, including, but not limited to, not beingrequired to comply with the auditor attestation requirements of Section 404.During the course of the review and testing of our internal control for the purpose of providing the reports required by these rules, we may identifydeficiencies and be unable to remediate them before we must provide the required reports. Furthermore, if we have a material weakness in our internal controlover financial reporting, we may not detect errors on a timely basis and our financial statements may be materially misstated. We or our independentregistered public accounting firm may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting, whichcould harm our operating results, cause investors to lose confidence in our reported financial information and cause the trading price of our stock to fall. Inaddition, as a public company we are required to file accurate and timely quarterly and annual reports with the SEC under the Exchange Act. Any failure toreport our financial results on an accurate and timely basis could result in sanctions, lawsuits, delisting of our shares from The NASDAQ Global Market orother adverse consequences that would materially harm our business.42If we fail to establish or maintain proper internal controls, our ability to produce accurate financial statements or comply with applicable regulationscould be impaired.Pursuant to Section 404 of the Sarbanes-Oxley Act, our management is required annually to deliver a report that assesses the effectiveness of ourinternal control over financial reporting and, subject to exemptions allowed as an “emerging growth company,” our independent registered publicaccounting firm will be required annually to deliver an attestation report on the effectiveness of our internal control over financial reporting. If we are unableto maintain effective internal control over financial reporting, we may not be able to produce accurate financial statements, and investors may therefore loseconfidence in our operating results, our stock price could decline and we may be subject to litigation or regulatory enforcement actions.Provisions in our charter documents and under Delaware law could discourage a takeover that stockholders may consider favorable and may lead toentrenchment of management.Our amended and restated certificate of incorporation and amended and restated bylaws contain provisions that could significantly reduce the valueof our shares to a potential acquirer or delay or prevent changes in control or changes in our management without the consent of our board of directors. Theprovisions in our charter documents include the following: •a classified board of directors with three-year staggered terms, which may delay the ability of stockholders to change the membership of amajority of our board of directors; •no cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates; •the exclusive right of our board of directors to elect a director to fill a vacancy created by the expansion of the board of directors or theresignation, death or removal of a director, which prevents stockholders from being able to fill vacancies on our board of directors; •the required approval of at least 66 2/3% of the shares entitled to vote to remove a director for cause, and the prohibition on removal ofdirectors without cause; •the ability of our board of directors to authorize the issuance of shares of preferred stock and to determine the price and other terms of thoseshares, including preferences and voting rights, without stockholder approval, which could be used to significantly dilute the ownership of ahostile acquirer; •the ability of our board of directors to alter our bylaws without obtaining stockholder approval; •the required approval of at least 66 2/3% of the shares entitled to vote at an election of directors to adopt, amend or repeal certain provisionsof our bylaws and our amended and restated certificate of incorporation regarding the election and removal of directors; •a prohibition on stockholder action by written consent, which forces stockholder action to be taken at an annual or special meeting of ourstockholders; •the requirement that a special meeting of stockholders may be called only by or at the direction of our board of directors pursuant to aresolution adopted by a majority of the total number of directors that our board of directors would have if there were no vacancies, whichmay delay the ability of our stockholders to force consideration of a proposal or to take action, including the removal of directors; and •advance notice procedures that stockholders must comply with in order to nominate candidates to our board of directors or to proposematters to be acted upon at a stockholders’ meeting, which may discourage or deter a potential acquirer from conducting a solicitation ofproxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of us. In addition, these provisions would applyeven if we were to receive an offer that some stockholders may consider beneficial.We are also subject to the anti-takeover provisions contained in Section 203 of the Delaware General Corporation Law. Under Section 203, acorporation may not, in general, engage in a business combination with any holder of 15% or more of its capital stock unless the holder has held the stock forthree years or, among other exceptions, the board of directors has approved the transaction.43Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third party claims against us and may reducethe amount of money available to us.Our amended and restated certificate of incorporation and amended and restated bylaws provide that we will indemnify our directors and officers, ineach case to the fullest extent permitted by Delaware law.In addition, as permitted by Section 145 of the Delaware General Corporation Law, our amended and restated bylaws and our indemnificationagreements that we have entered into with our directors and officers provide that: •We will indemnify our directors and officers for serving us in those capacities or for serving other business enterprises at our request, to thefullest extent permitted by Delaware law. Delaware law provides that a corporation may indemnify such person if such person acted in goodfaith and in a manner such person reasonably believed to be in or not opposed to the best interests of the registrant and, with respect to anycriminal proceeding, had no reasonable cause to believe such person’s conduct was unlawful. •We may, in our discretion, indemnify employees and agents in those circumstances where indemnification is permitted by applicable law. •We are required to advance expenses, as incurred, to our directors and officers in connection with defending a proceeding, except that suchdirectors or officers shall undertake to repay such advances if it is ultimately determined that such person is not entitled to indemnification. •We will not be obligated pursuant to our amended and restated bylaws to indemnify a person with respect to proceedings initiated by thatperson against us or our other indemnitees, except with respect to proceedings authorized by our board of directors or brought to enforce aright to indemnification. •The rights conferred in our amended and restated bylaws are not exclusive, and we are authorized to enter into indemnification agreementswith our directors, officers, employees and agents and to obtain insurance to indemnify such persons. •We may not retroactively amend our amended and restated bylaw provisions to reduce our indemnification obligations to directors, officers,employees and agents.Our ability to use our net operating losses to offset future taxable income, if any, may be subject to certain limitations.In general, under Section 382 of the Internal Revenue Code of 1986, as amended, or the Code, a corporation that undergoes an “ownership change”(generally defined as a greater than 50-percentage-point cumulative change (by value) in the equity ownership of certain stockholders over a rolling three-year period) is subject to limitations on its ability to utilize its pre-change net operating losses, or NOLs, to offset future taxable income. We haveexperienced ownership changes that substantially limit our use of the NOLs available to us for U.S. federal income tax purposes. If we undergo additionalownership changes (some of which changes may be outside our control), our ability to utilize our NOLs could be further limited by Section 382 of the Code.Our NOLs may also be impaired under state law. Accordingly, we may not be able to utilize a material portion of our NOLs. Furthermore, our ability to utilizeour NOLs is conditioned upon our attaining profitability and generating U.S. federal taxable income. We have incurred net losses since our inception andanticipate that we will continue to incur significant losses for the foreseeable future; thus, we do not know whether or when we will generate the U.S. federaltaxable income necessary to utilize our NOLs. See the risk factors described above under “-Risks Related to Our Limited Operating History, FinancialCondition and Capital Requirements.”We do not currently intend to pay dividends on our common stock, and, consequently, our stockholders’ ability to achieve a return on their investment willdepend on appreciation in the price of our common stock.We do not currently intend to pay any cash dividends on our common stock for the foreseeable future. We currently intend to invest our futureearnings, if any, to fund our growth. Therefore, our stockholders are not likely to receive any dividends on their common stock for the foreseeable future.Since we do not intend to pay dividends, our stockholders’ ability to receive a return on their investment will depend on any future appreciation in themarket value of our common stock. There is no guarantee that our common stock will appreciate or even maintain the price at which our holders havepurchased it.44Item 1B. Unresolved Staff Comments.None.Item 2. Properties.Our corporate headquarters are located in Cambridge, Massachusetts where we occupy approximately 2,700 square feet of office space under a five-year lease. We maintain approximately 8,800 square feet of office and research laboratory space in Porton Down, United Kingdom, under a ten-year lease. Wealso maintain approximately 1,000 square feet of leased research laboratory space in Boston, Massachusetts.We believe that our current and planned facilities are adequate to meet our needs for the forseeable future, and that, should it be needed, suitableadditional space will be available to accommodate any such expansion of our operations.Item 3. Legal Proceedings.From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. We arecurrently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition oroperating results. Item 4. Mine Safety Disclosures.Not Applicable.45PART IIItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.Market InformationOur common stock is traded on the NASDAQ stock market under the symbol “KALV.” HoldersAs of July 10, 2019 there were 39 holders of record of our common stock. The actual number of holders is greater than this number of record holdersand includes stockholders who are beneficial owners but whose shares are held in street name by brokers and other nominees.DividendsWe have never declared or paid cash dividends on our capital stock. We do not expect to pay dividends on our common stock for the foreseeablefuture. Instead, we anticipate that all of our earnings, if any, will be used for the operation and growth of our business. Any future determination to declarecash dividends would be subject to the discretion of our board of directors and would depend upon various factors, including our results of operations,financial condition and capital requirements, restrictions that may be imposed by applicable law and our contracts and other factors deemed relevant by ourboard of directors.Securities Authorized for Issuance under Equity Compensation PlansThe following table provides information as of April 30, 2019, with respect to the shares of our common stock that may be issued under our existingequity compensation plans. Number ofSecurities tobe IssueduponExercise ofOutstandingOptions,Warrantsand Rights Weighted-averageExercisePrice ofOutstandingOptions,Warrantsand Rights Number ofSecuritiesRemainingAvailable forFutureIssuanceUnder EquityCompensationPlans(excludingsecuritiesreflected incolumn (a)) Plan Category (a) (b) (c) Equity compensation plans approved by stockholders (1)(2) 1,704,283 $10.06 902,251 Equity compensation plans not approved by stockholders (3) 80,055 $8.49 — Total 1,784,338 902,251 (1)Includes 159,075 shares subject to options issued pursuant to the Carbylan 2015 Incentive Plan, 175,618 shares subject to options issuedpursuant to the Enterprise Management Incentives Plan and 1,369,590 shares subject to options issued pursuant to the 2017 Equity IncentivePlan. The 2017 Equity Incentive Plan contains provisions that provide for automatic increases to the authorized number of shares as ofJanuary 1st each year, of up to 4% of the outstanding shares of stock on the last day of the immediately preceding calendar year, or a lessernumber of shares as approved by our board of directors. There are currently 802,251 shares available for future issuance under the 2017Equity Incentive Plan. There are 100,000 shares of common stock available for future issuance under the 2017 Employee Stock PurchasePlan. In January 2019, the board of directors authorized the first offering period under the 201746 Employee Stock Purchase Plan to run from February 15, 2019 to June 30, 2019. All subsequent offering periods will run for six monthperiods ending June 30 and December 31 of each year. (2)Shares reserved for issuance under the 2017 Equity Incentive Plan may be granted as restricted stock, restricted share units and other equityawards, as well as for grants of stock options and stock appreciation rights. (3)Consists of options issued pursuant to inducement grants.Stock Price Performance GraphThe graph below matches KalVista Pharmaceuticals, Inc.'s cumulative 49-month total shareholder return on common stock with the cumulative totalreturns of the NASDAQ Composite index and the NASDAQ Biotechnology index. The graph tracks the performance of a $100 investment in our commonstock and in each index (with the reinvestment of all dividends) from April 9, 2015, the date our common stock became publicly traded, to April 30, 2019.Prior to November 2016 the Company was named Carbylan Therapeutics, Inc. and operated as a different entity than the current KalVista. 4/9/154/157/1510/151/164/167/1610/161/174/177/1710/171/184/187/1810/181/194/19 KalVista Pharmaceuticals, Inc.100.0090.65124.2864.7543.7113.179.739.439.039.629.3016.3513.4112.3612.0324.2824.0129.55 NASDAQ Composite100.00100.86104.97103.7495.0098.65106.99107.86117.07126.46133.11141.44156.21149.33162.56155.21155.15172.91 NASDAQ Biotechnology100.0097.25111.3894.9777.9478.2884.6075.0181.4687.2993.7192.42100.9791.65103.3792.4697.5694.61 47Recent Sales of Unregistered SecuritiesNone.Item 6. Selected Financial Data.The following selected financial data should be read in conjunction with the Consolidated Financial Statements and the Notes thereto and thesection captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included elsewhere in this Annual Report onForm 10-K.The Balance Sheet Data at April 30, 2019 and 2018 and the Statement of Operations Data for each of the three years ended April 30, 2019, 2018, and2017 have been derived from the audited Consolidated Financial Statements for such years, included elsewhere in this Annual Report on Form 10-K. TheBalance Sheet Data at April 30, 2017, 2016 and 2015, and the Statement of Operations Data for each of the two years in the period ended April 30, 2016 and2015 have been derived from audited consolidated financial statements for such years not included in this Annual Report on Form 10-K. For the Years Ended April 30, 2019 2018 2017 2016 2015 (in thousands, except share and per share data) Consolidated Statement of Operations Data: Revenue $16,127 $8,394 $1,504 $2,133 $1,804 Operating expenses Research and development 35,021 18,237 12,666 14,661 8,285 General and administrative 10,926 8,862 11,177 2,653 1,608 Total operating expenses 45,947 27,099 23,843 17,314 9,893 Operating loss (29,820) (18,705) (22,339) (15,181) (8,089)Other income, net 9,128 2,900 3,736 3,745 863 Loss before income taxes (20,692) (15,805) (18,603) (11,436) (7,226)Income tax expense 124 — — — — Net loss $(20,816) $(15,805) $(18,603) $(11,436) $(7,226)Net loss per share, basic and diluted $(1.38) $(1.53) $(4.47) $(26.17) $(34.94)Weighted average common shares outstanding, basic and diluted 15,080,863 10,321,780 4,646,764 591,298 263,358 April 30, 2019 2018 2017 2016 2015 (in thousands) Consolidated Balance Sheet Data: Cash and cash equivalents $32,006 $51,055 $30,950 $21,764 $2,526 Property and equipment, net 2,413 1,836 97 74 100 Working capital 97,494 36,164 31,180 21,422 1,950 Total assets 118,132 61,389 34,345 24,745 3,890 Total liabilities 21,394 34,136 3,018 3,249 1,840 Stockholders' equity (deficit) 96,738 27,253 31,327 (37,112) (23,554) 48Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.The following discussion and analysis should be read in conjunction with our audited consolidated financial statements and the related notes thatappear elsewhere in this Annual Report on Form 10-K. This discussion contains forward-looking statements reflecting our current expectations that involverisks and uncertainties. Actual results may differ materially from those discussed in these forward-looking statements due to a number of factors, includingthose set forth in the section entitled “Risk Factors” and elsewhere in this Annual Report on Form 10-K. For further information regarding forward-lookingstatements, please refer to the “Special Note Regarding Forward-Looking Statements” at the beginning of Part I of this Annual Report on Form 10-K.Management OverviewWe are a clinical stage pharmaceutical company focused on the discovery, development and commercialization of small molecule protease inhibitorsfor diseases with significant unmet need. Our first product candidates are inhibitors of plasma kallikrein being developed for two indications: hereditaryangioedema (“HAE”) and diabetic macular edema (“DME”). We apply our insights into the chemistry of proteases and, with our current programs, thebiology of the plasma kallikrein system, to develop small molecule inhibitors with high selectivity, potency and bioavailability that we believe will makethem successful treatments for disease.We have created a structurally diverse portfolio of oral plasma kallikrein inhibitors and advanced multiple drug candidates into Phase 1 clinical trialsin order to create best-in-class oral therapies for both HAE and DME. In December 2018, we initiated a Phase 2 clinical trial of KVD900 as a potential on-demand therapy for treatment of acute HAE attacks. We currently expect that trial to complete in late 2019. In the case of DME, we are initially developingKVD001, a plasma kallikrein inhibitor which is administered directly into the eye, and we anticipate ultimate development of orally delivered drugs. Wehave fully enrolled an ongoing Phase 2 trial for KVD001 that we expect to complete in the second half of 2019.We have devoted substantially all our efforts to research and development, including clinical trials of our product candidates. We have notcompleted the development of any product candidates. Pharmaceutical drug product candidates, like those being developed by us, require approvals from theFDA or foreign regulatory agencies prior to commercial sales. There can be no assurance that any product candidates will receive the necessary approvals andany failure to receive approval or delay in approval may have a material adverse impact on our business and financial results. We are subject to a number ofrisks and uncertainties similar to those of other life science companies developing new products, including, among others, the risks related to the necessity toobtain adequate additional financing, to successfully develop product candidates, to obtain regulatory approval of product candidates, to comply withgovernment regulations, to successfully commercialize our potential products, to the protection of proprietary technology and to our dependence on keyindividuals.We have funded operations primarily through the issuance of stock, the Option Agreement, the share purchase transaction with Carbylan and grantincome. As of April 30, 2019, we had an accumulated deficit of $92.5 million and $100.8 million of cash, cash equivalents and available for sale securities.Our working capital is anticipated to fund our operations for at least the next twelve months from the date the audited consolidated financial statements areissued. Accordingly, the audited consolidated financial statements have been prepared on a going concern basis.Financial OverviewRevenueOur revenue consists primarily of a portion of the upfront fees from the Option Agreement, which is recognized as revenue using an input method ofperformance completed to date comparing the total effort incurred with our estimate of total effort required to perform the related research and developmentactivities.In prior years, we received grant income to support our research and development activities. During the year ended April 30, 2019, there were nogrant activities or related income.49Research and Development ExpensesResearch and development expenses primarily consist of costs associated with our research activities, including the preclinical and clinicaldevelopment of product candidates. We contract with clinical research organizations to manage our clinical trials under agreed upon budgets for each study,with oversight by our clinical program managers. All research and development costs are expensed as incurred.We expect to continue to incur substantial expenses related to development activities for the foreseeable future as we conduct clinical development,manufacturing and toxicology studies. Product candidates in later stages of clinical development generally have higher development costs than those inearlier stages of clinical development, primarily due to the increased size and duration of later-stage clinical trials, additional drug manufacturingrequirements, and later stage toxicology studies such as carcinogenicity studies. The process of conducting preclinical studies and clinical trials necessary toobtain regulatory approval is costly and time consuming. The probability of success for each product candidate is affected by numerous factors, includingpreclinical data, clinical data, competition, manufacturing capability and commercial viability. Accordingly, we may never succeed in achieving marketingapproval for any of our product candidates.Completion dates and costs for clinical development programs as well as our research program can vary significantly for each current and futureproduct candidate and are difficult to predict. As a result, we cannot estimate with any degree of certainty the costs associated with development of ourproduct candidates at this point in time. We anticipate making determinations as to which programs and product candidates to pursue and how much fundingto direct to each program and product candidate on an ongoing basis in response to the scientific success of early research programs, results of ongoing andfuture clinical trials, our ability to enter into collaborative agreements with respect to programs or potential product candidates, as well as ongoingassessments as to the commercial potential of each current or future product candidate.General and Administrative ExpensesGeneral and administrative expenses consist primarily of the costs associated with general management, obtaining and maintaining our patentportfolio, professional fees for accounting, auditing, consulting and legal services, and general overhead expenses.We expect ongoing general and administrative expenses to increase in the future as we expand our operating activities, maintain and expand thepatent portfolio and incur additional costs associated with the management of a public company and maintaining compliance with exchange listing and SECrequirements. These potential increases will likely include management costs, legal fees, accounting fees, directors’ and officers’ liability insurance premiumsand expenses associated with investor relations.Other Income, NetOther income consists of bank interest, research and development tax credits from the United Kingdom government’s tax incentive programs set upto encourage research and development in the United Kingdom, and realized and unrealized exchange rate gains/losses on cash held in foreign currencies.Income TaxesWe historically have incurred net losses and had no corporation tax liabilities. We file U.S. Federal tax returns, as well as certain state returns. We alsofile returns in the United Kingdom. Under the U.K. government’s research and development tax incentive scheme, we have incurred qualifying research anddevelopment expenses and filed claims for research and development tax credits in accordance with the relevant tax legislation. The research anddevelopment tax credits are paid out to us in cash and reported as other income. Because of the operating losses and the full valuation allowance provided onall deferred tax assets, including the net operating losses, no tax provision has been recognized in the years prior to the fiscal year ended April 30, 2019.50Critical Accounting Policies and Significant Judgments and EstimatesOur management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which we haveprepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The preparation of our financial statements requires usto make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date ofour financial statements and the reported revenue and expenses during the reported periods. We evaluate these estimates and judgments, including thosedescribed below, on an ongoing basis. We base our estimates on historical experience, known trends and events, contractual milestones and various otherfactors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assetsand liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Seealso Note 2, “Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in Item 8 of this report, which discusses thesignificant assumptions used in applying our accounting policies. Those accounting policies and estimates that we deem to be critical are as follows:Revenue RecognitionWe recognize revenue from research and development arrangements. In accordance with Accounting Standards Codification (“ASC”) 606, “Revenuefrom Contracts with Customers,” revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognizedreflects the consideration to which we expect to be entitled to receive in exchange for these goods and services.Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are bothcapable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other available resources, and aredistinct in the context of the contract, whereby the transfer of the good or service is separately identifiable from other promises in the contract. To the extent acontract includes multiple promised goods and services, we must apply judgment to determine whether promised goods and services are capable of beingdistinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation.The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods and services to thecustomer. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in thetransaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration.Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under thecontract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period for any changes.If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts thatcontain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative standalone selling pricebasis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms partof a single performance obligation. The consideration to be received is allocated among the separate performance obligations based on relative standaloneselling prices.We satisfy performance obligations either over time or at a point in time. Revenue is recognized over time if either: (1) the customer simultaneouslyreceives and consumes the benefits provided by the entity’s performance (2) the entity’s performance creates or enhances an asset that the customer controlsas the asset is created or enhanced or (3) the entity’s performance does not create an asset with an alternative use to the entity and the entity has anenforceable right to payment for performance completed to date. If the entity does not satisfy a performance obligation over time, the related performanceobligation is satisfied at a point in time by transferring the control of a promised good or service to a customer. ASC 606 requires us to select a single revenuerecognition method for the performance obligation that faithfully depicts our performance in transferring control of the goods and services. The guidanceallows for two methods to measure progress toward complete satisfaction of a performance obligation, depending on the facts and circumstances:51Output methods - recognize revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to daterelative to the remaining goods or services promised under the contract (e.g., surveys of performance completed to date, appraisals of results achieved,milestones reached, time elapsed, and units of produced or units delivered); andInput methods - recognize revenue on the basis of the entity’s efforts or inputs to the satisfaction of a performance obligation (e.g., resourcesconsumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to the satisfaction of that performance obligation.Licenses of intellectual property: If the license to our intellectual property is determined to be distinct from the other performance obligationsidentified in the arrangement, we must consider the nature of the intellectual property to which the customer will have rights (i.e., access at a point in time orbenefit of intellectual property enhancements over time). We recognize revenue from non-refundable, up-front fees allocated to the license at a point intime/over the period the license is transferred to the customer and the customer is able to use and benefit from the license. For licenses that are bundled withother promises, we utilize judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligationis satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. We evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenuerecognition.Milestone payments: At the inception of each arrangement that includes development and regulatory milestone payments for promised goods andservices, we evaluate the circumstances of whether the milestones will be reached and estimates the amount to be included in the transaction price that willnot cause a significant revenue reversal. We will evaluate these types of payments for customer options once those options have been exercised. ASC 606suggests two alternatives to use when estimating the amount of variable consideration: the expected value method and the most likely amount method.Under the expected value method, an entity considers the sum of probability-weighted amounts in a range of possible consideration amounts. Under the mostlikely amount method, an entity considers the single most likely amount in a range of possible consideration amounts. We will use the most likely amountmethod for development and regulatory milestone payments as management believes this method is the better predictor because we expect to be entitled toonly one of two possible amounts. Additionally, management believes that the most likely amount of milestone consideration is its stated amount. If it isprobable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. The transaction price is thenallocated to performance obligations on a specific basis or on a relative standalone selling price basis. We recognize revenue as or when the performanceobligations under the contract are satisfied. At the end of each subsequent reporting period, we re-evaluate whether it is probable that a significant revenuereversal will not occur in future periods, and if necessary, adjusts our estimates of the overall transaction price. Any such adjustments are recorded on acumulative catch-up basis, which would affect revenues and earnings in the period of adjustment.Royalties: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed tobe the predominant item to which the royalties relate, we recognize revenue at the later of: (1) when the related sales occur, or (2) when the performanceobligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied).Up-front payments: Up-front payments and fees are recorded as deferred revenue upon receipt or when due and may require deferral of revenuerecognition to a future period until we perform our obligations under these arrangements. Amounts payable to us are recorded as accounts receivable whenour right to consideration is unconditional. We do not assess whether a contract has a significant financing component if the expectation at contractinception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less.Preclinical and Clinical Trial AccrualsWe base our accrued expenses related to clinical trials on estimates of patient enrollment and related expenses at clinical investigator sites as well asestimates for services received and efforts expended pursuant to contracts with multiple research institutions and contract research organizations that conductand manage clinical trials on our52behalf. We make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to usand based on contracted amounts applied to the level of patient enrollment and activity according to the clinical trial protocol. If timelines or contracts aremodified based upon changes in the clinical trial protocol or scope of work to be performed, we modify our estimates of accrued expenses accordingly on aprospective basis.If we do not identify costs that we have begun to incur, or if we underestimate or overestimate the level of services performed or the costs of theseservices, our actual expenses could differ from our estimates.Results of OperationsYear Ended April 30, 2019 Compared to Year Ended April 30, 2018The following table sets forth the key components of our results of operations for the years ended April 30, 2019 and 2018: Years Ended April 30, Increase 2019 2018 (Decrease) (in thousands) Income Revenue $16,127 $8,394 $7,733 Operating Expenses Research and development expenses 35,021 18,237 16,784 General and administrative expenses 10,926 8,862 2,064 Other income Interest, exchange rate gain and other income 9,128 2,900 6,228 Revenue. Revenue was $16.1 million in the year ended April 30, 2019 compared to $8.4 million in the prior year. The increase of $7.7 million wasdue to $8.0 million of revenue from the Merck Option Agreement in the year ended April 30, 2019, which was offset by a decrease in grant revenue of $0.3million. We expect that our reported revenues will trend downwards towards the end of this calendar year as we approach completion of the services related tothe Option Agreement.Research and Development Expenses. Research and development expenses were $35.0 million in the year ended April 30, 2019 compared to$18.2 million in the prior year, primarily due to an increase in spending on the intravitreal program and the related continuation of the Phase 2 clinical trialand early stage research activities. The impact of exchange rates on research and development expenses was a decrease of approximately $0.8 millioncompared to the same period in the prior year.Research and development expenses by major programs or categories were as follows: Years Ended April 30, Increase 2019 2018 (Decrease) (in thousands) Intravitreal $10,169 $3,020 $7,149 237% Clinical stage oral programs 6,141 4,212 1,929 46% Additional oral programs 3,630 1,142 2,488 218% Early stage research activities 15,081 9,863 5,218 53% Total $35,021 $18,237 $16,784 92% Expenses for the intravitreal program were $10.2 million in the year ended April 30, 2019 compared to $3.0 million in the prior year due to theongoing of the Phase 2 clinical trial for KVD001. We anticipate that expenses53will continue at current levels over the short term and then trend downwards as the clinical trial for KVD001 heads towards completion in the middle of fiscalyear 2020. Expenses for the clinical stage oral programs were $6.1 million in the year ended April 30, 2019 compared to $4.2 million in the prior year due to theinitiation of the Phase 2 clinical trial for KVD900 and the commencement of the Phase 1 clinical trial for KVD824. We anticipate that expenses will continueto increase as the clinical trials continue for KVD900 and KVD824 in fiscal year 2020.Expenses for the additional oral programs were $3.6 million in the year ended April 30, 2019 compared to $1.1 million in the prior year due toexpenses incurred to advance KVD824 to a first-in-human study. We anticipate that expenses will continue at current levels or increase as we continue topursue additional preclinical oral drug candidates for our HAE and DME portfolios in fiscal year 2020.Expenses for early stage research activities were $15.1 million in the year ended April 30, 2019 compared to $9.9 million in the prior year due toincreased headcount and additional projects compared to the same period in the prior year. We anticipate that expenses will continue to increase as multipleprojects are assessed in discovery and drug candidates are advanced into early stage development.General and Administrative Expenses. General and administrative expenses were $10.9 million in the year ended April 30, 2019 compared to $8.9million in the prior year. The increase of $2.0 million was substantially due to an increase of $1.1 million in compensation expense, $0.4 million inprofessional fees, $0.2 million in depreciation expense and $0.3 million of other administrative expenses. We expect that these expenses will continue toincrease as we build our administrative infrastructure to support our expanded research and development organization.Other Income. Other income was $9.1 million for the year ended April 30, 2019 compared to $2.9 million for the prior year. The increase of $6.2million was primarily due to an increase of $1.6 million in foreign currency exchange rate gains from cash and accounts payable denominated in foreigncurrency, $1.3 million of interest income and $3.3 million in income from research and development tax credits due to an increase in tax credit eligiblespending during the year ended April 30, 2019. Year Ended April 30, 2018 Compared to Year Ended April 30, 2017The following table sets forth the key components of our results of operations for the years ended April 30, 2018 and 2017: Years Ended April 30, Increase 2018 2017 (Decrease) (in thousands) Income Revenue $8,394 $1,504 $6,890 Operating Expenses Research and development expenses 18,237 12,666 5,571 General and administrative expenses 8,862 11,177 (2,315)Other income Interest, exchange rate gain and other income 2,900 3,736 (836) Revenue. Revenue was $8.4 million in the year ended April 30, 2018 compared to $1.5 million in the prior year. The increase of $6.9 million was dueto $8.0 million of revenue from the Option Agreement in the year ended April 30, 2018, which was offset by a decrease in grant revenue of $1.1 million.Research and Development Expenses. Research and development expenses were $18.2 million in the year ended April30, 2018 compared to $12.7million in the prior year, primarily due to an increase in spending on the intravitreal, clinical stage oral programs, and early stage research activities whichwas somewhat offset by a54decrease in spending on our additional oral programs. The increase in expense also reflects an increase in the exchange rate of the British Pound Sterling(“GBP”), which is the currency in which most of our research and development expense is currently incurred. Approximately $0.7 million of the overallincrease in research and development expense was due to the increase in the exchange rates.Research and development expenses by major programs or categories were as follows: Years Ended April 30, Increase 2018 2017 (Decrease) (in thousands) Intravitreal $3,020 $571 $2,449 429% Oral 4,212 2,785 1,427 51% Additional oral programs 1,142 2,552 (1,410) -55% Early stage research activities 9,863 6,758 3,105 46% Total $18,237 $12,666 $5,571 44% Expenses for the intravitreal program were $3.0 million in the year ended April 30, 2018 compared to $0.6 million in the prior year due to theinitiation of a Phase 2 clinical trial for KVD001.Expenses for the clinical stage oral programs were $4.2 million in the year ended April 30, 2018 compared to $2.8 million in the prior year due to thecommencement of the first-in-human study for KVD900.Expenses for the additional oral programs were $1.1 million in the year ended April 30, 2018 compared to $2.6 million in the prior year due toKVD900 entering the clinical stage of development in the year ended April 30, 2018.Expenses for early stage research activities were $9.9 million in the year ended April 30, 2018 compared to $6.8 million in the prior year due toincreased headcount and additional projects compared to the same period in the prior year.General and Administrative Expenses. General and administrative expenses were $8.9 million in the year ended April 30, 2018 compared to $11.2million in the prior year. The decrease of $2.3 million was substantially due to a $3.8 million decrease in professional fees attributable to the Carbylantransaction, partially offset by increases in payroll and related expenses of $0.4 million, $0.5 million of stock-based compensation and $0.6 million of otheradministrative expenses.Other Income. Other income was $2.9 million for the year ended April 30, 2018 compared to $3.7 million for the prior year. The decrease of $0.8million was primarily due to a $2.8 million decrease in foreign currency exchange rate gains from cash and accounts payable denominated in foreigncurrency, which was partially offset by a $2.0 million increase in income from research and development tax credits due to an increase in tax credit eligiblespending during the year ended April 30, 2018. Liquidity and Capital ResourcesWe have incurred losses since inception and cash outflows from operating activities for the year ended April 30, 2019. As of April 30, 2019, we havereceived cumulative equity funding totaling $155.9 million, $37.0 million from the Option Agreement and grant income of $8.9 million. We have anaccumulated deficit of $92.5 million. We anticipate that we will continue to incur net losses for the foreseeable future as we continue the research anddevelopment efforts on our product candidates, hire additional staff, including clinical, scientific, operational, financial and management personnel, andincur additional costs associated with being a public company.55Cash FlowsThe following table shows a summary of the net cash flow activity for the years ended April 30, 2019 and 2018: Years Ended April 30, 2019 2018 (in thousands) Cash flows (used in) provided by operating activities $(36,365) $10,558 Cash flows (used in) provided by investing activities (69,422) (1,427)Cash flows provided by financing activities 87,943 8,986 Effect of exchange rate changes on cash (1,205) 1,988 Net (decrease) increase in cash and cash equivalents $(19,049) $20,105 Net cash (used in) provided by operating activitiesThe change in net cash used in operating activities resulted from the Merck Option Agreement, which provided $37.0 million of cash in the yearended April 30, 2018 and no cash in fiscal 2019. Exclusive of the proceeds from the Merck Option Agreement, the cash used in operations in fiscal 2018 was$26.4 million compared to cash used in operations of $36.4 million in fiscal 2019. The increase in fiscal 2019 is primarily attributable to increased operatingexpenses, offset by other income and increases in working capital.Net cash (used in) provided by investing activitiesNet cash used in investing activities for the year ended April 30, 2019 primarily consisted of $79.9 million of purchases of available for salesecurities and capital expenditures of $1.1 million offset by sales and maturities of available securities of $11.5 million. Net cash used by investing activitiesfor the year ended April 30, 2018 consisted of the acquisition of laboratory equipment and capital expenditures related to the offices in Cambridge,Massachusetts and Porton Down, United Kingdom.Net cash provided by financing activitiesNet cash provided by financing activities for the year ended April 30, 2019 primarily consisted of proceeds from the sale of common stock through aprivate placement transaction in August 2018 and a public offering in September 2018. Operating Capital RequirementsTo date, we have not generated any revenues from the sale of products and we do not have any products that have been approved forcommercialization. We do not expect to generate significant product revenue unless and until we obtain regulatory approval for, and commercialize, one ofour current or future product candidates. We anticipate that we will continue to incur losses for the foreseeable future, and we expect the losses to increase aswe continue the development of, and seek regulatory approvals for, product candidates, and begin to commercialize any approved products. We are subjectto all of the risks inherent in the development of new therapeutic products, and we may encounter unforeseen expenses, difficulties, complications, delaysand other unknown factors that may adversely affect our business. We currently anticipate that, based upon our operating plans and existing capitalresources, we have sufficient funding to operate for at least the next 12 months.Until such time, if ever, as we can generate substantial revenues, we expect to finance our cash needs through a combination of equity and debtfinancings, collaborations, strategic partnerships and licensing arrangements. To the extent that additional capital is raised through the sale of stock orconvertible debt securities, the ownership interest of existing stockholders will be diluted, and the terms of these newly issued securities may includeliquidation or other preferences that adversely affect the rights of common stockholders. Debt financing, if available, may involve agreements that includeincreased fixed payment obligations and covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, makingcapital expenditures, declaring dividends,56selling or licensing intellectual property rights and other operating restrictions that could adversely impact our ability to conduct business. Additionalfundraising through collaborations, strategic partnerships or licensing arrangements with third parties may require us to relinquish valuable rights to productcandidates, including our other technologies, future revenue streams or research programs, or grant licenses on terms that may not be favorable. If we areunable to raise additional funds when needed, we may be required to delay, limit, reduce or terminate product development or future commercializationefforts or grant rights to develop and commercialize its other product candidates even if we would otherwise prefer to develop and commercialize suchproduct candidates internally.Contractual Obligations and CommitmentsWe enter into contracts in the normal course of business with contract research organizations and clinical trial sites for the conduct of clinical trials,preclinical and clinical studies, professional consultants and other vendors for clinical supply manufacturing or other services. These contracts generallyprovide for termination on notice, and therefore are cancelable contracts and not included in the table of contractual obligations and commitments in Note 8to the consolidated financial statements. Contractual obligations related to the expected future costs to be incurred to complete the ongoing toxicologystudies and clinical trials, which have cancellation provisions, total $7.6 million at April 30, 2019. There were no long-term debt payment obligations as ofApril 30, 2019.The table below summarizes our non-cancelable lease commitments: Payments Due by Period (In thousands) Contractual ObligationsTotal Less Than 1Year 1-3 Years 3-5 Years More Than 5Years Lease obligations$2,232 $741 $802 $291 $398 As a result of the terms of grant income received in prior years, upon successful regulatory approval and following the first commercial sale of certainproducts, we will be required to pay royalty fees of up to $1 million within 90 days of the first commercial sale of the product subject to certain caps andfollow on payments depending upon commercial success and type of product. Given the stage of development of the current pipeline of products it is notpossible to predict with certainty the amount or timing of any such liability.Off-Balance Sheet ArrangementsWe do not have any off-balance sheet arrangements as defined in the rules and regulations of the SEC.Recent Accounting PronouncementsFor information regarding recent accounting pronouncements, please refer to Note 2, Summary of Significant Accounting Policies within ourconsolidated financial statements.Item 7A. Quantitative and Qualitative Disclosures About Market Risk.Interest Rate RiskBecause of the short-term nature of the bank deposit arrangements and the very low interest rates prevailing in the United Kingdom and the UnitedStates, a sudden change in market interest rates would not be expected to have a material impact on our financial condition and/or results of operations. Wedo not believe that our cash or cash equivalents have significant risk of default or illiquidity.We invest in marketable securities in accordance with our investment policy. The primary objectives of our investment policy are to preserve capital,maintain proper liquidity to meet operating needs and maximize yields. We place our excess cash with high credit quality financial institutions, commercialcompanies, and government agencies in order to limit the amount of credit exposure. Some of the securities we invest in may have market risk. This meansthat a change in prevailing interest rates may cause the principal amount of the investment to fluctuate.57Our investment exposure to market risk for changes in interest rates relates to the increase or decrease in the amount of interest income we can earn onour portfolio, changes in the market value due to changes in interest rates and other market factors as well as the increase or decrease in any realized gains andlosses. Our investment portfolio includes only marketable securities and instruments with active secondary or resale markets to help ensure portfolioliquidity. An increase or decrease in interest rates along the entire interest rate yield curve would not significantly affect the fair value of our interest sensitivefinancial instruments, but may affect our future earnings and cash flows. We generally have the ability to hold our fixed income investments to maturity andtherefore do not expect that our operating results, financial position or cash flows will be materially impacted due to a sudden change in interest rates.However, our future investment income may fall short of expectations due to changes in interest rates, or we may suffer losses in principal if forced to sellsecurities which have declined in market value due to changes in interest rates or other factors, such as changes in credit risk related to the securities’ issuers.To minimize this risk, we schedule our investments to have maturities that coincide with our expected cash flow needs, thus avoiding the need to redeem aninvestment prior to its maturity date. Accordingly, we do not believe that we have material exposure to interest rate risk arising from our investments. Wehave not realized any significant losses from our investments.Foreign Exchange Rate RiskWe maintain cash balances primarily in both USD and GBP to fund ongoing operations and manage foreign exchange risk. Cash, cash equivalentsand available for sale securities as of April 30, 2019 was composed of $32 million in cash and cash equivalents which consisted of readily available checkingand bank deposit accounts held primarily in both USD and GBP and $68.8 million of marketable securities. As of April 30, 2019, 88% of cash and cashequivalents were held in USD and 12% in GBP. We currently incur significant expense primarily in GBP and convert USD as needed to fund those expenses.We do not currently engage in exchange rate hedging or other similar activities to address our exchange rate risk. A 10% change in the exchange rate wouldresult in an immaterial net gain or loss.Effects of InflationWe do not believe that inflation and changing prices had a significant impact on the results of operations for any periods presented herein.Item 8. Financial Statements and Supplementary Data.The financial statements required to be filed are listed in Item 15 and incorporated herein by reference.58Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.None.Item 9A. Controls and Procedures.Evaluation of Disclosure Controls and ProceduresAs required by Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), our management, under the supervisionand with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of ourdisclosure controls and procedures as of April 30, 2019. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under theExchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in thereports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rulesand forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to bedisclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management,including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure. Managementrecognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectivesand management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation ofour disclosure controls and procedures as of April 30, 2019 our Chief Executive Officer and Chief Financial Officer have concluded that, as of April 30, 2019,our disclosure controls and procedures were effective at the reasonable assurance level.Management’s Annual Report on Internal Control Over Financial ReportingOur management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financialreporting is defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the supervision of, ourprincipal executive and principal financial officers and effected by our board of directors, management and other personnel to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP. Our internalcontrol over financial reporting includes those policies and procedures that: •pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of our assets; •provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S.GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and •provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that couldhave a material effect on our financial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systemsdetermined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Projections of anyevaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degreeof compliance with the policies or procedures may deteriorate.Our management, with the participation of our principal executive officer and principal financial officer, assessed the effectiveness of our internalcontrol over financial reporting as of April 30, 2019. In making this assessment, management used the criteria set forth by the Committee of SponsoringOrganizations of the Treadway Commission (COSO) in its 2013 Internal Control – Integrated Framework. Based on our assessment, our management hasconcluded that, as of April 30, 2019, our internal control over financial reporting is effective based on those criteria.59This Annual Report on Form 10-K does not include an attestation report of our registered public accounting firm regarding internal control overfinancial reporting. For as long as we remain an “emerging growth company” as defined in Section 2(a) of the Securities Act of 1933, or the Securities Act, asmodified by the Jumpstart Our Business Startups Act of 2012, we intend to take advantage of the exemption permitting us not to comply with therequirement that our independent registered public accounting firm provide an attestation on the effectiveness of our internal control over financialreporting.Changes in Internal Controls over Financial ReportingThere were no changes in our internal control over financial reporting that occurred during the quarter ended April 30, 2019 that have materiallyaffected, or are reasonably likely to materially affect, our internal control over financial reporting. Item 9B. Other Information.None.60PART IIIItem 10. Directors, Executive Officers and Corporate Governance.The information required by the Item is set forth in our 2019 Proxy Statement to be filed with the SEC within 120 days of April 30, 2019, and isincorporated by reference into this Annual Report on Form 10-K.Item 11. Executive Compensation.The information required by the Item is set forth in our 2019 Proxy Statement to be filed with the SEC within 120 days of April 30, 2019, and isincorporated by reference into this Annual Report on Form 10-K.Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.The information required by the Item is set forth in our 2019 Proxy Statement to be filed with the SEC within 120 days of April 30, 2019, and isincorporated by reference into this Annual Report on Form 10-K.Item 13. Certain Relationships and Related Transactions, and Director Independence.The information required by the Item is set forth in our 2019 Proxy Statement to be filed with the SEC within 120 days of April 30, 2019, and isincorporated by reference into this Annual Report on Form 10-K.Item 14. Principal Accounting Fees and Services.The information required by the Item is set forth in our 2019 Proxy Statement to be filed with the SEC within 120 days of April 30, 2019, and isincorporated by reference into this Annual Report on Form 10-K.61PART IVItem 15. Exhibits, Financial Statement Schedules. (a)The following documents are filed as part of, or incorporated by reference into, this Annual Report on Form 10-K: (1)Consolidated Financial Statements. See Index to Financial Statements beginning on page F-1 of this Annual Report, which areincorporated by reference. (2)Financial Statement Schedules. All schedules have been omitted because the information required to be presented in them is notapplicable or is shown in the financial statements or related notes. (3)Exhibits. We have filed, or incorporated into this Annual Report on Form 10-K by reference, the exhibits listed on the accompanyingExhibit Index. (b)Exhibits. Incorporated by reference ExhibitNumber Description of Document Form FileNo. Exhibit Filing Date FiledHerewith3.1 Amended and Restated Certificate of Incorporation. S-1/A 333-201278 3.2 January 23, 2015 3.2 Certificate of Amendment of Amended and RestatedCertificate. 8-K 001-36830 3.1 November 23,2016 3.3 Certificate of Amendment of Amended and RestatedCertificate. 8-K 001-36830 3.2 November 23,2016 3.4 Amended and Restated Bylaws. 8-K 001-36830 3.2 April 16, 2015 4.1 Form of Common Stock Certificate. S-1/A 333-201278 4.2 January 23, 2015 4.2 Registration Rights Agreement, dated June 15, 2016, byand among the Registrant and the Sellers. 8-K 001-36930 10.1 November 23,2016 10.1# Form of Indemnification Agreement. S-1 333-201278 10.14 December 29, 2014 10.2# Carbylan 2015 Incentive Plan and forms of awardagreements. S-1/A 333-201278 10.3 January 23, 2015 10.3# 2017 Equity Incentive Plan. DEF 14A 001-36830 Appendix A March 2, 2017 10.4# 2017 Employee Stock Purchase Plan. DEF 14A 001-36830 Appendix B March 2, 2017 10.5# Amended and Restated Employment Agreementbetween the Registrant and T. Andrew Crockett, datedJune 26, 2019. X10.6# Amended and Restated Employment Agreementbetween the Registrant and Benjamin L. Palleiko, datedJune 26, 2019. X10.7 Forms of Equity Agreements. 8-K 001-36830 99.1 June 29, 2018 10.8 Office Lease Agreement by and between the Registrantand 55 Cambridge Parkway, LLC, dated May 30, 2017. 10-K 001-36830 10.12 July 27, 2017 10.9 Underlease by and between the Registrant and WiltshireCouncil, dated April 30, 2018. 8-K 001-36830 10.1 May 2, 2018 62 Incorporated by reference ExhibitNumber Description of Document Form FileNo. Exhibit Filing Date FiledHerewith10.10 Option Agreement, dated October 6, 2017, by andbetween KalVista Pharmaceuticals Limited and MerckSharp & Dohme Corp. 10-Q 001-36830 10.1 December 14, 2017 10.11 Stock Purchase Agreement, dated October 6, 2017, byand between the Registrant and Merck Sharp & DohmeCorp. 10-Q 001-36830 10.2 December 14, 2017 10.12 Voting Agreement, dated October 6, 2017, by andbetween the Registrant and Merck Sharp & DohmeCorp. 10-Q 001-36830 10.3 December 14, 2017 10.13# Amended and Restated Executive EmploymentAgreement dated June 26, 2019, by and between theRegistrant and Andreas Maetzel. X10.14# Forms of Equity Agreements under the 2017 EquityIncentive Plan. 8-K 001-36830 99.1 June 29, 2018 10.15# Service Agreement dated November 1, 2015, by andbetween KalVista Pharmaceuticals Ltd and Dr.Christopher M. Yea. 10-K 001-36830 10.15 July 27, 2018 10.16 Form of Subscription, dated July 30, 2018. 8-K 001-36830 10.1 August 1, 2018 10.17# Amendment, dated January 31, 2019, to the ServiceAgreement dated November 1, 2015 by and betweenKalVista Pharmaceuticals Ltd and Dr. Christopher M.Yea. 10-Q 001-36830 10.1 March 14, 2019 10.18# Equity Acceleration Letter, dated March 11, 2019 byand between KalVista Pharmaceuticals Ltd and Dr.Christopher M. Yea 10-Q 001-36830 10.2 March 14, 2019 10.19 Sales Agreement dated March 29, 2019 by and betweenKalVista Pharmaceuticals Ltd and Cantor Fitzgerald &Co. 8-K 001-36830 1.1 March 29, 2019 10.21# Amended and Restated Executive EmploymentAgreement by and between Registrant and EdwardFeener X10.22# Executive Employment Agreement by and betweenRegistrant and Michael Smith X10.23# Amendment, dated June 26, 2019, to the ServiceAgreement dated November 1, 2015 by and betweenKalVista Pharmaceuticals Ltd and Dr. Christopher M.Yea. X10.24 Description of the Registrant’s Securities X21.1 Subsidiary of the Registrant. 10-K 001-36830 21.1 July 27, 2017 23.1 Consent of Deloitte & Touche LLP. X24.1 Power of Attorney. (See signature page hereto.) X63 Incorporated by reference ExhibitNumber Description of Document Form FileNo. Exhibit Filing Date FiledHerewith31.1 Certification of Principal Executive Officer, pursuant toRule 13a-14(a)/15d-14(a), as adopted pursuant toSection 302 of the Sarbanes-Oxley Act of 2002. X31.2 Certification of Principal Financial Officer, pursuant toRule 13a-14(a)/15d-14(a), as adopted pursuant toSection 302 of the Sarbanes-Oxley Act of 2002. X32.1* Certification of Chief Executive Officer, pursuant to 18U.S.C. Section 1350, as adopted pursuant to Section906 of the Sarbanes-Oxley Act of 2002. X32.2* Certification of Chief Financial Officer, pursuant to 18U.S.C. Section 1350, as adopted pursuant to Section906 of the Sarbanes-Oxley Act of 2002. X101.INS XBRL Instance Document. X101.SCH XBRL Taxonomy Extension Schema Document. X101.CAL XBRL Taxonomy Extension Calculation LinkbaseDocument. X101.DEF XBRL Taxonomy Extension Definition LinkbaseDocument. X101.LAB XBRL Taxonomy Extension Labels LinkbaseDocument. X101.PRE XBRL Taxonomy Extension Presentation LinkbaseDocument. X #Management contract or compensatory plan or arrangement.*This certification is deemed not filed for purpose of section 18 of the Exchange Act or otherwise subject to the liability of that section, nor shall it bedeemed incorporated by reference into any filing under the Securities Act or the Exchange Act.**All schedules and exhibits to the Share Purchase Agreement have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omittedschedule and/or exhibit will be furnished to the Securities and Exchange Commission upon request.Item 16. Form 10-K Summary.None.64SIGNATURESPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report tobe signed on its behalf by the undersigned, thereunto duly authorized. KalVista Pharmaceuticals, Inc. Date: July 15, 2019 By:/s/ T. Andrew Crockett T. Andrew Crockett Chief Executive Officer Date: July 15, 2019 By:/s/ Benjamin L. Palleiko Benjamin L. Palleiko Chief Business Officer and Chief Financial Officer POWER OF ATTORNEYEach person whose individual signature appears below hereby authorizes and appoints Thomas Andrew Crockett and Benjamin L. Palleiko, and eachof them, with full power of substitution and resubstitution and full power to act without the other, as his or her true and lawful attorney-in-fact and agent toact in his or her name, place and stead and to execute in the name and on behalf of each person, individually and in each capacity stated below, and to fileany and all amendments to this annual report on Form 10-K and to file the same, with all exhibits thereto, and other documents in connection therewith, withthe Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform eachand every act and thing, ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his substitute or substitutes may lawfullydo or cause to be done by virtue thereof.Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Report has been signed below by the following persons onbehalf of the Registrant in the capacities and on the dates indicated. Name Title Date /s/ T. Andrew Crockett Chief Executive Officer and Director July 15, 2019T. Andrew Crockett (Principal Executive Officer) /s/ Benjamin L Palleiko Chief Business Officer and Chief Financial Officer July 15, 2019Benjamin L. Palleiko (Principal Financial and Accounting Officer) /s/ Martin Edwards Director and Chairman July 15, 2019Martin Edwards, M.D. /s/ Albert Cha Director July 15, 2019Albert Cha, M.D., Ph.D. /s/ Arnold Oronsky Director July 15, 2019Arnold L. Oronsky, Ph.D. /s/ Brian J.G. Pereira Director July 15, 2019Brian J.G. Pereira, M.D. /s/ Daniel Soland Director July 15, 2019Daniel Soland /s/ Edward W. Unkart Director July 15, 2019Edward W. Unkart 65KALVISTA PHARMACEUTICALS, INC.INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Reports of Independent Registered Public Accounting FirmF-2Consolidated Balance SheetsF-3Consolidated Statements of Operations and Comprehensive LossF-4Consolidated Statements of Changes in Convertible Preferred Shares and Stockholders’ Equity (Deficit)F-5Consolidated Statements of Cash FlowsF-7Notes to Consolidated Financial StatementsF-8 F-1REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the stockholders and the Board of Directors of KalVista Pharmaceuticals, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of KalVista Pharmaceuticals, Inc. and subsidiaries (the "Company") as of April 30, 2019 and2018, the related consolidated statements of operations and comprehensive loss, changes in convertible preferred shares and stockholders’ equity (deficit),and cash flows for each of the three years in the period ended April 30, 2019, and the related notes (collectively referred to as the "financial statements"). Inour opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of April 30, 2019 and 2018, and theresults of its operations and its cash flows for each of the three years in the period ended April 30, 2019, in conformity with accounting principles generallyaccepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financialstatements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations ofthe Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, norwere we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding ofinternal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control overfinancial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, andperforming procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures inthe financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well asevaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ Deloitte & Touche LLPBoston, Massachusetts July 15, 2019We have served as the Company's auditor since 2016. F-2KALVISTA PHARMACEUTICALS, INC.Consolidated Balance SheetsApril 30, 2019 and 2018(in thousands except share and per share amounts) 2019 2018 Assets Current assets: Cash and cash equivalents $32,006 $51,055 Marketable securities 68,805 — Research and development tax credit receivable 11,315 6,834 Prepaid expenses and other current assets 3,420 1,491 Total current assets 115,546 59,380 Other assets 173 173 Property and equipment, net 2,413 1,836 Total assets $118,132 $61,389 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $2,860 $1,433 Accrued expenses 5,593 3,087 Deferred revenue - current portion 9,545 18,475 Capital lease liability - current portion 54 221 Total current liabilities 18,052 23,216 Long-term liabilities: Deferred revenue - net of current portion 3,342 10,862 Capital lease liability - net of current portion — 58 Total long-term liabilities 3,342 10,920 Commitments and contingencies (Note 8) Stockholders’ equity: Common stock, $0.001 par value, 100,000,000 authorized Shares issued and outstanding: 17,277,750 at April 30, 2019 and 10,799,895 at April 30, 2018 17 11 Additional paid-in capital 191,123 100,011 Accumulated deficit (92,476) (71,660)Accumulated other comprehensive loss (1,926) (1,109)Total stockholders’ equity 96,738 27,253 Total liabilities and stockholders’ equity $118,132 $61,389 See notes to consolidated financial statements. F-3KALVISTA PHARMACEUTICALS, INC.Consolidated Statements of Operations and Comprehensive LossYears Ended April 30, 2019, 2018 and 2017(in thousands, except share and per share amounts) 2019 2018 2017 Revenue $16,127 $8,394 $1,504 Operating expenses: Research and development expenses 35,021 18,237 12,666 General and administrative expenses 10,926 8,862 11,177 Total operating expenses 45,947 27,099 23,843 Operating loss (29,820) (18,705) (22,339)Other income: Interest income 1,397 82 36 Foreign currency exchange rate gain (loss) 49 (1,574) 1,371 Other income 7,682 4,392 2,329 Total other income 9,128 2,900 3,736 Loss before income taxes (20,692) (15,805) (18,603)Income tax expense 124 — — Net loss (20,816) (15,805) (18,603)Other comprehensive income (loss): Foreign currency translation adjustments (1,257) 1,534 (2,568)Unrealized holding gains on available-for-sale securities 440 — — Comprehensive loss $(21,633) $(14,271) $(21,171)Net loss per share, basic and diluted $(1.38) $(1.53) $(4.47)Weighted average common shares outstanding, basic and diluted 15,080,863 10,321,780 4,646,764 See notes to consolidated financial statements. F-4 KALVISTA PHARMACEUTICALS, INC.Consolidated Statements of Changes in Convertible Preferred Shares and Stockholders’ Equity (Deficit)Years Ended April 30, 2019, 2018 and 2017(in thousands, except share and per share amounts) Series BPreferred Stock Series APreferred Stock Total Preferred Stock Number ofShares Amount Number ofShares Amount Shares Amount Balance, May 1, 2016 8,422,898 $33,002 15,900,000 $25,606 24,322,898 $58,608 Issuance of ordinary shares — — — Carbylan transaction (8,422,898) (33,002) (15,900,000) (25,606) (24,322,898) (58,608)Stock-based compensation expense — — — — — — Net loss — — — — — — Foreign currency translation adjustments — — — — — — Balance, April 30, 2017 — — — — — — Issuance of common stock — — — — — — Issuance of common stock from stock optionsexercised — — — — — — Stock-based compensation expense — — — — — — Net loss — — — — — — Foreign currency translation adjustments — — — — — — Balance, April 30, 2018 — — — — — — Issuance of common stock — — — — — — Issuance of common stock from stock optionsexercised — — — — — — Stock-based compensation expense — — — — — — Net loss — — — — — Foreign currency translation adjustments — — — — — — Unrealized holding gains from available-for-salesecurities — — — — — — Balance, April 30, 2019 — $— — $— $— $— F-5 Accumulated Additional Other Total Ordinary Shares Common Stock Paid-in Accumulated Comprehensive Stockholders’ Shares Amount Shares Amount Capital Deficit Income (Loss) Equity(Deficit) Balance, May 1, 2016 2,167,367 $3 — $— $212 $(37,252) $(75) $(37,112)Issuance of ordinary shares 396,719 2 — — — — — 2 Carbylan transaction (2,564,086) (5) 9,713,042 10 89,209 — — 89,214 Stock-based compensation expense — — — — 394 — — 394 Net loss — — — — — (18,603) — (18,603)Foreign currency translationadjustments — — — — — — (2,568) (2,568)Balance, April 30, 2017 — — 9,713,042 10 89,815 (55,855) (2,643) 31,327 Issuance of common stock — — 1,070,589 1 9,100 — — 9,101 Issuance of common stock from stockoptions exercised — — 16,264 — 36 — — 36 Stock-based compensation expense — — — — 1,060 — — 1,060 Net loss — — — — — (15,805) — (15,805)Foreign currency translationadjustments — — — — — — 1,534 1,534 Balance, April 30, 2018 — — 10,799,895 11 100,011 (71,660) (1,109) 27,253 Issuance of common stock — — 6,382,320 6 87,904 — — 87,910 Issuance of common stock fromemployee awards exercised — — 95,535 — 242 — — 242 Stock-based compensation expense — — — — 2,966 — — 2,966 Net loss — — — — — (20,816) — (20,816)Foreign currency translationadjustments — — — — — — (1,257) (1,257)Unrealized holding gains fromavailable-for-sale securities — — — — — — 440 440 Balance, April 30, 2019 — $— 17,277,750 $17 $191,123 $(92,476) $(1,926) $96,738 See notes to consolidated financial statements. F-6 KALVISTA PHARMACEUTICALS, INC.Consolidated Statements of Cash FlowsYears Ended April 30, 2019, 2018 and 2017(in thousands) 2019 2018 2017 Cash flows from operating activities: Net loss $(20,816) $(15,805) $(18,603)Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 378 180 40 Stock-based compensation expense 2,966 1,060 394 Realized (gain) loss from available for sale securities (23) — — Foreign currency remeasurement loss (80) (651) (1,371)Changes in operating assets and liabilities, net of changes from business acquired: Research and development tax credit receivable (4,883) (4,256) (600)Grants and other receivables — 319 29 Prepaid expenses and other current assets (1,979) (746) (81)Other assets — (123) — Accounts payable 1,534 217 (1,599)Accrued expenses 2,665 1,132 (1,931)Deferred revenue (16,127) 29,231 — Net cash provided by (used in) operating activities (36,365) 10,558 (23,722)Cash flows from investing activities: Cash acquired in transaction — — 34,139 Purchases of available for sale securities (79,889) — — Sales and maturities of available for sale securities 11,548 — — Acquisition of property and equipment (1,081) (1,427) (74)Net cash provided by (used in) investing activities (69,422) (1,427) 34,065 Cash flows from financing activities: Proceeds from issuance of common stock, net of issuance costs of $4,390 in the yearended April 30, 2019 87,910 9,137 — Proceeds from issuance of common stock from exercise of stock options 242 — 2 Capital lease principal payments (209) (151) — Net cash provided by financing activities 87,943 8,986 2 Effect of exchange rate changes on cash and cash equivalents (1,205) 1,988 (1,159)Net (decrease) increase in cash and cash equivalents (19,049) 20,105 9,186 Cash and cash equivalents, beginning year 51,055 30,950 21,764 Cash and cash equivalents, end of year $32,006 $51,055 $30,950 Supplemental disclosures of cash flow information: Conversion of preferred stock and ordinary shares to common stock $— $— $58,613 Capital leases $— $513 $— Acquisition of property and equipment in accounts payable $— $291 $— See notes to consolidated financial statements. F-7 KALVISTA PHARMACEUTICALS, INC.Notes to Consolidated Financial StatementsNote 1. Description of Business, Basis of Presentation and Going ConcernKalVista Pharmaceuticals, Inc. (“KalVista” or the “Company”) is a clinical stage pharmaceutical company focused on the discovery, developmentand commercialization of small molecule protease inhibitors for diseases with significant unmet need. The Company’s first product candidates are inhibitorsof plasma kallikrein being developed for two indications: hereditary angioedema (“HAE”) and diabetic macular edema (“DME”). The Company applies itsinsights into the chemistry of proteases and, with current programs, the biology of the plasma kallikrein system, to develop small molecule inhibitors withhigh selectivity, potency and bioavailability that it believes will make them successful treatments for disease.KalVista has created a structurally diverse portfolio of oral plasma kallikrein inhibitors and advanced multiple drug candidates into clinical trials inorder to create best-in-class oral therapies for both HAE and DME. In December 2018, the Company initiated a Phase 2 clinical study of KVD900 as apotential on-demand therapy for acute HAE attacks. This study is expected to complete in late 2019. In the case of DME, the Company is initiallydeveloping a plasma kallikrein inhibitor which is administered directly into the eye and anticipates ultimate development of orally delivered drugs. InDecember 2017 KalVista commenced a Phase 2 clinical trial of KVD001, the Company’s most advanced DME drug candidate, that it anticipates willcomplete in the second half of 2019.On November 21, 2016, KalVista Pharmaceuticals Limited (“KalVista Limited”), completed a share purchase transaction with Carbylan TherapeuticsInc. (“Carbylan”). Following the completion of the transaction, the Company was renamed KalVista Pharmaceuticals, Inc. and KalVista Limited became awholly-owned subsidiary of the Company. The business being conducted by the Company became primarily the business conducted by KalVista Limitedand KalVista Limited was identified as the acquirer for accounting purposes. The Company’s financial statement presentation reflects the business ofKalVista Limited for the periods prior to November 21, 2016 and the combined results of operations of KalVista Limited and Carbylan for the periodsthereafter. The results of operations of the Carbylan business in the periods subsequent to acquisition date are not material.In October 2017, KalVista Limited and Merck Sharp & Dohme Corp. (“Merck”) entered into an option agreement (the “Option Agreement”) underwhich the Company granted to Merck an option to acquire KVD001 through a period following completion of a Phase 2 clinical trial. The Company alsogranted to Merck a similar option to acquire investigational orally delivered molecules for DME (the “Oral DME Compounds”) that the Company willcontinue to develop as part of its ongoing research and development activities, through a period following the completion of a Phase 2 clinical trial. Underthe terms of the Option Agreement, Merck paid to the Company a non-refundable upfront fee of $37 million in November 2017. See Note 6 for furtherdiscussion of the arrangement with Merck.The Company’s headquarters is located in Cambridge, Massachusetts, with research activities located in Porton Down, United Kingdom and Boston,Massachusetts.The Company has devoted substantially all of its efforts to research and development, including clinical trials of its product candidates. TheCompany has not completed the development of any product candidates. Pharmaceutical drug product candidates, like those being developed by theCompany, require approvals from the U.S. Food and Drug Administration (“FDA”) or foreign regulatory agencies prior to commercial sales. There can be noassurance that any product candidates will receive the necessary approvals and any failure to receive approval or delay in approval may have a materialadverse impact on the Company’s business and financial results. The Company has not yet commenced commercial operations. The Company is subject to anumber of risks and uncertainties similar to those of other life science companies developing new products, including, among others, the risks related to thenecessity to obtain adequate additional financing, to successfully develop product candidates, to obtain regulatory approval of product candidates, tocomply with government regulations, to successfully commercialize its potential products, to the protection of proprietary technology and to the dependenceon key individuals.F-8 The Company has funded its operations primarily through the issuance of stock, the Option Agreement, the share purchase transaction with Carbylan,and grant income. As of April 30, 2019, the Company had an accumulated deficit of $92.5 million and cash, cash equivalents and available for sale securitiestotaling $100.8 million. The Company’s working capital, primarily cash, is anticipated to fund the Company’s operations for at least 12 months beyond thedate of issuance of the consolidated financial statements. Accordingly, the consolidated financial statements have been prepared on a going concern basis.The Company will need to expend substantial resources for research and development, including costs associated with the clinical testing of itsproduct candidates and will need to obtain additional financing to fund its operations and to conduct trials for its product candidates. The Company willseek to finance future cash needs through equity offerings, future grants, corporate partnerships and product sales.The Company has never been profitable and has incurred significant operating losses in each year since inception. Cash requirements may varymaterially from those now planned because of changes in the Company’s focus and direction of its research and development programs, competitive andtechnical advances, patent developments, regulatory changes or other developments. Additional financing will be required to continue operations after theCompany exhausts its current cash resources and to continue its long-term plans for clinical trials and new product development. There can be no assurancethat any such financing can be obtained by the Company, or if obtained, what the terms thereof may be, or that any amount that the Company is able to raisewill be adequate to support the Company’s working capital requirements until it achieves profitable operations. If adequate additional working capital is notsecured when needed, the Company may be required to make reductions in spending, extend payment terms with suppliers, liquidate assets where possibleand/or suspend or curtail planned research programs. Any of these actions could materially harm the Company’s business and prospects.Note 2. Summary of Significant Accounting PoliciesPrinciples of consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly ownedsubsidiaries. All intercompany balances and transactions have been eliminated in consolidation.Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the consolidatedfinancial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.Foreign currency: The functional currency of the Company’s foreign subsidiary is the Great Britain Pound Sterling. Assets and liabilities of theforeign subsidiary are translated using the exchange rate existing on each respective balance sheet date. Revenues and expenses are translated using averageexchange rates prevailing throughout the year. The translation adjustments resulting from this process are included as a component of the accumulated othercomprehensive loss. In addition, the Company’s foreign subsidiary engages in transactions and holds balances denominated and settled in currencies otherthan the functional currency, and transaction gains or losses are recorded in the consolidated statement of operations.Segment Reporting: The chief operating decision maker, the CEO, manages the Company’s operations as a single operating segment for thepurposes of assessing performance and making operating decisions.Cash and cash equivalents: Cash and cash equivalents consist of bank deposits and money market accounts. Cash equivalents are carried at costwhich approximates fair value due to their short-term nature. The Company considers all highly-liquid investments with an original maturity of 90 days orless to be cash equivalents.The Company maintains its cash and cash equivalent balances with financial institutions that management believes are of high credit quality. TheCompany’s cash and cash equivalent accounts at times may exceed federally insured limits. The Company has not experienced any losses in such accounts.The Company believes it is not exposed to any significant credit risk of cash and cash equivalents.F-9 Research and development tax credit receivable: The research and development tax credit receivable consists of research and developmentexpenses that have been claimed as research and development tax credits in accordance with the relevant U.K. tax legislation. These refundable tax creditsare payable to the Company in cash and are carried on the consolidated balance sheet at the amount claimed and expected to be received from the U.K.government.Property and equipment: Property and equipment are stated at cost less accumulated depreciation. Expenditures for repairs and maintenance arecharged to expense as incurred. Upon retirement or sale, the costs of the assets disposed of and the related accumulated depreciation are eliminated from theaccounts and any resulting gain or loss is reflected in the statement of operations. Depreciation is provided using the straight-line method over the estimateduseful lives of the assets, which are as follows: Asset Classification Estimated Useful LifeMachinery and equipment 1-5 YearsComputer equipment 3-4 YearsMotor vehicles 4 YearsLeasehold improvements 5 Years or term of lease, if shorter The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of suchassets, or asset groups, may not be recoverable. Whenever events or changes in circumstances suggest that the carrying amount of long-lived assets may notbe recoverable, the future undiscounted cash flows expected to be generated by the asset, or asset groups, from its use or eventual disposition is estimated. Ifthe sum of the expected future undiscounted cash flows is less than the carrying amount of those assets, or asset groups, an impairment loss is recognizedbased on the excess of the carrying amount over the fair value of the assets, or asset groups.Revenue recognition: The Company recognizes revenue from research and development arrangements and grant income. In accordance withAccounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers,” revenue is recognized when a customer obtains control ofpromised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchangefor these goods and services.Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are bothcapable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other available resources, and aredistinct in the context of the contract, whereby the transfer of the good or service is separately identifiable from other promises in the contract. To the extent acontract includes multiple promised goods and services, the Company must apply judgment to determine whether promised goods and services are capable ofbeing distinct and distinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combinedperformance obligation.The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods and servicesto the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that shouldbe included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variableconsideration. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal ofcumulative revenue under the contract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at eachreporting period for any changes.If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts thatcontain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative standalone selling pricebasis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service thatF-10 forms part of a single performance obligation. The consideration to be received is allocated among the separate performance obligations based on relativestandalone selling prices.The Company satisfies performance obligations either over time or at a point in time. Revenue is recognized over time if either: (1) the customersimultaneously receives and consumes the benefits provided by the entity’s performance (2) the entity’s performance creates or enhances an asset that thecustomer controls as the asset is created or enhanced or (3) the entity’s performance does not create an asset with an alternative use to the entity and the entityhas an enforceable right to payment for performance completed to date. If the entity does not satisfy a performance obligation over time, the relatedperformance obligation is satisfied at a point in time by transferring the control of a promised good or service to a customer. ASC 606 requires the Companyto select a single revenue recognition method for the performance obligation that faithfully depicts the Company’s performance in transferring control of thegoods and services. The guidance allows for two methods to measure progress toward complete satisfaction of a performance obligation, depending on thefacts and circumstances:Output methods - recognize revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to daterelative to the remaining goods or services promised under the contract (e.g., surveys of performance completed to date, appraisals of results achieved,milestones reached, time elapsed, and units of produced or units delivered); andInput methods - recognize revenue on the basis of the entity’s efforts or inputs to the satisfaction of a performance obligation (e.g., resourcesconsumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to the satisfaction of that performance obligation.Licenses of intellectual property: If the license to the Company’s intellectual property is determined to be distinct from the other performanceobligations identified in the arrangement, the Company must consider the nature of the intellectual property to which the customer will have rights (i.e.,access at a point in time or benefit of intellectual property enhancements over time). The Company recognizes revenue from non-refundable, up-front feesallocated to the license at a point in time/over the period the license is transferred to the customer and the customer is able to use and benefit from the license.For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determinewhether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress forpurposes of recognizing revenue from non-refundable, up-front fees. The Company evaluates the measure of progress each reporting period and, if necessary,adjusts the measure of performance and related revenue recognition.Milestone payments: At the inception of each arrangement that includes development and regulatory milestone payments for promised goods andservices, the Company evaluates the circumstances of whether the milestones will be reached and estimates the amount to be included in the transaction pricethat will not cause a significant revenue reversal. The Company will evaluate these types of payments for customer options once those options have beenexercised. ASC 606 suggests two alternatives to use when estimating the amount of variable consideration: the expected value method and the most likelyamount method. Under the expected value method, an entity considers the sum of probability-weighted amounts in a range of possible considerationamounts. Under the most likely amount method, an entity considers the single most likely amount in a range of possible consideration amounts. TheCompany will use the most likely amount method for development and regulatory milestone payments as management believes this method is the betterpredictor because the Company expects to be entitled to only one of two possible amounts. Additionally, management believes that the most likely amountof milestone consideration is its stated amount. If it is probable that a significant revenue reversal would not occur, the associated milestone value is includedin the transaction price. The transaction price is then allocated to performance obligations on a specific basis or on a relative standalone selling price basis.The Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, theCompany re-evaluates whether it is probable that a significant revenue reversal will not occur in future periods, and if necessary, adjusts its estimates of theoverall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period ofadjustment.Royalties: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed tobe the predominant item to which the royalties relate, the CompanyF-11 recognizes revenue at the later of: (1) when the related sales occur, or (2) when the performance obligation to which some or all of the royalty has beenallocated has been satisfied (or partially satisfied).Up-front payments: Up-front payments and fees are recorded as deferred revenue upon receipt or when due and may require deferral of revenuerecognition to a future period until the Company performs its obligations under these arrangements. Amounts payable to the Company are recorded asaccounts receivable when the Company’s right to consideration is unconditional. The Company does not assess whether a contract has a significantfinancing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goodsor services to the customer will be one year or less.Contract Balances: The Company recognizes a contract asset when the Company transfers goods or services to a customer before the customer paysconsideration or before payment is due, excluding any amounts presented as a receivable (i.e., accounts receivable). A contract asset is an entity’s right toconsideration in exchange for goods or services that the entity has transferred to a customer. The contract liabilities (i.e. deferred revenue) primarily relate tocontracts where the Company has received payment but has not yet satisfied the related performance obligations. The advance consideration received fromcustomers for R&D services and/or licenses is a contract liability, recorded as deferred revenue, until the underlying performance obligations are transferredto the customer.Research and development: Research and development costs are expensed as incurred and include, but are not limited to: •Employee-related expenses including salaries, benefits, travel, and share-based compensation expense for research and developmentpersonnel; •Costs associated with preclinical and development activities; •Costs associated with regulatory operations.Income taxes: The Company uses the asset and liability method for accounting for income taxes. Under this method, deferred tax assets andliabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets andliabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable incomein the years in which those temporary differences are expected to be recovered or settled. The Company evaluates the realizability of its deferred tax assetsand establishes a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized. The Company hasprovided a full valuation allowance on its deferred tax assets.Relative to accounting for uncertainties in tax positions, the Company recognizes the tax benefit of tax positions to the extent that the benefit willmore likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits ofthe tax position as well as consideration of the available facts and circumstances. For those tax positions where it is more likely than not that a tax benefitwill be sustained, the Company records the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with ataxing authority having full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit willbe sustained, the Company does not recognize a tax benefit in the financial statements. The Company recognizes interest and penalties related to uncertain tax positions, if any, as a component of income tax expense. As the Company hasno uncertain tax positions, there were no interest or penalties charges recognized in the statement of operations for any years.Stock based compensation: The Company accounts for stock based compensation arrangements at fair value. The fair value is recognized over theperiod during which the recipient is required to provide services (usually the vesting period), on a straight-line basis.Net Loss per Share: Basic and diluted net loss per share is presented in conformity with the two-class method required for participating securities.Under the two-class method, basic net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted averagenumber of common shares outstandingF-12 during the period. Net loss attributable to common stockholders is determined by allocating undistributed earnings between holders of common andconvertible preferred shares, based on the contractual dividend rights contained in the preferred share agreement. Where there is an undistributed loss, noamount is allocated to the convertible preferred shares. Diluted net loss per share is computed by dividing net loss by the sum of the weighted averagenumber of common stock and the number of dilutive potential common stock equivalents outstanding during the period. Potential dilutive common shareequivalents consist of the incremental common shares issuable upon the exercise of vested share options or the conversion of preferred stock.Potential dilutive common share equivalents consist of: April 30, 2019 2018 2017 Stock options and awards 1,784,338 388,366 148,469 In computing diluted earnings per share, common stock equivalents are not considered in periods in which a net loss is reported, as the inclusion ofthe common stock equivalents would be anti-dilutive. As a result, there is no difference between the Company’s basic and diluted loss per share in theperiods presented (in thousands, except share and per share amounts): Basic and diluted net loss per share April 30, 2019 2018 2017 Net loss $(20,816) $(15,805) $(18,603)Less: dividend on Series A — — (935)Less: dividend on Series B — — (1,237)Loss available to common stockholders (20,816) (15,805) (20,775)Weighted average common shares, basic and diluted 15,080,863 10,321,780 4,646,764 Net loss per share, basic and diluted $(1.38) $(1.53) $(4.47) The weighted average shares outstanding, reported loss per share and potential dilutive common share equivalents for the periods prior to November21, 2016, the date of the Carbylan transaction, have been retrospectively adjusted to reflect historical weighted-average number of common sharesoutstanding multiplied by the exchange ratio established in the share purchase agreement.Fair value measurement: The Company classifies fair value measurements using a three level hierarchy that prioritizes the inputs used to measurefair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputsused to measure fair value are as follows: Level 1, quoted market prices in active markets for identical assets or liabilities; Level 2, observable inputs otherthan quoted market prices included in Level 1, such as quoted market prices for markets that are not active or other inputs that are observable or can becorroborated by observable market data; and Level 3, unobservable inputs that are supported by little or no market activity and that are significant to the fairvalue of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significantunobservable inputs. These fair values are obtained from independent pricing services, which utilize Level 1 and Level 2 inputs.F-13 The following table summarizes the cash and cash equivalents and marketable securities measured at fair value on a recurring basis as of April 30,2019: Level 1 Level 2 Level 3 Balance at April 30, 2019 Cash and cash equivalents$30,044 $1,962 $— $32,006 Marketable securities: Corporate debt securities — 56,487 — 56,487 U.S. government agency securities — 12,318 — 12,318 $30,044 $70,767 $— $100,811 Recently adopted accounting pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standardsupdate (“ASU”) 2014-09, “Revenue from Contracts with Customers,” requiring an entity to recognize the amount of revenue to which it expects to beentitled for the transfer of promised goods or services to customers. The updated standard replaced most existing revenue recognition guidance in U.S. GAAPwhen it became effective and permits the use of either the retrospective or cumulative effect transition method. The Company adopted the updated standardMay 1, 2018 using the modified retrospective method of adoption for all open contracts, while all comparative prior periods continue to be presented underASC 605, “Revenue Recognition.” The Company’s only significant revenue generating arrangement is the arrangement with Merck. The adoption of thisguidance on the consolidated financial statements had no impact on the date of adoption and through April 30, 2019, other than the enhanced footnotedisclosures.Recently issued accounting pronouncements not yet adopted: In February 2016, the FASB issued new lease accounting guidance in ASU No. 2016-02, “Leases” (Topic 842). Under the new guidance, lessees will be required to recognize for all leases (with the exception of short term leases) at thecommencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2)a right of use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new lease guidanceis effective for the Company beginning May 1, 2019. As a result of implementing Topic 842, the Company expects to record total right of use assets ofapproximately $1.9 million with offsetting liabilities of approximately the same amount.Note 3. Marketable SecuritiesThe objectives of the Company’s investment policy are to ensure the safety and preservation of invested funds, as well as to maintain liquiditysufficient to meet cash flow requirements. The Company invests its excess cash in high-credit quality financial institutions, commercial companies, andgovernment agencies in order to limit the amount of its credit exposure. The Company has not realized any significant losses from its investments.The Company classifies all of its investments as available-for-sale. Unrealized gains and losses on investments are recognized in comprehensiveloss, unless an unrealized loss is considered to be other than temporary, in which case the unrealized loss is charged to operations. The Company periodicallyreviews its investments for other than temporary declines in fair value below cost basis and whenever events or changes in circumstances indicate that thecarrying amount of an asset may not be recoverable. The Company believes the individual unrealized losses represent temporary declines primarily resultingfrom interest rate changes. Realized gains and losses are reflected in interest and other income in the consolidated statements of operations andcomprehensive loss and are determined using the specific identification method with transactions recorded on a settlement date basis.F-14 The following tables summarize the fair value of the Company’s investments by type: April 30, 2019 Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Corporate debt securities$56,083 $405 $(1) $56,487 Obligation of the U.S. Government and its agencies 12,282 36 — 12,318 Total investments$68,365 $441 $(1) $68,805 The following table summarizes the scheduled maturity for the Company’s investments at April 30, 2019: April 30, 2019 Maturing in one year or less$38,805 Maturing after one year through two years 21,780 Maturing after two years 8,220 Total investments$68,805 Note 4. Property and EquipmentAt April 30, 2019 and 2018, property and equipment consisted of (in thousands): 2019 2018 Laboratory equipment $1,391 $1,277 Office equipment 36 33 Furniture & fixtures 175 76 Leasehold improvements 1,707 1,005 3,309 2,391 Less accumulated depreciation (896) (555) $2,413 $1,836 For the years ended April 30, 2019, 2018 and 2017, depreciation expense was $378,000, $180,000 and $40,000, respectively. At April 30, 2019, theCompany had laboratory equipment under a capital lease with a cost of $505,000 and accumulated depreciation of $242,000.Note 5. Accrued ExpensesAt April 30, 2019 and 2018, accrued expenses consisted of (in thousands): 2019 2018 Accrued research expense $3,065 $1,192 Accrued compensation 1,949 1,393 Accrued professional fees 186 164 Other accrued expenses 393 338 $5,593 $3,087 Note 6. Merck Arrangement On October 6, 2017, the Company’s wholly-owned U.K. based subsidiary KalVista Pharmaceuticals Limited (“KalVista Limited) and Merck Sharp &Dohme Corp. (“Merck”) entered into an option agreement (the “Option Agreement”). The Company is the guarantor of KalVista Limited’s obligations underthe Merck Option Agreement.F-15 Under the terms of the Option Agreement, the Company, through KalVista Limited, has granted to Merck an option to acquire KVD001 through a periodfollowing completion of a Phase 2 clinical trial. The Company, through KalVista Limited, has also granted to Merck a similar option to acquireinvestigational orally delivered molecules for DME that the Company will continue to develop as part of its ongoing research and development activities,through a period following the completion of a Phase 2 clinical trial. The Company, through KalVista Limited, also granted to Merck a non-exclusive licenseto use the compounds solely for research purposes, and is required to use its diligent efforts to develop the two compounds through the completion of Phase 2clinical trials. The Company will fund and retain control over the planned Phase 2 clinical trial of KVD001 as well as development of the investigational oralDME compounds through Phase 2 clinical trials unless Merck determines to exercise its options earlier, at which point Merck will take responsibility for alldevelopment and commercialization activities for the compounds. The Company’s development efforts under the Option Agreement are governed by a jointsteering committee consisting of equal representatives from the Company and Merck.Under the terms of the Option Agreement, Merck paid a non-refundable upfront fee of $37 million to KalVista Limited in November 2017. If Merckexercises both options under the Option Agreement, KalVista Limited could receive up to an additional $715 million composed of option exercise paymentsand clinical, regulatory, and sales-based milestone payments. In addition, the Company is eligible for tiered royalties on global net sales ranging from mid-single digits to double digit percentages. Merck may terminate the Option Agreement at any time upon written notice to the Company. KalVista Limited mayterminate the Option Agreement in the event of Merck’s material breach of the Option Agreement, subject to cure.Concurrent with the Option Agreement, the Company and Merck also entered into a stock purchase agreement (the “Stock Purchase Agreement”)pursuant to which Merck paid approximately $9.1 million to purchase 1,070,589 new shares of the Company’s common stock at a price of $8.50 per share.The Company determined that the Option Agreement and the Stock Purchase Agreement were negotiated and executed contemporaneously, are for asingle commercial objective and therefore should be combined as one arrangement for accounting purposes. The aggregate proceeds from the arrangementwere allocated to the equity arrangement and to the revenue arrangement.Accounting under ASC 605The Company determined that the deliverables under the Option Agreement included (i) a non-exclusive license to use the two compounds solely forresearch purposes, (ii) research and development services related to the development of KVD001 through completion of a Phase 2 clinical trial, (iii) researchand development services related to the development of the Oral DME Compounds, and (iv) unregistered shares of the Company’s common stock. TheCompany has concluded that the common stock deliverable identified at the inception of the arrangement has standalone value from the other deliverablesand therefore represents a separate unit of accounting, which was measured at fair value and $9.1 million was recognized in stockholders’ equity. TheCompany further determined that the research license granted did not have standalone value from the respective research and development services, as thelicense could not be used on its own by Merck for its intended purpose of developing and commercializing KVD001 and the Oral DME Compounds on astandalone basis. As a result, the research license was combined with the respective research and development services for KVD001 and the Oral DMECompounds as two units of accounting. The Company determined that neither vendor-specific objective evidence or third-party evidence was available foreither of the units of accounting identified at arrangement inception. Accordingly, the selling price of each unit of accounting was developed usingmanagement’s best estimate of selling price. The Company developed the best estimate of selling price for the KVD001 Unit of Accounting and Oral DMEUnit of Accounting by applying an analysis of discounted cash flows and the allocable arrangement consideration of $37.0 million was allocated among theseparate units of accounting using the relative selling price method. The amounts allocated to each unit of accounting were being recognized as revenue on aproportional performance basis.Accounting under ASC 606The Company evaluated the revenue arrangement in accordance with the provisions of ASC 606 upon the adoption of this guidance on May 1, 2018.The Company determined that the revenue arrangement contains the following promised services: (i) a non-exclusive license to use the two compoundssolely for research purposes, (ii)F-16 research and development services related to the development of KVD001 through completion of a Phase 2 clinical trial, and (iii) research and developmentservices related to the development of the Oral DME Compounds.The Company has determined that Merck’s options to acquire KVD001 and the Oral DME Compounds are customer options. Merck is notcontractually obligated to exercise the options. The Company has determined that Merck’s options to acquire KVD001 and the Oral DME Compounds arenot priced below their standalone selling prices and do not grant the customer a material right. Consequently, the Company determined that Merck’s optionsare not performance obligations at the inception of the arrangement.The Company further determined that the research license granted is not distinct from the respective research and development services, as thelicense could not be used on its own by Merck for its intended purpose of developing and commercializing KVD001 and the Oral DME Compounds and issignificantly interdependent with the respective research and development services. As a result, the research license has been combined with the respectiveresearch and development services for KVD001 and the Oral DME Compounds as two performance obligations (the “KVD001 Performance Obligation” andthe “Oral DME Performance Obligation”).Therefore, the Company has identified two performance obligations under the revenue arrangement as follows: (i) the KVD001 PerformanceObligation, and (ii) the Oral DME Performance Obligation. The transaction price that is allocable at inception of the arrangement is comprised of the non-refundable upfront payment of $37.0 million and the payment for the common stock of $9.1 million. The Company allocated the $9.1 million payment to thecommon stock, as this represented the fair value of the shares issued based on arm’s length negotiations between the Company and Merck. The amountallocated to the common stock was recorded in stockholders’ equity at the date of issuance. The Company allocated the remaining transaction price of $37.0million to the remaining performance obligations using the relative standalone selling price.There is uncertainty that the events to obtain and the development and regulatory milestones will be achieved given the nature of clinicaldevelopment and the stage of the research. The development and regulatory milestones will be constrained until the Company is sure that a significantrevenue reversal will not occur. The royalties and sales-based milestones relate predominantly to a license of intellectual property and are determined bysales or usage-based thresholds. The royalties and sales-based milestones will be accounted for under the sales-based royalty recognition exception and theCompany will not recognize revenue until the subsequent sale of a licensed product (achievement of sales-based milestone) occurs.The Company developed the standalone selling price for the KVD001 Performance Obligation and Oral DME Performance by applying an analysisof discounted cash flows and the transaction price was allocated among the separate performance obligations using the relative standalone selling pricemethod. The amount allocated to each Performance Obligation will be recognized as revenue using an input method of performance completed to datecomparing the total effort incurred with the Company’s estimate of total effort required to perform the R&D services for each respective performanceobligation. For the fiscal years ended April 30, 2019 and 2018, the Company recognized approximately $16.1 million and $8.0 million of revenue withrespect to the arrangement with Merck, all of which was recognized from the deferred revenue balance. As of April 30, 2019, deferred revenue on theconsolidated balance sheet is $12.9 million, which is related to the remaining unsatisfied performance obligations in this arrangement. Approximately $9.5million related to the unsatisfied performance obligation is expected to be satisfied in the next 12 months and the remaining $3.4 million will be satisfied inthe four years thereafter. Upon adoption of ASC 606 on May 1, 2018, the Company concluded that there was no change in the amount or timing of revenuerecognition as compared to its historical practices for this arrangement. Accordingly, there was no adjustment upon adoption. Note 7. Stock-Based CompensationThe Company has three plans that provide for equity-based compensation. Two are legacy plans that were maintained by Carbylan and KalVistaLimited and for which no further grants are to be made. Under the 2017 Equity Incentive Plan (“2017 Plan”), 2,586,589 shares of the Company’s commonstock are reserved for issuance upon exercise of stock options. As of April 30, 2019, 802,251 stock options remain available for grant under the 2017 Plan.F-17 Initial awards generally vest 25% after one year and then ratably on a monthly basis over the next three years. Recurring grants typically vest on amonthly basis over four years. Stock option grants expire after ten years.The Company recognizes stock-based compensation expense over the requisite service period based on the grant date fair value of the award. TheCompany has elected to use the Black-Scholes option pricing model to determine the fair value of awards granted. The determination of the fair value ofstock-based awards utilizing the Black-Scholes model is affected by the share price and a number of assumptions, including expected volatility, expectedlife, risk-free interest rate and expected dividends. Due to insufficient history of the Company’s stock price, the stock-price volatility assumption is based onthe historical volatility of a peer group of publicly traded companies. The expected life of the awards is estimated based on the simplified method. The risk-free interest rate assumption is based on observed interest rates appropriate for the terms of the awards. The dividend yield assumption is based on history andexpectation of paying no dividends. Forfeitures have not been material in the periods presented.The fair value of the share-based awards was measured with the following weighted-average assumptions for the fiscal years ended April 30: 2019 2018 2017Risk-free interest rate 2.90 1.94 2.08Expected life of the options 6.25 years 6.25 years 6.25 yearsExpected volatility of the underlying stock 77.2% 76.9% 82.3%Expected dividend rate 0% 0% 0% Stock-based compensation was reflected in the Company’s consolidated statement of operations and comprehensive loss as follows (in thousands): Year ended April 30, 2019 2018 2017 Research and development $2,005 $320 $143 General and administrative 961 740 251 Total stock-based compensation expense $2,966 $1,060 $394 A summary of option activity for the year ended April 30, 2019 and changes during the years then ended is presented below: Shares WeightedAverageExercisePrice WeightedAverageRemainingContractualLife AggregateIntrinsicValue Outstanding at May 1, 2018 918,694 $5.87 8.51 $3,465 Exercised (53,035) 4.56 Granted 895,200 13.84 Cancelled (21,521) 11.01 Outstanding at April 30, 2019 1,739,338 $9.95 8.47 $22,807 Exercisable at April 30, 2019 707,667 $6.93 7.81 $11,370 Vested and expected to vest at April 30, 2019 1,739,338 $9.95 8.47 $22,807 The weighted-average grant date fair value of stock options granted during the years ended, April 30, 2019, 2018 and 2017 was $9.62, $4.87, and$5.68, respectively. The cash received and intrinsic value of options exercised was not material in the periods presented.As of April 30, 2019, there was $8.7 million of unrecognized compensation expense related to unvested awards, which is expected to be recognizedover a weighted-average period of 2.8 years.F-18 Note 8. Commitments and ContingenciesClinical Studies: The Company enters into contractual agreements with contract research organizations in connection with preclinical andtoxicology studies and clinical trials. Amounts due under these agreements are invoiced to the Company on predetermined schedules during the course of thetoxicology studies and clinical trials and are not refundable regardless of the outcome. The Company has a contractual obligation related to the expectedfuture costs to be incurred to complete the ongoing toxicology studies and clinical trials. The remaining commitment, which has cancellation provisions,totaled $7.6 million at April 30, 2019.Lease commitments: The Company is party to several operating leases for office and laboratory space as well as certain lab equipment. Rent expensewas $0.7 million, $0.6 million and $0.5 million for the years ended April 30, 2019, 2018 and 2017, respectively, and is reflected in general andadministrative expenses and research and development expenses as determined by the underlying activities.Future minimum payments under these leases as of April 30, 2019 are as follows (in thousands): Capital Operating Year ended April 30: Leases Leases 2020 $54 $687 2021 — 474 2022 — 328 2023 — 194 2024 and thereafter — 495 Total minimum lease payments 54 $2,178 Less amounts representing interest — Present value of minimum payments 54 Current portion 54 Long-term portion $— Indemnification: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations andwarranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves future claims that maybe made against the Company but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to itsindemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. No amounts associatedwith such indemnifications have been recorded to date.Contingencies: From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. TheCompany accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated.There were no contingent liabilities requiring accrual at April 30, 2019 and 2018.As a result of the terms of grant income received in prior years, upon successful regulatory approval and following the first commercial sale of certainproducts, the Company will be required to pay royalty fees of up to $1 million within 90 days of the first commercial sale of the product subject to certaincaps and follow on payments depending upon commercial success and type of product. Given the stage of development of the current pipeline of products itis not possible to predict with certainty the amount or timing of any such liability.Note 9. Income TaxesThe components of the Company’s loss before income taxes for the years ended April 30, 2019, 2018 and 2017 consisted of the following: F-19 2019 2018 2017 Domestic $(5,006) $(4,020) $(2,110) Foreign (15,686) (11,785) (16,493) $(20,692) $(15,805) $(18,603) For the year ended April 30, 2019, the Company has recorded a U.S. Federal income tax expense of $124,000. Prior to fiscal year 2019, the companyincurred net losses since inception and has not historically recorded a benefit or expense related to income taxes. A reconciliation between the effective tax rates and statutory rates for the years ended April 30, is as follows: 2019 2018 2017 Income tax benefit at U.S. federal statutory rate 21.0% 30.4% 34.0%Foreign rate differential (0.9)% (4.3)% (11.7)%Nondeductible expenses - UK R&D credit (5.9)% (16.3)% (9.2)%Other (0.9)% (4.5)% (1.3)%Effect of change in tax rates — (3.6)% — U.S. tax on international operations (7.6)% — — Valuation allowance (6.3)% (1.7)% (11.8)% (0.6)% — — The tax effect of significant temporary differences representing deferred tax assets and liabilities as of April 30, 2019 and 2018 is as follows (inthousands): 2019 2018 Net operating loss (“NOL”) carryforwards $7,424 $6,596 Other 968 240 Valuation allowance (8,392) (6,836)Net deferred tax asset $— $—Management of the Company has determined it is more likely than not that the Company will not recognize the benefits of net deferred tax assets,the majority of which are NOLs, and has provided a valuation allowance for the full amount of deferred tax assets as of as of April 30, 2019 and 2018,respectively. During the years ended April 30, 2019, 2018, and 2017 the valuation allowance changed by $1.6 million, $1.0 million and $3.0 million,respectively. Realization of deferred tax assets is dependent upon the generation of future taxable income.As of April 30, 2019, the Company fully utilized all available NOL carryforwards for federal income tax purposes. The Company also has NOLcarryforwards for state income taxes of $3.9 million that begin to expire in 2036 and NOL carryforwards for U.K. income taxes of $33.3 million that do notexpire. The ability to utilize the Company’s domestic net operating losses is limited due to changes in ownership as defined by Section 382 of the InternalRevenue Code (the “Code”). Under the provisions of Sections 382 and 383 of the Code, a change of control, as defined in the Code, imposes an annuallimitation on the amount of the Company’s net operating loss and tax credit carryforwards, and other tax attributes that can be used to reduce future taxliabilities. The Company determined that ownership changes occurred as a result of the Carbylan transaction in November 2016 and a public offering inSeptember 2018. As a result of this ownership change, the Company’s U.S. federal and California NOL carryforwards may be limited. It is estimated that theeffect of Section 382 will generally limit the amount of the net operating loss carryforwards of KalVista that are available to offset future taxable income toapproximately $5.0 million, annually.In December 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law. Among other things, the TCJA permanently lowers the corporate federalincome tax rate to 21% from the existing maximum rate of 35%, effective for tax years including or commencing January 1, 2018. As a result of the reductionof the corporate federal income tax rate to 21%, U.S. GAAP requires companies to revalue their deferred tax assets and deferred tax liabilities as ofF-20 the date of enactment, with the resulting tax effects accounted for in the reporting period of enactment. This revaluation resulted in a reduction of theCompany’s deferred tax assets of $578,000 and a corresponding reduction in the valuation allowance. As a result, there was no impact on our consolidatedstatements of operations from the reduction in tax rate. The Company recognizes the financial statement effects of a tax position when it becomes more likely than not, based upon the technical merits, thatthe position will be sustained upon examination. The Company has no unrecognized tax benefits as of April 30, 2019 and 2018, respectively. The Companydoes not expect any material changes in the next 12 months in unrecognized tax benefits. The Company has not recognized interest and penalties related touncertain tax positions.Note 10. Defined Contribution PlansParticipation in a personal pension plan is available to all U.K. based employees of the Company upon commencement of their employment.Employer contributions are made in accordance with the terms and conditions of the employment contract. Employees may contribute in accordance with theprevailing statutory limitations. Employees of the U.S. parent company are eligible to participate in the Company's 401(k) Plan. The Company matches up to4% of employee contributions to the Plan. Total employer contributions to both plans for the years ended April 30, 2019, 2018 and 2017 were $237,000,$219,000 and $90,000 respectively.Note 11. Other IncomeAs of April 30, 2019 and 2018, the Company had research and development tax credits receivable totaling $11.3 million and $6.8 million,respectively. This tax credit is related to a tax scheme for small and medium enterprises in the United Kingdom as well as an R&D expenditure credit systemthat allows the Company to file a claim for cash credit in proportion to the Company’s R&D expenditure for the year. This amount is included in otherincome, as it is a refundable credit that does not depend on the Company’s ongoing tax status or position. The Company recognized $7.6 million, $4.4million and $2.3 million related to these programs in the years ended April 30, 2019, 2018 and 2017, respectively. In the year ended April 30, 2019, otherincome also included $52,000 of realized gains from the sale of available for sale securities.Note 12. Unaudited Quarterly Financial Information (in thousands): Fiscal year 2019Quarter endedJuly 31,2018 Quarter endedOctober 31, 2018 Quarter endedJanuary 31, 2019 Quarter endedApril 30,2019 Revenue$3,718 $5,592 $3,890 $2,926 Operating expenses 10,727 10,485 10,550 14,186 Net loss (5,030) (3,304) (3,956) (8,526)Net loss per share$(0.47) $(0.22) $(0.23) $(0.49) Fiscal year 2018Quarter endedJuly 31,2017 Quarter endedOctober 31, 2017 Quarter endedJanuary 31, 2018 Quarter endedApril 30,2018 Revenue$96 $1,127 $2,331 $4,840 Operating expenses 5,549 7,064 6,677 7,809 Net loss (4,928) (4,986) (5,234) (657)Net loss per share$(0.51) $(0.50) $(0.49) $(0.06) F-21Exhibit 10.5AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENTThis Amended and Restated Executive Employment Agreement (“Agreement”) is made and entered into on this 26th day ofJune, 2019 by and between KalVista Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and T. Andrew Crockett(hereinafter, the “Executive”).RECITALSWHEREAS, the Executive is currently employed by the Company;WHEREAS, the terms of Executive’s employment with the Company are set forth in an Executive Employment Agreement byand between the Company and the Executive previously entered into on the 14th day of March, 2017 (the “First Agreement);WHEREAS, the Company and the Executive now desire to amend and restate the First Agreement;WHEREAS, the Company and Employee intend that this Agreement shall supersede and replace the First Agreement; andWHEREAS, the Company desires to continue to employ the Executive and the Executive desires to continue to be employedby the Company on the terms herein described.NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, and for other good and valuableconsideration, the receipt and sufficiency of which are mutually acknowledged, the Company and the Executive hereby agree asfollows:1.Employment. The Company hereby agrees to employ the Executive and the Executive hereby agrees to serve theCompany during the Term of Employment on the terms and conditions set forth herein. 2.Position and Duties of Executive. During the Term of Employment, the Executive shall be employed and serve asthe CEO of the Company, and shall have such duties typically associated with such titles, including, without limitation supervisingoperations and management of the Company and its subsidiaries. The Executive shall faithfully and diligently perform all services asmay be assigned to him by the Board, and shall exercise such power and authority as may from time to time be delegated to him by theBoard. The Executive shall devote his full business time, attention and efforts to the performance of his duties under this Agreement,render such services to the best of his ability, and use his reasonable best efforts to promote the interests of the Company. TheExecutive shall not engage in any other business or occupation during the Term of Employment, including, without limitation, anyactivity that (i) conflicts with the interests of the Company or its subsidiaries, (ii) interferes with the proper and efficient performance ofhis duties for the Company, or (iii) interferes with the exercise of his judgment in the Company’s best interests. Notwithstanding theforegoing or any other provision of this Agreement, it shall not be a breach or violation of this Agreement for the Executive to (w) serveon up to two outside corporate or scientific advisory boards with prior notice to the Company, (x) serve on civic or charitable boards orcommittees, (y) deliver lectures or fulfill speaking engagements, or (z) manage personal investments, so long as any such activities donot interfere with or detract from the performance of the Executive’s responsibilities to the Company in accordance with thisAgreement. 3.Compensation and Benefits.(a)Base Salary. The Executive shall receive a Base Salary at the annual rate of $556,120.00,effective as of May 1, 2019, during the Term of Employment, with such Base Salary payable in installments consistent with theCompany’s normal payroll schedule, subject to applicable withholding and other taxes. The Base Salary shall be reviewed, at leastannually, for merit increases and may, by action and in the  discretion of the Board (or its Compensation Committee), be increased at any time or from time to time, but may not be decreased fromthe then current Base Salary.(b)Bonuses. During the Term of Employment, the Executive shall participate in the Company’sannual incentive compensation plan, program and/or arrangements applicable to senior-level executives, as established and modifiedfrom time to time by the Compensation Committee of the Board in its sole discretion. During the Term of Employment, the Executiveshall have a target bonus opportunity under such plan or program equal to 55% of his current Base Salary (the “Target Bonus”), basedon satisfaction of performance criteria to be established by the Compensation Committee of the Board within the first three months ofeach fiscal year that begins during the Term of Employment. Payment of annual incentive compensation awards shall be made in thesame manner and at the same time that other senior-level executives receive their annual incentive compensation awards, but in noevent later than 2 ½ months following the last day of the applicable Company fiscal year, and, except as otherwise provided herein, willbe subject to the Executive’s continued employment through the last day of the applicable Company fiscal year. (c)Compensation/Benefit Programs. During the Term of Employment, the Executive shall beentitled to participate in all medical, dental, hospitalization, accidental death and dismemberment, disability, travel and life insuranceplans, and any and all other plans as are presently and hereinafter offered by the Company to its executive personnel, includingsavings, pension, profit-sharing and deferred compensation plans, subject to the general eligibility and participation provisions set forthin such plans.(d)Equity Awards. During the Term of Employment, the Executive shall be eligible to be grantedEquity Awards. The number and type of such Equity Awards, and the terms and conditions thereof, shall be determined by the Boardor the Compensation Committee of the Board, in its discretion(e)Vacation. The Executive shall be entitled to 25 days of paid vacation each calendar year duringthe Term of Employment, subject to the terms of the Company’s then effective vacation or paid time off policy.(f)Reimbursement of Reasonable Business Expenses. Subject to submission of propersubstantiation by the Executive, and subject to such rules and guidelines as the Company may from time to time adopt with respect tothe reimbursement of reasonable business expenses of executive personnel, the Company shall reimburse the Executive for allreasonable expenses actually paid or incurred by the Executive during the Term of Employment in the course of and pursuant to thebusiness of the Company. The Executive shall account to the Company in writing for all expenses for which reimbursement is soughtand shall supply to the Company copies of all relevant invoices, receipts or other evidence reasonably requested by the Company.4.Termination.(a)General. The Term of Employment shall terminate upon the earliest to occur of (i) the Executive’sdeath, (ii) a termination by the Company by reason of the Executive’s Disability, (iii) a termination by the Company with or withoutCause, or (iv) a termination by Executive with or without Good Reason. Upon any termination of Executive’s employment for anyreason, except as may otherwise be requested by the Company in writing and agreed upon in writing by Executive, the Executive shallresign from any and all directorships, committee memberships or any other positions Executive holds with the Company or any of itsRelated Entities.(b)Termination by the Company for Cause. The Company shall at all times have the right, uponwritten notice to the Executive, to terminate the Term of Employment for Cause. In no event shall a termination of the Executive’semployment for Cause occur unless the Company gives written notice to the Executive in accordance with this Agreement stating withreasonable specificity the events or actions that constitute Cause. In the event that the Term of Employment is terminated by theCompany for Cause, Executive shall be entitled only to the Accrued Obligations.2  (c)Disability. The Company shall have the option, in accordance with applicable law, to terminatethe Term of Employment upon written notice to the Executive at any time during which the Executive is suffering from a Disability. Inthe event that the Term of Employment is terminated due to the Executive’s Disability, the Executive shall be entitled to (i) the AccruedObligations and (ii) any insurance benefits to which he and his beneficiaries are entitled as a result of his Disability.(d)Death. In the event that the Term of Employment is terminated due to the Executive’s death, theExecutive’s estate shall be entitled to (i) the Accrued Obligations and (ii) any insurance benefits to which he and his beneficiaries areentitled as a result of his death.(e)Termination Without Cause outside of a Change in Control of the Company or Resignation WithGood Reason outside of a Change in Control of the Company. The Company may terminate the Term of Employment without Cause,and the Executive may terminate the Term of Employment for Good Reason, at any time upon written notice. If the Term ofEmployment is terminated by the Company without Cause (other than due to the Executive’s death or Disability) or by the Executivefor Good Reason, in either case prior to the date of a Change in Control or more than two years after a Change in Control, the Executiveshall be entitled to the following: (i)The Accrued Obligations;(ii)A lump sum payment equal to 15 months of Executive’s then-current BaseSalary;(iii)Provided that the Executive timely elects continued coverage under COBRA,the Company will reimburse the Executive for the monthly COBRA cost of continued health and dental coverage of the Executive andhis qualified beneficiaries paid by the Executive under the health and dental plans of the Company, less the amount that the Executivewould be required to contribute for health and dental coverage if the Executive were an active employee of the Company, for 15months (or, if less, for the duration that such COBRA coverage is available to Executive). Notwithstanding the above, if the Companydetermines in its sole discretion that it cannot provide the COBRA benefits described herein without violating applicable law (including,without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide Executive with a taxablelump sum payment in an amount equal to the then-unreimbursed monthly COBRA premiums.(f)Termination by Executive Without Good Reason. The Executive may terminate his employmentwithout Good Reason by providing the Company 30 days’ written notice of such termination. In the event of a termination ofemployment by the Executive under this Section 4(f), the Executive shall be entitled only to the Accrued Obligations. In the event oftermination of the Executive’s employment under this Section 4(f), the Company may, in its sole and absolute discretion, by writtennotice, accelerate such date of termination and still have it treated as a termination without Good Reason.(g)Termination Without Cause in connection with a Change in Control of the Company orResignation With Good Reason in connection with a Change in Control of the Company. If the Executive’s employment is terminatedby the Company (or any entity to which the obligations and benefits under this Agreement have been assigned pursuant to Section 9(b))without Cause or by the Executive for Good Reason, in either case during the two year period immediately following a Change inControl, then the Executive shall be entitled to the following:(i)The Accrued Obligations;(ii)A lump sum payment equal to 21 months of Executive’s then-current BaseSalary; 3  (iii)A lump sum payment equal to the Executive’s full Target Bonus for the fiscalyear in which the Termination Date occurs; (iv)Provided that the Executive timely elects continued coverage under COBRA,the Company will reimburse the Executive for the monthly COBRA cost of continued health and dental coverage of the Executive andhis qualified beneficiaries paid by the Executive under the health and dental plans of the Company, less the amount that the Executivewould be required to contribute for health and dental coverage if the Executive were an active employee of the Company, for 21months (or, if less, for the duration that such COBRA coverage is available to Executive). Notwithstanding the above, if the Companydetermines in its sole discretion that it cannot provide the COBRA benefits described herein without violating applicable law (including,without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide Executive with a taxablelump sum payment in an amount equal to the then-unreimbursed monthly COBRA premiums. Notwithstanding the foregoing, theCompany shall provide Executive with a taxable lump sum payment in an amount equal to the then-unreimbursed monthly COBRApremiums for months 19-21.(v)All then-unvested Equity Awards will vest in full.(h)Release. All rights, payments and benefits due to the Executive under this Section 4 (other thanthe Accrued Obligations) shall be conditioned on the Executive’s execution of a general release of claims against the Company and itsaffiliates substantially in the form attached hereto as Exhibit B (the “Release”) and on that Release becoming irrevocable within 60 daysfollowing the Termination Date. The severance described in this Section 4 (other than Accrued Obligations) shall be paid no later thanthe first business day following the sixtieth (60th) day following the termination of employment of Executive and in compliance with thetimeframe required under Section 409A as set forth herein, and the first payment will include the payments due and owing prior to thatpayment date but for the application of this sentence. If the Straddle Period (as defined below) spans two (2) calendar years, then thecash payments under this Section 4 (other than Accrued Obligations) shall first be made on the first business day in the second calendaryear that occurs after the expiration of the sixty (60)-day period in which the Release must be delivered and effective, as described inthis Section 4. The “Straddle Period” shall mean the sixty (60)-day period following a termination of employment in which theRelease is to be executed and become irrevocable pursuant to this Section 4.(i)Section 280G Certain Reductions of Payments by the Company.(1)Anything in this Agreement to the contrary notwithstanding, in the eventit shall be determined that any payment or distribution by the Company to or for the benefit of the Executive, whether paid or payableor distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would be nondeductible by theCompany for Federal income tax purposes because of Section 280G of the Code, then the aggregate present value of amounts payableor distributable to or for the benefit of the Executive pursuant to this Agreement (such payments or distributions pursuant to thisAgreement are hereinafter referred to as “Agreement Payments”) shall be reduced to the Reduced Amount. The “Reduced Amount”shall be an amount expressed in present value that avoids any Payment being nondeductible by the Company because of Section 280Gof the Code. To the extent necessary to avoid imposition of the Excise Tax, the amounts payable or benefits to be provided to theExecutive shall be reduced such that the reduction of compensation to be provided to the Executive is minimized. In applying thisprinciple, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where twoeconomically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro ratabasis (but not below zero). Anything to the contrary notwithstanding, if the Reduced Amount is zero and it is determined further thatany Payment which is not an Agreement Payment would nevertheless be nondeductible by the Company for Federal income taxpurposes because of Section 280G of the Code, then the aggregate present value of Payments which are not Agreement Payments shallalso be reduced (but not below zero) to an amount expressed in present value which maximizes the aggregate present value ofPayments without causing any Payment to be nondeductible by the Company because of Section 280G of the Code. If a4  reduction of any Payment is required pursuant to this Section 4(i), such reduction shall occur to the amounts in the order that results inthe greatest economic present value of all payments and benefits actually made or provided to the Executive. For purposes of thisSection 4(i), present value shall be determined in accordance with Section 280G(d)(4) of the Code.(2)All determinations required to be made under this Section 4(i) shall bemade by a tax or compensation consulting firm of national reputation selected by the Company (the “Consulting Firm”), which shallprovide detailed supporting calculations both to the Company and the Executive within 20 business days of the date of termination orsuch earlier time as is requested by the Company and an opinion to the Executive that he has substantial authority not to report anyexcise tax on his Federal income tax return with respect to any Payments. Any such determination by the Consulting Firm shall bebinding upon the Company and the Executive. Within five business days thereafter, the Company shall pay to or distribute to or for thebenefit of the Executive such amounts as are then due to the Executive under this Agreement. All fees and expenses of the ConsultingFirm incurred in connection with the determinations contemplated by this Section 4(i) shall be borne by the Company.(3)As a result of the uncertainty in the application of Section 280G of theCode at the time of the initial determination by the Consulting Firm hereunder, it is possible that Payments will have been made by theCompany which should not have been made (“Overpayment”) or that additional Payments which will not have been made by theCompany could have been made (“Underpayment”), in each case, consistent with the calculations required to be made hereunder. Inthe event that the Consulting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against the Executivewhich the Consulting Firm believes has a high probability of success, determines that an Overpayment has been made, any suchOverpayment paid or distributed by the Company to or for the benefit of the Executive shall be promptly repaid to the Company by theExecutive. In the event that the Consulting Firm, based upon controlling precedent or other substantial authority, determines that anUnderpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executivetogether with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.(j)Cooperation. Following the Term of Employment, the Executive shall give his assistance andcooperation willingly, upon reasonable advance notice with due consideration for his other business or personal commitments, in anymatter relating to his position with the Company, or his expertise or experience as the Company may reasonably request, including hisattendance and truthful testimony where deemed appropriate by the Company, with respect to any investigation or the Company’sdefense or prosecution of any existing or future claims or litigations or other proceedings relating to matters in which he was involvedor potentially had knowledge by virtue of his employment with the Company. In no event shall his cooperation materially interfere withhis services for a subsequent employer or other similar service recipient. To the extent permitted by law, the Company agrees that (i) itshall promptly reimburse the Executive for his reasonable and documented expenses in connection with his rendering assistance and/orcooperation under this Section 4(j) upon his presentation of documentation for such expenses and (ii) the Executive shall be reasonablycompensated for any continued material services as required under this Section 4(j).(k)Return of Company Property. Following the Termination Date, the Executive or his personalrepresentative shall return all Company property in his possession, including but not limited to all computer equipment (hardware andsoftware), telephones, facsimile machines, cell phones and other communication devices, credit cards, office keys, security accesscards, badges, identification cards and all copies (including drafts) of any documentation or information (however stored) relating to thebusiness of the Company, its customers and clients or its prospective customers and clients.(l)Compliance with Section 409A.(i)General. It is the intention of both the Company and the Executive that thebenefits and rights to which the Executive could be entitled pursuant to this Agreement comply with Section5  409A of the Code and the Treasury Regulations and other guidance promulgated or issued thereunder (“Section 409A”), to the extentthat the requirements of Section 409A are applicable thereto, and the provisions of this Agreement shall be construed in a mannerconsistent with that intention.(ii)Distributions on Account of Separation from Service. If and to the extentrequired to comply with Section 409A, no payment or benefit required to be paid under this Agreement on account of termination ofthe Executive’s employment shall be made unless and until the Executive incurs a “separation from service” within the meaning ofSection 409A.(iii)Six Month Delay for Specified Employees. If the Executive is a “specifiedemployee” (within the meaning of Section 409A(a)(2)(B)(i) of the Code), then no payment or benefit that is payable on account of theExecutive’s “separation from service”, as that term is defined for purposes of Section 409A, shall be made before the date that is sixmonths after the Executive’s “separation from service” (or, if earlier, the date of the Executive’s death) if and to the extent that suchpayment or benefit constitutes deferred compensation (or may be nonqualified deferred compensation) under Section 409A and suchdeferral is required to comply with the requirements of Section 409A. Any payment or benefit delayed by reason of the prior sentenceshall be paid out or provided in a single lump sum at the end of such required delay period in order to catch up to the original paymentschedule.(iv)Treatment of Each Installment as a Separate Payment. For purposes ofapplying the provisions of Section 409A to this Agreement, each separately identified amount to which the Executive is entitled underthis Agreement shall be treated as a separate payment. In addition, any series of installment payments under this Agreement shall betreated as a right to a series of separate payments.(v)Taxable Reimbursements and In-Kind Benefits.(A)Any reimbursements by the Company to the Executiveof any eligible expenses under this Agreement that are not excludable from the Executive’s income for Federal income tax purposes(the “Taxable Reimbursements”) shall be made by no later than the last day of the taxable year of the Executive following the year inwhich the expense was incurred.(B)The amount of any Taxable Reimbursements, and thevalue of any in-kind benefits to be provided to the Executive, during any taxable year of the Executive shall not affect the expenseseligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of the Executive.(C)The right to Taxable Reimbursement, or in-kindbenefits, shall not be subject to liquidation or exchange for another benefit.(vi)Section 409A Compliance. Notwithstanding the foregoing, the Company doesnot make any representation to the Executive that the payments or benefits provided under this Agreement are exempt from, or satisfy,the requirements of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless theExecutive or any beneficiary of the Executive for any tax, additional tax, interest or penalties that the Executive or any beneficiary ofthe Executive may incur in the event that any provision of this Agreement, or any amendment or modification thereof, or any otheraction taken with respect thereto, is deemed to violate any of the requirements of Section 409A.5.Restrictive Covenants.(a)Confidential Information. The Executive shall execute and agree to be bound by the terms of theCompany’s Employee Invention Assignment, Confidentiality and Non-Competition Agreement (the “EIIA”) as provided therein. 6  (b)Insider Trading Policies. Executive agrees that he shall comply with and be bound by theCompany’s insider trading policies with respect to the securities of the Company as now in effect or hereafter adopted or amended.(c)Clawback Provisions. All incentive and equity awards and payments shall be subject to theclawback policy of the Company, as now in effect or hereafter adopted or amended, and all applicable laws and rules and regulations ofthe stock exchanges and public market on which the securities of the Company are traded. (d)Injunction. It is recognized and hereby acknowledged by the parties hereto that a breach by theExecutive of any of the covenants contained in this Section 5 or the EIIA may cause irreparable harm and damage to the Company, andits Related Entities, the monetary amount of which may be virtually impossible to ascertain. As a result, the Executive recognizes andhereby acknowledges that the Company and its Related Entities shall be entitled to seek an injunction from any court of competentjurisdiction enjoining and restraining any violation of any or all of the covenants contained in this Section 5 or the EIIA by theExecutive or any of his affiliates, associates, partners or agents, either directly or indirectly, and that such right to injunction shall becumulative and in addition to whatever other remedies the Company may possess.6.Representations and Warranties of Executive. The Executive represents and warrants to the Company that:(a)The Executive’s employment will not conflict with or result in his breach of any agreement towhich he is a party or otherwise may be bound;(b)The Executive has not violated, and in connection with his employment with the Company willnot violate, any non-solicitation, non-competition or other similar covenant or agreement of a prior employer by which he is or may bebound; and(c)In connection with Executive’s employment with the Company, he will not use any confidentialor proprietary information that he may have obtained in connection with employment with any prior employer; and7.Indemnification. Subject to limitations imposed by law, the Company shall indemnify and hold harmless theExecutive to the fullest extent permitted by law from and against any and all claims, damages, expenses (including attorneys’ fees),judgments, penalties, fines, settlements, and all other liabilities incurred or paid by him in connection with the investigation, defense,prosecution, settlement or appeal of any threatened, pending or completed action, suit or proceeding, whether civil, criminal,administrative or investigative and to which the Executive was or is a party or is threatened to be made a party by reason of the fact thatthe Executive is or was an officer, employee or agent of the Company, or by reason of anything done or not done by the Executive inany such capacity or capacities, provided that the Executive acted in good faith, in a manner that was not grossly negligent orconstituted willful misconduct and in a manner he reasonably believed to be in or not opposed to the best interests of the Company,and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. 8.Definitions. When used in this Agreement, the following terms shall have the following meanings:(a)Accrued Obligations” means:(i)all accrued but unpaid Base Salary through the end of the Term of Employment;7  (ii)any unpaid or unreimbursed expenses incurred in accordance with Companypolicy to the extent incurred during the Term of Employment;(iii)any accrued but unpaid benefits provided under the Company’s employeebenefit plans, subject to and in accordance with the terms of those plans;(iv)any unpaid Bonus with respect to any completed fiscal year that has ended onor prior to the end of the Term of Employment; and(v)any accrued but unused vacation pay.(b)“Base Salary” means the salary provided for in Section 3(a) hereof or any increased salarygranted to Executive pursuant to Section 3(a) hereof.(c)“Beneficial Owner” and “Beneficial Ownership” shall have the meaning ascribed to such terms inRule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended.(d)“Board” means the Board of Directors of the Company.(e)“Bonus” means any bonus payable to the Executive pursuant to Section 3(b) hereof.(f)“Cause” means any of the following: (i)Executive’s conviction of or plea of nolo contendere to a felony or to any crimeinvolving moral turpitude;(ii)willful misconduct or gross negligence by the Executive resulting, in either case,in material economic or reputational harm to the Company or any of Related Entities;(iii)a willful failure by the Executive to carry out the reasonable and lawfuldirections of the Board and failure by the Executive to remedy the failure within thirty (30) days after receipt of written notice of same,by the Board;(iv)fraud, embezzlement, theft or dishonesty of a material nature by the Executiveagainst the Company or any Related Entity, or a willful material violation by the Executive of a policy or procedure of the Company orany Related Entity, resulting, in any case, in material, reputational or economic harm to the Company or any Related Entity; or(v) a willful material breach by the Executive of this Agreement andfailure by the Executive to remedy the material breach within 30 days after receipt of written notice of same, by the Board.(g)“CEO” means the Chief Executive Officer of the Company.(h)“Change in Control” means the occurrence of any of the following events: (i) any Personbecomes the Beneficial Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of thetotal voting power represented by the Company’s then-outstanding voting securities; provided, however, that for purposes of thissubclause (i) the acquisition of additional securities by any one Person who is considered to own more than fifty percent (50%) of thetotal voting power of the securities of the Company will not be considered a Change in Control; (ii) the consummation of the sale ordisposition by the Company of all or substantially all of the Company’s assets; (iii) the consummation of a merger or consolidation ofthe Company with any other corporation, other than a merger or consolidation which would result in the voting securities of theCompany outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted intovoting securities of the surviving entity or8  its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such survivingentity or its parent outstanding immediately after such merger or consolidation; or (iv) a change in the effective control of the Companythat occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by members of theBoard whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment orelection. For purpose of this subclause (iv), if any Person is considered to be in effective control of the Company, the acquisition ofadditional control of the Company by the same Person will not be considered a Change in Control. For purposes of this definition,Persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchaseor acquisition of stock, or similar business transaction with the Company. (i)“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended fromtime to time.(j)“Code” means the Internal Revenue Code of 1986, as amended.(k)“Commencement Date” means the date of this Agreement. (l)“Disability” means the Executive’s inability, or failure, to perform the essential functions of hisposition, with or without reasonable accommodation, for any period of six months or more in any 12 month period, by reason of anymedically determinable physical or mental impairment.(m)“Equity Awards” means any stock options, restricted stock, restricted stock units, stockappreciation rights, phantom stock or other equity based awards granted by the Company to the Executive.(n)“Excise Tax” means any excise tax imposed by Section 4999 of the Code, together with anyinterest and penalties imposed with respect thereto, or any interest or penalties are incurred by the Executive with respect to any suchexcise tax.(o)“Good Reason” means the occurrence of any of the following events or conditions, without theExecutive’s express written consent:(i)a material diminution in the Executive’s authority, duties, or responsibilities,provided, however, that the mere acquisition or merger of the Company by itself shall not constitute a material diminution in theExecutive’s authority, duties, or responsibilities;(ii)a material reduction by the Company in the Executive’s annual Base Salary(which for purposes hereof is deemed to constitute a reduction of greater than 10%, unless such reduction applies as part of a salaryreduction program and such program includes similar reductions to all of the Executive’s direct reports); or(iii)the relocation of the Executive’s principal place of employment to a locationmore than 50 miles from the Executive’s principal place of employment immediately prior to the Executive’s termination.With respect to each of subsection (i), (ii) and (iii) above, the Executive must provide notice to the Company of the condition givingrise to “Good Reason” within 30 days of the initial existence of such condition, and the Company will have 30 days following suchnotice to remedy such condition. The Executive must resign the Executive’s employment no later than 30 days following theCompany’s failure to cure the Good Reason or written notice to the Executive that it will decline to do so.(p)“Group” shall have the meaning ascribed to such term in Section 13(d) of the SecuritiesExchange Act of 1934.9  (q)“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the SecuritiesExchange Act of 1934 and used in Sections 13(d) and 14(d) thereof.(r)“Related Entity” means any Person controlling, controlled by or under common control with theCompany or any of its subsidiaries. For this purpose, the terms “controlling,” “controlled by” and “under common control with” meanthe possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whetherthrough the ownership of voting securities, as trustee or executor, by contract or otherwise, including (without limitation) theownership, directly or indirectly, of securities having the power to elect a majority of the board of directors or similar body governingthe affairs of such Person.(s)“Target Bonus” has the meaning described in Section 3(b).(t)“Term of Employment” means the period during which the Executive shall be employed by theCompany pursuant to the terms of this Agreement, which period shall begin on the Commencement Date and continue until terminatedin accordance with Section 4 hereof.(u)“Termination Date” means the date on which the Term of Employment ends.9.Miscellaneous Provisions.(a)Taxes. All payments or transfers of property made by the Company to the Executive or his estateor beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine itshould withhold pursuant to any applicable law or regulation.(b)Assignment. The Company shall have the right to assign this Agreement and its rights andobligations hereunder in whole, but not in part, to any corporation or other entity with or into which the Company may hereafter mergeor consolidate or to which the Company may transfer all or substantially all of its assets, if in any such case said corporation or otherentity shall by operation of law or expressly in writing assume all obligations of the Company hereunder as fully as if it had beenoriginally made a party hereto, but may not otherwise assign this Agreement or its rights and obligations hereunder. The Executivemay not assign or transfer this Agreement or any rights or obligations hereunder.(c)Governing Law. Except as expressly set forth herein, this letter agreement and the rights andobligations of the parties hereto shall be construed in accordance with the laws of the Commonwealth of Massachusetts, without givingeffect to the principles of conflict of laws.(d)Arbitration and Class Action Waiver. Executive and the Company agree to submit to mandatorybinding arbitration any and all claims arising out of or related to Executive’s employment with the Company and the terminationthereof, including, but not limited to, claims for unpaid wages, wrongful termination, torts, stock or stock options or other ownershipinterest in the Company, and/or discrimination (including harassment), except as set forth below, based upon any federal, state or localordinance, statute, regulation or constitutional provision except that each party may, at its, his or her option, seek injunctive relief incourt related to the improper use, disclosure or misappropriation of a party’s private, proprietary, confidential or trade secretinformation (collectively, “Arbitrable Claims”). Further, to the fullest extent permitted by law, Executive and the Company agree thatno class or collective actions can be asserted in arbitration or otherwise. All claims, whether in arbitration or otherwise, must bebrought solely in Executive’s or the Company’s individual capacity, and not as a plaintiff or class member in any purported class orcollective proceeding. THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO ARBITRABLECLAIMS. THE PARTIES FURTHER WAIVE ANY RIGHTS THEY MAY HAVE TO PURSUE OR PARTICIPATE IN A CLASS ORCOLLECTIVE ACTION PERTAINING TO ANY ARBITRABLE CLAIMS BETWEEN YOU AND THE COMPANY.10  Notwithstanding anything to the contrary herein, nothing in this Arbitration and Class Action Waiver section restrictsExecutive’s right to pursue claims in court (a) on a representative action basis under applicable law or (b) for any alleged sexualharassment or any alleged unlawful discriminatory practices related to sexual harassment.This Agreement does not restrict Executive’s right to file administrative claims Executive may bring before any governmentagency where, as a matter of law, the parties may not restrict the employee’s ability to file such claims (including, but not limited to, theNational Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor). However, the partiesagree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrativeclaims. The arbitration shall be conducted in Boston, Massachusetts through JAMS before a single neutral arbitrator, in accordancewith the JAMS employment arbitration rules then in effect. The JAMS rules may be found and reviewed athttp://www.jamsadr.com/rules-employment-arbitration. If Executive is unable to access these rules, please let the Company know andExecutive will be provided with a hardcopy. The arbitrator shall issue a written decision that contains the essential findings andconclusions on which the decision is based. Executive and the Company agree that this Arbitration and Class Action Waiver Provisionshall be governed by the Federal Arbitration Act. Should any portion of this provision be found unenforceable, it shall be severed andthe remaining provisions shall remain in full force and effect.(e)Entire Agreement. This Agreement, together with the exhibit attached hereto, constitutes theentire agreement between the patties hereto with respect to the subject matter hereof and, upon its effectiveness, shall supersede all prioragreements, understandings and arrangements, both oral and written, between the Executive and the Company (or any of its RelatedEntities) with respect to such subject matter. This Agreement may not be modified in any way unless by a written instrument signed byboth the Company and the Executive.(f)Notices. All notices required or permitted to be given hereunder shall be in writing and shall bepersonally delivered by courier, sent by registered or certified mail, return receipt requested or sent by confirmed facsimile transmissionaddressed as set forth herein. Notices personally delivered, sent by facsimile or sent by overnight courier shall be deemed given on thedate of delivery and notices mailed in accordance with the foregoing shall be deemed given upon receipt by the addressee, asevidenced by the return receipt thereof. Notice shall be sent (i) if to the Company, addressed to the Company’s headquarters, Attention:the Company’s Board, and (ii) if to the Executive, to his address as reflected on the payroll records of the Company, or to such otheraddress as either party shall request by notice to the other in accordance with this provision.(g)Benefits; Binding Effect. This Agreement shall be for the benefit of and binding upon the partieshereto and their respective heirs, personal representatives, legal representatives, successors and, where permitted and applicable,assigns, including, without limitation, any successor to the Company, whether by merger, consolidation, sale of stock, sale of assets orotherwise.(h)Right to Consult with Counsel. The Executive acknowledges having read and considered all ofthe provisions of this Agreement carefully, and having had the opportunity to consult with counsel of his own choosing, and, giventhis, the Executive agrees that the obligations created hereby are not unreasonable.(i)Severability. The invalidity of any one or more of the words, phrases, sentences, clauses,provisions, sections or articles contained in this Agreement shall not affect the enforceability of the remaining portions of thisAgreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the event that any one or moreof the words, phrases, sentences, clauses, provisions, sections or articles contained in this Agreement shall be declared invalid, thisAgreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, provisionsor provisions, section or sections or article or articles had not been inserted. If such invalidity is caused by length of time or11  size of area, or both, the otherwise invalid provision will be considered to be reduced to a period or area which would cure suchinvalidity.(j)Waivers. The waiver by either party hereto of a breach or violation of any term or provision ofthis Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation.(k)Damages; Attorneys’ Fees. Nothing contained herein shall be construed to prevent the Companyor the Executive from seeking and recovering from the other damages sustained by either or both of them as a result of its or his breachof any term or provision of this Agreement. Each party shall bear its own costs and attorneys’ fees.(l)No Set-off or Mitigation. The Company’s obligation to make the payments provided for in thisAgreement and otherwise to perform its obligations hereunder shall not be affected by any set off, counterclaim, recoupment, defenseor other claim, right or action which the Company may have against the Executive or others. In the event of any termination of theExecutive’s employment under this Agreement, he shall be under no obligation to seek other employment or otherwise in any way tomitigate the amount of any payment provided for hereunder.(m)Section Headings. The article, section and paragraph headings contained in this Agreement arefor reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.(n)No Third Party Beneficiary. The Related Entities are intended third party beneficiaries of thisAgreement. Otherwise, nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give anyperson other than the Company, the parties hereto and their respective heirs, personal representatives, legal representatives, successorsand permitted assigns, any rights or remedies under or by reason of this Agreement.(o)Counterparts. This Agreement may be executed in one or more counterparts, each of which shallbe deemed to be an original but all of which together shall constitute one and the same instrument and agreement.[Signature Page to Amended and Restated Executive Employment Agreement Follows]12  IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date first above written.CompanyKalVista Pharmaceuticals, Inc./s/ Albert ChaPrint Name: Albert ChaTitle: DirectorExecutive/s/ T. Andrew CrockettT. Andrew Crockett [Signature Page to Amended and Restated Executive Employment Agreement] 13  Exhibit BGeneral Release of Claims1.T. Andrew Crockett (“Executive”), for himself and his family, heirs, executors, administrators, legal representativesand their respective successors and assigns, in exchange for the consideration received pursuant to Section [4(e)] [4(g)] of the Amendedand Restated Executive Employment Agreement (the “Severance Benefits”) to which this release is attached as Exhibit B (the“Employment Agreement”), does hereby release and forever discharge KalVista Pharmaceuticals, Inc. (the “Company”), itssubsidiaries, affiliated companies, successors and assigns, and its current or former directors, officers, employees, shareholders oragents in such capacities (collectively with the Company, the “Released Parties”) from any and all actions, causes of action, suits,controversies, claims and demands whatsoever, for or by reason of any matter, cause or thing whatsoever, whether known or unknownincluding, but not limited to, all claims under any applicable laws arising under or in connection with Executive’s employment ortermination thereof, whether for tort, breach of express or implied employment contract, wrongful discharge, intentional infliction ofemotional distress, or defamation or injuries incurred on the job or incurred as a result of loss of employment. Without limiting thegenerality of the release provided above, Executive expressly waives any and all claims under Age Discrimination in Employment Act(“ADEA”) that he may have as of the date hereof. Executive further understands that, by signing this General Release of Claims, he isin fact waiving, releasing and forever giving up any claim under the ADEA as well as all other laws within the scope of this paragraph 1that may have existed on or prior to the date hereof. Notwithstanding anything in this paragraph 1 to the contrary, this General Releaseof Claims shall not apply to (i) any rights to receive any payments or benefits to which the Executive is entitled under COBRA, (ii) anyrights or claims that may arise as a result of events occurring after the date this General Release of Claims is executed, (iii) anyindemnification and advancement rights Executive may have as a former employee, officer or director of the Company or itssubsidiaries or affiliated companies (including any rights under Section 7 of the Employment Agreement), (iv) any claims for benefitsunder any directors’ and officers’ liability policy maintained by the Company or its subsidiaries or affiliated companies in accordancewith the terms of such policy, (v) rights to vested benefits under the Company’s 401(k) plan, and (vi) any rights as a holder of equitysecurities of the Company.2.Executive understands that nothing in this Release shall in any way limit or prohibit Executive from engaging in anyProtected Activity. For purposes of this Release, “Protected Activity” shall mean filing a charge, complaint, or report with, or otherwisecommunicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or localgovernment agency or commission, including the Securities and Exchange Commission, the Equal Employment OpportunityCommission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”).Executive understands that in connection with such Protected Activity, Executive is permitted to disclose documents or otherinformation as permitted by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding theforegoing, Executive agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information thatmay constitute Company confidential information to any parties other than the Government Agencies. Executive further understandsthat “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications. In addition,pursuant to the Defend Trade Secrets Act of 2016, Executive is notified that an individual will not be held criminally or civilly liableunder any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state, or localgovernment official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation oflaw, or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made underseal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclosethe trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files anydocument containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. This Releasedoes not limit Executive’s right to receive an award for information provided to any Government Agencies.14  3.Executive represents that he has not filed against the Released Parties any complaints, charges, or lawsuits arisingout of his employment, or any other matter arising on or prior to the date of this General Release of Claims, and covenants and agreesthat he will never individually or with any person file, or commence the filing of any lawsuits, complaints or proceedings with anygovernmental agency, or against the Released Parties with respect to any of the matters released by Executive pursuant to paragraph 1hereof; provided, that nothing herein shall prevent Executive from filing a charge or complaint with the Equal Employment OpportunityCommission (“EEOC”) or similar federal or state agency or the Executive’s ability to participate in any investigation or proceedingconducted by such agency. Nothing in this paragraph shall serve to limit, restrain or impair Executive’s rights under paragraph 2above. 4.Executive acknowledges that, in the absence of his execution of this General Release of Claims, the SeveranceBenefits would not otherwise be due to him.5.Executive acknowledges and agrees that he received adequate consideration in exchange for agreeing to thecovenants contained in Section 5 of the Employment Agreement and the EIAA (as defined therein), that such covenants remainreasonable and necessary to protect the legitimate business interests of the Company and its affiliates and that he will continue tocomply with those covenants.6.Executive hereby acknowledges that the Company has informed him that he has up to 21 days to sign this GeneralRelease of Claims and he may knowingly and voluntarily waive that 21 day period by signing this General Release of Claimsearlier. Executive also understands that he shall have seven days following the date on which he signs this General Release of Claimswithin which to revoke it by providing a written notice of his revocation to the Company.7.Executive acknowledges and agrees that this General Release of Claims will be governed by and construed andenforced in accordance with the internal laws of the State of Massachusetts applicable to contracts made and to be performed entirelywithin such State.8.Executive acknowledges that he has read this General Release of Claims, that he has been advised that he shouldconsult with an attorney before he executes this general release of claims, and that he understands all of its terms and executes itvoluntarily and with full knowledge of its significance and the consequences thereof.9.This General Release of Claims shall become irrevocable on the eighth day following Executive’s execution of thisGeneral Release of Claims, unless previously revoked in accordance with paragraph 6, above.Intending to be legally bound hereby, Executive has executed this General Release of Claims on ___________, 20__. Executive T. Andrew Crockett 15 Exhibit 10.6AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENTThis Amended and Restated Executive Employment Agreement (“Agreement”) is made and entered into on this 26th day ofJune, 2019 by and between KalVista Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Benjamin L. Palleiko(hereinafter, the “Executive”).RECITALSWHEREAS, the Executive is currently employed by the Company;WHEREAS, the terms of Executive’s employment with the Company are set forth in an Executive Employment Agreement byand between the Company and the Executive previously entered into on the 14th day of March, 2017 (the “First Agreement);WHEREAS, the Company and the Executive now desire to amend and restate the First Agreement;WHEREAS, the Company and Employee intend that this Agreement shall supersede and replace the First Agreement; andWHEREAS, the Company desires to continue to employ the Executive and the Executive desires to continue to be employedby the Company on the terms herein described.NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, and for other good and valuableconsideration, the receipt and sufficiency of which are mutually acknowledged, the Company and the Executive hereby agree asfollows:1.Employment. The Company hereby agrees to employ the Executive and the Executive hereby agrees to serve theCompany during the Term of Employment on the terms and conditions set forth herein. 2.Position and Duties of Executive. During the Term of Employment, the Executive shall be employed and serve asthe Chief Financial Officer and Chief Business Officer of the Company, and shall have such duties typically associated with such titles,including, without limitation supervising operations and management of the Company and its subsidiaries. The Executive shallfaithfully and diligently perform all services as may be assigned to him by the CEO, and shall exercise such power and authority as mayfrom time to time be delegated to him by the CEO. The Executive shall devote his full business time, attention and efforts to theperformance of his duties under this Agreement, render such services to the best of his ability, and use his reasonable best efforts topromote the interests of the Company. The Executive shall not engage in any other business or occupation during the Term ofEmployment, including, without limitation, any activity that (i) conflicts with the interests of the Company or its subsidiaries, (ii)interferes with the proper and efficient performance of his duties for the Company, or (iii) interferes with the exercise of his judgment inthe Company’s best interests. Notwithstanding the foregoing or any other provision of this Agreement, it shall not be a breach orviolation of this Agreement for the Executive to (w) serve on up to two outside corporate or scientific advisory boards with prior noticeto the Company, (x) serve on civic or charitable boards or committees, (y) deliver lectures or fulfill speaking engagements, or (z)manage personal investments, so long as any such activities do not interfere with or detract from the performance of the Executive’sresponsibilities to the Company in accordance with this Agreement. 3.Compensation and Benefits.(a)Base Salary. The Executive shall receive a Base Salary at the annual rate of $435,000.00,effective as of May 1, 2019, during the Term of Employment, with such Base Salary payable in installments consistent with theCompany’s normal payroll schedule, subject to applicable withholding and other taxes. The Base Salary shall be reviewed, at leastannually, for merit increases and may, by action and in the discretion of  the Board (or its Compensation Committee), be increased at any time or from time to time, but may not be decreased from the thencurrent Base Salary.(b)Bonuses. During the Term of Employment, the Executive shall participate in the Company’sannual incentive compensation plan, program and/or arrangements applicable to senior-level executives, as established and modifiedfrom time to time by the Compensation Committee of the Board in its sole discretion. During the Term of Employment, the Executiveshall have a target bonus opportunity under such plan or program equal to 40% of his current Base Salary (the “Target Bonus”), basedon satisfaction of performance criteria to be established by the Compensation Committee of the Board within the first three months ofeach fiscal year that begins during the Term of Employment. Payment of annual incentive compensation awards shall be made in thesame manner and at the same time that other senior-level executives receive their annual incentive compensation awards, but in noevent later than 2 ½ months following the last day of the applicable Company fiscal year, and, except as otherwise provided herein, willbe subject to the Executive’s continued employment through the last day of the applicable Company fiscal year. (c)Compensation/Benefit Programs. During the Term of Employment, the Executive shall beentitled to participate in all medical, dental, hospitalization, accidental death and dismemberment, disability, travel and life insuranceplans, and any and all other plans as are presently and hereinafter offered by the Company to its executive personnel, includingsavings, pension, profit-sharing and deferred compensation plans, subject to the general eligibility and participation provisions set forthin such plans.(d)Equity Awards. During the Term of Employment, the Executive shall be eligible to be grantedEquity Awards. The number and type of such Equity Awards, and the terms and conditions thereof, shall be determined by the Boardor the Compensation Committee of the Board, in its discretion(e)Vacation. The Executive shall be entitled to 25 days of paid vacation each calendar year duringthe Term of Employment, subject to the terms of the Company’s then effective vacation or paid time off policy.(f)Reimbursement of Reasonable Business Expenses. Subject to submission of propersubstantiation by the Executive, and subject to such rules and guidelines as the Company may from time to time adopt with respect tothe reimbursement of reasonable business expenses of executive personnel, the Company shall reimburse the Executive for allreasonable expenses actually paid or incurred by the Executive during the Term of Employment in the course of and pursuant to thebusiness of the Company. The Executive shall account to the Company in writing for all expenses for which reimbursement is soughtand shall supply to the Company copies of all relevant invoices, receipts or other evidence reasonably requested by the Company.4.Termination.(a)General. The Term of Employment shall terminate upon the earliest to occur of (i) the Executive’sdeath, (ii) a termination by the Company by reason of the Executive’s Disability, (iii) a termination by the Company with or withoutCause, or (iv) a termination by Executive with or without Good Reason. Upon any termination of Executive’s employment for anyreason, except as may otherwise be requested by the Company in writing and agreed upon in writing by Executive, the Executive shallresign from any and all directorships, committee memberships or any other positions Executive holds with the Company or any of itsRelated Entities.(b)Termination by the Company for Cause. The Company shall at all times have the right, uponwritten notice to the Executive, to terminate the Term of Employment for Cause. In no event shall a termination of the Executive’semployment for Cause occur unless the Company gives written notice to the Executive in accordance with this Agreement stating withreasonable specificity the events or actions that constitute Cause. In the event that the Term of Employment is terminated by theCompany for Cause, Executive shall be entitled only to the Accrued Obligations.2  (c)Disability. The Company shall have the option, in accordance with applicable law, to terminatethe Term of Employment upon written notice to the Executive at any time during which the Executive is suffering from a Disability. Inthe event that the Term of Employment is terminated due to the Executive’s Disability, the Executive shall be entitled to (i) the AccruedObligations and (ii) any insurance benefits to which he and his beneficiaries are entitled as a result of his Disability.(d)Death. In the event that the Term of Employment is terminated due to the Executive’s death, theExecutive’s estate shall be entitled to (i) the Accrued Obligations and (ii) any insurance benefits to which he and his beneficiaries areentitled as a result of his death.(e)Termination Without Cause outside of a Change in Control of the Company or Resignation WithGood Reason outside of a Change in Control of the Company. The Company may terminate the Term of Employment without Cause,and the Executive may terminate the Term of Employment for Good Reason, at any time upon written notice. If the Term ofEmployment is terminated by the Company without Cause (other than due to the Executive’s death or Disability) or by the Executivefor Good Reason, in either case prior to the date of a Change in Control or more than two years after a Change in Control, the Executiveshall be entitled to the following: (i)The Accrued Obligations;(ii)A lump sum payment equal to 12 months of Executive’s then-current BaseSalary;(iii)Provided that the Executive timely elects continued coverage under COBRA,the Company will reimburse the Executive for the monthly COBRA cost of continued health and dental coverage of the Executive andhis qualified beneficiaries paid by the Executive under the health and dental plans of the Company, less the amount that the Executivewould be required to contribute for health and dental coverage if the Executive were an active employee of the Company, for 12months (or, if less, for the duration that such COBRA coverage is available to Executive). Notwithstanding the above, if the Companydetermines in its sole discretion that it cannot provide the COBRA benefits described herein without violating applicable law (including,without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide Executive with a taxablelump sum payment in an amount equal to the then-unreimbursed monthly COBRA premiums.(f)Termination by Executive Without Good Reason. The Executive may terminate his employmentwithout Good Reason by providing the Company 30 days’ written notice of such termination. In the event of a termination ofemployment by the Executive under this Section 4(f), the Executive shall be entitled only to the Accrued Obligations. In the event oftermination of the Executive’s employment under this Section 4(f), the Company may, in its sole and absolute discretion, by writtennotice, accelerate such date of termination and still have it treated as a termination without Good Reason.(g)Termination Without Cause in connection with a Change in Control of the Company orResignation With Good Reason in connection with a Change in Control of the Company. If the Executive’s employment is terminatedby the Company (or any entity to which the obligations and benefits under this Agreement have been assigned pursuant to Section 9(b))without Cause or by the Executive for Good Reason, in either case during the two year period immediately following a Change inControl, then the Executive shall be entitled to the following:(i)The Accrued Obligations;(ii)A lump sum payment equal to 15 months of Executive’s then-current BaseSalary; 3  (iii)A lump sum payment equal to the Executive’s full Target Bonus for the fiscalyear in which the Termination Date occurs; (iv)Provided that the Executive timely elects continued coverage under COBRA,the Company will reimburse the Executive for the monthly COBRA cost of continued health and dental coverage of the Executive andhis qualified beneficiaries paid by the Executive under the health and dental plans of the Company, less the amount that the Executivewould be required to contribute for health and dental coverage if the Executive were an active employee of the Company, for 15months (or, if less, for the duration that such COBRA coverage is available to Executive). Notwithstanding the above, if the Companydetermines in its sole discretion that it cannot provide the COBRA benefits described herein without violating applicable law (including,without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide Executive with a taxablelump sum payment in an amount equal to the then-unreimbursed monthly COBRA premiums. (v)All then-unvested Equity Awards will vest in full.(h)Release. All rights, payments and benefits due to the Executive under this Section 4 (other thanthe Accrued Obligations) shall be conditioned on the Executive’s execution of a general release of claims against the Company and itsaffiliates substantially in the form attached hereto as Exhibit B (the “Release”) and on that Release becoming irrevocable within 60 daysfollowing the Termination Date. The severance described in this Section 4 (other than Accrued Obligations) shall be paid no later thanthe first business day following the sixtieth (60th) day following the termination of employment of Executive and in compliance with thetimeframe required under Section 409A as set forth herein, and the first payment will include the payments due and owing prior to thatpayment date but for the application of this sentence. If the Straddle Period (as defined below) spans two (2) calendar years, then thecash payments under this Section 4 (other than Accrued Obligations) shall first be made on the first business day in the second calendaryear that occurs after the expiration of the sixty (60)-day period in which the Release must be delivered and effective, as described inthis Section 4. The “Straddle Period” shall mean the sixty (60)-day period following a termination of employment in which theRelease is to be executed and become irrevocable pursuant to this Section 4.(i)Section 280G Certain Reductions of Payments by the Company.(1)Anything in this Agreement to the contrary notwithstanding, in the eventit shall be determined that any payment or distribution by the Company to or for the benefit of the Executive, whether paid or payableor distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would be nondeductible by theCompany for Federal income tax purposes because of Section 280G of the Code, then the aggregate present value of amounts payableor distributable to or for the benefit of the Executive pursuant to this Agreement (such payments or distributions pursuant to thisAgreement are hereinafter referred to as “Agreement Payments”) shall be reduced to the Reduced Amount. The “Reduced Amount”shall be an amount expressed in present value that avoids any Payment being nondeductible by the Company because of Section 280Gof the Code. To the extent necessary to avoid imposition of the Excise Tax, the amounts payable or benefits to be provided to theExecutive shall be reduced such that the reduction of compensation to be provided to the Executive is minimized. In applying thisprinciple, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where twoeconomically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro ratabasis (but not below zero). Anything to the contrary notwithstanding, if the Reduced Amount is zero and it is determined further thatany Payment which is not an Agreement Payment would nevertheless be nondeductible by the Company for Federal income taxpurposes because of Section 280G of the Code, then the aggregate present value of Payments which are not Agreement Payments shallalso be reduced (but not below zero) to an amount expressed in present value which maximizes the aggregate present value ofPayments without causing any Payment to be nondeductible by the Company because of Section 280G of the Code. If a reduction ofany Payment is required pursuant to this Section 4(i), such reduction shall occur to the amounts in the order that results in the greatesteconomic present value of all payments and benefits actually made or provided to the Executive. For purposes of this Section 4(i),present value shall be determined in accordance with Section 280G(d)(4) of the Code.4  (2)All determinations required to be made under this Section 4(i) shall bemade by a tax or compensation consulting firm of national reputation selected by the Company (the “Consulting Firm”), which shallprovide detailed supporting calculations both to the Company and the Executive within 20 business days of the date of termination orsuch earlier time as is requested by the Company and an opinion to the Executive that he has substantial authority not to report anyexcise tax on his Federal income tax return with respect to any Payments. Any such determination by the Consulting Firm shall bebinding upon the Company and the Executive. Within five business days thereafter, the Company shall pay to or distribute to or for thebenefit of the Executive such amounts as are then due to the Executive under this Agreement. All fees and expenses of the ConsultingFirm incurred in connection with the determinations contemplated by this Section 4(i) shall be borne by the Company.(3)As a result of the uncertainty in the application of Section 280G of theCode at the time of the initial determination by the Consulting Firm hereunder, it is possible that Payments will have been made by theCompany which should not have been made (“Overpayment”) or that additional Payments which will not have been made by theCompany could have been made (“Underpayment”), in each case, consistent with the calculations required to be made hereunder. Inthe event that the Consulting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against the Executivewhich the Consulting Firm believes has a high probability of success, determines that an Overpayment has been made, any suchOverpayment paid or distributed by the Company to or for the benefit of the Executive shall be promptly repaid to the Company by theExecutive. In the event that the Consulting Firm, based upon controlling precedent or other substantial authority, determines that anUnderpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executivetogether with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.(j)Cooperation. Following the Term of Employment, the Executive shall give his assistance andcooperation willingly, upon reasonable advance notice with due consideration for his other business or personal commitments, in anymatter relating to his position with the Company, or his expertise or experience as the Company may reasonably request, including hisattendance and truthful testimony where deemed appropriate by the Company, with respect to any investigation or the Company’sdefense or prosecution of any existing or future claims or litigations or other proceedings relating to matters in which he was involvedor potentially had knowledge by virtue of his employment with the Company. In no event shall his cooperation materially interfere withhis services for a subsequent employer or other similar service recipient. To the extent permitted by law, the Company agrees that (i) itshall promptly reimburse the Executive for his reasonable and documented expenses in connection with his rendering assistance and/orcooperation under this Section 4(j) upon his presentation of documentation for such expenses and (ii) the Executive shall be reasonablycompensated for any continued material services as required under this Section 4(j).(k)Return of Company Property. Following the Termination Date, the Executive or his personalrepresentative shall return all Company property in his possession, including but not limited to all computer equipment (hardware andsoftware), telephones, facsimile machines, cell phones and other communication devices, credit cards, office keys, security accesscards, badges, identification cards and all copies (including drafts) of any documentation or information (however stored) relating to thebusiness of the Company, its customers and clients or its prospective customers and clients.(l)Compliance with Section 409A.(i)General. It is the intention of both the Company and the Executive that thebenefits and rights to which the Executive could be entitled pursuant to this Agreement comply with Section 409A of the Code and theTreasury Regulations and other guidance promulgated or issued thereunder (“Section 409A”), to the extent that the requirements ofSection 409A are applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention.5  (ii)Distributions on Account of Separation from Service. If and to the extentrequired to comply with Section 409A, no payment or benefit required to be paid under this Agreement on account of termination ofthe Executive’s employment shall be made unless and until the Executive incurs a “separation from service” within the meaning ofSection 409A.(iii)Six Month Delay for Specified Employees. If the Executive is a “specifiedemployee” (within the meaning of Section 409A(a)(2)(B)(i) of the Code), then no payment or benefit that is payable on account of theExecutive’s “separation from service”, as that term is defined for purposes of Section 409A, shall be made before the date that is sixmonths after the Executive’s “separation from service” (or, if earlier, the date of the Executive’s death) if and to the extent that suchpayment or benefit constitutes deferred compensation (or may be nonqualified deferred compensation) under Section 409A and suchdeferral is required to comply with the requirements of Section 409A. Any payment or benefit delayed by reason of the prior sentenceshall be paid out or provided in a single lump sum at the end of such required delay period in order to catch up to the original paymentschedule.(iv)Treatment of Each Installment as a Separate Payment. For purposes ofapplying the provisions of Section 409A to this Agreement, each separately identified amount to which the Executive is entitled underthis Agreement shall be treated as a separate payment. In addition, any series of installment payments under this Agreement shall betreated as a right to a series of separate payments.(v)Taxable Reimbursements and In-Kind Benefits.(A)Any reimbursements by the Company to the Executiveof any eligible expenses under this Agreement that are not excludable from the Executive’s income for Federal income tax purposes(the “Taxable Reimbursements”) shall be made by no later than the last day of the taxable year of the Executive following the year inwhich the expense was incurred.(B)The amount of any Taxable Reimbursements, and thevalue of any in-kind benefits to be provided to the Executive, during any taxable year of the Executive shall not affect the expenseseligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of the Executive.(C)The right to Taxable Reimbursement, or in-kindbenefits, shall not be subject to liquidation or exchange for another benefit.(vi)Section 409A Compliance. Notwithstanding the foregoing, the Company doesnot make any representation to the Executive that the payments or benefits provided under this Agreement are exempt from, or satisfy,the requirements of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless theExecutive or any beneficiary of the Executive for any tax, additional tax, interest or penalties that the Executive or any beneficiary ofthe Executive may incur in the event that any provision of this Agreement, or any amendment or modification thereof, or any otheraction taken with respect thereto, is deemed to violate any of the requirements of Section 409A.5.Restrictive Covenants.(a)Confidential Information. The Executive shall execute and agree to be bound by the terms of theCompany’s Employee Invention Assignment, Confidentiality and Non-Competition Agreement (the “EIIA”) as provided therein. (b)Insider Trading Policies. Executive agrees that he shall comply with and be bound by theCompany’s insider trading policies with respect to the securities of the Company as now in effect or hereafter adopted or amended.6  (c)Clawback Provisions. All incentive and equity awards and payments shall be subject to theclawback policy of the Company, as now in effect or hereafter adopted or amended, and all applicable laws and rules and regulations ofthe stock exchanges and public market on which the securities of the Company are traded. (d)Injunction. It is recognized and hereby acknowledged by the parties hereto that a breach by theExecutive of any of the covenants contained in this Section 5 or the EIIA may cause irreparable harm and damage to the Company, andits Related Entities, the monetary amount of which may be virtually impossible to ascertain. As a result, the Executive recognizes andhereby acknowledges that the Company and its Related Entities shall be entitled to seek an injunction from any court of competentjurisdiction enjoining and restraining any violation of any or all of the covenants contained in this Section 5 or the EIIA by theExecutive or any of his affiliates, associates, partners or agents, either directly or indirectly, and that such right to injunction shall becumulative and in addition to whatever other remedies the Company may possess.6.Representations and Warranties of Executive. The Executive represents and warrants to the Company that:(a)The Executive’s employment will not conflict with or result in his breach of any agreement towhich he is a party or otherwise may be bound;(b)The Executive has not violated, and in connection with his employment with the Company willnot violate, any non-solicitation, non-competition or other similar covenant or agreement of a prior employer by which he is or may bebound; and(c)In connection with Executive’s employment with the Company, he will not use any confidentialor proprietary information that he may have obtained in connection with employment with any prior employer; and7.Indemnification. Subject to limitations imposed by law, the Company shall indemnify and hold harmless theExecutive to the fullest extent permitted by law from and against any and all claims, damages, expenses (including attorneys’ fees),judgments, penalties, fines, settlements, and all other liabilities incurred or paid by him in connection with the investigation, defense,prosecution, settlement or appeal of any threatened, pending or completed action, suit or proceeding, whether civil, criminal,administrative or investigative and to which the Executive was or is a party or is threatened to be made a party by reason of the fact thatthe Executive is or was an officer, employee or agent of the Company, or by reason of anything done or not done by the Executive inany such capacity or capacities, provided that the Executive acted in good faith, in a manner that was not grossly negligent orconstituted willful misconduct and in a manner he reasonably believed to be in or not opposed to the best interests of the Company,and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. 8.Definitions. When used in this Agreement, the following terms shall have the following meanings:(a)Accrued Obligations” means:(i)all accrued but unpaid Base Salary through the end of the Term of Employment;(ii)any unpaid or unreimbursed expenses incurred in accordance with Companypolicy to the extent incurred during the Term of Employment;(iii)any accrued but unpaid benefits provided under the Company’s employeebenefit plans, subject to and in accordance with the terms of those plans;7  (iv)any unpaid Bonus with respect to any completed fiscal year that has ended onor prior to the end of the Term of Employment; and(v)any accrued but unused vacation pay.(b)“Base Salary” means the salary provided for in Section 3(a) hereof or any increased salarygranted to Executive pursuant to Section 3(a) hereof.(c)“Beneficial Owner” and “Beneficial Ownership” shall have the meaning ascribed to such terms inRule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended.(d)“Board” means the Board of Directors of the Company.(e)“Bonus” means any bonus payable to the Executive pursuant to Section 3(b) hereof.(f)“Cause” means any of the following: (i)Executive’s conviction of or plea of nolo contendere to a felony or to any crimeinvolving moral turpitude;(ii)willful misconduct or gross negligence by the Executive resulting, in either case,in material economic or reputational harm to the Company or any of Related Entities;(iii)a willful failure by the Executive to carry out the reasonable and lawfuldirections of the CEO and failure by the Executive to remedy the failure within thirty (30) days after receipt of written notice of same,by the CEO;(iv)fraud, embezzlement, theft or dishonesty of a material nature by the Executiveagainst the Company or any Related Entity, or a willful material violation by the Executive of a policy or procedure of the Company orany Related Entity, resulting, in any case, in material, reputational or economic harm to the Company or any Related Entity; or(v) a willful material breach by the Executive of this Agreement andfailure by the Executive to remedy the material breach within 30 days after receipt of written notice of same, by the CEO.(g)“CEO” means the Chief Executive Officer of the Company.(h)“Change in Control” means the occurrence of any of the following events: (i) any Personbecomes the Beneficial Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of thetotal voting power represented by the Company’s then-outstanding voting securities; provided, however, that for purposes of thissubclause (i) the acquisition of additional securities by any one Person who is considered to own more than fifty percent (50%) of thetotal voting power of the securities of the Company will not be considered a Change in Control; (ii) the consummation of the sale ordisposition by the Company of all or substantially all of the Company’s assets; (iii) the consummation of a merger or consolidation ofthe Company with any other corporation, other than a merger or consolidation which would result in the voting securities of theCompany outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted intovoting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the votingsecurities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or (iv) achange in the effective control of the Company that occurs on the date that a majority of members of the Board is replaced during anytwelve (12) month period by members of the Board whose appointment or election is not endorsed by a majority of the members of theBoard prior to the date of the appointment or election. For purpose of this subclause (iv), if any Person is considered to be in effectivecontrol of the Company, the acquisition of additional control of the8  Company by the same Person will not be considered a Change in Control. For purposes of this definition, Persons will be considered tobe acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, orsimilar business transaction with the Company. (i)“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended fromtime to time.(j)“Code” means the Internal Revenue Code of 1986, as amended.(k)“Commencement Date” means the date of this Agreement. (l)“Disability” means the Executive’s inability, or failure, to perform the essential functions of hisposition, with or without reasonable accommodation, for any period of six months or more in any 12 month period, by reason of anymedically determinable physical or mental impairment.(m)“Equity Awards” means any stock options, restricted stock, restricted stock units, stockappreciation rights, phantom stock or other equity based awards granted by the Company to the Executive.(n)“Excise Tax” means any excise tax imposed by Section 4999 of the Code, together with anyinterest and penalties imposed with respect thereto, or any interest or penalties are incurred by the Executive with respect to any suchexcise tax.(o)“Good Reason” means the occurrence of any of the following events or conditions, without theExecutive’s express written consent:(i)a material diminution in the Executive’s authority, duties, or responsibilities,provided, however, that the mere acquisition or merger of the Company by itself shall not constitute a material diminution in theExecutive’s authority, duties, or responsibilities;(ii)a material reduction by the Company in the Executive’s annual Base Salary(which for purposes hereof is deemed to constitute a reduction of greater than 10%, unless such reduction applies as part of a salaryreduction program and such program includes similar reductions to all of the Executive’s direct reports); or(iii)the relocation of the Executive’s principal place of employment to a locationmore than 50 miles from the Executive’s principal place of employment immediately prior to the Executive’s termination.With respect to each of subsection (i), (ii) and (iii) above, the Executive must provide notice to the Company of the condition givingrise to “Good Reason” within 30 days of the initial existence of such condition, and the Company will have 30 days following suchnotice to remedy such condition. The Executive must resign the Executive’s employment no later than 30 days following theCompany’s failure to cure the Good Reason or written notice to the Executive that it will decline to do so.(p)“Group” shall have the meaning ascribed to such term in Section 13(d) of the SecuritiesExchange Act of 1934.(q)“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the SecuritiesExchange Act of 1934 and used in Sections 13(d) and 14(d) thereof.(r)“Related Entity” means any Person controlling, controlled by or under common control with theCompany or any of its subsidiaries. For this purpose, the terms “controlling,” “controlled by” and “under common control with” meanthe possession, directly or indirectly, of the power to direct or cause the direction of9  the management and policies of a Person, whether through the ownership of voting securities, as trustee or executor, by contract orotherwise, including (without limitation) the ownership, directly or indirectly, of securities having the power to elect a majority of theboard of directors or similar body governing the affairs of such Person.(s)“Target Bonus” has the meaning described in Section 3(b).(t)“Term of Employment” means the period during which the Executive shall be employed by theCompany pursuant to the terms of this Agreement, which period shall begin on the Commencement Date and continue until terminatedin accordance with Section 4 hereof.(u)“Termination Date” means the date on which the Term of Employment ends.9.Miscellaneous Provisions.(a)Taxes. All payments or transfers of property made by the Company to the Executive or his estateor beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine itshould withhold pursuant to any applicable law or regulation.(b)Assignment. The Company shall have the right to assign this Agreement and its rights andobligations hereunder in whole, but not in part, to any corporation or other entity with or into which the Company may hereafter mergeor consolidate or to which the Company may transfer all or substantially all of its assets, if in any such case said corporation or otherentity shall by operation of law or expressly in writing assume all obligations of the Company hereunder as fully as if it had beenoriginally made a party hereto, but may not otherwise assign this Agreement or its rights and obligations hereunder. The Executivemay not assign or transfer this Agreement or any rights or obligations hereunder.(c)Governing Law. Except as expressly set forth herein, this letter agreement and the rights andobligations of the parties hereto shall be construed in accordance with the laws of the Commonwealth of Massachusetts, without givingeffect to the principles of conflict of laws.(d)Arbitration and Class Action Waiver. Executive and the Company agree to submit to mandatorybinding arbitration any and all claims arising out of or related to Executive’s employment with the Company and the terminationthereof, including, but not limited to, claims for unpaid wages, wrongful termination, torts, stock or stock options or other ownershipinterest in the Company, and/or discrimination (including harassment), except as set forth below, based upon any federal, state or localordinance, statute, regulation or constitutional provision except that each party may, at its, his or her option, seek injunctive relief incourt related to the improper use, disclosure or misappropriation of a party’s private, proprietary, confidential or trade secretinformation (collectively, “Arbitrable Claims”). Further, to the fullest extent permitted by law, Executive and the Company agree thatno class or collective actions can be asserted in arbitration or otherwise. All claims, whether in arbitration or otherwise, must bebrought solely in Executive’s or the Company’s individual capacity, and not as a plaintiff or class member in any purported class orcollective proceeding. THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO ARBITRABLECLAIMS. THE PARTIES FURTHER WAIVE ANY RIGHTS THEY MAY HAVE TO PURSUE OR PARTICIPATE IN A CLASS ORCOLLECTIVE ACTION PERTAINING TO ANY ARBITRABLE CLAIMS BETWEEN YOU AND THE COMPANY.Notwithstanding anything to the contrary herein, nothing in this Arbitration and Class Action Waiver section restrictsExecutive’s right to pursue claims in court (a) on a representative action basis under applicable law or (b) for any alleged sexualharassment or any alleged unlawful discriminatory practices related to sexual harassment.10  This Agreement does not restrict Executive’s right to file administrative claims Executive may bring before any governmentagency where, as a matter of law, the parties may not restrict the employee’s ability to file such claims (including, but not limited to, theNational Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor). However, the partiesagree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrativeclaims. The arbitration shall be conducted in Boston, Massachusetts through JAMS before a single neutral arbitrator, in accordancewith the JAMS employment arbitration rules then in effect. The JAMS rules may be found and reviewed athttp://www.jamsadr.com/rules-employment-arbitration. If Executive is unable to access these rules, please let the Company know andExecutive will be provided with a hardcopy. The arbitrator shall issue a written decision that contains the essential findings andconclusions on which the decision is based. Executive and the Company agree that this Arbitration and Class Action Waiver Provisionshall be governed by the Federal Arbitration Act. Should any portion of this provision be found unenforceable, it shall be severed andthe remaining provisions shall remain in full force and effect.(e)Entire Agreement. This Agreement, together with the exhibit attached hereto, constitutes theentire agreement between the patties hereto with respect to the subject matter hereof and, upon its effectiveness, shall supersede all prioragreements, understandings and arrangements, both oral and written, between the Executive and the Company (or any of its RelatedEntities) with respect to such subject matter. This Agreement may not be modified in any way unless by a written instrument signed byboth the Company and the Executive.(f)Notices. All notices required or permitted to be given hereunder shall be in writing and shall bepersonally delivered by courier, sent by registered or certified mail, return receipt requested or sent by confirmed facsimile transmissionaddressed as set forth herein. Notices personally delivered, sent by facsimile or sent by overnight courier shall be deemed given on thedate of delivery and notices mailed in accordance with the foregoing shall be deemed given upon receipt by the addressee, asevidenced by the return receipt thereof. Notice shall be sent (i) if to the Company, addressed to the Company’s headquarters, Attention:the Company’s CEO, and (ii) if to the Executive, to his address as reflected on the payroll records of the Company, or to such otheraddress as either party shall request by notice to the other in accordance with this provision.(g)Benefits; Binding Effect. This Agreement shall be for the benefit of and binding upon the partieshereto and their respective heirs, personal representatives, legal representatives, successors and, where permitted and applicable,assigns, including, without limitation, any successor to the Company, whether by merger, consolidation, sale of stock, sale of assets orotherwise.(h)Right to Consult with Counsel. The Executive acknowledges having read and considered all ofthe provisions of this Agreement carefully, and having had the opportunity to consult with counsel of his own choosing, and, giventhis, the Executive agrees that the obligations created hereby are not unreasonable.(i)Severability. The invalidity of any one or more of the words, phrases, sentences, clauses,provisions, sections or articles contained in this Agreement shall not affect the enforceability of the remaining portions of thisAgreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the event that any one or moreof the words, phrases, sentences, clauses, provisions, sections or articles contained in this Agreement shall be declared invalid, thisAgreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, provisionsor provisions, section or sections or article or articles had not been inserted. If such invalidity is caused by length of time or size ofarea, or both, the otherwise invalid provision will be considered to be reduced to a period or area which would cure such invalidity.(j)Waivers. The waiver by either party hereto of a breach or violation of any term or provision ofthis Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation.11  (k)Damages; Attorneys’ Fees. Nothing contained herein shall be construed to prevent the Companyor the Executive from seeking and recovering from the other damages sustained by either or both of them as a result of its or his breachof any term or provision of this Agreement. Each party shall bear its own costs and attorneys’ fees.(l)No Set-off or Mitigation. The Company’s obligation to make the payments provided for in thisAgreement and otherwise to perform its obligations hereunder shall not be affected by any set off, counterclaim, recoupment, defenseor other claim, right or action which the Company may have against the Executive or others. In the event of any termination of theExecutive’s employment under this Agreement, he shall be under no obligation to seek other employment or otherwise in any way tomitigate the amount of any payment provided for hereunder.(m)Section Headings. The article, section and paragraph headings contained in this Agreement arefor reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.(n)No Third Party Beneficiary. The Related Entities are intended third party beneficiaries of thisAgreement. Otherwise, nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give anyperson other than the Company, the parties hereto and their respective heirs, personal representatives, legal representatives, successorsand permitted assigns, any rights or remedies under or by reason of this Agreement.(o)Counterparts. This Agreement may be executed in one or more counterparts, each of which shallbe deemed to be an original but all of which together shall constitute one and the same instrument and agreement.[Signature Page to Amended and Restated Executive Employment Agreement Follows]12  IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date first above written.CompanyKalVista Pharmaceuticals, Inc./s/ T. Andrew CrockettPrint Name: T. Andrew CrockettTitle: Chief Executive OfficerExecutive/s/ Benjamin L. PalleikoBenjamin L. Palleiko [Signature Page to Amended and Restated Executive Employment Agreement] 13  Exhibit BGeneral Release of Claims1.Benjamin L. Palleiko (“Executive”), for himself and his family, heirs, executors, administrators, legal representativesand their respective successors and assigns, in exchange for the consideration received pursuant to Section [4(e)] [4(g)] of the Amendedand Restated Executive Employment Agreement (the “Severance Benefits”) to which this release is attached as Exhibit B (the“Employment Agreement”), does hereby release and forever discharge KalVista Pharmaceuticals, Inc. (the “Company”), itssubsidiaries, affiliated companies, successors and assigns, and its current or former directors, officers, employees, shareholders oragents in such capacities (collectively with the Company, the “Released Parties”) from any and all actions, causes of action, suits,controversies, claims and demands whatsoever, for or by reason of any matter, cause or thing whatsoever, whether known or unknownincluding, but not limited to, all claims under any applicable laws arising under or in connection with Executive’s employment ortermination thereof, whether for tort, breach of express or implied employment contract, wrongful discharge, intentional infliction ofemotional distress, or defamation or injuries incurred on the job or incurred as a result of loss of employment. Without limiting thegenerality of the release provided above, Executive expressly waives any and all claims under Age Discrimination in Employment Act(“ADEA”) that he may have as of the date hereof. Executive further understands that, by signing this General Release of Claims, he isin fact waiving, releasing and forever giving up any claim under the ADEA as well as all other laws within the scope of this paragraph 1that may have existed on or prior to the date hereof. Notwithstanding anything in this paragraph 1 to the contrary, this General Releaseof Claims shall not apply to (i) any rights to receive any payments or benefits to which the Executive is entitled under COBRA, (ii) anyrights or claims that may arise as a result of events occurring after the date this General Release of Claims is executed, (iii) anyindemnification and advancement rights Executive may have as a former employee, officer or director of the Company or itssubsidiaries or affiliated companies (including any rights under Section 7 of the Employment Agreement), (iv) any claims for benefitsunder any directors’ and officers’ liability policy maintained by the Company or its subsidiaries or affiliated companies in accordancewith the terms of such policy, (v) rights to vested benefits under the Company’s 401(k) plan, and (vi) any rights as a holder of equitysecurities of the Company.2.Executive understands that nothing in this Release shall in any way limit or prohibit Executive from engaging in anyProtected Activity. For purposes of this Release, “Protected Activity” shall mean filing a charge, complaint, or report with, or otherwisecommunicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or localgovernment agency or commission, including the Securities and Exchange Commission, the Equal Employment OpportunityCommission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”).Executive understands that in connection with such Protected Activity, Executive is permitted to disclose documents or otherinformation as permitted by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding theforegoing, Executive agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information thatmay constitute Company confidential information to any parties other than the Government Agencies. Executive further understandsthat “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications. In addition,pursuant to the Defend Trade Secrets Act of 2016, Executive is notified that an individual will not be held criminally or civilly liableunder any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state, or localgovernment official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation oflaw, or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made underseal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclosethe trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files anydocument containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. This Releasedoes not limit Executive’s right to receive an award for information provided to any Government Agencies.14  3.Executive represents that he has not filed against the Released Parties any complaints, charges, or lawsuits arisingout of his employment, or any other matter arising on or prior to the date of this General Release of Claims, and covenants and agreesthat he will never individually or with any person file, or commence the filing of any lawsuits, complaints or proceedings with anygovernmental agency, or against the Released Parties with respect to any of the matters released by Executive pursuant to paragraph 1hereof; provided, that nothing herein shall prevent Executive from filing a charge or complaint with the Equal Employment OpportunityCommission (“EEOC”) or similar federal or state agency or the Executive’s ability to participate in any investigation or proceedingconducted by such agency. Nothing in this paragraph shall serve to limit, restrain or impair Executive’s rights under paragraph 2above. 4.Executive acknowledges that, in the absence of his execution of this General Release of Claims, the SeveranceBenefits would not otherwise be due to him.5.Executive acknowledges and agrees that he received adequate consideration in exchange for agreeing to thecovenants contained in Section 5 of the Employment Agreement and the EIAA (as defined therein), that such covenants remainreasonable and necessary to protect the legitimate business interests of the Company and its affiliates and that he will continue tocomply with those covenants.6.Executive hereby acknowledges that the Company has informed him that he has up to 21 days to sign this GeneralRelease of Claims and he may knowingly and voluntarily waive that 21 day period by signing this General Release of Claimsearlier. Executive also understands that he shall have seven days following the date on which he signs this General Release of Claimswithin which to revoke it by providing a written notice of his revocation to the Company.7.Executive acknowledges and agrees that this General Release of Claims will be governed by and construed andenforced in accordance with the internal laws of the State of Massachusetts applicable to contracts made and to be performed entirelywithin such State.8.Executive acknowledges that he has read this General Release of Claims, that he has been advised that he shouldconsult with an attorney before he executes this general release of claims, and that he understands all of its terms and executes itvoluntarily and with full knowledge of its significance and the consequences thereof.9.This General Release of Claims shall become irrevocable on the eighth day following Executive’s execution of thisGeneral Release of Claims, unless previously revoked in accordance with paragraph 6, above.Intending to be legally bound hereby, Executive has executed this General Release of Claims on ___________, 20__. Executive Benjamin L. Palleiko 15 Exhibit 10.13AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENTThis Amended and Restated Executive Employment Agreement (“Agreement”) is made and entered into on this 26th day ofJune, 2019 by and between KalVista Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Andreas Maetzel(hereinafter, the “Executive”).RECITALSWHEREAS, the Executive is currently employed by the Company;WHEREAS, the terms of Executive’s employment with the Company are set forth in an Executive Employment Agreement byand between the Company and the Executive previously entered into on the 21st day of August, 2017 (the “First Agreement);WHEREAS, the Company and the Executive now desire to amend and restate the First Agreement;WHEREAS, the Company and Employee intend that this Agreement shall supersede and replace the First Agreement; andWHEREAS, the Company desires to continue to employ the Executive and the Executive desires to continue to be employedby the Company on the terms herein described.NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, and for other good and valuableconsideration, the receipt and sufficiency of which are mutually acknowledged, the Company and the Executive hereby agree asfollows:1.Employment. The Company hereby agrees to employ the Executive and the Executive hereby agrees to serve theCompany during the Term of Employment on the terms and conditions set forth herein. It is anticipated that Executive will relocate tothe Boston metropolitan area at a time to be mutually agreed upon by the Company and Executive.2.Position and Duties of Executive. During the Term of Employment, the Executive shall be employed and serve asthe SVP Medical of the Company, and shall have such duties typically associated with such titles, including, without limitationsupervising operations and management of the Company and its subsidiaries. The Executive shall faithfully and diligently perform allservices as may be assigned to him by the CEO, and shall exercise such power and authority as may from time to time be delegated tohim by the CEO. The Executive shall devote his full business time, attention and efforts to the performance of his duties under thisAgreement, render such services to the best of his ability, and use his reasonable best efforts to promote the interests of theCompany. The Executive shall not engage in any other business or occupation during the Term of Employment, including, withoutlimitation, any activity that (i) conflicts with the interests of the Company or its subsidiaries, (ii) interferes with the proper and efficientperformance of his duties for the Company, or (iii) interferes with the exercise of his judgment in the Company’s bestinterests. Notwithstanding the foregoing or any other provision of this Agreement, it shall not be a breach or violation of thisAgreement for the Executive to (x) serve on civic or charitable boards or committees, (y) deliver lectures or fulfill speakingengagements, or (z) manage personal investments, so long as any such activities do not interfere with or detract from the performanceof the Executive’s responsibilities to the Company in accordance with this Agreement. 3.Compensation and Benefits.(a)Base Salary. The Executive shall receive a Base Salary at the annual rate of $355,000.00,effective as of May 1, 2019, during the Term of Employment, with such Base Salary payable in installments consistent with theCompany’s normal payroll schedule, subject to applicable withholding and other taxes. The Base Salary shall be reviewed, at leastannually.  (b)Bonuses. During the Term of Employment, the Executive shall participate in the Company’sannual incentive compensation plan, program and/or arrangements applicable to senior-level executives, as established and modifiedfrom time to time by the Compensation Committee of the Board in its sole discretion. During the Term of Employment, the Executiveshall have a target bonus opportunity under such plan or program equal to 35% of his current Base Salary (the “Target Bonus”), basedon satisfaction of performance criteria to be established by the Compensation Committee of the Board within the first three months ofeach fiscal year that begins during the Term of Employment. Payment of annual incentive compensation awards shall be made in thesame manner and at the same time that other senior-level executives receive their annual incentive compensation awards, but in noevent later than 2 ½ months following the last day of the applicable Company fiscal year, and, except as otherwise provided herein, willbe subject to the Executive’s continued employment through the last day of the applicable Company fiscal year. (c)Compensation/Benefit Programs. During the Term of Employment, the Executive shall beentitled to participate in all medical, dental, hospitalization, accidental death and dismemberment, disability, travel and life insuranceplans, and any and all other plans as are presently and hereinafter offered by the Company to its executive personnel, includingsavings, pension, profit-sharing and deferred compensation plans, subject to the general eligibility and participation provisions set forthin such plans.(d)Equity Awards. During the Term of Employment, the Executive shall be eligible to be grantedEquity Awards. The number and type of such Equity Awards, and the terms and conditions thereof, shall be determined by the Boardor the Compensation Committee of the Board, in its discretion(e)Vacation. The Executive shall be entitled to paid vacation each calendar year during the Term ofEmployment, in accordance with and subject to the terms of the Company’s then effective vacation or paid time off policy.(f)Relocation Expenses. Subject to submission of proper substantiation by the Executive, andsubject to such rules and guidelines as the Company may from time to time adopt with respect to the reimbursement of reasonablebusiness expenses of executive personnel, the Company shall reimburse you for your relocation expenses up to a maximum of$25,000.(g)Reimbursement of Reasonable Business Expenses. Subject to submission of propersubstantiation by the Executive, and subject to such rules and guidelines as the Company may from time to time adopt with respect tothe reimbursement of reasonable business expenses of executive personnel, the Company shall reimburse the Executive for allreasonable expenses actually paid or incurred by the Executive during the Term of Employment in the course of and pursuant to thebusiness of the Company. In accordance with and subject to the Company’s standard travel and business expense reimbursementpolicy, the Company will reimburse the Executive for reasonable travel expenses incurred traveling to the Company’s offices in Boston,Massachusetts (if the Executive remains located in North Carolina) and the United Kingdom. The Executive shall account to theCompany in writing for all expenses for which reimbursement is sought and shall supply to the Company copies of all relevantinvoices, receipts or other evidence reasonably requested by the Company.4.Termination.(a)General. The Term of Employment shall terminate upon the earliest to occur of (i) the Executive’sdeath, (ii) a termination by the Company by reason of the Executive’s Disability, (iii) a termination by the Company with or withoutCause, or (iv) a termination by Executive with or without Good Reason. Upon any termination of Executive’s employment for anyreason, except as may otherwise be requested by the Company in writing and agreed upon in writing by Executive, the Executive shallresign from any and all directorships, committee memberships or any other positions Executive holds with the Company or any of itsRelated Entities.(b)Termination by the Company for Cause. The Company shall at all times have the right, uponwritten notice to the Executive, to terminate the Term of Employment for Cause. In no event shall a2  termination of the Executive’s employment for Cause occur unless the Company gives written notice to the Executive in accordancewith this Agreement stating with reasonable specificity the events or actions that constitute Cause. In the event that the Term ofEmployment is terminated by the Company for Cause, Executive shall be entitled only to the Accrued Obligations.(c)Disability. The Company shall have the option, in accordance with applicable law, to terminatethe Term of Employment upon written notice to the Executive at any time during which the Executive is suffering from a Disability. Inthe event that the Term of Employment is terminated due to the Executive’s Disability, the Executive shall be entitled to (i) the AccruedObligations and (ii) any insurance benefits to which he and his beneficiaries are entitled as a result of his Disability.(d)Death. In the event that the Term of Employment is terminated due to the Executive’s death, theExecutive’s estate shall be entitled to (i) the Accrued Obligations and (ii) any insurance benefits to which he and his beneficiaries areentitled as a result of his death.(e)Termination Without Cause outside of a Change in Control of the Company or Resignation WithGood Reason outside of a Change in Control of the Company. The Company may terminate the Term of Employment without Cause,and the Executive may terminate the Term of Employment for Good Reason, at any time upon written notice. If the Term ofEmployment is terminated by the Company without Cause (other than due to the Executive’s death or Disability) or by the Executivefor Good Reason, in either case prior to the date of a Change in Control or more than two years after a Change in Control, the Executiveshall be entitled to the following: (i)The Accrued Obligations;(ii)A lump sum payment equal to 9 months of Executive’s then-current BaseSalary;(iii)Provided that the Executive timely elects continued coverage under COBRA,the Company will reimburse the Executive for the monthly COBRA cost of continued health and dental coverage of the Executive andhis qualified beneficiaries paid by the Executive under the health and dental plans of the Company, less the amount that the Executivewould be required to contribute for health and dental coverage if the Executive were an active employee of the Company, for 9 months(or, if less, for the duration that such COBRA coverage is available to Executive). Notwithstanding the above, if the Companydetermines in its sole discretion that it cannot provide the COBRA benefits described herein without violating applicable law (including,without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide Executive with a taxablelump sum payment in an amount equal to the then-unreimbursed monthly COBRA premiums.(f)Termination by Executive Without Good Reason. The Executive may terminate his employmentwithout Good Reason by providing the Company 30 days’ written notice of such termination. In the event of a termination ofemployment by the Executive under this Section 4(f), the Executive shall be entitled only to the Accrued Obligations. In the event oftermination of the Executive’s employment under this Section 4(f), the Company may, in its sole and absolute discretion, by writtennotice, accelerate such date of termination and still have it treated as a termination without Good Reason.(g)Termination Without Cause in connection with a Change in Control of the Company orResignation With Good Reason in connection with a Change in Control of the Company. If the Executive’s employment is terminatedby the Company (or any entity to which the obligations and benefits under this Agreement have been assigned pursuant to Section 9(b))without Cause or by the Executive for Good Reason, in either case during the two year period immediately following a Change inControl, then the Executive shall be entitled to the following:3  (i)The Accrued Obligations;(ii)A lump sum payment equal to 12 months of Executive’s then-current BaseSalary; (iii)A lump sum payment equal to the Executive’s full Target Bonus for the fiscalyear in which the Termination Date occurs; (iv)Provided that the Executive timely elects continued coverage under COBRA,the Company will reimburse the Executive for the monthly COBRA cost of continued health and dental coverage of the Executive andhis qualified beneficiaries paid by the Executive under the health and dental plans of the Company, less the amount that the Executivewould be required to contribute for health and dental coverage if the Executive were an active employee of the Company, for 12months (or, if less, for the duration that such COBRA coverage is available to Executive). Notwithstanding the above, if the Companydetermines in its sole discretion that it cannot provide the COBRA benefits described herein without violating applicable law (including,without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide Executive with a taxablelump sum payment in an amount equal to the then-unreimbursed monthly COBRA premiums. (v)All then-unvested Equity Awards will vest in full.(h)Release. All rights, payments and benefits due to the Executive under this Section 4 (other thanthe Accrued Obligations) shall be conditioned on the Executive’s execution of a general release of claims against the Company and itsaffiliates substantially in the form attached hereto as Exhibit B (the “Release”) and on that Release becoming irrevocable within 60 daysfollowing the Termination Date. The severance described in this Section 4 (other than Accrued Obligations) shall be paid no later thanthe first business day following the sixtieth (60th) day following the termination of employment of Executive and in compliance with thetimeframe required under Section 409A as set forth herein, and the first payment will include the payments due and owing prior to thatpayment date but for the application of this sentence. If the Straddle Period (as defined below) spans two (2) calendar years, then thecash payments under this Section 4 (other than Accrued Obligations) shall first be made on the first business day in the second calendaryear that occurs after the expiration of the sixty (60)-day period in which the Release must be delivered and effective, as described inthis Section 4. The “Straddle Period” shall mean the sixty (60)-day period following a termination of employment in which theRelease is to be executed and become irrevocable pursuant to this Section 4.(i)Section 280G Certain Reductions of Payments by the Company.(1)Anything in this Agreement to the contrary notwithstanding, in the eventit shall be determined that any payment or distribution by the Company to or for the benefit of the Executive, whether paid or payableor distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would be nondeductible by theCompany for Federal income tax purposes because of Section 280G of the Code, then the aggregate present value of amounts payableor distributable to or for the benefit of the Executive pursuant to this Agreement (such payments or distributions pursuant to thisAgreement are hereinafter referred to as “Agreement Payments”) shall be reduced to the Reduced Amount. The “Reduced Amount”shall be an amount expressed in present value that avoids any Payment being nondeductible by the Company because of Section 280Gof the Code. To the extent necessary to avoid imposition of the Excise Tax, the amounts payable or benefits to be provided to theExecutive shall be reduced such that the reduction of compensation to be provided to the Executive is minimized. In applying thisprinciple, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where twoeconomically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro ratabasis (but not below zero). Anything to the contrary notwithstanding, if the Reduced Amount is zero and it is determined further thatany Payment which is not an Agreement Payment would nevertheless be nondeductible by the Company for Federal income taxpurposes because of Section 280G of the Code, then the aggregate present value of Payments which are not Agreement Payments shallalso be reduced (but not below zero) to an amount expressed in present4  value which maximizes the aggregate present value of Payments without causing any Payment to be nondeductible by the Companybecause of Section 280G of the Code. If a reduction of any Payment is required pursuant to this Section 4(i), such reduction shall occurto the amounts in the order that results in the greatest economic present value of all payments and benefits actually made or provided tothe Executive. For purposes of this Section 4(i), present value shall be determined in accordance with Section 280G(d)(4) of the Code.(2)All determinations required to be made under this Section 4(i) shall bemade by a tax or compensation consulting firm of national reputation selected by the Company (the “Consulting Firm”), which shallprovide detailed supporting calculations both to the Company and the Executive within 20 business days of the date of termination orsuch earlier time as is requested by the Company and an opinion to the Executive that he has substantial authority not to report anyexcise tax on his Federal income tax return with respect to any Payments. Any such determination by the Consulting Firm shall bebinding upon the Company and the Executive. Within five business days thereafter, the Company shall pay to or distribute to or for thebenefit of the Executive such amounts as are then due to the Executive under this Agreement. All fees and expenses of the ConsultingFirm incurred in connection with the determinations contemplated by this Section 4(i) shall be borne by the Company.(3)As a result of the uncertainty in the application of Section 280G of theCode at the time of the initial determination by the Consulting Firm hereunder, it is possible that Payments will have been made by theCompany which should not have been made (“Overpayment”) or that additional Payments which will not have been made by theCompany could have been made (“Underpayment”), in each case, consistent with the calculations required to be made hereunder. Inthe event that the Consulting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against the Executivewhich the Consulting Firm believes has a high probability of success, determines that an Overpayment has been made, any suchOverpayment paid or distributed by the Company to or for the benefit of the Executive shall be promptly repaid to the Company by theExecutive. In the event that the Consulting Firm, based upon controlling precedent or other substantial authority, determines that anUnderpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executivetogether with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.(j)Cooperation. Following the Term of Employment, the Executive shall give his assistance andcooperation willingly, upon reasonable advance notice with due consideration for his other business or personal commitments, in anymatter relating to his position with the Company, or his expertise or experience as the Company may reasonably request, including hisattendance and truthful testimony where deemed appropriate by the Company, with respect to any investigation or the Company’sdefense or prosecution of any existing or future claims or litigations or other proceedings relating to matters in which he was involvedor potentially had knowledge by virtue of his employment with the Company. In no event shall his cooperation materially interfere withhis services for a subsequent employer or other similar service recipient. To the extent permitted by law, the Company agrees that (i) itshall promptly reimburse the Executive for his reasonable and documented expenses in connection with his rendering assistance and/orcooperation under this Section 4(j) upon his presentation of documentation for such expenses and (ii) the Executive shall be reasonablycompensated for any continued material services as required under this Section 4(j).(k)Return of Company Property. Following the Termination Date, the Executive or his personalrepresentative shall return all Company property in his possession, including but not limited to all computer equipment (hardware andsoftware), telephones, facsimile machines, cell phones and other communication devices, credit cards, office keys, security accesscards, badges, identification cards and all copies (including drafts) of any documentation or information (however stored) relating to thebusiness of the Company, its customers and clients or its prospective customers and clients.(l)Compliance with Section 409A.5  (i)General. It is the intention of both the Company and the Executive that thebenefits and rights to which the Executive could be entitled pursuant to this Agreement comply with Section 409A of the Code and theTreasury Regulations and other guidance promulgated or issued thereunder (“Section 409A”), to the extent that the requirements ofSection 409A are applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention.(ii)Distributions on Account of Separation from Service. If and to the extentrequired to comply with Section 409A, no payment or benefit required to be paid under this Agreement on account of termination ofthe Executive’s employment shall be made unless and until the Executive incurs a “separation from service” within the meaning ofSection 409A.(iii)Six Month Delay for Specified Employees. If the Executive is a “specifiedemployee” (within the meaning of Section 409A(a)(2)(B)(i) of the Code), then no payment or benefit that is payable on account of theExecutive’s “separation from service”, as that term is defined for purposes of Section 409A, shall be made before the date that is sixmonths after the Executive’s “separation from service” (or, if earlier, the date of the Executive’s death) if and to the extent that suchpayment or benefit constitutes deferred compensation (or may be nonqualified deferred compensation) under Section 409A and suchdeferral is required to comply with the requirements of Section 409A. Any payment or benefit delayed by reason of the prior sentenceshall be paid out or provided in a single lump sum at the end of such required delay period in order to catch up to the original paymentschedule.(iv)Treatment of Each Installment as a Separate Payment. For purposes ofapplying the provisions of Section 409A to this Agreement, each separately identified amount to which the Executive is entitled underthis Agreement shall be treated as a separate payment. In addition, any series of installment payments under this Agreement shall betreated as a right to a series of separate payments.(v)Taxable Reimbursements and In-Kind Benefits.(A)Any reimbursements by the Company to the Executiveof any eligible expenses under this Agreement that are not excludable from the Executive’s income for Federal income tax purposes(the “Taxable Reimbursements”) shall be made by no later than the last day of the taxable year of the Executive following the year inwhich the expense was incurred.(B)The amount of any Taxable Reimbursements, and thevalue of any in-kind benefits to be provided to the Executive, during any taxable year of the Executive shall not affect the expenseseligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of the Executive.(C)The right to Taxable Reimbursement, or in-kindbenefits, shall not be subject to liquidation or exchange for another benefit.(vi)Section 409A Compliance. Notwithstanding the foregoing, the Company doesnot make any representation to the Executive that the payments or benefits provided under this Agreement are exempt from, or satisfy,the requirements of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless theExecutive or any beneficiary of the Executive for any tax, additional tax, interest or penalties that the Executive or any beneficiary ofthe Executive may incur in the event that any provision of this Agreement, or any amendment or modification thereof, or any otheraction taken with respect thereto, is deemed to violate any of the requirements of Section 409A.5.Restrictive Covenants.(a)Confidential Information. The Executive shall execute and agree to be bound by the terms of theCompany’s Employee Invention Assignment, Confidentiality and Non-Competition Agreement (the “EIIA”) as provided therein. 6  (b)Insider Trading Policies. Executive agrees that he shall comply with and be bound by theCompany’s insider trading policies with respect to the securities of the Company as now in effect or hereafter adopted or amended.(c)Clawback Provisions. All incentive and equity awards and payments shall be subject to theclawback policy of the Company, as now in effect or hereafter adopted or amended, and all applicable laws and rules and regulations ofthe stock exchanges and public market on which the securities of the Company are traded. (d)Injunction. It is recognized and hereby acknowledged by the parties hereto that a breach by theExecutive of any of the covenants contained in this Section 5 or the EIIA may cause irreparable harm and damage to the Company, andits Related Entities, the monetary amount of which may be virtually impossible to ascertain. As a result, the Executive recognizes andhereby acknowledges that the Company and its Related Entities shall be entitled to seek an injunction from any court of competentjurisdiction enjoining and restraining any violation of any or all of the covenants contained in this Section 5 or the EIIA by theExecutive or any of his affiliates, associates, partners or agents, either directly or indirectly, and that such right to injunction shall becumulative and in addition to whatever other remedies the Company may possess.6.Representations and Warranties of Executive. The Executive represents and warrants to the Company that:(a)The Executive’s employment will not conflict with or result in his breach of any agreement towhich he is a party or otherwise may be bound;(b)The Executive has not violated, and in connection with his employment with the Company willnot violate, any non-solicitation, non-competition or other similar covenant or agreement of a prior employer by which he is or may bebound; and(c)In connection with Executive’s employment with the Company, he will not use any confidentialor proprietary information that he may have obtained in connection with employment with any prior employer; and7.Indemnification. Subject to limitations imposed by law, the Company shall indemnify and hold harmless theExecutive to the fullest extent permitted by law from and against any and all claims, damages, expenses (including attorneys’ fees),judgments, penalties, fines, settlements, and all other liabilities incurred or paid by him in connection with the investigation, defense,prosecution, settlement or appeal of any threatened, pending or completed action, suit or proceeding, whether civil, criminal,administrative or investigative and to which the Executive was or is a party or is threatened to be made a party by reason of the fact thatthe Executive is or was an officer, employee or agent of the Company, or by reason of anything done or not done by the Executive inany such capacity or capacities, provided that the Executive acted in good faith, in a manner that was not grossly negligent orconstituted willful misconduct and in a manner he reasonably believed to be in or not opposed to the best interests of the Company,and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. 8.Definitions. When used in this Agreement, the following terms shall have the following meanings:(a)Accrued Obligations” means:(i)all accrued but unpaid Base Salary through the end of the Term of Employment;(ii)any unpaid or unreimbursed expenses incurred in accordance with Companypolicy to the extent incurred during the Term of Employment;7  (iii)any accrued but unpaid benefits provided under the Company’s employeebenefit plans, subject to and in accordance with the terms of those plans;(iv)any unpaid Bonus with respect to any completed fiscal year that has ended onor prior to the end of the Term of Employment; and(v)any accrued but unused vacation pay.(b)“Base Salary” means the salary provided for in Section 3(a) hereof or any increased salarygranted to Executive pursuant to Section 3(a) hereof.(c)“Beneficial Owner” and “Beneficial Ownership” shall have the meaning ascribed to such terms inRule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended.(d)“Board” means the Board of Directors of the Company.(e)“Bonus” means any bonus payable to the Executive pursuant to Section 3(b) hereof.(f)“Cause” means any of the following: (i)Executive’s conviction of or plea of nolo contendere to a felony or to any crimeinvolving moral turpitude;(ii)willful misconduct or gross negligence by the Executive resulting, in either case,in material economic or reputational harm to the Company or any of Related Entities;(iii)a willful failure by the Executive to carry out the reasonable and lawfuldirections given to him with respect to his employment as the Company’s Senior Vice President Medical and failure by the Executive toremedy the failure within thirty (30) days after receipt of written notice of same from the Company;(iv)fraud, embezzlement, theft or dishonesty of a material nature by the Executiveagainst the Company or any Related Entity, or a willful material violation by the Executive of a policy or procedure of the Company orany Related Entity, resulting, in any case, in material, reputational or economic harm to the Company or any Related Entity; or(v) a willful material breach by the Executive of this Agreement andfailure by the Executive to remedy the material breach within 30 days after receipt of written notice of same by the Company.(g)“CEO” means the Chief Executive Officer of the Company.(h)“Change in Control” means the occurrence of any of the following events: (i) any Personbecomes the Beneficial Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of thetotal voting power represented by the Company’s then-outstanding voting securities; provided, however, that for purposes of thissubclause (i) the acquisition of additional securities by any one Person who is considered to own more than fifty percent (50%) of thetotal voting power of the securities of the Company will not be considered a Change in Control; (ii) the consummation of the sale ordisposition by the Company of all or substantially all of the Company’s assets; (iii) the consummation of a merger or consolidation ofthe Company with any other corporation, other than a merger or consolidation which would result in the voting securities of theCompany outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted intovoting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the votingsecurities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or (iv) achange in the effective control of the Company that occurs on the date that a majority of members of the Board is replaced during anytwelve (12)8  month period by members of the Board whose appointment or election is not endorsed by a majority of the members of the Board priorto the date of the appointment or election. For purpose of this subclause (iv), if any Person is considered to be in effective control ofthe Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control. Forpurposes of this definition, Persons will be considered to be acting as a group if they are owners of a corporation that enters into amerger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. (i)“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended fromtime to time.(j)“Code” means the Internal Revenue Code of 1986, as amended.(k)“Commencement Date” means the date of this Agreement. (l)“Disability” means the Executive’s inability, or failure, to perform the essential functions of hisposition, with or without reasonable accommodation, for any period of six months or more in any 12 month period, by reason of anymedically determinable physical or mental impairment.(m)“Equity Awards” means any stock options, restricted stock, restricted stock units, stockappreciation rights, phantom stock or other equity based awards granted by the Company to the Executive.(n)“Excise Tax” means any excise tax imposed by Section 4999 of the Code, together with anyinterest and penalties imposed with respect thereto, or any interest or penalties are incurred by the Executive with respect to any suchexcise tax.(o)“Good Reason” means the occurrence of any of the following events or conditions, without theExecutive’s express written consent:(i)a material reduction by the Company in the Executive’s annual Base Salary(which for purposes hereof is deemed to constitute a reduction of greater than 10%, unless such reduction applies as part of a salaryreduction program and such program includes similar reductions to all of the Executive’s direct reports); or(ii)the relocation of the Executive’s principal place of employment to a locationmore than 50 miles from the Executive’s principal place of employment immediately prior to the Executive’s termination (excluding theExecutive’s contemplated relocation to the Boston metropolitan area).With respect to each of subsection (i) and (ii) above, the Executive must provide notice to the Company of the condition giving rise to“Good Reason” within 30 days of the initial existence of such condition, and the Company will have 30 days following such notice toremedy such condition. The Executive must resign the Executive’s employment no later than 30 days following the Company’s failureto cure the Good Reason or written notice to the Executive that it will decline to do so.(p)“Group” shall have the meaning ascribed to such term in Section 13(d) of the SecuritiesExchange Act of 1934.(q)“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the SecuritiesExchange Act of 1934 and used in Sections 13(d) and 14(d) thereof.(r)“Related Entity” means any Person controlling, controlled by or under common control with theCompany or any of its subsidiaries. For this purpose, the terms “controlling,” “controlled by” and “under common control with” meanthe possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whetherthrough the ownership of voting securities, as trustee or9  executor, by contract or otherwise, including (without limitation) the ownership, directly or indirectly, of securities having the power toelect a majority of the board of directors or similar body governing the affairs of such Person.(s)“Target Bonus” has the meaning described in Section 3(b).(t)“Term of Employment” means the period during which the Executive shall be employed by theCompany pursuant to the terms of this Agreement, which period shall begin on the Commencement Date and continue until terminatedin accordance with Section 4 hereof.(u)“Termination Date” means the date on which the Term of Employment ends.9.Miscellaneous Provisions.(a)Taxes. All payments or transfers of property made by the Company to the Executive or his estateor beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine itshould withhold pursuant to any applicable law or regulation.(b)Assignment. The Company shall have the right to assign this Agreement and its rights andobligations hereunder in whole, but not in part, to any corporation or other entity with or into which the Company may hereafter mergeor consolidate or to which the Company may transfer all or substantially all of its assets, if in any such case said corporation or otherentity shall by operation of law or expressly in writing assume all obligations of the Company hereunder as fully as if it had beenoriginally made a party hereto, but may not otherwise assign this Agreement or its rights and obligations hereunder. The Executivemay not assign or transfer this Agreement or any rights or obligations hereunder.(c)Governing Law and At-will nature of Employment. Except as expressly set forth herein, this letteragreement and the rights and obligations of the parties hereto shall be construed in accordance with the laws of the Commonwealth ofMassachusetts, without giving effect to the principles of conflict of laws. Executive’s employment with the Company is employment at-will, which means either Executive or the Company may terminate Executive’s employment at any time and for any reason subject tothe provisions of Section 4 of this Agreement.(d)Arbitration and Class Action Waiver. Executive and the Company agree to submit to mandatorybinding arbitration any and all claims arising out of or related to Executive’s employment with the Company and the terminationthereof, including, but not limited to, claims for unpaid wages, wrongful termination, torts, stock or stock options or other ownershipinterest in the Company, and/or discrimination (including harassment), except as set forth below, based upon any federal, state or localordinance, statute, regulation or constitutional provision except that each party may, at its, his or her option, seek injunctive relief incourt related to the improper use, disclosure or misappropriation of a party’s private, proprietary, confidential or trade secretinformation (collectively, “Arbitrable Claims”). Further, to the fullest extent permitted by law, Executive and the Company agree thatno class or collective actions can be asserted in arbitration or otherwise. All claims, whether in arbitration or otherwise, must bebrought solely in Executive’s or the Company’s individual capacity, and not as a plaintiff or class member in any purported class orcollective proceeding. THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO ARBITRABLECLAIMS. THE PARTIES FURTHER WAIVE ANY RIGHTS THEY MAY HAVE TO PURSUE OR PARTICIPATE IN A CLASS ORCOLLECTIVE ACTION PERTAINING TO ANY ARBITRABLE CLAIMS BETWEEN YOU AND THE COMPANY.Notwithstanding anything to the contrary herein, nothing in this Arbitration and Class Action Waiver section restrictsExecutive’s right to pursue claims in court (a) on a representative action basis under applicable law or (b) for any alleged sexualharassment or any alleged unlawful discriminatory practices related to sexual harassment.10  This Agreement does not restrict Executive’s right to file administrative claims Executive may bring before any governmentagency where, as a matter of law, the parties may not restrict the employee’s ability to file such claims (including, but not limited to, theNational Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor). However, the partiesagree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrativeclaims. The arbitration shall be conducted in Boston, Massachusetts through JAMS before a single neutral arbitrator, in accordancewith the JAMS employment arbitration rules then in effect. The JAMS rules may be found and reviewed athttp://www.jamsadr.com/rules-employment-arbitration. If Executive is unable to access these rules, please let the Company know andExecutive will be provided with a hardcopy. The arbitrator shall issue a written decision that contains the essential findings andconclusions on which the decision is based. Executive and the Company agree that this Arbitration and Class Action Waiver Provisionshall be governed by the Federal Arbitration Act. Should any portion of this provision be found unenforceable, it shall be severed andthe remaining provisions shall remain in full force and effect.(e)Entire Agreement. This Agreement, together with the exhibit attached hereto, constitutes theentire agreement between the patties hereto with respect to the subject matter hereof and, upon its effectiveness, shall supersede all prioragreements, understandings and arrangements, both oral and written, between the Executive and the Company (or any of its RelatedEntities) with respect to such subject matter. This Agreement may not be modified in any way unless by a written instrument signed byboth the Company and the Executive.(f)Notices. All notices required or permitted to be given hereunder shall be in writing and shall bepersonally delivered by courier, sent by registered or certified mail, return receipt requested or sent by confirmed facsimile transmissionaddressed as set forth herein. Notices personally delivered, sent by facsimile or sent by overnight courier shall be deemed given on thedate of delivery and notices mailed in accordance with the foregoing shall be deemed given upon receipt by the addressee, asevidenced by the return receipt thereof. Notice shall be sent (i) if to the Company, addressed to the Company’s headquarters, Attention:the Company’s CEO, and (ii) if to the Executive, to his address as reflected on the payroll records of the Company, or to such otheraddress as either party shall request by notice to the other in accordance with this provision.(g)Benefits; Binding Effect. This Agreement shall be for the benefit of and binding upon the partieshereto and their respective heirs, personal representatives, legal representatives, successors and, where permitted and applicable,assigns, including, without limitation, any successor to the Company, whether by merger, consolidation, sale of stock, sale of assets orotherwise.(h)Right to Consult with Counsel. The Executive acknowledges having read and considered all ofthe provisions of this Agreement carefully, and having had the opportunity to consult with counsel of his own choosing, and, giventhis, the Executive agrees that the obligations created hereby are not unreasonable.(i)Severability. The invalidity of any one or more of the words, phrases, sentences, clauses,provisions, sections or articles contained in this Agreement shall not affect the enforceability of the remaining portions of thisAgreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the event that any one or moreof the words, phrases, sentences, clauses, provisions, sections or articles contained in this Agreement shall be declared invalid, thisAgreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, provisionsor provisions, section or sections or article or articles had not been inserted. If such invalidity is caused by length of time or size ofarea, or both, the otherwise invalid provision will be considered to be reduced to a period or area which would cure such invalidity.(j)Waivers. The waiver by either party hereto of a breach or violation of any term or provision ofthis Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation.11  (k)Damages; Attorneys’ Fees. Nothing contained herein shall be construed to prevent the Companyor the Executive from seeking and recovering from the other damages sustained by either or both of them as a result of its or his breachof any term or provision of this Agreement. Each party shall bear its own costs and attorneys’ fees.(l)No Set-off or Mitigation. The Company’s obligation to make the payments provided for in thisAgreement and otherwise to perform its obligations hereunder shall not be affected by any set off, counterclaim, recoupment, defenseor other claim, right or action which the Company may have against the Executive or others. In the event of any termination of theExecutive’s employment under this Agreement, he shall be under no obligation to seek other employment or otherwise in any way tomitigate the amount of any payment provided for hereunder.(m)Section Headings. The article, section and paragraph headings contained in this Agreement arefor reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.(n)No Third Party Beneficiary. The Related Entities are intended third party beneficiaries of thisAgreement. Otherwise, nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give anyperson other than the Company, the parties hereto and their respective heirs, personal representatives, legal representatives, successorsand permitted assigns, any rights or remedies under or by reason of this Agreement.(o)Counterparts. This Agreement may be executed in one or more counterparts, each of which shallbe deemed to be an original but all of which together shall constitute one and the same instrument and agreement.[Signature Page to Amended and Restated Executive Employment Agreement Follows]12  IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date first above written.CompanyKalVista Pharmaceuticals, Inc./s/ T. Andrew CrockettPrint Name: T. Andrew CrockettTitle: Chief Executive OfficerExecutive/s/ Andreas MaetzelAndreas Maetzel [Signature Page to Amended and Restated Executive Employment Agreement] 13  Exhibit BGeneral Release of Claims1.Andreas Maetzel (“Executive”), for himself and his family, heirs, executors, administrators, legal representativesand their respective successors and assigns, in exchange for the consideration received pursuant to Section [4(e)] [4(g)] of the Amendedand Restated Executive Employment Agreement (the “Severance Benefits”) to which this release is attached as Exhibit B (the“Employment Agreement”), does hereby release and forever discharge KalVista Pharmaceuticals, Inc. (the “Company”), itssubsidiaries, affiliated companies, successors and assigns, and its current or former directors, officers, employees, shareholders oragents in such capacities (collectively with the Company, the “Released Parties”) from any and all actions, causes of action, suits,controversies, claims and demands whatsoever, for or by reason of any matter, cause or thing whatsoever, whether known or unknownincluding, but not limited to, all claims under any applicable laws arising under or in connection with Executive’s employment ortermination thereof, whether for tort, breach of express or implied employment contract, wrongful discharge, intentional infliction ofemotional distress, or defamation or injuries incurred on the job or incurred as a result of loss of employment. Without limiting thegenerality of the release provided above, Executive expressly waives any and all claims under Age Discrimination in Employment Act(“ADEA”) that he may have as of the date hereof. Executive further understands that, by signing this General Release of Claims, he isin fact waiving, releasing and forever giving up any claim under the ADEA as well as all other laws within the scope of this paragraph 1that may have existed on or prior to the date hereof. Notwithstanding anything in this paragraph 1 to the contrary, this General Releaseof Claims shall not apply to (i) any rights to receive any payments or benefits to which the Executive is entitled under COBRA, (ii) anyrights or claims that may arise as a result of events occurring after the date this General Release of Claims is executed, (iii) anyindemnification and advancement rights Executive may have as a former employee, officer or director of the Company or itssubsidiaries or affiliated companies (including any rights under Section 7 of the Employment Agreement), (iv) any claims for benefitsunder any directors’ and officers’ liability policy maintained by the Company or its subsidiaries or affiliated companies in accordancewith the terms of such policy, (v) rights to vested benefits under the Company’s 401(k) plan, and (vi) any rights as a holder of equitysecurities of the Company.2.Executive understands that nothing in this Release shall in any way limit or prohibit Executive from engaging in anyProtected Activity. For purposes of this Release, “Protected Activity” shall mean filing a charge, complaint, or report with, or otherwisecommunicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or localgovernment agency or commission, including the Securities and Exchange Commission, the Equal Employment OpportunityCommission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”).Executive understands that in connection with such Protected Activity, Executive is permitted to disclose documents or otherinformation as permitted by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding theforegoing, Executive agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information thatmay constitute Company confidential information to any parties other than the Government Agencies. Executive further understandsthat “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications. In addition,pursuant to the Defend Trade Secrets Act of 2016, Executive is notified that an individual will not be held criminally or civilly liableunder any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state, or localgovernment official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation oflaw, or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made underseal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclosethe trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files anydocument containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. This Releasedoes not limit Executive’s right to receive an award for information provided to any Government Agencies.14  3.Executive represents that he has not filed against the Released Parties any complaints, charges, or lawsuits arisingout of his employment, or any other matter arising on or prior to the date of this General Release of Claims, and covenants and agreesthat he will never individually or with any person file, or commence the filing of any lawsuits, complaints or proceedings with anygovernmental agency, or against the Released Parties with respect to any of the matters released by Executive pursuant to paragraph 1hereof; provided, that nothing herein shall prevent Executive from filing a charge or complaint with the Equal Employment OpportunityCommission (“EEOC”) or similar federal or state agency or the Executive’s ability to participate in any investigation or proceedingconducted by such agency. Nothing in this paragraph shall serve to limit, restrain or impair Executive’s rights under paragraph 2above. 4.Executive acknowledges that, in the absence of his execution of this General Release of Claims, the SeveranceBenefits would not otherwise be due to him.5.Executive acknowledges and agrees that he received adequate consideration in exchange for agreeing to thecovenants contained in Section 5 of the Employment Agreement and the EIAA (as defined therein), that such covenants remainreasonable and necessary to protect the legitimate business interests of the Company and its affiliates and that he will continue tocomply with those covenants.6.Executive hereby acknowledges that the Company has informed him that he has up to 21 days to sign this GeneralRelease of Claims and he may knowingly and voluntarily waive that 21 day period by signing this General Release of Claimsearlier. Executive also understands that he shall have seven days following the date on which he signs this General Release of Claimswithin which to revoke it by providing a written notice of his revocation to the Company.7.Executive acknowledges and agrees that this General Release of Claims will be governed by and construed andenforced in accordance with the internal laws of the State of Massachusetts applicable to contracts made and to be performed entirelywithin such State.8.Executive acknowledges that he has read this General Release of Claims, that he has been advised that he shouldconsult with an attorney before he executes this general release of claims, and that he understands all of its terms and executes itvoluntarily and with full knowledge of its significance and the consequences thereof.9.This General Release of Claims shall become irrevocable on the eighth day following Executive’s execution of thisGeneral Release of Claims, unless previously revoked in accordance with paragraph 6, above.Intending to be legally bound hereby, Executive has executed this General Release of Claims on ___________, 20__. Executive Andreas Maetzel 15 Exhibit 10.21AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENTThis Amended and Restated Executive Employment Agreement (“Agreement”) is made and entered into on this 26th day ofJune, 2019 by and between KalVista Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Edward Feener (hereinafter,the “Executive”).RECITALSWHEREAS, the Executive is currently employed by the Company;WHEREAS, the terms of Executive’s employment with the Company are set forth in an Executive Employment Agreement byand between the Company and the Executive previously entered into on or about the 14th day of March, 2017 (the “First Agreement);WHEREAS, the Company and the Executive now desire to amend and restate the First Agreement;WHEREAS, the Company and Employee intend that this Agreement shall supersede and replace the First Agreement; andWHEREAS, the Company desires to continue to employ the Executive and the Executive desires to continue to be employedby the Company on the terms herein described.NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, and for other good and valuableconsideration, the receipt and sufficiency of which are mutually acknowledged, the Company and the Executive hereby agree asfollows:1.Employment. The Company hereby agrees to employ the Executive and the Executive hereby agrees to serve theCompany during the Term of Employment on the terms and conditions set forth herein. 2.Position and Duties of Executive. During the Term of Employment, the Executive shall be employed and serve asthe Chief Scientific Officer of the Company, and shall have such duties typically associated with such titles, including, withoutlimitation supervising operations and management of the Company and its subsidiaries. The Executive shall faithfully and diligentlyperform all services as may be assigned to him by the CEO, and shall exercise such power and authority as may from time to time bedelegated to him by the CEO. The Executive shall devote his full business time, attention and efforts to the performance of his dutiesunder this Agreement, render such services to the best of his ability, and use his reasonable best efforts to promote the interests of theCompany. The Executive shall not engage in any other business or occupation during the Term of Employment, including, withoutlimitation, any activity that (i) conflicts with the interests of the Company or its subsidiaries, (ii) interferes with the proper and efficientperformance of his duties for the Company, or (iii) interferes with the exercise of his judgment in the Company’s bestinterests. Notwithstanding the foregoing or any other provision of this Agreement, it shall not be a breach or violation of thisAgreement for the Executive to (w) serve on up to two outside corporate or scientific advisory boards with prior notice to the Company,(x) serve on civic or charitable boards or committees, (y) deliver lectures or fulfill speaking engagements, or (z) manage personalinvestments, so long as any such activities do not interfere with or detract from the performance of the Executive’s responsibilities tothe Company in accordance with this Agreement. 3.Compensation and Benefits.(a)Base Salary. The Executive shall receive a Base Salary at the annual rate of $375,000.00,effective as of May 1, 2019, during the Term of Employment, with such Base Salary payable in installments consistent with theCompany’s normal payroll schedule, subject to applicable withholding and other taxes. The Base Salary shall be reviewed, at leastannually, for merit increases and may, by action and in the discretion of  the Board (or its Compensation Committee), be increased at any time or from time to time, but may not be decreased from the thencurrent Base Salary.(b)Bonuses. During the Term of Employment, the Executive shall participate in the Company’sannual incentive compensation plan, program and/or arrangements applicable to senior-level executives, as established and modifiedfrom time to time by the Compensation Committee of the Board in its sole discretion. During the Term of Employment, the Executiveshall have a target bonus opportunity under such plan or program equal to 40% of his current Base Salary (the “Target Bonus”), basedon satisfaction of performance criteria to be established by the Compensation Committee of the Board within the first three months ofeach fiscal year that begins during the Term of Employment. Payment of annual incentive compensation awards shall be made in thesame manner and at the same time that other senior-level executives receive their annual incentive compensation awards, but in noevent later than 2 ½ months following the last day of the applicable Company fiscal year, and, except as otherwise provided herein, willbe subject to the Executive’s continued employment through the last day of the applicable Company fiscal year. (c)Compensation/Benefit Programs. During the Term of Employment, the Executive shall beentitled to participate in all medical, dental, hospitalization, accidental death and dismemberment, disability, travel and life insuranceplans, and any and all other plans as are presently and hereinafter offered by the Company to its executive personnel, includingsavings, pension, profit-sharing and deferred compensation plans, subject to the general eligibility and participation provisions set forthin such plans.(d)Equity Awards. During the Term of Employment, the Executive shall be eligible to be grantedEquity Awards. The number and type of such Equity Awards, and the terms and conditions thereof, shall be determined by the Boardor the Compensation Committee of the Board, in its discretion(e)Vacation. The Executive shall be entitled to 25 days of paid vacation each calendar year duringthe Term of Employment, subject to the terms of the Company’s then effective vacation or paid time off policy.(f)Reimbursement of Reasonable Business Expenses. Subject to submission of propersubstantiation by the Executive, and subject to such rules and guidelines as the Company may from time to time adopt with respect tothe reimbursement of reasonable business expenses of executive personnel, the Company shall reimburse the Executive for allreasonable expenses actually paid or incurred by the Executive during the Term of Employment in the course of and pursuant to thebusiness of the Company. The Executive shall account to the Company in writing for all expenses for which reimbursement is soughtand shall supply to the Company copies of all relevant invoices, receipts or other evidence reasonably requested by the Company.4.Termination.(a)General. The Term of Employment shall terminate upon the earliest to occur of (i) the Executive’sdeath, (ii) a termination by the Company by reason of the Executive’s Disability, (iii) a termination by the Company with or withoutCause, or (iv) a termination by Executive with or without Good Reason. Upon any termination of Executive’s employment for anyreason, except as may otherwise be requested by the Company in writing and agreed upon in writing by Executive, the Executive shallresign from any and all directorships, committee memberships or any other positions Executive holds with the Company or any of itsRelated Entities.(b)Termination by the Company for Cause. The Company shall at all times have the right, uponwritten notice to the Executive, to terminate the Term of Employment for Cause. In no event shall a termination of the Executive’semployment for Cause occur unless the Company gives written notice to the Executive in accordance with this Agreement stating withreasonable specificity the events or actions that constitute Cause. In the event that the Term of Employment is terminated by theCompany for Cause, Executive shall be entitled only to the Accrued Obligations.2  (c)Disability. The Company shall have the option, in accordance with applicable law, to terminatethe Term of Employment upon written notice to the Executive at any time during which the Executive is suffering from a Disability. Inthe event that the Term of Employment is terminated due to the Executive’s Disability, the Executive shall be entitled to (i) the AccruedObligations and (ii) any insurance benefits to which he and his beneficiaries are entitled as a result of his Disability.(d)Death. In the event that the Term of Employment is terminated due to the Executive’s death, theExecutive’s estate shall be entitled to (i) the Accrued Obligations and (ii) any insurance benefits to which he and his beneficiaries areentitled as a result of his death.(e)Termination Without Cause outside of a Change in Control of the Company or Resignation WithGood Reason outside of a Change in Control of the Company. The Company may terminate the Term of Employment without Cause,and the Executive may terminate the Term of Employment for Good Reason, at any time upon written notice. If the Term ofEmployment is terminated by the Company without Cause (other than due to the Executive’s death or Disability) or by the Executivefor Good Reason, in either case prior to the date of a Change in Control or more than two years after a Change in Control, the Executiveshall be entitled to the following: (i)The Accrued Obligations;(ii)A lump sum payment equal to 12 months of Executive’s then-current BaseSalary;(iii)Provided that the Executive timely elects continued coverage under COBRA,the Company will reimburse the Executive for the monthly COBRA cost of continued health and dental coverage of the Executive andhis qualified beneficiaries paid by the Executive under the health and dental plans of the Company, less the amount that the Executivewould be required to contribute for health and dental coverage if the Executive were an active employee of the Company, for 12months (or, if less, for the duration that such COBRA coverage is available to Executive). Notwithstanding the above, if the Companydetermines in its sole discretion that it cannot provide the COBRA benefits described herein without violating applicable law (including,without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide Executive with a taxablelump sum payment in an amount equal to the then-unreimbursed monthly COBRA premiums.(f)Termination by Executive Without Good Reason. The Executive may terminate his employmentwithout Good Reason by providing the Company 30 days’ written notice of such termination. In the event of a termination ofemployment by the Executive under this Section 4(f), the Executive shall be entitled only to the Accrued Obligations. In the event oftermination of the Executive’s employment under this Section 4(f), the Company may, in its sole and absolute discretion, by writtennotice, accelerate such date of termination and still have it treated as a termination without Good Reason.(g)Termination Without Cause in connection with a Change in Control of the Company orResignation With Good Reason in connection with a Change in Control of the Company. If the Executive’s employment is terminatedby the Company (or any entity to which the obligations and benefits under this Agreement have been assigned pursuant to Section 9(b))without Cause or by the Executive for Good Reason, in either case during the two year period immediately following a Change inControl, then the Executive shall be entitled to the following:(i)The Accrued Obligations;(ii)A lump sum payment equal to 15 months of Executive’s then-current BaseSalary; 3  (iii)A lump sum payment equal to the Executive’s full Target Bonus for the fiscalyear in which the Termination Date occurs; (iv)Provided that the Executive timely elects continued coverage under COBRA,the Company will reimburse the Executive for the monthly COBRA cost of continued health and dental coverage of the Executive andhis qualified beneficiaries paid by the Executive under the health and dental plans of the Company, less the amount that the Executivewould be required to contribute for health and dental coverage if the Executive were an active employee of the Company, for 15months (or, if less, for the duration that such COBRA coverage is available to Executive). Notwithstanding the above, if the Companydetermines in its sole discretion that it cannot provide the COBRA benefits described herein without violating applicable law (including,without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide Executive with a taxablelump sum payment in an amount equal to the then-unreimbursed monthly COBRA premiums. (v)All then-unvested Equity Awards will vest in full.(h)Release. All rights, payments and benefits due to the Executive under this Section 4 (other thanthe Accrued Obligations) shall be conditioned on the Executive’s execution of a general release of claims against the Company and itsaffiliates substantially in the form attached hereto as Exhibit B (the “Release”) and on that Release becoming irrevocable within 60 daysfollowing the Termination Date. The severance described in this Section 4 (other than Accrued Obligations) shall be paid no later thanthe first business day following the sixtieth (60th) day following the termination of employment of Executive and in compliance with thetimeframe required under Section 409A as set forth herein, and the first payment will include the payments due and owing prior to thatpayment date but for the application of this sentence. If the Straddle Period (as defined below) spans two (2) calendar years, then thecash payments under this Section 4 (other than Accrued Obligations) shall first be made on the first business day in the second calendaryear that occurs after the expiration of the sixty (60)-day period in which the Release must be delivered and effective, as described inthis Section 4. The “Straddle Period” shall mean the sixty (60)-day period following a termination of employment in which theRelease is to be executed and become irrevocable pursuant to this Section 4.(i)Section 280G Certain Reductions of Payments by the Company.(1)Anything in this Agreement to the contrary notwithstanding, in the eventit shall be determined that any payment or distribution by the Company to or for the benefit of the Executive, whether paid or payableor distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would be nondeductible by theCompany for Federal income tax purposes because of Section 280G of the Code, then the aggregate present value of amounts payableor distributable to or for the benefit of the Executive pursuant to this Agreement (such payments or distributions pursuant to thisAgreement are hereinafter referred to as “Agreement Payments”) shall be reduced to the Reduced Amount. The “Reduced Amount”shall be an amount expressed in present value that avoids any Payment being nondeductible by the Company because of Section 280Gof the Code. To the extent necessary to avoid imposition of the Excise Tax, the amounts payable or benefits to be provided to theExecutive shall be reduced such that the reduction of compensation to be provided to the Executive is minimized. In applying thisprinciple, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where twoeconomically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro ratabasis (but not below zero). Anything to the contrary notwithstanding, if the Reduced Amount is zero and it is determined further thatany Payment which is not an Agreement Payment would nevertheless be nondeductible by the Company for Federal income taxpurposes because of Section 280G of the Code, then the aggregate present value of Payments which are not Agreement Payments shallalso be reduced (but not below zero) to an amount expressed in present value which maximizes the aggregate present value ofPayments without causing any Payment to be nondeductible by the Company because of Section 280G of the Code. If a reduction ofany Payment is required pursuant to this Section 4(i), such reduction shall occur to the amounts in the order that results in the greatesteconomic present value of all payments and benefits actually made or provided to the Executive. For purposes of this Section 4(i),present value shall be determined in accordance with Section 280G(d)(4) of the Code.4  (2)All determinations required to be made under this Section 4(i) shall bemade by a tax or compensation consulting firm of national reputation selected by the Company (the “Consulting Firm”), which shallprovide detailed supporting calculations both to the Company and the Executive within 20 business days of the date of termination orsuch earlier time as is requested by the Company and an opinion to the Executive that he has substantial authority not to report anyexcise tax on his Federal income tax return with respect to any Payments. Any such determination by the Consulting Firm shall bebinding upon the Company and the Executive. Within five business days thereafter, the Company shall pay to or distribute to or for thebenefit of the Executive such amounts as are then due to the Executive under this Agreement. All fees and expenses of the ConsultingFirm incurred in connection with the determinations contemplated by this Section 4(i) shall be borne by the Company.(3)As a result of the uncertainty in the application of Section 280G of theCode at the time of the initial determination by the Consulting Firm hereunder, it is possible that Payments will have been made by theCompany which should not have been made (“Overpayment”) or that additional Payments which will not have been made by theCompany could have been made (“Underpayment”), in each case, consistent with the calculations required to be made hereunder. Inthe event that the Consulting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against the Executivewhich the Consulting Firm believes has a high probability of success, determines that an Overpayment has been made, any suchOverpayment paid or distributed by the Company to or for the benefit of the Executive shall be promptly repaid to the Company by theExecutive. In the event that the Consulting Firm, based upon controlling precedent or other substantial authority, determines that anUnderpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executivetogether with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.(j)Cooperation. Following the Term of Employment, the Executive shall give his assistance andcooperation willingly, upon reasonable advance notice with due consideration for his other business or personal commitments, in anymatter relating to his position with the Company, or his expertise or experience as the Company may reasonably request, including hisattendance and truthful testimony where deemed appropriate by the Company, with respect to any investigation or the Company’sdefense or prosecution of any existing or future claims or litigations or other proceedings relating to matters in which he was involvedor potentially had knowledge by virtue of his employment with the Company. In no event shall his cooperation materially interfere withhis services for a subsequent employer or other similar service recipient. To the extent permitted by law, the Company agrees that (i) itshall promptly reimburse the Executive for his reasonable and documented expenses in connection with his rendering assistance and/orcooperation under this Section 4(j) upon his presentation of documentation for such expenses and (ii) the Executive shall be reasonablycompensated for any continued material services as required under this Section 4(j).(k)Return of Company Property. Following the Termination Date, the Executive or his personalrepresentative shall return all Company property in his possession, including but not limited to all computer equipment (hardware andsoftware), telephones, facsimile machines, cell phones and other communication devices, credit cards, office keys, security accesscards, badges, identification cards and all copies (including drafts) of any documentation or information (however stored) relating to thebusiness of the Company, its customers and clients or its prospective customers and clients.(l)Compliance with Section 409A.(i)General. It is the intention of both the Company and the Executive that thebenefits and rights to which the Executive could be entitled pursuant to this Agreement comply with Section 409A of the Code and theTreasury Regulations and other guidance promulgated or issued thereunder (“Section 409A”), to the extent that the requirements ofSection 409A are applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention.5  (ii)Distributions on Account of Separation from Service. If and to the extentrequired to comply with Section 409A, no payment or benefit required to be paid under this Agreement on account of termination ofthe Executive’s employment shall be made unless and until the Executive incurs a “separation from service” within the meaning ofSection 409A.(iii)Six Month Delay for Specified Employees. If the Executive is a “specifiedemployee” (within the meaning of Section 409A(a)(2)(B)(i) of the Code), then no payment or benefit that is payable on account of theExecutive’s “separation from service”, as that term is defined for purposes of Section 409A, shall be made before the date that is sixmonths after the Executive’s “separation from service” (or, if earlier, the date of the Executive’s death) if and to the extent that suchpayment or benefit constitutes deferred compensation (or may be nonqualified deferred compensation) under Section 409A and suchdeferral is required to comply with the requirements of Section 409A. Any payment or benefit delayed by reason of the prior sentenceshall be paid out or provided in a single lump sum at the end of such required delay period in order to catch up to the original paymentschedule.(iv)Treatment of Each Installment as a Separate Payment. For purposes ofapplying the provisions of Section 409A to this Agreement, each separately identified amount to which the Executive is entitled underthis Agreement shall be treated as a separate payment. In addition, any series of installment payments under this Agreement shall betreated as a right to a series of separate payments.(v)Taxable Reimbursements and In-Kind Benefits.(A)Any reimbursements by the Company to the Executiveof any eligible expenses under this Agreement that are not excludable from the Executive’s income for Federal income tax purposes(the “Taxable Reimbursements”) shall be made by no later than the last day of the taxable year of the Executive following the year inwhich the expense was incurred.(B)The amount of any Taxable Reimbursements, and thevalue of any in-kind benefits to be provided to the Executive, during any taxable year of the Executive shall not affect the expenseseligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of the Executive.(C)The right to Taxable Reimbursement, or in-kindbenefits, shall not be subject to liquidation or exchange for another benefit.(vi)Section 409A Compliance. Notwithstanding the foregoing, the Company doesnot make any representation to the Executive that the payments or benefits provided under this Agreement are exempt from, or satisfy,the requirements of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless theExecutive or any beneficiary of the Executive for any tax, additional tax, interest or penalties that the Executive or any beneficiary ofthe Executive may incur in the event that any provision of this Agreement, or any amendment or modification thereof, or any otheraction taken with respect thereto, is deemed to violate any of the requirements of Section 409A.5.Restrictive Covenants.(a)Confidential Information. The Executive shall execute and agree to be bound by the terms of theCompany’s Employee Invention Assignment, Confidentiality and Non-Competition Agreement (the “EIIA”) as provided therein. (b)Insider Trading Policies. Executive agrees that he shall comply with and be bound by theCompany’s insider trading policies with respect to the securities of the Company as now in effect or hereafter adopted or amended.6  (c)Clawback Provisions. All incentive and equity awards and payments shall be subject to theclawback policy of the Company, as now in effect or hereafter adopted or amended, and all applicable laws and rules and regulations ofthe stock exchanges and public market on which the securities of the Company are traded. (d)Injunction. It is recognized and hereby acknowledged by the parties hereto that a breach by theExecutive of any of the covenants contained in this Section 5 or the EIIA may cause irreparable harm and damage to the Company, andits Related Entities, the monetary amount of which may be virtually impossible to ascertain. As a result, the Executive recognizes andhereby acknowledges that the Company and its Related Entities shall be entitled to seek an injunction from any court of competentjurisdiction enjoining and restraining any violation of any or all of the covenants contained in this Section 5 or the EIIA by theExecutive or any of his affiliates, associates, partners or agents, either directly or indirectly, and that such right to injunction shall becumulative and in addition to whatever other remedies the Company may possess.6.Representations and Warranties of Executive. The Executive represents and warrants to the Company that:(a)The Executive’s employment will not conflict with or result in his breach of any agreement towhich he is a party or otherwise may be bound;(b)The Executive has not violated, and in connection with his employment with the Company willnot violate, any non-solicitation, non-competition or other similar covenant or agreement of a prior employer by which he is or may bebound; and(c)In connection with Executive’s employment with the Company, he will not use any confidentialor proprietary information that he may have obtained in connection with employment with any prior employer; and7.Indemnification. Subject to limitations imposed by law, the Company shall indemnify and hold harmless theExecutive to the fullest extent permitted by law from and against any and all claims, damages, expenses (including attorneys’ fees),judgments, penalties, fines, settlements, and all other liabilities incurred or paid by him in connection with the investigation, defense,prosecution, settlement or appeal of any threatened, pending or completed action, suit or proceeding, whether civil, criminal,administrative or investigative and to which the Executive was or is a party or is threatened to be made a party by reason of the fact thatthe Executive is or was an officer, employee or agent of the Company, or by reason of anything done or not done by the Executive inany such capacity or capacities, provided that the Executive acted in good faith, in a manner that was not grossly negligent orconstituted willful misconduct and in a manner he reasonably believed to be in or not opposed to the best interests of the Company,and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. 8.Definitions. When used in this Agreement, the following terms shall have the following meanings:(a)Accrued Obligations” means:(i)all accrued but unpaid Base Salary through the end of the Term of Employment;(ii)any unpaid or unreimbursed expenses incurred in accordance with Companypolicy to the extent incurred during the Term of Employment;(iii)any accrued but unpaid benefits provided under the Company’s employeebenefit plans, subject to and in accordance with the terms of those plans;7  (iv)any unpaid Bonus with respect to any completed fiscal year that has ended onor prior to the end of the Term of Employment; and(v)any accrued but unused vacation pay.(b)“Base Salary” means the salary provided for in Section 3(a) hereof or any increased salarygranted to Executive pursuant to Section 3(a) hereof.(c)“Beneficial Owner” and “Beneficial Ownership” shall have the meaning ascribed to such terms inRule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended.(d)“Board” means the Board of Directors of the Company.(e)“Bonus” means any bonus payable to the Executive pursuant to Section 3(b) hereof.(f)“Cause” means any of the following: (i)Executive’s conviction of or plea of nolo contendere to a felony or to any crimeinvolving moral turpitude;(ii)willful misconduct or gross negligence by the Executive resulting, in either case,in material economic or reputational harm to the Company or any of Related Entities;(iii)a willful failure by the Executive to carry out the reasonable and lawfuldirections of the CEO and failure by the Executive to remedy the failure within thirty (30) days after receipt of written notice of same,by the CEO;(iv)fraud, embezzlement, theft or dishonesty of a material nature by the Executiveagainst the Company or any Related Entity, or a willful material violation by the Executive of a policy or procedure of the Company orany Related Entity, resulting, in any case, in material, reputational or economic harm to the Company or any Related Entity; or(v) a willful material breach by the Executive of this Agreement andfailure by the Executive to remedy the material breach within 30 days after receipt of written notice of same, by the CEO.(g)“CEO” means the Chief Executive Officer of the Company.(h)“Change in Control” means the occurrence of any of the following events: (i) any Personbecomes the Beneficial Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of thetotal voting power represented by the Company’s then-outstanding voting securities; provided, however, that for purposes of thissubclause (i) the acquisition of additional securities by any one Person who is considered to own more than fifty percent (50%) of thetotal voting power of the securities of the Company will not be considered a Change in Control; (ii) the consummation of the sale ordisposition by the Company of all or substantially all of the Company’s assets; (iii) the consummation of a merger or consolidation ofthe Company with any other corporation, other than a merger or consolidation which would result in the voting securities of theCompany outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted intovoting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the votingsecurities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or (iv) achange in the effective control of the Company that occurs on the date that a majority of members of the Board is replaced during anytwelve (12) month period by members of the Board whose appointment or election is not endorsed by a majority of the members of theBoard prior to the date of the appointment or election. For purpose of this subclause (iv), if any Person is considered to be in effectivecontrol of the Company, the acquisition of additional control of the8  Company by the same Person will not be considered a Change in Control. For purposes of this definition, Persons will be considered tobe acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, orsimilar business transaction with the Company. (i)“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended fromtime to time.(j)“Code” means the Internal Revenue Code of 1986, as amended.(k)“Commencement Date” means the date of this Agreement. (l)“Disability” means the Executive’s inability, or failure, to perform the essential functions of hisposition, with or without reasonable accommodation, for any period of six months or more in any 12 month period, by reason of anymedically determinable physical or mental impairment.(m)“Equity Awards” means any stock options, restricted stock, restricted stock units, stockappreciation rights, phantom stock or other equity based awards granted by the Company to the Executive.(n)“Excise Tax” means any excise tax imposed by Section 4999 of the Code, together with anyinterest and penalties imposed with respect thereto, or any interest or penalties are incurred by the Executive with respect to any suchexcise tax.(o)“Good Reason” means the occurrence of any of the following events or conditions, without theExecutive’s express written consent:(i)a material diminution in the Executive’s authority, duties, or responsibilities,provided, however, that the mere acquisition or merger of the Company by itself shall not constitute a material diminution in theExecutive’s authority, duties, or responsibilities;(ii)a material reduction by the Company in the Executive’s annual Base Salary(which for purposes hereof is deemed to constitute a reduction of greater than 10%, unless such reduction applies as part of a salaryreduction program and such program includes similar reductions to all of the Executive’s direct reports); or(iii)the relocation of the Executive’s principal place of employment to a locationmore than 50 miles from the Executive’s principal place of employment immediately prior to the Executive’s termination.With respect to each of subsection (i), (ii) and (iii) above, the Executive must provide notice to the Company of the condition givingrise to “Good Reason” within 30 days of the initial existence of such condition, and the Company will have 30 days following suchnotice to remedy such condition. The Executive must resign the Executive’s employment no later than 30 days following theCompany’s failure to cure the Good Reason or written notice to the Executive that it will decline to do so.(p)“Group” shall have the meaning ascribed to such term in Section 13(d) of the SecuritiesExchange Act of 1934.(q)“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the SecuritiesExchange Act of 1934 and used in Sections 13(d) and 14(d) thereof.(r)“Related Entity” means any Person controlling, controlled by or under common control with theCompany or any of its subsidiaries. For this purpose, the terms “controlling,” “controlled by” and “under common control with” meanthe possession, directly or indirectly, of the power to direct or cause the direction of9  the management and policies of a Person, whether through the ownership of voting securities, as trustee or executor, by contract orotherwise, including (without limitation) the ownership, directly or indirectly, of securities having the power to elect a majority of theboard of directors or similar body governing the affairs of such Person.(s)“Target Bonus” has the meaning described in Section 3(b).(t)“Term of Employment” means the period during which the Executive shall be employed by theCompany pursuant to the terms of this Agreement, which period shall begin on the Commencement Date and continue until terminatedin accordance with Section 4 hereof.(u)“Termination Date” means the date on which the Term of Employment ends.9.Miscellaneous Provisions.(a)Taxes. All payments or transfers of property made by the Company to the Executive or his estateor beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine itshould withhold pursuant to any applicable law or regulation.(b)Assignment. The Company shall have the right to assign this Agreement and its rights andobligations hereunder in whole, but not in part, to any corporation or other entity with or into which the Company may hereafter mergeor consolidate or to which the Company may transfer all or substantially all of its assets, if in any such case said corporation or otherentity shall by operation of law or expressly in writing assume all obligations of the Company hereunder as fully as if it had beenoriginally made a party hereto, but may not otherwise assign this Agreement or its rights and obligations hereunder. The Executivemay not assign or transfer this Agreement or any rights or obligations hereunder.(c)Governing Law. Except as expressly set forth herein, this letter agreement and the rights andobligations of the parties hereto shall be construed in accordance with the laws of the Commonwealth of Massachusetts, without givingeffect to the principles of conflict of laws.(d)Arbitration and Class Action Waiver. Executive and the Company agree to submit to mandatorybinding arbitration any and all claims arising out of or related to Executive’s employment with the Company and the terminationthereof, including, but not limited to, claims for unpaid wages, wrongful termination, torts, stock or stock options or other ownershipinterest in the Company, and/or discrimination (including harassment), except as set forth below, based upon any federal, state or localordinance, statute, regulation or constitutional provision except that each party may, at its, his or her option, seek injunctive relief incourt related to the improper use, disclosure or misappropriation of a party’s private, proprietary, confidential or trade secretinformation (collectively, “Arbitrable Claims”). Further, to the fullest extent permitted by law, Executive and the Company agree thatno class or collective actions can be asserted in arbitration or otherwise. All claims, whether in arbitration or otherwise, must bebrought solely in Executive’s or the Company’s individual capacity, and not as a plaintiff or class member in any purported class orcollective proceeding. THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO ARBITRABLECLAIMS. THE PARTIES FURTHER WAIVE ANY RIGHTS THEY MAY HAVE TO PURSUE OR PARTICIPATE IN A CLASS ORCOLLECTIVE ACTION PERTAINING TO ANY ARBITRABLE CLAIMS BETWEEN YOU AND THE COMPANY.Notwithstanding anything to the contrary herein, nothing in this Arbitration and Class Action Waiver section restrictsExecutive’s right to pursue claims in court (a) on a representative action basis under applicable law or (b) for any alleged sexualharassment or any alleged unlawful discriminatory practices related to sexual harassment.10  This Agreement does not restrict Executive’s right to file administrative claims Executive may bring before any governmentagency where, as a matter of law, the parties may not restrict the employee’s ability to file such claims (including, but not limited to, theNational Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor). However, the partiesagree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrativeclaims. The arbitration shall be conducted in Boston, Massachusetts through JAMS before a single neutral arbitrator, in accordancewith the JAMS employment arbitration rules then in effect. The JAMS rules may be found and reviewed athttp://www.jamsadr.com/rules-employment-arbitration. If Executive is unable to access these rules, please let the Company know andExecutive will be provided with a hardcopy. The arbitrator shall issue a written decision that contains the essential findings andconclusions on which the decision is based. Executive and the Company agree that this Arbitration and Class Action Waiver Provisionshall be governed by the Federal Arbitration Act. Should any portion of this provision be found unenforceable, it shall be severed andthe remaining provisions shall remain in full force and effect.(e)Entire Agreement. This Agreement, together with the exhibit attached hereto, constitutes theentire agreement between the patties hereto with respect to the subject matter hereof and, upon its effectiveness, shall supersede all prioragreements, understandings and arrangements, both oral and written, between the Executive and the Company (or any of its RelatedEntities) with respect to such subject matter. This Agreement may not be modified in any way unless by a written instrument signed byboth the Company and the Executive.(f)Notices. All notices required or permitted to be given hereunder shall be in writing and shall bepersonally delivered by courier, sent by registered or certified mail, return receipt requested or sent by confirmed facsimile transmissionaddressed as set forth herein. Notices personally delivered, sent by facsimile or sent by overnight courier shall be deemed given on thedate of delivery and notices mailed in accordance with the foregoing shall be deemed given upon receipt by the addressee, asevidenced by the return receipt thereof. Notice shall be sent (i) if to the Company, addressed to the Company’s headquarters, Attention:the Company’s CEO, and (ii) if to the Executive, to his address as reflected on the payroll records of the Company, or to such otheraddress as either party shall request by notice to the other in accordance with this provision.(g)Benefits; Binding Effect. This Agreement shall be for the benefit of and binding upon the partieshereto and their respective heirs, personal representatives, legal representatives, successors and, where permitted and applicable,assigns, including, without limitation, any successor to the Company, whether by merger, consolidation, sale of stock, sale of assets orotherwise.(h)Right to Consult with Counsel. The Executive acknowledges having read and considered all ofthe provisions of this Agreement carefully, and having had the opportunity to consult with counsel of his own choosing, and, giventhis, the Executive agrees that the obligations created hereby are not unreasonable.(i)Severability. The invalidity of any one or more of the words, phrases, sentences, clauses,provisions, sections or articles contained in this Agreement shall not affect the enforceability of the remaining portions of thisAgreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the event that any one or moreof the words, phrases, sentences, clauses, provisions, sections or articles contained in this Agreement shall be declared invalid, thisAgreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, provisionsor provisions, section or sections or article or articles had not been inserted. If such invalidity is caused by length of time or size ofarea, or both, the otherwise invalid provision will be considered to be reduced to a period or area which would cure such invalidity.(j)Waivers. The waiver by either party hereto of a breach or violation of any term or provision ofthis Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation.11  (k)Damages; Attorneys’ Fees. Nothing contained herein shall be construed to prevent the Companyor the Executive from seeking and recovering from the other damages sustained by either or both of them as a result of its or his breachof any term or provision of this Agreement. Each party shall bear its own costs and attorneys’ fees.(l)No Set-off or Mitigation. The Company’s obligation to make the payments provided for in thisAgreement and otherwise to perform its obligations hereunder shall not be affected by any set off, counterclaim, recoupment, defenseor other claim, right or action which the Company may have against the Executive or others. In the event of any termination of theExecutive’s employment under this Agreement, he shall be under no obligation to seek other employment or otherwise in any way tomitigate the amount of any payment provided for hereunder.(m)Section Headings. The article, section and paragraph headings contained in this Agreement arefor reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.(n)No Third Party Beneficiary. The Related Entities are intended third party beneficiaries of thisAgreement. Otherwise, nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give anyperson other than the Company, the parties hereto and their respective heirs, personal representatives, legal representatives, successorsand permitted assigns, any rights or remedies under or by reason of this Agreement.(o)Counterparts. This Agreement may be executed in one or more counterparts, each of which shallbe deemed to be an original but all of which together shall constitute one and the same instrument and agreement.[Signature Page to Amended and Restated Executive Employment Agreement Follows]12  IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date first above written.CompanyKalVista Pharmaceuticals, Inc./s/ T. Andrew CrockettPrint Name: T. Andrew CrockettTitle: Chief Executive OfficerExecutive/s/ Edward FeenerEdward Feener [Signature Page to Amended and Restated Executive Employment Agreement] 13  Exhibit BGeneral Release of Claims1.Edward Feener (“Executive”), for himself and his family, heirs, executors, administrators, legal representatives andtheir respective successors and assigns, in exchange for the consideration received pursuant to Section [4(e)] [4(g)] of the Amended andRestated Executive Employment Agreement (the “Severance Benefits”) to which this release is attached as Exhibit B (the“Employment Agreement”), does hereby release and forever discharge KalVista Pharmaceuticals, Inc. (the “Company”), itssubsidiaries, affiliated companies, successors and assigns, and its current or former directors, officers, employees, shareholders oragents in such capacities (collectively with the Company, the “Released Parties”) from any and all actions, causes of action, suits,controversies, claims and demands whatsoever, for or by reason of any matter, cause or thing whatsoever, whether known or unknownincluding, but not limited to, all claims under any applicable laws arising under or in connection with Executive’s employment ortermination thereof, whether for tort, breach of express or implied employment contract, wrongful discharge, intentional infliction ofemotional distress, or defamation or injuries incurred on the job or incurred as a result of loss of employment. Without limiting thegenerality of the release provided above, Executive expressly waives any and all claims under Age Discrimination in Employment Act(“ADEA”) that he may have as of the date hereof. Executive further understands that, by signing this General Release of Claims, he isin fact waiving, releasing and forever giving up any claim under the ADEA as well as all other laws within the scope of this paragraph 1that may have existed on or prior to the date hereof. Notwithstanding anything in this paragraph 1 to the contrary, this General Releaseof Claims shall not apply to (i) any rights to receive any payments or benefits to which the Executive is entitled under COBRA, (ii) anyrights or claims that may arise as a result of events occurring after the date this General Release of Claims is executed, (iii) anyindemnification and advancement rights Executive may have as a former employee, officer or director of the Company or itssubsidiaries or affiliated companies (including any rights under Section 7 of the Employment Agreement), (iv) any claims for benefitsunder any directors’ and officers’ liability policy maintained by the Company or its subsidiaries or affiliated companies in accordancewith the terms of such policy, (v) rights to vested benefits under the Company’s 401(k) plan, and (vi) any rights as a holder of equitysecurities of the Company.2.Executive understands that nothing in this Release shall in any way limit or prohibit Executive from engaging in anyProtected Activity. For purposes of this Release, “Protected Activity” shall mean filing a charge, complaint, or report with, or otherwisecommunicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or localgovernment agency or commission, including the Securities and Exchange Commission, the Equal Employment OpportunityCommission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”).Executive understands that in connection with such Protected Activity, Executive is permitted to disclose documents or otherinformation as permitted by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding theforegoing, Executive agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information thatmay constitute Company confidential information to any parties other than the Government Agencies. Executive further understandsthat “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications. In addition,pursuant to the Defend Trade Secrets Act of 2016, Executive is notified that an individual will not be held criminally or civilly liableunder any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state, or localgovernment official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation oflaw, or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made underseal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclosethe trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files anydocument containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. This Releasedoes not limit Executive’s right to receive an award for information provided to any Government Agencies.14  3.Executive represents that he has not filed against the Released Parties any complaints, charges, or lawsuits arisingout of his employment, or any other matter arising on or prior to the date of this General Release of Claims, and covenants and agreesthat he will never individually or with any person file, or commence the filing of any lawsuits, complaints or proceedings with anygovernmental agency, or against the Released Parties with respect to any of the matters released by Executive pursuant to paragraph 1hereof; provided, that nothing herein shall prevent Executive from filing a charge or complaint with the Equal Employment OpportunityCommission (“EEOC”) or similar federal or state agency or the Executive’s ability to participate in any investigation or proceedingconducted by such agency. Nothing in this paragraph shall serve to limit, restrain or impair Executive’s rights under paragraph 2above. 4.Executive acknowledges that, in the absence of his execution of this General Release of Claims, the SeveranceBenefits would not otherwise be due to him.5.Executive acknowledges and agrees that he received adequate consideration in exchange for agreeing to thecovenants contained in Section 5 of the Employment Agreement and the EIAA (as defined therein), that such covenants remainreasonable and necessary to protect the legitimate business interests of the Company and its affiliates and that he will continue tocomply with those covenants.6.Executive hereby acknowledges that the Company has informed him that he has up to 21 days to sign this GeneralRelease of Claims and he may knowingly and voluntarily waive that 21 day period by signing this General Release of Claimsearlier. Executive also understands that he shall have seven days following the date on which he signs this General Release of Claimswithin which to revoke it by providing a written notice of his revocation to the Company.7.Executive acknowledges and agrees that this General Release of Claims will be governed by and construed andenforced in accordance with the internal laws of the State of Massachusetts applicable to contracts made and to be performed entirelywithin such State.8.Executive acknowledges that he has read this General Release of Claims, that he has been advised that he shouldconsult with an attorney before he executes this general release of claims, and that he understands all of its terms and executes itvoluntarily and with full knowledge of its significance and the consequences thereof.9.This General Release of Claims shall become irrevocable on the eighth day following Executive’s execution of thisGeneral Release of Claims, unless previously revoked in accordance with paragraph 6, above.Intending to be legally bound hereby, Executive has executed this General Release of Claims on ___________, 20__. Executive Edward Feener 15 Exhibit 10.22EXECUTIVE EMPLOYMENT AGREEMENTThis Executive Employment Agreement (“Agreement”) is made and entered into on this 26th day of June, 2019 by andbetween KalVista Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Michael Smith (hereinafter, the “Executive”).RECITALSWHEREAS, the Executive is currently employed by the Company;WHEREAS, the terms of Executive’s employment with the Company are set forth in an offer letter by and between theCompany and the Executive previously entered into on the 8th day of January, 2016 (the “First Agreement);WHEREAS, the Company and the Executive now desire to supersede and replace the First Agreement;WHEREAS, the Company and Employee intend that this Agreement shall supersede and replace the First Agreement; andWHEREAS, the Company desires to continue to employ the Executive and the Executive desires to continue to be employedby the Company on the terms herein described.NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, and for other good and valuableconsideration, the receipt and sufficiency of which are mutually acknowledged, the Company and the Executive hereby agree asfollows:1.Employment. The Company hereby agrees to employ the Executive and the Executive hereby agrees to serve theCompany during the Term of Employment on the terms and conditions set forth herein. 2.Position and Duties of Executive. During the Term of Employment, the Executive shall be employed and serve asthe SVP Development of the Company, and shall have such duties typically associated with such titles, including, without limitationsupervising operations and management of the Company and its subsidiaries. The Executive shall faithfully and diligently perform allservices as may be assigned to him by the CEO, and shall exercise such power and authority as may from time to time be delegated tohim by the CEO. The Executive shall devote his full business time, attention and efforts to the performance of his duties under thisAgreement, render such services to the best of his ability, and use his reasonable best efforts to promote the interests of theCompany. The Executive shall not engage in any other business or occupation during the Term of Employment, including, withoutlimitation, any activity that (i) conflicts with the interests of the Company or its subsidiaries, (ii) interferes with the proper and efficientperformance of his duties for the Company, or (iii) interferes with the exercise of his judgment in the Company’s bestinterests. Notwithstanding the foregoing or any other provision of this Agreement, it shall not be a breach or violation of thisAgreement for the Executive to (x) serve on civic or charitable boards or committees, (y) deliver lectures or fulfill speakingengagements, or (z) manage personal investments, so long as any such activities do not interfere with or detract from the performanceof the Executive’s responsibilities to the Company in accordance with this Agreement. 3.Compensation and Benefits.(a)Base Salary. The Executive shall receive a Base Salary at the annual rate of $290,000.00,effective as of May 1, 2019, during the Term of Employment, with such Base Salary payable in installments consistent with theCompany’s normal payroll schedule, subject to applicable withholding and other taxes. The Base Salary shall be reviewed, at leastannually.  (b)Bonuses. During the Term of Employment, the Executive shall participate in the Company’sannual incentive compensation plan, program and/or arrangements applicable to senior-level executives, as established and modifiedfrom time to time by the Compensation Committee of the Board in its sole discretion. During the Term of Employment, the Executiveshall have a target bonus opportunity under such plan or program equal to 35% of his current Base Salary (the “Target Bonus”), basedon satisfaction of performance criteria to be established by the Compensation Committee of the Board within the first three months ofeach fiscal year that begins during the Term of Employment. Payment of annual incentive compensation awards shall be made in thesame manner and at the same time that other senior-level executives receive their annual incentive compensation awards, but in noevent later than 2 ½ months following the last day of the applicable Company fiscal year, and, except as otherwise provided herein, willbe subject to the Executive’s continued employment through the last day of the applicable Company fiscal year. (c)Compensation/Benefit Programs. During the Term of Employment, the Executive shall beentitled to participate in all medical, dental, hospitalization, accidental death and dismemberment, disability, travel and life insuranceplans, and any and all other plans as are presently and hereinafter offered by the Company to its executive personnel, includingsavings, pension, profit-sharing and deferred compensation plans, subject to the general eligibility and participation provisions set forthin such plans.(d)Equity Awards. During the Term of Employment, the Executive shall be eligible to be grantedEquity Awards. The number and type of such Equity Awards, and the terms and conditions thereof, shall be determined by the Boardor the Compensation Committee of the Board, in its discretion(e)Vacation. The Executive shall be entitled to paid vacation each calendar year during the Term ofEmployment, in accordance with and subject to the terms of the Company’s then effective vacation or paid time off policy.(f)Reimbursement of Reasonable Business Expenses. Subject to submission of propersubstantiation by the Executive, and subject to such rules and guidelines as the Company may from time to time adopt with respect tothe reimbursement of reasonable business expenses of executive personnel, the Company shall reimburse the Executive for allreasonable expenses actually paid or incurred by the Executive during the Term of Employment in the course of and pursuant to thebusiness of the Company. The Executive shall account to the Company in writing for all expenses for which reimbursement is soughtand shall supply to the Company copies of all relevant invoices, receipts or other evidence reasonably requested by the Company.4.Termination.(a)General. The Term of Employment shall terminate upon the earliest to occur of (i) the Executive’sdeath, (ii) a termination by the Company by reason of the Executive’s Disability, (iii) a termination by the Company with or withoutCause, or (iv) a termination by Executive with or without Good Reason. Upon any termination of Executive’s employment for anyreason, except as may otherwise be requested by the Company in writing and agreed upon in writing by Executive, the Executive shallresign from any and all directorships, committee memberships or any other positions Executive holds with the Company or any of itsRelated Entities.(b)Termination by the Company for Cause. The Company shall at all times have the right, uponwritten notice to the Executive, to terminate the Term of Employment for Cause. In no event shall a termination of the Executive’semployment for Cause occur unless the Company gives written notice to the Executive in accordance with this Agreement stating withreasonable specificity the events or actions that constitute Cause. In the event that the Term of Employment is terminated by theCompany for Cause, Executive shall be entitled only to the Accrued Obligations.(c)Disability. The Company shall have the option, in accordance with applicable law, to terminatethe Term of Employment upon written notice to the Executive at any time during which the Executive2  is suffering from a Disability. In the event that the Term of Employment is terminated due to the Executive’s Disability, the Executiveshall be entitled to (i) the Accrued Obligations and (ii) any insurance benefits to which he and his beneficiaries are entitled as a result ofhis Disability.(d)Death. In the event that the Term of Employment is terminated due to the Executive’s death, theExecutive’s estate shall be entitled to (i) the Accrued Obligations and (ii) any insurance benefits to which he and his beneficiaries areentitled as a result of his death.(e)Termination Without Cause outside of a Change in Control of the Company or Resignation WithGood Reason outside of a Change in Control of the Company. The Company may terminate the Term of Employment without Cause,and the Executive may terminate the Term of Employment for Good Reason, at any time upon written notice. If the Term ofEmployment is terminated by the Company without Cause (other than due to the Executive’s death or Disability) or by the Executivefor Good Reason, in either case prior to the date of a Change in Control or more than two years after a Change in Control, the Executiveshall be entitled to the following: (i)The Accrued Obligations;(ii)A lump sum payment equal to 9 months of Executive’s then-current BaseSalary;(iii)Provided that the Executive timely elects continued coverage under COBRA,the Company will reimburse the Executive for the monthly COBRA cost of continued health and dental coverage of the Executive andhis qualified beneficiaries paid by the Executive under the health and dental plans of the Company, less the amount that the Executivewould be required to contribute for health and dental coverage if the Executive were an active employee of the Company, for 9 months(or, if less, for the duration that such COBRA coverage is available to Executive). Notwithstanding the above, if the Companydetermines in its sole discretion that it cannot provide the COBRA benefits described herein without violating applicable law (including,without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide Executive with a taxablelump sum payment in an amount equal to the then-unreimbursed monthly COBRA premiums.(f)Termination by Executive Without Good Reason. The Executive may terminate his employmentwithout Good Reason by providing the Company 30 days’ written notice of such termination. In the event of a termination ofemployment by the Executive under this Section 4(f), the Executive shall be entitled only to the Accrued Obligations. In the event oftermination of the Executive’s employment under this Section 4(f), the Company may, in its sole and absolute discretion, by writtennotice, accelerate such date of termination and still have it treated as a termination without Good Reason.(g)Termination Without Cause in connection with a Change in Control of the Company orResignation With Good Reason in connection with a Change in Control of the Company. If the Executive’s employment is terminatedby the Company (or any entity to which the obligations and benefits under this Agreement have been assigned pursuant to Section 9(b))without Cause or by the Executive for Good Reason, in either case during the two year period immediately following a Change inControl, then the Executive shall be entitled to the following:(i)The Accrued Obligations;(ii)A lump sum payment equal to 12 months of Executive’s then-current BaseSalary; (iii)A lump sum payment equal to the Executive’s full Target Bonus for the fiscalyear in which the Termination Date occurs; 3  (iv)Provided that the Executive timely elects continued coverage under COBRA,the Company will reimburse the Executive for the monthly COBRA cost of continued health and dental coverage of the Executive andhis qualified beneficiaries paid by the Executive under the health and dental plans of the Company, less the amount that the Executivewould be required to contribute for health and dental coverage if the Executive were an active employee of the Company, for 12months (or, if less, for the duration that such COBRA coverage is available to Executive). Notwithstanding the above, if the Companydetermines in its sole discretion that it cannot provide the COBRA benefits described herein without violating applicable law (including,without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide Executive with a taxablelump sum payment in an amount equal to the then-unreimbursed monthly COBRA premiums. (v)All then-unvested Equity Awards will vest in full.(h)Release. All rights, payments and benefits due to the Executive under this Section 4 (other thanthe Accrued Obligations) shall be conditioned on the Executive’s execution of a general release of claims against the Company and itsaffiliates substantially in the form attached hereto as Exhibit B (the “Release”) and on that Release becoming irrevocable within 60 daysfollowing the Termination Date. The severance described in this Section 4 (other than Accrued Obligations) shall be paid no later thanthe first business day following the sixtieth (60th) day following the termination of employment of Executive and in compliance with thetimeframe required under Section 409A as set forth herein, and the first payment will include the payments due and owing prior to thatpayment date but for the application of this sentence. If the Straddle Period (as defined below) spans two (2) calendar years, then thecash payments under this Section 4 (other than Accrued Obligations) shall first be made on the first business day in the second calendaryear that occurs after the expiration of the sixty (60)-day period in which the Release must be delivered and effective, as described inthis Section 4. The “Straddle Period” shall mean the sixty (60)-day period following a termination of employment in which theRelease is to be executed and become irrevocable pursuant to this Section 4.(i)Section 280G Certain Reductions of Payments by the Company.(1)Anything in this Agreement to the contrary notwithstanding, in the eventit shall be determined that any payment or distribution by the Company to or for the benefit of the Executive, whether paid or payableor distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would be nondeductible by theCompany for Federal income tax purposes because of Section 280G of the Code, then the aggregate present value of amounts payableor distributable to or for the benefit of the Executive pursuant to this Agreement (such payments or distributions pursuant to thisAgreement are hereinafter referred to as “Agreement Payments”) shall be reduced to the Reduced Amount. The “Reduced Amount”shall be an amount expressed in present value that avoids any Payment being nondeductible by the Company because of Section 280Gof the Code. To the extent necessary to avoid imposition of the Excise Tax, the amounts payable or benefits to be provided to theExecutive shall be reduced such that the reduction of compensation to be provided to the Executive is minimized. In applying thisprinciple, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where twoeconomically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro ratabasis (but not below zero). Anything to the contrary notwithstanding, if the Reduced Amount is zero and it is determined further thatany Payment which is not an Agreement Payment would nevertheless be nondeductible by the Company for Federal income taxpurposes because of Section 280G of the Code, then the aggregate present value of Payments which are not Agreement Payments shallalso be reduced (but not below zero) to an amount expressed in present value which maximizes the aggregate present value ofPayments without causing any Payment to be nondeductible by the Company because of Section 280G of the Code. If a reduction ofany Payment is required pursuant to this Section 4(i), such reduction shall occur to the amounts in the order that results in the greatesteconomic present value of all payments and benefits actually made or provided to the Executive. For purposes of this Section 4(i),present value shall be determined in accordance with Section 280G(d)(4) of the Code.4  (2)All determinations required to be made under this Section 4(i) shall bemade by a tax or compensation consulting firm of national reputation selected by the Company (the “Consulting Firm”), which shallprovide detailed supporting calculations both to the Company and the Executive within 20 business days of the date of termination orsuch earlier time as is requested by the Company and an opinion to the Executive that he has substantial authority not to report anyexcise tax on his Federal income tax return with respect to any Payments. Any such determination by the Consulting Firm shall bebinding upon the Company and the Executive. Within five business days thereafter, the Company shall pay to or distribute to or for thebenefit of the Executive such amounts as are then due to the Executive under this Agreement. All fees and expenses of the ConsultingFirm incurred in connection with the determinations contemplated by this Section 4(i) shall be borne by the Company.(3)As a result of the uncertainty in the application of Section 280G of theCode at the time of the initial determination by the Consulting Firm hereunder, it is possible that Payments will have been made by theCompany which should not have been made (“Overpayment”) or that additional Payments which will not have been made by theCompany could have been made (“Underpayment”), in each case, consistent with the calculations required to be made hereunder. Inthe event that the Consulting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against the Executivewhich the Consulting Firm believes has a high probability of success, determines that an Overpayment has been made, any suchOverpayment paid or distributed by the Company to or for the benefit of the Executive shall be promptly repaid to the Company by theExecutive. In the event that the Consulting Firm, based upon controlling precedent or other substantial authority, determines that anUnderpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executivetogether with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.(j)Cooperation. Following the Term of Employment, the Executive shall give his assistance andcooperation willingly, upon reasonable advance notice with due consideration for his other business or personal commitments, in anymatter relating to his position with the Company, or his expertise or experience as the Company may reasonably request, including hisattendance and truthful testimony where deemed appropriate by the Company, with respect to any investigation or the Company’sdefense or prosecution of any existing or future claims or litigations or other proceedings relating to matters in which he was involvedor potentially had knowledge by virtue of his employment with the Company. In no event shall his cooperation materially interfere withhis services for a subsequent employer or other similar service recipient. To the extent permitted by law, the Company agrees that (i) itshall promptly reimburse the Executive for his reasonable and documented expenses in connection with his rendering assistance and/orcooperation under this Section 4(j) upon his presentation of documentation for such expenses and (ii) the Executive shall be reasonablycompensated for any continued material services as required under this Section 4(j).(k)Return of Company Property. Following the Termination Date, the Executive or his personalrepresentative shall return all Company property in his possession, including but not limited to all computer equipment (hardware andsoftware), telephones, facsimile machines, cell phones and other communication devices, credit cards, office keys, security accesscards, badges, identification cards and all copies (including drafts) of any documentation or information (however stored) relating to thebusiness of the Company, its customers and clients or its prospective customers and clients.(l)Compliance with Section 409A.(i)General. It is the intention of both the Company and the Executive that thebenefits and rights to which the Executive could be entitled pursuant to this Agreement comply with Section 409A of the Code and theTreasury Regulations and other guidance promulgated or issued thereunder (“Section 409A”), to the extent that the requirements ofSection 409A are applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention.5  (ii)Distributions on Account of Separation from Service. If and to the extentrequired to comply with Section 409A, no payment or benefit required to be paid under this Agreement on account of termination ofthe Executive’s employment shall be made unless and until the Executive incurs a “separation from service” within the meaning ofSection 409A.(iii)Six Month Delay for Specified Employees. If the Executive is a “specifiedemployee” (within the meaning of Section 409A(a)(2)(B)(i) of the Code), then no payment or benefit that is payable on account of theExecutive’s “separation from service”, as that term is defined for purposes of Section 409A, shall be made before the date that is sixmonths after the Executive’s “separation from service” (or, if earlier, the date of the Executive’s death) if and to the extent that suchpayment or benefit constitutes deferred compensation (or may be nonqualified deferred compensation) under Section 409A and suchdeferral is required to comply with the requirements of Section 409A. Any payment or benefit delayed by reason of the prior sentenceshall be paid out or provided in a single lump sum at the end of such required delay period in order to catch up to the original paymentschedule.(iv)Treatment of Each Installment as a Separate Payment. For purposes ofapplying the provisions of Section 409A to this Agreement, each separately identified amount to which the Executive is entitled underthis Agreement shall be treated as a separate payment. In addition, any series of installment payments under this Agreement shall betreated as a right to a series of separate payments.(v)Taxable Reimbursements and In-Kind Benefits.(A)Any reimbursements by the Company to the Executiveof any eligible expenses under this Agreement that are not excludable from the Executive’s income for Federal income tax purposes(the “Taxable Reimbursements”) shall be made by no later than the last day of the taxable year of the Executive following the year inwhich the expense was incurred.(B)The amount of any Taxable Reimbursements, and thevalue of any in-kind benefits to be provided to the Executive, during any taxable year of the Executive shall not affect the expenseseligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of the Executive.(C)The right to Taxable Reimbursement, or in-kindbenefits, shall not be subject to liquidation or exchange for another benefit.(vi)Section 409A Compliance. Notwithstanding the foregoing, the Company doesnot make any representation to the Executive that the payments or benefits provided under this Agreement are exempt from, or satisfy,the requirements of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless theExecutive or any beneficiary of the Executive for any tax, additional tax, interest or penalties that the Executive or any beneficiary ofthe Executive may incur in the event that any provision of this Agreement, or any amendment or modification thereof, or any otheraction taken with respect thereto, is deemed to violate any of the requirements of Section 409A.5.Restrictive Covenants.(a)Confidential Information. The Executive shall execute and agree to be bound by the terms of theCompany’s Employee Invention Assignment, Confidentiality and Non-Competition Agreement (the “EIIA”) as provided therein. (b)Insider Trading Policies. Executive agrees that he shall comply with and be bound by theCompany’s insider trading policies with respect to the securities of the Company as now in effect or hereafter adopted or amended.6  (c)Clawback Provisions. All incentive and equity awards and payments shall be subject to theclawback policy of the Company, as now in effect or hereafter adopted or amended, and all applicable laws and rules and regulations ofthe stock exchanges and public market on which the securities of the Company are traded. (d)Injunction. It is recognized and hereby acknowledged by the parties hereto that a breach by theExecutive of any of the covenants contained in this Section 5 or the EIIA may cause irreparable harm and damage to the Company, andits Related Entities, the monetary amount of which may be virtually impossible to ascertain. As a result, the Executive recognizes andhereby acknowledges that the Company and its Related Entities shall be entitled to seek an injunction from any court of competentjurisdiction enjoining and restraining any violation of any or all of the covenants contained in this Section 5 or the EIIA by theExecutive or any of his affiliates, associates, partners or agents, either directly or indirectly, and that such right to injunction shall becumulative and in addition to whatever other remedies the Company may possess.6.Representations and Warranties of Executive. The Executive represents and warrants to the Company that:(a)The Executive’s employment will not conflict with or result in his breach of any agreement towhich he is a party or otherwise may be bound;(b)The Executive has not violated, and in connection with his employment with the Company willnot violate, any non-solicitation, non-competition or other similar covenant or agreement of a prior employer by which he is or may bebound; and(c)In connection with Executive’s employment with the Company, he will not use any confidentialor proprietary information that he may have obtained in connection with employment with any prior employer; and7.Indemnification. Subject to limitations imposed by law, the Company shall indemnify and hold harmless theExecutive to the fullest extent permitted by law from and against any and all claims, damages, expenses (including attorneys’ fees),judgments, penalties, fines, settlements, and all other liabilities incurred or paid by him in connection with the investigation, defense,prosecution, settlement or appeal of any threatened, pending or completed action, suit or proceeding, whether civil, criminal,administrative or investigative and to which the Executive was or is a party or is threatened to be made a party by reason of the fact thatthe Executive is or was an officer, employee or agent of the Company, or by reason of anything done or not done by the Executive inany such capacity or capacities, provided that the Executive acted in good faith, in a manner that was not grossly negligent orconstituted willful misconduct and in a manner he reasonably believed to be in or not opposed to the best interests of the Company,and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. 8.Definitions. When used in this Agreement, the following terms shall have the following meanings:(a)Accrued Obligations” means:(i)all accrued but unpaid Base Salary through the end of the Term of Employment;(ii)any unpaid or unreimbursed expenses incurred in accordance with Companypolicy to the extent incurred during the Term of Employment;(iii)any accrued but unpaid benefits provided under the Company’s employeebenefit plans, subject to and in accordance with the terms of those plans;7  (iv)any unpaid Bonus with respect to any completed fiscal year that has ended onor prior to the end of the Term of Employment; and(v)any accrued but unused vacation pay.(b)“Base Salary” means the salary provided for in Section 3(a) hereof or any increased salarygranted to Executive pursuant to Section 3(a) hereof.(c)“Beneficial Owner” and “Beneficial Ownership” shall have the meaning ascribed to such terms inRule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended.(d)“Board” means the Board of Directors of the Company.(e)“Bonus” means any bonus payable to the Executive pursuant to Section 3(b) hereof.(f)“Cause” means any of the following: (i)Executive’s conviction of or plea of nolo contendere to a felony or to any crimeinvolving moral turpitude;(ii)willful misconduct or gross negligence by the Executive resulting, in either case,in material economic or reputational harm to the Company or any of Related Entities;(iii)a willful failure by the Executive to carry out the reasonable and lawfuldirections given to him with respect to his employment as the Company’s SVP Development and failure by the Executive to remedy thefailure within thirty (30) days after receipt of written notice of same from the Company;(iv)fraud, embezzlement, theft or dishonesty of a material nature by the Executiveagainst the Company or any Related Entity, or a willful material violation by the Executive of a policy or procedure of the Company orany Related Entity, resulting, in any case, in material, reputational or economic harm to the Company or any Related Entity; or(v) a willful material breach by the Executive of this Agreement andfailure by the Executive to remedy the material breach within 30 days after receipt of written notice of same by the Company.(g)“CEO” means the Chief Executive Officer of the Company.(h)“Change in Control” means the occurrence of any of the following events: (i) any Personbecomes the Beneficial Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of thetotal voting power represented by the Company’s then-outstanding voting securities; provided, however, that for purposes of thissubclause (i) the acquisition of additional securities by any one Person who is considered to own more than fifty percent (50%) of thetotal voting power of the securities of the Company will not be considered a Change in Control; (ii) the consummation of the sale ordisposition by the Company of all or substantially all of the Company’s assets; (iii) the consummation of a merger or consolidation ofthe Company with any other corporation, other than a merger or consolidation which would result in the voting securities of theCompany outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted intovoting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the votingsecurities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or (iv) achange in the effective control of the Company that occurs on the date that a majority of members of the Board is replaced during anytwelve (12) month period by members of the Board whose appointment or election is not endorsed by a majority of the members of theBoard prior to the date of the appointment or election. For8  purpose of this subclause (iv), if any Person is considered to be in effective control of the Company, the acquisition of additionalcontrol of the Company by the same Person will not be considered a Change in Control. For purposes of this definition, Persons will beconsidered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisitionof stock, or similar business transaction with the Company. (i)“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended fromtime to time.(j)“Code” means the Internal Revenue Code of 1986, as amended.(k)“Commencement Date” means the date of this Agreement. (l)“Disability” means the Executive’s inability, or failure, to perform the essential functions of hisposition, with or without reasonable accommodation, for any period of six months or more in any 12 month period, by reason of anymedically determinable physical or mental impairment.(m)“Equity Awards” means any stock options, restricted stock, restricted stock units, stockappreciation rights, phantom stock or other equity based awards granted by the Company to the Executive.(n)“Excise Tax” means any excise tax imposed by Section 4999 of the Code, together with anyinterest and penalties imposed with respect thereto, or any interest or penalties are incurred by the Executive with respect to any suchexcise tax.(o)“Good Reason” means the occurrence of any of the following events or conditions, without theExecutive’s express written consent:(i)a material reduction by the Company in the Executive’s annual Base Salary(which for purposes hereof is deemed to constitute a reduction of greater than 10%, unless such reduction applies as part of a salaryreduction program and such program includes similar reductions to all of the Executive’s direct reports); or(ii)the relocation of the Executive’s principal place of employment to a locationmore than 50 miles from the Executive’s principal place of employment immediately prior to the Executive’s termination.With respect to each of subsection (i) and (ii) above, the Executive must provide notice to the Company of the condition giving rise to“Good Reason” within 30 days of the initial existence of such condition, and the Company will have 30 days following such notice toremedy such condition. The Executive must resign the Executive’s employment no later than 30 days following the Company’s failureto cure the Good Reason or written notice to the Executive that it will decline to do so.(p)“Group” shall have the meaning ascribed to such term in Section 13(d) of the SecuritiesExchange Act of 1934.(q)“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the SecuritiesExchange Act of 1934 and used in Sections 13(d) and 14(d) thereof.(r)“Related Entity” means any Person controlling, controlled by or under common control with theCompany or any of its subsidiaries. For this purpose, the terms “controlling,” “controlled by” and “under common control with” meanthe possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whetherthrough the ownership of voting securities, as trustee or executor, by contract or otherwise, including (without limitation) theownership, directly or indirectly,9  of securities having the power to elect a majority of the board of directors or similar body governing the affairs of such Person.(s)“Target Bonus” has the meaning described in Section 3(b).(t)“Term of Employment” means the period during which the Executive shall be employed by theCompany pursuant to the terms of this Agreement, which period shall begin on the Commencement Date and continue until terminatedin accordance with Section 4 hereof.(u)“Termination Date” means the date on which the Term of Employment ends.9.Miscellaneous Provisions.(a)Taxes. All payments or transfers of property made by the Company to the Executive or his estateor beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine itshould withhold pursuant to any applicable law or regulation.(b)Assignment. The Company shall have the right to assign this Agreement and its rights andobligations hereunder in whole, but not in part, to any corporation or other entity with or into which the Company may hereafter mergeor consolidate or to which the Company may transfer all or substantially all of its assets, if in any such case said corporation or otherentity shall by operation of law or expressly in writing assume all obligations of the Company hereunder as fully as if it had beenoriginally made a party hereto, but may not otherwise assign this Agreement or its rights and obligations hereunder. The Executivemay not assign or transfer this Agreement or any rights or obligations hereunder.(c)Governing Law and At-will nature of Employment. Except as expressly set forth herein, this letteragreement and the rights and obligations of the parties hereto shall be construed in accordance with the laws of the Commonwealth ofMassachusetts, without giving effect to the principles of conflict of laws. Executive’s employment with the Company is employment at-will, which means either Executive or the Company may terminate Executive’s employment at any time and for any reason subject tothe provisions of Section 4 of this Agreement.(d)Arbitration and Class Action Waiver. Executive and the Company agree to submit to mandatorybinding arbitration any and all claims arising out of or related to Executive’s employment with the Company and the terminationthereof, including, but not limited to, claims for unpaid wages, wrongful termination, torts, stock or stock options or other ownershipinterest in the Company, and/or discrimination (including harassment), except as set forth below, based upon any federal, state or localordinance, statute, regulation or constitutional provision except that each party may, at its, his or her option, seek injunctive relief incourt related to the improper use, disclosure or misappropriation of a party’s private, proprietary, confidential or trade secretinformation (collectively, “Arbitrable Claims”). Further, to the fullest extent permitted by law, Executive and the Company agree thatno class or collective actions can be asserted in arbitration or otherwise. All claims, whether in arbitration or otherwise, must bebrought solely in Executive’s or the Company’s individual capacity, and not as a plaintiff or class member in any purported class orcollective proceeding. THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO ARBITRABLECLAIMS. THE PARTIES FURTHER WAIVE ANY RIGHTS THEY MAY HAVE TO PURSUE OR PARTICIPATE IN A CLASS ORCOLLECTIVE ACTION PERTAINING TO ANY ARBITRABLE CLAIMS BETWEEN YOU AND THE COMPANY.Notwithstanding anything to the contrary herein, nothing in this Arbitration and Class Action Waiver section restrictsExecutive’s right to pursue claims in court (a) on a representative action basis under applicable law or (b) for any alleged sexualharassment or any alleged unlawful discriminatory practices related to sexual harassment.10  This Agreement does not restrict Executive’s right to file administrative claims Executive may bring before any governmentagency where, as a matter of law, the parties may not restrict the employee’s ability to file such claims (including, but not limited to, theNational Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor). However, the partiesagree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrativeclaims. The arbitration shall be conducted in Boston, Massachusetts through JAMS before a single neutral arbitrator, in accordancewith the JAMS employment arbitration rules then in effect. The JAMS rules may be found and reviewed athttp://www.jamsadr.com/rules-employment-arbitration. If Executive is unable to access these rules, please let the Company know andExecutive will be provided with a hardcopy. The arbitrator shall issue a written decision that contains the essential findings andconclusions on which the decision is based. Executive and the Company agree that this Arbitration and Class Action Waiver Provisionshall be governed by the Federal Arbitration Act. Should any portion of this provision be found unenforceable, it shall be severed andthe remaining provisions shall remain in full force and effect.(e)Entire Agreement. This Agreement, together with the exhibit attached hereto, constitutes theentire agreement between the patties hereto with respect to the subject matter hereof and, upon its effectiveness, shall supersede all prioragreements, understandings and arrangements, both oral and written, between the Executive and the Company (or any of its RelatedEntities) with respect to such subject matter. This Agreement may not be modified in any way unless by a written instrument signed byboth the Company and the Executive.(f)Notices. All notices required or permitted to be given hereunder shall be in writing and shall bepersonally delivered by courier, sent by registered or certified mail, return receipt requested or sent by confirmed facsimile transmissionaddressed as set forth herein. Notices personally delivered, sent by facsimile or sent by overnight courier shall be deemed given on thedate of delivery and notices mailed in accordance with the foregoing shall be deemed given upon receipt by the addressee, asevidenced by the return receipt thereof. Notice shall be sent (i) if to the Company, addressed to the Company’s headquarters, Attention:the Company’s CEO, and (ii) if to the Executive, to his address as reflected on the payroll records of the Company, or to such otheraddress as either party shall request by notice to the other in accordance with this provision.(g)Benefits; Binding Effect. This Agreement shall be for the benefit of and binding upon the partieshereto and their respective heirs, personal representatives, legal representatives, successors and, where permitted and applicable,assigns, including, without limitation, any successor to the Company, whether by merger, consolidation, sale of stock, sale of assets orotherwise.(h)Right to Consult with Counsel. The Executive acknowledges having read and considered all ofthe provisions of this Agreement carefully, and having had the opportunity to consult with counsel of his own choosing, and, giventhis, the Executive agrees that the obligations created hereby are not unreasonable.(i)Severability. The invalidity of any one or more of the words, phrases, sentences, clauses,provisions, sections or articles contained in this Agreement shall not affect the enforceability of the remaining portions of thisAgreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the event that any one or moreof the words, phrases, sentences, clauses, provisions, sections or articles contained in this Agreement shall be declared invalid, thisAgreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, provisionsor provisions, section or sections or article or articles had not been inserted. If such invalidity is caused by length of time or size ofarea, or both, the otherwise invalid provision will be considered to be reduced to a period or area which would cure such invalidity.(j)Waivers. The waiver by either party hereto of a breach or violation of any term or provision ofthis Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation.11  (k)Damages; Attorneys’ Fees. Nothing contained herein shall be construed to prevent the Companyor the Executive from seeking and recovering from the other damages sustained by either or both of them as a result of its or his breachof any term or provision of this Agreement. Each party shall bear its own costs and attorneys’ fees.(l)No Set-off or Mitigation. The Company’s obligation to make the payments provided for in thisAgreement and otherwise to perform its obligations hereunder shall not be affected by any set off, counterclaim, recoupment, defenseor other claim, right or action which the Company may have against the Executive or others. In the event of any termination of theExecutive’s employment under this Agreement, he shall be under no obligation to seek other employment or otherwise in any way tomitigate the amount of any payment provided for hereunder.(m)Section Headings. The article, section and paragraph headings contained in this Agreement arefor reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.(n)No Third Party Beneficiary. The Related Entities are intended third party beneficiaries of thisAgreement. Otherwise, nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give anyperson other than the Company, the parties hereto and their respective heirs, personal representatives, legal representatives, successorsand permitted assigns, any rights or remedies under or by reason of this Agreement.(o)Counterparts. This Agreement may be executed in one or more counterparts, each of which shallbe deemed to be an original but all of which together shall constitute one and the same instrument and agreement.[Signature Page to Executive Employment Agreement Follows]12  IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date first above written.CompanyKalVista Pharmaceuticals, Inc. Print Name:Title:Executive Michael Smith [Signature Page to Executive Employment Agreement] 13  Exhibit BGeneral Release of Claims1.Michael Smith (“Executive”), for himself and his family, heirs, executors, administrators, legal representatives andtheir respective successors and assigns, in exchange for the consideration received pursuant to Section [4(e)] [4(g)] of the ExecutiveEmployment Agreement (the “Severance Benefits”) to which this release is attached as Exhibit B (the “Employment Agreement”),does hereby release and forever discharge KalVista Pharmaceuticals, Inc. (the “Company”), its subsidiaries, affiliated companies,successors and assigns, and its current or former directors, officers, employees, shareholders or agents in such capacities (collectivelywith the Company, the “Released Parties”) from any and all actions, causes of action, suits, controversies, claims and demandswhatsoever, for or by reason of any matter, cause or thing whatsoever, whether known or unknown including, but not limited to, allclaims under any applicable laws arising under or in connection with Executive’s employment or termination thereof, whether for tort,breach of express or implied employment contract, wrongful discharge, intentional infliction of emotional distress, or defamation orinjuries incurred on the job or incurred as a result of loss of employment. Without limiting the generality of the release provided above,Executive expressly waives any and all claims under Age Discrimination in Employment Act (“ADEA”) that he may have as of the datehereof. Executive further understands that, by signing this General Release of Claims, he is in fact waiving, releasing and forevergiving up any claim under the ADEA as well as all other laws within the scope of this paragraph 1 that may have existed on or prior tothe date hereof. Notwithstanding anything in this paragraph 1 to the contrary, this General Release of Claims shall not apply to (i) anyrights to receive any payments or benefits to which the Executive is entitled under COBRA, (ii) any rights or claims that may arise as aresult of events occurring after the date this General Release of Claims is executed, (iii) any indemnification and advancement rightsExecutive may have as a former employee, officer or director of the Company or its subsidiaries or affiliated companies (including anyrights under Section 7 of the Employment Agreement), (iv) any claims for benefits under any directors’ and officers’ liability policymaintained by the Company or its subsidiaries or affiliated companies in accordance with the terms of such policy, (v) rights to vestedbenefits under the Company’s 401(k) plan, and (vi) any rights as a holder of equity securities of the Company.2.Executive understands that nothing in this Release shall in any way limit or prohibit Executive from engaging in anyProtected Activity. For purposes of this Release, “Protected Activity” shall mean filing a charge, complaint, or report with, or otherwisecommunicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or localgovernment agency or commission, including the Securities and Exchange Commission, the Equal Employment OpportunityCommission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”).Executive understands that in connection with such Protected Activity, Executive is permitted to disclose documents or otherinformation as permitted by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding theforegoing, Executive agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information thatmay constitute Company confidential information to any parties other than the Government Agencies. Executive further understandsthat “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications. In addition,pursuant to the Defend Trade Secrets Act of 2016, Executive is notified that an individual will not be held criminally or civilly liableunder any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state, or localgovernment official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation oflaw, or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made underseal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclosethe trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files anydocument containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order. This Releasedoes not limit Executive’s right to receive an award for information provided to any Government Agencies.14  3.Executive represents that he has not filed against the Released Parties any complaints, charges, or lawsuits arisingout of his employment, or any other matter arising on or prior to the date of this General Release of Claims, and covenants and agreesthat he will never individually or with any person file, or commence the filing of any lawsuits, complaints or proceedings with anygovernmental agency, or against the Released Parties with respect to any of the matters released by Executive pursuant to paragraph 1hereof; provided, that nothing herein shall prevent Executive from filing a charge or complaint with the Equal Employment OpportunityCommission (“EEOC”) or similar federal or state agency or the Executive’s ability to participate in any investigation or proceedingconducted by such agency. Nothing in this paragraph shall serve to limit, restrain or impair Executive’s rights under paragraph 2above. 4.Executive acknowledges that, in the absence of his execution of this General Release of Claims, the SeveranceBenefits would not otherwise be due to him.5.Executive acknowledges and agrees that he received adequate consideration in exchange for agreeing to thecovenants contained in Section 5 of the Employment Agreement and the EIAA (as defined therein), that such covenants remainreasonable and necessary to protect the legitimate business interests of the Company and its affiliates and that he will continue tocomply with those covenants.6.Executive hereby acknowledges that the Company has informed him that he has up to 21 days to sign this GeneralRelease of Claims and he may knowingly and voluntarily waive that 21 day period by signing this General Release of Claimsearlier. Executive also understands that he shall have seven days following the date on which he signs this General Release of Claimswithin which to revoke it by providing a written notice of his revocation to the Company.7.Executive acknowledges and agrees that this General Release of Claims will be governed by and construed andenforced in accordance with the internal laws of the State of Massachusetts applicable to contracts made and to be performed entirelywithin such State.8.Executive acknowledges that he has read this General Release of Claims, that he has been advised that he shouldconsult with an attorney before he executes this general release of claims, and that he understands all of its terms and executes itvoluntarily and with full knowledge of its significance and the consequences thereof.9.This General Release of Claims shall become irrevocable on the eighth day following Executive’s execution of thisGeneral Release of Claims, unless previously revoked in accordance with paragraph 6, above.Intending to be legally bound hereby, Executive has executed this General Release of Claims on ___________, 20__. Executive Michael Smith 15 Exhibit 10.23 DEED OF VARIATION OF CONTRACT (1)KALVISTA PHARMACEUTICALS LIMITED(2)DR CHRISTOPHER YEA CONTENTS ClausePage 1.Terms defined in the Contract12.Variation13.Governing law34.Jurisdiction3Schedule 1 Original Agreement4 THIS DEED is made on 2019BETWEEN:(1)KALVISTA PHARMACEUTICALS LIMITED incorporated and registered in England and Wales with company number 07543947whose registered office is at Building 227 Tetricus Science Park, Porton Down, Salisbury, Wiltshire, SP4 0JQ (the “Company”); and(2)DR CHRISTOPHER MARTYN YEA of [****], (the “Executive”).(together the “Parties”)BACKGROUND:(A)The Company and the Executive are party to a service agreement dated 1 November 2015, as amended on 31 January 2019, (the“Contract”), a copy of which is attached at Schedule 1 to this deed.(B)The KalVista Pharmaceuticals, Inc. compensation committee has approved certain changes to the Agreement. Consequently, theParties wish to amend the Agreement as set out in this deed with effect from June 26, 2019 (the “Variation Date”).1.Terms defined in the ContractIn this deed, expressions defined in the Contract and used in this deed have the meaning set out in the Contract.2.Variation2.1With effect from the Variation Date the Parties agree the following amendments to the Contract:a)Clause 10 is amended so that subclause 10.1 is deleted and replaced with the following:10.1Subject to the provisions of this clause the Executive will be entitled to a salary at the rate ofUSD $420,000 per annum (the “Salary”). Such Salary shall accrue from day to day and will be paidin United States Dollars monthly in arrears on such day of each calendar month as the Companymay nominate. Executive acknowledges and agrees that he will be paid in United States Dollars,and that he will be solely responsible for any and all costs and fees, or any loss of value due to thethen current exchange rate, or fluctuations thereof, related to any subsequent currency exchangehe makes with respect to such payments.1  Clause 10 is amended so that subclause 10.3 is deleted and replaced with the following:10.3The Executive will be eligible to participate in a discretionary performance related bonus eachyear dependent upon the achievement of pre-determined personal and corporate objectives. Inmaking any bonus award, the Board will assess the Executive’s success in achieving the pre-determined objectives and any bonus shall be made in the same manner and at the same time thatother senior-level executives receive their annual incentive compensationawards, but in no event later than 2 ½ months following the last day of the applicable Companyfiscal year, and, except as otherwise provided herein, will be subject to the Executive’s continuedemployment through the last day of the applicable Company fiscal year. The target amount ofbonus for which the Executive will be eligible for the Company’s 2020 fiscal year will be 40% of theExecutive’s Salary (less applicable tax and National Insurance contributions) and which shall beremitted in the currency and on the basis set out in clause 10.1. Additionally, Executiveacknowledges and agrees that payment of any bonus amount earned and payable with respect tothe Company’s 2019 fiscal year shall be remitted in the currency and on the basis set out in clause10.1. Executive acknowledges and agrees that he will be paid in United States Dollars, and thathe will be solely responsible for any and all costs and fees, or any loss of value due to the thencurrent exchange rate, or fluctuations thereof, related to any subsequent currency exchange hemakes with respect to such payments. If the Executive receives any bonus payment, theCompany is not obliged to make further bonus payments and any such bonus payment shall notfor part of the Executive’s contractual remuneration or salary. Bonus payment shall not bepensionable or treated as part of basic salary for any purpose Clause 10 is amended so that the following is added to the end of subclause 10.4:The Executive acknowledges that all liabilities to income tax and National Insurance contributionsare required to be satisfied in Great British Pounds and that the Company will apply such exchangerate on the date of payment as it considers appropriate to calculate the amounts to be withheldfrom any payments otherwise due to the Executive and remit such sums to HMRC.2.2Except as set out in clause 2.1, the Contract shall continue in full force and effect.3.CounterpartsThis deed may be executed in any number of counterparts, all of which taken together shall constitute one and the sameagreement. 4.Governing lawThis deed and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it or its subjectmatter or formation shall be governed by and construed in accordance with the law of England and Wales.5.JurisdictionEach party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim(including non-contractual disputes or claims) arising out of or in connection with this deed or its subject matter or formation.THIS AGREEMENT has been entered into as a deed on the date stated at the beginning of it.2 SCHEDULE 1ORIGINAL AGREEMENT3 Executed as a Deed)by DR CHRISTOPHER YEA) /s/ Dr Christopher Yeain the presence of:)Signature of witness: /s/ Debra LyonName: Debra LyonAddress: [****] Occupation: Finance Manager Executed as a Deed )(but not delivered until the date)appearing at the head of page 1))by KALVISTA PHARMACEUTICALS)LIMITED acting by T. AndrewCrockett ) a director in the presence of:)/s/ T. Andrew Crockett_______________________DirectorSignature of witness: /s/ Debra LyonName: Debra LyonAddress: [****] Occupation: Finance Manager 4 Exhibit 10.24DESCRIPTION OF REGISTRANT’S SECURITIESGeneralWe are authorized to issue 105,000,000 shares of all classes of capital stock, of which 100,000,000 shares are commonstock, $0.001 par value per share, and 5,000,000 shares are preferred stock, $0.001 par value per share. Our capital is stated in U.S.dollars. As of July 1, 2019 we had 17,388,298 outstanding shares of common stock and no outstanding shares of preferred stock.Common StockVotingHolders of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of thestockholders, including the election of directors, and do not have cumulative voting rights. Accordingly, the holders of a majority of theshares of our common stock entitled to vote in any election of directors can elect all of the directors standing for election.DividendsSubject to preferences that may be applicable to any then outstanding preferred stock, the holders of common stock areentitled to receive dividends, if any, as may be declared from time to time by our board of directors out of legally available funds.LiquidationIn the event of our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in thenet assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities, subject to thesatisfaction of any liquidation preference granted to the holders of any outstanding shares of preferred stock.Rights and PreferencesHolders of our common stock have no preemptive, conversion or subscription rights, and there are no redemption or sinkingfund provisions applicable to our common stock. The rights, preferences and privileges of the holders of our common stock are subjectto, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock that we may designate andissue in the future.Fully Paid and NonassessableAll of our outstanding shares of common stock are fully paid and nonassessable. Transfer Agent and RegistrarAmerican Stock Transfer & Trust Company, LLC is our transfer agent and registrar for the common stock.The Nasdaq Global MarketOur common stock is listed on The Nasdaq Global Market under the symbol “KALV.”Preferred StockUnder the terms of our Amended and Restated Certificate of Incorporation, our board of directors have the authority, without furtheraction by our stockholders, to issue up to 5,000,000 shares of preferred stock in one or more series, to establish from time to time thenumber of shares to be included in each such series, to fix the rights, preferences and privileges of the shares of each wholly unissuedseries and any qualifications, limitations or restrictions thereon, and to increase or decrease the number of shares of any such series, butnot below the number of shares of such series then outstanding.Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect thevoting power or other rights of the holders of our common stock. The purpose of authorizing our board of directors to issue preferredstock and determine its rights and preferences is to eliminate delays associated with a stockholder vote on specific issuances. Theissuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could,among other things, have the effect of delaying, deferring or preventing a change in control of us and may adversely affect the marketprice of our common stock and the voting and other rights of the holders of our common stock. It is not possible to state the actualeffect of the issuance of any shares of preferred stock on the rights of holders of common stock until the board of directors determinesthe specific rights attached to that preferred stock.Anti-Takeover Effects of Provisions of Our Amended and Restated Certificate of Incorporation, Our Bylaws and DelawareLawDelaware Anti-Takeover LawWe are subject to the provisions of Section 203 of the Delaware General Corporation Law. In general, Section 203 prohibits apublicly- held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a three-yearperiod following the time that this stockholder becomes an interested stockholder, unless the business combination is approved in aprescribed manner. A “business combination” includes, among other things, a merger, asset or stock sale or other transaction resultingin a financial benefit to the interested stockholder. An “interested stockholder” is a person who, together with affiliates and associates,owns, or did own within three years prior to the determination of interested stockholder status, 15% or more of the corporation’s votingstock.Under Section 203, a business combination between a corporation and an interested stockholder is prohibited unless it satisfies one ofthe following conditions: before the stockholder became2interested, the board of directors approved either the business combination or the transaction which resulted in the stockholderbecoming an interested stockholder; upon closing of the transaction which resulted in the stockholder becoming an interestedstockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transactioncommenced, excluding for purposes of determining the voting stock outstanding, shares owned by persons who are directors and alsoofficers, and employee stock plans, in some instances; or at or after the time the stockholder became interested, the businesscombination was approved by the board of directors of the corporation and authorized at an annual or special meeting of thestockholders by the affirmative vote of at least two-thirds of the outstanding voting stock which is not owned by the interestedstockholder.A Delaware corporation may “opt out” of these provisions with an express provision in its original certificate ofincorporation or an express provision in its certificate of incorporation or bylaws resulting from a stockholders’ amendment approvedby at least a majority of the outstanding voting shares. We have not opted out of these provisions. As a result, mergers or othertakeover or change in control attempts of us may be discouraged or prevented.Amended and Restated Certificate of Incorporation and Amended and Restated BylawsOur certificate of incorporation and bylaws contain certain provisions that are intended to enhance the likelihood of continuity andstability in the composition of the board of directors and which may have the effect of delaying, deferring or preventing a futuretakeover or change in control of the company unless such takeover or change in control is approved by the board of directors.These provisions include:Classified Board. Our certificate of incorporation provides that our board of directors will be divided into three classes ofdirectors, with the classes as nearly equal in number as possible. As a result, approximately one-third of our board of directors will beelected each year. The classification of directors will have the effect of making it more difficult for stockholders to change thecomposition of our board. Our bylaws will also provide that, subject to any rights of holders of preferred stock to elect additionaldirectors under specified circumstances, the number of directors will be fixed exclusively pursuant to a resolution adopted by our boardof directors.Action by Written Consent; Special Meetings of Stockholders. Our certificate of incorporation provides that stockholderaction can be taken only at an annual or special meeting of stockholders and cannot be taken by written consent in lieu of a meeting.Our bylaws provide that, subject to any special rights of the holders of any series of preferred stock, and to the requirements ofapplicable law, special meetings of the stockholders can be called only by or at the direction of the board of directors pursuant to aresolution adopted by a majority of the total number of directors which our board of directors would have if there were no vacancies.Except as described above, stockholders are not permitted to call a special meeting or to require the board of directors to call a specialmeeting.Removal of Directors. Our bylaws provide that our directors may be removed only for cause by the affirmative vote of atleast 66 2/3% of the voting power of our voting stock, voting3together as a single class. This requirement of a supermajority vote to remove directors could enable a minority of our stockholders toprevent a change in the composition of our board.Advance Notice Procedures. Our bylaws provide for an advance notice procedure for stockholder proposals to be broughtbefore an annual meeting of our stockholders, including proposed nominations of persons for election to the board of directors.Stockholders at an annual meeting are only be able to consider proposals or nominations specified in the notice of meeting or broughtbefore the meeting by or at the direction of the board of directors or by a stockholder who was a stockholder of record on the recorddate for the meeting, who is entitled to vote at the meeting and who has given our Secretary timely written notice, in proper form, ofthe stockholder’s intention to bring that business before the meeting. Although the bylaws will not give the board of directors thepower to approve or disapprove stockholder nominations of candidates or proposals regarding other business to be conducted at aspecial or annual meeting, the bylaws may have the effect of precluding the conduct of certain business at a meeting if the properprocedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect its ownslate of directors or otherwise attempting to obtain control of the company.Super Majority Approval Requirements. The Delaware General Corporation Law generally provides that the affirmativevote of a majority of the shares entitled to vote on any matter is required to amend a corporation’s certificate of incorporation orbylaws, unless either a corporation’s certificate of incorporation or bylaws requires a greater percentage. Our certificate ofincorporation and bylaws provide that the affirmative vote of holders of at least 66 2/3% of the total votes eligible to be cast in theelection of directors will be required to amend, alter, change or repeal certain provisions of the certificate of incorporation and bylaws.This requirement of a supermajority vote to approve amendments to certain provisions of our certificate of incorporation and bylawscould enable a minority of our stockholders to exercise veto power over any such amendments.Authorized but Unissued Shares. Our authorized but unissued shares of common stock and preferred stock will be availablefor future issuance without stockholder approval. These additional shares may be utilized for a variety of corporate purposes, includingfuture public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of authorized butunissued shares of common stock and preferred stock could render more difficult or discourage an attempt to obtain control of amajority of our common stock by means of a proxy contest, tender offer, merger or otherwise.Exclusive Forum. Our certificate of incorporation provides that, to the fullest extent permitted by applicable law, the Court ofChancery of the State of Delaware will be the sole and exclusive forum for (i) any derivative action or proceeding brought on ourbehalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to us orour stockholders, (iii) any action asserting a claim against us arising pursuant to any provision of the Delaware General CorporationLaw, our certificate of incorporation or our bylaws, or (iv) any other action asserting a claim against us that is governed by the internalaffairs doctrine. Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock shall be deemed tohave notice of and to have consented to the provisions of our certificate of incorporation described above. Although we believe theseprovisions benefit us by4providing increased consistency in the application of Delaware law for the specified types of actions and proceedings, the provisionsmay have the effect of discouraging lawsuits against our directors and officers. The enforceability of similar choice of forum provisionsin other companies’ certificates of incorporation has been challenged in legal proceedings, and it is possible that, in connection withone or more actions or proceedings described above, a court could find the choice of forum provisions contained in our certificate ofincorporation to be inapplicable or unenforceable.5EXHIBIT 23.1 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMWe consent to the incorporation by reference in Registration Statement Nos. 333-215185, 333-217009, and 333-228831 on Form S-3 and Registration Statement Nos. 333-203721,333-215184, 333-216032, 333-217008, 333-226442, and 333-230279 on Form S-8 of our report dated July 15, 2019, relating to the consolidated financial statements of KalVistaPharmaceuticals, Inc. appearing in this Annual Report on Form 10-K of KalVista Pharmaceuticals, Inc. for the year ended April 30, 2019./s/ Deloitte & Touche LLP Boston, MassachusettsJuly 15, 2019  Exhibit 31.1CERTIFICATION PURSUANT TORULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, T. Andrew Crockett, certify that: 1.I have reviewed this Annual Report on Form 10-K of KalVista Pharmaceuticals, Inc.; 2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by thisreport; 3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchange Act Rule 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under oursupervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known tous by others within those entities, particularly during the period in which this report is being prepared; b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed underour supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accounting principles; c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions aboutthe effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on suchevaluation; and d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’smost recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or isreasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, tothe registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which arereasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’sinternal control over financial reporting. Date: July 15, 2019By: /s/ T. Andrew Crockett T. Andrew CrockettChief Executive Officer  Exhibit 31.2CERTIFICATION PURSUANT TORULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Benjamin L. Palleiko, certify that: 1.I have reviewed this Annual Report on Form 10-K of KalVista Pharmaceuticals, Inc.; 2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by thisreport; 3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchange Act Rule 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under oursupervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known tous by others within those entities, particularly during the period in which this report is being prepared; b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed underour supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accounting principles; c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions aboutthe effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on suchevaluation; and d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’smost recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or isreasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, tothe registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which arereasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’sinternal control over financial reporting. Date: July 15, 2019By: /s/ Benjamin L. Palleiko Benjamin L. Palleiko Chief Business Officer & Chief Financial Officer Exhibit 32.1CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, T. Andrew Crockett, Chief Executive Officer of KalVista Pharmaceuticals, Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, asadopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge: •this Annual Report on Form 10-K of the Company for the year ended April 30, 2019 (the “Report”), as filed with the Securities and ExchangeCommission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and •the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. Date: July 15, 2019By: /s/ T. Andrew CrockettT. Andrew CrockettChief Executive Officer  Exhibit 32.2CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, Benjamin L. Palleiko, Chief Financial Officer of KalVista Pharmaceuticals, Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, asadopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge: •this Annual Report on Form 10-K of the Company for the year ended April 30, 2019 (the “Report”), as filed with the Securities and ExchangeCommission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and •the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. Date: July 15, 2019By: /s/ Benjamin L. Palleiko Benjamin L. Palleiko Chief Business Officer & Chief Financial Officer 

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