PIERIS PHARMACEUTICALS, INC. (Form: 10-Q, Received: 11/12/2019 06:48:53)

Exhibit 3.2 PIERIS PHARMACEUTICALS, INC. AMENDED AND RESTATED BYLAWS (effective August 30, 2019) ARTICLE I - STOCKHOLDERS Section 1. Annual Meeting. An annual meeting of the stockholders of the Corporation, for the election of directors to succeed those whose terms expire and for the transaction of such other business as may properly come before the meeting, shall be held at such place, on such date, and at such time as the Board of Directors shall fix. The Board of Directors may, in its sole discretion, determine that the meeting shall not be held at any place, but instead shall be held solely by means of remote communication as provided under the Nevada Revised Statutes (as amended from time to time, the “NRS”). Section 2. Special Meetings. Special meetings of the stockholders of the Corporation may be called only by the Board of Directors pursuant to a resolution adopted by a majority of the Whole Board. For the purposes of these Restated Bylaws, the term “Whole Board” shall mean the total number of authorized directors whether or not there exist any vacancies in previously authorized directorships. Special meetings of the stockholders may be held at such place within or without the State of Nevada as may be stated in such resolution. The Board of Directors or the person designated by the Board of Directors to call the meeting may, in its or his sole discretion, determine that the meeting shall not be held at any place, but instead shall be held solely by means of remote communication as provided under the NRS. Section 3. Notice of Meetings. Notice of the place, if any, date, and time of all meetings of the stockholders, and the means of remote communications, if any, by which the stockholders and proxyholders thereof may be deemed to be present in person and vote at such meeting, shall be given by the Corporation, not less than ten (10) nor more than sixty (60) days before the date on which the meeting is to be held, to each stockholder entitled to vote at such meeting, except as otherwise provided herein or required by law (by law meaning, here and hereinafter, by the NRS and Corporation’s Amended and Restated Articles of Incorporation, as amended or restated from time to time (the “Restated Articles of Incorporation”)). -1- 93321359v.1

When a meeting is adjourned to another place, if any, date or time, notice need not be given of the adjourned meeting if the place, if any, date and time thereof, and the means of remote communications, if any, by which the stockholders and proxyholders thereof may be deemed to be present in person and vote at such adjourned meeting, are announced at the meeting at which the adjournment is taken; provided, however, that (i) if the date of any adjourned meeting is more than thirty (30) days after the date for which the meeting was originally noticed, or (ii) if a new record date is fixed for the adjourned meeting, notice of the place, if any, date, and time of the adjourned meeting, and the means of remote communications, if any, by which the stockholders and proxyholders thereof may be deemed to be present in person and vote at such adjourned meeting, shall be given in conformity with the first paragraph of this Section 3. At any adjourned meeting, any business may be transacted which might have been transacted at the original meeting. Section 4. Quorum. At any meeting of the stockholders, the holders of a majority of the voting power of all of the shares of capital stock of the Corporation entitled to vote at the meeting, present in person or by proxy, shall constitute a quorum for all purposes, unless or except to the extent that the presence of a larger number may be required by law, by the Restated Articles of Incorporation or by rules of any stock exchange upon which the Corporation’s securities are listed. Where a separate vote by a class or classes of the shares of capital stock of the Corporation is required, a majority of the voting power of the shares of such class or classes present in person or represented by proxy shall constitute a quorum entitled to take action with respect to that vote on that matter, unless or except to the extent that the presence of a larger number may be required by law, by the Restated Articles of Incorporation or by rules of any stock exchange upon which the Corporation’s securities are listed.. If a quorum shall fail to attend any meeting, the chairman of the meeting may adjourn the meeting to another place, if any, date, or time. Section 5. Organization and Conduct of Business. The Chairman of the Board of Directors or, in his or her absence, the Chief Executive Officer or, in his or her absence, the President or, in his or her absence, such person as the Board of Directors may have designated, shall call to order any meeting of the stockholders and shall preside at and act as chairman of the meeting. The Secretary shall be the secretary of any meeting of the stockholders. In the absence of the Secretary and any Assistant Secretary, the secretary of the meeting shall be such person as the chairman of the meeting appoints. The chairman of any meeting of the stockholders shall determine the order of business and the procedures at the meeting, including such regulation of the manner of voting and the conduct of discussion as he or she deems to be appropriate. The chairman of any meeting of the stockholders shall have the power to adjourn the meeting to another place, if any, date and time. The date and time of the opening and closing of the polls for each matter upon which the stockholders will vote at the meeting shall be announced at the meeting. Section 6. Notice of Stockholder Business and Nominations. A. Annual Meetings of Stockholders. - 2 -

Nominations of persons for election to the Board of Directors and the proposal of business to be considered by the stockholders may be made at an annual meeting of the stockholders (a) pursuant to the Corporation’s notice of meeting or proxy materials with respect to such meeting, (b) by or at the direction of the Board of Directors or (c) by any stockholder of the Corporation who was a stockholder of record at the time of giving of notice thereof who is entitled to vote at the meeting and who complies with the notice procedures set forth in this paragraph C of Section 6. B. Special Meetings of Stockholders. Only such business, shall be conducted at a special meeting of stockholders as shall have been brought before the meeting pursuant to the notice of meeting given pursuant to Section 2 above. The notice of such special meeting shall include the purpose for which the meeting is called. Nominations of persons for election to the Board of Directors may be made at a special meeting of the stockholders at which directors are to be elected only (a) by or at the direction of the Board of Directors or (b) if the Board of Directors has determined that directors shall be elected at such meeting, by any stockholder of the Corporation who is a stockholder of record at the time of giving of notice thereof, who shall be entitled to vote at the meeting and who complies with the notice procedures set forth in paragraph C of this Section 6. C. Certain Matters Pertaining to Stockholder Business and Nominations. (1) For nominations or other business to be properly brought by a stockholder before an annual meeting pursuant to clause (c) of paragraph A of this Section 6 or a special meeting pursuant to paragraph B of this Section 6, (1.) the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation, (2.) such other business must otherwise be a proper matter for stockholder action under the NRS, (3.) if the stockholder, or the beneficial owner on whose behalf any such proposal or nomination is made, has provided the Corporation with a Solicitation Notice, as that term is defined in this paragraph C, such stockholder or beneficial owner must, in the case of a proposal, have delivered a proxy statement and form of proxy to holders of a sufficient percentage of the Corporation’s voting shares required by law to carry any such proposal, or, in the case of a nomination or nominations, have delivered a proxy statement and form of proxy to holders of a percentage of the Corporation’s voting shares reasonably believed by such stockholder or beneficial holder to be sufficient to elect the nominee or nominees proposed to be nominated by such stockholder, and must, in either case, have included in such materials the Solicitation Notice, and (4.) if no Solicitation Notice relating thereto has been timely provided pursuant to paragraph C of this Section 6, the stockholder or beneficial owner proposing such business or nomination must not have solicited a number of proxies sufficient to have required the delivery of such a Solicitation Notice under this Section. To be timely, a stockholder’s notice pertaining to an annual meeting shall be delivered to the Secretary at the principal executive office of the Corporation not less than ninety (90) or more than one-hundred and twenty (120) days prior to the first anniversary (the “Anniversary”) of the date of the preceding year’s annual meeting; provided, however, that in the event that the date of the annual meeting is more than thirty (30) days before or more than thirty (30) days after the - 3 -

Anniversary, to be timely, notice by the stockholder must be so delivered not earlier than the close of business (at the principal executive office of the Corporation) on the one-hundred and twentieth (120th) day prior to such annual meeting and not later than the close of business on the later of (i) the ninetieth (90th) day prior to such annual meeting or (ii) the close of business on the tenth (10th) day following the day on which public announcement of the date of such meeting is first made by the Corporation. Such stockholder’s notice for an annual meeting or a special meeting shall set forth: (a) as to each person whom the stockholder proposes to nominate for election or reelection as a director of the Corporation: (i) all information relating to such person that is required to be disclosed in solicitations of proxies for election of directors, or is otherwise required, in each case, pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (including such person’s written consent to being named in the proxy statement as a nominee and to serving as a director, if elected); (ii) a description of all direct and indirect compensation and other material monetary agreements, arrangements and understandings during the past three (3) years, and any other material relationships, between or among such stockholder, the beneficial owner, if any, on whose behalf any such proposal or nomination is being made, and their respective affiliates and associates, on the one hand, and each proposed nominee, and his or her respective affiliates and associates, on the other hand, including, without limitation, all information that would be required to be disclosed pursuant to Item 404 of Regulation S-K promulgated under the Securities Act of 1933, as amended, if such stockholder, such beneficial owner, or any affiliate or associate thereof, were the “registrant” for purposes of such rule and the nominee were a director or executive officer of such registrant; (iii) to the extent known by the stockholder, the name and address of any other securityholder of the Corporation who owns, beneficially or of record, any securities of the Corporation and who supports any nominee proposed by such stockholder; and (iv) the questionnaire and the representation and agreement, completed and signed by such person, as required by paragraph D of this Section 6; (b) as to any other business that the stockholder proposes to bring before the meeting, a brief description of the business desired to be brought before the meeting, including the text of any resolutions proposed for consideration, the reasons for conducting such business at the meeting, any material interest in such business of such stockholder and the beneficial owner, if any, on whose behalf the proposal is made, and to the extent known by the stockholder, the name and address - 4 -

of any other securityholder of the Corporation who owns, beneficially or of record, any securities of the Corporation and who supports any matter such stockholder intends to propose; and (c) as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made: (i) the name and address of such stockholder, as they appear on the Corporation’s books, and of such beneficial owner; (ii) (A) the class or series and number of shares of the Corporation’s capital stock which are, directly or indirectly, owned beneficially and of record by such stockholder and such beneficial owner, (B) any option, warrant, convertible security, stock appreciation right, or similar right with an exercise or conversion privilege or a settlement payment or mechanism at a price related to any class or series of the shares of the Corporation’s capital stock or with a value derived in whole or in part from the value of any class or series of the shares of the Corporation’s capital stock, whether or not such instrument or right shall be subject to settlement in the underlying class or series of the shares of capital stock of the Corporation (a “Derivative Instrument”) directly or indirectly owned beneficially by such stockholder and such beneficial owner as well as any other direct or indirect opportunity for such stockholder and such beneficial owner to profit or share in any profit derived from any increase or decrease in the value of shares of the Corporation, (C) any proxy, contract, arrangement, understanding, or relationship pursuant to which such stockholder has a right to vote any shares of any security of the Corporation, (D) any short interest in any security of the Corporation (for purposes of these Bylaws, a person shall be deemed to have a short interest in a security if such person directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has the opportunity to profit or share in any profit derived from any decrease in the value of the subject security), (E) any rights to dividends on the shares of the Corporation owned beneficially by such stockholder that are separated or separable from the underlying shares of the Corporation, (F) any proportionate interest in shares of the Corporation or Derivative Instruments held, directly or indirectly, by a general or limited partnership in which such stockholder or beneficial owner (i) is a general partner or, (ii) directly or indirectly, beneficially owns an interest in such general partner, and (G) any performance-related fees (other than an asset-based fee) that such stockholder or beneficial owner is entitled to based on any increase or decrease in the value of shares of the Corporation or Derivative Instruments as of the date of such notice, including, without limitation, any such interests held by members of such stockholder or beneficial owner’s immediate family sharing the same household (which information shall be supplemented by such stockholder and beneficial owner not later than ten (10) days after the record date for the meeting to disclose such ownership as of the record date; provided, however, that if such date is after the date of the meeting, not later than the day prior to the meeting); - 5 -

(iii) any other information relating to such stockholder and beneficial owner, if any, that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for, as applicable, the proposal and/or for the election of directors in a contested election pursuant to Regulation 14A under the Exchange Act and the rules and regulations promulgated thereunder; (iv) a description of all agreements, arrangements and understandings between such stockholder and beneficial owner, if any, and any other person or persons (including their names) in connection with the proposal of such business by such stockholder; and (v) a statement of whether or not either such stockholder or beneficial owner intends to deliver a proxy statement and form of proxy, in the case of a proposal, to holders of a sufficient percentage of the Corporation’s voting shares required by law to carry the proposal or, in the case of a nomination or nominations, to holders of a sufficient percentage of the Corporation’s voting shares to elect such nominee or nominees (an affirmative statement of such intent, a “Solicitation Notice”). (2) Notwithstanding anything in the second sentence of paragraph C(1) of this Section 6 to the contrary, in the event that the number of directors to be elected to the Board of Directors is increased and there is no public announcement by the Corporation naming all of the nominees for director or specifying the size of the increased Board of Directors at least fifty-five (55) days prior to the Anniversary (or, if the annual meeting is held more than thirty (30) days before or thirty (30) days after the Anniversary, at least fifty-five (55) days prior to such annual meeting), a stockholder’s notice required by this Section 6 shall also be considered timely, but only with respect to nominees for directorships newly created by such increase, and only if it is delivered to the Secretary at the principal executive office of the Corporation not later than the close of business on the tenth (10th) day following the day on which such public announcement is first made by the Corporation. (3) In the event the Corporation calls a special meeting of the stockholders for the purpose of electing one or more directors to the Board of Directors, any such stockholder may nominate a person or persons (as the case may be), for election to such directorship(s) as specified in the Corporation’s notice of meeting, provided, however, that the stockholder’s notice required by paragraph C(1) of this Section 6 is delivered to the Secretary at the principal executive office of the Corporation not earlier than the ninetieth (90th) day prior to such special meeting nor later than the close of business on the later of (i) the sixtieth (60th) day prior to such special meeting, or (ii) the tenth (10th) day following the day on which public announcement is first made of the date of the special meeting and of the nominees proposed by the Board of Directors to be elected at such meeting. - 6 -

D. General. (1) Only such persons who are nominated in accordance with the procedures set forth in this Section 6 shall be eligible to serve as directors of the Corporation and only such business brought before a meeting of the stockholders in accordance with the procedures set forth in this Section 6 shall be conducted at such meeting. Except as otherwise provided by law, the Restated Articles of Incorporation or these Bylaws, the chairman of the meeting shall have the power and duty to determine whether a nomination or any business proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with the procedures set forth in these Bylaws and, if any proposed nomination or business is not in compliance herewith, to declare that such defective proposal or nomination shall be disregarded. (2) For purposes of this Section 6, “public announcement” shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act. (3) Notwithstanding the foregoing provisions of this Section 6, a stockholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth herein. Nothing in this Section 6 shall be deemed to affect any rights (i) of the stockholders of the Corporation to request inclusion of proposals in the Corporation’s proxy statement pursuant to Rule 14a-8 under the Exchange Act or (ii) of the holders of any series of Preferred Stock then outstanding to elect directors under specified circumstances. (4) In addition to the requirements set forth elsewhere in these Bylaws, to be eligible to be a nominee for election or reelection as a director of the Corporation, a person must deliver, in accordance with the time periods prescribed for delivery of notice under Section 6(C) of this Article I, to the Secretary at the principal executive office of the Corporation a completed and signed questionnaire with respect to the background and qualification of such person and the background of any other person or entity on whose behalf the nomination is being made (which questionnaire shall be provided by the Secretary upon written request) and a written representation and agreement (in the form provided by the Secretary upon written request) that such person (i) is not and will not become a party to (A) any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any other person or entity as to how such person, if elected as a director of the Corporation, will act or vote on any issue or question (a “Voting Commitment”) that has not been disclosed to the Corporation or (B) any Voting Commitment that could limit or interfere with such person’s ability to comply, if elected as a director of the Corporation, with such person’s fiduciary duties under applicable law, (ii) is not and will not become a party to any agreement, arrangement or understanding with any other person or entity, other than the Corporation, with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director of the Corporation, and (iii) in such person’s individual capacity and on behalf of any other person or entity on whose behalf the nomination is being made, would be in compliance, if elected as a director of the Corporation, and will comply with, applicable law and all applicable publicly disclosed corporate governance, code - 7 -

of conduct and ethics, conflict of interest, corporate opportunities, trading and any other policies and guidelines of the Corporation applicable to directors. (5) Notwithstanding the foregoing provisions of this Section 6, unless otherwise required by law, if a stockholder of the Corporation (or a qualified representative of the stockholder) does not appear in person at the annual or special meeting of the stockholders of the Corporation to make its nomination or propose any other matter, such nomination shall be disregarded and such other proposed matter shall not be transacted, even if proxies in respect of such vote have been received by the Corporation. For purposes of this Article I, to be considered a “qualified representative” of the stockholder, a person must be (i) a duly authorized officer, manager or partner of such stockholder or (ii) must be authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy at the meeting of the stockholders, and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the commencement of the meeting of the stockholders. Section 7. Proxies and Voting. At any meeting of the stockholders, every stockholder entitled to vote may vote (i) in person or (ii) by proxy authorized by an instrument, in writing or by a transmission, as permitted by law and the Restated Articles of Incorporation and filed in accordance with the procedure established for the meeting by the chairman of the meeting. Any copy, facsimile telecommunication or other reliable reproduction of the writing or transmission may be substituted or used in lieu of the original writing or transmission for any and all purposes under this Section 7 for which the original writing or transmission could be used, provided, however, that such copy, facsimile telecommunication or other reproduction shall be a complete reproduction of the entire original writing or transmission. All voting, including on the election of directors but excepting where otherwise required by law, may be by voice vote. Any vote not taken by voice shall be taken by written ballots, each of which shall state the name of the stockholder or proxy voting and such other information as may be required by law, the Restated Articles of Incorporation and the procedure established for the meeting by the chairman of the meeting. The Corporation may, and to the extent required by law, shall, in advance of any meeting of the stockholders, appoint one or more inspectors to act at the meeting and make a written report thereof. The Corporation may designate one or more persons as alternate inspectors to replace any inspector who fails to act. If no inspector or alternate is able to act at a meeting of the stockholders, the person presiding at the meeting may, and to the extent required by law, shall, appoint one or more inspectors to act at the meeting and make a written report thereof. Each inspector, before entering upon the discharge of his duties, shall take and sign an oath to faithfully execute the duties of an inspector with strict impartiality and according to the best of his ability. Every vote taken by written ballots shall be counted by a duly appointed inspector or inspectors. Except as otherwise provided in the terms of any class or series of Preferred Stock of the Corporation, (i) all elections of directors of the Corporation at any meeting of the stockholders shall - 8 -

be determined by a plurality of the votes cast, and (ii) except as otherwise required by law, these Bylaws, the Restated Articles of Incorporation or the rules of any stock exchange upon which the Corporation’s securities are listed, all other matters proposed at any meeting of the stockholders shall be determined by a majority of the votes cast affirmatively or negatively. Section 8. Action Without Meeting. Any action required or permitted to be taken by the stockholders of the Corporation may be effected only at a duly called annual or special meeting of the stockholders of the Corporation and may not be effected by written consent. Section 9. Stock List. A complete list of stockholders entitled to vote at any meeting of the stockholders, arranged in alphabetical order for each class or series of the shares of capital stock of the Corporation and showing the address of each such stockholder and the number of shares registered in his or her name, shall be open to the examination of any such stockholder for a period of at least ten (10) days prior to the meeting in the manner provided by law. The stock list shall also be open to the examination of any stockholder during the whole time of the meeting as provided by law. Such list shall presumptively determine the identity of the stockholders entitled to examine such stock list and to vote at the meeting and the number of shares held by each of them. Any alleged mistake in such list will be examined by the Corporation within thirty (30) days after being notified thereof and any mistake discovered will be corrected by the Corporation in due course, without affecting the aforementioned presumption. ARTICLE II - BOARD OF DIRECTORS Section 1. General Powers, Number, Election, Tenure, Qualification and Chairman. A. The business and affairs of the Corporation shall be managed by or under the direction of its Board of Directors. B. Subject to the rights of the holders of any series of Preferred Stock then outstanding to elect additional directors under specified circumstances, the number of directors shall be fixed from time to time exclusively by the Board of Directors pursuant to a resolution adopted by a majority of the Whole Board. - 9 -

C. Subject to the rights of the holders of shares of any series of Preferred Stock then outstanding to elect additional directors under specified circumstances, the Board of Directors of the Corporation shall be divided into three classes, with the term of office of the first class to expire at the first annual meeting of the stockholders following the initial classification of directors and until their successors are duly elected and qualified, the term of office of the second class to expire at the second annual meeting of the stockholders following the initial classification of directors and until their successors are duly elected and qualified, and the term of office of the third class to expire at the third annual meeting of the stockholders following the initial classification of directors and until their successors are duly elected and qualified. At each annual meeting of the stockholders, directors elected to succeed those directors whose terms expire, other than directors elected by the holders of any series of Preferred Stock, shall be elected for a term of office to expire at the third succeeding annual meeting of the stockholders after their election and until their successors are duly elected and qualified, and if authorized by a resolution of the Board of Directors, directors may be elected to fill any vacancy on the Board of Directors, regardless of how such vacancy was created. D. The Chairman of the Board of Directors and any Vice Chairman appointed to act in the absence of the Chairman, if any, shall be elected by and from the Board of Directors. The Chairman shall preside at all meetings of the Board of Directors at which he or she is present and shall have such authority and perform such duties as may be prescribed by these Bylaws or from time to time be determined by the Board of Directors. Section 2. Vacancies and Newly Created Directorships. Subject to the rights of the holders of any series of Preferred Stock then outstanding, newly created directorships resulting from any increase in the authorized number of directors or any vacancies in the Board of Directors resulting from death, resignation, retirement, disqualification, removal from office or other cause shall, unless otherwise required by law, by the Restated Articles of Incorporation or by resolution of the Board of Directors, be filled only by a majority vote of the directors then in office even though less than a quorum, or by a sole remaining director, and not by the stockholders of the Corporation, and directors so chosen shall serve for a term expiring at the annual meeting of the stockholders at which the term of office of the class to which they have been chosen expires and until such director’s successor shall have been duly elected and qualified. No decrease in the authorized number of directors shall shorten the term of any incumbent director. In the event of a vacancy in the Board of Directors, the remaining directors, except as otherwise provided by law, the Restated Articles of Incorporation or these Bylaws, may exercise the powers of the full Board of Directors until the vacancy is filled. - 10 -

Section 3. Resignation and Removal. Any director may resign at any time upon notice given in writing or by electronic transmission to the Corporation at its principal executive office or to the Chairman of the Board, Chief Executive Officer, President or Secretary. Such resignation shall be effective upon receipt unless it is specified to be effective at some other time or upon the happening of some other event. Subject to the rights of the holders of any series of Preferred Stock then outstanding, any director, or the entire Board of Directors, may be removed from office at any time only for cause and only by the affirmative vote of the holders of at least eighty percent (80%) of the voting power of all of the then outstanding shares of capital stock of the Corporation entitled to vote at an election of directors, voting together as a single class. Section 4. Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, or the means of remote communications, if any, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. A notice of each regular meeting shall not be required. Section 5. Special Meetings. Special meetings of the Board of Directors may be called by the Chairman of the Board of Directors or the Chief Executive Officer, and shall be called by the Secretary if requested by a majority of the Whole Board, and shall be held at such place, or via the means of remote communications, if any, on such date, and at such time as the Secretary shall reasonably fix. Notice of the place, date, and time of each such special meeting shall be given to each director by whom it is not waived by mailing written notice not less than five (5) days before the meeting or orally, by telegraph, telex, cable, telecopy or electronic transmission given not less than twenty-four (24) hours before the meeting. Unless otherwise indicated in the notice thereof, any and all business may be transacted at a special meeting. Section 6. Quorum. At any meeting of the Board of Directors, a majority of the Whole Board shall constitute a quorum for all purposes. If a quorum shall fail to attend any meeting, a majority of those present may adjourn the meeting to another place, date, or time, without further notice or waiver thereof. Section 7. Action by Consent. Unless otherwise restricted by law or these Bylaws, any action required or permitted to be taken at any meeting of the Board of Directors may be taken without a meeting, if all members of the Board consent thereto in writing or by electronic transmission. Each such writing or electronic transmission shall be filed with the minutes of proceedings of the Board of Directors. Such filing shall be in paper - 11 -

form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form. Section 8. Action by Meeting. Members of the Board of Directors or of any committee designated by the Board of Directors may participate in a meeting of the Board of Directors or such committee by any means of electronic or telephonic communications, videoconferencing, teleconferencing or other available technology permitted under the NRS (including, without limitation, a telephone conference or similar method of communication by which all individuals participating in the meeting can hear each other). If any conferencing means are utilized, the Corporation shall, to the extent required under the NRS, implement reasonable measures to (a) verify the identity of each person participating in the conference through such means as a director or member of the committee, as the case may be, and (b) provide the directors or members of the committee a reasonable opportunity to participate in the conference and to vote on matters submitted to the directors or members of the committee, including an opportunity to communicate, and to read or hear the proceedings of the conference in a substantially concurrent manner with such proceedings. Participation in a meeting pursuant to this Section 8 constitutes presence in person at the meeting. Section 9. Conduct of Business. At any meeting of the Board of Directors, business shall be transacted in such order and manner as the Board of Directors may from time to time determine and publicized among all directors, and all matters shall be determined by the vote of a majority of the directors present, except as otherwise provided herein, under the Restated Articles of Incorporation or required by law. Section 10. Powers. The Board of Directors may, except as otherwise required by law, exercise all such powers and do all such acts and things as may be exercised or done by the Corporation, including, without limiting the generality of the foregoing, the unqualified power: (1) To declare distributions (including dividends) from time to time in accordance with law; (2) To purchase or otherwise acquire any property, rights or privileges on such terms as it shall determine; (3) To authorize the creation, making and issuance, in such form as it may determine, of written obligations of every kind, negotiable or non-negotiable, secured or unsecured, to borrow funds and guarantee obligations, and to do all things necessary in connection therewith; - 12 -

(4) To remove any officer of the Corporation with or without cause, and from time to time to devolve the powers and duties of any officer upon any other person for the time being; (5) To confer upon any officer of the Corporation the power to appoint, remove and suspend subordinate officers, employees and agents; (6) To adopt from time to time such stock, option, stock purchase, bonus or other compensation plans for directors, officers, employees and agents of the Corporation and its subsidiaries; (7) To adopt from time to time such insurance, retirement, and other benefit plans for directors, officers, employees and agents of the Corporation and its subsidiaries; and, (8) To adopt from time to time regulations, not inconsistent with these Bylaws, for the management of the Corporation’s business and affairs. Section 11. Compensation of Directors. Unless otherwise restricted by law, the Board of Directors shall have the authority to fix the compensation of the directors. The directors may be paid their expenses, if any, of attendance at each meeting of the Board of Directors and may be paid a fixed sum for attendance at each meeting of the Board of Directors or paid a stated salary or paid other compensation as director. No such payment shall preclude any director from serving the Corporation in any other capacity and receiving compensation therefor. Members of special or standing committees may receive compensation for attending committee meetings. ARTICLE III - COMMITTEES Section 1. Committees of the Board of Directors. The Board of Directors may from time to time designate committees of the Board, with such lawfully delegable powers and duties as it thereby confers. For those committees, the Board of Directors may (i) elect a director or directors to serve as the member or members of such committees and may designate other directors as alternate members who may replace any absent or disqualified member of any such committee and (ii) may determine the procedural rules for any such committee’s meeting and conducting of business. Any such committee, to the extent provided in the resolution of the Board of Directors, shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and affairs of the Corporation to the fullest extent authorized by law. In the absence or disqualification of any member of any committee and any alternate member in his or her place, the member or members of the committee present at the meeting and not disqualified from voting, whether or not he or she or they constitute a quorum of such - 13 -

committee, may by unanimous vote appoint another member of the Board of Directors to act in the place of the absent or disqualified member. Section 2. Conduct of Business. Each committee may determine the procedural rules for meeting and conducting its business and shall act in accordance therewith, except as otherwise determined by the Board of Directors, provided herein or required by law. Adequate provision shall be made for notice to members of all meetings; one-third (1/3) of the members of any committee shall constitute a quorum unless the committee shall consist of one (1) or two (2) members, in which event one (1) member shall constitute a quorum; and all matters shall be determined by a majority vote of the members present. Action may be taken by any committee without a meeting if all members thereof consent thereto in writing or by electronic transmission. Each such writing or electronic transmission shall be filed with the minutes of the proceedings of such committee. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form. ARTICLE IV - OFFICERS Section 1. Enumeration. The officers of the Corporation shall consist of a Chief Executive Officer, President, Treasurer, Secretary and such other officers as the Board of Directors or the Chief Executive Officer may determine, including, but not limited to, a Chief Financial Officer, one or more Vice Presidents, Assistant Treasurers and Assistant Secretaries. The salaries of officers elected by the Board of Directors shall be fixed from time to time by the Board of Directors or by such officers as may be designated by resolution of the Board of Directors. Section 2. Election. The Chief Executive Officer, President, Treasurer and the Secretary shall be elected annually by the Board of Directors at their first meeting following the immediately-preceding annual meeting of the stockholders. The Board of Directors or the Chief Executive Officer, may, from time to time, elect or appoint such other officers as it or he or she may determine, including, but not limited to, a Chief Financial Officer, one or more Vice Presidents, Assistant Treasurers and Assistant Secretaries. Section 3. Qualification. No officer needs be a director. Two or more offices may be held by any one person. Section 4. Tenure and Removal. Each officer elected or appointed by the Board of Directors shall hold office until the first meeting of the Board of Directors following the next annual meeting of the stockholders and until his or her successor is elected or appointed and qualified, unless he or she dies, resigns, is removed or - 14 -

becomes disqualified or a shorter term is specified in the vote electing or appointing said officer. Each officer appointed by the Chief Executive Officer shall hold office until his or her successor is elected or appointed and qualified, unless he or she dies, resigns, is removed or becomes disqualified or a shorter term is specified by any agreement or other instrument appointing such officer. Any officer may resign by notice given in writing or by electronic transmission of his or her resignation to the Chief Executive Officer, the President, or the Secretary, or to the Board of Directors at a meeting of the Board. Such resignation shall be effective upon receipt unless it is specified to be effective at some other time or upon the happening of some other event. Any officer elected or appointed by the Board of Directors may be removed from office with or without cause only by vote of a majority of the directors then in office even though less than a quorum or by a sole remaining director. Any officer appointed by the Chief Executive Officer may be removed with or without cause by the Chief Executive Officer, or by vote of a majority of the directors then in office even though less than a quorum, or by a sole remaining director. Section 5. Chief Executive Officer. The Chief Executive Officer shall be the chief executive officer of the Corporation and shall, subject to the direction of the Board of Directors, have the responsibility for the general management and control of the business and affairs of the Corporation. Unless otherwise provided by resolution of the Board of Directors, in the absence of the Chairman of the Board, the Chief Executive Officer shall preside at all meetings of the stockholders and, if the Chief Executive Officer is a director, at all meetings of the Board of Directors. The Chief Executive Officer shall have general supervision and direction of all of the other officers, employees and agents of the Corporation, other than the Chairman of the Board or any Vice Chairman. The Chief Executive Officer shall have the power and authority to determine the duties of all officers, employees and agents of the Corporation and determine the compensation of any officers (except those whose compensation is established by the Board of Directors), employees and agents. The Chief Executive Officer is expressly authorized to sign all stock certificates, contracts and other instruments for and on behalf of the Corporation unless otherwise directed by the Board of Directors. Section 6. President. Except for meetings at which the Chief Executive Officer or the Chairman of the Board, if any, presides, the President shall, if present, preside at all meetings of the stockholders, and if a director, at all meetings of the Board of Directors. The President shall, subject to the control and direction of the Chief Executive Officer and the Board of Directors, have and perform such powers and duties as may be prescribed by these Bylaws or from time to time be determined by the Chief Executive Officer or the Board of Directors. The President shall have power to sign all stock certificates, contracts and other instruments for and on behalf of the Corporation to the extent authorized by the Board of Directors. In the absence of a Chief Executive Officer, the President shall be the chief executive officer of the Corporation and shall, subject to the direction of the Board of Directors, have responsibility for the general management and control of the business and affairs of the Corporation, have general supervision and direction of all of the officers, employees and agents of the Corporation, other than the Chairman of the Board or any Vice - 15 -

Chairman, and have all other powers and duties of the Chief Executive Officer as set forth in this Article IV. Section 7. Vice Presidents. The Vice Presidents, if any, in the order of their election (if otherwise directed by the Board of Directors or the Chief Executive Officer, in such other order as the Board of Directors or the Chief Executive Officer may determine), shall have the powers and duties of the President as set forth in this Article IV whenever the President is absent or unable to act. The Vice Presidents, if any, shall also have such other powers and duties as may from time to time be determined by the Board of Directors or the Chief Executive Officer. Section 8. Chief Financial Officer, Treasurer and Assistant Treasurers. The Chief Financial Officer shall, subject to the control and direction of the Board of Directors and the Chief Executive Officer, be the chief financial officer of the Corporation and shall have and perform such powers and duties as may be prescribed in these Bylaws or be determined from time to time by the Board of Directors and the Chief Executive Officer. All property of the Corporation in the custody of the Chief Financial Officer shall be subject at all times to the inspection and control of the Board of Directors and the Chief Executive Officer. The Chief Financial Officer shall have the responsibility for maintaining the financial records of the Corporation. The Chief Financial Officer shall make such disbursements of the funds of the Corporation to the extent authorized by law, the Restated Articles of Incorporation and the Board of Directors and shall render from time to time an account of all such transactions and of the financial condition of the Corporation whenever requested by the Board of Directors or the Chief Executive Officer. Unless the Board of Directors has designated another person as the Corporation’s Treasurer, the Chief Financial Officer shall also be the Treasurer. Unless otherwise directed by the Board of Directors, the Treasurer (if different than the Chief Financial Officer) and each Assistant Treasurer (whenever the Treasurer is absent or unable to act and in such other order as the Board of Directors or the Chief Executive Officer may determine), if any, shall have and perform the powers and duties of the Chief Financial Officer whenever the Chief Financial Officer is absent or unable to act, and may at any time exercise such of the powers of the Chief Financial Officer. Section 9. Secretaries. Unless otherwise directed by the Board of Directors, the Secretary and, in his or her absence, an Assistant Secretary, shall attend all meetings of the directors and the stockholders and shall record all votes of the Board of Directors and stockholders and produce minutes of the proceedings at such meetings. The Secretary and, in his or her absence, an Assistant Secretary, shall notify the directors and the stockholders of their meetings, and shall also have such other powers and duties as may from time to time be determined by the Board of Directors. In the absence of the Secretary and any Assistant Secretary at any meeting of directors or stockholders, a temporary secretary may be appointed by the chairman of that meeting. Section 10. Action with Respect to Securities of Other Corporations. - 16 -

Unless otherwise directed by the Board of Directors, the Chief Executive Officer or the President is expressly authorized to (i) vote for and on behalf of the Corporation, in person or by proxy, at any meeting of the stockholders of any other corporation, in which this Corporation holds securities and (ii) exercise any and all other rights and powers, which this Corporation possesses by reason of its ownership of securities in such other corporation, for and on behalf of this Corporation, in person or by proxy. ARTICLE V - STOCK Section 1. Certificated and Uncertificated Stock. (a) The shares of the Corporation’s capital stock may be certificated or uncertificated, as provided under the NRS, and shall be entered in the books of the Corporation and registered as they are issued. Any certificates representing shares of stock shall be in such form as the Board of Directors shall prescribe and shall certify the number and class and series of the shares of capital stock of the Corporation owned by the stockholder. Any certificates issued to a stockholder of the Corporation shall bear the name of the Corporation and shall be signed by the Chairman of the Board of Directors, or the President or a Vice President, and by the Treasurer or an Assistant Treasurer, or the Secretary or an Assistant Secretary. Any or all of the signatures on the certificate may be by facsimile. In the event that any officer who has signed, or whose facsimile signatures has been used on any certificate or certificates for stock cease to be an officer because of death, resignation or other reason, before the certificate or certificates for stock have been delivered by the Corporation, the certificate or certificates may nevertheless be adopted by the Corporation and be issued and delivered as though the person who signed the certificate or certificates, or whose facsimile signature has been used thereon, had not ceased to be an officer of the Corporation. (b) Within a reasonable time after the issuance or transfer of uncertificated shares, the Corporation shall send to the registered owner thereof a written statement certifying the number and class (and the designation of the series, if any) of the shares owned by such stockholder in the Corporation and any restrictions on the transfer or registration of such shares imposed by the Restated Articles of Incorporation, these Bylaws, any agreement among stockholders or any agreement between the stockholders and the Corporation, and, at least annually thereafter, the Corporation shall provide to such stockholders of record holding uncertificated shares, a written statement confirming the information contained in such written statement previously sent. Except as otherwise expressly provided by the NRS, the rights and obligations of the stockholders of the Corporation shall be identical whether or not their shares of stock are represented by certificates. - 17 -

Section 2. Transfers of Stock. Transfers of shares of capital stock of the Corporation shall be made only (i) by entering upon the stock-transfer books of the Corporation or (ii) by transfer agents designated to transfer shares of capital stock of the Corporation. Except where a certificate is issued in accordance with Section 4 of this Article V or in the case of uncertificated shares, an outstanding certificate for the number of shares involved shall be surrendered for cancellation before a new certificate is issued therefor. Section 3. Record Date. With respect to notice (i) of any meeting of the stockholders, or (ii) for the stockholders to receive payment of any dividend or other distribution or allotment of any rights or (iii) for the stockholders to exercise any rights in respect of any change, conversion or exchange of the shares of the Corporation’s capital stock or (iv) for any other lawful purpose, the Board of Directors may fix a record date, provided, however, that such record date (a) shall not precede the date on which the resolution fixing the record date is adopted and (b) shall not be more than sixty (60) nor less than ten (10) days before the date of any meeting of the stockholders, nor more than sixty (60) days prior to the time for such other action as hereinbefore described (receiving payments and exercising rights by the stockholders). If the Board of Directors so fixes a date, such date shall also be the record date for determining the stockholders of record entitled to vote at such meeting, unless the Board of Directors at the time it fixes such record date directs that a later date on or before the date of the meeting shall be the date for making such determination. If no record date is fixed by the Board of Directors, (i) the record date for determining stockholders of record entitled to notice of and to vote at a meeting of the stockholders shall be at the close of business on the day immediately preceding the day on which notice is given or, if notice is waived, at the close of business on the day immediately preceding the day on which the meeting is held, and, (ii) the record date, for determining stockholders of record entitled to receive payment of any dividend or other distribution or allotment of rights or to exercise any rights of change, conversion or exchange of the shares of the Corporation’s capital stock or for any other purpose, shall be at the close of business on the day on which the Board of Directors adopts a resolution relating thereto. A determination of stockholders of record entitled to notice of or to vote at a meeting of the stockholders shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record date for determination of the stockholders of record entitled to vote at the adjourned meeting, and in such case shall also fix as the record date for the stockholders of record entitled to notice of such adjourned meeting the same or an earlier date as that fixed for determination of the stockholders of record entitled to vote in accordance with the foregoing provisions of this Section 3 at the adjourned meeting. Section 4. Lost, Stolen or Destroyed Certificates. In the event of the loss, theft or destruction of any certificate of shares of capital stock of the Corporation, the Corporation may issue a new certificate of shares of capital stock or uncertificated shares in place of any certificate previously issued by the Corporation pursuant to such regulations as - 18 -

the Board of Directors may establish concerning proof of such loss, theft or destruction and pledging of a satisfactory bond or bonds of indemnity. Section 5. Regulations. The issue, transfer, conversion and registration of certificates of the shares of capital stock shall be governed by these Bylaws and such other regulations as the Board of Directors may establish. ARTICLE VI - NOTICES Section 1. Notices. If mailed, notice to the stockholders shall be deemed given when deposited in the mail, postage prepaid, directed to the stockholder at such stockholder’s address as it appears on the records of the Corporation. Without limiting the manner by which notice otherwise may be given effectively to the stockholders as permitted by law, any notice to the stockholders may be given by electronic transmission in the manner permitted under NRS 78.370 and NRS Chapter 75. Section 2. Waiver of Notice. A written waiver of any notice, signed by a stockholder or director, or waiver by electronic transmission by such person or entity, whether before or after the time of the event for which notice is to be given, shall be deemed equivalent to the notice required to be given to such person or entity. Neither the business nor the purpose of any meeting need be specified in such a waiver. Attendance at any meeting shall constitute waiver of notice, except for attendance for the express purpose of objecting, at the beginning of the meeting, to the election or the transaction of business at such meeting because the meeting is not lawfully called or convened. ARTICLE VII -INDEMNIFICATION OF DIRECTORS AND OFFICERS Section 1. Right to Indemnification. Each person who was or is made a party or is threatened to be made a party to or is otherwise involved (including, without limitation, as a witness) in any action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he is or was a director or an officer of the Corporation or is or was serving at the request of the Corporation as a director, officer, or trustee of another corporation, or of a partnership, joint venture, trust or other enterprise, including service with respect to an employee benefit plan (hereinafter an “Indemnitee”), whether the basis of such action, suit or proceeding is alleged action in an official capacity as a director, officer or trustee or in any other capacity while serving as a director, officer or trustee, shall be indemnified and held harmless by the Corporation to the fullest extent permitted by law, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits - 19 -

the Corporation to provide broader indemnification rights than such law permitted the Corporation to provide prior to such amendment), against all expense, liability and loss (including attorneys’ fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred or suffered by such Indemnitee in connection therewith; provided, however, that, except as provided in Section 3 of this Article VII with respect to proceedings to enforce rights to indemnification or an advancement of expenses or as otherwise required by law, the Corporation shall not be required to indemnify or advance expenses to any such Indemnitee in connection with an action, suit or proceeding (or part thereof) initiated by such Indemnitee unless such action, suit or proceeding (or part thereof) was authorized by the Board of Directors of the Corporation. Section 2. Right to Advancement of Expenses. In addition to the right to indemnification conferred in Section 1 of this Article, an Indemnitee shall also have the right to be paid by the Corporation the expenses (including attorney’s fees) incurred in defending any such proceeding in advance of its final disposition; provided, however, that, if the NRS then requires, an advancement of expenses incurred by an Indemnitee in his capacity as a director or officer (and not in any other capacity in which service was or is rendered by such Indemnitee, including, without limitation, service to an employee benefit plan) shall be made only upon delivery to the Corporation of an undertaking, by or on behalf of such Indemnitee, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision from which there is no further right to appeal that such Indemnitee is not entitled to be indemnified for such expenses under this Section 2. Section 3. Right of Indemnitees to Bring Suit. If a claim under Section 1 or 2 of this Article VII is not paid in full by the Corporation within sixty (60) days after a written claim has been received by the Corporation, except in the case of a claim for an advancement of expenses, in which case the applicable period shall be twenty (20) days, the Indemnitee may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim. If successful in whole or in part in any such suit, or in a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Indemnitee shall also be entitled to be paid the expenses of prosecuting or defending such suit. In any suit brought by the Indemnitee to enforce a right to indemnification hereunder (but not in a suit brought by the Indemnitee to enforce a right to an advancement of expenses) it shall be a defense that the Indemnitee has not met any applicable standard for indemnification set forth in the NRS. In any suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Corporation shall be entitled to recover such expenses upon a final adjudication that, the Indemnitee has not met any applicable standard for indemnification set forth in the NRS. Neither the failure of the Corporation (including its directors who are not parties to such action, a committee of such directors, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such suit that indemnification of the Indemnitee is proper in the circumstances because the Indemnitee has met the applicable standard of conduct set forth in the NRS, nor an actual determination by the Corporation (including its directors who are not parties to such action, a committee of such directors, independent legal counsel, or its stockholders) that the Indemnitee has not met such applicable standard of conduct, shall create a presumption that the - 20 -

Indemnitee has not met the applicable standard of conduct or, in the case of such a suit brought by the Indemnitee, be a defense to such suit. In any suit brought by the Indemnitee to enforce a right to indemnification or to an advancement of expenses hereunder, or brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the Indemnitee is not entitled to be indemnified, or to such advancement of expenses, under this Article VII or otherwise shall be on the Corporation. Section 4. Non-Exclusivity of Rights. The rights to indemnification and to the advancement of expenses conferred in this Article IV shall not be exclusive of any other right which any person may have or hereafter acquire under any statute, the Restated Certificate of Incorporation as amended from time to time, these Bylaws, any agreement, any vote of stockholders or directors as permitted by the NRS or otherwise. Section 5. Insurance. The Corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of (i) the Corporation or (ii) another corporation, partnership, joint venture, trust or other enterprise, against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability or loss under the NRS. Section 6. Indemnity Agreements. The Corporation may enter into indemnity agreements from time to time (i) with the persons who are members of its Board of Directors, (ii) with such officers, employees and agents of the Corporation and (iii) with such officers, directors, employees and agents of subsidiaries or affiliates of the Corporation. Such indemnity agreements may provide in substance that the Corporation will indemnify such persons to the full extent as contemplated by this Article VII or permitted by law and the Restated Articles of Incorporation, and may include any other substantive or procedural provisions regarding indemnification as are not inconsistent with the laws of the State of Nevada. The provisions of such indemnity agreements shall prevail to the extent that they limit or condition or differ from the provisions of this Article VII. Section 7. Indemnification of Employees and Agents of the Corporation. The Corporation may, to the extent authorized from time to time by the Board of Directors, grant rights to indemnification and to the advancement of expenses to any employee or agent of the Corporation to the fullest extent of the provisions of this Article VII with respect to the indemnification and advancement of expenses of directors and officers of the Corporation. Section 8. Nature of Rights. The rights conferred upon Indemnitees in this Article VII shall be contract rights and such rights shall continue as to an Indemnitee who has ceased to be a director, officer, employee, agent or trustee and shall inure to the benefit of the Indemnitee’s heirs, executors and administrators. - 21 -

Any amendment, alteration or repeal of this Article VII that adversely affects any right of an Indemnitee or its successors shall be prospective only and shall not limit, eliminate, or impair any such right with respect to any action, suit or proceeding involving any occurrence or alleged occurrence of any action or omission to act that took place prior to such amendment, alteration or repeal. Section 9. Severability. If any word, clause, provision or provisions of this Article VII shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (i) the validity, legality and enforceability of the remaining provisions of this Article VII (including, without limitation, each portion of any section of this Article containing any such provision held to be invalid, illegal or unenforceable, that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (ii) to the fullest extent possible, the provisions of this Article VII (including, without limitation, each such portion of any section of this Article VII containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable. ARTICLE VIII - CERTAIN TRANSACTIONS Section 1. Transactions with Interested Parties. No contract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other corporation, partnership, association, or other organization in which one or more of its directors or officers are directors or officers, or have a financial interest, shall be void or voidable (i) solely for this reason, or (ii) solely because the director or officer is present at or participates in the meeting of the Board or committee thereof, which authorizes the contract or transaction, or (iii) solely because the votes of such director or officer are counted for such purpose, if: (a) The material facts as to his or her relationship or interest and as to the contract or transaction are disclosed to or are known to the Board of Directors or the committee, and the Board or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) The material facts as to his or her relationship or interest and as to the contract or transaction are disclosed or are known to the stockholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the stockholders; or (c) The contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the stockholders. - 22 -

Section 2. Quorum. Interested directors or stockholders, as applicable, may be counted in determining the presence of a quorum (i) at the meeting of the Board of Directors or of a committee which authorizes the contract or transaction, or (ii) at the meeting of the stockholders which approves the contract or transaction. ARTICLE IX - MISCELLANEOUS Section 1. Facsimile Signatures. In addition to the provisions specifically authorizing use of facsimile signatures in these Bylaws, facsimile signatures of any officer or officers of the Corporation may be used whenever and as authorized by the Board of Directors or a committee thereof. Section 2. Corporate Seal. The Board of Directors may provide a suitable seal, containing the name of the Corporation, which seal shall be in the charge of the Secretary. If and when so directed by the Board of Directors or a committee thereof, duplicates of the seal may be kept and used by the Treasurer or by an Assistant Secretary or Assistant Treasurer. Section 3. Reliance upon Books, Reports and Records. Without limitation of any provision of the NRS (including NRS 78.138), each director of the Corporation, each member of any committee designated by the Board of Directors, and each officer of the Corporation shall, in the performance of his or her duties, be entitled to rely, and be fully protected in relying upon the books of account or other records of the Corporation and upon such information, opinions, reports or statements presented to the Corporation by any of its agents, officers or employees, or committees of the Board of Directors, or by any other person as to matters which such director, committee member or officer reasonably believes are within such other person’s professional or expert competence, but a director or officer is not entitled to rely on such information, opinions, reports, books of account or statements if the director or officer has knowledge concerning the matter in question that would cause reliance thereon to be unwarranted. Section 4. Fiscal Year. Except as otherwise determined by the Board of Directors from time to time, the fiscal year of the Corporation shall end on the last day of December of that year. Section 5. Time Periods. - 23 -

In applying any provision of these Bylaws which requires that an act be done or not be done during a period of a specified number of days prior and/or following an event, calendar days shall be used, the day of the doing of the act shall be excluded, and the day of the event shall be included. Section 6. Pronouns. Whenever the context may require, any pronouns used in these Bylaws shall include the corresponding masculine, feminine or neuter forms. Section 7. Interpretation. The Board of Directors shall have the power to interpret all of the terms and provisions of these Bylaws, which interpretation shall be conclusive. ARTICLE XI - AMENDMENTS In furtherance and not in limitation of the powers conferred by law and the Restated Articles of Incorporation, the Board of Directors is expressly authorized to adopt, amend and repeal these Bylaws, but subject to the power of the holders of the shares of capital stock of the Corporation to adopt, amend or repeal these Bylaws; provided, however, that, with respect to the power of such holders, notwithstanding any other provision of these Bylaws or any provision of the NRS which might otherwise permit a lesser vote or no vote, and in addition to the affirmative vote of the holders of any class or series of the shares of capital stock of the Corporation required by law, the Restated Articles of Incorporation, these Bylaws or any Preferred Stock, the affirmative vote of the holders of at least eighty percent (80%) of the voting power of all of the then outstanding shares of capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class, shall be required to adopt, amend or repeal any provision of these Bylaws. - 24 -

GESCHÄFTSFÜHRER- MANAGING DIRECTOR SERVICE DIENSTVERTRAG AGREEMENT zwischen der between Pieris Pharmaceuticals GmbH, Lise-Meitner-Str. 30, 85354 Freising, Deutschland, (die „Gesellschaft"), hier Germany, (the „Company"), here vertreten durch ihren Gesellschafter represented by its shareholder Pieris Pharmaceuticals, Inc. (der „Gesellschafter"), dieser vertreten (the „Shareholder"), here acting durch den Linksunterzeichner through the left signer Stephen S. Yoder, J.D. einerseits, und on one side, and Dr. Hitto Kaufmann Stuttgarter Strasse 77 70469 Stuttgart (der „Geschäftsführer") andererseits. (the „Managing Director") on the other side. Präambel Preamble Durch Beschluss der By resolution of the shareholder´s Gesellschafterversammlung vom 19. meeting dated February 19th, 2019 Mr. Februar 2019 wurde Herr Dr. Hitto Dr. Hitto Kaufmann was appointed Kaufmann zum Geschäftsführer der Managing Director. Gesellschaft bestellt. Aus diesem On this basis, the parties shall enter as Grunde vereinbaren die Parteien mit of October 1, 2019 or earlier (the Wirkung zum 1. Oktober 2019 oder „Effective Date") into this Managing früher (der Geschäftsführer- „Stichtag") Director Service Agreement: folgenden Dienstvertrag: 1 Aufgaben und Pflichten 1 Position and Scope of Duties 1.1 Der Geschäftsführer ist Geschäftsführer 1.1 The Managing Director shall be a der Gesellschaft mit dem Titel „Senior managing director of the Company with Vice President, Chief Scientific Officer the title of „Senior Vice President, (CSO)“. Er vertritt die Gesellschaft nach Chief Scientific Officer (CSO)“. He acts Maßgabe des Gesellschaftsvertrages on behalf of the Company in und der Bestimmungen der zuständigen accordance with both the Company's Gesellschaftsorgane. Articles and the directions of the competent Company’s bodies. 1.2 Der Geschäftsführer führt seine 1.2 The Managing Director shall perform Aufgaben nach Maßgabe der Gesetze, his duties in accordance with the law, Page 1 of 20

des Gesellschaftsvertrages, einer the Articles of the Company, any etwaigen Geschäftsordnung und der management rules, and the directions Bestimmungen der zuständigen of the competent Company’s bodies, Gesellschaftsorgane, im Übrigen but otherwise independently and on his selbständig und eigenverantwortlich. own authority. 1.3 Die Gesellschaft kann jederzeit weitere 1.3 The Company may at any time appoint Geschäftsführer bestellen, additional managing directors, remove Geschäftsführer abberufen, die managing directors from Office, Vertretungs- oder Geschäftsführungs- change both the power-of-attorney and befugnisse aller oder einzelner the power-of-management of all or of Geschäftsführer ändern oder die interne individual managing directors, or re- Geschäftsverteilung unter den organize the infernal allocation of Geschäftsführern neu ordnen. responsibilities among the managing directors. 1.4 Der Geschäftsführer übernimmt auf 1.4 The Managing Director shall, upon the Wunsch der Gesellschaft ohne weitere Company's request, without any Vergütung auch Positionen oder Ämter additional remuneration, also accept bei mit der Gesellschaft verbundenen positions or Offices in companies Unternehmen (§15 AktG). Ebenso affiliated with the Company (Section 15 übernimmt der Geschäftsführer Stock Companies Act). In the same Positionen oder Ämter bei Verbänden, way, the Managing Director shall also Berufsvereinigungen oder sonstigen accept positions or offices in Organisationen, in denen die associations and professional or other Gesellschaft oder ein verbundenes organizations of which the Company or Unternehmen Mitglied ist. Ihm von an affiliated Company is a member. dritter Seite diesbezüglich gewährte The Managing Director shall transfer to Vergütungen oder the Company any remuneration or Aufwandsentschädigungen führt der allowances he receives from third Geschäftsführer an die Gesellschaft ab. parties in this respect. Upon the Auf Wunsch der Gesellschaft legt der Company's request, the Managing Geschäftsführer im Interesse der Director shall resign from any position Gesellschaft oder verbundener or office accepted in the interests of Unternehmen übernommene Positionen the Company or an affiliated Company oder Ämter nieder und setzt sich nach and he shall do his utmost to ensure besten Kräften dafür ein, dass von der that the person nominated by the Gesellschaft benannte Nachfolger in die Company shall succeed him in the Positionen oder Ämter nachrücken. position or office. 2 Umfang und Ort der Dienste 2 Scope and Place of Service 2.1 Der Geschäftsführer stellt seine ganze 2.1 The Managing Director shall devote all Arbeitskraft und all sein Wissen und his working capacity, knowledge and Können in den Dienst der Gesellschaft. skills into the services of the Company. In der Bestimmung seiner The Managing Director is free to Tätigkeitszeiten ist der Geschäftsführer determine his working hours within the im Rahmen der betrieblichen framework of business requirements. Erfordernisse frei. 2.2 Dienstort des Geschäftsführers ist der 2.2 The Managing Director's place of jeweilige Sitz der Gesellschaft. Service is the respective seat of the Company. Page 2 of 20

3 Neben- und andere Tätigkeiten 3 Side and other Activities 3.1 Die entgeltliche oder unentgeltliche 3.1 The acceptance, for or without Übernahme von Nebentätigkeiten, compensation, of any side activity or Ehrenämtern oder Aufsichtsrats-, any honorary duty or office in Beirats- oder ähnlichen Mandaten sowie supervisory or advisory boards or die mittelbare oder unmittelbare similar office as well as the direct or Beteiligung an anderen Unternehmen indirect participation in other ist dem Geschäftsführer nur mit companies will require the prior written vorheriger, schriftlicher Zustimmung der consent of the competent Company’s zuständigen Gesellschaftsorgane bodies. The consent shall be granted if gestattet. Die Zustimmung wird erteilt, the acceptance of an activity or office wenn die Tätigkeits-, Amts- oder or the participation in other companies Mandatsübernahme oder die affects neither the Managing Director's Beteiligung an anderen Unternehmen working capacity and time nor the weder die Arbeitskraft oder Arbeitszeit Company’s legitimate interests. The des Geschäftsführers noch berechtigte consent may be revoked if the Interessen der Gesellschaft conditions for the granting of the beeinträchtigt. consent are no longer fulfilled. When Die Zustimmung kann widerrufen exercising the right of revocation, the werden, wenn die Voraussetzungen für Managing Director's legitimate ihre Erteilung nicht mehr vorliegen. Bei interests shall be taken into der Ausübung des Widerrufsrechts sind consideration. Shareholdings of less die berechtigten Interessen des than 1% of the share capital of publicly Geschäftsführers zu berücksichtigen. traded companies held by the Aktienbesitz des Geschäftsführers von Managing Director do not require the weniger als 1 % des Grundkapitals Company’s consent. börsennotierter Gesellschaften bedarf nicht der Zustimmung der Gesellschaft. 3.2 Wissenschaftliche und literarische 3.2 Academic and literary work is Tätigkeit ist zulässig, sofern sie weder permitted, if it does neither adversely die Arbeitskraft oder -zeit des affect the working capacity and time of Geschäftsführers beeinträchtigt noch the Managing Director nor make vertrauliche Informationen der confidential information of the Gesellschaft oder eines mit ihr Company or any of its affiliated verbundenen Unternehmens der companies available to the public. The Allgemeinheit zugänglich macht. Der Managing Director shall inform the Geschäftsführer wird die zuständigen competent Company’s bodies about Gesellschaftsorgane vorher über such academic and literary work in wissenschaftliche und literarische advance. Publications and lectures Tätigkeiten informieren. Für affecting the interests of the Company Veröffentlichungen und Vorträge, die or any of its affiliated companies die Interessen der Gesellschaft oder require also the prior written approval eines mit ihr verbundenen of the competent Company’s bodies. Unternehmens berühren, ist außerdem The written consent is hereby given for die vorherige, schriftliche Zustimmung the work as member of the Executive der zuständigen Gesellschaftsorgane Committee of the European Society of einzuholen. Die schriftliche Animal Cell Culture (ESACT) as well Genehmigung gilt hiermit als erteilt für as the role of Member of the Scientific die Tätigkeiten als Member of the Advisory Board of IBET. Executive Committee of the European Society of Animal Cell Culture (ESACT) sowie als Member of the Scientific Advisory Board of IBET. Page 3 of 20

4 Vergütung 4 Remuneration 4.1 Der Geschäftsführer erhält ein 4.1 The Managing Director shall receive an jährliches Festgehalt in Höhe von EUR annual fixed salary in the gross 290.000 brutto (das „Festgehalt"), das amount of EUR 290,000 (the „Base in zwölf gleich hohen Raten am Ende Salary"), payable in twelve equal eines jeden Kalendermonats zahlbar ist. installments at the end of each Erfolgt der Ein- oder Austritt des calendar month. Geschäftsführers in/aus diesen/diesem If the Managing Director enters or Geschäftsführerdienstvertrag leaves this Managing Director Service unterjährig, so erfolgt die Zahlung des Agreement during the year, the annual jährlichen Festgehalts auf pro rata fixed salary is paid on pro rata temporis Basis. temporis basis. Mit dem Festgehalt sind auch außerhalb üblicher Dienstzeiten erbrachte Dienste The Base Salary also compensates for des Geschäftsführers abgegolten. any activities of the Managing Director outside the usual service hours. 4.2 Bei Erfüllung von jährlich durch die 4.2 In the instance of achievement of Gesellschaft bzw. durch die targets to be determined each year in zuständigen Gesellschaftsorgane im advance by the Company or Voraus jeweils neu festzusetzenden respectively by the competent Zielvorgaben erhält der Geschäftsführer Company’s bodies, the Managing zusätzlich zu dem Festgehalt nach Director is entitled to an annual bonus Ziffer 4.1 einen jährlichen Bonus. in addition to his Base Salary pursuant to clause 4.1. Die Bonuszahlung hängt in ihrem The bonus payment is subject to the Entstehen und ihrer Höhe davon ab, achievement of certain targets by the dass bestimmte Ziele durch den managing director and the Company Geschäftsführer und die Gesellschaft in respect of its existence and amount. erreicht werden. The annual bonus can amount up to a Der jährliche Bonus kann maximal 40% maximum of 40% of the (annual) Base des (jährlichen) Festgehalts betragen, Salary if the Managing Director and the wenn die Zielvorgaben zu 100% vom company achieve the targets at 100%. Geschäftsführer und der Gesellschaft If the Managing Director and the erreicht werden. Werden die Company do not fully achieve the Zielvorgaben durch den targets, i.e. below 100%, the annual Geschäftsführer und die Gesellschaft bonus is proportionally granted to the nicht vollständig, d.h. nicht zu 100%, achievement of targets. erreicht, wird der jährliche Bonus proportional im Verhältnis zur Zielerreichung gewährt. In the year of entry and the year of exit and for those times during which, for Im Eintritts- und Austrittsjahr sowie für other reasons, no entitlement to salary Zeiten, in denen aus sonstigen Gründen exists as per clause 4.1 of this service kein Anspruch auf die Vergütung agreement the to be achieved targets, gemäß Ziffer 4.1 dieses the partial bonus amounts that relate to Geschäftsführerdienstvertrages besteht, it and the amount of the full annual reduzieren sich die zu erreichenden target bonus (100%) are each reduced Ziele, die darauf entfallenden Bonus- by 1/12 for each full month of Teilbeträge und die Höhe des vollen nonexistence of this service agreement Jahreszielbonus (100%) jeweils um and entitlement to salary respectively Page 4 of 20

1/12 für jeden vollen Monat des as per clause 4.1 of this service Nichtbestehens des agreement. Parts of a month are Geschäftsführerdienstverhältnisses calculated proportionally. Such bonus bzw. des Vergütungsanspruchs gemäß amounts shall be determined and paid Ziffer 4.1 dieses out after the Managing Director’s Geschäftsführerdienstvertrags. Teile Annual Review, however, no later than eines Monats werden anteilig the end of March of the year following berechnet. Die so ermittelten Bonus- the respective business year. Beträge werden nach dem Annual Review des Geschäftsführers bestimmt und ausbezahlt, spätestens jedoch bis Ende März des auf das jeweilige Geschäftsjahr folgenden Jahres. 4.3 Der Geschäftsführer kann berechtigt 4.3 The Managing Director may be eligible sein, an dem Optionsprogramm der to participate in the option pool of Pieris Pharmaceuticals, Inc. Pieris Pharmaceuticals, Inc. teilzunehmen. Über den Abschluss Solely the Pieris Pharmaceuticals, Inc. einer solchen Vereinbarung and the Managing Director decide on entscheiden allein die Pieris the conclusion of such an agreement. Pharmaceuticals, Inc. und der The preconditions and scope of Geschäftsführer. Die Voraussetzungen participation shall be determined solely und der Umfang der Teilnahme in accordance with such separate bestimmen sich allein nach Maßgabe agreement. There are no entitlements einer solchen separaten Vereinbarung. of the Managing Director against the Es gibt keine Ansprüche des Company based on the option pool. Geschäftsführers gegen die Gesellschaft aus dem Optionsprogramm. 4.4 Die Gesellschaft zahlt dem 4.4 The Company shall pay to the Geschäftsführer gegen Nachweis einen Managing Director a housing Wohnzuschuss in Höhe von maximal allowance of a maximum of EUR 1,200 EUR 1.200 (netto) monatlich für den (net) per month for a total period of 9 Zeitraum von insgesamt 9 Monaten für months for an apartment in the area of eine Wohnung im Raum München, Munich, the district of Munich, Erding München-Land, Erding oder Freising. or Freising upon the presentation of Die steuerrechtliche und sozial- receipts. The tax and social security versicherungsrechtliche Behandlung treatment will be dealt in accordance wird nach Maßgabe der einschlägigen with the applicable statutory provisions. gesetzlichen Vorschriften erfolgen. Die The Company shall contract a Gesellschaft wird einen Relocation relocation agency that will assist the Service beauftragen, die den Managing Director with the search for Geschäftsführer bei der Suche nach such apartment. einer entsprechenden Wohnung unterstützen wird. 4.5 Zusätzlich wird die Gesellschaft dem 4.5 In addition, for the duration of this Geschäftsführer für die Dauer des contract, the Company will provide the Vertrages eine Bahncard First 100 zur Managing Director with a Bahncard Verfügung stellen, die der First 100, which the Managing Director Geschäftsführer auch für private is also allowed to use for private Zwecke verwenden darf. Die purposes. The tax and social security steuerrechtliche und treatment will be dealt in accordance sozialversicherungsrechtliche with applicable statutory provisions. Page 5 of 20

Behandlung wird nach Maßgabe der einschlägigen gesetzlichen Vorschriften erfolgen. 4.6 Die Vergütungsansprüche des 4.6 The Managing Director's remuneration Geschäftsführers sind nicht abtretbar. is not assignable. 4.7 Zahlungen seitens der Gesellschaft 4.7 Any payments made by the Company werden bargeldlos auf ein vom shall be transferred non-cash to a Geschäftsführer zu benennendes, German bank account to be named by deutsches Konto überwiesen. the Managing Director. 4.8 Zuviel gezahltes Entgelt oder sonstige 4.8 If the Company pays too much Leistungen kann die Gesellschaft nach remuneration or other benefits, it can den Grundsätzen über die Herausgabe claim for restitution pursuant to the einer ungerechtfertigten Bereicherung principles of unjust enrichment. If the zurückverlangen. Der Geschäftsführer lack of legal grounds is obvious to an kann sich auf den Wegfall der extent that the Managing Director must Bereicherung nicht berufen, wenn die have noticed, he may not refer to the rechtsgrundlose Überzahlung so argument that he is no longer enriched. offensichtlich war, dass er dies hätte The same applies, if he is responsible erkennen müssen, oder wenn die for the overpayment. Überzahlung auf Umständen beruhte, die er zu vertreten hat. 4a Betriebliche Altersversorgung 4a Occupational Pension Scheme Die Gesellschaft wird zu Gunsten des The Company shall conclude on an Geschäftsführers eine betriebliche occupational pension scheme in favor Altersversorgung abschließen. Sollte of the Managing Director. Should such zum Beginn der Anstellung ein solches a regulation not be in existence at the Regelwerk nicht existieren, verpflichtet time of joining, the Company shall sich die Gesellschaft, für den conclude a separate regulation for the Geschäftsführer eine separate Managing Director. The contributions Regelung zu treffen mit einer for such a regulation shall be the Beitragshöhe im Äquivalent von 2% des equivalent of 2% of the current base jeweils aktuellen Festgehaltes bis zur salary for any income below the Höhe der aktuellen BBG der current social security ceiling and 4% gesetzlichen Rentenversicherung sowie of the current base salary for any 4% des jeweils aktuellen Festgehaltes income above the current social der Beträge über der aktuellen BBG der security ceiling. gesetzlichen Rentenversicherung. 4b Abfindung 4b Severance Payment Wird dieser Geschäftsführer- If this Managing Director's Service Dienstvertrag von der Gesellschaft bzw. Agreement is terminated by the von den zuständigen Company or respectively by the Gesellschaftsorganen ordentlich competent Company’s bodies by way gekündigt, erhält der Geschäftsführer of an ordinary dismissal (ordentliche eine Abfindungszahlung. Die Kündigung), the Managing Director Page 6 of 20

Abfindungshöhe beträgt ein shall receive a severance payment. Bruttomonatsgrundgehalt pro The severance payment amounts to a Beschäftigungsjahr. Für die Berechnung gross base monthly salary per year of der Abfindungshöhe werden die bei services. The severance payment shall Beendigung des Geschäftsführer- be calculated on the basis of the full Dienstvertrages abgeleisteten vollen years of service completed upon Dienstjahre und das während des termination of the Managing Director's letzten Monats vor Beendigung dieses Service Agreement and the gross Vertrages bezogene Bruttomonats- monthly base salary received during grundgehalt zugrunde gelegt. Die the last month prior to termination of Abfindungshöhe ist begrenzt auf this agreement. The severance maximal sechs Bruttomonats- payment is limited to a maximum of six grundgehälter. gross monthly base salaries. Die Abfindungssumme wird zum Ablauf The severance payment is due upon des Geschäftsführer-Dienstvertrages the expiry of the Managing Director's fällig und wird unter Beachtung der Service Agreement and is paid in hierfür geltenden steuerlichen accordance with applicable tax Bestimmungen gezahlt. provisions. Das Vorstehende gilt nicht, wenn die The above shall not apply if the Gesellschaft bzw. die zuständigen Company or respectively the Gesellschaftsorgane das competent Company’s bodies validly Geschäftsführer-Dienstverhältnis terminate the Managing Director außerordentlich wegen eines wichtigen Service Agreement extraordinarily for Grundes gem. § 626 BGB wirksam good cause in accordance with Sec. kündigen. 626 (German Civil Code). 5 Sozialversicherung 5 Social Security Contributions Soweit die Tätigkeit des To the extent that the Managing Geschäftsführers Director's Services are subject to sozialversicherungspflichtig ist, trägt die social security, the Company shall bear Gesellschaft die gesetzlichen the statutory employer's contributions. Arbeitgeberbeiträge. 6 Vergütung bei Dienstunfähigkeit oder 6 Remuneration in the Event of Tod Incapacity or Death . 6.1 Der Geschäftsführer verpflichtet sich, 6.1 The Managing Director undertakes to der Gesellschaft jede notify the Company immediately in Dienstverhinderung und ihre case of any service prevention and its voraussichtliche Dauer unverzüglich probable duration. Upon request, the anzuzeigen. Auf Verlangen sind die reasons for the prevention shall be Gründe der Dienstverhinderung communicated. mitzuteilen. Im Falle der Arbeitsunfähigkeit infolge In the event of incapacity for work as a Krankheit ist der Geschäftsführer result of illness, the Managing Director verpflichtet, vor Ablauf des vierten shall be obliged to submit a medical Kalendertages eine ärztliche certificate stating the incapacity for Bescheinigung über die work and its probable duration before Arbeitsunfähigkeit und deren the end of the fourth calendar day. Any voraussichtliche Dauer vorzulegen. extension must be notified immediately Jede Verlängerung ist unverzüglich and certified by a doctor. anzuzeigen und ärztlich zu Page 7 of 20

bescheinigen. 6.2 Bei einer vorübergehenden 6.2 In the case of temporary incapacity of Dienstunfähigkeit des Geschäftsführers the Managing Director to provide aufgrund von Krankheit oder eines services due to illness or any other anderen von ihm nicht zu vertretenden reason beyond his control, the Grundes zahlt die Gesellschaft die Company shall continue to pay the Vergütung für den Zeitraum von 6 Managing Director the remuneration Wochen fort. Die Fortzahlung der hereunder for a period of six weeks. Bezüge erfolgt längstens bis zur The continuation of payment of Beendigung dieses Vertrages. remuneration shall occur for a maximum period up until the ending of this agreement. 7 Erstattung von Aufwendungen 7 Reimbursement of Expenses Notwendige Reisekosten und Spesen Necessary travel costs and expenses werden dem Geschäftsführer durch die shall be reimbursed to the Managing Gesellschaft im Rahmen der Director by the Company within the steuerlichen Höchstbeträge erstattet. framework of the maximum amounts Die Erstattung von Reisekosten und permitted according to the tax Spesen setzt den Nachweis durch regulations. The reimbursement of Vorlage entsprechender Belege voraus. travel costs and expenses Einzelheiten können sich aus einer prerequisites provision of proof by etwaigen Spesen- und submission of respective receipts. Reisekostenrichtlinie der Gesellschaft Details can be set forth in a possible ergeben. Expenses and Travel Costs Directive of the Company. 8 Urlaub 8 Vacation 8.1 Der Geschäftsführer hat Anspruch auf 8.1 The Managing Director is entitled to an einen jährlichen Erholungsurlaub von annual vacation of thiry (30) working dreißig (30) Arbeitstagen. Die Zeit days. He shall schedule his vacation seines Urlaubs legt er nach after consultation with any co- Abstimmung mit etwaigen managing directors or the competent Mitgeschäftsführern oder den Company bodies taking the interests of zuständigen Gesellschaftsorganen the Company into consideration. unter Berücksichtigung der Interessen der Gesellschaft fest. 8.2 Bei Ausscheiden des Geschäftsführers 8.2 In case the Managing Director leaves während des Kalenderjahrs verkürzt the Company during a calendar year, sich der Urlaubsanspruch für jeden the claim of vacation shall be Monat, in dem dieses Dienstverhältnis decreased to every month in which this nicht durchgehend bestanden hat, um service agreement did not exist 1/12. Eine Kürzung unterbleibt, soweit permanently, to 1/12. Decrease der gesetzliche Mindesturlaub remains undone if the statutory unterschritten würde. minimum of vacation may be below that. 8.3 Im Übrigen gelten die Bestimmungen 8.3 Apart from that, the statutory des Bundesurlaubsgesetzes analog. provisions of the Federal Leave Act apply accordingly. 9 Geheimhaltung & Rückgabe 9 Confidentiality & Return Page 8 of 20

9.1 Der Geschäftsführer wird sowohl 9.1 During the term of this Agreement and während seines Dienstverhältnisses als thereafter, the Managing Director shall auch nach dessen Ende über alle ihm not disclose to any third party any of anvertrauten, zugänglich gemachten the business or operational secrets of oder sonst bekannt gewordenen the Company or any affiliated vertraulichen Angelegenheiten, Company which have been entrusted insbesondere Betriebs- und or otherwise become known to him, Geschäftsgeheimnisse, der and he shall not utilize such business Gesellschaft oder eines mit der or operational secrets himself. Gesellschaft verbundenen Unternehmens Stillschweigen gegenüber Dritten bewahren und Betriebs- und Geschäftsgeheimnisse nicht selbst verwerten. 9.2 Geschäftliche Unterlagen aller Art, 9.2 Any business records, including einschließlich persönlicher personal notes concerning the Aufzeichnungen, die sich auf Company's or any affiliated company's Angelegenheiten oder Tätigkeiten der affairs and activities, shall be used only Gesellschaft oder mit der Gesellschaft for business purposes, shall be kept verbundener Unternehmen beziehen, carefully, and must be immediately dürfen nur zu geschäftlichen Zwecken upon request, on termination of the verwendet werden, sind sorgfältig Managing Director Service Agreement, aufzubewahren und der Gesellschaft also without request immediately at the auf Aufforderung unverzüglich, bei latest on the date of termination Beendigung des handed over to the Company. Any Geschäftsführerdienstvertrages auch rights of retention are excluded. ohne Aufforderung unverzüglich, spätestens zum Beendigungsdatum auszuhändigen. Zurückbehaltungsrechte sind ausgeschlossen. 10 Erfindungen, urheberrechtliche 10 Inventions, Copyright Protected Werke Works 10.1 Erfindungen und technische 10.1 Inventions and technical improvement Verbesserungsvorschläge, die der proposals which the Managing Director Geschäftsführer während seiner has created or made during or in Tätigkeit für die Gesellschaft oder im connection with services for the Zusammenhang mit seiner Tätigkeit für Company or on the basis of work die Gesellschaft oder aufgrund von products of the Company are to be Arbeitserzeugnissen der Gesellschaft notified immediately to the Company in gemacht oder erarbeitet hat, sind text form. unverzüglich in Textform zu melden. 10.2 Der Geschäftsführer überträgt hiermit 10.2 The Managing Director hereby im Wege der Abtretung an die irrevocably assigns to the Company, Gesellschaft, die diese Abtretungen which hereby accepts such hiermit annimmt, unwiderruflich alle assignment, all possibly existing and etwaig bestehenden und zukünftigen future intellectual property rights, gewerblichen Schutzrechte, copyrights and affiliated propriety rights Urheberrechte und verwandte as well as all other exclusive rights, Schutzrechte sowie sonstige including but not limited to rights from Ausschließlichkeitsrechte, insbesondere patents, utility patents, trademarks, Page 9 of 20

solche aus Patent-, Gebrauchsmuster-, designs or copyrights in and to the Marken-, Design- oder Urheberrecht, an work results which the Managing den Arbeitsergebnissen, die der Director obtains, within or outside his Geschäftsführer während oder working hours, außerhalb der Arbeitszeit a) während der Dauer seines a) during the term of his service Dienstverhältnisses mit der relationship and which have a Gesellschaft erstellt und die einen connection to his service tasks, Bezug zu seinen vertraglichen and /or Aufgaben haben, und/oder b) im Zusammenhang mit b) in connection with his contractual vertraglichen Tätigkeiten für die services rendered on behalf of the Gesellschaft erworben hat, Company, and/or und/oder c) unter Verwendung von Material c) upon use of material and/or work und/oder Arbeitszeit, die von der time provided by the Company Gesellschaft zur Verfügung gestellt (collectively the “Work Results”), wurden, entwickelt oder erworben in each case with effect from the hat (nachfolgend zusammen die time of their development. „Arbeitsergebnisse“), jeweils mit Wirkung zum Zeitpunkt ihres Entstehens. Zu den Arbeitsergebnissen gehören The Work Results shall include, insbesondere but not be limited to, data Datenverarbeitungsprogramme, processing programs, written schriftliche Unterlagen documentation (documents, (Dokumentationen, Handbücher handbooks, etc.), software etc.), Softwarebeschreibungen descriptions (system (Pflichtenhefte, Grob- und specifications, rough and subtle Feinspezifikationen, Quellcode specifications, source code etc.), etc.), Darstellungen in presentations of scientific and wissenschaftlicher und technischer technical kind (for example plans, Art (z.B. Pläne, Skizzen, Tabellen sketches, charts, etc.), data bases etc.), Datenbanken sowie as well as teaching material and Schulungsmaterialen und sonstige other image and language works. Bild- und Sprachwerke. Soweit eine Abtretung der oben If and to the extent to, such genannten Rechte rechtlich nicht assignment of the aforementioned möglich ist, überträgt der rights is legally not possible, the Mitarbeiter der Gesellschaft das Managing Director shall assign to ausschließliche, zeitlich, räumlich the Company the exclusive right of und inhaltlich unbeschränkte use and exploitation, which is Nutzungs- und Verwertungsrecht unrestricted in terms of time, für alle etwaigen nach Marken-, territory and subject-matter, for all Design-, Gebrauchsmuster-, possible protectable Work Results, Urheberrecht schutzfähigen which may otherwise be Arbeitsergebnisse sowie allen unter protectable according to utility sonstige Immaterialgüterrechte patents, trademarks, designs or fallenden Arbeitsergebnisse. copyrights according to any other industrial property right, as well as all other Work Results capable of Page 10 of 20

any other protection under intellectual property rights. Die Übertragung schließt auch This assignment shall also Rechte ein, die ggf. schon vor encompass rights which were Aufnahme der Tätigkeit des generated prior to the Managing Geschäftsführers für die Director’s beginning of his services Gesellschaft von ihm erworben hereunder as well as rights wurden, sowie Rechte, die der obtained by the Managing Geschäftsführerprivat und/oder im Director in private and/or abroad, Ausland erworben hat, sofern die provided the preconditions under zuvor genannten Voraussetzungen lit. a) – c) are met (alternatively or lit. a) -c) (alternativ oder kumulativ) cumulatively). vorliegen. 10.3 Die Übertragung nach Ziffer 10.2 gilt 10.3 The grants of rights pursuant to clause auch für Manuskripte, Zeichnungen, 10.2 shall also encompass and relate Bilder einschließlich der Negative, to manuscripts, drawings, pictures Datenträger sowie sonstige Vorarbeiten including negatives, data carrier plus und umfasst auch das Recht zur any other preparatory work. It shall vollständigen oder teilweisen also include the right to complete or Übertragung von Nutzungs- und partial transfer of use and exploitation Verwertungsrechten und zur Vergabe rights and to grant licenses to third von Lizenzen an Dritte. parties. Von der Rechteübertragung nach Ziffer The assignment of rights pursuant to 10.2 umfasst sind insbesondere auch clause 10.2 shall also include, but not die folgenden Rechte: be limited to, the following rights: a) das Vervielfältigungsrecht, a) The right of permanent or insbesondere das Recht, die temporary reproduction of the Arbeitsergebnisse oder deren Work Results by any means and in Bearbeitungen vollständig oder any form, in part or in whole, teilweise, dauerhaft oder including loading, displaying, vorübergehend mit jedem Mittel running, transmission, and/or und in jeder Form auf allen storage and copies of the Work Speichermedien körperlich Results for the purpose of festzulegen sowie dauerhaft oder processing and reproduction of vorübergehend durch Laden, database; Anzeigen, Ablaufen, Übertragen und/oder Speichern zum Zwecke der Ausführung und/oder der Verarbeitung von Datenbeständen zu vervielfältigen; b) das Verbreitungsrecht, also b) the right of distribution, in particular insbesondere das Recht, die the right of transferring the Work Tätigkeitsergebnisse oder deren Results or their editing or Bearbeitungen oder reproductions to one or more third Vervielfältigungsstücke hiervon parties free of charge or for a einem oder mehreren Dritten consideration, permanent or entgeltlich oder unentgeltlich, temporary and in any form; dauerhaft oder vorübergehend auf alle Verbreitungs- und Vertriebsarten und -wege körperlich weiterzugeben; Page 11 of 20

c) das Vermiet- und Verleihrecht, c) the rental right and lending right, in insbesondere das Recht, die particular the right to rent and lend Arbeitsergebnisse zu vermieten the Work Results und/oder zu verleihen; d) das Datenbankrecht, also d) the database right, i.e. in particular insbesondere das Recht, die the right to collect or store the Arbeitsergebnisse in eine Work Results in a data bank, or as Datenbank einzuspeisen oder als a collection which is administrated Sammlung, die durch ein by a data bank management Datenbankmanagementsystem system on data carriers, to verwaltet wird, auf beliebigen duplicate such data carriers in Datenträgern zu speichern, diese every possible form, to distribute, Datenträger in beliebiger Form zu lease and lend, to borrow, and/or vervielfältigen, zu verbreiten, zu to store, transfer, reproduce, make vermieten, zu verleihen und/oder available and/or display online, in online, insbesondere im Internet particular in the internet or WWW, bzw. WWW, bereitzuhalten, zu or, to the extent the contract mater übertragen, wiederzugeben, includes data banks, the right of öffentlich zugänglich zu machen re-production, distribution and/or und/oder vorzuführen oder, soweit publicly display or making der Vertragsgegenstand available such data-bases or a part Datenbanken enthält, das Recht, which is material due to its kind or diese Datenbanken oder einen extent; nach Art oder Umfang wesentlichen Teil der Datenbanken zu vervielfältigen, zu verbreiten und/oder öffentlich wiederzugeben oder öffentlich zugänglich zu machen; e) das Recht der Öffentlichen e) the right of public access (making- Zugänglichmachung (making- available), thus, in particular the available), insbesondere also das right to transmit the Work Results Recht, die Arbeitsergebnisse online or electronically, in part or in elektronisch, ganz oder teilweise, whole, via cable or wireless, and/or drahtgebunden, über Fernleitung the right of public or non-public oder draht- oder kabellos zu flexible (time and location) access; übertragen und/oder gegenüber der Öffentlichkeit oder geschlossenen Benutzerkreisen in einer Weise zugänglich zu machen, dass es diesen von Orten und zu Zeiten ihrer Wahl zugänglich ist; f) das Online-Übertragungsrecht und f) the right to online-transmission and das Online-Wiedergaberecht, also online-reproduction, i.e. the right to das Recht, die Arbeitsergebnisse transmit, transmit electronically, in elektronisch, ganz oder teilweise, whole or in part, wired, via drahtgebunden, über Fernleitung telecommunication or wireless, in oder draht- oder kabellos, particular via internet or other insbesondere über das Internet, online services or via any internal das WWW oder über andere Online or external network (in particular Dienste und/oder über beliebige WAN, LAN, W-LAN) or by funk to interne oder externe Netzwerke third parties, in particular for Page 12 of 20

(insbesondere WAN, LAN, W-LAN) individual requests, by e-mail oder per Funk Dritten zugänglich zu and/or in the form of an electronic machen, zu versenden, zu transmission, and/or to transmit, übertragen, insbesondere auf send and/or publicly display the Einzelabruf, per E-Mail und/oder im Work Results in such way to third Rahmen einer Push-Applikation parties; und/oder den Vertragsgegenstand auf diesem Weg zu übertragen, zu senden und/oder öffentlich wiederzugeben; g) das Vorführrecht, also das Recht, g) the right to perform, i.e. the right to die Arbeitsergebnisse öffentlich present the Work Results in public; vorzuführen; h) das Bearbeitungsrecht, h) the right to edit, in particular the insbesondere das Recht die right to integrate Work Results into Arbeitsergebnisse in andere other products of the Company or Produkte der Gesellschaft oder of a third party, to change, extend, eines Dritten zu integrieren bzw. implement, translate, revise, integrieren zu lassen, sie in arrange or otherwise alter or beliebiger Weise zu ändern, zu transform them in any manner, to erweitern, zu implementieren, zu adapt them to the needs of the übersetzen, zu überarbeiten, zu Company or third parties, to arrangieren oder sonst wie convert them into other program umzuarbeiten oder umzugestalten, languages or for other operating an die Bedürfnisse der Gesellschaft systems or to transfer them into oder von Dritten anzupassen, in other forms of presentation, and andere Programmsprachen the respective results obtained und/oder für andere thereby; Betriebssysteme zu konvertieren und/oder in andere Darstellungsformen zu übertragen sowie die dadurch jeweils gewonnenen Ergebnisse wie die Arbeitsergebnisse selbst zu nutzen; i) das Recht der Digitalisierung, i) the right of digitization, in particular insbesondere das Recht, die the right to digitize the Work Arbeitsergebnisse digitalisiert zu Results, to digitize non-digitalized erfassen, nicht digitalisierte, im content, multimedia applications Zusammenhang mit den and supporting material of the Arbeitsergebnissen stehende Work Results, in particular Inhalte, Multimediaapplikationen documentation, or to combine the und Begleitmaterial der Work Results with other works in Arbeitsergebnisse, insbesondere digitized form; and Dokumentationen, zu digitalisieren und/oder die Arbeitsergebnisse mit anderen Werken in digitalisierter Form zu verbinden; und j) das Recht, die Arbeitsergebnisse j) the right to edit, rework, zu bearbeiten, umzuarbeiten, disassemble (decompile) and/or auseinanderzunehmen transform the Work Results, in (dekompilieren) und/oder particular to adapt and further umzugestalten, insbesondere für develop them for the benefit of Page 13 of 20

Anliegen der Gesellschaft Company and to produce works anzupassen und and results derived from the Work weiterzuentwickeln und von den Results; and Arbeitsergebnissen abgeleitete Werke und Ergebnisse zu erstellen; und k) das Recht, die Arbeitsergebnisse k) the right to use the Work Results, zu nutzen, insbesondere in particular to create, offer, place Erzeugnisse unter Verwendung der on the market, use or possess for Arbeitsergebnisse herzustellen, these purposes products using the anzubieten, in Verkehr zu bringen, Work Results, or to apply zu gebrauchen oder zu diesen procedures using the Work Results Zwecken zu besitzen oder Verfahren unter Verwendung der Arbeitsergebnisse anzuwenden. Die Parteien sind sich darüber einig, The Parties agree that the dass die vorgenannten Aufzählungen aforementioned enumerations shall be lediglich beispielhaft und nicht made as an example only and shall not abschließend sind. Der Mitarbeiter be deemed final. The Managing überträgt der Gesellschaft auch die Director shall assign to the Company Rechte für sämtliche noch unbekannte all rights also for unknown forms of Nutzungsarten. use. 10.4 Die vorstehende Rechteübertragung gilt 10.4 The preceding assignment of rights auch für die Zeit nach Beendigung des shall apply also after termination of the Dienstverhältnisses, ohne dass hierfür service agreement, which will not result ein zusätzlicher Vergütungsanspruch any additional claim to remuneration. entsteht. 10.5 Sämtliche vorstehenden Rechte sind 10.5 All aforementioned shall be deemed der Gesellschaft spätestens zum transferred to the Company as Zeitpunkt ihrer Entstehung als exclusive rights immediately upon their ausschließliche Rechte übertragen und creation. The Company shall be können von der Gesellschaft nach entitled to further assign such rights, as freiem Belieben ganz oder teilweise a whole or in part, on an exclusive or auch in Form einer ausschließlichen non-exclusive basis, to third parties in oder nicht ausschließlichen its own sole discretion. Berechtigung auf Dritte weiter übertragen werden. 10.6 Der Geschäftsführerverzichtet insoweit 10.6 The Managing Director shall, in this auf seine etwaigen Nutzungs- und respect, waive any rights it holds Verwertungsrechte an den inclusive the right of access as per Arbeitsergebnissen, einschließlich des Section 25 of the German Copyright Zugangsrechts gem. § 25 UrhG. Die Act (UrhG) to use the Work Results Gesellschaft nimmt diesen Verzicht an. himself. The Company accepts this Dem Mitarbeiter ist es insbesondere, waiver. The Managing Director is aber nicht ausschließlich, strengstens strictly forbidden in particular (but not untersagt, die Arbeitsergebnisse, oder exclusively) from using the Work Teile davon, für eigene Zwecke, sowohl Results or parts thereof for its own privater als auch beruflicher, purposes, both of a private and insbesondere gewerblicher Art, zu professional, specifically commercial nutzen. Hierzu zählt unter anderem nature. This also includes, amongst auch die Nutzung der other things, the use of Work Results Page 14 of 20

Arbeitsergebnisse, oder Teilen davon, or parts thereof for the purposes of zum Zwecke der Eigenwerbung self-promotion and/or as work und/oder der Verwendung als samples. Arbeitsproben. 10.7 Eine Verpflichtung der Gesellschaft zur 10.7 The Company is not obliged to Anmeldung, Nutzung oder Verwertung register, use or exploit the Work der Arbeitsergebnisse besteht nicht. Results. The possible right of the Das dem Geschäftsführer nach den Managing Director to revoke pursuant Bestimmungen des to the provisions of the German Urheberrechtsgesetzes eventuell Copyright Act due to a failure of the zustehende Rückrufsrecht wegen Company to exercise the granted or Nichtausübung der jeweils transferred rights of use and übertragenen Nutzungs- und exploitation shall be excluded for a Verwertungsrechte ist für die Dauer von term of five years since the grant or fünf Jahren ab deren Übertragung transfer of rights. Revocation may be ausgeschlossen. Der Rückruf kann erst declared only if (i) the Managing erklärt werden, nachdem (i) der Director had set a deadline to the Geschäftsführer der Gesellschaft eine Company of two years, hereby Nachfrist von zwei Jahren unter requesting the exploitation method Aufforderung zu im Einzelnen which must be specifically referred to, bezeichneten Nutzungen gesetzt hat and (ii) the time limit has expired und (ii) diese Nachfrist verstrichen ist, without the Company having complied ohne dass die Gesellschaft dieser with this request. This shall not apply if Aufforderung nachgekommen ist. Dies the non-exercise or the insufficient gilt nicht, wenn die Nichtausübung oder exercise is mainly based on die unzureichende Ausübung circumstances which may reasonably überwiegend auf Umständen beruhen, be expected to be remedied by the deren Behebung dem Geschäftsführer Managing Director. zuzumuten ist. Der Gesellschaft verbleibt auch im Fall Even in case of a revocation, the des Rückrufs stets ein einfaches Company shall always retain a non- Nutzungs- und Verwertungsrecht mit exclusive right of use with the same dem gleichen Umfang wie das der scope as the exclusive rights granted Gesellschaft nach diesem Vertrag to Company in this agreement. In the gewährte ausschließliche Nutzungs- event of an effective revocation, the und Verwertungsrecht. Der Managing Director may only use and Geschäftsführer darf nach erfolgtem exploit the Work Product if and to the Rückruf sein Arbeitsergebnis nur extent that this does not impair the verwerten, wenn und soweit dies den legitimate interests of the Company. berechtigten Interessen der Gesellschaft nicht abträglich ist. 10.8 Der Geschäftsführer ist im Rahmen 10.8 As part of his right to determination ac- seines Bestimmungsrechts gemäß § 13 cording to Sec. 13 clause 2 UrhG, the S. 2 UrhG damit einverstanden, dass Managing Director hereby consents eine Benennung und Bezeichnung des that he is not named as creator within Geschäftsführers als Urheber im the exploitation of the Work Results. Rahmen der Verwertung der The Parties agree that moral rights and Arbeitsergebnisse nicht erfolgt. Die similar rights of the Managing Director Parteien stimmen darin überein, dass shall be excluded to the largest Urheberpersönlichkeitsrechte und possible extent. ähnliche Rechte des Geschäftsführers im weitest zulässigen Umfang ausgeschlossen sind. Page 15 of 20

10.9 Der Geschäftsführer stellt eine 10.9 The Managing Director must ensure angemessene Dokumentation seiner suitable documentation of his patentierbaren, urheberrechtsfähigen patentable, copyrightable and und sonst schützbaren otherwise protectable Work Results, Arbeitsergebnisse sicher, muss diese must keep the said documentation up Dokumentation auf dem aktuellen to date and must make it accessible to Stand halten, sie der Gesellschaft the Company at any time and must jederzeit zur Verfügung stellen und ihr assign title and any and all rights of sämtliche Nutzungs- und use and exploitation to the said Verwertungsrechte daran einräumen. documentation to the Company. Ferner soll der Geschäftsführer die Furthermore, at the Company's Gesellschaft, ihre Rechtsnachfolger request, he shall support it upon the und Abtretungsempfänger auf deren acquisition of copyrights and other Anforderung beim Erwerb von legal protection possibilities (especially möglichen Schutzrechten an industrial property rights) for the Arbeitsergebnissen unterstützen und Managing Director's Work Results at ihnen ermöglichen, sich den vollen und home and abroad. The Managing ausschließlichen Nutzen und die Director shall accordingly fill in and Vorteile der Arbeitsergebnisse zu submit all applications, assignment sichern und diese zu verwerten. Der declarations and other legal Geschäftsführer soll dementsprechend declarations and shall sign all sämtliche Anmeldungen, documents which are necessary or Abtretungserklärungen und andere desired by the Company in order to rechtsverbindliche Erklärungen assign copyrights or other industrial abgeben bzw. ausfüllen und property rights to the Work Results to einreichen. Er soll ferner Unterlagen the Company in full and to enable the unterzeichnen, die erforderlich oder Company, its legal successors and von der Gesellschaft gewünscht sind, assignees to secure for themselves the um die Urheberrechte oder anderen full and exclusive use and the benefits gewerblichen Schutzrechte an den of these Work Results and to exploit Arbeitsergebnissen vollständig zu them. übertragen und um der Gesellschaft den gesamten und ausschließlichen Gebrauch und die Vorteile dieser Arbeitsergebnisse zu sichern und diese zu verwerten. 10.10 Sämtliche vertragsgegenständlichen 10.10 The performance of such contractual Rechteübertragungen bzw. assignments of rights and the entire Rechteeinräumungen nach dieser Ziffer transfer of exploitation rights and rights 10 und sämtliche sich hiernach to use after clause 10 as well as all ergebenden Pflichten sind Bestandteil obligations arising here from are part of der Dienstaufgabe des the Managing Director’s contractual Geschäftsführers im Sinne von Ziffer 1 tasks pursuant to clause 1 and shall all und sind mit der Zahlung der Vergütung be deemed fully compensated by the nach Ziffer 4 vollständig abgegolten. Mit payment of the remuneration pursuant Ausnahme von Kosten, die durch die to clause 4. Except of costs which he vorbezeichnete gesonderte Anforderung has incurred through the Company's der Gesellschaft nach Ziffer 10.9 request pursuant to clause 10.9, there entstehen, erfolgt keine zusätzliche shall be no additional reimbursement Kostenerstattung. Für den Fall, dass der of expenses. If the Managing Director Geschäftsführer die performs the cooperation obligations Mitwirkungspflichten nach Beendigung after the termination of the Managing des Dienstverhältnisses erfüllt, soll er Director's Services, he shall eine angemessene accordingly receive a reasonable daily Page 16 of 20

Tagesentschädigung sowie allowance and also the reimbursement angemessene Kostenerstattung für of all reasonable costs which he has sämtliche Kosten erhalten, die ihm incurred through the Company's durch die Aufforderung der Gesellschaft request. entstanden sind. 10.11 Unberührt bleiben nichtabdingbare und 10.11 Unmodifiable, statutory law regarding zwingende Regelungen zur additional payment, such as Sections Nachvergütung, wie bspw. §§ 32a, 32c 32a, 32c UrhG, shall remain UrhG. unaffected. 10.12 Jegliche aus den auf die Gesellschaft 10.12 Any profits or other advantages übertragenen Arbeitsergebnisse und resulting from the transferred Work eingeräumten entsprechenden Results or grant of the corresponding Nutzungs- und Verwertungsrechte rights or use and exploitation belong resultierenden Gewinne oder sonstigen exclusively to the Company. Vorteile stehen ausschließlich der Gesellschaft zu. 11 Wettbewerbsverbot 11 Non-Competition 11.1 Dem Geschäftsführer ist es untersagt, 11.1 During the term of this managing während der Dauer des director service agreement, the Geschäftsführerdienstvertrages in Managing Director is prohibited from selbständiger, unselbständiger oder working on a self-employed or sonstiger Weise für ein Unternehmen employed basis or otherwise for any tätig zu werden, welches mit der business that is in direct or indirect Gesellschaft indirekt oder direkt in competition with the Company. Wettbewerb steht. In gleicher Weise ist Likewise, during the term of this es dem Geschäftsführer untersagt, managing director service agreement, während der Dauer dieses the Managing Director is prohibited Geschäftsführerdienstvertrags ein from forming, acquiring or directly or solches Unternehmen zu errichten, zu indirectly participating in such erwerben oder sich hieran unmittelbar companies. oder mittelbar zu beteiligen. 11.2 Der Geschäftsführer darf jedoch Aktien 11.2 The Managing Director may hold any oder andere Wertpapiere eines shares or other securities of any Wettbewerbers erwerben und halten, competitor that is listed on any die an einer Wertpapierbörse oder securities exchange or recognized einem sonstigen anerkannten securities market anywhere to the Wertpapierhandelsplatz gehandelt extent that he does not hold more than werden, soweit sie nicht mehr als 1 % 1 % of the share capital. des Grundkapitals hält. 12 Dauer und Beendigung des 12 Term and Termination of the Service Dienstverhältnisses und des Amtes Agreement and of the Office 12.1 Das Dienstverhältnis beginnt mit dem 12.1 The service agreement commences on Stichtag und ist auf unbestimmte Zeit the Effective Date and is entered into geschlossen. for an indefinite period. 12.2 Die ersten 6 Monate des 12.2 The first 6 months of the managing Geschäftsführerdienstverhältnisses director service relationship are a gelten als Probezeit. Innerhalb der probationary period. During the Probezeit kann das probationary period, the managing Page 17 of 20

Geschäftsführerdienstverhältnis von director service relationship may be beiden Parteien mit einer Frist von vier terminated by both parties with four Wochen gekündigt werden. weeks' notice. 12.3 Nach dem Ende der Probezeit beträgt 12.3 After the expiration of the probationary die beiderseitige Kündigungsfrist 3 period the notice period required from Monate zum Monatsende. Zwingende either party is 3 months to the end of a Verlängerungen der von der month. Any mandatory extension of the Gesellschaft zu beachtenden notice period required from the Kündigungsfrist gelten auch für Company shall also apply to notices Kündigungen durch den given by the Managing Director. Geschäftsführer. 12.4 Das Recht zur außerordentlichen 12.4 The right to terminate without notice for Kündigung aus wichtigem Grund bleibt good cause remains unaffected. A unberührt. Ein wichtiger Grund liegt für violation by the Managing Director of die Gesellschaft insbesondere vor, the infernal limits of authority imposed wenn der Geschäftsführer gegen die upon him constitutes one example of ihm im Innenverhältnis auferlegten such good cause for the Company. Beschränkungen der Geschäftsführung verstößt. 12.5 Die Gesellschaft ist berechtigt, den 12.5 The Company may at any time remove Geschäftsführer jederzeit von seinem the Managing Director from his Office Amte als Geschäftsführer abzuberufen. as managing director. 12.6 Der Geschäftsführer ist nach 12.6 Upon removal from his managing Abberufung von seinem director Office, the Managing Director Geschäftsführeramt zur Leistung der shall not be entitled nor, except for Dienste oder zu sonstigen Tätigkeiten transitional activities, be required to für die Gesellschaft weder berechtigt render Services or other activities for noch mit Ausnahme von Abwicklungs- the Company. The other duties of the oder Übergabetätigkeiten verpflichtet. parties, including loyalty obligations Die übrigen Pflichten der Parteien, and the approval requirement with einschließlich der Treuepflichten und respect to side and other activities, des Genehmigungsvorbehalts remain unaffected. Any remaining betreffend Neben- und anderer vacation must be taken in the period Tätigkeiten, bleiben unberührt. Noch between the expiration of the Office nicht genommener Urlaub ist in der Zeit and the end of the service agreement. nach dem Ende des Amtes bis zum The Managing Director must allow the Ende des Dienstverhältnisses zu amount he has saved in consequence nehmen. Der Geschäftsführer muss of non-performance of the Services to sich auf seine Vergütung den Betrag the Company, or acquired or anrechnen lassen, den er infolge des maliciously omitted to acquire by a Unterbleibens seiner Dienste different use of his service, to be gegenüber der Gesellschaft erspart deducted from his remuneration. oder durch anderweitige Verwendung seiner Dienste erwirbt oder zu erwerben böswillig unterlässt. 13 Compliance 13 Compliance Der Geschäftsführer verpflichtet sich, The Managing Director undertakes to die Compliance-Richtlinien observe the guidelines on compliance (einschließlich der in der IT- (including the requirements set out in Page 18 of 20

Verpflichtungserklärung gemäß Anlage the IT-Declaration pursuant to Exhibit 1 enthaltenen Vorgaben, der Insider 1, the insider trading policy according Trading Richtlinie nach Anlage 2, des to Exhibit 2, the corporate code of Verhaltens- und Ehtikkodex und conduct and ethics and whistleblower Whistleblower Richtlinie der policy pursuant to Exhibit 3 and the Gesellschaft gemäß Anlage 3 sowie External Communications Policy ac- der External Communications Policy cording to Exhibit 4) and accepts nach Anlage 4) zu beachten und these guidelines as a binding part of erkennt diese Regelwerke als Teil this service agreement. dieses Geschäftsführervertrages als verbindlich an. Im Rahmen seiner Tätigkeit für die The Managing Director shall be Gesellschaft ist der Geschäftsführer covered by the Directors & Officers durch eine Vermögensschadens- Insurance of the Company. haftplichtversicherung seitens der Gesellschaft versichert. 14 Ausschlussfristen 14 Preclusive Periods 14.1 Alle Ansprüche, die sich aus dem 14.1 All claims that result from the Geschäftsführerdienstvertrag ergeben, Managing Director Service Agreement sind von den Vertragsschließenden should be claimed in text form by the binnen einer Frist von 3 Monaten, contractors within 3 months after the nachdem der Anspruch entstanden ist claim has emerged and the claimant und der Anspruchsteller von den has known about the claim anspruchsbegründenden Umständen circumstances or should have known Kenntnis erlangt hat oder ohne grobe about them without gross negligence. Fahrlässigkeit hätte erlangen müssen, In case of a refusal by the counterparty in Textform geltend zu machen. Im Falle or in case the counterparty does not ihrer Ablehnung durch die Gegenpartei react within two weeks after the claim oder wenn sich die Gegenpartei nicht is asserted, the claim should be innerhalb von zwei Wochen nach der prosecuted within 3 months. Geltendmachung erklärt, ist der Otherwise, the claim will expire. Anspruch binnen einer Frist von 3 Monaten einzuklagen. Andernfalls verfällt der Anspruch. 14.2 Die Ausschlussfrist aus Ziffer 14.1 gilt 14.2 The preclusive clause in accordance nicht bei Ansprüchen, die aus der with clause 14.1 shall not apply to Verletzung des Lebens, des Körpers liability for claims resulting from loss of oder der Gesundheit sowie aus life, bodily injury or harm to health, as vorsätzlichen oder grob fahrlässigen well as deliberate or grossly negligent Pflichtverletzungen resultieren. Diese breaches of duty. The aforementioned Ausschlussfrist gilt auch nicht für preclusive period shall also not apply gesetzliche Fristen, die keiner to statutory time limits which are no Ausschlussfrist unterliegen dürfen (z.B.: subject to limitation periods (e.g.: Ansprüche aus dem claims deriving from the Minimum Mindestlohngesetz). Wage Act). 15 Schluss- und andere Bestimmungen 15 Miscellaneous 15.1 Dieser Dienstvertrag regelt die 15.1 This service agreement constitutes the vertraglichen Beziehungen der Parteien entire understanding between the abschließend. Nebenabreden sind nicht parties relating to the service. There Page 19 of 20

getroffen. Änderungen und are no ancillary agreements. Any Ergänzungen dieses Vertrages amendments or additions to this bedürfen zu ihrer Wirksamkeit der Agreement shall be made in writing to Schriftform. Etwaige frühere be effective. Any and all prior Absprachen zwischen der Gesellschaft arrangements, if any, between the oder mit der Gesellschaft verbundener Company or companies affiliated with Unternehmen und dem Geschäftsführer the Company and the Managing betreffend das Dienstverhältnis enden Director with respect to the service hiermit. agreement shall terminate herewith. 15.2 Mit dem Stichtag enden alle etwaigen 15.2 All prior service and employment früheren Arbeits- und Dienstverhältnisse agreements, if any, between the zwischen der Gesellschaft oder mit der Company or companies affiliated with Gesellschaft verbundenen the Company and the Managing Unternehmen und dem Director shall terminate upon the Geschäftsführer. Effective Date. 15.3 Ansprüche aus und im Zusammenhang 15.3 Claims under and in connection with mit dem Dienstverhältnis können nicht this Agreement may not be brought in im Urkundsprozess geltend gemacht summary proceedings. werden. 15.4 Sollte eine Bestimmung dieses 15.4 Should any provision of this Vertrages ganz oder teilweise ungültig Agreement, in total or in part, be or sein oder werden, so wird hierdurch die become invalid, the validity of the other Gültigkeit der übrigen Bestimmungen provisions shall not be affected nicht berührt. Anstelle der ungültigen thereby. The invalid provision shall be Bestimmung gilt diejenige gültige replaced by such valid provision which Bestimmung als vereinbart, die dem corresponds as closely as possible to Sinn und Zweck der ungültigen the intention and purpose of the invalid Bestimmung am nächsten kommt. Dies Provision. The same shall apply, if the gilt auch dann, wenn die Ungültigkeit invalidity is based on a measurement der Bestimmung auf einem Maß der of Performance or time, in which case Leistung oder der Zeit beruht; es gilt the extent permitted by law shall be dann das rechtlich zulässige Maß. applicable. 15.5 Das Dienstverhältnis untersteht 15.5 The service agreement shall be deutschem Recht. governed by German law. 15.6 Die deutsche Fassung dieses Vertrages 15.6 The German Version of this Agreement ist maßgeblich. shall be authoritative. Für die Gesellschafter der Gesellschaft/ Geschäftsführer/Managing Director: On behalf of the Company’s shareholder: Name/name: Stephen S. Yoder Name/name: Dr. Hitto Kaufmann Ort/Place: __Boston____________ Ort/Place: __Stuttgart________ Datum/Date:__22 February 2019____ Datum/Date: ___23 February 2019___ Page 20 of 20

Unterschrift/ Unterschrift/ Signature: /s/ Stephen S. Yoder Signature: /s/ Dr. Hitto Kaufmann Anlage 1: IT- Exhibit 1: IT-Declaration Verpflichtungserklärung Anlage 2: Insider Trading Richtlinie Exhibit 2: Insider Trading Policy Anlage 3: Verhaltens- und Exhibit 3: Corporate Code of Ethikkodex und Conduct and Ethics and Whistleblower Richtlinie Whistleblower Policy Anlage 4: External Communications Exhibit 4: External Communications Policy Policy Page 21 of 20



Nevada		30-0784346
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

255 State Street, 9th Floor Boston, MA United States		02109
(Address of principal executive offices)		(Zip Code)



Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $0.001 par value per share	PIRS	The Nasdaq Capital Market



Large accelerated filer	☐	Accelerated filer	ý

Non-accelerated filer	☐	Smaller reporting company	ý

		Emerging growth company	ý



	Page
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)	1
Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018	1
Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months ended September 30, 2019 and 2018	2
Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Nine Months ended September 30, 2019 and 2018	3
Condensed Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2019 and 2018	5
Notes to the Condensed Consolidated Financial Statements	6
Item 2. Management´s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3. Quantitative and Qualitative Disclosures about Market Risk	34
Item 4. Controls and Procedures	34
PART II: OTHER INFORMATION
Item 1. Legal Proceedings	36
Item 1A. Risk Factors	36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3. Defaults Upon Senior Securities	36
Item 4. Mine Safety Disclosures	36
Item 5. Other Information	36
Item 6. Exhibits	36
SIGNATURES	38



	September 30			December 31,
	2019			2018
Assets
Current assets:
Cash and cash equivalents	$	46,068		$	74,867
Short term investments	40,175			53,240
Accounts receivable	6,952			2,701
Prepaid expenses and other current assets	4,778			4,574
Total current assets	97,973			135,382
Property and equipment, net	11,008			5,049
Other non-current assets	7,770			910
Total assets	$	116,751		$	141,341
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	5,436		$	3,350
Accrued expenses and other current liabilities	7,170			9,114
Deferred revenues, current portion	27,242			35,612
Total current liabilities	39,848			48,076
Deferred revenue, net of current portion	44,179			53,303
Other long-term liabilities	12,082			27
Total liabilities	96,109			101,406
Stockholders’ equity:
Preferred stock, $0.001 par value per share, 10,000,000 shares authorized at September 30, 2019 and December 31, 2018, respectively
Series A Convertible, 2,907 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	—			—
Series B Convertible, 5,000 shares issued and outstanding at September 30, 2019. No shares issued and outstanding at December 31, 2018.	—			—
Common stock, $0.001 par value per share, 300,000,000 shares authorized and 49,392,706 and 54,151,219 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	49			54
Additional paid-in capital	194,695			189,929
Accumulated other comprehensive loss	(697		)	(2,982		)
Accumulated deficit	(173,405		)	(147,066		)
Total stockholders’ equity	20,642			39,935
Total liabilities and stockholders’ equity	$	116,751		$	141,341



ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



	Three Months Ended September 30						Nine Months Ended September 30
	2019			2018			2019			2018
Revenue	$	15,132		$	8,345		$	29,009		$	24,187
Operating expenses
Research and development	13,211			11,401			40,880			28,492
General and administrative	4,835			4,748			13,956			13,878
Total operating expenses	18,046			16,149			54,836			42,370
Loss from operations	(2,914		)	(7,804		)	(25,827		)	(18,183		)
Interest income	377			504			1,332			1,491
Other income (expense), net	(55		)	1,147			(203		)	1,472
Loss before income taxes	(2,592		)	(6,153		)	(24,698		)	(15,220		)
Income tax benefit	—			—			—			(148		)
Net loss	$	(2,592	)	$	(6,153	)	$	(24,698	)	$	(15,072	)

Other comprehensive income (loss):
Foreign currency translation	1,636			27			1,908			546
Unrealized (loss) gain on available-for-sale securities	374			(506		)	377			1,096
Comprehensive (loss) income	$	(582	)	$	(6,632	)	$	(22,413	)	$	(13,430	)
Net loss per share
Basic and diluted	$	(0.05	)	$	(0.11	)	$	(0.50	)	$	(0.29	)
Weighted average number of common shares outstanding
Basic and diluted	49,353			54,089			49,805			52,721



	Series A convertible preferred shares			Series B convertible preferred shares			Common shares			Additional paid-in capital		Accumulated other comprehensive loss			Accumulated deficit			Total Stockholders' equity
	No. of shares	Share capital		No. of shares	Share capital		No. of shares	Share capital		Additional paid-in capital		Accumulated other comprehensive loss			Accumulated deficit			Total Stockholders' equity
Balance as of June 30, 2018	2,907	$	—	—	—		54,008	$	54	$	187,066	$	(2,574	)	$	(129,231	)	$	55,315
Net loss	—	—		—	—		—	—		—		—			(6,153		)	(6,153		)
Foreign currency translation adjustment	—	—		—	—		—	—		—		27			—			27
Unrealized gains/(losses) on investments	—	—		—	—		—	—		—		(506		)	—			(506		)
Stock based compensation expense	—	—		—	—		—	—		1,302		—			—			1,302
Issuance of common stock resulting from exercise of stock options	—	—		—	—		76	—		144		—			—			144
Issuance of common stock resulting from exercise of warrants	—	—		—	—		66	—		132		—			—			132
Balance as of September 30, 2018	2,907	$	—	—	$	—	54,150	$	54	$	188,644	$	(3,053	)	$	(135,384	)	$	50,261

Balance as of June 30, 2019	2,907	$	—	5,000	—		49,262	$	49	$	192,956	$	(2,707	)	$	(170,813	)	$	19,485
Net loss	—	—		—	—		—	—		—		—			(2,592		)	(2,592		)
Foreign currency translation adjustment	—	—		—	—		—	—		—		1,636			—			1,636
Unrealized gains/(losses) on investments	—	—		—	—		—	—		—		374			—			374
Stock based compensation expense	—	—		—	—		—	—		1,518		—			—			1,518
Issuance of common stock resulting from exercise of stock options	—	—		—	—		61	—		121		—			—			121
Issuance of common stock resulting from exercise of warrants	—	—		—	—		70	—		100		—			—			100
Balance as of September 30, 2019	2,907	$	—	5,000	$	—	49,393	$	49	$	194,695	$	(697	)	$	(173,405	)	$	20,642


•	Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.


•	Level 2 utilizes quoted market prices in markets that are not active, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency.


•	Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date.



	As Reported, December 31, 2018			ASC 606 Adjustment			Adjusted, January 1, 2019
Consolidated Balance Sheet Data (in thousands):
Prepaid expenses and other current assets	$	4,574		$	716		$	5,290
Other non-current assets	910			1,120			2,030
Total Assets	$	141,341		$	1,836		$	143,177
Deferred revenue, net of current portion	$	53,303		$	3,477		$	56,780
Total Liabilities	101,406			3,477			104,883
Accumulated deficit	(147,066		)	(1,641		)	(148,707		)
Total stockholders' equity	39,935			(1,641		)	38,294
Total liabilities and stockholders' equity	$	141,341		$	1,836		$	143,177



	September 30, 2019
	As Reported, ASC 606			Adjustments			Adjusted Balance, ASC 605
Condensed Consolidated Balance Sheet Data (in thousands):
Prepaids and other current assets	$	4,778		$	(646	)	$	4,132
Other non-current assets	7,770			(808		)	6,962
Total Assets	$	116,751		$	(1,454	)	$	115,297
Deferred revenues, current portion	27,242			9,774			37,016
Deferred revenue, net of current portion	44,179			(10,384		)	33,795
Total Liabilities	96,109			(610		)	95,499
Accumulated Deficit	(173,405		)	(844		)	(174,249		)
Total stockholders' equity	20,642			(844		)	19,798
Total liabilities and stockholders' equity	$	116,751		$	(1,454	)	$	115,297



	Three Months Ended September 30, 2019									Nine Months Ended September 30, 2019
	As Reported, ASC 606			Adjustments			Adjusted Balance, ASC 605			As Reported, ASC 606			Adjustments			Adjusted Balance, ASC 605
Condensed Consolidated Statement of Operations Data (in thousands):
Revenue	$	15,132		$	(2,195	)	$	12,937		$	29,009		$	(2,717	)	$	26,292
General and administrative expenses	4,835			(191		)	4,644			13,956			(303		)	13,653
Loss from operations	(2,914		)	(2,386		)	(5,300		)	(25,827		)	(3,020		)	(28,847		)
Loss before income taxes	(2,592		)	(2,386		)	(4,978		)	(24,698		)	(3,020		)	(27,718		)
Net loss	$	(2,592	)	$	(2,386	)	$	(4,978	)	$	(24,698	)	$	(3,020	)	$	(27,718	)
Comprehensive loss	$	(582	)	$	(2,386	)	$	(2,968	)	$	(22,413	)	$	(3,020	)	$	(25,433	)



	Research, Development & Commercial Milestones		Sales Milestones
Seattle Genetics	$	769	$	450
AstraZeneca	1,111		960
Servier	778		688
Total potential milestone payments	$	2,658	$	2,098



	Contractual maturity (in days)	Amortized Cost		Unrealized gains		Unrealized losses		Fair Value
Investments
U.S. treasuries	138-167	$	3,631	$	68	$	—	$	3,699
Asset-backed securities	46-198	8,374		70		—		8,444
Corporate bonds	7-270	27,842		190		—		28,032
Total		$	39,847	$	328	$	—	$	40,175



	September 30			December 31,
	2019			2018
Laboratory equipment/furniture	$	8,062		$	7,431
Office and computer equipment	702			661
Leasehold improvements	5,633			323
Property and equipment, at cost	14,397			8,415
Accumulated depreciation	(3,389		)	(3,366		)
Property and equipment, net	$	11,008		$	5,049


•	PRS-343, our lead IO program, is a fusion protein comprising a HER2-targeting antibody genetically linked to 4-1BB-targeting Anticalin proteins. PRS-343 is designed to drive tumor-localized T-cell activation through tumor-targeted drug clustering mediated by HER2 expressed on tumor cells. This program was the first bispecific T-cell costimulatory agonist to enter clinical development.



	Total		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
September 30, 2019
Money market funds, included in cash equivalents	$	14,525	$	14,525	$	—	$	—
Investments - U.S. treasuries	3,699		3,699		—		—
Investments - Asset-backed securities	8,444		—		8,444		—
Investments - Corporate bonds	28,032		—		28,032		—
Total	$	54,700	$	18,224	$	36,476	$	—

December 31, 2018
Money market funds, included in cash equivalents	$	7,791	$	7,791	$	—	$	—
Corporate bonds, included in cash equivalents	10,910		—		10,910		—
Investments - U.S. treasuries	7,518		7,518		—		—
Investments - Asset-backed securities	5,758		—		5,758		—
Investments - Corporate bonds	39,964		—		39,964		—
Total	$	71,941	$	15,309	$	56,632	$	—


•	senior to any class or series of capital stock of the Company created after the designation of the Series B Preferred Stock specifically ranking by its terms junior to the Series B Preferred Stock, or the Junior Securities;


•	on parity with all shares of Series A Preferred Stock and any class or series of capital stock of the Company created after the designation of the Series B Preferred Stock specifically ranking by its terms on parity with the Series B Preferred Stock, or the Parity Securities; and


•	junior to any class or series of capital stock of the Company created after the designation of the Series B Preferred Stock specifically ranking by its terms senior to the Series B Preferred Stock, or the Senior Securities;



Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.


•	PRS-080 is an Anticalin protein that binds to hepcidin, a natural regulator of iron in the blood. PRS-080 is designed to target hepcidin for the treatment of functional iron deficiency in anemic patients with chronic kidney disease, or CKD, particularly in end-stage renal disease patients requiring dialysis.


•	internal recurring costs, such as personnel-related costs (salaries, employee benefits, equity compensation and other costs), materials and supplies, facilities and maintenance costs; and


•	fees paid to external parties who provide us with contract services, such as preclinical testing, manufacturing and related testing and clinical trial activities.


•	The $0.5 million increase in collaboration revenues in the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018 relates to increased research and development activities under our collaboration with Servier.


•	The $0.9 million increase for our respiratory programs period-over-period is due primarily to our ongoing GMP activities for phase 2a readiness for PRS-060. We also incurred higher pre-clinical and lab supply expenses as we continue investing in our other proprietary and partnered programs in 2019 compared to 2018;


•	The $0.1 million decrease in our immuno-oncology program spending period-over-period is due primarily to a slightly lower spending on our preclinical IO programs on a period-over-period basis;


•	The $0.2 million decrease for our anemia program, PRS-080, period-over-period is mainly due to lower clinical costs as the phase 2a study was largely completed earlier in 2019; and


•	The $1.3 million increase in other research and development activities expenses is mainly due to higher personnel expenses, including bonus and stock compensation, due to an overall increase in headcount, and an increase in allocated facility costs due to higher non-cash rent charges for the new Hallbergmoos facility that is being prepared for occupancy.


•	The $5.2 million increase in our immuno-oncology program spending period-over-period is due primarily to an increase in clinical trials costs incurred for PRS-343 and drug product manufacturing for PRS-343, PRS-344 and other proprietary programs;


•	The $1.3 million decrease for our anemia program, PRS-080, period-over-period is mainly due to lower clinical costs as the phase 2a study wound down in 2019 compared to the same period in 2018; and


•	The $5.0 million increase in other research and development activities expenses is mainly due to higher personnel expenses, including bonus and stock compensation, due to an overall increase in headcount, an increase in recruiting costs, and an increase in allocated facility costs due to higher non-cash rent charges for the new Hallbergmoos facility that is being prepared for occupancy.


•	the scope, rate of progress, results and cost of our clinical studies, preclinical testing and other related activities;


•	the cost of manufacturing clinical supplies and establishing commercial supplies of our drug candidates and any products that we may develop;


•	the number and characteristics of drug candidates that we pursue;


•	the cost and timing of establishing sales, marketing and distribution capabilities;