13D Filing: Longitude Capital Partners III, LLC and Molecular Templates Inc. (MTEM)

Pursuant to the terms of the Securities
Purchase Agreement, Dr. Hirsch was appointed as a member of the Board effective as August 1, 2017 upon completion of
the Financing. As disclosed in the Issuer’s Current Report on Form 8-K filed with the Commission on August 7, 2017,
it is expected that following the Merger the Issuer will provide compensation to its non-employee directors, including Dr. Hirsch,
in line with the Issuer’s director compensation practices before the Merger. According to the Issuer’s Registration
Statement on Form S-4 declared effective by the Commission on June 30, 2017, such compensation generally consists of cash
compensation, including an annual retainer for service as a member of the Board and supplemental annual retainers for membership
and chair positions on certain of the Board’s committees, and equity compensation, including stock option or other equity
awards granted upon appointment as a director and on an annual basis. In addition, in connection with his service on the Board,
Dr. Hirsch has entered into an indemnification agreement with the Issuer, pursuant to which, in general, the Issuer has agreed
to indemnify Dr. Hirsch to the fullest extent permitted by law and public policy for claims arising in his capacity as a director
of the Issuer.

Item
7. Material to be Filed as Exhibits.