X0306 4 2020-03-13 0 0001787306 Arcutis Biotherapeutics, Inc. ARQT 0001801061 Watanabe Todd Franklin C/O ARCUTIS BIOTHERAPEUTICS, INC. 2945 TOWNSGATE ROAD, SUITE 110 WESTLAKE VILLAGE CA 91361 1 1 0 0 President and CEO Common Stock 2020-03-13 4 M 0 59481 1.6806 A 566928 D Common Stock 49981 I By LLC Common Stock 17850 I By Trust Common Stock 17850 I By Trust Common Stock 124956 I By Trust Stock Option (Right to Buy) 1.6806 2020-03-13 4 M 0 59481 0.00 D 2029-03-13 Common Stock 59481 158492 D The transaction by the Reporting Person is an exercise of an in-the-money option for cash consideration and does not involve the sale of any shares. The securities are held of record by Watanabe Ventures, LLC, of which the Reporting Person is the Chief Operating Officer. The Reporting Person disclaims beneficial ownership of such securities except to the extent of his pecuniary interest therein, and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership of such securities for purposes of Section 16 or for any other purposes. The securities are held of record by The Anderson Prest Watanabe Irrevocable Trust, of which the Reporting Person is the trustee. The Reporting Person disclaims beneficial ownership of such securities except to the extent of his pecuniary interest therein, and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership of such securities for purposes of Section 16 or for any other purposes. The securities are held of record by The John Franklin Watanabe Trust, of which the Reporting Person is the trustee. The Reporting Person disclaims beneficial ownership of such securities except to the extent of his pecuniary interest therein, and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership of such securities for purposes of Section 16 or for any other purposes. The securities are held of record by The Watanabe 2016 Irrevocable Trust, of which the Reporting Person's children are beneficiaries. The Reporting Person disclaims beneficial ownership of such securities except to the extent of his pecuniary interest therein, and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership of such securities for purposes of Section 16 or for any other purposes. The option vests monthly over a four year period beginning upon the achievement of certain company milestones, subject to the Reporting Person's continuous provision of services to the Issuer on each vesting date. The option contains an early-exercise provision and is exercisable as to unvested shares, subject to the Issuer's right of repurchase. /s/ Todd Franklin Watanabe, by John W. Smither, as Attorney-in-Fact 2020-03-16