Company: KROS
Filing Date: 2025-05-27
Form Type: DEFA14A
Source: 0001104659-25-052890
Chunk: 2

Company: Keros Therapeutics, Inc.
Filing Date: 2025-05-27
Form: DEFA14A
Chunk 2
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 review process and its continued willingness to engage with shareholders – we do             
 not believe there is a sufficiently strong accountability rationale to warrant withholding support from either nominee at this time.” |

1
Permission to obtain quotes was neither sought nor obtained.

| · | “Although ADAR1’s arguments for increased capital discipline may resonate with shareholders, we believe the board’s                   
 decision to retain flexibility through a formal strategic review – led by a special committee of independent, disinterested directors 
 – represents a reasonable and measured approach at this time. While a substantial capital return may ultimately be warranted, we      
 believe this is better determined in the context of a completed and comprehensive evaluation of strategic alternatives.”              |

| · | “While ADAR1 has characterized the Rights Plan as an entrenchment device, the plan’s adoption appears to us to be reasonably 
 timed and narrowly scoped, and does not reflect the more aggressive features often seen in contested situations.”            |

| · | “Although shareholder rights plans are generally viewed with caution by investors and Glass Lewis, particularly in the context            
 of public shareholder dissent, the facts of this case do not, in our view, suggest that the board acted in bad faith or sought to preempt 
 legitimate shareholder participation.”                                                                                                    |

| · | “In our view, the board’s recent initiation of a strategic review, led by an independent special committee, represents 
 a constructive step in addressing shareholder concerns.”                                                               |

Keros issued the following statement in response to ADAR1 Capital Management,
LLC (“ADAR1”)’s misleading claims:

In a recent press release, hedge fund ADAR1 makes claims
that the recent voting recommendation by Institutional Shareholder Services (“ISS”) in connection with the election of directors
at Keros’ upcoming Annual Meeting constitutes an endorsement of ADAR1’s aggressive campaign to oppose two highly qualified
members of the Company’s Board of Directors (the “Board”). This notion is false and misleading.

To be clear, the ISS recommendation is based on their standard
voting guidelines for “uncontested” director elections and was not reviewed by its special situations team that typically
evaluates these types of campaigns. And unlike Glass Lewis, the report does not address any of ADAR1’s misleading allegations or
arguments.

ADAR1’s aggressive campaign to oppose two of the Board’s
highly qualified directors demonstrates a troubling disregard for Board diversity and critical expertise at a pivotal time for the Company.

The Keros Board comprises nine directors, all of whom are
independent except for the Company