Exhibit 4.2


 


INVESTORS’ RIGHTS AGREEMENT


 


THIS INVESTORS’ RIGHTS AGREEMENT
(this “Agreement”), is made as of the 5th day of August, 2020 (the “Effective Date”), by and among
Aerovate Therapeutics Inc., a Delaware corporation (the “Company”), and each of the investors listed on Schedule
A hereto, each of which is referred to in this Agreement as an “Investor” and any Additional Purchaser (as defined
in the Purchase Agreement) that becomes a party to this Agreement in accordance with Section 6.9 hereof.


 


RECITALS


 


WHEREAS, the Company and the Investors
are parties to that certain Series A Preferred Stock Purchase Agreement of even date herewith (the “Purchase Agreement”);
and


 


WHEREAS, in order to induce the
Company to enter into the Purchase Agreement and to induce the Investors to invest funds in the Company pursuant to the Purchase Agreement,
the Investors and the Company hereby agree that this Agreement shall govern the rights of the Investors to cause the Company to register
shares of Common Stock issuable to the Investors, to receive certain information from the Company, and to participate in future equity
offerings by the Company, and shall govern certain other matters as set forth in this Agreement;


 


NOW, THEREFORE, the parties hereby agree as follows:


 


		1.	Definitions. For purposes of this Agreement:



 


1.1           “Affiliate”
means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common
control with such Person, including without limitation any general partner, managing member, officer, director or trustee of such Person,
or any venture capital fund, investment fund, registered investment company, asset manager or investment adviser now or hereafter existing
that is controlled by one or more general partners, managing members or investment adviser of, or shares the same management company or
investment adviser with, such Person.


 


		1.2	“Board of Directors” means the board of directors of the Company.



 


1.3           “Certificate
of Incorporation” means the Company’s Amended and Restated Certificate of Incorporation, as amended and/or restated from
time to time.


 


1.4           “Common
Stock” means shares of the Company’s common stock, par value $0.0001 per share.


 


1.5           “Competitor”
means a Person engaged, directly or indirectly (including through any partnership, limited liability company, corporation, joint venture
or similar arrangement (whether now existing or formed hereafter)), in the development of inhalable formulations of imatinib for the treatment
of rare cardiopulmonary disease and any other business the Company may engage in from time to time, but shall not include any financial
investment firm or collective investment vehicle that, together with its Affiliates, holds less than twenty percent (20%) of the outstanding
equity of any Competitor and does not, nor do any of its Affiliates, have a right to designate any members of the board of directors of
any Competitor; provided that none of Sofinnova Venture Partners X, L.P. (“Sofinnova”), RA Capital Management,
L.P. (“RA Capital”), Osage University Partners III, L.P. (“OUP”), Atlas Venture Fund XII, L.P. (“Atlas”),
Cormorant Private Healthcare Fund II, LP (“Cormorant”), Citadel Multi-Strategy Equities Master Fund Ltd. (“Surveyor”),
or any of their Affiliates, shall be deemed to be a Competitor hereunder.


 






    	 



     


    

 


1.6           “Damages”
means any loss, damage, claim or liability (joint or several) to which a party hereto may become subject under the Securities Act,
the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability (or any action in respect
thereof) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in
any registration statement of the Company, including any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required to be stated
therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the
indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any
rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law.


 


1.7           “Derivative
Securities” means any securities or rights convertible into, or exercisable or exchangeable for (in each case, directly or indirectly),
Common Stock, including options and warrants.


 


1.8           “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.


 


1.9           “Excluded
Registration” means (i) a registration relating to the sale or grant of securities to employees of the Company or a subsidiary
pursuant to a stock option, stock purchase, equity incentive or similar plan; (ii) a registration relating to an SEC Rule 145
transaction; (iii) a registration on any form that does not include substantially the same information as would be required to be
included in a registration statement covering the sale of the Registrable Securities; or (iv) a registration in which the only Common
Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered.


 


1.10         “Form S-1”
means such form under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently
adopted by the SEC.


 


1.11         “Form S-3”
means such form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently
adopted by the SEC that permits forward incorporation of substantial information by reference to other documents filed by the Company
with the SEC.


 


1.12         “GAAP”
means generally accepted accounting principles in the United States as in effect from time to time.


 


		1.13	“Holder” means any holder of Registrable Securities who is a party to this Agreement.



 


1.14        
 “Immediate Family Member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including, adoptive relationships, of a
natural person referred to herein.


 


1.15         “Initiating
Holders” means, collectively, Holders who properly initiate a registration request under this Agreement.


 


1.16         “IPO”
means the Company’s first underwritten public offering of its Common Stock under the Securities Act.


 


1.17         “Key
Employee” means any executive-level employee (including, division director and vice president-level positions) as well as any
employee who, either alone or in concert with others, develops, invents, programs, or designs any Company Intellectual Property (as defined
in the Purchase Agreement).


 



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1.18         “Major
Investor” means (i) each of Sofinnova, RA Capital, Blackwell Partners LLC – Series A, OUP, Atlas, Cormorant
and Surveyor, together with each of their Affiliates, for so long as any such named Investor and such Investor’s Affiliates hold
all shares of Registrable Securities purchased by such Investor and such Investor’s Affiliates pursuant to the Purchase Agreement,
and (ii) additionally, any Investor (including those Investors named in clause (i) hereof that no longer qualify to be Major
Investors pursuant to clause (i) hereof) that, individually or together with such Investor’s Affiliates, holds at least 1,000,000
shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification
effected after the date hereof), and, in each case, each Person to whom any of the rights of any such Investor are assigned pursuant to
Section 6.1.


 


1.19         “New
Securities” means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options,
or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable
into or exercisable for such equity securities.


 


1.20         “Person”
means any individual, corporation, partnership, trust, limited liability company, association or other entity.


 


1.21         “Qualified
Public Offering” means the closing of the sale of shares of Common Stock to the public at a price per share of at least $5.679
(prior to giving effect to underwrites discounts and commissions and subject to appropriate adjustment in the event of any stock dividend,
stock split, combination or other similar recapitalization with respect to the Common Stock), in a firm-commitment underwritten public
offering pursuant to an effective registration statement under the Securities Act resulting in at least $50,000,000 of gross proceeds
to the Company and in connection with such offering the Common Stock is listed for trading on the Nasdaq Stock Market's National Market,
the New York Stock Exchange or another exchange or marketplace approved the Board of Directors.


 


1.22         “Registrable
Securities” means (i) the Common Stock issuable or issued upon conversion of the Preferred Stock, excluding any Common
Stock issued upon conversion of the Series A Preferred Stock pursuant to the “Special Mandatory Conversion” provisions
in the Certificate of Incorporation; (ii) any Common Stock, or any Common Stock issued or issuable (directly or indirectly) upon
conversion and/or exercise of any other securities of the Company, acquired by the Investors after the date hereof, excluding any Common
Stock issued upon conversion of the Series A Preferred Stock pursuant to the “Special Mandatory Conversion” provisions
in the Certificate of Incorporation; and (iii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant,
right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of,
the shares referenced in clauses (i) and (ii) above; excluding in all cases, however, any Registrable Securities
sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to Subsection 6.1,
and excluding for purposes of Section 2 any shares for which registration rights have terminated pursuant to Subsection
2.13 of this Agreement. A Holder of Registrable Securities need not convert such Registrable Securities into Common Stock prior to
requesting registration hereunder but may make such request in contemplation of conversion of such Registrable Securities into Common
Stock prior to the effectiveness of such registration.


 


1.23         “Registrable
Securities then outstanding” means the number of shares determined by adding the number of shares of outstanding Common
Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly) pursuant to
then exercisable and/or convertible securities that are Registrable Securities.


 






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1.24         “Requisite
Holders” means the holders of at least sixty-five percent (65%) of the outstanding shares of Series A Preferred Stock (excluding
Pre-Purchased Shares (as defined in the Purchase Agreement) for so long as such shares remain Pre-Purchased Shares in accordance with
the terms and conditions of the Purchase Agreement), voting together as a single class on an as converted into Common Stock basis.


 


1.25         “Restricted
Securities” means the securities of the Company required to be notated with the legend set forth in Subsection 2.12(b) hereof.


 


		1.26	“SEC” means the Securities and Exchange Commission.



 


		1.27	“SEC Rule 144” means Rule 144 promulgated
by the SEC under the Securities Act. Securities Act.



 


		1.28	“SEC Rule 145” means Rule 145 promulgated by the SEC under the



 


 1.29         “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.




 


1.30         “Selling
Expenses” means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of Registrable
Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel
borne and paid by the Company as provided in Subsection 2.6.


 


1.31         “Series A
Director” means any director of the Company that the holders of record of the Series A Preferred Stock are entitled to
elect, exclusively as a separate class, pursuant to the Certificate of Incorporation.


 


1.32         “Series A
Preferred Stock” means shares of the Company’s Series A Preferred Stock, par value $0.0001 per share.


 


1.33         “Series Seed
Preferred Stock” means shares of the Company’s Series Seed Preferred Stock, par value $0.0001 per share.


 


		2.	Registration Rights. The Company covenants and agrees as follows:



 


		2.1	Demand Registration.



 


(a)            Form S-1
Demand. If at any time after the earlier of (i) three (3) years after the date of this Agreement or (ii) one
hundred eighty (180) days after the effective date of the registration statement for the IPO, the Company receives a request from
Requisite Holders that the Company file a Form S-1 registration statement with respect to at least thirty- five percent (35%)
of the Registrable Securities then outstanding (or a lesser percent if the anticipated aggregate offering price, net of Selling
Expenses, would exceed $5 million), then the Company shall (x) within ten (10) days after the date such request is given,
give notice thereof (the “Demand Notice”) to all Holders other than the Initiating Holders; and (y) as soon
as practicable, and in any event within sixty (60) days after the date such request is given by the Initiating Holders, file a
Form S-1 registration statement under the Securities Act covering all Registrable Securities that the Initiating Holders
requested to be registered and any additional Registrable Securities requested to be included in such registration by any other
Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is
given, and in each case, subject to the limitations of Subsections 2.1(c) and 2.3.


 






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(b)
            Form S-3 Demand. If at any time when it is eligible to
use a Form S-3 registration statement, the Company receives a request from the Requisite Holders that the Company file a Form S-3
registration statement with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate offering price,
net of Selling Expenses, of at least $1 million, then the Company shall (i) within ten (10) days after the date such request
is given, give a Demand Notice to all Holders other than the Initiating Holders; and (ii) as soon
as practicable, and in any event within forty-five (45) days after the date such request is given by the Initiating Holders, file a Form S-3
registration statement under the Securities Act covering all Registrable Securities requested to be included in such registration by
any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice
is given, and in each case, subject to the limitations of Subsections 2.1(c) and 2.3.


 


(c)            Notwithstanding
the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this Subsection 2.1 a
certificate signed by the Company’s chief executive officer stating that in the good faith judgment of the Board of Directors
it would be materially detrimental to the Company and its stockholders for such registration statement to either become effective or
remain effective for as long as such registration statement otherwise would be required to remain effective, because such action
would (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving
the Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for
preserving as confidential; or (iii)  render
the Company unable to comply with requirements under the Securities Act or Exchange Act, then the Company shall have the right to
defer taking action with respect to such filing, and any time periods with respect to filing or effectiveness thereof shall be
tolled correspondingly, for a period of not more than thirty (30) days after the request of the Initiating Holders is given; provided, however,
that the Company may not invoke this right more than once in any twelve (12) month period.


 


(d)            The
Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Subsection
2.1(a) (i) during the period that is sixty (60) days before the Company’s good faith estimate of the date of
filing of, and ending on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration, provided
that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become
effective; (ii) after the Company has effected two registrations pursuant to Subsection 2.1(a); or (iii) if the
Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3
pursuant to a request made pursuant to Subsection 2.1(b). The Company shall not be obligated to effect, or to take any action
to effect, any registration pursuant to Subsection 2.1(b) (i) during the period that is thirty (30) days before the
Company’s good faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the effective date
of, a Company-initiated registration, provided that the Company is actively employing in good faith commercially reasonable
efforts to cause such registration statement to become effective; or (ii) if the Company has effected two registrations
pursuant to Subsection 2.1(b) within the twelve (12) month period immediately preceding the date of such request. A
registration shall not be counted as “effected” for purposes of this Subsection 2.1(d) until such time as
the applicable registration statement has been declared effective by the SEC, unless the Initiating Holders withdraw their request
for such registration, elect not to pay the registration expenses therefor, and forfeit their right to one demand registration
statement pursuant to Subsection 2.6, in which case such withdrawn registration statement shall be counted as
 “effected” for purposes of this Subsection 2.1(d); provided, that if such withdrawal is during a period
the Company has deferred taking action pursuant to Subsection 2.1(c), then the Initiating Holders may withdraw their request
for registration and such registration will not be counted as “effected” for purposes of this Subsection
2.1(d).


 






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2.2            Company
Registration. If the Company proposes to register (including, for this purpose, a registration effected by the Company for
stockholders other than the Holders) any of its securities under the Securities Act in connection with the public offering of such
securities solely for cash (other than in an Excluded Registration), the Company shall, at such time, promptly give each Holder
notice of such registration. Upon the request of each Holder given within twenty (20) days after such notice is given by the
Company, the Company shall, subject to the provisions of Subsection 2.3, cause to be registered all of the Registrable
Securities that each such Holder has requested to be included in such registration. The Company shall have the right to terminate or
withdraw any registration initiated by it under this Subsection
2.2  before
the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in such
registration. The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance
with Subsection 2.6.


 


		2.3	Underwriting Requirements.



 


(a)            If,
pursuant to Subsection 2.1, the Initiating Holders intend to distribute the Registrable Securities covered by their request
by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to Subsection 2.1, and
the Company shall include such information in the Demand Notice. The underwriter(s) will be selected by the Initiating Holders,
subject only to the reasonable approval of the Board of Directors. In such event, the right of any Holder to include such
Holder’s Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such
underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in Subsection
2.4(e)) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting.
Notwithstanding any other provision of this Subsection 2.3, if the underwriter(s) advise(s) the Initiating Holders
in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders shall
so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable
Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the
Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder or in such
other proportion as shall mutually be agreed to by all such selling Holders; provided, however, that the number of
Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other securities are
first entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with the above provisions, the
Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.
For purposes of the provision in this Subsection 2.3(a) concerning apportionment, for any selling Holder that is a
partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and
Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired
members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single “selling Holder,”
and any pro rata reduction with respect to such “selling Holder” shall be based upon the aggregate number of Registrable
Securities owned by all Persons included in such “selling Holder,” as defined in this sentence.


 






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(b)            In
connection with any offering involving an underwriting of shares of the Company’s capital stock pursuant to Subsection
2.2, the Company shall not be required to include any of the Holders’ Registrable Securities in such underwriting unless
the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such
quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company. If
the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds
the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is
compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such
securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not
jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to
be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be
allocated among the selling Holders in proportion (as nearly as practicable to) the number of Registrable Securities owned by each
selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders. To facilitate the allocation
of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any
Holder to the nearest one hundred (100) shares. Notwithstanding the foregoing, in no event shall (i) the
number of Registrable Securities included in the offering be reduced unless all other securities (other than securities to be sold
by the Company) are first entirely excluded from the offering, or (ii) the number of Registrable Securities included in the
offering be reduced below thirty percent (30%) of the total number of securities included in such offering, unless such offering is
the IPO, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no
other stockholder’s securities are included in such offering. For purposes of the provision in this Subsection
2.3(b) concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation,
the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate
Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the
foregoing Persons, shall be deemed to be a single “selling Holder,” and any pro rata reduction with respect to such
 “selling Holder” shall be based upon the aggregate number of Registrable Securities owned by all Persons included in
such “selling Holder,” as defined in this sentence.


 


(c)            For
purposes of Subsection 2.1, a registration shall not be counted as “effected” if, as a result of an exercise of
the underwriter’s cutback provisions in Subsection 2.3(a), fewer than fifty percent (50%) of the total number of
Registrable Securities that Holders have requested to be included in such registration statement are actually included.


 


2.4            Obligations
of the Company. Whenever required under this Section 2 to effect the registration of any Registrable Securities, the
Company shall, as expeditiously as reasonably possible:


 






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(a)            prepare
and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable
efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the
Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty
(120) days or, if earlier, until the distribution contemplated in the registration statement has been completed; provided, however,
that (i) such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder
refrains, at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities
included in such registration, and (ii) in the case of any registration of Registrable Securities on Form S-3 that are
intended to be offered on a continuous or delayed basis, subject to compliance with applicable SEC rules, such one hundred twenty
(120) day period shall be extended for up to sixty (60) days, if necessary, to keep the registration statement effective until all
such Registrable Securities are sold;


 


(b)            prepare
and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such
registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered
by such registration statement;


 


(c)            furnish
to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act,
and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;


 


(d)            use
its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities
or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided that the Company shall
not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless
the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;


 


(e)            in
the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary
form, with the underwriter(s) of such offering;


 


(f)             notify
each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required
to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. As promptly as practicable
thereafter, the Company will prepare and file with the SEC, and furnish without charge to the appropriate Holders and managing underwriter(s),
if any, an amendment or supplement to such registration statement or prospectus in order to cause such registration statement or prospectus
not to include any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances then existing and will furnish such copies thereof as the
Holders or any underwriters may reasonably request;


 


(g)            use
its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a
national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued
by the Company are then listed;


 



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(h)            provide
a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all
such Registrable Securities, in each case not later than the effective date of such registration;


 


(i)             promptly
make available for inspection by the selling Holders, any managing underwriter(s) participating in any disposition pursuant to such
registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders,
all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company’s officers,
directors, employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney,
accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement
and to conduct appropriate due diligence in connection therewith;


 


(j)             notify
each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared
effective or a supplement to any prospectus forming a part of such registration statement has been filed; and


 


(k)            after
such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement
such registration statement or prospectus.


 


(l)             make
generally available to its security holders, and deliver to each Holder participating in the registration statement, an earnings statement
of the Company that will satisfy the provisions of Section 11(a) of the Securities Act covering a period of twelve (12) months
beginning after the effective date of such registration statement as soon as reasonably practicable after the termination of such twelve
(12)-month period; and


 


(m)            use
its commercially reasonable efforts to furnish, on the date that such Registrable Securities are delivered to the underwriters for sale,
if such securities are being sold through underwriters, (i) an opinion, dated as of such date, of the counsel representing the Company
for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering,
addressed to the underwriters, if any, and (ii) a letter, dated as of such date, from the independent certified public accountants
of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten
public offering addressed to the underwriters.


 


In addition, the Company shall ensure
that, at all times after any registration statement covering a public offering of securities of the Company under the Securities Act shall
have become effective, its insider trading policy shall provide that the Company’s directors may implement a trading program under
Rule 10b5-1 of the Exchange Act.


 


2.5            Furnish
Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 2
with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding
itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to
effect the registration of such Holder’s Registrable Securities.


 






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2.6            Expenses
of Registration. All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications
pursuant to Section 2, including all registration, filing, and qualification fees; printers’ and accounting fees; fees
and disbursements of counsel for the Company; and the reasonable fees and disbursements of one counsel for the selling Holders (“Selling
Holder Counsel”), shall be borne and paid by the Company; provided, however, that the Company shall not
be required to pay for any expenses of any registration proceeding begun pursuant to Subsection 2.1 if the registration request
is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all
selling Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn
registration), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one registration pursuant
to Subsections 2.1(a) or 2.1(b), as the case may be; provided further that if, at the time of such withdrawal,
the Holders shall have learned of a material adverse change in the condition, business, or prospects of the Company from that known to
the Holders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information
then the Holders shall not be required to pay any of such expenses and shall not forfeit their right to one registration pursuant to
Subsections 2.1(a) or 2.1(b). All Selling Expenses relating to Registrable Securities registered pursuant to this
Section 2 shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered
on their behalf.


 


2.7            Delay
of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration
pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of
this Section 2.


 


2.8            Indemnification.
If any Registrable Securities are included in a registration statement under this Section 2:


 


(a)            To
the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers, directors,
and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in the Securities
Act) for each such Holder; and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or
the Exchange Act, against any Damages, and the Company will pay to each such Holder, underwriter, controlling Person, or other aforementioned
Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from
which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this
Subsection 2.8(a) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected
without the consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed nor shall the Company be
liable for any Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity
with written information furnished by or on behalf of any such Holder, underwriter, controlling Person, or other aforementioned Person
expressly for use in connection with such registration.


 


(b)            To
the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and each
of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the Company
within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined in the
Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such
underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based upon
actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling
Holder expressly for use in connection with such registration; and each such selling Holder will pay to the Company and each
other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending
any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the
indemnity agreement contained in this Subsection 2.8(b) shall not apply to amounts paid in settlement of any such claim
or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld,
conditioned or delayed; and provided further that in no event shall the aggregate amounts payable by any Holder by way of
indemnity or contribution under Subsections 2.8(b) and 2.8(d) exceed the proceeds from the offering received
by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such
Holder.


 






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(c)            Promptly
after receipt by an indemnified party under this Subsection 2.8 of notice of the commencement of any action (including any governmental
action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is
to be made against any indemnifying party under this Subsection 2.8, give the indemnifying party notice of the commencement thereof.
The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate
jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory
to the parties; provided, however, that an indemnified party (together with all other indemnified parties that may be represented
without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying
party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual
or potential differing interests between such indemnified party and any other party represented by such counsel in such action. The failure
to give notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying
party of any liability to the indemnified party under this Subsection 2.8, to the extent that such failure materially prejudices
the indemnifying party’s ability to defend such action. The failure to give notice to the indemnifying party will not relieve it
of any liability that it may have to any indemnified party otherwise than under this Subsection 2.8.


 


(d)            To
provide for just and equitable contribution to joint liability under the Securities Act in any case in which either: (i) any
party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Subsection 2.8 but
it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of
time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case,
notwithstanding the fact that this Subsection 2.8 provides for indemnification in such case, or (ii) contribution
under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this Subsection
2.8, then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or
expenses to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative
fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions
that resulted in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations.
The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things,
whether the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates
to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge,
access to information, and opportunity to correct or prevent such statement or omission; provided, however, that, in
any such case (x) no Holder will be required to contribute any amount in excess of the public offering price of all such
Registrable Securities offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution
from any Person who was not guilty of such fraudulent misrepresentation; and provided further that in no event shall a
Holder’s liability pursuant to this Subsection 2.8(d), when combined with the amounts paid or payable by such Holder
pursuant to Subsection 2.8(b), exceed the proceeds from the offering received by such Holder (net of any Selling Expenses
paid by such Holder), except in the case of willful misconduct or fraud by such Holder.


 






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(e)            Notwithstanding
the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into
in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control.


 


(f)             Unless
otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations of
the Company and Holders under this Subsection 2.8 shall survive the completion of any offering of Registrable Securities in a registration
under this Section 2, and otherwise shall survive the termination of this Agreement.


 


2.9            Reports
Under Exchange Act. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or regulation
of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a
registration on Form S-3, the Company shall:


 


(a)             make
and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times after
the effective date of the registration statement filed by the Company for the IPO;


 


(b)            use
commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under
the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and


 


(c)            furnish
to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a
written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90)
days after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange
Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose
securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); (ii) a copy of the most recent
annual or quarterly report of the Company and such other reports and documents so filed by the Company; and (iii) such other
information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling
of any such securities without registration (at any time after the Company has become subject to the reporting requirements under
the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).


 






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2.10          Limitations
on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior written consent
of the Requisite Holders, enter into any agreement with any holder or prospective holder of any securities of the Company that would
(i) provide to such holder or prospective holder the right to include securities in any registration on other than either a pro
rata basis with respect to the Registrable Securities or on a subordinate basis after all Holders have had the opportunity to include
in the registration and offering all shares of Registrable Securities that they wish to so include; or (ii) allow such holder or
prospective holder to initiate a demand for registration of any securities held by such holder or prospective holder; provided
that this limitation shall not apply to Registrable Securities acquired by any additional Investor that becomes a party to this Agreement
in accordance with Subsection 6.9.


 


2.11          “Market
Stand-off” Agreement. Each Holder hereby agrees that it will not, without the prior written consent of the managing underwriter,
during the period commencing on the date of the final prospectus relating to the IPO, and ending on the date specified by the Company
and the managing underwriter (such period not to exceed one hundred eighty (180) days), (i) lend; offer; pledge; sell; contract
to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase;
or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable
or exchangeable (directly or indirectly) for Common Stock held immediately prior to the effective date of the registration statement
for the IPO or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled
by delivery of Common Stock or other securities, in cash, or otherwise. The foregoing provisions of this Subsection 2.11 shall
apply only to the IPO, and shall not apply to distributions to current or former partners, members or stockholders of a Holder or to
the transfer of any shares owned by a Holder in the Company to its Affiliates or any of the Holder’s stockholders, members, partners
or other equity holders; provided that the Affiliate, stockholder member, partner or other equity holder of the Holder agrees to be bound
in writing by the restrictions set forth herein, shall not apply to transactions or announcements relating to: (1) securities acquired
in the IPO or (2) securities acquired in open market transactions from and after the IPO, shall not apply to the sale of any shares
to an underwriter pursuant to an underwriting agreement, or the transfer of any shares to any trust for the direct or indirect benefit
of the Holder or the immediate family of the Holder, provided that the trustee of the trust agrees to be bound in writing by the
restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, and shall
be applicable to the Holders only if all officers and directors are subject to the same restrictions and the Company uses commercially
reasonable efforts to obtain a similar agreement from all stockholders individually, and together with their Affiliates, owning one percent
(1%) or more of the Company’s outstanding Common Stock (after giving effect to conversion into Common Stock of all outstanding
Preferred Stock). The underwriters in connection with such registration are intended third-party beneficiaries of this Subsection
2.11 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Holder
further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that
are consistent with this Subsection 2.11 or that are necessary to give further effect thereto. Any discretionary waiver or termination
of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Holders subject
to such agreements, based on the number of shares subject to such agreements.


 






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		2.12	Restrictions on Transfer.



 


(a)            The
Preferred Stock, the Registrable Securities and any other shares of Common Stock issued upon conversion of the Preferred Stock shall not
be sold, pledged, or otherwise transferred, and the Company shall not recognize and shall issue stop- transfer instructions to its transfer
agent with respect to any such sale, pledge, or transfer, except upon the conditions specified in this Agreement, which conditions are
intended to ensure compliance with the provisions of the Securities Act. A transferring Holder will cause any proposed purchaser, pledgee,
or transferee of the Preferred Stock, the Registrable Securities and any other shares of Common Stock issued upon conversion of the Preferred
Stock held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions specified in this
Agreement.


 


(b)            Each
certificate, instrument, or book entry representing (i) the Preferred Stock, (ii) the Registrable Securities, (iii) any
other shares of Common Stock issued upon conversion of the Preferred Stock, and (iv) any other securities issued in respect of the
securities referenced in clauses (i), (ii) and (iii), upon any stock split, stock dividend, recapitalization, merger, consolidation,
or similar event, shall (unless otherwise permitted by the provisions of Subsection 2.12(c)) be notated with a legend substantially
in the following form:


 


THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR
INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.


 


THE SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED
ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY
OF THE COMPANY.


 


The Holders consent to the Company making
a notation in its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions
on transfer set forth in this Subsection 2.12.


 






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(c)            The
holder of such Restricted Securities, by acceptance of ownership thereof, agrees to comply in all respects with the provisions of
this Section 2. Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect a
registration statement under the Securities Act covering the proposed transaction, the Holder thereof shall give notice to the
Company of such Holder’s intention to effect such sale, pledge, or transfer. Each such notice shall describe the manner and
circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company, shall be
accompanied at such Holder’s expense by either (i) a written opinion of legal counsel who shall, and whose legal opinion
shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be
effected without registration under the Securities Act; (ii) a “no action” letter from the SEC to the effect that
the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation by the
staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to
the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without
registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or
transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company. The Company will
not require such a legal opinion or “no action” letter (x) in any transaction in compliance with SEC Rule 144;
(y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no
consideration or (z) in any internal transaction in which such Holder transfers Restricted Securities to an Affiliate of such
Holder that is an entity and that is ultimately controlled by the same parent company as the Holder (or is the ultimate parent
company of the Holder); provided that in the case of clauses (y) and (z) each transferee agrees in writing to be
subject to the terms of this Subsection 2.12. Each certificate, instrument, or book entry representing the Restricted
Securities transferred as above provided shall be notated with, except if such transfer is made pursuant to SEC Rule 144, the
appropriate restrictive legend set forth in Subsection 2.12(b), except that such certificate, instrument, or book entry shall
not be notated with such restrictive legend if, in the opinion of counsel for such Holder and the Company, such legend is not
required in order to establish compliance with any provisions of the Securities Act. Notwithstanding the foregoing, the Company shall
be obligated to reissue promptly unlegended certificates or book entries at the request of any Holder thereof if the Company has
completed its IPO and the Holder shall have obtained an opinion of counsel (which counsel may be counsel to the Company) to the
effect that the securities proposed to be disposed of may lawfully be so disposed of without registration, qualification and legend,
provided that the second legend listed above shall be removed only at such time as the Holder of such certificate is no longer
subject to any restrictions hereunder.


 


2.13         Termination
of Registration Rights. The right of any Holder to request registration or inclusion of Registrable Securities in any registration
pursuant to Subsections 2.1 or 2.2 shall terminate upon the earliest to occur of:


 


(a)            the
closing of a Deemed Liquidation Event, as such term is defined in the Certificate of Incorporation; or


 


(b)            such
time after consummation of the Qualified Public Offering as Rule 144 or another similar exemption under the Securities Act is available
for the sale of all of such Holder’s shares without limitation during a three-month period without registration.


 


		3.	Information and Observer Rights.



 


3.1            Delivery
of Financial Statements. The Company shall deliver to each Major Investor, provided that the Board of Directors has not reasonably
determined that such Major Investor is a Competitor:


 


(a)            as
soon as practicable, but in any event within one hundred eighty (180) days after the end of each fiscal year of the Company (i) a
balance sheet as of the end of such year, (ii) statements of income and of cash flows for such year, and a comparison between (x) the
actual amounts as of and for such fiscal year and (y) the comparable amounts for the prior year and as included in the Budget (as
defined in Subsection 3.1(d) for such year, with an explanation of any material differences between such amounts and a schedule
as to the sources and applications of funds for such year, and (iii) a statement of stockholders’ equity as of the end of
such year, all such financial statements audited and certified by independent public accountants of regionally recognized standing selected
by the Company;


 


(b)            as
soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of each
fiscal year of the Company, unaudited statements of income and cash flows for such fiscal quarter, and an unaudited balance
sheet and a statement of stockholders’ equity as of the end of such fiscal quarter, all prepared in accordance with GAAP
(except that such financial statements may (i) be subject to normal year- end audit adjustments; and (ii) not contain all
notes thereto that may be required in accordance with GAAP);


 



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(c)      
     as soon as practicable, but in any event within forty-five (45) days after the
end of each of the first three (3) quarters of each fiscal year of the Company, a statement showing the number of shares of
each class and series of capital stock and securities convertible into or exercisable for shares of capital stock outstanding at the
end of the period, the Common Stock issuable upon conversion or exercise of any outstanding securities convertible or exercisable
for Common Stock and the exchange ratio or exercise price applicable thereto, and the number of shares of issued stock options and
stock options not yet issued but reserved for issuance, if any, all in sufficient detail as to permit the Major Investors to
calculate their respective percentage equity ownership in the Company, and certified by the chief financial officer or chief
executive officer of the Company as being true, complete, and correct;


 


(d)           as
soon as practicable, but in any event thirty (30) days before the end of each fiscal year, a budget and business plan for the next fiscal
year (collectively, the “Budget”), approved by the Board of Directors and prepared on a monthly basis, including balance
sheets, income statements, and statements of cash flow for such months and, promptly after prepared, any other budgets or revised budgets
prepared by the Company; and


 


(e)           such
other information relating to the financial condition, business, prospects, or corporate affairs of the Company as any Major Investor
may from time to time reasonably request; provided, however, that the Company shall not be obligated under this Subsection
3.1 to provide information (i) that the Company reasonably determines in good faith to be a trade secret or confidential information
(unless covered by an enforceable confidentiality agreement, in a form reasonably acceptable to the Company); or (ii) the disclosure
of which would adversely affect the attorney-client privilege between the Company and its counsel.


 


If, for any period, the Company has any
subsidiary whose accounts are consolidated with those of the Company, then in respect of such period the financial statements delivered
pursuant to the foregoing sections shall be the consolidated and consolidating financial statements of the Company and all such consolidated
subsidiaries.


 


Notwithstanding anything else in this
Subsection 3.1 to the contrary, the Company may cease providing the information set forth in this Subsection 3.1 during
the period starting with the date thirty (30) days before the Company’s good-faith estimate of the date of filing of a registration
statement if it reasonably concludes it must do so to comply with the SEC rules applicable to such registration statement and related
offering; provided that the Company’s covenants under this Subsection 3.1 shall be reinstated at such time as the
Company is no longer actively employing its commercially reasonable efforts to cause such registration statement to become effective.


 


3.2           Inspection.
The Company shall permit each Major Investor (provided that the Board of Directors has not reasonably determined that such
Major Investor is a Competitor), at such Major Investor’s expense, to visit and inspect the Company’s properties;
examine its books of account and records; and discuss the Company’s affairs, finances, and accounts with its officers, during
normal business hours of the Company as may be reasonably requested by the Major Investor; provided, however, that the
Company shall not be obligated pursuant to this Subsection 3.2 to provide access to any information that it reasonably and in good
faith considers to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in
form reasonably acceptable to the Company) or the disclosure of which would adversely affect the attorney-client privilege between
the Company and its counsel.


 






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3.3           Observer
Rights. As long as each of RA Capital, Sofinnova, Surveyor, and Atlas Venture, in each case together with its Affiliates, holds any
shares of Series A Preferred Stock or shares of Common Stock issued upon the conversion of Series A Preferred Stock (excluding
any Common Stock issued upon conversion of the Series A Preferred Stock pursuant to the “Special Mandatory Conversion”
provisions in the Certificate of Incorporation), the Company shall invite a representative of each of RA Capital, Sofinnova, Surveyor
and Atlas Venture, to attend all meetings of the Board of Directors in a nonvoting observer capacity (each, an “Observer”).
The Company shall give each such Observer copies of all notices, minutes, consents, and other materials that it provides to its directors
at the same time and in the same manner as provided to any other member of the Board of Directors; provided, however, that
such Observer shall agree to hold in confidence all information so provided; and provided further, that the Company reserves the
right to withhold any information and to exclude such Observer from any meeting or portion thereof if access to such information or attendance
at such meeting could adversely affect the attorney-client privilege between the Company and its counsel or result in disclosure of trade
secrets or a conflict of interest.


 


3.4           Termination
of Information and Observer Rights. The covenants set forth in Subsection 3.1, Subsection 3.2 and Subsection
3.3 shall terminate and be of no further force or effect (i) immediately before the consummation of the Qualified Public
Offering, (ii) when the
Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act,
or (iii) upon the closing of a Deemed Liquidation Event, as such term is defined in the Certificate of Incorporation, whichever
event occurs first.


 


3.5           Confidentiality.
Each Investor agrees, severally and not jointly, that such Investor will keep confidential and will not disclose, divulge, or use
for any purpose (other than to monitor its investment in the Company) any confidential information obtained from the Company
pursuant to the terms of this Agreement (including notice of the Company’s intention to file a registration statement), unless
such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of
this Subsection 3.5 by such Investor), (b) is or has been independently developed or conceived by such Investor without
use of the Company’s confidential information, or (c) is or has been made known or disclosed to such Investor by a third
party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however,
that an Investor may disclose confidential information (i) to its attorneys, accountants, consultants, and other professionals
to the extent necessary to obtain their services in connection with monitoring its investment in the Company; (ii) to any
prospective purchaser of any Registrable Securities from such Investor, if such prospective purchaser agrees to be bound by the
provisions of this Subsection 3.5; (iii) to any existing or prospective Affiliate, partner, member, stockholder, or
wholly owned subsidiary of such Investor in the ordinary course of business, provided that such Investor informs such Person
that such information is confidential and directs such Person to maintain the confidentiality of such information; (iv) to the
extent required in connection with any routine or periodic examination or similar process by any regulatory or self-regulatory body
or authority not specifically directed at the Company or the confidential information obtained from the Company pursuant to the
terms of the Agreement, including, without limitation, quarterly or annual reports, (v) as may otherwise be required by
law, regulation, rule, court order or subpoena, provided that, with respect to this clause (v), such Investor promptly
notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure;
(vi) as required by any court or other governmental body, provided that the Investor promptly notifies the Company of such
disclosure and takes reasonable steps to minimize the extent of any such required disclosure; (vii) in connection with the
enforcement of this Agreement or any other agreement with the Company or its subsidiaries or rights under this Agreement or any
other agreement with the Company or its subsidiaries; (viii) to comply with applicable law, statutes, rules or regulations
or pursuant to any direction, request or requirement (whether or not having the force of law but if not having the force of law
being of a type with which institutional investors in the relevant jurisdiction are accustomed to comply) of any self- regulating
organization or any governmental, fiscal, monetary or other authority; (ix) for internal market, industry and investment
analyses; or (x) to officers, employees, agents, directors, partners, parent or subsidiaries to the extent necessary to obtain
their services in connection with monitoring its investment in the Company. This Section 3.5 shall supersede and
replace, in its entirety, any agreement between the Company and any Investor related to the confidential treatment of the
Company’s information. The Company acknowledges and agrees that in no event shall Surveyor’s confidentiality and non-use
obligations hereunder in any manner be deemed or construed as limiting Surveyor’s or its representatives’ (or any of
their respective Affiliates’) ability to trade any security of a company that has issued securities that are publicly
traded.


 






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		4.	Rights to Future Stock Issuances.



 


4.1           Right
of First Offer. Subject to the terms and conditions of this Subsection 4.1 and applicable securities laws, if the Company proposes
to offer or sell any New Securities, the Company shall first offer such New Securities to each Major Investor. A Major Investor shall
be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate, among (i) itself,
and (ii) its Affiliates.


 


(a)           The
Company shall give notice (the “Offer Notice”) to each Major Investor, stating (i) its bona fide intention to
offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon
which it proposes to offer such New Securities.


 


(b)           By
notification to the Company within twenty (20) days after the Offer Notice is given, each Major Investor may elect to purchase or
otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which
equals the proportion that the Common Stock issuable or issued upon conversion of Preferred Stock then held by such Major Investor
(excluding any Common Stock issued upon conversion of the Series A Preferred Stock pursuant to the “Special Mandatory
Conversion” provisions in the Certificate of Incorporation) bears to the total Common Stock issuable or issued upon conversion
of Preferred Stock then held by all Major Investors (excluding any Common Stock issued upon conversion of the Series A
Preferred Stock pursuant to the “Special Mandatory Conversion” provisions in the Certificate of Incorporation). At the
expiration of such twenty (20) day period, the Company shall promptly notify each Major Investor that elects to purchase or acquire
all the shares available to it (each, a “Fully Exercising Investor”) of any other Major Investor’s failure
to do likewise. During the ten (10) day period commencing after the Company has given such notice, each Fully Exercising
Investor may, by giving notice to the Company, elect to purchase or acquire, in addition to the number of shares specified above, up
to that portion of the New Securities for which Major Investors were entitled to subscribe but that were not subscribed for
by the Major Investors which is equal to the proportion that the Common Stock issuable or issued upon conversion of Preferred Stock
then held by such Fully Exercising Investor (excluding any Common Stock issued upon conversion of the Series A Preferred Stock
pursuant to the “Special Mandatory Conversion” provisions in the Certificate of Incorporation) bears to the Common Stock
issuable or issued upon conversion of Preferred Stock then held by all Fully Exercising Investors (excluding any Common Stock issued
upon conversion of the Series A Preferred Stock pursuant to the “Special Mandatory Conversion” provisions in the
Certificate of Incorporation) who wish to purchase such unsubscribed shares. The closing of any sale pursuant to this Subsection
4.1(b) shall occur within the later of ninety (90) days of the date that the Offer Notice is given and the date of initial
sale of New Securities pursuant to Subsection 4.1(c).


 






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(c)           If
all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Subsection 4.1(b),
the Company may, during the ninety (90) day period following the expiration of the periods provided in Subsection 4.1(b), offer
and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no
more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale
of the New Securities within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the
right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Major
Investors in accordance with this Subsection 4.1.


 


(d)           The
right of first offer in this Subsection 4.1 shall not be applicable to (i) Exempted Securities (as defined in the Certificate
of Incorporation); (ii) shares of Common Stock issued in the Qualified Public Offering; and (iii) the issuance of shares of
Series A Preferred Stock pursuant to Subsection 1.3 of the Purchase Agreement.


 


(e)           Notwithstanding
any provision hereof to the contrary, in lieu of complying with the provisions of this Subsection 4.1, the Company may elect to
give notice to the Major Investors within thirty (30) days after the issuance of New Securities. Such notice shall describe the type,
price, and terms of the New Securities. Each Major Investor shall have twenty (20) days from the date notice is given to elect to purchase
up to the number of New Securities that would, if purchased by such Major Investor, maintain such Major Investor’s percentage-ownership
position, calculated as set forth in Subsection 4.1(b) before giving effect to the issuance of such New Securities.


 


4.2           Termination.
The covenants set forth in Subsection 4.1 shall terminate and be of no further force or effect (i) immediately before the
consummation of the Qualified Public Offering, (ii) when the Company first becomes subject to the periodic reporting requirements
of Section 12(g) or 15(d) of the Exchange Act, or (iii) upon the closing of a Deemed Liquidation Event, as such term
is defined in the Certificate of Incorporation, whichever event occurs first.


 


		5.	Additional Covenants.



 


5.1           Insurance.
The Company shall obtain, within ninety (90) days of the date hereof, from financially sound and reputable insurers Directors and
Officers liability insurance with coverage of the directors (and their Affiliated investors) and the officers of the Company in an
amount of not less than $3,000,000 (and will increase such amount to at least $15,000,000 immediately prior to an IPO) per
incident and on terms and conditions satisfactory to the Board of Directors, and will use commercially reasonable efforts to cause
such insurance policies to be maintained until such time as the Board of Directors determines that such insurance should be
discontinued. The policy shall not be cancelable by the Company without prior approval by the Board of Directors, which approval
must include the affirmative vote of a majority of the Series A Directors then-serving.


 






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5.2           Employee
Agreements. The Company will cause (i) each Person now or hereafter employed by it or by any subsidiary (or engaged by the Company
or any subsidiary as a consultant/independent contractor) to enter into a nondisclosure and proprietary rights assignment agreement, substantially
in the form approved by the Board of Directors and provided to the Investors; and (ii) each Person now or hereafter employed by it
or by any subsidiary with access to confidential information and/or trade secrets to enter into a nonsolicitation agreement, substantially
in the form approved by the Board of Directors and provided to the Investors. In addition, the Company shall not amend, modify, terminate,
waive, or otherwise alter, in whole or in part, any of the above-referenced agreements between the Company and any employee involved in
the development of the Company’s intellectual property, without the consent of the Board, which approval must include the affirmative
vote of a majority of the Preferred Directors then-serving.


 


5.3           Employee
Stock. Unless otherwise approved by the Board of Directors, all future employees, consultants, independent contractors and other service
providers of the Company who purchase, receive options to purchase, or receive awards of shares of the Company’s capital stock after
the date hereof shall be required to execute restricted stock or option agreements, as applicable, providing for (i) vesting of shares
over a four (4) year period, with the first twenty-five percent (25%) of such shares vesting following twelve (12) months of continued
employment or service, and the remaining shares vesting in equal monthly installments over the following thirty-six (36) months, and (ii) a
market stand-off provision substantially similar to that in Subsection 2.11. Without the prior approval by the Board of Directors,
the Company shall not amend, modify, terminate, waive or otherwise alter, in whole or in part, any stock purchase, stock restriction or
option agreement with any existing employee, consultant, independent contractor or other service provider if such amendment would cause
it to be inconsistent with this Subsection 5.3. In addition, unless otherwise approved by the Board of Directors, the Company shall
retain (and not waive) a “right of first refusal” on service provider transfers until the Company’s IPO and shall have
the right to repurchase unvested shares at cost upon termination of employment or service of a holder of restricted stock.


 


5.4           Matters
Requiring Investor Director Approval. So long as any shares of Series A Preferred Stock remain outstanding, the Company hereby
covenants and agrees with each of the Investors that it shall not, without approval of the Board, which approval must include the affirmative
vote of a majority of the Series A Directors then-serving:


 


(a)           make,
or permit any subsidiary to make, any loan or advance to, or own any stock or other securities of, any subsidiary or other corporation,
partnership, or other entity unless it is wholly owned by the Company;


 


(b)           make,
or permit any subsidiary to make, any loan or advance to any Person, including, without limitation, any employee or director of the Company
or any subsidiary, except advances and similar expenditures in the ordinary course of business or under the terms of an employee stock
or option plan approved by the Board of Directors;


 



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(c)           guarantee,
directly or indirectly, or permit any subsidiary to guarantee, directly or indirectly, any indebtedness except for trade accounts of the
Company or any subsidiary arising in the ordinary course of business;


 


(d)           make
any investment inconsistent with any investment policy approved by the Board of Directors;


 


(e)           incur
any aggregate indebtedness in excess of $150,000 that is not already included in a budget approved by the Board of Directors, other than
trade credit incurred in the ordinary course of business;


 


(f)            otherwise
enter into or be a party to any transaction with any director, officer, or employee of the Company or any “associate” (as
defined in Rule 12b-2 promulgated under the Exchange Act) of any such Person, including without limitation any “management
bonus” or similar plan providing payments to employees in connection with a Deemed Liquidation Event, as such term is defined in
the Certificate of Incorporation, except for transactions made in the ordinary course of business and pursuant to reasonable requirements
of the Company’s business and upon fair and reasonable terms that are approved by a majority of the Board of Directors;


 


(g)           hire,
terminate, or change the compensation of the executive officers, including approving any option grants or stock awards to executive officers;


 


(h)           change
the principal business of the Company, enter new lines of business, or exit the current line of business;


 


(i)            sell,
assign, license, pledge, or encumber material technology or intellectual property, other than licenses granted in the ordinary course
of business; or


 


(j)            enter
into any corporate strategic relationship involving the payment, contribution, or assignment by the Company or to the Company of money
or assets greater than $150,000.


 


5.5           Board
Matters. Unless otherwise determined by the vote of a majority of the directors then in office, including the determination of at
least a majority of the Series A Directors, the Board of Directors shall meet at least quarterly (which may be via teleconference)
in accordance with an agreed-upon schedule. The Company shall reimburse the nonemployee directors and Observers for all reasonable out-of-pocket
travel expenses incurred (consistent with the Company’s travel policy) in connection with attending meetings of the Board of Directors,
meetings of the committees of the Board of Directors, meetings of the board of directors of any subsidiary of the Company and for reasonable
expenses actually incurred while working for the benefit of the Company. Each Series A Director shall be entitled in such person’s
discretion to be a member of any committee of the Board and a director of any subsidiary of the Company.


 


5.6            Successor
Indemnification. If the Company or any of its successors or assignees consolidates with or merges into any other Person and is not
the continuing or surviving corporation or entity of such consolidation or merger, then to the extent necessary, proper provision shall
be made so that the successors and assignees of the Company assume the obligations of the Company with respect to indemnification of members
of the Board of Directors as in effect immediately before such transaction, whether such obligations are contained in the Company’s
Bylaws, the Certificate of Incorporation, or elsewhere, as the case may be.


 






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5.7           Expenses
of Counsel. In the event of a transaction which is a Sale of the Company (as defined in the Voting Agreement of even date
herewith among the Investors, the Company and the other parties named therein), the reasonable fees and disbursements of one
counsel for the Major Investors (“Investor Counsel”), in their capacities as stockholders, shall be borne and
paid by the Company. At the outset of considering a transaction which, if consummated would constitute a Sale of the Company, the
Company shall obtain the ability to share with the Investor Counsel (and such counsel's clients) and shall share the confidential
information (including, without limitation, the initial and all subsequent drafts of memoranda of understanding, letters of intent
and other transaction documents and related noncompete, employment, consulting and other compensation agreements and plans)
pertaining to and memorializing any of the transactions which, individually or when aggregated with others would constitute the Sale
of the Company. The Company shall be obligated to share (and cause the Company's counsel and investment bankers to share) such
materials when distributed to the Company's executives and/or any one or more of the other parties to such transaction(s). In the
event that Investor Counsel deems it appropriate, in its reasonable discretion, to enter into a joint defense agreement or other
arrangement to enhance the ability of the parties to protect their communications and other reviewed materials under the attorney
client privilege, the Company shall, and shall direct its counsel to, execute and deliver to Investor Counsel and its clients such
an agreement in form and substance reasonably acceptable to Investor Counsel. In the event that one or more of the other party or
parties to such transactions require the clients of Investor Counsel to enter into a confidentiality agreement and/or joint defense
agreement in order to receive such information, then the Company shall share whatever information can be shared without entry into
such agreement and shall, at the same time, in good faith work expeditiously to enable Investor Counsel and its clients to negotiate
and enter into the appropriate agreement(s) without undue burden to the clients of Investor Counsel.


 


5.8           Indemnification
Matters. The Company hereby acknowledges that one (1) or more of the directors nominated to serve on the Board of Directors
by the Investors (each an “Investor Director”) may have certain rights to indemnification, advancement of
expenses and/or insurance provided by one or more of the Investors and certain of their Affiliates (collectively, the
 “Investor Indemnitors”). The Company hereby agrees (a) that it is the indemnitor of first resort
(i.e., its obligations to any such Investor Director are primary and any obligation of the Investor Indemnitors to advance
expenses or to provide indemnification for the same expenses or liabilities incurred by such Investor Director are secondary),
(b) that it shall be required to advance the full amount of expenses incurred by such Investor Director and shall be liable for
the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement by or on behalf of any such Investor
Director to the extent legally permitted and as required by the Company’s Certificate of Incorporation or Bylaws of the
Company (or any agreement between the Company and such Investor Director), without regard to any rights such Investor Director may
have against the Investor Indemnitors, and, (c) that it irrevocably waives, relinquishes and releases the Investor Indemnitors
from any and all claims against the Investor Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof.
The Company further agrees that no advancement or payment by the Investor Indemnitors on behalf of any such Investor Director with
respect to any claim for which such Investor Director has sought indemnification from the Company shall affect the foregoing and the
Investor Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of
the rights of recovery of such Investor Director against the Company. The Investor Directors and the Investor Indemnitors are
intended third-party beneficiaries of this Subsection 5.8 and shall have the right, power and authority to enforce the
provisions of this Subsection 5.8 as though they were a party to this Agreement.


 






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5.9           Right
to Conduct Activities. The Company hereby agrees and acknowledges that each of RA Capital (together with its Affiliates), Sofinnova
(together with its Affiliates), OUP (together with its Affiliates), Cormorant (together with its Affiliates), Surveyor (together with
its Affiliates), and Atlas (together with its Affiliates) is a professional investment organization, and as such reviews the business
plans and related proprietary information of many enterprises, some of which may compete directly or indirectly with the Company’s
business (as currently conducted or as currently propose to be conducted). The Company hereby agrees that, to the extent permitted under
applicable law, none of RA Capital (together with its Affiliates), Sofinnova (together with its Affiliates), OUP (together with its Affiliates),
Cormorant (together with its Affiliates), Surveyor (together with its Affiliates), or Atlas (together with its Affiliates) shall be liable
to the Company for any claim arising out of, or based upon, (i) the investment by RA Capital (together with its Affiliates), Sofinnova
(together with its Affiliates), OUP (together with its Affiliates), Cormorant (together with its Affiliates), Surveyor (together with
its Affiliates), or Atlas (together with its Affiliates), or (ii) actions taken by any partner, officer, employee or other representative
of RA Capital (or its Affiliates), Sofinnova (or its Affiliates), OUP (or its Affiliates), Cormorant (or its Affiliates), Surveyor (or
its Affiliates), or Atlas (or its Affiliates) to assist any such competitive company, whether or not such action was taken as a member
of the board of directors of such competitive company or otherwise, and whether or not such action has a detrimental effect on the Company;
provided, however, that the foregoing shall not relieve (x) any of the Investors from liability associated with the unauthorized
disclosure of the Company’s confidential information obtained pursuant to this Agreement, or (y) any director or officer of
the Company from any liability associated with his or her fiduciary duties to the Company.


 


5.10         Cybersecurity.
The Company shall, within 180 days following the Initial Closing (as defined in the Purchase Agreement), (a) identify its sensitive
data and information, and restrict access (through physical and electronic controls) to those individuals who have a need to access it
and (b) implement cybersecurity solution(s) (“Cybersecurity Solutions”) designed to protect its technology
and systems (including servers, laptops, desktops, cloud, containers, virtual environments and data centers) and all data contained in
such systems. The Company shall use commercially reasonable efforts to ensure that the Cybersecurity Solutions (x) are up-to-date
and include industry-standard protections (e.g., antivirus, endpoint detection and response and threat hunting), (y) to the extent
determined necessary by the Company or its Board of Directors, are backed by a breach prevention warranty from the vendor certifying the
effectiveness of such solutions, and (z) require the vendors to notify the Company of any security incidents posing a risk to the
Company’s information (regardless of whether information was actually compromised). The Company shall evaluate on a regular basis
whether the Cybersecurity Solutions should be updated to ensure continued effectiveness and industry- standard protections. The Company
shall also educate its employees about the proper use and storage of sensitive information, including regular training as determined reasonably
necessary by the Company or its Board of Directors.


 


5.11         Termination
of Covenants. The covenants set forth in this Section 5, except for Subsections 5.6, 5.7 and 5.8,
shall terminate and be of no further force or effect (i) immediately before the consummation of the Qualified Public
Offering, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or
15(d) of the Exchange Act, or (iii) upon a Deemed Liquidation Event, as such term is defined in the Certificate of
Incorporation, whichever event occurs first.


 






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5.12         Reservation
of Common Stock. The Company will at all times reserve and keep available, solely for issuance and delivery upon the conversion of
the Preferred Stock, all Common Stock issuable from time to time upon such conversion.


 


5.13         Foreign
Corrupt Practices Act. The Company represents that it shall not, and shall not permit any of its subsidiaries or Affiliates or any
of its or their respective directors, officers, managers, employees, independent contractors, representatives or agents to, promise,
authorize or make any payment, or otherwise provide any item of value, directly or indirectly, to any foreign official or any foreign
political party or official thereof or candidate for foreign political office in violation of the U.S. Foreign Corrupt Practices Act
(“FCPA”), the U.K. Bribery Act 2010, or any other applicable anti-bribery or anti-corruption law. The Company
further represents that it shall, and shall cause each of its subsidiaries and Affiliates to, cease all of its or their respective activities,
as well as remediate any actions taken by the Company, its subsidiaries or Affiliates, or any of their respective directors, officers,
managers, employees, independent contractors, representatives or agents in violation of the FCPA, the U.K. Bribery Act 2010, or any other
applicable anti-bribery or anti-corruption law. The Company further represents that it shall use commercially reasonable efforts to–for
itself and each of its subsidiaries and Affiliates, maintain systems of internal controls (including, but not limited to, accounting
systems, purchasing systems and billing systems) to ensure compliance with the FCPA, the U.K. Bribery Act 2010 and other applicable anti-bribery
or anti-corruption law. Upon request, the Company agrees to provide responsive information and/or certifications concerning its compliance
with applicable anti-corruption laws. The Company shall promptly notify each Investor if the Company becomes aware of any enforcement
action by a government agency with respect to FCPA. The Company shall, and shall cause any direct or indirect subsidiary or entity controlled
by it, whether now in existence or formed in the future, to comply with the FCPA. The Company shall use its best efforts to cause any
direct or indirect subsidiary, whether now in existence or formed in the future, to comply in all material respects with all applicable
laws.


 


5.14         Defense
Production Act. To the extent that the Company engages in the design, fabrication, development, testing, production or manufacture
of critical technologies within the meaning of the Defense Production Act of 1950, as amended, including all implementing regulations
thereof, whether because of a new categorization of technology by the U.S. government or otherwise, the Company shall promptly provide
notice to each Major Investor.


 


		6.	Miscellaneous.



 


6.1           Successors
and Assigns. The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee
of Registrable Securities that (i) is an Affiliate of a Holder; (ii) is a Holder’s Immediate Family Member or trust
for the benefit of an individual Holder or one or more of such Holder’s Immediate Family Members; or (iii) after such
transfer, holds at least 1,000,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock
dividends, combinations, and other recapitalizations); provided, however, that (x) the Company is, within a
reasonable time after such transfer, furnished with written notice of the name and address of such transferee and the Registrable
Securities with respect to which such rights are being transferred; and (y) such transferee agrees in a written instrument
delivered to the Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions
of Subsection 2.11. For the purposes of determining the number of shares of Registrable Securities held by a transferee, the
holdings of a transferee (1) that is an Affiliate or stockholder of a Holder; (2) who is a Holder’s Immediate Family
Member; or (3) that is a trust for the benefit of an individual Holder or such Holder’s Immediate Family Member shall be
aggregated together and with those of the transferring Holder; provided further that all transferees who would not qualify
individually for assignment of rights shall, as a condition to the applicable transfer, establish a single attorney-in- fact for the
purpose of exercising any rights, receiving notices, or taking any action under this Agreement. The terms and conditions of this
Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties. Nothing in
this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective
successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as
expressly provided herein.


 






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6.2           Governing
Law. This Agreement shall be governed by the internal law of the State of Delaware, without regard to conflict of law principles that
would result in the application of any law other than the law of the State of Delaware.


 


6.3           Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic
signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart
so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.


 


6.4           Titles
and Subtitles. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing
or interpreting this Agreement.


 


		6.5	Notices.



 


(a)           All
notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given
upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by
electronic mail or facsimile during the recipient’s normal business hours, and if not sent during normal business hours, then
on the recipient’s next business day; (iii) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a
nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All
communications shall be sent to the respective parties at their addresses as set forth on such party’s signature
page hereto, or to the principal office of the Company and to the attention of the Chief Executive Officer, in the case of the
Company, or to such email address, facsimile number, or address as subsequently modified by written notice given in accordance with
this Subsection 6.5. If notice is given to the Company, a copy shall also be sent to Brown Rudnick LLP, One
Financial Center, Boston, MA 02111, Attn: Michael J. Cohen, Esq., and if notice is given to Stockholders,a copy (which shall
not constitute notice) shall also be given to Brian Covotta, O’Melveny & Myers LLP, 2765 Sand Hill Rd., Menlo Park,
CA 94025.


 






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(b)           Consent
to Electronic Notice. Each Investor consents to the delivery of any stockholder notice pursuant to the Delaware General
Corporation Law (the “DGCL”), as amended or superseded from time to time, by electronic transmission pursuant to
Section 232 of the DGCL (or any successor thereto) at the electronic mail address or the facsimile number set forth
below such Investor’s name on the Schedules hereto, as updated from time to time by notice to the Company, or as on the books
of the Company. To the extent that any notice given by means of electronic transmission is returned or undeliverable for any reason,
the foregoing consent shall be deemed to have been revoked until a new or corrected electronic mail address has been provided, and
such attempted electronic transmission shall be ineffective and deemed to not have been given. Each Investor agrees to promptly
notify the Company of any change in such stockholder’s electronic mail address, and that failure to do so shall not affect the
foregoing.


 


6.6           Amendments
and Waivers. Any term of this Agreement may be amended, modified or terminated and the observance of any term of this Agreement
may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written
consent of the Company and the Requisite Holders; provided that the Company may in its sole discretion waive compliance with Subsection
2.12(c) (and the Company’s failure to object promptly in writing after notification of a proposed assignment
allegedly in violation of Subsection 2.12(c) shall be deemed to be a waiver); and provided further that any
provision hereof may be waived by any waiving party on such party’s own behalf, without the consent of any other party.
Notwithstanding the foregoing, (a) this Agreement may not be amended, modified or terminated and the observance of any term
hereof may not be waived with respect to any Investor without the written consent of such Investor, unless such amendment,
modification, termination, or waiver applies to all Investors in the same fashion (it being agreed that a waiver of the provisions
of Section 4 with respect to a particular transaction shall be deemed to apply to all Investors in the same fashion if
such waiver does so by its terms, notwithstanding the fact that certain Investors may nonetheless, by agreement with the Company,
purchase securities in such transaction; provided, however, that if, after giving effect to such waiver of Section 4
with respect to a particular transaction, a Major Investor purchases securities in such transaction or issuance (such Major
Investor, a “Participating Investor”), such waiver of the provisions of Section 4 shall be deemed to apply
to each other Major Investor whose rights were waived or amended only if such other Major Investor has been provided the opportunity
to purchase a proportional number of the New Securities being offered by the Company in such transaction based on the pro rata
purchase right of such other Major Investor set forth in Section 4, assuming a transaction size determined based upon
the amount purchased by the Participating Investor that invested the largest percentage in such transaction, it being agreed that
such opportunity may be provided subsequent to the initial closing in which such Participating Investor(s) purchase securities)
and (b) Subsections 3.1 and 3.2, Section 4 and any other section of this Agreement applicable to the
Major Investors (including this clause (b) of this Subsection 6.6) may not be amended, modified, terminated or waived
without the written consent of the holders of at least sixty-five percent (65%) of the Registrable Securities then outstanding and
held by the Major Investors. Notwithstanding the foregoing, Schedule A hereto may be amended by the Company from time to time
to add transferees of any Registrable Securities in compliance with the terms of this Agreement without the consent of the other
parties; and Schedule A hereto may also be amended by the Company after the date of this Agreement without the consent of the
other parties to add information regarding any additional Investor who becomes a party to this Agreement in accordance with Subsection
6.9. The Company shall give prompt notice of any amendment, modification or termination hereof or waiver hereunder to any party
hereto that did not consent in writing to such amendment, modification, termination, or waiver. Any amendment, modification,
termination, or waiver effected in accordance with this Subsection 6.6 shall be binding on all parties hereto,
regardless of whether any such party has consented thereto. No waivers of or exceptions to any term, condition, or provision of this
Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term,
condition, or provision.


 






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6.7           Severability.
In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid,
illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent
permitted by law.


 


6.8           Aggregation
of Stock. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the purpose of determining
the availability of any rights under this Agreement and such Affiliated Persons may apportion such rights as among themselves in any manner
they deem appropriate.


 


6.9           Additional
Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of the Company’s
Series A Preferred Stock after the date hereof, whether pursuant to the Purchase Agreement or otherwise, any purchaser of such shares
of Series A Preferred Stock may become a party to this Agreement by executing and delivering an additional counterpart signature
page to this Agreement, and thereafter shall be deemed an “Investor” for all purposes hereunder. No action or consent
by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor
has agreed in writing to be bound by all of the obligations as an “Investor” hereunder.


 


6.10         Entire
Agreement. This Agreement (including any Schedules and Exhibits hereto) constitutes the full and entire understanding and agreement
among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof
existing between the parties is expressly canceled.


 


6.11         Dispute
Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware
and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or other
proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out
of or based upon this Agreement except in the state courts of Delaware or the United States District Court for the District of Delaware,
and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding,
any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from
attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or
proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.


 


WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS,
THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL
DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT
LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY
CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY
EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.


 






    27


     


    

 


6.12         Delays
or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach
or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting
party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default
thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative
and not alternative.


 


6.13         Acknowledgment.
The Company acknowledges that the Investors are in the business of venture capital or asset management investing and therefore review
the business plans and related proprietary information of many enterprises, including enterprises which may have products or services
which compete directly or indirectly with those of the Company. Nothing in this Agreement shall preclude or in any way restrict the Investors
from investing or participating in any particular enterprise whether or not such enterprise has products or services which compete with
those of the Company.


 


6.14         Attorneys’
Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the non-prevailing party
shall pay all costs and expenses incurred by the prevailing party, including, without limitation, all reasonable attorneys’ fees.


 


[Remainder of Page Intentionally Left Blank]


 



    28


     


    




 


IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first written above.


 


	 	AEROVATE THERAPEUTICS INC.
	 	 
	 	By:	/s/ Benjamin Dake
	 	Name:	Benjamin Dake
	 	Title:	President






 


Signature
Page to Investors’ Rights Agreement


 






    	



     


    





	 	 

                                                                     

	 	INVESTORS:
	 	
	 	RA CAPITAL HEALTHCARE FUND, L.P.
	 	 







	 	 	By: RA Capital Healthcare Fund GP, LLC 

Its General Partner



 


	 	By:	/s/
    Peter Kolchinsky   
	 	Name: Peter Kolchinsky
	 	Title: Manager




 




	 	Address:	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 




	 	BLACKWELL PARTNERS
    LLC - SERIES A








 












	 	By:	/s/ Jannine M. Lall
	 	Name: Jannine M. Lall
	 	Title: Head of Finance & Controller DUMAC, Inc., Authorized
Signatory
	 	 
	 	By:	 /s/ Abayomi A. Adigun
	 	Name: Abayomi A. Adigun
	 	Title: Authorized Signatory Title: Investment Manager DUMAC, Inc. Authorized Signatory





 

		Address:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 









 





	 	RA CAPITAL NEXUS FUND, L.P.




 





	 	By: RA Capital Nexus Fund GP, LLC
    

Its: General Partner
	 	 
	 	By:	/s/
    Peter Kolchinsky
	 	Name: Peter Kolchinsky
	 	Title:Manager
	 	 










	 	Address:	 
	 	 	 
	 	 	 
	 	 	 




 


Signature
Page to Investors’ Rights Agreement


 



    	 



     


    




 











 


	 	SOFINNOVA VENTURE PARTNERS X,
    L.P.




	 	 
	 	By: Sofinnova Management X, L.L.C.
	 	Its: General Partner
	 	 
	 	By:	/s /
    Maha Katabi
	 	Name: Maha Katabi
	 	Title: Managing Member




 


	 	Address:     	
	 	 	
	 	 	 
	 	 




 


	 	CORMORANT PRIVATE HEALTHCARE
    FUND II, LP




 


	 	By: Cormorant Private Healthcare GP
    II, LLC
	 	Its: General Partner
	 	 
	 	By:	/s/
    Bihua Chen
	 	Name: Bihua Chen
	 	Title: Managing Member
	 	 







	 	Address:	
	 	 	






 


	 	CORMORANT GLOBAL HEALTHCARE MASTER
    FUND, LP




 


	 	By: Cormorant Global Healthcare GP,
    LLC
	 	Its: General Partner
	 	 
	 	By:	/s/ Bihua Chen
	 	Name: Bihua Chen
	 	Title: Managing Member




 


	 	Address:	
	 	 	
	 	 







 


SIGNATURE PAGE TO INVESTORS'
RIGHTS AGREEMENT


 



    	 



     


    




 


	 	ATLAS VENTURE FUND XII, L.P.




 


	 	By: Atlas Venture Associates XII,
    L.P.
	 	Its: General Partner
	 	 
	 	By: Atlas Venture Associates XII,
    LLC
	 	Its: General Partner
	 	 
	 	By:	/s/Ommer
    Chohan
	 	Name:     Ommer
    Chohan
	 	Title:       CFO
	 	 







	 	Address:	 
	 	 	 
	 	 	 







 


Signature
Page to Investors’ Rights Agreement


 



    	 



     


    




 


	 	CITADEL MULTI-STRATEGY EQUITIES
    MASTER FUND LTD.



 


	 	By: Citadel Advisors LLC    
	 	Its: Portfolio Manager
	 	 
	 	By	/s/
    Shellane Mulcahy
	 	Name:	Shellane Mulcahy
	 	Title: Authorized Signatory
	 	 










	 	Address:	 
	 	                               	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 




 


	 	OSAGE UNIVERSITY PARTNERS III,
    LP




 


	 	By: Osage University GP III, LLC
	 	Its: General Partner
	 	 
	 	By:	 /s/ William Harrington
	 	Name: William Harrington
	 	Title: Managing Member




 





	 	Address:               	
	 	 	
	 	 	 


 


Signature
Page to Investors’ Rights Agreement


 


 



    	 



     


    




 


 





 


SCHEDULE A


Investors


 


RA CAPITAL HEALTHCARE FUND, L.P.


 


BLACKWELL PARTNERS LLC
 – SERIES A


 


RA CAPITAL NEXUS FUND, L.P.


 


SOFINNOVA VENTURE PARTNERS X,
L.P.


 


CORMORANT PRIVATE HEALTHCARE FUND II, LP


 


CORMORANT GLOBAL
HEALTHCARE MASTER FUND, LP


 


ATLAS VENTURE FUND XII, L.P.


 


CITADEL MULTI-STRATEGY EQUITIES MASTER FUND LTD.


 


OSAGE UNIVERSITY
PARTNERS III, LP