Exhibit 10.2


 


Execution Version


 


REGISTRATION RIGHTS
AGREEMENT


 


THIS REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), August 13, 2020, by and between ACLARIS THERAPEUTICS, INC.,
a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability
company (together with its permitted assigns, the “Investor”).  Capitalized terms used herein and not otherwise
defined herein shall have the respective meanings set forth in the Purchase Agreement by and between the parties hereto, dated
as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”).


 


WHEREAS:


 


A.       Upon
the terms and subject to the conditions of the Purchase Agreement, (i) the Company has agreed to issue to the Investor, and
the Investor has agreed to purchase,  up to Fifteen Million Dollars ($15,000,000) of the Company's common stock, par value
$0.00001 per share (the “Common Stock”), pursuant to the Purchase Agreement (such shares, the “Purchase
Shares”), and (ii) the Company has agreed to issue to the Investor upon the execution of the Purchase Agreement
such number of shares of Common Stock as set forth in the Purchase Agreement (the “Commitment Shares”); and


 


B.       To
induce the Investor to enter into the Purchase Agreement, the Company has agreed to provide certain registration rights under the
Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the
“Securities Act”), and applicable state securities laws.


 


NOW, THEREFORE,
in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree as follows:


 


1.      
DEFINITIONS.


 


For purposes of this
Agreement, the following terms shall have the following meanings:


 


(a)               
“Register,” “Registered,” and “Registration” refer to a registration
effected by preparing and filing one or more registration statements of the Company in compliance with the Securities Act and pursuant
to Rule 415 under the Securities Act or any successor rule providing for offering securities on a continuous basis (“Rule
415”), and the declaration or ordering of effectiveness of such registration statement(s) by the SEC.


 


(b)               
“Registrable Securities” means the Purchase Shares that may from time to time be issued or issuable to
the Investor upon purchases of the Available Amount under the Purchase Agreement (without regard to any limitation or restriction
on purchases), the Commitment Shares issued or issuable to the Investor, and any Common Stock issued or issuable with respect to
the Purchase Shares, the Commitment Shares or the Purchase Agreement as a result of any stock split, stock dividend, recapitalization,
exchange or similar event, without regard to any limitation on purchases under the Purchase Agreement.


 


(c)               
“Registration Statement” means the Shelf Registration Statement and any other registration statement
of the Company that Registers Registrable Securities, including a New Registration Statement, as amended when each became effective,
including all documents filed as part thereof or incorporated by reference therein, and including any information contained in
a Prospectus subsequently filed with the SEC.


 


(d)               
 “Shelf Registration Statement” means the Company’s existing registration statement on Form S-3
(File No. 333-237163).


 






     


     


    

 


		2.	REGISTRATION.



 


(a)       Mandatory
Registration.  The Company agrees that it shall, within the time required under Rule 424(b) under the Securities Act,
file with the SEC the Initial Prospectus Supplement pursuant to Rule 424(b) under the Securities Act specifically relating to the
transactions contemplated by, and describing the material terms and conditions of, the Transaction Documents, containing information
previously omitted at the time of effectiveness of the Registration Statement in reliance on Rule 430B under the Securities Act,
and disclosing all information relating to the transactions contemplated hereby required to be disclosed in the Registration Statement
and the Prospectus as of the date of the Initial Prospectus Supplement, including, without limitation, information required to
be disclosed in the section captioned “Plan of Distribution” in the Prospectus. The Investor acknowledges that it will
be identified in the Initial Prospectus Supplement as an underwriter within the meaning of Section 2(a)(11) of the Securities Act.
The Company shall have permitted the Investor to review and comment upon the Initial Prospectus Supplement at least two (2) Business
Days prior to its filing with the SEC, the Company shall have given due consideration to all such comments, and the Company shall
not file the Initial Prospectus Supplement with the SEC in a form to which the Investor reasonably objects. The Investor shall
furnish to the Company such information regarding itself, the Securities held by it and the intended method of distribution thereof,
including any arrangement between the Investor and any other Person relating to the sale or distribution of the Securities, as
shall be reasonably requested by the Company in connection with the preparation and filing of the Initial Prospectus Supplement,
and shall otherwise cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing
of the Initial Prospectus Supplement with the SEC.


 


(b)       Effectiveness.
The Company shall use its commercially reasonable efforts to keep the Registration Statement effective pursuant to Rule 415 promulgated
under the Securities Act, and to keep the Registration Statement and the Prospectus current and available for issuances and sales
of all possible Registrable Securities by the Company to the Investor, and for the resale of all of the Registrable Securities
by the Investor, at all times until the earlier of (i) the date on which the Investor shall have sold all the Securities and no
Available Amount remains under this Agreement and (ii) 180 days following the earlier of termination of this Agreement and the
Maturity Date (the "Registration Period"). Without limiting the generality of the foregoing, during the Registration
Period, the Company shall (a) take all action necessary to cause the Common Stock to continue to be Registered as a class of securities
under Section 12(b) of the Exchange Act and shall not take any action or file any document (whether or not permitted by the Exchange
Act) to terminate or suspend such registration and (b) file or furnish on or before their respective due dates all reports and
other documents required to be filed or furnished by the Company pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision
of or under the Exchange Act, and shall not take any action or file any document (whether or not permitted by the Exchange Act)
to terminate or suspend its reporting and filing obligations under the Exchange Act. The Registration Statement (including any
amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.  


 






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(c)       Prospectus
Amendments or Supplements. Except as provided in this Agreement and other than periodic and current reports required to
be filed pursuant to the Exchange Act, the Company shall not file with the SEC any amendment to the Registration Statement or
any supplement to the Base Prospectus that refers to the Investor, the Transaction Documents or the transactions contemplated
thereby (including, without limitation, any Prospectus Supplement filed in connection with the transactions contemplated by
the Transaction Documents), in each case with respect to which (a) the Investor shall not previously have been advised and
afforded the opportunity to review and comment thereon at least two (2) Business Days prior to filing with the SEC, as the
case may be, (b) the Company shall not have given due consideration to any comments thereon received from the Investor or its
counsel, or (c) the Investor shall reasonably object, unless the Company reasonably has determined that it is necessary to
amend the Registration Statement or make any supplement to the Prospectus to comply with the Securities Act or any other
applicable law or regulation, in which case the Company shall promptly (but in no event later than 24 hours) so inform the
Investor, the Investor shall be provided with a reasonable opportunity to review and comment upon any disclosure referring to
the Investor, the Transaction Documents or the transactions contemplated thereby, as applicable, and the Company shall
expeditiously furnish to the Investor a copy thereof. In addition, for so long as, in the reasonable opinion of counsel for
the Investor, the Prospectus is required to be delivered in connection with any acquisition or sale of Securities by the
Investor, the Company shall not file any Prospectus Supplement with respect to the Securities without furnishing to the
Investor as many copies of such Prospectus Supplement, together with the Prospectus, as the Investor may reasonably
request.


 


(d)       Sufficient
Number of Shares Registered.  In the event the number of shares available under the Shelf Registration Statement at any
time is insufficient to cover the Registrable Securities, the Company shall, to the extent necessary and permissible, amend the
Shelf Registration Statement or file a new registration statement (together with any prospectuses or prospectus supplements thereunder,
a “New Registration Statement”), so as to cover all of such Registrable Securities as soon as reasonably practicable,
but in any event not later than ten (10) Business Days after the necessity therefor arises, subject to any limits that may be imposed
by the SEC pursuant to Rule 415 promulgated under the Securities Act. The Company shall permit the Investor to review and comment
upon any such New Registration Statement at least two (2) Business Days prior to its filing with the SEC, and the Company shall
give due consideration to all such comments.  The Company shall use its reasonable best efforts to have such amendment and/or
New Registration Statement become effective as soon as reasonably practicable following the filing thereof.    


 


(e)       Offering.
If the SEC seeks to characterize any offering pursuant to a Registration Statement filed pursuant to this Agreement as constituting
an offering of securities that does not permit such Registration Statement to become effective and be used by the Investor under
Rule 415 at then-prevailing market prices (and not fixed prices), or if after the filing of the Initial Prospectus Supplement with
the SEC pursuant to Section 2(a), the Company is otherwise required by the Staff or the SEC to reduce the number of Registrable
Securities included in such initial Registration Statement, then the Company shall reduce the number of Registrable Securities
to be included in such initial Registration Statement (after consultation with the Investor and its legal counsel as to the specific
Registrable Securities to be removed therefrom) until such time as the SEC shall so permit such Registration Statement to become
effective and be used as aforesaid. In the event of any reduction in Registrable Securities pursuant to this paragraph, the Company
shall file one or more New Registration Statements in accordance with Section 2(d) until such time as all Registrable Securities
have been included in Registration Statements that have been declared effective and the prospectuses contained therein is available
for use by the Investor.


 






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3.      
RELATED OBLIGATIONS.


 


With respect to the
Registration Statement and whenever any Registrable Securities are to be Registered pursuant to Section 2, including on
the Shelf Registration Statement or on any New Registration Statement, the Company shall use its reasonable best efforts to effect
the registration of the Registrable Securities in accordance with the intended method of disposition thereof and, pursuant thereto,
the Company shall have the following obligations:


 


(a)       Notifications.
The Company will notify the Investor promptly of the time when any subsequent amendment to the Shelf Registration Statement or
any New Registration Statement, other than documents incorporated by reference, has been filed with the SEC and/or has become effective
or where a receipt has been issued therefor or any subsequent supplement to a Prospectus has been filed and of any request by the
SEC for any amendment or supplement to the Registration Statement, any New Registration Statement or any Prospectus or for additional
information.


 


(b)       Amendments.
The Company will prepare and file with the SEC, promptly upon the Investor’s request, any amendments or supplements to the
Shelf Registration Statement, any New Registration Statement or any Prospectus, as applicable, that, in the reasonable opinion
of the Investor and the Company, may be necessary or advisable in connection with any acquisition or sale of Registrable Securities
by the Investor (provided, however, that the failure of the Investor to make such request shall not relieve the Company of any
obligation or liability hereunder).


 


(c)       Investor
Review. The Company will not file any amendment or supplement to the Registration Statement, any New Registration Statement
or any Prospectus, other than documents incorporated by reference, relating to the Investor, the Registrable Securities or the
transactions contemplated hereby unless (A) the Investor shall have been advised and afforded the opportunity to review and comment
thereon at least two (2) Business Days prior to filing with the SEC, (B) the Company shall have given due consideration to any
comments thereon received from the Investor or its counsel, and (C) the Investor has not reasonably objected thereto, and the Company
will furnish to the Investor at the time of filing thereof a copy of any document that upon filing is deemed to be incorporated
by reference into the Registration Statement or any Prospectus, except for those documents available via EDGAR.


 


(d)       Form
S-3. The Company will cause each amendment or supplement to the Prospectus, other than documents incorporated by reference,
to be filed with the SEC as required pursuant to the rules of Form S-3.


 


(e)       Copies
Available. The Company will furnish to the Investor and its counsel (at the expense of the Company) copies of the Registration
Statement, the Prospectus (including all documents incorporated by reference therein), any Prospectus Supplement, any New Registration
Statement and all amendments and supplements to the Registration Statement, the Prospectus or any New Registration Statement that
are filed with the SEC during the Registration Period (including all documents filed with or furnished to the SEC during such period
that are deemed to be incorporated by reference therein), in each case as soon as reasonably practicable upon the Investor’s
request and in such quantities as the Investor may from time to time reasonably request and, at the Investor’s request, will
also furnish copies of the Prospectus to each exchange or market on which sales of the Registrable Securities may be made; provided,
however, that the Company shall not be required to furnish any document (other than the Prospectus) to the Investor to the extent
such document is available on EDGAR.


 


(f)       Qualification.
The Company shall take all such action, if any, as is reasonably necessary in order to obtain an exemption for or to qualify
(i) the issuance of the Commitment Shares and the sale of the Purchase Shares to the Investor under this Agreement and (ii)
any subsequent resale of all Commitment Shares and all Purchase Shares by the Investor, in each case, under applicable
securities or “Blue Sky” laws of the states of the United States in such states as is reasonably requested by the
Investor during the Registration Period, and shall provide evidence of any such action so taken to the Investor. During
the Registration Period, the Company shall promptly notify the Investor of the receipt by the Company of any notification
with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the
securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the
initiation or threat of any proceeding for such purpose.


 






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(g)       Notification
of Stop Orders; Material Changes. The Company shall advise the Investor promptly (but in no event later than 24 hours) and
shall confirm such advice in writing, in each case: (i) of the Company’s receipt of notice of any request by the SEC or any
other federal or state governmental authority for amendment of or a supplement to the Registration Statement or any Prospectus
or for any additional information; (ii) of the Company’s receipt of notice of the issuance by the SEC or any other federal
or state governmental authority of any stop order suspending the effectiveness of the Registration Statement or prohibiting or
suspending the use of the Prospectus or Prospectus Supplement, or any New Registration Statement, or of the Company’s receipt
of any notification of the suspension of qualification of the Registrable Securities for offering or sale in any jurisdiction or
the initiation or contemplated initiation of any proceeding for such purpose; and (iii) of the Company becoming aware of the happening
of any event, which makes any statement of a material fact made in the Registration Statement or any Prospectus untrue or which
requires the making of any additions to or changes to the statements then made in the Registration Statement or any Prospectus
in order to state a material fact required by the Securities Act to be stated therein or necessary in order to make the statements
then made therein (in the case of any Prospectus, in light of the circumstances under which they were made) not misleading, or
of the necessity to amend the Registration Statement or any Prospectus to comply with the Securities Act or any other law. The
Company shall not be required to disclose to the Investor the substance or specific reasons of any of the events set forth in clauses
(i) through (iii) of the immediately preceding sentence, but rather, shall only be required to disclose that the event has occurred.
If at any time the SEC, or any other federal or state governmental authority shall issue any stop order suspending the effectiveness
of the Registration Statement or prohibiting or suspending the use of the Prospectus or Prospectus Supplement, the Company shall
use its reasonable best efforts to obtain the withdrawal of such order at the earliest practicable time. The Company shall furnish
to the Investor, without charge and upon request, a copy of any correspondence from the SEC or the staff of the SEC, or any other
federal or state governmental authority to the Company or its representatives relating to the Shelf Registration Statement, any
New Registration Statement or any Prospectus, or Prospectus Supplement as the case may be. The Company shall not deliver to the
Investor any Regular Purchase Notice, Accelerated Purchase Notice or Additional Accelerated Purchase Notice, and the Investor shall
not be obligated to purchase any shares of Common Stock under this Agreement, during the continuation or pendency of any of the
foregoing events. If at any time the SEC shall issue any stop order suspending the effectiveness of the Registration Statement
or prohibiting or suspending the use of the Prospectus or any Prospectus Supplement, the Company shall use its reasonable best
efforts to obtain the withdrawal of such order at the earliest practicable time. The Company shall furnish to the Investor, without
charge and upon request, a copy of any correspondence from the SEC or the staff of the SEC to the Company or its representatives
relating to the Registration Statement or the Prospectus, as the case may be.


 


(h)       Listing
on the Principal Market. The Company shall promptly secure the listing, or conditional listing as applicable, of all of
the Purchase Shares and Commitment Shares to be issued to the Investor hereunder on the Principal Market (subject to standard
listing conditions, if any, for transactions of this nature, official notice of issuance and the Exchange Cap) and upon each
other national securities exchange or automated quotation system, if any, upon which the Common Stock are then listed, and
shall maintain, so long as any Common Stock shall be so listed, such listing of all such Registrable Securities from time to
time issuable hereunder. The Company shall use commercially reasonable efforts to maintain the listing of the Common Stock on
the Principal Market and shall comply in all respects with the Company’s reporting, filing and other obligations under
the bylaws or rules and regulations of the Principal Market. The Company shall not take any action that would reasonably be
expected to result in the delisting or suspension of the Common Stock on the Principal Market. The Company shall promptly,
and in no event later than the following Business Day, provide to the Investor copies of any notices it receives from any
Person regarding the continued eligibility of the Common Stock for listing on the Principal Market;
provided, however, that the Company shall not provide the Investor copies of any such notice that the Company reasonably
believes constitutes material non-public information and that the Company would not be required to publicly disclose such
notice in any report or statement filed with the SEC under the Exchange Act (including on Form 8-K) or the Securities Act.
The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 3(h). 


 






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(i)       Delivery
of Shares. The Company shall cooperate with the Investor to facilitate the timely preparation and delivery of DWAC Shares (not
bearing any restrictive legend) representing the Registrable Securities to be offered pursuant to the Shelf Registration Statement
or any New Registration Statement and enable such DWAC Shares to be in such denominations or amounts as the Investor may reasonably
request and registered in such names as the Investor may request.


 


(j)       Transfer
Agent. The Company shall at all times maintain the services of the Transfer Agent with respect to its Common Stock.


 


(k)       Approvals.
The Company shall use its reasonable best efforts to cause the Registrable Securities covered by any Registration Statement to
be Registered with or approved by such other governmental agencies or authorities in the United States as may be necessary to consummate
the disposition of such Registrable Securities.


 


(l)       Confirmation
of Effectiveness. If reasonably requested in writing by the Investor at any time, the Company shall deliver to the Investor
a written confirmation from Company’s counsel of whether or not the effectiveness of such Registration Statement has lapsed
at any time for any reason (including, without limitation, the issuance of a stop order) and whether or not the Registration Statement
is currently effective and available to the Company for sale of all of the Registrable Securities.  


 


(m)       Further
Assurances. The Company agrees to take all other reasonable actions as necessary and reasonably requested in writing by the
Investor to expedite and facilitate disposition by the Investor of Registrable Securities pursuant to any Registration Statement.


 


(n)       Suspension
of Sales. The Investor agrees that, upon receipt of any notice from the Company of the existence of any suspension or stop
order as set forth in Section 3(f) or 3(g), the Investor will immediately discontinue disposition of Registrable
Securities pursuant to any Registration Statement covering such Registrable Securities until the Investor's receipt of the copies
of a notice regarding the resolution or withdrawal of the suspension or stop order as contemplated by Section 3(f) or 3(g).
Notwithstanding anything to the contrary, the Company shall cause its transfer agent to promptly deliver to the Investor DWAC Shares
without any restrictive legend in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable
Securities with respect to which the Investor has entered into a contract for sale prior to the Investor’s receipt of a notice
from the Company of the happening of any event of the kind described in Section 3(f) or 3(g) and for which the Investor
has not yet settled.


 


(o)       Transfer
Agent Instructions. On or before the date the Initial Prospectus Supplement is filed with the SEC, the Company shall
issue to the Transfer Agent the Irrevocable Transfer Agent Instructions in the form agreed to prior to the date hereof, and
on the date any Registration Statement which includes the Registrable Securities is ordered effective by the SEC, the Company
shall deliver, and shall cause legal counsel for the Company to deliver, to the Transfer Agent for such Registrable
Securities (with copies to the Investor) confirmation that such Registration Statement has been declared effective by the
SEC. Thereafter, if requested by the Investor at any time, the Company shall require its legal counsel to deliver to the
Investor a written confirmation whether or not the effectiveness of such Registration Statement has lapsed at any time for
any reason (including, without limitation, the issuance of a stop order) and whether or not the Registration Statement is
current and available to the Investor for sale of all of the Registrable Securities.


 






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4.      
OBLIGATIONS OF THE INVESTOR.


 


(a)       Investor
Information. The Investor has furnished to the Company in Exhibit A hereto such information regarding itself, the Registrable
Securities held by it, the Registrable Securities held by it and the intended method of disposition thereof, including any arrangement
between the Investor and any other Person relating to the sale or distribution of the Securities, as required to effect the registration
of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably
request. The Company shall notify the Investor in writing of any other information the Company reasonably requires from the Investor
in connection with any Registration Statement hereunder. The Investor will as promptly as practicable notify the Company of any
material change in the information set forth in Exhibit A, other than changes in its ownership of Common Stock.


 


(b)       Investor
Cooperation. The Investor agrees to cooperate with the Company as reasonably requested by the Company in connection with the
preparation and filing of any amendments and supplements to any Registration Statement or New Registration Statement hereunder.


 


5.      
EXPENSES OF REGISTRATION.


 


All reasonable expenses
of the Company, other than sales or brokerage commissions and fees and disbursements of counsel for, and other expenses of, the
Investor, incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including,
without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements
of counsel for the Company, shall be paid by the Company.


 






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6.      
INDEMNIFICATION.


 


(a)       To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor,
each Person, if any, who controls the Investor, the members, the directors, officers, partners, employees, members, managers,
agents, representatives of the Investor and each Person, if any, who controls the Investor within the meaning of the
Securities Act or the Exchange Act (each, an “Indemnified Person”), against any losses, claims, damages,
liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement (with
the consent of the Company, such consent not to be unreasonably withheld) or reasonable expenses, (collectively,
“Claims”) reasonably incurred in investigating, preparing or defending any action, claim, suit, inquiry,
proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other
regulatory agency or body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party
thereto (“Indemnified Damages”), to which any of them may become subject insofar as such Claims (or
actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue
statement or alleged untrue statement of a material fact in the Shelf Registration Statement, any New Registration Statement
or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the
securities or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered
(“Blue Sky Filing”), or the omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of
a material fact contained in the final Prospectus or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the circumstances under which the statements therein were made,
not misleading, (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other
law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or
sale of the Registrable Securities pursuant to the Shelf Registration Statement or any New Registration Statement or (iv) any
material violation by the Company of this Agreement (the matters in the foregoing clauses (i) through (iv) being,
collectively, “Violations”).  The Company shall reimburse each Indemnified Person promptly as such
expenses are incurred and are due and payable, for any reasonable out-of-pocket legal fees or other reasonable expenses
incurred by them in connection with investigating or defending any such Claim.  Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this Section 6(a): (A) shall not apply to a Claim by an
Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information
furnished in writing to the Company by the Investor or such Indemnified Person expressly for use in connection with the
preparation of the Registration Statement, any New Registration Statement, the Prospectus or any such amendment thereof or
supplement thereto, in each case if the foregoing was timely made available by the Company; (B) with respect to any
superseded prospectus, shall not inure to the benefit of any such Person from whom the Person asserting any such Claim
purchased the Registrable Securities that are the subject thereof (or to the benefit of any other Indemnified Person) if the
untrue statement or omission of material fact contained in the superseded prospectus was corrected in the revised prospectus,
as then amended or supplemented, if such revised prospectus was timely made available by the Company pursuant to Section
3(c) or Section 3(e), and the Indemnified Person was promptly advised in writing not to use the incorrect
prospectus prior to the use giving rise to a violation; (C) shall not be available to the extent such Claim is based on a
failure of the Investor to deliver, or to cause to be delivered, the prospectus made available by the Company, if such
prospectus was theretofore made available by the Company pursuant to Section 3(c) or Section 3(e); and (D)
shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent
of the Company, which consent shall not be unreasonably withheld.  Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the
Registrable Securities by the Investor pursuant to Section 8.


 


(b)       In
connection with the Shelf Registration Statement, any New Registration Statement or Prospectus, the Investor agrees to
indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the
Company, each of its directors, each of its officers who signed the Shelf Registration Statement or signs any New
Registration Statement, each Person, if any, who controls the Company within the meaning of the Securities Act or the
Exchange Act (collectively and together with an Indemnified Person, an “Indemnified Party”), against any
Claim or Indemnified Damages to which any of them may become subject, under the Securities Act, the Exchange Act or
otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the
extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information about
the Investor set forth on Exhibit A attached hereto or updated from time to time in writing by the Investor and
furnished to the Company by the Investor expressly for inclusion in the Shelf Registration Statement or Prospectus or any New
Registration Statement or from the failure of the Investor to deliver or to cause to be delivered the prospectus made
available by the Company, if such prospectus was timely made available by the Company pursuant to Section 3(c) or Section
3(e); and, subject to Section 6(d), the Investor will reimburse any reasonable out-of-pocket legal or other
expenses reasonably incurred by them in connection with investigating or defending any such Claim; provided, however,
that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained
in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the
prior written consent of the Investor, which consent shall not be unreasonably withheld; provided, further, however,
that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as
does not exceed the net proceeds to the Investor as a result of the sale of Registrable Securities pursuant to such
Registration Statement.  Such indemnity shall remain in full force and effect regardless of any investigation made by or
on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by the Investor pursuant to Section
8.


 






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(c)       Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action
or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party
shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right
to retain its own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel
retained by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying
party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party
and any other party represented by such counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate
with the indemnifying party in connection with any negotiation or defense of any such action or claim by the indemnifying party
and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person
which relates to such action or claim.  The indemnifying party shall keep the Indemnified Party or Indemnified Person fully
apprised as to the status of the defense or any settlement negotiations with respect thereto.  No indemnifying party shall
be liable for any settlement of any action, claim or proceeding effected without its written consent, provided, however, that the
indemnifying party shall not unreasonably withhold, delay or condition its consent.  No indemnifying party shall, without
the consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other
compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified
Party or Indemnified Person of a release from all liability in respect to such claim or litigation.  Following indemnification
as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person
with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made.  The
failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall
not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6,
except to the extent that the indemnifying party is prejudiced in its ability to defend such action.


 


(d)       The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, as and when bills are received or Indemnified Damages are incurred.  Any Person receiving a
payment pursuant to this Section 6 which person is later determined to not be entitled to such payment shall return such
payment to the person making it.


 


(e)       The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.


 


7.      
CONTRIBUTION.


 


To the extent any
indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent
permitted by law; provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable
Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities
shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable
Securities.


 






    9


     


    

 


8.      
ASSIGNMENT OF REGISTRATION RIGHTS.


 


The Company shall not
assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor; provided, however,
that any transaction, whether by merger, reorganization, restructuring, consolidation, financing or otherwise, whereby the Company
remains the surviving entity immediately after such transaction shall not be deemed an assignment.  The Investor may not assign
its rights under this Agreement without the prior written consent of the Company, other than to an affiliate of the Investor controlled
by Jonathan Cope or Josh Scheinfeld, in which case the assignee must agree in writing to be bound by the terms and conditions of
this Agreement.


 


		9.	AMENDMENT OF REGISTRATION RIGHTS.



 


No provision of this
Agreement may be amended or waived by the parties from and after the date that is one Business Day immediately preceding the initial
filing of the Initial Prospectus Supplement with the SEC. Subject to the immediately preceding sentence, no provision of this Agreement
may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived other than in a written instrument
signed by the party against whom enforcement of such waiver is sought. Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.


 


		10.	MISCELLANEOUS.



 


(a)       Notices.
Any notices, consents or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered: (i) upon receipt when delivered personally; (ii) upon receipt when sent by facsimile
or email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party);
or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same. The addresses for such communications shall be:


 


If to the Company:


 


Aclaris Therapeutics, Inc.


640 Lee Road, Suite 200


Wayne, PA 19087


Telephone: (484) 324-7933


E-mail: kalijackson@aclaristx.com


Attention:
Kamil Ali-Jackson


 


With a copy to (which shall not constitute notice or
service of process):


 


Cooley LLP


11951 Freedom Drive


14th Floor


Reston, Virginia 20190-5640


Telephone: (703) 456-8000


Facsimile: (703) 456-8100


Attention: Brian F. Leaf, Esq.


Email: bleaf@cooley.com


 






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If to the Investor:


 


Lincoln Park Capital Fund, LLC


440 North Wells, Suite 410


Chicago, IL 60654


Telephone:        (312) 822-9300


Facsimile:         (312) 822-9301


E-mail:              jscheinfeld@lpcfunds.com/jcope@lpcfunds.com


Attention:         Josh Scheinfeld/Jonathan
Cope


 


With a copy
to (which shall not constitute notice or service of process):


 


K&L Gates,
LLP


200 S. Biscayne
Blvd., Ste. 3900


Miami, Florida
33131


Telephone:        (305)
539-3306


Facsimile:         (305) 358-7095


E-mail:             clayton.parker@klgates.com


Attention:         Clayton
E. Parker, Esq.


 


or at such other address,
email and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice
given to each other party one (1) Business Day prior to the effectiveness of such change. Written confirmation of receipt (A) given
by the recipient of such notice, consent or other communication, (B) mechanically or electronically generated by the sender’s
facsimile machine or email account containing the time, date, and recipient facsimile number or email address, as applicable, and
an image of the first page of such transmission or (C) provided by a nationally recognized overnight delivery service, shall be
rebuttable evidence of personal service, receipt by facsimile, email or receipt from a nationally recognized overnight delivery
service in accordance with clause (i), (ii) or (iii) above, respectively.


 


(b)       No
Waiver No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any
other right, power or privilege.


 


(c)       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be
governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws
of any jurisdictions other than the State of New York.  Each party hereby irrevocably submits to the exclusive
jurisdiction of and venue in the U.S. District Court for the Southern District of New York or, if that court does not have
subject matter jurisdiction, in any state court located in the City and County of New York for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject
to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the
venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law.  If any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this
Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other
jurisdiction.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL
FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.


 






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(d)       Integration.
This Agreement, the Purchase Agreement and the other Transaction Documents constitute the entire understanding among the
parties hereto with respect to the subject matter hereof and thereof.  There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein and therein.  This Agreement, the Purchase Agreement
and the other Transaction Documents supersede all other prior oral or written agreements between the Investor, the Company, their
affiliates and persons acting on their behalf with respect to the subject matter hereof and thereof.


 


(e)       No
Third Party Benefits. Subject to the requirements of Section 8, this Agreement shall inure to the benefit of and be
binding upon the permitted successors and assigns of each of the parties hereto.


 


(f)       Headings.
The headings in this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.


 


(g)       Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature or signature delivered by e-mail in a “.pdf” format data file shall be considered due execution and shall
be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.


 


(h)       Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.


 


(i)       No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent and no rules of strict construction will be applied against any party.


 


(j)       No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.


 


* * * * * *


 






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IN WITNESS WHEREOF, the parties have
caused this Registration Rights Agreement to be duly executed as of date first written above.


 


	 	THE
    COMPANY:
	 	 
	 	ACLARIS
    THERAPEUTICS, INC.
	 	 
	 	 
	 	By: 	/s/ Neal Walker
	 	Name:     Neal
    Walker
	 	Title:       President and Chief
    Executive Officer
	 	 
	 	 
	 	INVESTOR:
	 	 
	 	 
	 	LINCOLN
    PARK CAPITAL FUND, LLC
	 	BY:
    LINCOLN PARK CAPITAL, LLC
	 	BY:
    Rockledge Capital Corporation
	 	 
	 	 
	 	By: 	/s/ Joshua Scheinfeld
	 	Name:     Joshua
    Scheinfeld
	 	Title:       President




 






    13


     


    

 


EXHIBIT A


 


Information About The Investor Furnished
To The Company By The Investor


Expressly For Use In Connection With
Each Registration Statement and Prospectus


 


Information With Respect to Lincoln Park Capital


 


Immediately prior to
the date of the Purchase Agreement, Lincoln Park Capital Fund, LLC, beneficially owned 0 shares of Common Stock. Josh Scheinfeld
and Jonathan Cope, the Managing Members of Lincoln Park Capital, LLC, the manager of Lincoln Park Capital Fund, LLC, are deemed
to be beneficial owners of all of the Common Stock owned by Lincoln Park Capital Fund, LLC. Messrs. Cope and Scheinfeld have shared
voting and investment power over the shares being offered under the prospectus supplement filed with the SEC in connection with
the transactions contemplated under the Purchase Agreement. Lincoln Park Capital, LLC is not a licensed broker dealer or an affiliate
of a licensed broker dealer.