Exhibit 10.24





 


Execution Version


 


Employee
Share Participation Plan


 


dated
23 July 2021


 


of


 


MoonLake
Immunotherapeutics AG, Zug, Switzerland


 




      


     


    

 


Table
of Contents


 








	1.
    	General Terms	3
	2.
    	Interpretations	3
	3.
    	Definitions	3
	4.
    	Administration of the Participation Plan	7
	5.
    	Size and Funding of the Participation Plan	8
	6.	Right to Participate	8
	7.
    	Grant and acquisition of Shares	9
	8.
    	Conditions Precedent regarding the Transfer of TItle	10
	9.
    	Reverse Vesting	10
	9.1
    	Vesting Schedule	10
	9.2
    	Leaver Call Options	11
	9.2.1
    	Termination
    of Contractual Relationship as a Good Leaver	11
	9.2.2
    	Termination
    of Contractual Relationship as a Bad Leaver	11
	9.3
    	Exercise of Leaver Call Options	12
	10.
    	Restrictions of transfer	12
	10.1
    	General Restrictions	12
	10.2
    	Right of First Refusal of the Company	13
	11.	Taxation and Social Security	14
	12.
    	Effective Date / Amendment and Termination of the Plan	14
	13.
    	Country-Specific Amendments	15
	14.
    	Data Privacy	15
	15.
    	Disclaimer	15
	16.
    	Miscellaneous	16
	17.
    	Governing Law and Jurisdiction	16
	Annex
    1  	Form of Allocation Agreement	17


 






    2


    Share Participation Plan


    

 


	1.	General
Terms



 


MoonLake
Immunotherapeutics AG is a stock corporation duly organized according to art. 620 ss. of the Swiss Code of Obligation and domiciled in
Zug, Switzerland.


 


With
the present Participation Plan, the Company creates an instrument to enable eligible Employees and Members of the Board to participate
in the Company at favourable conditions.


 


The
purpose of this Participation Plan is to attract and retain the best available personnel and to provide Participants with additional
incentive to increase their efforts on behalf and in the best interest of the Company and its subsidiaries. The Participation Plan is
intended to accomplish these goals by enabling the Company to grant Shares.


 


This
Participation Plan sets forth the general rules and conditions of the grant of such Shares, whereas the individual Allocation Agreements
entered into by the Company and the Participants will contain the specifically agreed terms and conditions of a Share grant.


 


The
terms of this Participation Plan apply upon the acquisition of Shares by eligible Employees and Members of the Board as of the implementation
by the Board until the Board decides in its own discretion to terminate this Participation Plan.


 


		2.	Interpretations



 


The
present Participation Plan is only applicable in its entirety. Neither the eligible person nor third parties might derive any rights
from individual provisions that are not in connection with the Participation Plan in its entirety.


 


		3.	Definitions



 


All
person-related language in this Participation Plan refers to both males and females.


 


	Accelerated
Vesting Date:
	shall have the meaning ascribed to it in Section 9.1

                                                                                 

	Administrator:	shall
    have the meaning ascribed to it in Section 4



 



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    Share Participation Plan


    

 


	Allocation
    Agreement:	means the agreement between the Company and a Participant, substantially in the form of Annex 1 .

                                                                                 

	Articles
    of Association:	means the articles of association of the Company, as amended from time to time.

                                                                               

	Bad
    Leaver:	means
                                            a Participant whose Contractual Relationship is terminated:

                                                          

    a)      by
    the Company or any of its subsidiaries for any reason which justified or would have justified the termination of the employment or
    director relationship for cause (“aus wichtigem Grund”) within the meaning of article 337 of the Swiss Code of
    Obligations, or article 337 of the Swiss Code of Obligations by analogy, or such foreign law as may be applicable for determining
    termination for cause, provided that any reason qualifying as “cause” within article 337 of the Swiss Code of Obligations
    shall constitute “cause” also for the purposes of any foreign applicable law;

     

    b)     by
    the Company or any of its subsidiaries for the reason that the Participant has violated material provisions of his/her Contractual
    Relationship; and

     

    c)      by
    the Company or any of its subsidiaries or the Participant where the Participant, at the time of termination, qualified as Good Leaver
    but where the Company or any of its subsidiaries, after the termination, have become aware of facts that (in the reasonable opinion
    of the Administrator) would have resulted in the Participant qualifying as Bad Leaver based on para a) or b) above.

     

    provided
in such cases, however, that even in the event of an amicable settlement agreement (Aufhebungsvereinbarung) being concluded in
lieu of a termination, the Participant shall continue to be a Bad Leaver where the requirements for such qualification pursuant to this
definition are met.




 






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    Share Participation Plan


    

 


	Board:	means the board of directors of the Company.

                                                                               

	Change
    of Control:	means any transfer of Shares in one or a series of related transactions that results in the proposed acquirer (including a shareholder) holding directly, or indirectly through one or more intermediaries, more than 50% of the then issued share capital of the Company.

                                                                               

	Change
    of Control Notice:	shall have the meaning ascribed to it in Section 9.1.

                                                                               

	Company:	means MoonLake Immunotherapeutics AG, Untermüli 7, Postfach 7444, 6302 Zug, Switzerland, CHE-433.093.536.

                                                                               

	Confidential
    Information:	shall have the meaning ascribed to it in Section 16.

                                                                               

	Contractual
    Relationship:	means the employment relationship or the director relationship between a Participant and the Company or any of its subsidiaries, as the case may be, which was in effect at the Grant Date.

                                                                               

	Disability:	means permanent and total disability (Invalidität) as defined under the Swiss federal law on the general part of the social security law (ATSG) (Bundesgesetz über den Allgemeinen Teil des Sozialversicherungsrechts [ATSG]) or such foreign law as may be applicable for determining disability.

                                                                               

	Employee:	means any person in an employment relationship with the Company or any of its subsidiaries, other than Members of the Board or advisors.

                                                                               

	Employee
    Shareholders’ Agreement:	means the employee shareholders’ agreement dated 23 July 2021 between the employee shareholders of the Company, the other shareholders of the Company and the Company in relation to the Company (as the same may from time to time be amended, restated, supplemented or otherwise modified). It being understood and agreed that such Employee Shareholders’ Agreement will contain, inter alia, transfer restrictions regarding the Shares (including but not limited to lock-up periods, rights of first refusals, purchase rights, drag-along and tag-along rights) but that the transfer restrictions determined in this Participation Plan shall prevail.

                                                                              




 






    5


    Share Participation Plan


    

 


	Eligible
    Persons:	means all Employees and Members of the Board of the Company and its current and future wholly owned subsidiaries who are eligible to acquire Shares according to this Participation Plan and its annexes.

                                                                               

	Good
    Leaver:	means a Participant whose Contractual Relationship is terminated by the Company or its subsidiaries or by the Participant, in each case for whatever reason other than for reasons that would qualify the Participant as a Bad Leaver.

                                                                               

	Grant
    Date:	means the date, determined by the Administrator in the Allocation Agreement, on which Shares under this Participation Plan are granted to a Participant.

                                                                               

	IPO	means the listing of shares of the Company, or, if any, of the parent company of the Company, on a recognized stock exchange.

                                                                               

	Leaver
    Call Options:	shall have the meaning ascribed to it in Section 9.1.

                                                                               

	Leaver
    Call Options Exercise Notice:	shall have the meaning ascribed to it in Section 9.3.

                                                                               

	Leaver
    Shares:	shall have the meaning ascribed to it in Section 9.1.

                                                                               

	Member
    of the Board:	means any individual member of the Board of the Company or its subsidiaries.

                                                                               

	Participant:	means an Eligible Person who actually acquires Shares under the terms and conditions of this Participation Plan.

                                                                               











    6


    Share Participation Plan


    

 


	Participation
    Plan:	means the present share participation plan.

                                                                               

	Right
    of First Refusal:	shall have the
                                                                              meaning ascribed to it in Section 10.2.

                                                                               

	Right
    of First Refusal Exercise Notice:	shall have the meaning ascribed to it in Section 10.2.

                                                                               

	Right
    of First Refusal Notice:	shall have the meaning ascribed to it in Section 10.2.

                                                                               

	Section:	means a section of this Participation Plan.

                                                                               

	Share(s):	means registered common shares with restricted transferability of the Company with a nominal value of CHF 0.01 each.

                                                                               

	Vesting
    Period:	shall have the meaning ascribed to it in Section 9.1.

                                                                               

	Vesting
    Schedule:	shall
    have the meaning ascribed to it in Section 9.1.



 

		4.	Administration
of the Participation Plan



 


This
Participation Plan shall be administered by the Board or any other corporate body, committee or individual appointed by the Board from
time to time (the “Administrator”).


 


The
Administrator shall have full discretional power and authority, subject to the provisions of this Participation Plan, to:


 


		a)	select
                                            the Participants eligible for receiving Shares under this Participation Plan;



 


		b)	grant
                                            Shares, on such terms, consistent with the rules of this Participation Plan, as it shall
                                            determine in its sole discretion;



 


		c)	establish
                                            such rules and regulations as it may deem appropriate for the proper administration and operation
                                            of the Participation Plan;



 






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    Share Participation Plan


    

 


		d)	make
                                            such determinations under, and such interpretations of, and to take such steps in connection,
                                            with the Participation Plan and the Shares granted thereunder as it considers necessary or
                                            advisable; and



 


		e)	amend
                                            or terminate the Participation Plan in accordance with Section 12.



 


All
decisions, determinations and interpretations of the Administrator regarding the Participation Plan shall be final and binding for the
Eligible Persons and the Participants.


 


		5.	Size
and Funding of the Participation Plan



 


The
Participation Plan is based on article 4 of the Articles of Association, as amended from time to time. Article 4 currently provides for
a conditional increase of the share capital of a maximum of CHF 6,000.00 by the issuance of a maximum of 600,000 Shares with a nominal
value of CHF 0.01 each.


 


		6.	Right
to Participate



 


The
Administrator shall select the Employees and the Members of the Board who are eligible to participate under this Participation Plan at
its sole discretion. It being understood that the Administrator might decide that no one shall be eligible in one or several relevant
year(s).


 


The
Administrator shall also determine at its sole discretion about:


 


		a)	the
                                            number of Shares offered to each specific Eligible Person;



 


		b)	the
                                            Grant Date;



 


		c)	the
                                            offered purchase price of the Shares (it being understood that the Shares may also be granted
                                            free of charge or in lieu of salary payments);



 


		d)	as
                                            well as all other parameters of the offered Shares;



 


all
in accordance with the provisions of this Participation Plan.


 


The
participation right of the Eligible Person is personal and non-transferable.


 


Neither
the establishment of this Participation Plan, nor the eligibility to participate, nor the granting of Shares hereunder, nor any (other)
action of the Company or the Administrator in connection with this Participation Plan does create any right to any (further) participation
or continued employment or mandate of the Company. The election as an Eligible Person as well as the granting of any rights or payments
under this Participation Plan is on a voluntary basis, which does not create any right of future participation. Even repeated grants
without the reservation of voluntariness shall not create any legal claim for the Eligible Persons and the Participants, neither in respect
to their cause nor their amount nor for the past nor for the future.


 






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    Share Participation Plan


    

 


		7.	Grant
and acquisition of Shares



 


The
grant of Shares to a Participant under this Participation Plan and the respective terms and conditions thereof shall be evidenced by
an Allocation Agreement, substantially in the form of Annex 1 or such other form as the Administrator may determine from time
to time, duly signed by the Company and the Participant.


 


The
Administrator shall inform the Eligible Person about the number of offered Shares and the purchase price per Share by sending an Allocation
Agreement to the Eligible Person. Simultaneously, the Administrator shall determine and inform the Eligible Person about the deadline
until when the Eligible Person might accept the offer.


 


By
returning, the duly completed and duly signed Allocation Agreement to the Company within the deadline set by the Administrator, the Eligible
Person irrevocably accepts the grant of the offered Shares (to the extent indicated in the Allocation Agreement) according to the terms
and conditions set out in the Allocation Agreement and this Participation Plan.


 


In
particular, by returning the duly completed and duly signed Allocation Agreement the Participant undertakes to pay the purchase price
and to acquire the indicated number of Shares at the Grant Date.


 


The
transfer of title takes place at the Grand Date determined by the Administrator if the conditions precedent of grant set out in Section
8 are met.


 


By
signing the Allocation Agreement, the Participant entitles the Company to register the Participant as the owner of the acquired Shares
into the shareholders’ register of the Company.


 


No
Eligible Person shall have any right or claim under this Participation Plan, unless he/she has specifically been granted Shares based
on a counter-signed Allocation Agreement and has thus become a Participant. The promise to grant Shares, or the attribution of Shares
in any document other than in an Allocation Agreement shall not be considered as a valid grant of Shares until it is formalized in an
Allocation Agreement pursuant to this Participation Plan.


 


As
of the date of signing the Allocation Agreement by the Participant, the terms and provisions of this Participation Plan form an integral
part of the employment or director relationship of the Participant with the Company.


 






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		8.	Conditions
Precedent regarding the Transfer of TItle



 


Full
legal title in the respective Shares (including voting and dividend rights) shall transfer to the Participant at the Grant Date, subject
to the fulfilment of the following conditions precedent and unless otherwise agreed upon in the Allocation Agreement or the Participation
Plan:


 


		a)	the
                                            Participant’s Contractual Relationship is not being terminated at the Grant Date; and



 


		b)	the
                                            Participant has signed the form of accession to the then current Employee Shareholders’
                                            Agreement as Employee Shareholder (as defined in the Employee Shareholders’ Agreement),
                                            substantially in the form of Annex 2, as amended from time to time.



 


		9.	Reverse
Vesting



 


		9.1	Vesting
Schedule



 


100%
of the Shares granted to a Participant under this Participation Plan shall be considered unvested at the Grant Date and, therefore, be
subject to a reverse vesting and respective call option (the «Leaver Call Options») as further set forth in this Section
9 (the «Leaver Shares»).


 


The
Leaver Shares of each Participant shall (reverse) vest over a period of 4 years (the «Vesting Period») as follows
(the «Vesting Schedule»):


 


		a)	on
                                            the first anniversary of the Grant Date, 25% of the Shares shall vest, whereas fractions
                                            of Shares shall be rounded down to the next full number;



 


		b)	on
                                            the second anniversary of the Grant Date, 25% of the Shares shall vest, whereas fractions
                                            of Shares shall be rounded down to the next full number;



 


		c)	on
                                            the third anniversary of the Grant Date, 25% of the Shares shall vest, whereas fractions
                                            of Shares shall be rounded down to the next full number;



 


		d)	on
                                            the fourth and last anniversary of the Grant Date, all Options shall fully vest.



 






    10


    Share Participation Plan


    

 


If
a Participant, after the Grant Date, ceases to provide services to the Company due to sickness, accident, parental leave or any other
voluntary or involuntary leave of absence, vesting of unvested shares shall be put on hold 90 calendar days after the beginning of such
a leave of absence. The vesting shall continue when the Participant resumes his/her services to the Company.


 


If
a Participant reduces his/her workload by more than 30% compared to the workload on the Grant Date, the Vesting Schedule for unvested
shares shall be extended proportionately.


 


Upon
the occurrence of a Change of Control, the Administrator shall notify the Participant (the “Change of Control Notice”)
that all Shares which have not vested by virtue of the Vesting Schedule agreed upon in the Allocation Agreement, shall continue to vest
in accordance with the Vesting Schedule except that any and all unvested Shares shall be deemed fully vested at the earlier of (the “Accelerated
Vesting Date”):


 


		a)	12
                                            months (or such shorter period determined by the Board in the Change of Control Notice) after
                                            the occurrence of a Change of Control; or



 


		b)	the
                                            date after the occurrence of the Change of Control on which a termination notice is served
                                            in relation to the relevant Contractual Relationship with the Company or its subsidiaries
                                            by the Company or the subsidiary for any reason that would not qualify the Participant as
                                            a Bad Leaver or by the Participant for good cause within the meaning of article 337 of the
                                            Swiss Code of Obligations or article 337 of the Swiss Code of Obligations by analogy (or
                                            an equivalent provision under any applicable foreign law).



 


		9.2	Leaver
Call Options



 


		9.2.1	Termination
                                            of Contractual Relationship as a Good Leaver



 


If,
before the end of the Vesting Period, the Contractual Relationship of the relevant Participant is terminated and the Participant qualifies
as a Good Leaver, the Company, or any third party designated by it, shall have an option to purchase all or a pro rata portion of the
Leaver Shares that are unvested on the day the termination becomes effective at the nominal value.


 


		9.2.2	Termination
                                            of Contractual Relationship as a Bad Leaver



 


If,
before the end of the Vesting Period, the Contractual Relationship of the relevant Participant is terminated and the Participant qualifies
as a Bad Leaver, the Company, or any third party designated by it, shall have an option to purchase all or a pro rata portion of all
Leaver Shares, irrespective of whether they have already vested or not, at nominal value.


 






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    Share Participation Plan


    

 


		9.3	Exercise
of Leaver Call Options



 


In
the event of a termination of the employment relationship, if the Company, or any third party designated by it, wishes to exercise the
Leaver Call Options, the Company, or the third party designated by it, shall notify the relevant Participant (or, as the case may be,
their legal successor, receiver, insolvency judge or any other person with the right to act on behalf of the relevant Shareholder or
their estate) within 30 calendar days of the effective date of the termination and state in such notice the number of Leaver Shares that
the Company, or the third party designated by it, wishes to purchase and the purchase price for such Shares as determined by the Administrator
in accordance with


Section 9.2 (the «Leaver Call Options Exercise Notice»).


 


The
transfer of the relevant Leaver Shares against payment of the purchase price shall be consummated within 60 calendar days from the date
of the Leaver Call Options Exercise Notice.


 


Each
Participant hereby (i) assigns and transfers to the Company, and the Company hereby accepts such assignment and transfer, upon and with
effect as of the occurrence of a termination of the Contractual Relationship, in each case, as required to effect a transfer of Shares
by such Participant pursuant to this Section 9.


 


Sections
14.3 (Right of First Refusal) and 14.6 (Purchase Option) of the Employee Shareholders’ Agreement shall not apply in case Leaver
Call Options are exercised.


 


		10.	Restrictions
of transfer



 


		10.1	General
Restrictions



 


Any
Shares acquired under this Participation Plan are subject to such transfer restrictions as set forth in this Participation Plan, the
Articles of Association, the Employee Shareholders’ Agreement, the applicable securities law provisions and by the Board.


 


The
Shares granted under this Participation Plan will be delivered into a blocked custody account with the Company or a designated third
party, unless the Administrator orders otherwise.


 


No
Participant shall, except with the prior written consent of the Board and subject to the Drag-Along and Tag-Along Rights (as defined
in the Employee Shareholders’ Agreement) and the Leaver Call Options, transfer Leaver Shares during the Vesting Period.


 






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    Share Participation Plan


    

 


No
Participant shall pledge, hypothecate, assign by way of security or otherwise create any lien, encumbrances, charges or third party right
on any Shares or any right granted under this Participation Plan. The Shares shall remain free and clear of any liens, encumbrances,
charges or any other third party rights.


 


		10.2	Right
of First Refusal of the Company



 


Each
Participant hereby grants to the Company, or to any third party designated by it, a right of first refusal with respect to the Shares
granted under this Participation Plan in the event such Participant wishes to transfer all or a part of such vested Shares to a third
party (including another shareholder of the Company) (the “Right of First Refusal”).


 


In
such a case, the Participant shall submit to the Company (i) an offer stating the price and terms of the proposed transfer (including
the identity of the proposed acquirer (if any) and (ii) a copy of such offer (if any) (the “Right of First Refusal Notice”).
The price and terms of the Right of First Refusal shall either be the price and terms of the bona fide purchase offer from a third party
or, in the absence of such a third party offer, the price and terms offered by the Participant in the Right of First Refusal Notice.


 


If
the Company wishes to exercise its right in respect of all or part of the relevant Shares it shall so notify the Participant within a
period of 30 calendar days from the receipt of the Right of First Refusal Notice (the “Right of First Refusal Exercise Notice”)
from the Participant.


 


The
transfer of the relevant Shares shall be consummated within 60 calendar days from receipt of the Right of First Refusal Notice.


 


In
the event the Right of First Refusal is not exercised or not exercised for all relevant offered Shares, the Participant shall be free,
subject to further restrictions as may apply under the Employee Shareholders’ Agreement, the Articles of Association, this Participation
Plan or any other arrangement, to transfer the relevant Shares to the proposed acquirer, on terms not more favorable than those offered
to the Company in the Right of First Refusal Notice, within a period of three months after expiry of the 30 calendar day period to submit
a Right of First Refusal Exercise Notice. Thereafter, the procedure pursuant to this Section 10.2 shall be repeated prior to any such
transfer.


 






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		11.	Taxation
and Social Security



 


Any
social security and similar contributions legally due on the allocation of Shares granted hereunder or on any other realization of income
derived from the Shares are shared accordingly to the applicable laws and agreements between the Company and such Participants. To the
extent the Company has paid the Participant’s share of such contribution, the Participant shall upon demand reimburse the Company the
amount so paid. The Company reserves the right to withhold parts of the Participant’s ordinary salary or other remuneration (including
Shares issuable or transferable under this Participation Plan) to pay any employee’s contributions to social security, taxes or
other duties, if financial means are not provided by the Participant otherwise.


 


The
Company shall disclose any taxable income derived under this Participation Plan in the salary statement (Lohnausweis) as far as
the Company is aware of such income, and shall deduct the relevant source tax, if any.


 


To
enable the Company to fully disclose any taxable income derived under this Participation Plan, the Participant undertakes to immediately
inform the Company about any realization of income derived from the Options or the Shares, which the Company might not be aware of. Such
duty includes (among others) to inform the Company about any sale of Shares and about the terms and conditions thereof (including the
purchase price).


 


It
is the Participant’s responsibility to adhere to, declare and pay all income, wealth or other taxes incurring by reason of his/her
participation in this Participation Plan, according to the tax laws of any state or country in which he/she has a tax obligation. The
Company is not responsible for any consequences of incorrect tax declarations.


 


Any
stamp duties and other costs directly related to the issuance and delivery of the Shares, if any, payable by the Company shall be borne
by the Company.


 


		12.	Effective
Date / Amendment and Termination of the Plan



 


The
Participation Plan has been approved by the Board and became effective with the approval of the Board.


 


The
Administrator may at any time make amendments and modifications to this Participation Plan as it deems advisable, in its sole discretion,
including those amendments that may be necessary or desirable to comply with or conform to applicable tax laws. Furthermore, the Administrator
is entitled to terminate this Plan at any time.


 


The
Administrator may issue other employee participation plans, in replacement of this Participation Plan or in parallel to this Participation
Plan, at any time and in its sole discretion. It may offer Participants to transfer on a replacement plan even before expiry of this
Participation Plan and under such conditions as deemed equitable by the Company.


 






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By
signing the Allocation Agreement, the Participant confers power of attorney to any individual member of the Administrator to sign, issue,
execute, make and perform on behalf of the Participant such powers, documents, instruments, certificates or acts that seem useful to
the proxy in connection with a possible going public of the Company on a recognized securities exchange.


 


Notwithstanding
the foregoing, no such amendment shall impair any of the granted rights of any Participant with respect to any Shares granted before.


 


		13.	Country-Specific
Amendments



 


With
respect to Participants who reside or work outside Switzerland, the Administrator may, in its sole discretion, amend the terms of the
Participation Plan or Allocation Agreement with respect to such Participants in order to conform to such terms with the provisions of
local law, and the Administrator may, where appropriate, establish one or more sub-plans to reflect such amended or varied provisions.


 


		14.	Data
Privacy



 


The
Participant acknowledges and agrees that the Company generates, keeps and processes personal data of the Participant for the purposes
of administrating this Participation Plan. The Participant further agrees that the Company may disclose personal data to the Company
and other group companies and to its advisors or authorities to the extent necessary for the proper administration of this Participation
Plan or as permitted by applicable data protection laws.


 


		15.	Disclaimer



 


The
Participants acknowledge and agree by signing the Allocation Agreement:


 


		a)	that
                                            the Shares granted under this Participation Plan are granted without protection against future
                                            dilutive effects (e.g. issuance of new Shares of the Company);



 






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    Share Participation Plan


    

 


		b)	that
                                            since the Shares are currently not listed on any stock exchange or traded on any regular
                                            market the Shares are illiquid in nature and the Participant may not be able to sell his
                                            Shares;



 


		c)	that
                                            the Company does not provide any warranty or guarantee whatsoever on a positive outcome of
                                            the business and/or the value of the Company and its Shares;



 


		d)	that
                                            the investment is a venture capital investment and the risk of total loss of value regarding
                                            the Shares cannot be excluded.






 


		16.	Miscellaneous



 


Any
notices to be given to the Company shall be deemed given properly if sent to the Company’s head office, and any notice to be given to
the Participants shall be deemed given properly if sent to the Participant’s personal domicile address or email address, which have been
last notified by the Participant to the Company.


 


The
Participant agrees to keep secret and confidential and not to use, disclose or divulge to any third party or to enable or cause any person
to become aware of any of the terms and conditions of this Participation Plan or the Allocation Agreement (all such information collectively
“Confidential Information”).


 


The
non-disclosure obligation shall not apply to any disclosure of Confidential Information required by law or regulations. In the event
a disclosure of Confidential Information is required by law or regulations (including, without limitation, for tax, audit or regulatory
purposes), the Participant shall use all reasonable efforts to arrange for the confidential treatment of the materials and information
so disclosed.


 


Each
Participant, by signing the Allocation Agreement, undertakes to comply strictly with all applicable laws and regulations, as well as
with the Company’s insider trading policies and other limitations determined by the Administrator, as in effect from time to time, where
relevant.


 


This
Participation Plan, where required, and the Allocation Agreement may be executed and amended in writing or in simple electronic form
(e.g. through an electronic signature provider such as DocuSign or AdobeSign or through a scanned copy of the original signature) and
be delivered by electronic mail or another transmission method; the counterpart so executed and delivered shall be deemed to have been
duly executed and validly delivered and be valid and effective for all purposes.


 


If
at any time any provision of this Participation Plan or any part of thereof is or becomes invalid or unenforceable, then neither the
validity nor the enforceability of the remaining provisions or the remaining part of the provision shall in any way be affected or impaired
thereby. The invalid or unenforceable provision or part thereof shall be replaced by a valid or enforceable provision, which shall best
reflect the original intention and shall to the extent possible achieve the same economic result.


 


		17.	Governing
Law and Jurisdiction



 


This
Participation Plan shall be subject to, and governed by Swiss law (under the exclusion of its private international law statute and international
treaties).


 


Any
dispute arising under or in connection with this Participation Plan shall be submitted, to the extent permitted by law, to the exclusive
jurisdiction of the ordinary courts at the registered offices of the Company.


 




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    Share Participation Plan


    

 


Annex
1  Form of Allocation Agreement


 


This
agreement is made by and between


 


MoonLake
Immunotherapeutics AG

Untermüli 7, Postfach 7444

6302 Zug

Switzerland

(hereinafter the “Company”)


 


and


 


[Name
of Eligible Person]

[address]

[plc] [place] 

(hereinafter the “Eligible Person”)


 


		Preamble

                                                                                 
	



In
consideration of the mutual covenants and agreements herein contained, article 4 of the Articles of Association of the Company
and pursuant to the Company’s share participation plan dated 23 July 2021 which is attached hereto and made a part hereof (the “Participation
Plan”), the Company and the Eligible Person agree as follows. Unless defined otherwise herein, terms defined in the Participation
Plan shall have the same meanings when used herein.


 


		1.	Offer





The Company hereby offers to the Eligible Person, subject to the terms and conditions contained in this Allocation Agreement and in the
Participation Plan, to acquire:


 


	

          Award:
	max. [number] Shares

                                                                                 

	Purchase
    Price:	CHF [price] per Share

                                                                                 

	Grant
    Date:	[Grant Date]

                                                                                 

	Vesting:	[In accordance with Section 9.1 of the Participation Plan/In deviation to Section 9.1 of the Participation Plan, the Vesting Schedule shall be as follows: [...]].

                                                                                 

	Other
    Terms:	Pursuant to the provisions of the Participation Plan.

                                                                                 

	Validity
    Date of the Offer:	[Date]


 






    17


    Share Participation Plan


    

 


		2.	Acceptance



 




The Eligible Person accepts and exercises the right to acquire the following number of Shares (i.e. registered common shares with restricted
transferability of the Company with a nominal value of CHF 0.01 each) according to the terms and conditions contained in this Allocation
Agreement and in the Participation Plan:


	 

    Number
    of Shares to be acquired:

     
	_________________


Furthermore,
the Eligible Person accepts to pay the following price for these Shares within [10] calendar days after signing this Allocation Agreement:


	 

    Price
    to be paid for such number of Shares

     
	CHF
    _____________


By
signing this Allocation Agreement, the Eligible Person expresses complete acceptance and understanding of the terms set forth in the
Participation Plan, in this Allocation Agreement, in the Articles of Association and in any other document related thereto.


 


The
Eligible Person acknowledges that such Shares will be issued from conditional capital according to Section 4 of the Articles of Association
of the Company.


 


In
particular (including but not limited to), the Eligible Person recognizes the voluntary nature of the offer and the grant and accepts
that the present offer and grant may be a one-time event and that no further grants may be made and that the Participation Plan may be
amended or terminated by the Administrator at any time. Furthermore, the Eligible Person is aware that the purchase of Shares is optional.


 


The
Eligible Person acknowledges and is fully aware of Section 9.2 and 10.2 of the Participation Plan (i.e. the leaver call options and the
right of first refusal of the Company) and the requirement to accede to the current Employee Shareholders’ Agreement.


 






    18


    Share Participation Plan


    

 


		3.	Governing
                                            law and jurisdiction



 




Section 17 (Governing Law and Jurisdiction) of the Participation Plan is hereby incorporated mutatis mutandis


 


For
MoonLake Immunotherapeutics AG


 


	 	 	 
	Place
and Date
  	 	Name:
	 	 	 
	Place
and Date
  	 	Name:
	 	 	 
	Understood and agreed by [Name of Eligible Person]

	 	 	 
	 	 	 
	Place
and date
  	 	Name:



 




    19


    Share Participation Plan


    

 


Annex
2 Form of Accession


 


This
form of accession (the “Declaration”) is made by


 


[Name
of Eligible Person]   

[address]    

[plc] [place]    

(hereinafter the “New Shareholder”)


 


		Preamble	



 


The
employee shareholders of MoonLake Immunotherapeutics AG, the other shareholders and MoonLake Immunotherapeutics AG (hereinafter the «Company»)
have entered into a shareholders’ agreement on 23 July 2021 (hereinafter the “Employee Shareholders’ Agreement”).


 


Shares
(as such term is defined in the Employee Shareholders’ Agreement) are about to be transferred or issued to the New Shareholder
pursuant to and in accordance with the Company’s Participation Plan dated 23 July 2021 (hereinafter the “Participation
Plan”).


 


Therefore,
the New Shareholder confirms and accepts as follows:


 


		1.	Accession
                                            to the Shareholders’ Agreement



 


The
New Shareholder confirms that he/she has been supplied with, and has read a copy of, the Employee Shareholders’ Agreement and covenants
with each of the Parties (as such term is defined in the Employee Shareholders’ Agreement) to observe, perform and be bound by
all the terms of the Employee Shareholders’ Agreement (as the same may from time to time be amended, restated, supplemented or
otherwise modified) as an Employee Shareholder.


 


		2.	Reservation



 


The
New Shareholder makes the reservation, that the leaver call options and right of first refusal of the Company according to the Participation
Plan shall prevail the rights of the shareholders according to the Employee Shareholder Agreement; e.g. it being understood that the
New Shareholder shall send its offer according to section 14.3 of the Employee Shareholders’ Agreement only after the right of
first refusal of the Company according to section 10 of the Participation Plan have lapsed.


 


Furthermore,
the New Shareholder clarifies, that the Company might exercise its prevailing right of first refusal for its own account as well as fiduciary
for a third party or a subsidiary.


 


		3.	Address
                                            Confirmation



 


The
New Shareholder confirms that his address, for the purposes of section 17.5 of the Employee Shareholders’ Agreement shall be as
follows: [Name of Eligible Person], [address], [plc] , [place] .


 


		4.	Applicable
                                            Law and Jurisdiction



 


This
Declaration and the transactions contemplated hereby shall be governed, interpreted and construed by, under and pursuant to Swiss substantive
law (under the exclusion of its private international law statute and international treaties).


 


The
ordinary courts at the Company’s registered seat shall have exclusive jurisdiction over any disputes arising in connection with
this Agreement.


 


Acknowledged
and approved by [Name of Eligible Person]


 





		 	 
	Place
and date
  	 	Signature



 


 


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