Document:

life-ex102_6.htm

Exhibit 10.2

ATYR PHARMA, INC.

2015 EMPLOYEE STOCK PURCHASE PLAN

 

The purpose of the aTyr Pharma, Inc. 2015 Employee Stock Purchase Plan (the “Plan”) is to provide eligible employees of aTyr Pharma, Inc. (the “Company”) and each Designated Subsidiary (as defined in Section 11) with opportunities to purchase shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”).  Effective March 2, 2022, the number of shares of Common Stock reserved and available for issuance under the Plan shall be 843,246,1 which number consists of the 93,246 shares reserved and available for issuance prior to an additional 750,000 shares authorized for issuance pursuant to an amendment to the Plan adopted by the Company’s Board of Directors (the “Board”) on March 2, 2022 subject to the approval of the Company’s stockholders. The Plan is intended to constitute an “employee stock purchase plan” within the meaning of Section 423(b) of the Internal Revenue Code of 1986, as amended (the “Code”), and shall be interpreted in accordance with that intent.

1.Administration.  The Plan will be administered by the person or persons (the “Administrator”) appointed by the Board”) for such purpose.  The Administrator has authority at any time to: (i) adopt, alter and repeal such rules, guidelines and practices for the administration of the Plan and for its own acts and proceedings as it shall deem advisable; (ii) interpret the terms and provisions of the Plan; (iii) make all determinations it deems advisable for the administration of the Plan; (iv) decide all disputes arising in connection with the Plan; and (v) otherwise supervise the administration of the Plan.  All interpretations and decisions of the Administrator shall be binding on all persons, including the Company and the Participants.  No member of the Board or individual exercising administrative authority with respect to the Plan shall be liable for any action or determination made in good faith with respect to the Plan or any option granted hereunder.

2.Offerings.  The Company will make one or more offerings to eligible employees to purchase Common Stock under the Plan (“Offerings”).  Unless otherwise determined by the Administrator, the initial Offering will begin on January 1st of the year designated by the Administrator and will end on the following June 30th (the “Initial Offering”).  Thereafter, unless otherwise determined by the Administrator, an Offering will begin on the first business day occurring on or after each January 1st and July 1st and will end on the last business day occurring on or before the following June 30th and December 31st, respectively.  The Administrator may, in its discretion, designate a different period for any Offering, provided that no Offering shall exceed 12 months in duration or overlap any other Offering.

3.Eligibility.  All individuals classified as employees on the payroll records of the Company and each Designated Subsidiary are eligible to participate in any one or more of the Offerings under the Plan, provided that as of the first day of the applicable Offering (the “Offering Date”) they are customarily employed by the Company or a Designated Subsidiary for more than 20 hours a week and have completed at least six months of employment.  Notwithstanding any other provision herein, individuals who are not contemporaneously classified as employees of the Company or a Designated Subsidiary for purposes of the Company’s or applicable Designated Subsidiary’s payroll system are not considered to be eligible employees of the Company or any Designated Subsidiary and shall not be eligible to participate in the Plan.  In the event any such individuals are reclassified as employees of the Company or a Designated Subsidiary for any purpose, including, without limitation, common law or statutory employees, by any action of any third party, including, without limitation, any government agency, or as a result of any private lawsuit, action or administrative proceeding, such individuals shall, notwithstanding such reclassification, remain ineligible for participation.  Notwithstanding the foregoing, the exclusive means for individuals who are not contemporaneously classified as employees of the Company or a Designated Subsidiary on the Company’s or Designated Subsidiary’s payroll system to become eligible to participate in this Plan is through an amendment to this Plan, duly executed by the Company, which specifically renders such individuals eligible to participate herein.

 

1  Reflects the 1-for-14 reverse stock split (rounded down to the nearest whole share) of the Company’s issued and outstanding common stock that was effectuated as of June 28, 2019.

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4.Participation.  

(a)Participants in Offering.  An eligible employee who is not a Participant on any Offering Date may participate in such Offering by submitting an enrollment form to his or her appropriate payroll location at least 15 business days before the Offering Date (or by such other deadline as shall be established by the Administrator for the Offering).

(b)Enrollment.  The enrollment form will (a) state a whole percentage to be deducted from an eligible employee’s Compensation (as defined in Section 11) per pay period, (b) authorize the purchase of Common Stock in each Offering in accordance with the terms of the Plan and (c) specify the exact name or names in which shares of Common Stock purchased for such individual are to be issued pursuant to Section 10.  An employee who does not enroll in accordance with these procedures will be deemed to have waived the right to participate.  Unless a Participant files a new enrollment form or withdraws from the Plan, such Participant’s deductions and purchases will continue at the same percentage of Compensation for future Offerings, provided he or she remains eligible.

(c)Notwithstanding the foregoing, participation in the Plan will neither be permitted nor be denied contrary to the requirements of the Code.

5.Employee Contributions.  Each eligible employee may authorize payroll deductions at a minimum of one percent (1%) up to a maximum of fifteen percent (15%) of such employee’s Compensation for each pay period.  The Company will maintain book accounts showing the amount of payroll deductions made by each Participant for each Offering.  No interest will accrue or be paid on payroll deductions.

6.Deduction Changes.  Except as may be determined by the Administrator in advance of an Offering, a Participant may not increase or decrease his or her payroll deduction during any Offering, but may increase or decrease his or her payroll deduction with respect to the next Offering (subject to the limitations of Section 5) by filing a new enrollment form at least 15 business days before the next Offering Date (or by such other deadline as shall be established by the Administrator for the Offering).  The Administrator may, in advance of any Offering, establish rules permitting a Participant to increase, decrease or terminate his or her payroll deduction during an Offering.

7.Withdrawal.  A Participant may withdraw from participation in the Plan by delivering a written notice of withdrawal to his or her appropriate payroll location.  The Participant’s withdrawal will be effective as of the next business day.  Following a Participant’s withdrawal, the Company will promptly refund such individual’s entire account balance under the Plan to him or her (after payment for any Common Stock purchased before the effective date of withdrawal).  Partial withdrawals are not permitted.  Such an employee may not begin participation again during the remainder of the Offering, but may enroll in a subsequent Offering in accordance with Section 4.

8.Grant of Options.  On each Offering Date, the Company will grant to each eligible employee who is then a Participant in the Plan an option (“Option”) to purchase on the last day of such Offering (the “Exercise Date”), at the Option Price (as defined herein) for, the lowest of (a) a number of shares of Common Stock determined by dividing such Participant’s accumulated payroll deductions on such Exercise Date by the Option Price (as defined herein), (b) 2,500 shares; or (c) such other lesser maximum number of shares as shall have been established by the Administrator in advance of the Offering; provided, however, that such Option shall be subject to the limitations set forth below.  Each Participant’s Option shall be exercisable only to the extent of such Participant’s accumulated payroll deductions on the Exercise Date.  The purchase price for each share purchased under each Option (the “Option Price”) will be eighty-five percent (85%) of the Fair Market Value of the Common Stock on the Offering Date or the Exercise Date, whichever is less.

Notwithstanding the foregoing, no Participant may be granted an Option hereunder if such Participant, immediately after the Option was granted, would be treated as owning stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any Parent or Subsidiary (as defined in Section 11).  For purposes of the preceding sentence, the attribution rules of Section 424(d) of the Code shall apply in determining the stock ownership of a Participant, and all stock which the Participant has a contractual right to purchase shall be treated as stock owned by the Participant.  In addition, no Participant may be granted an Option which permits his or her rights to purchase stock under the Plan, and any other employee stock purchase plan of the Company and its Parents and Subsidiaries, to accrue at a rate which exceeds $25,000 of the fair market value of such stock (determined on the Option grant date or dates) for each calendar year in which the Option is outstanding at any time.  The purpose of the limitation in the preceding sentence is to 

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comply with Section 423(b)(8) of the Code and shall be applied taking Options into account in the order in which they were granted.

9.Exercise of Option and Purchase of Shares.  Each employee who continues to be a Participant in the Plan on the Exercise Date shall be deemed to have exercised his or her Option on such date and shall acquire from the Company such number of whole shares of Common Stock reserved for the purpose of the Plan as his or her accumulated payroll deductions on such date will purchase at the Option Price, subject to any other limitations contained in the Plan.  Any amount remaining in a Participant’s account at the end of an Offering solely by reason of the inability to purchase a fractional share will be carried forward to the next Offering; any other balance remaining in a Participant’s account at the end of an Offering will be refunded to the Participant promptly.

10.Issuance of Certificates.  Certificates representing shares of Common Stock purchased under the Plan may be issued only in the name of the employee, in the name of the employee and another person of legal age as joint tenants with rights of survivorship, or in the name of a broker authorized by the employee to be his, her or their, nominee for such purpose.

11.Definitions.  

The term “Compensation” means the amount of base pay, prior to salary reduction pursuant to Sections 125, 132(f) or 401(k) of the Code, but excluding overtime, commissions, incentive or bonus awards, allowances and reimbursements for expenses such as relocation allowances or travel expenses, income or gains on the exercise of Company stock options, and similar items.

The term “Designated Subsidiary” means any present or future Subsidiary (as defined below) that has been designated by the Board to participate in the Plan.  The Board may so designate any Subsidiary, or revoke any such designation, at any time and from time to time, either before or after the Plan is approved by the stockholders.  

The term “Fair Market Value of the Common Stock” on any given date means the fair market value of the Common Stock determined in good faith by the Administrator; provided, however, that if the Common Stock is admitted to quotation on the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market or another national securities exchange, the determination shall be made by reference to the closing price on such date.  If there is no closing price for such date, the determination shall be made by reference to the last date preceding such date for which there is a closing price.  

The term “Initial Public Offering” means the consummation of the first underwritten firm commitment public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, covering the offer and sale by the Company of its Common Stock.

The term “Parent” means a “parent corporation” with respect to the Company, as defined in Section 424(e) of the Code.

The term “Participant” means an individual who is eligible as determined in Section 3 and who has complied with the provisions of Section 4.

The term “Subsidiary” means a “subsidiary corporation” with respect to the Company, as defined in Section 424(f) of the Code.

12.Rights on Termination of Employment.  If a Participant’s employment terminates for any reason before the Exercise Date for any Offering, no payroll deduction will be taken from any pay due and owing to the Participant and the balance in the Participant’s account will be paid to such Participant or, in the case of such Participant’s death, to his or her designated beneficiary as if such Participant had withdrawn from the Plan under Section 7.  An employee will be deemed to have terminated employment, for this purpose, if the corporation that employs him or her, having been a Designated Subsidiary, ceases to be a Subsidiary, or if the employee is transferred to any corporation other than the Company or a Designated Subsidiary.  An employee will not be deemed to have terminated employment for this purpose, if the employee is on an approved leave of absence for military service or sickness or for any other purpose approved by the Company, if the employee’s right to reemployment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Administrator otherwise provides in writing.

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13.Special Rules.  Notwithstanding anything herein to the contrary, the Administrator may adopt special rules applicable to the employees of a particular Designated Subsidiary, whenever the Administrator determines that such rules are necessary or appropriate for the implementation of the Plan in a jurisdiction where such Designated Subsidiary has employees; provided that such rules are consistent with the requirements of Section 423(b) of the Code.  Any special rules established pursuant to this Section 13 shall, to the extent possible, result in the employees subject to such rules having substantially the same rights as other Participants in the Plan.

14.Optionees Not Stockholders.  Neither the granting of an Option to a Participant nor the deductions from his or her pay shall constitute such Participant a holder of the shares of Common Stock covered by an Option under the Plan until such shares have been purchased by and issued to him or her.

15.Rights Not Transferable.  Rights under the Plan are not transferable by a Participant other than by will or the laws of descent and distribution, and are exercisable during the Participant’s lifetime only by the Participant.

16.Application of Funds.  All funds received or held by the Company under the Plan may be combined with other corporate funds and may be used for any corporate purpose.

17.Adjustment in Case of Changes Affecting Common Stock.  In the event of a subdivision of outstanding shares of Common Stock, the payment of a dividend in Common Stock or any other change affecting the Common Stock, the number of shares approved for the Plan and the share limitation set forth in Section 8 shall be equitably or proportionately adjusted to give proper effect to such event.

18.Amendment of the Plan.  The Board may at any time and from time to time amend the Plan in any respect, except that without the approval within 12 months of such Board action by the stockholders, no amendment shall be made increasing the number of shares approved for the Plan or making any other change that would require stockholder approval in order for the Plan, as amended, to qualify as an “employee stock purchase plan” under Section 423(b) of the Code.

19.Insufficient Shares.  If the total number of shares of Common Stock that would otherwise be purchased on any Exercise Date plus the number of shares purchased under previous Offerings under the Plan exceeds the maximum number of shares issuable under the Plan, the shares then available shall be apportioned among Participants in proportion to the amount of payroll deductions accumulated on behalf of each Participant that would otherwise be used to purchase Common Stock on such Exercise Date.

20.Termination of the Plan.  The Plan may be terminated at any time by the Board.  Upon termination of the Plan, all amounts in the accounts of Participants shall be promptly refunded.

21.Governmental Regulations.  The Company’s obligation to sell and deliver Common Stock under the Plan is subject to obtaining all governmental approvals required in connection with the authorization, issuance, or sale of such stock.

22.Governing Law.  This Plan and all Options and actions taken thereunder shall be governed by, and construed in accordance with, the laws of the State of Delaware, applied without regard to conflict of law principles.  

23.Issuance of Shares.  Shares may be issued upon exercise of an Option from authorized but unissued Common Stock, from shares held in the treasury of the Company, or from any other proper source.

24.Tax Withholding.  Participation in the Plan is subject to any minimum required tax withholding on income of the Participant in connection with the Plan.  Each Participant agrees, by entering the Plan, that the Company and its Subsidiaries shall have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant, including shares issuable under the Plan.

25.Notification Upon Sale of Shares.  Each Participant agrees, by entering the Plan, to give the Company prompt notice of any disposition of shares purchased under the Plan where such disposition occurs within two years after the date of grant of the Option pursuant to which such shares were purchased.

26.Effective Date and Approval of Shareholders.  The Plan shall take effect upon the effectiveness of the Company’s registration statement on Form S-1 in connection with its Initial Public Offering, following stockholder approval 

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of the Plan in accordance with applicable state law, the Company’s bylaws and certificate of incorporation, and applicable stock exchange rules or pursuant to written consent.

DATE APPROVED BY THE BOARD OF DIRECTORS:  April 25, 2015

DATE APPROVED BY THE STOCKHOLDERS:  April 25, 2015 

AMENDMENT APPROVED BY THE BOARD OF DIRECTORS:  March 2, 2022

AMENDMENT APPROVED BY THE STOCKHOLDERS:  April 26, 2022

 

5Exhibit 10.1

 

AEGIS CAPITAL CORP.

 

April 27, 2022

 

PERSONAL AND CONFIDENTIAL

 

Mr. Lior Tal, Chief Executive Officer

Cyngn Inc.

1015 O’Brien Dr.,

Menlo Park, California

 

		Re:	CYN Private Placement

 

Dear Mr. Tal:

 

The purpose of this engagement
letter is to outline our agreement pursuant to which Aegis Capital Corp. (“Aegis”) will act as the lead
placement agent on a “best efforts” basis in connection with the proposed private placement (the “Placement”)
by Cyngn Inc. (collectively, with its subsidiaries and affiliates, the “Company”) of units considered at
the market under Nasdaq listing rules, consisting of one (1) share of common stock and one (1) paper warrant to purchase one (1) share
of common stock exercisable at the unit offering price (the “Securities”). This engagement letter sets forth
certain conditions and assumptions upon which the Placement is premised. The Company confirms that entry into this Agreement and completion
of the Placement with Aegis will not breach or otherwise violate the Company’s obligations to any other investment bank.

 

The terms of our agreement in
principle are as follows:

 

1. Engagement.
The Company hereby engages Aegis, for the period beginning on the date hereof and ending thirty (30) days thereafter or upon the completion
of the Placement (the “Closing”), whichever is sooner (the “Engagement Period”), to
act as the Company’s lead placement agent and investment banker in connection with the proposed Placement. During the Engagement
Period or until the consummation of the Placement, and as long as Aegis is proceeding in good faith with preparations for the Placement,
the Company agrees not to solicit, negotiate with or enter into any agreement with any other source of financing (whether equity, debt
or otherwise), any underwriter, potential underwriter, placement agent, financial advisor, investment banking firm or any other person
or entity in connection with an offering of the Company’s debt or equity securities or any other financing by the Company.

 

2. The
Placement. The Placement is expected to consist of a sale of minimum $10.0 million, up to $25.0 million of the Company’s
Securities. The warrant will be cash exercise if a Registration Statement is effective. If at any time after the Initial Exercise Date,
there is no effective registration statement registering, or no current prospectus available for the issuance of, the Warrant Shares to
the Holder, then the Warrants may also be exercised, in whole or in part, at such time by means of a “cashless exercise.”
The pricing of the Placement will be mutually agreed upon by the Company and the investors thereto. Aegis will act as the lead placement
agent for the Placement subject to, among other matters referred to herein and additional customary conditions, completion of Aegis’s
due diligence examination of the Company and its affiliates, listing approval by the Nasdaq Stock Exchange (“Exchange”)
of the Securities to be issued, and the execution of definitive transaction documents between the Company and investors in connection
with the Placement (the “Transaction Documents”). The actual size of the Placement, the precise number of Securities
to be offered by the Company and the offering price will be the subject of continuing negotiations among the Company, Aegis and investors.

  

810 Seventh Avenue, 18th floor, New York, New York 10019
(212) 813-1010/Fax (212) 813-1047

Member FINRA, SIPC

 

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3. Placement
Compensation. The placement agent commission will be 7.0% for the Placement of any Securities sold at closing and a non-accountable
expense allowance equal to 1.0% of the Placement.

 

4. Registration
Statement. To the extent the Company decides to proceed with the Placement, the Company will, as soon as practicable after Closing
of the Placement and not later than fifteen (15) days following closing of the Placement, prepare and file with the Securities and Exchange
Commission (the “Commission”) a Registration Statement on Form S-1 (the “Registration Statement”)
under the Securities Act of 1933, as amended (the “Securities Act”) and a prospectus included therein (the “Prospectus”)
covering the resale of the Securities offered and sold in the Placement, which Registration Statement shall be declared effective no more
than thirty (30) days after filing if it is not reviewed by the Commission or not more than sixty (60) days after filing if it is reviewed
by the Commission. The Registration Statement (including the Prospectus therein), and all amendments and supplements thereto, will be
in form reasonably satisfactory to Aegis, counsel to Aegis and investors in the Placement. Other than any information provided by Aegis
in writing specifically for inclusion in the Registration Statement or the Prospectus, the Company will be solely responsible for the
contents of its Registration Statement and Prospectus and any and all other written or oral communications provided by or on behalf of
the Company to any actual or prospective investor of the Securities, and the Company represents and warrants that such materials and such
other communications will not, as of the date of each filing of the Registration Statement and any amendments or as of the date of effectiveness,
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made, not misleading. If at any time prior to the completion
of the resale of the Securities by the investors an event occurs that would cause the Registration Statement or Prospectus (as supplemented
or amended) to contain an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading, the Company will notify Aegis and the investors immediately
of such event and the Company shall prepare a supplement or amendment to the Registration Statement or Prospectus that corrects such statement
or omission.

 

6. Reserved.

 

7. Company
Standstill. The Transaction Documents will provide, among other items, that the Company will agree, for a period of twelve (12)
months from the closing date of the Offering, that without the prior written consent of Aegis, it will not (a) offer, sell, issue, or
otherwise transfer or dispose of, directly or indirectly, any equity of the Company or any securities convertible into or exercisable
or exchangeable for equity of the Company; (b) file or caused to be filed any registration statement with the Commission relating to the
offering of any equity of the Company or any securities convertible into or exercisable or exchangeable for equity of the Company, other
than the registration statement contemplated hereunder; or (c) enter into any agreement or announce the intention to effect any of the
actions described in subsections (a) or (b) hereof (all of such matters, the “Standstill”). So long none of
such equity securities shall be saleable in the public market until the expiration of the twelve (12) month period described above, the
following matters shall not be prohibited by the Standstill: (i) the adoption of an equity incentive plan and the grant of awards or equity
pursuant to any equity incentive plan, and the filing of a registration statement on Form S-8; and (ii) the issuance of equity securities
in connection with an acquisition or a strategic relationship, which may include the sale of equity securities. In no event should any
equity transaction during the Standstill period result in the sale of equity at an offering price to the public less than that of the
Offering referred herein.

 

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8. Expenses.
The Company will be responsible for and will pay all expenses relating to the Placement, including, without limitation, (a) all filing
fees and expenses relating to the registration of the Securities with the Commission; (b) all FINRA filing fees; (c) all fees and expenses
relating to the listing of the Company’s equity or equity-linked securities on an Exchange; (d) all fees, expenses and disbursements
relating to the registration or qualification of the Securities under the “blue sky” securities laws of such states and other
jurisdictions as Aegis may reasonably designate (including, without limitation, all filing and registration fees, and the reasonable fees
and disbursements of the Company’s “blue sky” counsel, which will be Aegis’s counsel) unless such filings are
not required in connection with the Company’s proposed Exchange listing; (e) all fees, expenses and disbursements relating to the
registration, qualification or exemption of the Securities under the securities laws of such foreign jurisdictions as Aegis may reasonably
designate; (f) the costs of all mailing and printing of the Placement documents; (g) transfer and/or stamp taxes, if any, payable upon
the transfer of Securities from the Company to Aegis; (h) the fees and expenses of the Company’s accountants; (i) such fees of legal
counsel of the investors in the Placement as may be agreed between the Company and such investors; and (j) $75,000 for fees and expenses
including “road show”, diligence, and reasonable legal fees and disbursements for Aegis’s counsel.

 

9. Tail
Financing. Aegis shall be entitled to compensation under Section 3 herein, calculated in the manner set forth therein, with respect
to any public or private offering or other financing or capital raising transaction of any kind (“Tail Financing”)
to the extent that such financing or capital is provided to the Company by funds whom Aegis had contacted during the Engagement Period
or introduced to the Company during the Engagement Period, if such Tail Financing is consummated at any time within the twelve (12) month
period following the expiration or termination of this Agreement.

 

10. Survival.
Except as provided in Paragraphs 3, 7, 8, 9, 10, 11, 12, 13, 14, 15 and 16 hereof (which Paragraphs are intended to be legally
binding and enforceable on and against the Company and Aegis) and the exclusivity language in Section 1, this engagement letter is not
intended to be a binding legal document nor a legal commitment on the part of Aegis to provide any financing to the Company, as the agreement
between the parties hereto on these matters will be embodied in the Transaction Documents.

 

11. Termination.
Notwithstanding anything to the contrary contained herein, the Company agrees that the provisions relating to the payment of fees,
reimbursement of expenses, right of first refusal, indemnification and contribution, confidentiality, conflicts, independent contractor
and waiver of the right to trial by jury will survive any termination or expiration of this Agreement. During the engagement hereunder:
(i) the Company will not, and will not permit its representatives to, other than in coordination with Aegis, contact or solicit institutions,
corporations or other entities or individuals as potential purchasers of the Securities and (ii) the Company will not pursue any financing
transaction which would be in lieu of a Placement. Furthermore, the Company agrees that during Aegis’s engagement hereunder, all
inquiries from prospective investors will be referred to Aegis.

 

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12. Publicity.
The Company agrees that it will not issue press releases or engage in any other publicity, without Aegis’s prior written consent,
commencing on the date hereof and continuing until the final closing of the Placement.

 

13. Information.
During the Engagement Period or until the Closing, the Company agrees to cooperate with Aegis and to furnish, or cause to be
furnished, to Aegis, any and all information and data concerning the Company, and the Placement that Aegis deems appropriate (the
“Information”). The Company will provide Aegis reasonable access during normal business hours from and
after the date of execution of this engagement letter until the date of the Closing to all of the Company’s assets,
properties, books, contracts, commitments and records and to the Company’s officers, directors, employees, appraisers,
independent accountants, legal counsel and other consultants and advisors. Except as contemplated by the terms hereof or as required
by applicable law, Aegis will keep strictly confidential all non-public Information concerning the Company provided to Aegis. No
obligation of confidentiality will apply to Information that: (a) is in the public domain as of the date hereof or hereafter enters
the public domain without a breach by Aegis, (b) was known or became known by Aegis prior to the Company’s disclosure thereof
to Aegis as demonstrated by the existence of its written records, (c) becomes known to Aegis from a source other than the Company
which information is not provided by the breach of an obligation of confidentiality owed to the Company, (d) is disclosed by the
Company to a third party without restrictions on its disclosure or (e) is independently developed by Aegis as demonstrated by its
written records. For the avoidance of doubt, except as otherwise provided herein, all information which is not publicly available
relating to the Company’s proprietary technology is proprietary and confidential.

 

14. No
Third Party Beneficiaries; No Fiduciary Obligations. This engagement letter does not create, and shall not be construed as creating,
rights enforceable by any person or entity not a party hereto, except those entitled hereto by virtue of the indemnification provisions
hereof. The Company acknowledges and agrees that: (i) Aegis is not and shall not be construed as a fiduciary of the Company and shall
have no duties or liabilities to the equity holders or the creditors of the Company or any other person by virtue of this engagement letter
or the retention of Aegis hereunder, all of which are hereby expressly waived; and (ii) Aegis is a full service securities firm engaged
in a wide range of businesses and from time to time, in the ordinary course of its business, Aegis or its affiliates may hold long or
short positions and trade or otherwise effect transactions for its own account or the account of its customers in debt or equity securities
or loans of the companies which may be the subject of the transactions contemplated by this Agreement. During the course of Aegis’s
engagement with the Company, Aegis may have in its possession material, non-public information regarding other companies that could potentially
be relevant to the Company or the transactions contemplated herein but which cannot be shared due to an obligation of confidence to such
other companies.

 

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15. Indemnification,
Advancement & Contribution.

 

(a) Indemnification.
The Company agrees to indemnify and hold harmless Aegis, its affiliates and each person controlling Aegis (within the meaning of Section
15 of the Securities Act), and the directors, officers, agents and employees of Aegis, its affiliates and each such controlling person
(Aegis, and each such entity or person hereafter is referred to as an “Indemnified Person”) from and against
any losses, claims, damages, judgments, assessments, costs and other liabilities (collectively, the “Liabilities”),
and shall reimburse each Indemnified Person for all fees and expenses (including the reasonable fees and expenses of counsel for the Indemnified
Persons) (collectively, the “Expenses”) and agrees to advance payment of such Expenses as they are incurred
by an Indemnified Person in investigating, preparing, pursuing or defending any actions, whether or not any Indemnified Person is a party
thereto, arising out of or based upon (i) any untrue statement or alleged untrue statement of a material fact contained in (A) the Registration
Statement, Prospectus or any other transaction documents in connection with the Placement (as from time to time each may be amended and
supplemented), (B) any materials or information provided to investors by, or with the approval of, the Company in connection with the
marketing of the Placement, including any “road show” or investor presentations made to investors by the Company (whether
in person or electronically), or (C) any application or other document or written communication (collectively called “application”)
executed by the Company or based upon written information furnished by the Company in any jurisdiction in order to qualify the Securities
under the securities laws thereof or to file for an exemption from such requirement or filed with the Commission, any state securities
commission or agency, any national securities exchange; or (ii) the omission or alleged omission therefrom of a material fact required
to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading,
unless such statement or omission was made in reliance upon, and in conformity with, information provided to the Company by Aegis in writing
specifically for use in the Registration Statement, Prospectus or any other placement documents with respect which or resulting from conduct
by Aegis or another Indemnified Party, as to which Aegis shall indemnify and hold harmless the Company, its officers, directors and controlling
parties in the manner set forth in this Section 14. The Company also agrees to reimburse and advance each Indemnified Person for all Expenses
as they are incurred in connection with such Indemnified Person’s enforcement of his or its rights under this Section 14.

 

(b) Procedure.
Upon receipt by an Indemnified Person of actual notice of an action against such Indemnified Person with respect to which indemnity may
reasonably be expected to be sought under this Section 14, such Indemnified Person shall promptly notify the Company in writing; provided
that failure by any Indemnified Person so to notify the Company shall not relieve the Company from any obligation or liability which the
Company may have on account of this Section 14 or otherwise to such Indemnified Person. The Company shall, if requested by Aegis, assume
the defense of any such action (including the employment of counsel designated by Aegis and reasonably satisfactory to the Company). Any
Indemnified Person shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Person unless: (i) the Company has failed promptly to assume
the defense and employ separate counsel reasonably acceptable to Aegis for the benefit of Aegis and the other Indemnified Persons or (ii)
such Indemnified Person shall have been advised that in the opinion of counsel that there is an actual or potential conflict of interest
that prevents (or makes it imprudent for) the counsel designated by and engaged by the Company for the purpose of representing the Indemnified
Person, to represent both such Indemnified Person and any other person represented or proposed to be represented by such counsel, in which
event the Company shall pay the reasonable fees and expenses of one counsel, plus local counsel, for all Indemnified Parties, which counsel
shall, if Aegis is a defendant, be designated by Aegis. The Company shall not be liable for any settlement of any action effected without
its written consent (which shall not be unreasonably withheld). In addition, the Company shall not, without the prior written consent
of Aegis, settle, compromise or consent to the entry of any judgment in or otherwise seek to terminate any pending or threatened action
in respect of which advancement, reimbursement, indemnification or contribution may be sought hereunder (whether or not such Indemnified
Person is a party thereto) unless such settlement, compromise, consent or termination (i) includes an unconditional release of each Indemnified
Person, acceptable to such Indemnified Party, from all Liabilities arising out of such action for which indemnification or contribution
may be sought hereunder and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on
behalf of any Indemnified Person. The advancement, reimbursement, indemnification and contribution obligations of the Company required
hereby shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as every Liability
and Expense is incurred and is due and payable, and in such amounts as fully satisfy each and every Liability and Expense as it is incurred
(and in no event later than 30 days following the date of any invoice therefore).

 

    5

     

    

 

 

(c) Contribution.
In the event that a court of competent jurisdiction makes a finding, final beyond right of review, that indemnity is unavailable to an
Indemnified Person, the Company shall contribute to the Liabilities and Expenses paid or payable by such Indemnified Person in such proportion
as is appropriate to reflect (i) the relative benefits to the Company, on the one hand, and to Aegis and any other Indemnified Person,
on the other hand, of the matters contemplated by this Section 14 or (ii) if the allocation provided by the immediately preceding clause
is not permitted by applicable law, not only such relative benefits but also the relative fault of the Company, on the one hand, and Aegis
and any other Indemnified Person, on the other hand, in connection with the matters as to which such Liabilities or Expenses relate, as
well as any other relevant equitable considerations; provided that in no event shall the Company contribute less than the amount necessary
to ensure that all Indemnified Persons, in the aggregate, are not liable for any Liabilities and Expenses in excess of the amount of commissions
and non-accountable expense allowance actually received by Aegis in the Placement. The relative fault shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company on the one hand or Aegis on the other and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and Aegis agree that it
would not be just and equitable if contributions pursuant to this subsection 14(c) were determined by pro rata allocation or by any other
method of allocation which does not take account of the equitable considerations referred to above in this subsection 14(c). For purposes
of this paragraph, the relative benefits to the Company, on the one hand, and to Aegis on the other hand, of the matters contemplated
by this Section 14 shall be deemed to be in the same proportion as: (a) the total value received by the Company in the Placement, whether
or not such Placement is consummated, bears to (b) the commissions paid to Aegis under the Transaction Documents. Notwithstanding the
above, no person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to
contribution from a party who was not guilty of fraudulent misrepresentation.

 

(d) Limitation.
The Company also agrees that no Indemnified Person shall have any liability (whether direct or indirect, in contract or tort or otherwise)
to the Company for or in connection with advice or services rendered or to be rendered by any Indemnified Person pursuant to this engagement
letter, the transactions contemplated thereby or any Indemnified Person’s actions or inactions in connection with any such advice,
services or transactions, except to the extent that a court of competent jurisdiction has made a finding that Liabilities (and related
Expenses) of the Company have resulted exclusively from such Indemnified Person’s gross negligence or willful misconduct in connection
with any such advice, actions, inactions or services.

 

    6

     

    

 

 

16. Governing
Law; Venue. This engagement letter will be deemed to have been made and delivered in the State of New York, USA, and both
the binding provisions of this engagement letter and the transactions contemplated hereby will be governed as to validity,
interpretation, construction, effect and in all other respects by the internal laws of the State of New York, without regard to the
conflict of laws principles thereof. Each of Aegis and the Company: (i) agrees that any legal suit, action or proceeding arising out
of or relating to this engagement letter and/or the transactions contemplated hereby will be instituted exclusively in the courts
located in the City of New York, County of New York, State of New York (ii) waives any objection which it may have or hereafter to
the venue of any such suit, action or proceeding, and (iii) irrevocably consents to the jurisdiction of the courts located in the
City of New York, County of New York and State of New York, in any such suit, action or proceeding. Each of Aegis and the Company
further agrees to accept and acknowledge service of any and all process which may be served in any such suit, action or proceeding
in such courts and agrees that service of process upon the Company mailed by certified mail to the Company’s address will be
deemed in every respect effective service of process upon the Company, in any such suit, action or proceeding, and service of
process upon Aegis mailed by certified mail to Aegis’s address will be deemed in every respect effective service process upon
Aegis, in any such suit, action or proceeding. Notwithstanding any provision of this engagement letter to the contrary, the Company
agrees that neither Aegis nor its affiliates, and the respective officers, directors, employees, agents and representatives of
Aegis, its affiliates and each other person, if any, controlling Aegis or any of its affiliates, will have any liability (whether
direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement and transaction
described herein except for any such liability for losses, claims, damages or liabilities incurred by the Company that are finally
judicially determined to have resulted from the bad faith or gross negligence of such individuals or entities. Aegis will act under
this engagement letter as an independent contractor with duties to the Company.

 

If you are in agreement with
the foregoing, please sign and return to us one copy of this engagement letter. This engagement letter may be executed in counterparts
(including facsimile or .pdf counterparts), each of which shall be deemed an original but all of which together shall constitute one and
the same instrument.

 

[Signature Page of CYN Private Placement Letter
of Engagement Follows]

 

    7

     

    

 

 

 

	 	Very truly
    yours,
	 	 	 
	 	Aegis Capital
    Corp. 
	 	 	 
	 	By:	/s/
    Robert Eide
	 	Name:  	Robert Eide
	 	Title:	Chief Executive Officer

  

AGREED AND ACCEPTED:

 

The foregoing accurately sets forth our understanding
and agreement with respect to the matters set forth herein.

 

	Cyngn Inc.	 
	 	 	 
	By:	/s/ Lior Tal	 
	Name:	Lior Tal	 
	Title:	Chief Executive Officer	 

 

[Signature Page of CYN Private Placement Letter
of Engagement]

 

 

8

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