Document:

EX-10.7

 Exhibit 10.7 

JUMIA TECHNOLOGIES AG 

VIRTUAL RESTRICTED STOCK UNIT PROGRAM 2020 

JUNE 9, 2020 

– TERMS AND CONDITIONS – 

 TABLE OF CONTENTS 

 

							
	TABLE OF CONTENTS	  	2	 
		
	RECITALS	  	3	 
			
	 § 1
	 	 ELIGIBILITY
	  	 	4	 
			
	 § 2
	 	 PLAN VOLUME AND GRANT
OF RESTRICTED STOCK UNITS
	  	 	4	 
			
	 § 3
	 	 VESTING
	  	 	5	 
			
	 § 4
	 	 PAYMENT BY COMPANY
	  	 	5	 
			
	 § 5
	 	 EXTRAORDINARY EVENTS OR
DEVELOPMENTS
	  	 	6	 
			
	 § 6
	 	 CONSEQUENCES OF A TERMINATION OF
OFFICE OR EMPLOYMENT RELATIONSHIP
	  	 	6	 
			
	 § 7
	 	 TRANSFERABILITY AND HEDGING
	  	 	7	 
			
	 § 8
	 	 ADJUSTMENT IN CASE OF
SPECIFIC CAPITAL AND OTHER STRUCTURAL MEASURES
	  	 	7	 
			
	 § 9
	 	 LIMITATION OF LIABILITY
	  	 	8	 
			
	 § 10
	 	 TAXES, SOCIAL SECURITY AND
COSTS
	  	 	8	 
			
	 § 11
	 	 INSIDER TRADING, BLACK-OUT PERIODS AND SECURITIES LAW REQUIREMENTS
	  	 	9	 
			
	 § 12
	 	 FORM REQUIREMENTS, NOTICES
	  	 	10	 
			
	 § 13
	 	 DATA PROTECTION
	  	 	10	 
			
	 § 14
	 	 GOVERNING LAW AND
JURISDICTION
	  	 	10	 
			
	 § 15
	 	 FINAL PROVISIONS
	  	 	11	 

  
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 RECITALS 

 

	(A)	 The participation of the management and key employees in the economic risks and opportunities of the
relevant business operation is an important component of an internationally competitive remuneration system in order to strengthen the commitment to Jumia, to attract and retain competent and dedicated individuals whose efforts will result in the
growth and profitability of Jumia and to align their interests with the interests of the shareholders in order to increase the value of Jumia. 

  

	(B)	 For this purpose, Jumia Technologies AG (the “Company”) intends to implement a
virtual restricted stock unit program 2020 (the “VRSUP 2020”). Under the VRSUP 2020, virtual restricted shares in the Company (each a “Restricted Stock Unit” and together the “Restricted
Stock Units”) shall be granted to members of the management board of the Company (the “Management Board” and, the members of the Management Board, each an “MB”) and key employees of the
Company as well as to members of the management and key employees of companies affiliated with the Company within the meaning of §§ 15 et seq. of the German Stock Corporation Act (Aktiengesetz, the “AktG”)
(each an “Affiliated Company” and together the “Affiliated Companies”). Upon vesting (as described in § 3 below), and subject to § 4 below, each Restricted Stock Unit shall grant the right to
receive cash payments in the amount of the relevant share price of the shares in the Company as described below. Thus, the beneficiaries obtain a right to receive a cash payment, the total amount of which depends on the development of the share
price of the shares of the Company. However, a settlement in shares is possible at the discretion of the Company according to the conditions stated in§ 2.7. 

 

	(C)	 With resolution dated 09 June 2020 (the “VRSUP Resolution”), the Company’s
general meeting (Hauptversammlung) authorized the Management Board, with the consent of the supervisory board of the Company (the “Supervisory Board”), to issue up to 1,850,000 new shares, each with a notional value of
EUR 1.00 in the share capital of the Company either by way of an amendment of the already existing Authorized Capital or through the creation of an additional authorized capital, in order to provide the Company with an alternative option to settle
employee claims under this VRSUP 2020 with shares in the Company instead of a cash payment. The Management Board and the Supervisory Board resolved to grant in total 1,850,000 Restricted Stock Units to the beneficiaries in one or more tranches. The
Management Board with respect to selected employees of the Company and, with respect to members of the management and selected employees of the Affiliated Companies on behalf of the respective Affiliated Company, and, with respect to members of the
Management Board the Supervisory Board, will determine the further details of the VRSUP 2020, in particular the number of Restricted Stock Units granted to a Participant (as defined in § 1.2 below) and the relevant other terms and
conditions in accordance with the Rules (as defined in Recital (D) below) set forth in this VRSUP 2020. 

  

	(D)	 These terms and conditions establish the rules (the “Rules”) pursuant to which the
Restricted Stock Units under the VRSUP 2020 may be granted and paid. 

  
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 § 1 

Eligibility 
  

	1.1	 Under the VRSUP 2020, Restricted Stock Units may be granted only to the following groups of beneficiaries:

  

	 	1.1.1	 members of the Management Board (“Group 1”); 

 

	 	1.1.2	 selected employees of the Company (“Group 2”); 

 

	 	1.1.3	 members of the management of Affiliated Companies (“Group 3”); and

  

	 	1.1.4	 selected employees of Affiliated Companies (“Group 4”, and together with Group 1,
Group 2 and Group 3, the “Groups”). 

 Each beneficiary, who is not an MB or a
member of the management of an Affiliated Company, must be considered by the Management Board – in its sole discretion– a key expert. 
  

	1.2	 The Management Board, and with respect to MBs the Supervisory Board, will – in its sole discretion
– designate the individuals to whom Restricted Stock Units under the VRSUP 2020 will be granted (the “Participants” and each a “Participant”) as well as the amount of Restricted Stock Units to be
granted to the respective Participant. 

  

	1.3	 When granting Restricted Stock Units to the MBs, the Supervisory Board will take into account the relation
between the value of existing and foreseeable grants under stock option programs of the Company compared to the value of the Restricted Stock Units to be granted to the MBs. 

§ 2 
 Plan Volume
and Grant of Restricted Stock Units 
  

	2.1	 The aggregate number of Restricted Stock Units which may be granted under the VRSUP 2020 amounts to
1,850,000, subject to adjustment and substitution as set forth in § 8. Any Restricted Stock Unit that forfeits or is cancelled under this VRSUP 2020 may be reallocated or re-granted to any Participant.

 Any respective grant may be made to a Participant only on the basis of his/her membership in one of the
Groups set forth under § 1.1.1 to § 1.1.4. Participants, who belong to more than one Top Management Level at the time of the relevant grant, can only be granted Restricted Stock Units for one Top Management Level at such time.
The final number of Restricted Stock Units to be acquired by a Participant depends on the Vesting of such Restricted Stock Units (as defined in, and subject to, § 3 below). 

 

	2.2	 The Restricted Stock Units will be granted to each Participant by separate grant agreements
(Zuteilungsvereinbarungen), in particular stating the number of offered Restricted Stock Units. The Restricted Stock Units shall be granted to the Participant with economic effect as from the date of the grant of the Restricted Stock Units.
Any grant is subject to a continuing and unterminated (ungekündigt) service or employment relationship between the relevant Participant and the Company or an Affiliated Company at the relevant Grant Date (as defined under
§ 2.5 below). 

  

	2.3	 The number of offered Restricted Stock Units granted to a Participant shall typically be determined by
dividing the individual Grant Value by the Average Share Price. “Grant Value” means a Euro denominated amount granted to the Participant to be used for purposes of participating in the VRSUP 2020. “Average Share
Price” means an amount equal to the average of the closing price (Schlusskurs) of the Shares (as represented by ADSs) of the Company on the New York Stock Exchange (“NYSE”) (or a comparable successor
system) (the “Relevant Closing Price”) on the sixty (60) consecutive Trading Days prior to the Grant Date (as defined under § 2.5 below). “Trading Day” means a day other than a Saturday or
Sunday or public holiday on which NYSE is open for trading. For the avoidance of doubt, there shall be no fractional Restricted Stock Units. In case the division of the Grant Value (as allocated

  
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to the VRSUP 2020 on the basis of the Participant’s election) by the Average Share Price results in fractional Restricted Stock Units, the number of offered Restricted Stock Units shall, in
any case, be rounded down to the next full number of Restricted Stock Units without compensation. 

  

	2.4	 Restricted Stock Units may be granted to the Participants in one or more tranches 

 

	 	a)	 until 31 December 2023, and 

 

	 	b)	 within three (3) weeks after the publication by the Company of a quarterly financial report, half year
financial report or press release announcing the annual financial results but in no event may a grant be made during a Black-Out Period (each such three-week period a “Grant Period”).

  

	2.5	 Participants who for the first time enter into a service or employment agreement with the Company or an
Affiliated Company can, at the time of signing of the service or employment agreement, be promised a grant of Restricted Stock Units during one of the aforementioned Grant Periods at a later point in time. The date on which a grant becomes effective
shall be the date of the signing of the relevant grant agreement or a later effective date specified therein (the “Grant Date”). 

§ 3 
 Vesting

  

	3.1	 Subject to § 3.2 and § 6 of these Rules, Restricted Stock Units granted to a Participant will vest
at the expiration of one year following the Grant Date or such longer annual period as specified in the grant agreement. 

  

	3.2	 Any uninterrupted period during which the employment relationship of the respective Participant with the
Company has been suspended (ruhendes Arbeitsverhältnis) without entitlement to continued remuneration (ohne Entgeltfortzahlung) (the “Suspension”) due to e.g. sickness, parental leave, nursing care
(Pflegezeit), military service, sabbatical, unpaid leave of absence or comparable grounds shall suspend the vesting of Restricted Stock Units as described in § 3.1 above. After the end of a Suspension and subject to § 6 below,
any unvested Restricted Stock Units will continue to vest in accordance with a later vesting schedule adjusted to reflect the period of the Suspension. 

§ 4 
 Payment by
Company 
  

	4.1	 Restricted Stock Units granted under the VRSUP 2020 entitle the Participant holding such Restricted Stock
Units to the receipt of the RSU Value per Share multiplied by the number of Restricted Stock Units which have vested in accordance with § 3 above (the “RSU Value”). Subject to § 6 and § 11 below, the RSU Value
for Restricted Stock Units shall be paid in cash to the Participant by the Company, and with respect to Group 3 and Group 4 on behalf of the Affiliated Company, as soon as reasonably practicable following the expiration of a period of twelve Trading
Days after the publication by the Company of its first half year report or annual financial statements after the vesting date. “RSU Value per Share” means a cash payment per vested Restricted Stock Unit, in an amount equal to
the average of the Relevant Closing Price on the first ten Trading Days after the publication by the Company of the later of its last half year report or its last annual financial statements. 

 

	4.2	 Any RSU Value may be capped at a maximum amount (Höchstbetrag) agreed with the Participant in
the grant agreement, the employment agreement or the service agreement. 

  

	4.3	 The Company shall be entitled, at its sole discretion, with respect to Group 2, and with respect to Group 4
on behalf of the Affiliated Company, and subject to any Insider Trading Rules (as defined in § 11 below), to deliver (in full or in part) Shares or ADS instead of any RSU Value to the Participant, provided that the general shareholders‘
meeting of the Company has lawfully resolved on the acquisition and divesture of treasury shares (eigene Aktien) or an authorized capital for such purposes or the Company 

  
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may lawfully acquire ADS. In such case and to the extent necessary, the provisions of this VRSUP 2020 may be adjusted to achieve a result which is economically equivalent to the relevant
Restricted Stock Units or RSU Value and which is in compliance with applicable laws. For the determination of the number of Shares or ADS to be delivered to the Participant, the Relevant Closing Price on the day of the decision by the Company to
deliver Shares or ADS shall apply. The Participant is obliged to cooperate with the Company and take any actions necessary to effect the delivery of such Shares or ADS, e.g. in case new Shares are issued; the Participant may be required to
contribute his payment claim under this VRSUP 2020 to allow for a “net share settlement”. Further, resales of the Shares or ADS by a Participant may be limited to sales effected on a stock exchange designated by the Company.

  

	4.4	 Any statutory charges, such as payroll taxes, employee social security contributions or similar or other
taxes and duties (if any), shall be borne by the Participant. To the extent due, the Company will withhold such charges from the RSU Value and pay them to the competent authorities. In case the Company is authorized to and chooses to deliver Shares
or ADS instead of any RSU Value, the Company will also withhold and pay any statutory charges and determine the number of Shares or ADS to be delivered after deducting those charges. 

§ 5 
 Extraordinary
Events or Developments 
  

	5.1	 “Extraordinary Events or Developments” means – subject to mandatory law –
situations where the potential gain realized by the Participant upon the payment of the Restricted Stock Units (i) is caused by unusual external events and developments and (ii) cannot be reasonably justified under any circumstances by the
development or business perspective of the Company, also taking into account international remuneration and incentive standards. For the avoidance of doubt, the payment of Restricted Stock Units, as such, that results in an economic benefit for the
Participant, does not constitute an Extraordinary Event or Development. 

  

	5.2	 In case of Extraordinary Events or Developments, the Management Board, and with respect to MBs the
Supervisory Board, is entitled to adjust in its discretion (pflichtgemäßes Ermessen) the payout, in order to adequately limit (begrenzen) or eliminate, as the case may be, the effects of such
Extraordinary Events or Developments. For the avoidance of doubt, such adjustment shall not result in a reduction or withdrawal of the Participant’s economic benefit achieved under the VRSUP 2020 prior to the occurrence of such Extraordinary
Events or Developments. In any such case, § 87 para. 1 AktG must be observed. 

 § 6 

Consequences of a Termination of Office or Employment Relationship 

In the event the Participant’s office as member of the Management Board or the Participant’s service or employment relationship with
the Company or an Affiliated Company (as the case may be) ends 
  

	6.1	 due to: 

  

	 	6.1.1	 (i) the Participant’s voluntary resignation from office (Amtsniederlegung) prior to the regular
end of his/her term of office or the termination of the Participant’s service or employment relationship with the Company or an Affiliated Company and (ii) the Participant taking up employment with or assuming an active management position
or a remunerated consultant role with a direct competitor within twelve months after the effective date of the resignation or termination; or 

  

	 	6.1.2	 in case of an MB, a revocation from office (Widerruf der Bestellung) by the Company in circumstances
where there are grounds justifying a termination of the service relationship for good cause within the meaning of § 626 of the German Civil Code (Bürgerliches Gesetzbuch) (“BGB”) irrespective of
the preclusion period pursuant to § 626 para. 2 BGB; or 

  
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	 	6.1.3	 in case of any Participant not being an MB, the termination of the service or employment relationship with
the Company or an Affiliated Company, as the case may be, where there are grounds justifying a termination of the service or employment relationship for good cause within the meaning of § 626 BGB (or the equivalent provision of applicable
foreign law) irrespective of the preclusion period pursuant to § 626 para. 2 BGB (or the equivalent provision of applicable foreign law); 

(such Participant a “Bad Leaver”) all vested and unvested Restricted Stock Units granted to the Bad
Leaver (whether held by him/her or any third party) will be forfeited without entitlement to compensation; or 
  

	6.2	 due to any reason not qualifying the relevant Participant as a Bad Leaver (such Participant a
“Good Leaver”), such Good Leaver will retain all Restricted Stock Units already vested pursuant to § 3 and not yet paid on the earlier of (i) the date of his/her effective date of termination of office (in relation
to MBs or members of the management of Affiliated Companies), if applicable, or (ii) the date of his/her declaration of termination of employment (in relation to selected employees) (in either case the “Termination
Date”). The terms and conditions set forth in these Rules will continue to apply unchanged to the Restricted Stock Units retained pursuant to this § 6.2. All Restricted Stock Units which are not retained pursuant to this
§ 6.2 are forfeited without entitlement to compensation. This § 6.2 shall not apply, and the other terms and conditions set forth in these Rules will continue to apply unchanged, in case the Participant, within three months of
the Termination Date, enters into a new service or employment relationship with the Company or an Affiliated Company or is appointed as member of the Management Board. 

 

	6.3	 For the avoidance of doubt: any cash settlement payments made or Share or ADS transfers executed relating to
the fulfillment of Restricted Stock Units prior to the Termination Date shall remain unaffected by the forfeiture of Restricted Stock Units pursuant to § 6.1 or § 6.2 last sentence (no “claw-back”). 

§ 7 

Transferability and Hedging 

Except for the transfer (i) by will or applicable laws of decent upon the death of the relevant Participant or (ii) with the prior
written consent by the Company, neither the Restricted Stock Units nor the rights of any Participant under any Restricted Stock Unit or under the VRSUP 2020 are assignable or otherwise transferable. A Participant shall not hedge any interest, risk
or position in any Restricted Share Unit. 
 § 8 

Adjustment in Case of Specific Capital and Other Structural Measures 

 

	8.1	 “Adjustment Event” means any capital measures
(Kapitalmaßnahmen) and/or other structural measures (Strukturmaßnahmen) carried out by the Company, including capital increase, capital reduction, share split, reverse share split, merger, split-up, split-off, spin-off, issuance of convertible bonds or option bonds. 

 

	8.2	 In the event of: 

  

	 	8.2.1	 a capital increase from Company funds by the issuance of new shares (Kapitalerhöhung
aus Gesellschaftsmitteln); 

  

	 	8.2.2	 a reduction in the number of shares by merging Shares without capital reduction (reverse share split) or an
increase in the number of Shares without capital increase (share split); 

  

	 	8.2.3	 a capital reduction (Kapitalherabsetzung) with a change in the total number of Shares issued by the
Company; or 

  

	 	8.2.4	 any other Adjustment Event having an effect similar to any of the foregoing; 

  
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 the Management Board, and with respect to MBs the Supervisory Board, shall
establish financial equality for the Participant in order to prevent that such Adjustment Event results in a dilution or enlargement of the benefits or potential benefits intended to be made available under the outstanding Restricted Stock Units. In
such an Adjustment Event the financial equality shall preferably be established by adjusting the number of Restricted Stock Units. 
  

	8.3	 For the avoidance of doubt, no adjustment pursuant to § 8.2 shall occur in the event of:

  

	 	8.3.1	 a capital increase from Company funds without the issue of new shares (Kapitalerhöhung
aus Gesellschaftsmitteln ohne Ausgabe neuer Aktien); or 

  

	 	8.3.2	 a capital reduction without a change in the total number of Shares issued by the Company.

  

	8.4	 If an adjustment occurs in accordance with this § 8, fractions of Restricted Stock Units will not be
granted nor will they be compensated by a payment in cash. 

  

	8.5	 For the avoidance of doubt, § 9 para. 1 AktG applies mutatis mutandis to Restricted Stock Units
which have been adjusted pursuant to this § 8. 

 § 9 

Limitation of Liability 
  

	9.1	 Neither the Company nor any Affiliated Company (or any of its respective directors, officers, employees,
agents or advisors): 

  

	 	9.1.1	 assumes any responsibility or liability for the development of the value or market price of the Shares;

  

	 	9.1.2	 warrants, assures or guarantees any increase in value of the Shares; or 

 

	 	9.1.3	 warrants, assures or guarantees a profit of the Participant from the VRSUP 2020 or any Restricted Stock
Units granted thereunder. 

  

	9.2	 Each Participant declares with his/her participation in the VRSUP 2020 that the participation is voluntary.
Each Participant is aware of the fact that he/she alone bears the risk of a decrease in or total loss of value of his/her investments. Each Participant accepts the offer to participate in the VRSUP 2020 at his/her own risk and assumes any liability
relating thereto. 

  

	9.3	 Each Participant is responsible for obtaining legal, tax and any other necessary advice before participating
in the VRSUP 2020 and for evaluating the tax effects connected with the VRSUP 2020. Each Participant accepts and declares that he or she has not been advised by or on behalf of the Company or its Representatives with respect to his or her
participation in the VRSUP 2020 (in particular, regarding legal and tax issues of such participation). 

 § 10

 Taxes, Social Security and Costs 
  

	10.1	 All taxes (including payroll taxes), social security contributions, further duties and costs accrued by the
Participant in connection with his or her participation in the VRSUP 2019 shall be borne by the Participant. Each Participant is obliged to pay taxes relating to the Restricted Stock Units paid under the VRSUP 2020, or relating to a transfer of such
options by the Participant to a third party, to the competent tax authorities. Each Participant shall fully indemnify the Company or Affiliated Company in respect of all such liabilities and obligations against tax authorities.

  

	10.2	 The employer of the Participant is entitled, if required by statutory law, to withhold payroll tax or any
other taxes or duties or social security contributions to be paid by (or on behalf and account of) the Participant. This applies even after termination of the employment of the Participant with the Company

  
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or Affiliated Company. The Company or Affiliated Company is entitled to demand the full cooperation of the Participant even after his/her leave with respect to the withholding of taxes, social
security contributions, other duties and costs in connection with the VRSUP 2020. The Participant undertakes to fully co-operate with the Company or Affiliated Company. 

 

	10.3	 Withholdings mentioned above do not release the Participant from his/her responsibility and obligation to
pay all taxes, social contributions, further duties and costs being due and accruing in connection with his/her participation in the VRSUP 2020 or the grant or transfer of any Restricted Stock Units. 

§ 11 
 Insider
Trading, Black-out Periods and Securities Law Requirements 
 Any transaction in the Restricted
Stock Units (each a “Transaction”) must be conducted in compliance with (i) all applicable insider trading laws and regulations, and (ii) all provisions of any insider trading rules established by the Company,
including the Company’s Insider Trading Policy ((i) and (ii) together the “Insider Trading Rules”). Each Participant is personally responsible for informing himself about, and acting in full compliance with, all
applicable Insider Trading Rules. Any individual non-compliance with applicable Insider Trading Rules may lead to the imposition of civil and criminal penalties (as the case may be). 

In order to minimize the potential for prohibited insider trading, the Management Board, and with respect to MBs the Supervisory Board, may
establish in its sole discretion periods from time to time during which the Participant may not engage in transactions involving the Restricted Stock Units and/or the Shares and/or the ADS (each such period a “Black-Out Period”). 
 The obligation of the Company to issue any securities and to settle
any awards under the VRSUP 2020 shall be subject to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any grant to the contrary, the Company
shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any securities unless such securities have been properly registered pursuant to the U.S. Securities Act or unless the Company is
satisfied that such securities may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to
register for sale under the U.S. Securities Act any of the securities to be offered or sold under the VRSUP 2020. The Company may restrict the transfer of securities issued pursuant to the VRSUP 2020 in such a manner as it deems advisable to ensure
the availability, or facilitate compliance with, of any exemption from the registration requirements the U.S. Securities Act or any other applicable laws. 

The Company or the Third Party Service Provider, as the case may be, may cancel a grant under the VRSUP 2020 or any portion thereof if it
determines, in its sole discretion, that legal or contractual restrictions and/or blockage and/or other market considerations would make the Company’s acquisition of securities from the public markets, the Company’s issuance of securities
to the Participant, the Participant’s acquisition of securities from the Company and/or the Participant’s sale of securities to the public markets, illegal, impracticable or inadvisable. If the Company or the Third Party Service Provider,
as the case may be, determines to cancel all or any portion of a grant in accordance with the foregoing, the Company shall pay to the Participant an amount equal to the excess of (A) the aggregate fair market value of the securities subject to
such grant or portion thereof canceled (determined as of the applicable exercise date, or the date that the securities would have been vested or delivered, as applicable), over (B) the aggregate exercise price or base amount or any amount
payable as a condition of delivery of securities. Such amount shall be delivered to the Participant as soon as practicable following the cancellation of such grant or portion thereof. 

Notwithstanding any provision of the VRSUP 2020 to the contrary, in no event shall a Participant be permitted to exercise a Stock Option in a
manner that the Company or the Third Party Service Provider, as the case may be, determines would violate the United States Sarbanes-Oxley Act of 2002, or any other applicable law or the applicable rules and regulations of the U.S. Securities
Exchange Commission or the applicable rules and regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or traded. 

  
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 § 12 

Form Requirements, Notices 
  

	12.1	 Any legal statements and other notices in connection with the VRSUP 2020 (collectively the
“Notices”) shall be made in text form (Textform) pursuant to § 126b BGB unless any other specific form is required by mandatory law or these Rules. 

 

	12.2	 Any Notice to be delivered to the Company shall be addressed as follows: 

 

	 	12.2.1	 in case of MBs: by mail to Jumia Technologies AG, Attn. Chairperson of the Supervisory Board (currently
Jonathan David Klein), Skalitzer Straße 104, 10997 Berlin, Germany; and by email (attached as pdf-copy) to jonathan.klein@gettyimages.com; and 

 

	 	12.2.2	 in any other case: by mail to Jumia Technologies AG, Attn. Co-CEO
Sacha Poignonnec, Skalitzer Straße 104, 10997 Berlin, Germany; and by email (attached as pdf-copy) to sacha.poignonnec@jumia.com. 

The Company shall communicate changes in the address set forth in the previous sentence as soon as possible to the
Participants. In the absence of such communication, the address stated above shall remain in place. 
  

	12.3	 Any Notice to be given to the Participant may be served by being handed to him/her personally or by being
sent to him or her at his or her home address shown in the records of the Company. The Participant shall communicate changes in his or her home address as soon as possible to the Company. 

§ 13 
 Data
Protection 
  

	13.1	 By participating in the VRSUP 2020 each Participant expressly consents to the collection, storage, usage,
transfer and processing of personal information provided by the Participant to the Company or a third party employed or contracted by the Company to administer or assist with the administration or implementation of the VRSUP 2020 (the
“Third Party Service Provider”), solely for all purposes relating to the implementation, operation and administration of the VRSUP 2020. These include, but are not limited to: 

 

	 	13.1.1	 administering and maintaining Participants’ records; 

 

	 	13.1.2	 providing information about the Participant to a Third Party Service Provider; and 

 

	 	13.1.3	 transferring information about the Participant to a Company’s or a Third Party Service Provider’s
premises in a country or territory that may not provide the same statutory protection for the information as the Participant’s home country to the extent such transfer is required to implement, operate or administer the VRSUP 2020.

  

	13.2	 The Participant is entitled to a copy of the personal information held about him/her and information about
the purpose of the collection, storage, usage, transfer and processing of the personal information. The Participant has the right to have the personal information corrected in case of any inaccurateness. Any rights of the Participant pursuant to the
General Data Protection Regulation (Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016) remain unaffected. 

§ 14 
 Governing Law
and Jurisdiction 
  

	14.1	 Subject to § 15.1, the VRSUP 2020, any Restricted Stock Units granted thereunder and these Rules shall
be exclusively governed by, and be construed in accordance with, the laws of the Federal Republic of Germany, without regard to principles of conflicts of laws. 

  
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	14.2	 Any dispute, controversy or claim arising from or in connection with the VRSUP 2020, any Restricted Stock
Units granted thereunder or these Rules or their validity shall be decided upon to the extent legally permissible by the competent courts in Berlin, Germany. 

§ 15 
 Final
Provisions 
  

	15.1	 The grant of any Restricted Stock Units and any payment to a Participant are subject to local law review,
especially labor law and tax review, in the jurisdiction applicable to such Participant, following which, if necessary, the provisions of this VRSUP 2020 may be adjusted for such Participant to achieve a result which is economically equivalent to
the relevant Restricted Stock Units or payment. The provisions of this VRSUP 2020 may also be adjusted if necessary or if advantageous for the Company, provided that the result for the Participants is economically equivalent to the relevant
Restricted Stock Units or payment and in compliance with applicable laws. 

  

	15.2	 For the avoidance of doubt, the Restricted Stock Units do not constitute a participation in the Company or
any Affiliated Company and in particular do not grant any information, participation, voting, profit sharing or other shareholders’ rights. 

  

	15.3	 The Restricted Stock Units are granted on a voluntary basis. Even a recurrent grant of Restricted Stock
Units to individual Participants does not constitute any claim for a further allowance of Restricted Stock Units (keine betriebliche Übung). 

 

	15.4	 Unless otherwise explicitly provided for in these Rules, the Participant shall not be entitled to assign any
rights or claims under the VRSUP 2020 and these Rules without the written consent of the Company. 

  

	15.5	 In these Rules, the headings are inserted for convenience only and shall not affect the interpretation of
these Rules; where a German term has been inserted in quotation marks and/or italics it alone (and not the English term to which it relates) shall be authoritative for the purpose of the interpretation of the relevant English term in these Rules.
The terms “including” and “in particular” shall always mean “including, without limitation” and “in particular, without limitation”, respectively. Any reference made in these Rules to any clauses without
further indication of a law, an agreement or another document shall mean clauses of these Rules. 

  

	15.6	 In the event that one or more provisions of these Rules shall, or shall be deemed to, be invalid or
unenforceable, the validity and enforceability of the other provisions of these Rules shall not be affected thereby. In such case, the Company, the Affiliated Company and the Participant agree to recognize and give effect to such valid and
enforceable provision or provisions, which correspond as closely as possible with the commercial intent of the parties. The same shall apply in the event that these Rules contain any unintended gaps (unbeabsichtigte
Lücken). 

 Berlin, 9 June 2020

 

	Jumia	 Technologies AG on behalf of Jumia 

The Supervisory Board             The Management Board 

  
 Page 11/11Exhibit

Exhibit 4.1

Execution Copy

REGISTRATION RIGHTS AGREEMENT

REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of July 21, 2020, by and between NOVAN, INC., a Delaware corporation (the “Company”), and ASPIRE CAPITAL FUND, LLC, an Illinois limited liability company (together with its permitted assigns, the “Buyer”).  Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Common Stock 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 Buyer, and the Buyer has agreed to purchase,  up to Thirty Million Dollars ($30,000,000) of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), pursuant to Section 1 of the Purchase Agreement (such shares, the “Purchase Shares”), and (ii) the Company has agreed to issue to the Buyer such number of shares of Common Stock as is required pursuant to Section 4(e) of the Purchase Agreement (the “Commitment Shares”); and

B.    To induce the Buyer 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 “1933 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 Buyer hereby agree as follows:

1.    DEFINITIONS.

As used in this Agreement, the following terms shall have the following meanings:

a.    “Person” means any person or entity including any corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a governmental or political subdivision thereof or a governmental agency.

b.    “Prospectus” means the base prospectus, including all documents incorporated therein by reference, included in any Registration Statement (as hereinafter defined), as it may be supplemented by a prospectus or the Prospectus Supplement (as hereinafter defined), in the form in which such prospectus and/or Prospectus Supplement have most recently been filed by the Company with the U.S. Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b) under the 1933 Act, together with any then issued “issuer free writing prospectus(es),” as defined in Rule 433 of the 1933 Act, relating to the Registrable Securities.

c.    “Register,” “registered,” and “registration” refer to a registration effected by preparing and filing one or more registration statements of the Company under the 1933 Act and pursuant to Rule 415 under the 1933 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.
    

d.    “Registrable Securities” means the Purchase Shares that may from time to time be issued or issuable to the Buyer upon purchases of the Available Amount under the Purchase Agreement (without regard to any limitation or restriction on purchases) (including the Initial Purchase Shares), the Commitment Shares issued or issuable to the Buyer, and any shares of capital 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.

e.    “Registration Statement” means the Shelf Registration Statement and any other registration statement of the Company, as amended when it 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 pursuant to Rule 424(b) under the 1933 Act or deemed to be a part of such registration statement pursuant to Rule 430B or 462(b) of the 1933 Act, covering only the sale of the Registrable Securities.

f.    “Shelf Registration Statement” means the Company’s existing registration statement on Form S-3 (File No. 333-236583).

2.    REGISTRATION.

a.    Mandatory Registration.  The Company shall within two (2) Business Days from the Commencement Date file with the SEC a prospectus supplement to the Shelf Registration Statement specifically relating to the Registrable Securities (the “Prospectus Supplement”).  The Buyer and its counsel shall have had a reasonable opportunity to review and comment upon such Prospectus Supplement prior to its filing with the SEC.  The Buyer shall furnish all information reasonably requested by the Company for inclusion therein.  The Company shall use its reasonable best efforts to keep the Shelf Registration Statement effective pursuant to Rule 415 promulgated under the 1933 Act and available for sales of all of the Registrable Securities at all times until the earlier of (i) the Company no longer qualifies to make sales under the Shelf Registration Statement (which shall be understood to include the inability of the Company to immediately register sales of Registrable Securities to the Buyer under the Shelf Registration Statement or any New Registration Statement (as defined below) pursuant to General Instruction I.B.6 of Form S-3), (ii) the date on which the Company shall have sold all the Registrable Securities and no Available Amount remains under the Purchase Agreement, or (iii) the date on which the Purchase Agreement is terminated (the “Registration Period”).  The Shelf 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 required to be stated therein, or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.  

b.    Rule 424 Prospectus.  The Company shall, to the extent required by applicable securities regulations, from time to time file with the SEC, pursuant to Rule 424 promulgated under the 1933 Act, a prospectus, including any amendments or prospectus supplements thereto, to be used in connection with sales of the Registrable Securities under the Registration Statement.  The Buyer and its counsel shall have two (2) Business Days to review and comment upon such prospectus prior to its filing with the SEC.  The Buyer shall use its reasonable best efforts to comment upon such prospectus within two (2) Business Days from the date the Buyer receives the final version of such prospectus. 

c.    Sufficient Number of Shares Registered.  In the event the number of shares available under the Shelf Registration Statement 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 (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.  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.    

3.    RELATED OBLIGATIONS.

With respect to the Registration Statement and whenever any Registrable Securities are to be registered pursuant to Sections 2(a) and (c), 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.    The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any Registration Statement and any New Registration Statement and any Prospectus used in connection with such Registration Statement, as may be necessary to keep the Registration Statement or any New Registration Statement effective at all times during the Registration Period, subject to Permitted Delays and Section 3(e) hereof and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the Company covered by the Registration Statement or any New Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement.  Should the Company file a post-effective amendment to the Registration Statement or a New Registration Statement, the Company will use its reasonable best efforts to have such filing declared effective by the SEC within thirty (30) consecutive Business Days following the date of filing, which such period shall be extended for an additional thirty (30) Business Days if the Company receives a comment letter from the SEC in connection therewith.  If (i) there is material non-public information regarding the Company which the Company’s Board of Directors reasonably determines not to be in the Company’s best interest to disclose and which the Company is not otherwise required to disclose or (ii) there is a significant business opportunity (including, but not limited to, the acquisition or disposition of assets (other than in the ordinary course of business) or any merger, consolidation, tender offer or other similar transaction) available to the Company which the Company’s Board of Directors reasonably determines not to be in the Company’s best interest to disclose and which the Company would be required to disclose under a Registration Statement or a New Registration Statement, then the Company may postpone or suspend filing or effectiveness of such Registration Statement or New Registration Statement or use of the prospectus under the Registration Statement or New Registration Statement for a period not to exceed thirty (30) consecutive days, provided that the Company may not postpone or suspend its obligation under this Section 3(a) for more than sixty (60) days in the aggregate during any twelve (12) month period (each, a “Permitted Delay”).

b.    The Company shall submit to the Buyer for review and comment any disclosure in the Registration Statement, and all amendments and supplements thereto (other than prospectus supplements that consist only of a copy of a filed Form 10-K, Form 10-Q or Current Report on Form 8-K or any amendment as a result of the Company’s filing of a document that is incorporated by reference into the Registration Statement), containing information provided by the Buyer for inclusion in such document and any descriptions or disclosure regarding the Buyer, the Purchase Agreement, including the transaction contemplated thereby, or this Agreement at least two (2) Business Days prior to their filing with the SEC, and not file any document in a form to which Buyer reasonably and timely objects, unless required by applicable securities regulations.  Upon request of the Buyer, the Company shall provide to the Buyer all disclosure in the Registration Statement and all amendments and supplements thereto (other than prospectus 

supplements that consist only of a copy of a filed Form 10‐K, Form 10-Q or Current Report on Form 8-K or any amendment as a result of the Company’s filing of a document that is incorporated by reference into a Registration Statement) at least two (2) Business Days prior to their filing with the SEC, and not file any document in a form to which Buyer reasonably and timely objects, unless required by applicable securities regulations.  The Buyer shall use its reasonable best efforts to comment upon the Registration Statement or any New Registration Statement and any amendments or supplements thereto within two (2) Business Days from the date the Buyer receives the final version thereof.  The Company shall furnish to the Buyer, without charge, any correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to the Registration Statement or any New Registration Statement.

c.    Upon request of the Buyer, the Company shall furnish to the Buyer, (i) promptly after the same is prepared and filed with the SEC, at least one copy of the Registration Statement and any amendment(s) thereto, including all financial statements and schedules, all documents incorporated therein by reference and all exhibits, (ii) upon the effectiveness of any amendment(s) to a Registration Statement, a copy of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as the Buyer may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus, as the Buyer may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by the Buyer.

d.    The Company shall use reasonable best efforts to (i) register and qualify, unless an exemption from registration and qualification is available, the Registrable Securities covered by a Registration Statement under such other securities or “blue sky” laws of such jurisdictions in the United States as the Buyer reasonably requests, (ii) subject to Permitted Delays, prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction.  The Company shall promptly notify the Buyer who holds Registrable Securities 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.

e.    Subject to Permitted Delays, as promptly as reasonably practicable after becoming aware of such event or facts, the Company shall notify the Buyer in writing if the Company has determined that the Prospectus included in any Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and as promptly as reasonably practical (taking into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of premature disclosure of such event or facts) prepare a prospectus supplement or amendment to such Registration Statement to correct such untrue statement or omission, and, upon the Buyer’s request, deliver a copy of such prospectus supplement or amendment to the Buyer. In providing this notice to the Buyer, unless the Buyer consents to enter into a non-disclosure agreement with the Company, the Company shall not include any other information about the facts underlying the Company’s determination and shall not in any way communicate any material nonpublic information about the Company or the Common Stock to the Buyer, and the Company shall be permitted to remove any such 

information from a draft prospectus supplement or amendment notwithstanding the Company’s obligation to provide such documents to the Buyer in advance of filing with the SEC.  The Company shall also promptly notify the Buyer in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered to the Buyer by facsimile or e-mail on the same day of such effectiveness), (ii) of any request by the SEC for amendments or supplements to any Registration Statement or related prospectus or related information, and (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.  In no event shall the delivery of a notice under this Section 3(e), or the resulting unavailability of a Registration Statement, without regard to its duration, for disposition of securities by Buyer be considered a breach by the Company of its obligations under this Agreement.  The preceding sentence in this Section 3(e) does not limit whether an event of default has occurred as set forth in Section 9(a) of the Purchase Agreement.

f.    The Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of any Registration Statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest practical time and to notify the Buyer of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

g.    The Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities if the Principal Market (as such term is defined in the Purchase Agreement) is an automated quotation system.  The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section.

h.    The Company shall cooperate with the Buyer to facilitate the timely preparation and delivery of certificates or book-entry forms (not bearing any restrictive legend) representing the Registrable Securities to be offered pursuant to any Registration Statement and enable such certificates or book-entry forms to be in such denominations or amounts as the Buyer may reasonably request and registered in such names as the Buyer may request.

i.    The Company shall at all times provide a transfer agent and registrar with respect to its Common Stock.

j.    If reasonably requested by the Buyer, the Company shall (i) promptly incorporate in a prospectus supplement or post-effective amendment to the Registration Statement such information as the Buyer believes should be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities; (ii) make all required filings of such prospectus supplement or post-effective amendment as promptly as practicable once notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement (including by means of any document incorporated therein by reference).

k.    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.    If reasonably requested by the Buyer at any time, the Company shall deliver to the Buyer a written confirmation 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.    The Company agrees to take all other reasonable actions as necessary and reasonably requested by the Buyer to expedite and facilitate disposition by the Buyer of Registrable Securities pursuant to any Registration Statement.

4.    OBLIGATIONS OF THE BUYER.

a.    The Buyer has furnished to the Company in Exhibit A hereto such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it 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 Buyer in writing of any other information the Company reasonably requires from the Buyer in connection with any Registration Statement hereunder, and the Buyer shall promptly furnish such information to the Company. The Buyer 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 the Common Stock.

b.    The Buyer 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 hereunder.

5.    EXPENSES OF REGISTRATION.

All reasonable expenses of the Company, other than sales or brokerage commissions and fees and disbursements of counsel for the Buyer, 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.

6.    INDEMNIFICATION.

a.    To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Buyer, each Person, if any, who controls the Buyer, the members, the directors, officers, partners, employees, agents, representatives of the Buyer and each Person, if any, who controls the Buyer within the meaning of the 1933 Act or the Securities Exchange Act of 1934, as amended (the “1934 Act”) (each, an “Indemnified Person”), against any third party losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable and documented attorneys’ fees, amounts paid in settlement (with the prior consent of the Company, such consent not to be unreasonably withheld) or reasonable and documented 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 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, or (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 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 Registration Statement or any New Registration Statement or any post-effective amendment thereto (the matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”).  The Company shall reimburse each Indemnified Person promptly as such expenses are incurred and are due and payable, for any reasonable and documented legal fees or other reasonable and documented 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 Buyer 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, if such prospectus 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 Buyer 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 Buyer pursuant to Section 8.

b.    In connection with the Registration Statement, any New Registration Statement or Prospectus, the Buyer 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 1933 Act or the 1934 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 1933 Act, the 1934 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 Buyer set forth on Exhibit A attached hereto or updated from time to time in writing by the Buyer and furnished to the Company by the Buyer expressly for inclusion in the Shelf Registration Statement or Prospectus or any New Registration Statement or from the failure of the Buyer 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 Buyer will reimburse any 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 Buyer, which consent shall not be unreasonably withheld.  Such indemnity shall remain in full force and effect and shall survive the transfer of the Registrable Securities by the Buyer pursuant to Section 8. 

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, and upon such notice, the indemnifying party shall not be liable to the Indemnified Person or Indemnified Party for any legal or other expenses subsequently incurred by the Indemnified Person or Indemnified Party in connection with the defense thereof; provided, however, that an Indemnified Person or Indemnified Party (together with all other Indemnified Persons and Indemnified Parties that may be represented without conflict by one counsel) 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 (including reimbursement of expenses) 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 1933 Act) shall be entitled to contribution from any party 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.

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 Buyer; 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 Buyer may not assign its rights under this Agreement without the prior written consent of the Company. 

9.    AMENDMENT OF REGISTRATION RIGHTS.

Provisions of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the Buyer.

10.    MISCELLANEOUS.

a.    Any notices, consents, waivers 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 (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); (iii) upon receipt, when sent by electronic message (provided the recipient responds to the message and confirmation of both electronic messages are kept on file by the sending party); or (iv) one (1) Business Day after timely deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

If to the Company:

Novan, Inc.
4105 Hopson Road
Morrisville, NC 27560

Telephone:    [***]
Facsimile:    [***]
Attention:      Chief Executive Officer
Email:        [***]

With a copy (which shall not constitute notice) to:

Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P. 
150 Fayetteville Street, Suite 2300
Raleigh, NC 27601
Telephone:     [***]    
Facsimile:      [***]    
Attention:     Gerald F. Roach    
Email:         [***]

If to the Buyer:

Aspire Capital Fund, LLC
155 North Wacker Drive, Suite 1600
Chicago, IL 60606 
Telephone:    [***]
Facsimile:    [***]
Attention:    Steven G. Martin
Email:        [***]

With a copy (which shall not constitute notice) to:

Morrison & Foerster LLP
2000 Pennsylvania Avenue, NW, Suite 6000
Washington, DC 20006
Telephone:    [***]
Facsimile:    [***]
Attention:    David M. Lynn, Esq.
Email:        [***]

or at such other address 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 at least one (1) Business Day prior to the effectiveness of such change.  Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, and recipient facsimile number, (C) electronically generated by the sender’s electronic mail containing the time, date and recipient email address or (D) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of receipt in accordance with clause (i), (ii), (iii) or (iv) above, respectively.  Any party to this Agreement may give any notice or other communication hereunder using any other means (including messenger service, ordinary mail or electronic mail), but no such notice or other communication shall be deemed to have been duly given unless it actually is received by the party for whom it is intended.

b.    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.    The corporate laws of the State of Delaware shall govern all issues concerning the relative rights of the Company and its stockholders.  All other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of Chicago 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.

d.    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 Buyer, the Company, their affiliates and persons acting on their behalf with respect to the subject matter hereof and thereof.

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

g.    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 or pdf (or other electronic reproduction of a) signature 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, not a facsimile or pdf (or other electronic reproduction of a) signature.

h.    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.    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.    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.

* * * * * *

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

THE COMPANY:

NOVAN, INC.

By:  /s/ Paula Brown Stafford    
Name:  Paula Brown Stafford
Title:     President & CEO

BUYER:

ASPIRE CAPITAL FUND, LLC
BY: ASPIRE CAPITAL PARTNERS, LLC
BY: SGM HOLDINGS CORP.

By:   /s/ Steven G. Martin       
Name:  Steven G. Martin
Title:  President

EXHIBIT A

Information About The Buyer Furnished To The Company By The Buyer
Expressly For Use In Connection With The Registration Statement and Prospectus

Aspire Capital Partners LLC (“Aspire Partners”) is the Managing Member of Aspire Capital Fund, LLC (“Aspire Fund”).  SGM Holdings Corp (“SGM”) is the Managing Member of Aspire Partners.  Mr. Steven G. Martin (“Mr. Martin”) is the president and sole shareholder of SGM, as well as a principal of Aspire Partners.  Mr. Erik J. Brown (“Mr. Brown”) is the president and sole shareholder of Red Cedar Capital Corp (“Red Cedar”), which is a principal of Aspire Partners. Mr. Christos Komissopoulos (“Mr. Komissopoulos”) is president and sole shareholder of Chrisko Investors Inc. (“Chrisko”), which is a principal of Aspire Partners.  Mr. William F. Blank, III (“Mr. Blank”) is president and sole shareholder of WML Ventures Corp. (“WML Ventures”), which is a principal of Aspire Partners.  Each of Aspire Partners, SGM, Red Cedar, Chrisko, WML Ventures, Mr. Martin, Mr. Brown, Mr. Komissopoulos and Mr. Blank may be deemed to be a beneficial owner of common stock held by Aspire Fund. Each of Aspire Partners, SGM, Red Cedar, Chrisko, WML Ventures, Mr. Martin, Mr. Brown, Mr. Komissopoulos and Mr. Blank disclaims beneficial ownership of the common stock held by Aspire Fund.

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