Document:

ck0001556898-ex101_6.htm

 

Exhibit 10.1

 SEPARATION AGREEMENT AND RELEASE

RECITALS

This Separation Agreement and Release (the “Agreement”) is made by and between Yukiko Tegarden, an individual ("Executive") and Techpoint, Inc., a Delaware Corporation (the "Company") (individually each a “Party” and collectively the “Parties”).  Executive must sign and return this Agreement within twenty-one (21) days of her receipt of this Agreement to be eligible for the severance benefits described below.

WHEREAS, Executive served the Company as its Chief Financial Officer from March of 2016 until August 31, 2018, on which date her employment with the Company terminated (the “Termination Date”); and

WHEREAS, the Company and Executive entered into a Proprietary Information Agreement (“PIA”) upon her joining the Company; and

WHEREAS, the Company and Executive entered into a Stock Option Award Agreement for 90,000 options granted on April 18, 2016 (the “First Option Agreement”) and a Stock Option Award Agreement for 30,000 options granted on March 28, 2017 (the “Second Option Agreement”); and

WHEREAS, the Company wishes to provide Executive with a severance package, but is willing to do so only if Executive provides the Company with this release so that the Company is assured that the severance pay satisfies Executive's expectations.

NOW, THEREFORE, in consideration of the promises made herein, the Parties hereby agree as follows:

COVENANTS

1.Consideration.  In consideration of Executive’s execution of this Agreement and Executive’s fulfillment of all of its terms and conditions, and provided that Executive does not revoke the Agreement pursuant to Section 7(c) below, the Company agrees as follows:

(i)Separation Pay.  The Company agrees to pay Executive the lump sum of Twelve Thousand Sixteen Dollars and Sixty-Seven Cents ($12,016.67), less applicable tax withholdings (“Separation Pay”).  This payment will be made on or before the sixtieth (60th) day following the Termination Date, but not later than 60 days after the date Executive has incurred a “separation from service” within the meaning of section 409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended. This payment will be subject to all legally required payroll deductions and withholdings.  

(ii)Options.  Executive currently holds options to purchase common stock of the Company (“Options”) under the First Option Agreement (“Option #1”) and the Second Option Agreement (“Option #2”).  As of the Termination Date and subject to the 

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modifications set forth in this paragraph 1(ii), (a) under Option #1, 36,000 shares are vested and exercised,, 9,000 shares are vested and unexercised and remain exercisable for three (3) months post-termination, and 45,000 shares are unvested (total 90,000 shares); and (b) under Option #2, 8,500 shares  are vested and unexercised and remain exercisable for three (3) months  post-termination, and 21,500 shares are unvested (total 30,000 shares).  Please note that for purposes of this Agreement, the Company has calculated vesting assuming Executive has performed services through September 1, 2018.  In regards to Option #1, subject to Executive’s continued compliance with her obligations under the PIA and with the provisions of sections 11 through 15 below, Executive will continue to vest in Option #1 pursuant to the terms of the First Option Agreement during the twelve (12) month period following the Termination Date at the rate of  1,667 shares per month on the first calendar day of each month commencing October 1, 2018 (subject to a maximum of 20,000 shares eligible to vest through the twelve (12) month anniversary of the Termination Date), and her compliance with such conditions during such twelve (12) month period will be treated as “Continuous Service” for purposes of determining the exercisability of the 20,000 shares eligible to vest under Option #1 during such twelve (12) month period pursuant to the terms of  the First Option Agreement. Executive shall continue to have only three (3) months from the Termination Date to exercise the 9,000 shares that are vested and unexercised shares as of the Termination Date under Option #1, and if Executive elects not to exercise those shares within such three (3) month period, then those shares will be terminated as of the end of such three (3) month period.  All shares underlying Option #1 which are unvested as of the Termination Date and which are not eligible to vest during such twelve (12) month period (25,000 shares) will be terminated as of the Termination Date.  

By signing this Agreement, Executive acknowledges that the shares eligible to vest during the twelve (12) month post-termination period under Option #1 will not be eligible to receive incentive stock option (“ISO”) treatment, but will instead be treated as non-statutory stock options (“NSO”).  Additionally, Executive acknowledges that there are differences between the tax treatment of an NSO and an ISO, that she has had the opportunity to seek the advice of her personal tax advisor and is not relying on the Company for tax advice, including with respect to the impact of this Agreement on the ISO status of any portion of her Options, and that she desires to enter into this Agreement notwithstanding such consequences.  Executive understands that her entitlement to this portion of the consideration for this Agreement is contingent on her continued compliance with her obligations under the PIA and Executive’s continued compliance with the provisions of sections 11 through 15 below, and that the Company reserves the right to revoke such entitlement should she fail to do so.  All shares underlying Option #2 which are unvested as of the Termination Date will be terminated as of the Termination Date and Executive shall have three (3) months from the Termination Date to exercise any such vested shares underlying Option #2, and if Executive elects not to exercise such vested shares underlying Option #2 within such three (3) month period, then those shares will be terminated as of the end of such three (3) month period.

Other than Option #1 and Option #2, Executive specifically agrees that she has not received nor has she been promised or granted any stock ownership or stock option rights in the Company, and she will not have or be entitled to receive any ownership interest of any kind in the Company in the future.  If this Agreement does not become effective, Executive’s vesting in Option #1 and Option #2 will be deemed to have ceased as of the Termination Date, and she will have only 

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three (3) months from the Termination Date to exercise the vested portion, if any, of Option #1 and Option #2.

(iii)General.  Executive acknowledges that without this Agreement, she is otherwise not entitled to the consideration listed in this Section 1, which is offered by the Company solely as consideration for this Agreement.

2.Benefits.  Executive’s health insurance benefits will cease on August 31, 2018, subject to Executive’s right to continue her health insurance under COBRA.  Executive’s participation in all benefits and incidents of employment, including, but not limited to, the accrual of any bonuses, vacation and PTO, will cease as of the Termination Date.  

3.Trade Secrets and Confidential Information/Company Property.  Executive reaffirms and agrees to observe and abide by the terms of the PIA, specifically including the provisions therein regarding nondisclosure of the Company’s trade secrets and confidential and proprietary information.  Executive’s signature below constitutes her certification under penalty of perjury that she has returned all documents and other items provided to Executive by the Company, developed or obtained by Executive in connection with her employment with the Company, or otherwise belonging to the Company. 

4.Payment of Salary and Receipt of All Benefits.  Executive acknowledges and represents that, other than the consideration set forth in this Agreement, the Company has paid or provided all salary, wages, bonuses, accrued vacation/paid time off, leave, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Executive.

5.Release of Claims. Executive agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Executive by the Company and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, founders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations and assigns (the “Releasees”).  Executive, on her own behalf, both in her individual and representative capacity, and on behalf of her respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute or pursue, any claim, complaint, charge, duty, obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Executive may possess against any of the Releasees arising from any omissions, acts. facts or damages that have occurred up to and including the Effective Date of this Agreement including, without limitation:

(a)any and all claims relating to or arising from Executive’s employment relationship with the Company and the termination of that relationship; 

(b)any and all claims relating to, or arising from, Executive’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law; 

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(c)any and all claims for wrongful discharge of employment; constructive discharge; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of a covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; and conversion;

(d)any and all claims for violation of any federal, state or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967; the Americans with Disabilities Act of 1990; the Fair Credit Reporting Act; the Employee Retirement Income Security Act of 1974; the Family and Medical Leave Act; the Worker Adjustment and Retraining Notification Act; the Older Workers Benefit Protection Act; the Sarbanes-Oxley Act of 2002, section 49.60.010 et seq.; the Fair Labor Standards Act, 29 U.S.C. §§201 et seq.; relevant California Labor Code provisions; all amendments to each of the above-referenced statutes; and any other federal, state or local laws or regulations relating to employment terms and conditions of employment;

(e)any and all claims for violation of the federal, or any state, constitution; 

(f)any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

(g)any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by Executive as a result of this Agreement; and

(h)any and all claims for attorneys’ fees and costs.

Executive agrees that the release set forth in this Section shall be and remain in effect in all respects as a complete general release as to the matters released.  

This release does not extend to any obligations incurred under this Agreement.  This release does not release claims that cannot be released as a matter of law, including, but not limited to, Executive’s right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, the California Department of Fair Employment and Housing, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the understanding that any such filing or participation does not give Executive the right to recover any monetary damages against the Company; Executive’s release of claims herein bars her from recovering such monetary relief from the Company).  

In addition, this release does not waive Executive’s right to file an application for an award for original information submitted pursuant to Section 21F of the Securities Exchange Act of 1934.  Executive acknowledges and agrees that she may disclose confidential information in confidence directly or indirectly to federal, state, or local government officials, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, any agency Inspector General, or to an attorney, for the sole purpose of reporting or investigating a suspected 

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violation of law or regulation or making other disclosures that are protected under the whistleblower provisions of state or federal laws or regulations.  Executive may also disclose confidential information in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal.  Nothing in this Agreement is intended to conflict with federal law protecting confidential disclosures of a trade secret to the government or in a court filing, 18 U.S.C. § 1833(b), or to create liability for disclosures of confidential information that are expressly allowed by 18 U.S.C. § 1833(b). 

Finally, this release does not extend to (a) any rights to reimbursement or indemnification Executive may have pursuant to any written agreement with the Company, or any parent or subsidiary of the Company, to which Executive is a party; the charter, bylaws or other governing documents of the Company, or any parent or subsidiary of the Company; under applicable law; or under directors and officers liability, errors and omissions, or other insurance policies (including any run-off endorsement relating thereto), or otherwise; or (b) any rights or claims to contribution Executive may have in the event of the entry of judgment against Executive as a result of any act or failure to act for which both Executive and the Company or any parent or subsidiary of the Company (or the directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent or subsidiary entities, insurers, affiliates or assigns of any of them) are jointly responsible. 

6.Additional Effects of Release.  Without limiting the generality of the forgoing, Executive agrees that as a result of the termination of her employment as described herein, Executive has no right to severance benefits of any type, other than as set forth herein, and expressly waives and releases any rights to severance or other benefits under any other agreement with, or policy or practice of, the Company.  Executive further acknowledges and agrees that while the Options will continue to vest subject to the provisions of Section 1.(ii) above, Executive otherwise has no continuing right to accelerated vesting of options or other equity under any circumstances, and Executive waives and releases any claim to such rights.

7.Acknowledgement of Waiver of Claims Under ADEA.  Executive acknowledges that she is waiving and releasing any rights she may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary.  Executive agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement.  Executive acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Executive was already entitled.

Executive further acknowledges that she has been advised by this writing that: 

(a) she should consult with an attorney prior to executing this Agreement; 

(b) she has twenty-one (21) days within which to consider and accept the terms of this Agreement.  To accept the terms of this Agreement, Executive shall date and sign this Agreement and return it to Hiro Kozato, Techpoint, Inc., 2550 North First Street, Suite 550, San Jose, CA 95131; 

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 (c) she has seven (7) days following her execution of this Agreement to revoke this Agreement (“Revocation Period”).  If she decides to revoke this Agreement after signing, she must submit a written statement of revocation by the last day of the Revocation Period to Hiro Kozato, Techpoint, Inc., 2550 North First Street, Suite 550, San Jose, CA 95131; 

(d) if Executive does not revoke during the seven-day Revocation Period, this Agreement will take effect on the eighth (8th) day after the date Executive signs the Agreement (“Effective Date”); and 

(e) nothing in this Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law.  In the event Executive signs this Agreement and returns it to the Company in less than the 21-day period identified above, Executive hereby acknowledges that she has freely and voluntarily chosen to waive the time period allotted for considering this Agreement.  

8.Unknown Claims.  The release of claims herein extends to all claims of every nature and kind whatsoever, whether known or unknown, suspected or unsuspected.  Executive  expressly waives the benefits of any provision of the laws of the United States or of any state which provide that a general release does not extend to claims which a party does not know or expect to exist in its favor at the time of executing the release, which if known to the party may have materially affected the settlement.  It is Executive's intention to forever discharge and release known and unknown, present and future claims against the Releasees within the scope of the release set forth herein.

9.No Pending or Future Lawsuits.  Executive represents that she has no lawsuits, claims, or actions pending in her name, or on behalf of any other person or entity, against the Company or any of the other Releasees.  Executive also represents that she does not intend to bring any claims on her own behalf or on behalf of any other person or entity against the Company or any of the other Releasees.

10.Application for Employment.  Executive understands and agrees that, as a condition of this Agreement, she shall not be entitled to any employment with the Company, and Executive hereby waives any right, or alleged right, of employment or re-employment with the Company.    

11.No Cooperation.  Executive agrees not to act in any manner that might damage the business of the Company.  Executive further agrees that she will not knowingly encourage or counsel any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so.  Executive agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order.  If approached by anyone for counsel in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Executive shall state no more than that she cannot provide counsel.

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12.Non-Disparagement.  Executive agrees to refrain from any disparagement, defamation, libel or slander of any of the Releasees, or any tortious interference with the contracts, relationships and prospective economic advantage of the other party or any of the Releasees.  

13.Non-Solicitation.  Executive agrees that, by virtue of her employment with the Company, she has been privy to highly confidential and sensitive information pertaining to the Company’s key employees and independent contractors.  In order to protect the Company’s legitimate interests in such information, Executive agrees that for a period of twelve (12) months immediately following the Effective Date of this Agreement, she shall not directly or indirectly hire, retain or attempt to hire or retain any employee or independent contractor of the Company or in any way interfere with the relationship between the Company and any of its employees or independent contractors.

14.Transition Assistance.  Executive agrees to make herself reasonably available to answer any questions the Company may have related to projects and duties she performed as CFO for a period of twelve (12) months following the Termination Date.  

15.Breach.  Executive acknowledges and agrees that any material breach of this Agreement or of any provision of the PIA shall entitle the Company immediately to recover and/or cease providing the consideration provided to Executive under this Agreement, except as provided by law.  All other provisions of this Agreement shall remain in full force and effect.

16.No Admission of Liability.  Executive understands and acknowledges that this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims.  No action taken by either Party hereto, either previously or in connection with this Agreement, shall be deemed or construed to be: (a) an admission of the truth or falsity of any claims; or (b) an acknowledgment or admission by either Party of any fault or liability whatsoever to the other Party, or to any third party.

17.Costs.  The Parties shall each bear their own costs, expert fees, attorneys’ fees and other fees incurred in connection with this Agreement.

18.Arbitration.  THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN SAN JOSE, CALIFORNIA BEFORE JAMS, PURSUANT TO ITS COMMERCIAL ARBITRATION RULES & PROCEDURES (“JAMS RULES”).  THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES.  THE ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN ACCORDANCE WITH CALIFORNIA LAW, AND THE ARBITRATOR SHALL APPLY SUBSTANTIVE AND PROCEDURAL CALIFORNIA LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO ANY CONFLICT-OF-LAW PROVISIONS OF ANY JURISDICTION.  TO THE EXTENT THAT THE JAMS RULES CONFLICT WITH CALIFORNIA LAW, CALIFORNIA LAW SHALL TAKE PRECEDENCE.  THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND BINDING ON THE PARTIES TO THE ARBITRATION.  THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF 

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COMPETENT JURISDICTION TO ENFORCE THE ARBITRATION AWARD.  THE PARTIES TO THE ARBITRATION SHALL EACH PAY AN EQUAL SHARE OF THE COSTS AND EXPENSES OF SUCH ARBITRATION, AND EACH PARTY SHALL SEPARATELY PAY FOR ITS RESPECTIVE COUNSEL FEES AND EXPENSES; PROVIDED, HOWEVER, THAT THE ARBITRATOR SHALL AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY.  THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY.  NOTWITHSTANDING THE FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE RELIEF (OR ANY OTHER PROVISIONAL REMEDY) FROM ANY COURT HAVING JURISDICTION OVER THE PARTIES AND THE SUBJECT MATTER OF THEIR DISPUTE RELATING TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE.  SHOULD ANY PART OF THE ARBITRATION AGREEMENT CONTAINED IN THIS SECTION CONFLICT WITH ANY OTHER ARBITRATION AGREEMENT BETWEEN THE PARTIES, THE PARTIES AGREE THAT THIS ARBITRATION AGREEMENT SHALL GOVERN.

19.Cooperation with Company.  Executive agrees to cooperate, at the reasonable request of the Company, in the defense and/or prosecution of any charges, claims, investigations (internal or external), administrative proceedings and/or lawsuits relating to matters occurring during Executive’s period of employment.  The Company agrees to pay Executive a reasonable fee commensurate with the required services for the time expended in the defense and prosecution of such matters.  

20.Tax Consequences.  The Company makes no representations or warranties with respect to the tax consequences of the payments provided to Executive or made on her behalf under the terms of this Agreement.  Executive agrees and understands that she is responsible for payment, if any, of local, state and/or federal taxes on the payments made hereunder by the Company and any penalties or assessments thereon.  Executive further agrees to indemnify and hold the Company harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Company for any amounts claimed due on account of: (a) Executive’s failure to pay or the Company’s failure to withhold, or Executive’s delayed payment of, federal or state taxes; or (b) damages sustained by the Company by reason of any such claims, including attorneys’ fees and costs.

21.Authority.  The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement.  Executive represents and warrants that she has the capacity to act on her own behalf and on behalf of all who might claim through her to bind them to the terms and conditions of this Agreement.  Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

22.No Representations.  Executive represents that she has had an opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement.  Executive has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement.

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23.Severability.  In the event that any provision, or any portion thereof, becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision or portion of said provision.

24.Entire Agreement.  This Agreement represents the entire agreement and understanding between the Company and Executive concerning the subject matter of this Agreement and Executive’s employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter of this Agreement and Executive’s relationship with the Company, with the exception of the PIA and the applicable Option Agreements.

25.No Waiver.  The failure of the Company to insist upon the performance of any of the terms and conditions in this Agreement, or the failure to prosecute any breach of any of the terms and conditions of this Agreement, shall not be construed as a waiver of any such terms or conditions.  This entire Agreement shall remain in full force and effect as if no such forbearance or failure of performance had occurred.

26.No Oral Modification.  This Agreement may only be amended in a writing signed by Executive and the Chief Executive Officer of the Company.

27.Governing Law and Venue.  This Agreement shall be construed, interpreted, governed and enforced in accordance with the laws of the State of California, without regard to choice-of-law provisions.

28.Counterparts.  This Agreement may be executed in counterparts and by facsimile or PDF, and each counterpart and facsimile or PDF shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.

29.Notices.  Any notice to be provided to the Company pursuant to this Agreement must be submitted to the Company’s Chief Executive Officer at Techpoint, Inc., 2550 North First Street, Suite 550, San Jose, CA 95131.  Any notice to be provided to Executive pursuant to this Agreement must be submitted to her home address, 486 Central Avenue, Sunnyvale, CA 94086.

30.Voluntary Execution of Agreement.  Executive represents and agrees that she executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of her claims against the Company and any of the other Releasees.  Executive acknowledges that:

(a)  she has read this Agreement;

(b)she has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of her own choice or that she has voluntarily declined to seek such counsel;

(c)she understands the terms and consequences of this Agreement and of the releases it contains; and

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(d)  she is fully aware of the legal and binding effect of this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

	

	
  

				
	
 
	
 
	
Techpoint, Inc.

 
	
 

	
Dated:September 21, 2018
	
By:
	
/s/ Hiro Kozato
	
 

	
 
	
 
	
HIRO KOZATO

Its Chief Executive Officer
	
 

	
 

 

Dated:September 20, 2018
	
By:
	
 

 

/s/ Yukiko Tegarden                        
	
 

	
 
	
 
	
Yukiko Tegarden
	
 

 

 

Page 10 of 10Exhibit 4.1

 

EXECUTION COPY

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of September 26, 2018, by and between AKARI THERAPEUTICS, PLC,
a public limited company incorporated under the laws of England and Wales (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 Securities 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 Twenty Million Dollars ($20,000,000) of the Company’s American Depositary Shares (“ADSs”)
representing interests in ordinary shares of the Company (“Ordinary Shares” and together with the ADSs, the
 “Securities”), pursuant to Section 1 of the Purchase Agreement (the “Purchase Securities”),
and (ii) the Company has agreed to issue to the Buyer such number of ADSs representing interests in Ordinary Shares as is
required pursuant to Section 4(e) of the Purchase Agreement (the “Commitment Securities”); 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.       “Register,”
 “registered,” and “registration” refer to a registration effected by preparing and filing
one or more registration statements of the Company in compliance with the 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 U.S. Securities and Exchange Commission (the “SEC”).

 

     

     

    

  

c.       “Registrable
Securities” means (i) all of the Commitment Securities and the Initial Purchase ADSs and (ii) such number of additional
Purchase Securities as reasonably determined by the Company, which may from time to time be, issued or issuable to the Buyer upon
purchases of the Available Amount under the Purchase Agreement, and any securities issued or issuable with respect to the Purchase
Securities, the Commitment Securities 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.

 

d.       “Registration
Statement” means a registration statement of the Company covering only the sale of the Registrable Securities.

 

2.           REGISTRATION.

 

a.       Mandatory
Registration. The Company shall within Ten (10) Business Days from the date hereof file with the SEC the Registration Statement.
The Registration Statement shall register only the Registrable Securities and no other securities of the Company. Except as provided
herein, the Buyer and its counsel shall have a reasonable opportunity to review and comment upon such Registration Statement or
any amendment to such Registration Statement and any related prospectus 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
have the Registration Statement or any amendment declared effective by the SEC as soon as reasonably practicable. Subject to Permitted
Delays (as defined below) and Section 3(e), the Company shall use reasonable best efforts to keep the 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 date as of which the Buyer may sell all of the Registrable Securities without restriction pursuant to Rule
144 promulgated under the 1933 Act (or successor thereto) or (ii) the date on which the Buyer shall have sold all the Registrable
Securities and no Available Amount remains under the Purchase Agreement (the “Registration Period”). Except
as contemplated in Section 3(e), and except with respect to the information furnished in writing to the Company by the Buyer expressly
for use in connection with the preparation of the Registration Statement and any amendments or supplements thereto or prospectus
contained therein (as to which the Company makes no representation or warranty), the Registration Statement (including any amendments
or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to
state a material fact 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 and prospectus supplements, if any, 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 Securities Registered. In the event the number of securities available under the Registration Statement is insufficient
to cover the Registrable Securities, the Company shall, to the extent necessary and permissible, amend the Registration Statement
or file a new registration statement (a “New Registration Statement”), so as to cover all 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.

 

    	 	2	 

     

    

  

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 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 the 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, any New Registration
Statement and all amendments and supplements thereto (other than prospectus supplements that consist only of a copy of a
filed Form 20-F or a Report on Form 6-K or any amendment as a result of the Company’s filing of a document that is
incorporated by reference into the Registration Statement or New 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. Upon request of the Buyer, the
Company shall provide to the Buyer all disclosure in the Registration Statement or any New Registration Statement and all
amendments and supplements thereto (other than prospectus supplements that consist only of a copy of a filed Form 20-F or
Report on Form 6-K or any amendment as a result of the Company’s filing of a document that is incorporated by reference
into the Registration Statement or New 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. 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.

 

    	 	3	 

     

    

  

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 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.

 

    	 	4	 

     

    

  

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, 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 Securities to the Buyer. 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 (not bearing any restrictive
legend) representing the Registrable Securities to be offered pursuant to any Registration Statement and enable such certificates
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 Securities.

 

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).

 

    	 	5	 

     

    

  

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.       Within
two (2) Business Days after any Registration Statement is ordered effective by the SEC, the Company shall deliver to the
Transfer Agent for such Registrable Securities (with copies to the Buyer) confirmation that such Registration Statement has
been declared effective by the SEC in the form attached hereto as Exhibit A. Thereafter, 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 Buyer 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 B 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. The Buyer will as promptly as practicable notify the Company of any material
change in the information set forth in Exhibit B, other than changes in its ownership of the Registrable Securities.

 

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.

 

c.       The
Buyer agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the kind
described in Section 3(f) or any notice of the kind described in the first sentence of Section 3(e), the Buyer will immediately
discontinue disposition of Registrable Securities pursuant to any registration statement(s) covering such Registrable Securities
until the Buyer’s receipt (which may be accomplished through electronic delivery) of the copies of the filed supplemented
or amended registration statement and/or prospectus contemplated by Section 3(f) or the first sentence of Section 3(e). In addition,
upon receipt of any notice from the Company of the kind described in the first sentence of Section 3(e), the Buyer will immediately
discontinue purchases or sales of any securities of the Company unless such purchases or sales are in compliance with applicable
U.S. securities laws. Notwithstanding anything to the contrary, the Company shall cause its Transfer Agent to deliver as promptly
as practicable Securities without any restrictive legend in accordance with the terms of the Purchase Agreement in connection with
any sale of Registrable Securities with respect to which the Buyer has received a Purchase Notice or VWAP Purchase Notice (both
as defined in the Purchase Agreement) prior to the Buyer’s receipt of a notice from the Company of the happening of any event
of the kind described in Section 3(f) or the first sentence of Section 3(e) and for which the Buyer has not yet settled.

 

    	 	6	 

     

    

  

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 attorneys’ fees, amounts paid in settlement
(with the prior consent of the Company, such consent not to be unreasonably withheld) or reasonable expenses, (collectively, “Claims”)
reasonably incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal
taken from the foregoing by or before any court or governmental, administrative or other regulatory agency or body or the SEC,
whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”),
to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in the
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 (as amended or supplemented, if the Company files any amendment thereof or
supplement thereto with the SEC) 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 (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
legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (A) shall not apply to
a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with
information furnished in writing to the Company by the Buyer or such Indemnified Person expressly for use in connection with the
preparation of the Registration Statement, any New Registration Statement 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 9.

 

    	 	7	 

     

    

  

b.       In
connection with the Registration Statement or 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 signs the Registration Statement or 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 B attached hereto or updated from time to time in writing by the Buyer and furnished to the Company
by the Buyer expressly for use in the Registration Statement 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; provided, further, however, that the Buyer shall be liable under this Section
6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to the Buyer as a result of the
sale of Registrable Securities pursuant to such registration statement. Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities
by the Buyer pursuant to Section 9.

 

    	 	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.

 

    	 	9	 

     

    

  

8.           REPORTS
AND DISCLOSURE UNDER THE SECURITIES ACTS.

 

With a view to making available
to the Buyer the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the SEC that may
at any time permit the Buyer to sell securities of the Company to the public without registration (“Rule 144”),
the Company agrees, at the Company’s sole expense, to:

 

a.       use
its reasonable best efforts to make and keep public information available, as those terms are understood and defined in Rule 144;

 

b.       use
its reasonable best efforts to file with the SEC in a timely manner all reports and other documents required of the Company under
the 1933 Act and the 1934 Act so long as the Company remains subject to such requirements and the filing of such reports and other
documents is required to satisfy the current public information requirements of Rule 144;

 

c.       furnish
to the Buyer so long as the Buyer owns Registrable Securities, as promptly as practicable at Buyer’s request, (i) a written
statement by the Company that it has complied in all material respects with the requirements of Rule 144(c)(1)(i) and (ii), and
(ii) such other information, if any, as may be reasonably requested to permit the Buyer to sell such securities pursuant to Rule
144 without registration; and

 

d.       take
such additional action as is reasonably requested by the Buyer to enable the Buyer to sell the Registrable Securities pursuant
to Rule 144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions
to the Company’s Transfer Agent as may be reasonably requested from time to time by the Buyer and otherwise provide reasonable
cooperation to the Buyer and the Buyer’s broker to effect such sale of securities pursuant to Rule 144.

 

The Company agrees that damages
may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that Buyer shall, whether or not it
is pursuing any remedies at law, be entitled to seek equitable relief in the form of a preliminary or permanent injunctions, without
having to post any bond or other security, upon any breach or threatened breach of any such terms or provisions.

 

9.           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.

 

    	 	10	 

     

    

  

10.         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.

 

11.         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:

Akari Therapeutics, Plc

75/76 Wimpole Street

London W1G 9RT

United Kingdom

Telephone: 44 20 8004 0270

Facsimile: None

Attention: Clive Richardson

Email: clive.richardson@akaritx.com

 

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

McDermott
Will & Emery LLP

340
Madison Avenue

New
York, NY 10173 

Telephone:
1 212 547 5352

Facsimile:
1 646 390 0820

Attention:
Todd Finger or Gary Emmanuel

Email:
tfinger@mwe.com or gemmanuel@mwe.com

 

If to the Buyer:

Aspire Capital Fund, LLC

155 North Wacker Drive, Suite 1600

Chicago, IL 60606

Telephone: 1 312-658-0400

Facsimile: 1 312-658-4005

Attention: Steven G. Martin

Email: smartin@aspirecapital.com

 

    	 	11	 

     

    

  

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

Morrison & Foerster LLP

2000 Pennsylvania Avenue, NW, Suite
6000

Washington, DC 20006

Telephone: 1 202-778-1611

Facsimile: 1 202-887-0763

Attention: Martin P. Dunn, Esq.

Email: mdunn@mofo.com

 

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 England and Wales 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.

 

    	 	12	 

     

    

 

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 9, 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.

 

* * * * *

 

    	 	13	 

     

    

 

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:
	 	 
	 	AKARI THERAPEUTICS, PLC
	 	 	 
	 	By: 	/s/ Clive Richardson
	 	Name:	Clive Richardson
	 	Title:	COO, Director & Interim 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

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