Document:

Exhibit 10.1

 

MACK-CALI REALTY CORPORATION

AMENDED AND RESTATED 2013 INCENTIVE STOCK PLAN

 

SECTION 1.        
INTRODUCTION

 

1.1
          PURPOSE.  On May 15, 2013, the Mack-Cali Realty Corporation 2013 Incentive Stock Plan (the “2013 Plan”)
became effective upon the approval of the 2013 Plan by the stockholders of Mack-Cali Realty Corporation (the “Corporation”).
The purpose of this Mack-Cali Realty Corporation Amended and Restated 2013 Incentive Stock Plan (as so amended and restated, the “Plan”)
is to advance and promote the interests of the Corporation and its Subsidiaries by providing employees, consultants and advisors of the
Corporation or its Subsidiaries and non-employee members of the Corporation’s Board of Directors, or its Subsidiaries, if so designated,
with an incentive to achieve corporate objectives, to attract and retain employees, consultants, advisors, non-employee Directors of outstanding
competence and to provide such individuals with an equity interest in the Corporation through the acquisition of Shares and by providing
for payments to such individuals based on the appreciation in value or value of such Shares. The Plan is intended to be construed as an
employee benefit plan that satisfies the requirements for exemption from the restrictions of Section 16(b) of the Securities
Exchange Act of 1934, as amended, pursuant to the applicable rules promulgated thereunder. The Plan is effective as of the date on
which it is approved by the Corporation’s shareholders (the “Effective Date”).

 

1.2          
DEFINITIONS.  The following definitions are applicable to the Plan:

 

(a)          
“Award” means Options, Performance Shares, Performance Share Units, Restricted Stock, Restricted Stock Units, Stock
Appreciation Rights (SARs), Phantom Stock Units (including long-term incentive plan units of limited partnership interests in Mack-Cali
Realty, L.P.), Unrestricted Stock,  or any combination thereof, granted under the Plan.

 

(b)          
“Award Agreement” means the written agreement between the Corporation and each Participant that sets forth
the terms and provisions applicable to an Award granted to the Participant under the Plan. To the extent that some or all of the terms
and provisions of an Award are set forth in a Participant’s employment or other agreement, as applicable, with the Corporation or
any Subsidiary, the term “Award Agreement” as used herein incorporates by reference such terms. In the event of any conflict
between the terms and provisions of an Award Agreement and those of an employment or other agreement, the terms of the employment or other
agreement shall control.

 

(c)          
“Beneficiary” means the beneficiary or beneficiaries designated in accordance with Section 6.8 to receive the
amount, if any, payable under the Plan upon the death of a Participant or the right to exercise an Award outstanding upon the death of
a Participant.

 

(d)          
“Board” means the Board of Directors of the Corporation.

 

(e)          
“Cause” mean termination for fraud or willful misconduct by a Director, as determined by the Committee or the Board.

 

(f)          
“Change in Control” means that any of the following events has occurred:

 

(i)            
any “person” or “group” of persons, as such terms are used in Sections 13 and 14 of the Exchange Act, other
than the Corporation, any of its Subsidiaries, or any employee benefit plan sponsored by the Corporation or any of its Subsidiaries, becomes
the “beneficial owner” (as such term is defined in Rule 13d-3 under the Exchange Act) of 30% or more of the Shares issued
and outstanding immediately prior to such acquisition;

 

(ii)          
any Shares are purchased pursuant to a tender or exchange offer, other than an offer by the Corporation, that results in any “person”
or “group” of persons, as such terms are used in Sections 13 and 14 of the Exchange Act becoming the “beneficial owner”
(as such term is defined in Rule 13d-3 under the Exchange Act) of 30% or more of the Shares issued and outstanding immediately prior
to such tender or exchange offer; or

 

     

     

    

 

(iii)          
the dissolution or liquidation of the Corporation or the consummation of any merger or consolidation of the Corporation or any
sale or other disposition of all or substantially all of its assets, if the shareholders of the Corporation immediately prior to such
transaction own, immediately after consummation of such transaction, equity securities (other than options and other rights to acquire
equity securities) possessing less than 30% of the voting power of the surviving or acquiring corporation.

 

provided, however, that notwithstanding anything in the Plan to the
contrary, no Change in Control shall be deemed to have occurred, and no rights arising upon a Change in Control described in the Plan
or an applicable Award Agreement shall exist, unless (i) on a Plan wide basis, the Board directs to the contrary by resolution adopted
prior to the Change in Control or (ii) on a Participant by Participant basis with respect to individual Participants who have employment
or other agreements with the Corporation or any Subsidiary which contain a definition of change in control, the definition of change in
control is met under such employment or other agreement and such employment or other agreement specifies that a change in control under
such other employment or other agreement will be considered a Change in Control for purposes of the Plan. Any resolution of the Board
adopted in accordance with the provisions of this Section directing that this Section  become ineffective may be rescinded or
countermanded at any time with or without retroactive effect by such Board.

 

(g)          
“Code” means the Internal Revenue Code of 1986, as amended from time to time. References to a particular section of,
or rule under, the Code includes references to successor provisions.

 

(h)          
“Committee” means the committee appointed pursuant to Section 1.3 or if no such Committee is appointed, the Board.

 

(i)           
“Corporation” means Mack-Cali Realty Corporation.

 

(j)           
“Director” means any non-employee member of the Board, and any non-employee member of the Board of Directors of a Subsidiary
to the extent that the Board designates such Subsidiary’s Board of Directors as eligible to participate in the Plan.

 

(k)           
“Disability” means (i) with respect to a Participant who is a Director, a mental or physical condition rendering
the Participant unable to perform his or her regular duties in such capacity, as determined by the Committee or the Board, or, (ii) with
respect to a Participant who is a Key Employee, the Participant qualifies for long-term disability benefits under the Corporation’s
long-term disability plan that covers the Participant, unless otherwise provided for in an employment or other agreement between the Participant
and the Corporation.

 

(l)           
“Eligible Individual” means any Key Employee, consultant or advisor of the Corporation or any Subsidiary, and any Director.

 

(m)          
“Exchange Act” means the Securities Exchange Act of 1934, as amended. References to a particular section of, or rule under,
the Exchange Act include references to successor provisions.

 

(n)          
“Fair Market Value” means the fair market value of the Shares based upon the closing price of a Share as quoted on
the New York Stock Exchange at the end of the last business day preceding the Grant Date or other date of determination, or, if the Shares
are not then traded on the New York Stock Exchange or no sale takes place on such day, the average of the closing bid and asked prices
for the Shares on a national securities exchange or other market system on which the Shares are then traded, as reported in the New York
edition of The Wall Street Journal; provided, however, that if Shares are not readily tradeable on a national securities exchange or other
market system, Fair Market Value means an amount determined in good faith by the Committee to be the fair market value of the Shares.

 

(o)          
“Grant Date” means the date on which the Committee approves the grant of an Award by Committee action or such later
date as specified in advance by the Committee.

 

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(p)           
“Incentive Stock Option” means an Option to purchase Shares that qualifies as an incentive stock option within the
meaning of Section 422 of the Code.

 

(q)           
“Immediate Family” means, with respect to a particular Participant, the Participant’s spouse, children and grandchildren.

 

(r)            
“Key Employee” means any employee of the Corporation or any of its Subsidiaries, including any officer or director
who is also an employee, who, in the judgment of the Committee, is considered important to the future of the Corporation. Nothing shall
limit the Board from designating all or substantially all employees as eligible for grants.

 

(s)           
“Mature Shares” means Shares for which the holder thereof has good title, free and clear of all liens and encumbrances,
and which such holder either (i) has held for at least six months or (ii) has purchased from the open market.

 

(t)            
“Nonqualified Stock Option” means an Option to purchase Shares, that does not qualify as an Incentive Stock Option.

 

(u)           
“Option” means an Incentive Stock Option or a Nonqualified Stock Option granted under the Plan.

 

(v)           
“Option Price” means the purchase price per Option Share.

 

(w)          
“Option Term” means the period beginning on the Grant Date of an Option and ending on the expiration date of such Option,
as specified in the Award Agreement for such Option and as may, in the discretion of the Committee, and consistent with the provisions
of the Plan, be extended from time to time.

 

(x)           
“Participant” means an Eligible Individual who has been granted an Award or a Permitted Transferee.

 

(y)          
“Performance Shares” means Restricted Stock the vesting of which is dependent in whole or part upon the satisfaction
of performance goals specified by the Committee and set forth in the Award Agreement.

 

(z)           
“Performance Share Unit” means a Phantom Stock Unit that entitles the Participant to the receipt of one or more Share,
or the value thereof,  upon the satisfaction of performance goals specified by the Committee and set forth in the Award Agreement.

 

(aa)          “Permitted Transferee” means a person to whom an Award may be transferred or assigned in accordance with Section 6.8.

 

(bb)         “Phantom Stock Unit” means a contractual right to receive Shares or the value of Shares in the future.

 

(cc)          “Plan” means this Mack-Cali Realty Corporation Amended and Restated 2013 Incentive Stock Plan, as the same may be amended
from time to time.

 

(dd)         
“Restricted Period” means, as applicable, the period of time Restricted Stock is subject to the Restrictions specified
in the Award Agreement applicable to such Restricted Stock, or the period during which Phantom Stock Units vest or performance goals must
be achieved with respect to Phantom Stock Units, as specified in the Award Agreement applicable to the Phantom Stock Units.

 

(ee)          “Restricted Stock” means Shares that are subject to forfeiture if the Participant does not satisfy the Restrictions
specified in the Award Agreement applicable to such Restricted Stock.

 

(ff)          
“Restricted Stock Unit” means a Phantom Stock Unit that entitles the Participant to the receipt of one Share upon the
satisfaction of the required vesting requirements set forth in the Award Agreement.

 

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(gg)         “Restrictions” means those restrictions and conditions placed upon Restricted Stock as determined by the Board in accordance
with Section 4.2.

 

(hh)         “Retirement” means separation from service as a Director on or after age 65 or at such other time as the Board may
designate.

 

(ii)           
“Rule 16b-3” means Rule 16b-3 of the SEC under the Exchange Act, as amended from time to time, together with
any successor rule.

 

(jj)          
  “SEC” means the Securities and Exchange Commission.

 

(kk)          “Section 16 Participant” means a Participant who is subject to potential liability under Section 16(b) of
the Exchange Act with respect to transactions involving equity securities of the Corporation.

 

(ll)           
“Share” means a share of the common stock, $.01 par value per share, of the Corporation.

 

(mm)        “Stock Appreciation Right” or “SAR” means a right granted under the Plan in connection with an Option,
or separately, to receive the appreciation in value of Shares.

 

(nn)         “Strike
Price” shall have the meaning set forth in Section 3.2.

 

(oo)         “Subsidiary” means a corporation as defined in Section 424(f) of the Code (with the Corporation treated as
the employer corporation for purposes of this definition) and, for all other purposes, a corporation or other entity with respect which
the Corporation (i) owns, directly or indirectly, 50% or more of the then outstanding common stock in any corporation or (ii) has
a 50% or more ownership interest in any other entity.

 

(pp)         “10% Owner” means a person who owns capital stock (including stock treated as owned under Section 424(d) of
the Code) possessing more than 10% of the combined voting power of all classes of capital stock of the Corporation or any Subsidiary where
 “voting power” means the combined voting power of the then outstanding securities of a corporation entitled to vote generally
in the election of directors.

 

(qq)         “Termination” means (i) for a Participant who is a Key Employee, termination of employment with the Corporation
and all Subsidiaries, (ii) for a Participant who is a consultant or advisor, termination from service with the Corporation and all
Subsidiaries, as determined by the Corporation, or (iii) for a Participant who is a Director, termination from service of the Board,
as the case may be.

 

(rr)          
“Unrestricted Stock” means Shares that are not subject to forfeiture granted pursuant to Section 4.1(b).

 

1.3          
ADMINISTRATION.  The Plan shall be administered by a committee (the “Committee”), which shall consist of two
or more directors of the Corporation, all of whom qualify as “Non-Employee Directors” as defined in Rule 16b-3. The number
of members of the Committee shall from time to time be increased or decreased, and shall be subject to such conditions, in each case as
the Board deems appropriate to permit transactions in Shares pursuant to the Plan to satisfy such conditions of Rule 16b-3 as then
in effect. In the event that the Executive Compensation and Option Committee of the Board meets the requirements set forth in this Section 1.3,
it shall be the Committee hereunder unless otherwise determined by the Board.

 

A majority of the members of the Committee shall
constitute a quorum. The Committee may act at a meeting, including a telephonic meeting, by action of a majority of the members present,
or without a meeting by unanimous written consent.

 

Subject to the express provisions of the Plan,
the Committee shall have full and final authority and discretion as follows:

 

(i)            
to select the Participants from Eligible Individuals;

 

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(ii)           
to grant Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Unrestricted Stock and/or Phantom Stock
Units to Participants in such combination and in such amounts as it shall determine and to determine the terms and conditions applicable
to each such Award, including the benefit payable under any SAR, and whether or not specific Awards shall be identifiable with other specific
Awards, and if so whether they shall be exercisable cumulatively with, or alternatively to, such other specific Award;

 

(iii)           to determine the amount, if any, that a Participant shall pay for Restricted Stock or Unrestricted Stock, the nature of the Restrictions
applicable to the Restricted Stock, and the duration of the Restricted Period applicable to the Restricted Stock;

 

(iv)          
to determine the actual amount earned by each Participant with respect to such Awards, the terms and conditions of all Award Agreements
(which need not be identical) and with the consent of the Participant, to amend any such Award Agreement at any time, among other things,
to permit transfers of such Awards to the extent permitted by the Plan, except that consent of the Participant shall not be required for
any amendment which (A) does not adversely affect the rights of the Participant or (B) is necessary or advisable (as determined
by the Committee) to carry out the purpose of the Award as a result of any change in applicable law;

 

(v)           
to determine consistent with the Code whether an Option that is granted to a Participant is a Nonqualified Stock Option or an Incentive
Stock Option, the number of Shares to be covered by each such Option and the time or times when and the manner in which each Option shall
be exercisable;

 

(vi)          
to amend any Incentive Stock Option with the consent of the Participant so as to make it a Nonqualified Stock Option;

 

(vii)          to grant a SAR in connection with the grant of an Option or separately;

 

(viii)         to accelerate the exercisability (including exercisability within a period of less than one year after the Grant Date) of, and
to accelerate or waive any or all of the terms and conditions applicable to, any Award or any group of Awards for any reason and at any
time, including in connection with a termination of employment, termination of service as a Director (other than for Cause) or, in the
case of a consultant or advisor, termination of such consulting or advisory arrangement;

 

(ix)          
subject to the provisions of the Plan, to extend the time during which any Award or group of Awards may be exercised;

 

(x)           
to treat all or any portion of any period during which a Participant is on military leave or on an approved leave of absence from
the Corporation or a Subsidiary as a period of employment or service of such Participant by the Corporation or any Subsidiary for purposes
of accrual of his or her rights under his or her Awards;

 

(xi)          
to interpret the Plan and make all determinations necessary or advisable for the administration of the Plan including the establishment,
amendment or revocation from time to time of guidelines or regulations for the administration of the Plan, to cause appropriate records
to be established, to make all determinations of fact, and to take all other actions considered necessary or advisable for the administration
of the Plan; and

 

(xii)          
to take any other action with respect to any matters relating to the Plan for which it is responsible.

 

Notwithstanding the foregoing, except as provided
in Sections 6.2 and 6.3, the Committee shall not have the authority to reduce the Option Price of any Option, or the Strike Price of any
SAR (including granting new Options or SARS in exchange or replacement for Options or SARs with a higher Option Price or Strike Price,
or any transaction that has the effect of a repricing), or to cause any Option or SAR to be repurchased,  or otherwise cancelled
in exchange for a payment of any form of consideration, if the Option Price or Strike Price is greater than the Fair Market Value of the
Shares covered by the Option or SAR.

 

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All decisions, actions or interpretations of the
Committee on all matters relating to the Plan or any Award Agreement shall be final, binding and conclusive upon all parties. No member
of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award.

 

1.4          
PARTICIPATION/SERVICE

 

(a)          
Participation.  The Committee may, in its discretion, grant Awards to any Eligible Individual, whether or not he or she
has previously received an Award. Participation in the Plan shall be limited to those Eligible Individuals who have received written notification
from the Committee, or from a person designated by the Committee, that they have been selected to participate in the Plan. No such Eligible
Individuals shall at any time have the right to be a Participant or to receive an Award unless selected by the Committee pursuant to the
Plan. No Participant, having been granted an Award, shall have the right to an additional Award in the future unless such Award is granted
by the Committee.

 

(b)          
Transfer of Service.  Notwithstanding any provision in the Plan to the contrary, for purposes of determining the exercise
period and exercisability of Awards granted hereunder, a Participant shall not be deemed to have incurred a Termination if the Participant’s
status as a Director, employee, consultant or advisor terminates and the Participant is then, or immediately thereafter becomes, an Eligible
Individual due to another status or relationship with the Corporation or a Subsidiary.

 

1.5          
MAXIMUM NUMBER OF SHARES AVAILABLE FOR AWARDS.  Subject to adjustment in accordance with Section 6.2, the maximum
number of Shares for which Awards under the Plan shall be available is 6,565,000. Any Shares subject to an Award granted under the 2013
Plan and outstanding on the Effective Date or thereafter under the Plan shall subsequently become available for new grants upon forfeiture,
termination or cancelation of the Award; provided, however, that Shares that
are (a) forfeited, terminated or canceled in payment of the Option Price for such Award, (b) forfeited, terminated or cancelled
to satisfy the applicable tax withholding obligation upon exercise, payment or settlement of the award, and (c) not delivered pursuant
to any Option, Phantom Stock Unit Award or SAR Award under this Plan because the Award, although denominated in Shares, is paid
in cash, in each case shall be deemed to have been delivered for purposes of determining the maximum number of Shares available for delivery
under the Plan, and shall not be available for new grants under the Plan.  The number of Shares granted with respect to a SAR shall
be the total number of Shares covered by the SAR, and not the number actually issued; provided that if a SAR is granted in connection
with an Option the number of Shares covered by the Option and SAR shall only be counted once.  The Shares distributed under the Plan
may be authorized and unissued shares, shares held in the treasury of the Corporation, or shares purchased on the open market by the Corporation
(at such time or times and in such manner as it may determine). The Corporation shall be under no obligation to acquire Shares for distribution
to Participants before such Shares are due and distributable.  The maximum number of Shares with respect to which Incentive Stock
Options may be granted is 6,565,000.

 

1.6          
GENERAL CONDITIONS TO GRANTS.  All Awards shall be evidenced by an Award Agreement and any terms and conditions of an
Award not set forth in the Plan shall be set forth in the Award Agreement related to that Award or, if applicable, in the Participant’s
employment or other agreement with the Corporation or any Subsidiary.

 

SECTION 2.        OPTIONS

 

2.1          
AWARD OF OPTIONS. Subject to the provisions of the Plan, the Committee, in its sole discretion, shall determine and designate
from time to time those Eligible Individuals to whom Incentive Stock Options or Nonqualified Stock Options, or both, shall be granted,
the number of Shares covered by each Option, and the terms and conditions of each Option. Any Option not designated as an Incentive Stock
Option shall be a Nonqualified Stock Option. In determining the Eligible Individuals who will be granted Options under the Plan, the Committee
may consider such Eligible Individuals’ responsibilities, service, present and future value to the Corporation or any Subsidiary
and other factors it considers relevant.

 

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2.2          
TERMS AND CONDITIONS OF OPTIONS.  Except as otherwise provided in an applicable Award Agreement, each Option shall be
subject to the following express terms and conditions and to such other terms and conditions as the Committee, in its sole discretion,
may deem appropriate as set forth in the Award Agreement:

 

(a)          
Option Term.  Each Option shall expire on the 10th anniversary of the Grant Date (or, in the case of an Incentive Stock
Option granted to a 10% Owner, on the 5th anniversary of the Grant Date) or such earlier expiration date as shall be specified in the
Participant’s Award Agreement.  To the extent the Award Agreement, or the Plan, provides for the term of an Option to expire
earlier as a result of a termination of employment or other event, the Committee may extend the period of time during which the Option
is exercisable following such event, but not beyond the end of the original term.

 

(b)          
Option Price.  The Option Price per Share shall be determined by the Committee, in its sole discretion, no later than
the Grant Date of any Option; provided, however, that the Option Price shall not be less than the Fair Market Value of a Share on the
Grant Date (or, with respect to an Incentive Stock Option granted to a 10% Owner, 110% of the Fair Market Value of a Share on the Grant
Date). In no event shall the Option Price per Share be less than the par value of a Share.

 

(c)          
Exercisability of Options.  Options granted under the Plan shall be exercisable at such times and subject to such terms
and conditions as shall be determined by the Committee, in its sole discretion, and set forth in the Award Agreement. Such terms and conditions
need not be the same for each grant or for each Participant. Except as otherwise provided in the applicable Award Agreement with the Participant,
an Option granted to a Participant who is a Key Employee, consultant or advisor shall become exercisable by the Participant in three equal
annual installments of 33-1/3% of the total Shares subject to the Option. The first installment shall become exercisable on the December 31st
that is at least one year after the Grant Date and each other installment shall become exercisable on each of the next two anniversaries
thereafter. With respect to an Option granted to a Participant who is a Director, except as otherwise provided in an applicable Award
Agreement, the Option shall become fully exercisable as of the January 1 immediately following the date on which the Participant
has completed one year of service as a Director) or such other date as the Committee, in its sole discretion, determines. The preceding
exercise schedules are subject to the Participant not having incurred a Termination and to the acceleration or early expiration provisions
set forth in this Section 2.2 or in an applicable Award Agreement.

 

(d)          
Exercise Upon Termination.  Subject to Section 1.4(b) and unless otherwise provided in an Award Agreement,
the following provisions shall apply upon a Participant’s Termination:

 

(i)            
Termination Due to Death.  If a Participant who is a Key Employee, consultant or advisor incurs a Termination
due to death, such Participant’s Beneficiary, heirs or estate may exercise his or her Options, to the extent the Option would have
become exercisable had the Participant’s Termination occurred in the calendar year following such Participant’s death, and
any portion of any Option granted hereunder that would not have vested and been exercisable within the calendar year following such Participant’s
death if such Participant had not died shall automatically expire and be forfeited as of the date of such Participant’s death. If
a Participant’s service as a member of the Board shall terminate because of his or her death, the Participant’s Beneficiary,
heirs or estate shall have the right to exercise all Options issued to him or her in such capacity, regardless of whether such Options
were exercisable prior to the Participant’s death. Upon a Participant’s death under this Subsection 2.2(d)(i), the exercisable
portion of the Option as determined hereunder may be exercised until the earlier of (x) the expiration date determined under Subsection
2.2(a) or (y) one year from the date of the Participant’s death.

 

(ii)           
Termination Due to Disability.  If a Participant who is a Key Employee incurs a Termination due to Disability,
such Participant may exercise his or her Options to the extent the Option would have become exercisable had the Participant’s Termination
occurred in the calendar year following such Participant’s Termination, and any portion of any Option granted hereunder that would
not have vested and been exercisable within the calendar year following such Participant’s Termination shall automatically expire
and be forfeited as of the date of such Participant’s Termination. If a Participant’s service as a member of the Board terminates
due to Disability, such Participant shall have the right to exercise all Options issued to him or her in such capacity, regardless of
whether such Options were exercisable prior to the Participant’s Termination. Upon a Participant’s Termination due to Disability
under this Subsection 2.2(d)(ii), the exercisable portion of the Option as determined hereunder may be exercised by the Participant until
the earlier of (x) the expiration date determined under Subsection 2.2(a) or (y) one year from the date of the Participant’s
Disability.

 

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(iii)          
Termination Due to Retirement.  If a Participant’s service as a member of the Board terminates due to
Retirement, the Participant shall have the right to exercise all Options regardless of whether such Options are vested, at any time and
from time to time, until the earlier of (x) the expiration date determined under Subsection 2.2(a) hereof or (y) one year
following the date of Retirement.

 

(iv)          
Termination Due to Cause.  If a Participant’s service as a Director terminates for Cause, any Option granted
to such Participant shall expire immediately and all rights to purchase Shares (whether or not exercisable) under the Option shall cease
upon such termination.

 

(v)           
Other Termination.  In the event of a Participant’s Termination for any reason other than as described
under Subsection 2.2(d)(i), (ii), (iii) or (iv) above, any Option granted to such Participant shall remain exercisable until
the earlier of (x) the expiration date determined under Subsection 2.2(a) or (y) three months from the date of such Termination.
In such circumstance, the Option shall only be exercisable to the extent exercisable as of the date of such Termination and shall not
be exercisable with respect to any additional Shares.

 

(e)           
Limitations on Incentive Stock Options.  Incentive Stock Options may be granted only to Eligible Individuals who are Key
Employees at the Grant Date. The aggregate Fair Market Value (determined at the time the Option is granted) of the Shares with respect
to which any Incentive Stock Options are exercisable for the first time by any Key Employee during any calendar year under all option
plans of the Corporation and any Subsidiary shall not exceed $100,000 or such other limit set forth in Section 422 of the Code (the
 “Code Limits”). If the aggregate Fair Market Value of such Shares exceeds the Code Limits, the excess Shares will be treated
as Nonqualified Stock Options under this Plan. In reducing the number of Incentive Stock Options to meet the Code Limits, the most recently
granted Incentive Stock Option shall be reduced first. If a reduction of simultaneously granted Options is necessary to meet the Code
Limits, the Committee may designate which Shares are to be treated as Shares acquired pursuant to an Incentive Stock Option. In the event
that any Incentive Stock Option granted under the Plan fail to meet the requirements for Incentive Stock Options as set forth in the Code,
such Incentive Stock Options will be treated and redesignated as a Nonqualified Stock Option for Federal income tax purposes automatically
without further action by the Committee on the date of such failure to continue to meet the requirements of Section 422 of the Code.

 

(f)            
Investment Representation.  Each Award Agreement for an Option shall provide that, upon demand by the Committee for such
a representation, the Participant (or any person acting under Subsection 2.2(d)) shall deliver to the Committee, at the time of any exercise
of an Option or portion thereof, a written representation that the Shares to be acquired upon such exercise are to be acquired for investment
and not for resale or with a view to the distribution thereof. Upon such demand, delivery of such representation prior to the delivery
of any Shares issued upon exercise of an Option and prior to the expiration of the Option Term shall be a condition precedent to the right
of the Participant or such other person to purchase any Shares. In the event certificates for Shares are delivered under the Plan with
respect to which such an investment representation has been obtained, the Committee may cause a legend or legends to be placed on such
certificates to make appropriate reference to such representations and to restrict transfer in the absence of compliance with applicable
federal or state securities laws.

 

(g)           
Participants to Have No Rights as Shareholders.  No Participant shall have any rights as a shareholder with respect to
any Shares subject to his or her Option prior to the date of issuance to him or her of such Shares.

 

(h)           
Other Option Provisions.  The Committee may require a Participant to agree, as a condition to receiving an Option under
the Plan, that part or all of any Options previously granted to such Participant under the Plan or any prior plan of the Corporation be
terminated.

 

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2.3          
EXERCISE OF AND PAYMENT FOR OPTIONS.  An Option shall be exercised by the delivery to the Corporation during the Option
Term of (a) written notice of intent to purchase a specific number of Shares subject to the Option and (b) payment in full of
the Option Price of such specific number of Shares. Unless otherwise limited in an Award Agreement, payment of the Option Price may be
made either (i) in cash, certified check or wire transfer, (ii) subject to the approval of the Committee, in Mature Shares already
owned by the Participant having a total fair market value, as determined by the Committee, equal to the purchase price, or a combination
of cash and Mature Shares having a total fair market value, as so determined, equal to the purchase price, (iii) subject to the approval
of the Committee, in its sole discretion, by delivering a properly executed exercise notice in a form approved by the Committee, together
with an irrevocable notice of exercise and irrevocable instructions to a broker to promptly deliver to the Corporation the amount of applicable
sale proceeds sufficient to pay the purchase price for such Shares, together with the amount of federal, state and local withholding taxes
payable by Participant by reason of such exercise, (iv) subject to the approval of the Committee, in its sole discretion, by requesting
that the Corporation withhold from the number of Shares transferred to the Participant a number of Shares with a fair market value equal
to the Option Price, or (v) a combination of the foregoing.

 

2.4          
NOTICE OF DISQUALIFYING DISPOSITION.  A Participant shall notify the Corporation of any disposition of Shares issued upon
exercise of an Incentive Stock Option within 10 business days after such disposition if such disposition is made during the holding period
described in Section 422(a) of the Code resulting in a disqualifying disposition (within the meaning of Treasury Regulation
Section 1.421-2(b)).

 

SECTION 3.       
STOCK APPRECIATION RIGHTS

 

3.1          
AWARD OF STOCK APPRECIATION RIGHTS.  Subject to the provisions of the Plan, the Committee, in its sole discretion, shall
determine and designate from time to time those Eligible Individuals to whom SARs shall be granted, the number of Shares to be granted
to each such Eligible Individual and the terms and conditions of each SAR. When granted, SARs may, but need not, be identified with a
specific Option (including any Option granted on or before the Grant Date of the SARs) in a number equal to or different from the number
of Shares subject to such Option. If SARs are identified with Shares subject to an Option, then, unless otherwise provided in the applicable
Award Agreement, the Participant’s associated SARs shall terminate upon (a) the expiration, termination, forfeiture or cancellation
of such Option, or (b) the exercise of such Option.

 

3.2          
STRIKE PRICE.  The strike price (“Strike Price”) of any SAR shall equal, for any SAR that is identified with
an Option, the Option Price of such Option, or for any other SAR, 100% of the Fair Market Value of a Share on the Grant Date of such SAR;
except that the Committee may specify a higher Strike Price in the Award Agreement. In no event shall the Strike Price be less than the
par value of a Share.

 

3.3          
EXERCISABILITY OF SARS.  SARs granted under the Plan shall be exercisable at such times and subject to such terms and
conditions as shall be determined by the Committee, in its sole discretion, and set forth in the Award Agreement. Such terms and conditions
need not be the same for each grant or for each Participant. Unless otherwise specified in the applicable Award Agreement, the following
terms and conditions shall apply:

 

(a)           
SARs Granted to Directors.  SARs granted to a Participant who is a Director shall become exercisable (i) in the case
of each SAR not identified with an Option, on the first anniversary of the Grant Date of the SAR, or in such other amounts and over such
other time period as may be determined by the Committee, and (ii) in the case of each SAR that is identified with an Option, at the
time or times at which the Option with which such SAR is identified may be exercised. The preceding exercise schedule is subject to the
Participant not having incurred a Termination and to the acceleration or early expiration provisions set forth in Subsection 3.3(c) and
Section 3.6 or in an applicable Award Agreement.

 

(b)           
SARs Granted to Key Employees, Consultants or Advisors.  SARs granted to a Participant who is a Key Employee, consultant
or advisor shall become exercisable (i) in the case of each SAR not identified with an Option, in three equal annual installments
of 33-1/3% of the Shares subject to the SAR, with the first installment becoming exercisable on the December 31st that is at least
one year after the Grant Date and each other installment becoming exercisable on each of the next two anniversaries thereafter, and (ii) in
the case of each SAR that is identified with an Option, at the time or times at which the Option with which such SAR is identified may
be exercised. The preceding exercise schedule is subject to the Participant not having incurred a Termination and to the acceleration
or early expiration provisions set forth in Subsection 3.3(c) and Section 3.6 or in an applicable Award Agreement.

 

    9

     

    

 

(c)          
SAR Term.  Each SAR shall expire on the 10th anniversary of the Grant Date or, if earlier, upon expiration of any Option
with which the SAR is identified.  To the extent the Award Agreement, or the Plan, provides for the term of a SAR to expire earlier
as a result of a termination of employment or other event, the Committee may extend the period of time during which the SAR  is exercisable
following such event, but not beyond the end of the original term.

 

3.4          
EXERCISE OF SARS.  SARs shall be exercised by delivery to the Corporation of the Participant’s written notice of
intent to exercise a specific number of SARs. Unless otherwise provided in the applicable Award Agreement, the exercise of SARs which
are identified with Shares subject to an Option shall result in the cancellation or forfeiture of an equal number of Shares subject to
such Option, and any such Shares so canceled or forfeited shall not thereafter again become available for grant under the Plan. Upon exercise
of an SAR, a Participant shall be entitled to receive a per Share payment from the Corporation in an amount equal to (a) the Fair
Market Value of the Share on the date of such exercise, minus (b) the Strike Price of Shares subject to the SAR. Such payment shall
be made in cash (subject to applicable withholding), except that the Committee, in its sole discretion, may provide, in the applicable
Award Agreement, that payment may be made, wholly or partly, in Shares.

 

3.5          
NO RIGHTS AS SHAREHOLDERS.  No Participant shall have any rights as a shareholder with respect to any Shares subject to
his or her SAR.

 

3.6          
EXERCISE OF SAR IN THE EVENT OF TERMINATION.  The Committee, in its sole discretion, shall set forth in the applicable
Award Agreement the extent to which a Participant shall have the right to exercise SARs following a Termination. Such provisions need
not be uniform among all SARs granted pursuant to the Plan, and may reflect distinctions based on the reasons for such Termination. Subject
to Section 1.4(b) and unless otherwise provided in an Award Agreement, the following provisions shall apply:

 

(a)          
Termination Due to Death.  If a Participant who is a Key Employee, consultant or advisor incurs a Termination due to death,
such Participant’s Beneficiary, heirs or estate may exercise his or her SARs, to the extent the SARs would have become exercisable
had the Participant’s Termination occurred in the calendar year following such Participant’s death, and any portion of any
SAR granted hereunder that would not have vested and been exercisable within the calendar year following such Participant’s death
if such Participant had not died shall automatically expire and be forfeited as of the date of such Participant’s death. If Participant’s
service as a member of the Board shall terminate because of his or her death, the Participant’s Beneficiary, heirs or estate shall
have the right to exercise all SARs issued to him or her in such capacity, regardless of whether such SARs were exercisable prior to the
Participant’s death. Upon a Participant’s death, the exercisable portion of the SAR as determined hereunder may be exercised
until the earlier of (x) the expiration date determined under Subsection 3.3(c) or (y) one year from the date of the Participant’s
death.

 

(b)          
Termination Due to Disability.  If a Participant who is a Key Employee incurs a Termination due to Disability, such Participant
may exercise his or her SARs to the extent the SAR would have become exercisable had the Participant’s Termination occurred in the
calendar year following such Participant’s Termination, and any portion of any SAR granted hereunder that would not have vested
and been exercisable within the calendar year following such Participant’s Termination shall automatically expire and be forfeited
as of the date of such Participant’s Termination. If a Participant’s service as a member of the Board terminates due to Disability,
such Participant shall have the right to exercise all SARs issued to him or her in such capacity, regardless of whether such SARs were
exercisable prior to the Participant’s Termination. Upon a Participant’s Termination due to Disability under this Subsection
3.6(b), the exercisable portion of the SAR as determined hereunder may be exercised by the Participant until the earlier of (x) the
expiration date determined under Subsection 3.3(c) or (y) one year from the date of the Participant’s Disability.

 

    10

     

    

 

(c)           
Termination Due to Retirement.  If a Participant’s service as a member of the Board terminates due to Retirement,
the Participant shall have the right to exercise all SARs regardless of whether such SARs are vested, at any time and from time to time,
until the earlier of (x) the expiration date determined under Subsection 3.3(c) or (y) one year following the date of Retirement.

 

(d)          
Termination Due to Cause.  If a Participant’s service as a Director terminates for Cause, any SAR granted to such
Participant shall expire immediately and all rights to exercise the SAR (whether or not exercisable) shall cease upon such termination.

 

(e)           
Other Termination.  In the event of a Participant’s Termination for any reason other than as described under Subsection
3.6(a), (b), (c), or (d) above, any SAR granted to such Participant shall remain exercisable until the earlier of the (x) expiration
date determined under Subsection 3.3(c) or (y) three months from the date of such Termination. In such circumstance, the SAR
shall only be exercisable to the extent exercisable as of the date of such Termination and shall not be exercisable with respect to any
additional Shares.

 

SECTION 4.           
RESTRICTED AND UNRESTRICTED STOCK

 

4.1          
AWARDS

 

(a)          
Restricted Stock.  Subject to the provisions of the Plan, the Committee, in its sole discretion, shall determine and designate
from time to time those Eligible Individuals to whom Restricted Stock shall be granted and the Restrictions as provided in this Section.
All Restrictions imposed on any such Award of Restricted Stock shall be made by and at the sole discretion of the Committee, subject to
the provisions of the Plan, and are binding on the Corporation and the Participants, their Beneficiaries and legal representatives. Such
Restrictions need not be the same for each grant or for each Participant.

 

(b)          
Unrestricted Stock.  Subject to the provisions of the Plan, the Committee, in its sole discretion, shall determine and
designate from time to time those Eligible Individuals to whom Unrestricted Stock shall be granted (or sold at par value or such other
higher purchase price determined by the Committee). Unrestricted Stock Awards may be granted or sold as described in the preceding sentence
in respect of past services or other valid consideration, or in lieu of any cash compensation due to such Eligible Individual.  Unrestricted
Stock shall be immediately vested upon grant and shall be free of Restrictions based upon continued service or the achievement of performance
goals, but may be subject to such other restrictions (including restrictions on transfer) as the Committee may determine, and may be subject
to forfeiture in accordance with Section 6.18.

 

4.2          
RESTRICTED PERIOD/RESTRICTIONS.  At the time each Award of Restricted Stock is granted, the Committee (i) shall establish
a Restricted Period within which Restricted Stock awarded to a Participant may not be sold, assigned, transferred, made subject to gift,
or otherwise disposed of, mortgaged, pledged or otherwise encumbered, if any, except to the extent provided in Section 6.8, and (ii) may
impose such other Restrictions on any Restricted Stock as it may deem advisable.  Unless otherwise provided in an Award Agreement,
any Award of Restricted Stock granted after the Effective Date to a Participant who is a Key Employee, consultant or advisor shall provide
for a Restricted Period of not less than three (3) years for full vesting (one (1) year in the case of Performance Shares),
subject to acceleration as provided in Sections 4.5 and 4.7.

 

4.3          
RIGHTS AS STOCKHOLDERS.  Except for the conditions outlined in Section 4.2, and the forfeiture conditions described
in Section 4.5, each Participant shall have all rights of a shareholder of the Corporation with respect to both Restricted and Unrestricted
Stock, including the right to receive all dividends or other distributions made or paid in respect of such Shares and the right to vote
such Shares at regular or special meetings of the shareholders of the Corporation.

 

4.4          
DELIVERY OF SHARES.  The certificates for any Restricted Stock granted to a Participant under the Plan shall be held (together
with a stock power executed in blank by the Participant) in escrow by the Secretary of the Corporation under the Participant’s name
in an account maintained by the Corporation until such Shares of Restricted Stock become nonforfeitable or are forfeited. At the end of
the Restricted Period and/or the expiration or attainment of such other Restrictions imposed on any Restricted Stock granted to a Participant,
or upon the prior approval of the Committee as described in Section 4.5, and subject to the satisfaction of the Corporation’s
withholding obligations described in Section 6.7, certificates representing such Shares of Restricted Stock shall be delivered to
the Participant, or the Beneficiary or legal representative of the Participant, free of the Restrictions set forth in the Award Agreement
pursuant to Section 4.2.

 

    11

     

    

 

4.5          
EFFECT OF TERMINATION.  The Committee, in its sole discretion, shall set forth in the applicable Award Agreement the extent
to which a Participant shall have the right to Shares subject to a Restricted Stock Award following a Termination. Such provisions need
not be uniform among all Awards of Restricted Stock granted pursuant to the Plan, and may reflect distinctions based on the reasons for
such Termination. Subject to Section 1.4(b) and unless otherwise provided in an Award Agreement, the following provisions shall
apply:

 

(a)          
Termination Due to Death.  If a Participant who is a Key Employee, consultant or advisor incurs a Termination due to death,
all Shares of Restricted Stock awarded to such Participant which are then subject to a Restricted Period or other Restrictions, and which
would have been released, if the Participant had not died, within the calendar year following such Participant’s death shall be
released on the date of the Participant’s death as if the Restricted Period for such Shares had ended and the other Restrictions
had lapsed, and certificates representing such Shares of Restricted Stock shall be delivered to the Participant’s Beneficiary, heirs
or estate free from such Restrictions as soon as practicable following such Termination, and all other Shares of Restricted Stock which
would not have been released, if the Participant had not died, within the calendar year following the Participant’s death will be
forfeited and become the property of the Corporation on the date of such Termination. If a Participant’s service as a member of
the Board shall terminate because of his or her death, the Restricted Period or other Restrictions applicable to all previously granted
Awards of Restricted Stock shall end or lapse, as the case may be, and such Shares shall be released and certificates representing such
Shares of Restricted Stock shall be delivered to the Participant’s Beneficiary, heirs or estate free from such Restrictions as soon
as practicable following such Termination.

 

(b)          
Termination Due to Disability.  If a Participant who is a Key Employee incurs a Termination due to Disability, all Shares
of Restricted Stock awarded to such Participant which are then subject to a Restricted Period or other Restrictions, and which would have
been released, if the Participant had not incurred a Termination, within the calendar year following such Participant’s Termination
shall be released on the date of the Participant’s Termination as if the Restricted Period for such Shares had ended and the other
Restrictions had lapsed, and certificates representing such Shares of Restricted Stock shall be delivered to the Participant free from
such Restrictions as soon as practicable following such Termination, and all other Shares of Restricted Stock which would not have been
released, if the Participant had not Terminated, within the calendar year following the Participant’s Termination due to Disability
will be forfeited and become the property of the Corporation on the date of such Termination. If a Participant’s service as a member
of the Board shall terminate because of his or her Disability, the Restricted Period or other Restrictions applicable to all previously
granted Awards of Restricted Stock shall end or lapse, as the case may be, and such Shares shall be released and certificates representing
such Shares of Restricted Stock shall be delivered to the Participant free from such Restrictions as soon as practicable following such
Termination.

 

(c)           
Termination Due to Retirement.  If a Participant’s service as a member of the Board shall terminate because of his
or her Retirement, the Restricted Period or other Restrictions applicable to all previously granted Awards of Restricted Stock shall end
or lapse, as the case may be, and such Shares shall be released and certificates representing such Shares of Restricted Stock shall be
delivered to the Participant free from such Restrictions as soon as practicable following such Termination.

 

(d)           
Termination Due to Cause.  If a Participant’s service as a member of the Board shall terminate for Cause, all Restricted
Stock awarded under the Plan which are then subject to a Restricted Period or other Restrictions shall be forfeited and become property
of the Corporation on the date of such termination of service.

 

(e)           
Other Termination.  In the event of a Participant’s Termination for any reason other than as described under Subsection
4.5(a), (b), (c), or (d) above, all Restricted Stock awarded to the Participant under the Plan which is then subject to a Restricted
Period or other Restrictions shall be forfeited and become property of the Corporation on the date of such Termination.

 

    12

     

    

 

4.6          
SECTION 83(b) ELECTIONS.  A Participant who files an election permitted under Section 83(b) of the
Code with the Internal Revenue Service to include the Fair Market Value of any Shares of Restricted Stock in gross income while the Shares
are still subject to a Restricted Period or other Restrictions shall notify the Corporation of such election within 10 days of making
such election and promptly furnish to the Corporation a copy of such election together with the amount of any federal, state, local or
other taxes required to be withheld to enable the Corporation to claim an income tax deduction with respect to such election.

 

4.7          
PERFORMANCE SHARES.  The Committee may designate Restricted Stock as Performance Shares, if the Restrictions applicable
to such Performance Shares are dependent, in whole or in part, on the extent to which performance goals specified in the Award Agreement
are achieved by the Corporation, any Subsidiary, division or function or the Corporation, or the individual Participant are achieved. 
The extent to which Performance Shares vest will be determined by the Committee, in its sole discretion, as a function of the extent to
which the corresponding performance goals have been achieved.  Except as otherwise provided in the Award Agreement, all provisions
of the Plan applicable to Restricted Stock shall also apply to Performance Shares, provided that the extent to which Performance Shares
vest upon a Termination pursuant to Section 4.5 shall be as set forth in the Award Agreement, or, to the extent not specified in
the Award Agreement, as determined by the Committee in its sole discretion.

 

SECTION 5.        PHANTOM STOCK UNITS

 

5.1          
AWARD OF PHANTOM STOCK UNITS.  Subject to the provisions of the Plan, the Committee, in its sole discretion, shall determine
and designate from time to time those Eligible Individuals to whom Phantom Stock Units shall be granted, the number of Phantom Stock Units
to be granted to any one Eligible Individual, the Restricted Period, the ability of Participants to defer the receipt of payment of such
Phantom Stock Units, and the other terms and provisions of such Award.  A Phantom Stock Unit that provides that the Participant shall
be entitled to one Share upon the vesting of the Phantom Stock Unit may be designated by the Committee as a “Restricted Stock Unit”,
and a Phantom Stock Unit that provides that the Participant will be entitled to one or more Shares, or the equivalent value, may be designated
by the Committee as a “Performance Share Unit”, and the provisions of this Plan applicable to Phantom Stock Units shall apply
equally to Restricted Stock Units or Performance Share Units, except as otherwise provided herein or in an Award Agreement.

 

5.2          
VALUE OF PHANTOM STOCK UNITS.  Each Phantom Stock Unit may have an initial value that is established by the Committee
at the Grant Date. The Committee may set performance goals in its sole discretion which, depending on the extent to which they are met,
will determine the number and/or value of Phantom Stock Units that will be paid out to the Participant.

 

5.3          
NO RIGHTS AS SHAREHOLDERS.  No Participant shall have any rights as a shareholder with respect to any Phantom Stock Units
subject to his Award.

 

5.4          
VESTING OR EARNING OF PHANTOM STOCK UNITS.  Subject to the terms of the Plan, after the applicable Restricted Period has
ended, or the applicable performance goals have been satisfied, Participant shall be entitled to receive a payout of the number and value
of Phantom Stock Units vested or earned, as the case may be, by the Participant over the Restricted Period. If the Committee establishes
performance goals for an Award, the number and value of Share Units will be determined by the Committee, in its sole discretion, as a
function of the extent to which the corresponding performance goals have been achieved.  Unless otherwise provided in an Award Agreement,
any Award of Phantom Stock Units granted after the Effective Date to a Participant who is a Key Employee, consultant or advisor shall
provide for a Restricted Period of not less than three (3) years for full vesting (one (1) year if vesting is also dependent
on the achievement of performance goals), subject to acceleration as provided in Section 5.6.

 

5.5          
FORM AND TIMING OF PAYMENT OF PHANTOM STOCK UNITS.  Except as provided below, payment of vested or earned Phantom
Stock Units shall be made in the form of cash or in Shares (or in a combination thereof) which have an aggregate Fair Market Value equal
to the value of the vested or earned Phantom Stock Units at the close of the applicable Restricted Period. At the Grant Date or shortly
thereafter, the Committee, in its sole discretion and in accordance with terms designated by the Committee, may provide for a voluntary
and/or mandatory deferral of all or any part of an otherwise vested or earned Phantom Stock Unit Award. At the sole discretion of the
Committee, Participants may be entitled to receive any dividends declared with respect to Shares earned in connection with a Phantom Stock
Unit Award which has been vested or earned, but not yet distributed to Participants (such dividends shall be subject to the same forfeiture,
and payout restrictions as apply to dividends earned with respect to Shares of Restricted Stock, if any).  Payment with respect to
Phantom Stock Units shall be made as soon as practical after the right to payment vests, but in no event later than March 15 of the
year following the year in which the right to payment vests.

 

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5.6          
EFFECT OF TERMINATION.  The Committee, in its sole discretion, shall set forth in the applicable Award Agreement the extent
to which a Participant shall have the right to a payout of a Phantom Stock Unit Award following a Termination. Such provisions need not
be uniform among all Awards of Phantom Stock Units granted pursuant to the Plan, and may reflect distinctions based on the reasons for
such Termination.

 

SECTION 6.        GENERAL PROVISIONS

 

6.1          
GENERAL CREDITOR STATUS.  Participants shall have no right, title, or interest whatsoever in or to any investments that
the Corporation may make to aid it in meeting its obligations under the Plan. Nothing contained in the Plan, and no action taken pursuant
to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Corporation and
any Participant, Beneficiary, legal representative or any other person. To the extent that any person acquires a right to receive payments
from the Corporation under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Corporation.
All payments to be made hereunder shall be paid from the general funds of the Corporation and no special or separate fund shall be established
and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in the Plan; provided, however,
that in its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the obligations created
under the Plan to deliver Shares or pay cash; provided, further, however, that, unless the Committee otherwise determines with the consent
of the affected Participant, the existence of such trusts or other arrangements shall be consistent with the “unfunded” status
of the Plan.

 

6.2          
CERTAIN ADJUSTMENTS TO SHARES.  In the event of any change in the Shares by reason of any stock dividend, recapitalization,
reorganization, spin-off, split-off, merger, consolidation, stock split, reverse stock split, combination or exchange of shares, or any
rights offering to purchase Shares at a price substantially below Fair Market Value, or of any similar change affecting the Shares of
or by the Corporation, the number and kind of Shares available for Awards under the Plan, the number and kind of Shares or Phantom Stock
Units subject to an outstanding Award, the Option Price, Strike Price or purchase price per Share thereof shall be appropriately adjusted
consistent with such change in such manner as the Committee, in its sole discretion, may deem equitable to prevent substantial dilution
or enlargement of the rights granted to, or available for, the Participants hereunder. Any adjustment of an Incentive Stock Option pursuant
to this Section shall be made only to the extent not constituting a “modification” within the meaning of Section 424
of the Code, unless the holder of such Option shall agree otherwise. The Committee shall give notice to each Participant of any adjustment
made pursuant to this Section and, upon notice, such adjustment shall be effective and binding for all purposes of the Plan.

 

6.3          
SUCCESSOR CORPORATION.  The obligations of the Corporation under the Plan shall be binding upon any successor corporation
or organization resulting from the merger, consolidation or other reorganization of the Corporation, or upon any successor corporation
or organization succeeding to substantially all of the assets and business of the Corporation. The Corporation agrees that it will make
appropriate provision for the preservation of Participants’ rights under the Plan in any agreement or plan which it may enter into
or adopt to effect any such merger, consolidation, reorganization or transfer of assets, taking into account the following sentence. 
Pursuant to any transfer of the Corporation’s assets and business to a successor organization, the Committee may make such adjustments
to outstanding Awards as it may determine to be fair and equitable, in accordance with the Plan, which adjustments may including cancelling
any outstanding Awards in consideration of the payment to the Participant of an amount equal to the value, as determined by the Committee,
of the consideration that the Participant would have received pursuant to such transaction for the number of Shares subject to such Award
reduced, in the case of an Option or SAR, by the Option Price or Strike Price, and if the Option Price or Strike Price exceeds the fair
market value of the Shares subject to the Option or SAR, the Option or SAR may be cancelled without payment of any further consideration. 
No Award that was not vested prior to the transaction shall be cancelled unless such Award is vested (subject to the Committee’s
determination of the extent to which performance goals, if applicable, have been met) in connection with the transaction and the Participant
given a reasonable opportunity to exercise such Award.

 

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6.4          
NO CLAIM OR RIGHT UNDER THE PLAN.  Neither the Plan nor any action taken thereunder shall be construed as giving any employee,
consultant or advisor any right to be retained in the employ of or by the Corporation or any Director any right to continue in the service
of the Board.

 

6.5          
AWARDS NOT TREATED AS COMPENSATION UNDER BENEFIT PLANS.  No Award shall be considered as compensation under any employee
benefit plan of the Corporation, except as specifically provided in any such plan or as otherwise determined by the Board.

 

6.6          
LISTING AND QUALIFICATION OF SHARES.  The Corporation, in its discretion, may postpone the issuance or delivery of Shares
upon any exercise of an Option or SAR or pursuant to an Award of Restricted Stock or Phantom Stock Units until completion of such stock
exchange listing or other qualification of such shares under any state or federal law, rule or regulation as the Corporation may
consider appropriate, and may require any Participant, Beneficiary or legal representative to make such representations and furnish such
information as it may consider appropriate in connection with the issuance or delivery of the Shares in compliance with applicable laws,
rules and regulations.

 

6.7          
WITHHOLDING TAXES.  The Corporation may make such provisions and take such steps as it may deem necessary or appropriate
for the withholding of all federal, state and local taxes required by law to be withheld with respect to Awards granted pursuant to the
Plan including, but not limited to (i) accepting a remittance from the Participant in cash, or, in the Committee’s sole discretion,
in Mature Shares, (ii) deducting the amount required to be withheld from any other amount then or thereafter payable by the Corporation
or Subsidiary to a Participant, Beneficiary or legal representative or from any Shares due to the Participant under the Plan, (iii) requiring
a Participant, Beneficiary or legal representative to pay to the Corporation the amount required to be withheld as a condition of releasing
Shares, or (iv) any combination of the foregoing. In addition, subject to such rules and regulations as the Committee shall
from time to time establish, Participants shall be permitted to satisfy federal, state and local taxes, if any, imposed upon the payment
of Awards in Shares at a rate up to such Participant’s maximum marginal tax rate with respect to each such tax by (A) irrevocably
electing to have the Corporation deduct from the number of Shares otherwise deliverable in payment of an Award such number of Shares as
shall have a value equal to the amount of tax to be withheld, (B) delivering to the Corporation such portion of the Shares delivered
in payment of the Award as shall have a value equal to the amount of tax to be withheld, or (C) delivering to the Corporation such
number of Mature Shares or combination of Mature Shares and cash as shall have a value equal to the amount of tax to be withheld.

 

6.8          
NON-TRANSFERABILITY/DESIGNATION AND CHANGE OF BENEFICIARY.

 

(a)          
Transferability Restrictions.  Unless otherwise provided in an Award Agreement, an Award granted hereunder shall not be
assignable or transferable other than by will or by the laws of descent and distribution and may be exercised during the Participant’s
lifetime only by the Participant or his or her guardian or legal representative, except that a Participant may, if permitted by the Committee,
in its sole discretion, transfer an Award other than an Incentive Stock Option, or any portion thereof, to one or more members of the
Participant’s Immediate Family, or one or more trusts for the benefit of such family members or partnerships in which such family
members and/or trusts are the only partners, or a charitable organization or foundation selected by the Participant. In the case of a
transfer of Restricted Stock or Phantom Stock Units hereunder, the terms and conditions of the Restricted Period and Restrictions, if
any, shall continue to apply to the Permitted Transferee of such Shares or Units, as applicable. In the case of a transfer of an Option
or SAR hereunder, the exercisability of such transferred Option or SAR, as applicable, shall continue to apply to the Permitted Transferee.

 

(b)          
Beneficiary Designations.  Each Participant shall file with the Committee a written designation of one or more persons
as the Beneficiary who shall be entitled to receive the amount, if any, payable under the Plan upon his or her death. A Participant may,
from time to time, revoke or change his or her Beneficiary designation without the consent of any prior Beneficiary by filing a new designation
with the Committee. The last such designation received by the Committee shall be controlling; provided, however, that no designation,
or change or revocation thereof, shall be effective unless received by the Committee prior to the Participant’s death, and in no
event shall it be effective as of a date prior to such receipt.

 

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6.9          
PAYMENTS TO PERSONS OTHER THAN A PARTICIPANT.  If the Committee shall find that any person to whom any amount is payable
under the Plan is unable to care for his or her affairs because of illness or accident, or is a minor, or has died, then any payment due
to such person or his or her estate (unless a prior claim has been made by a duly appointed legal representative), may, if the Committee
so directs the Corporation, be paid to his or her spouse, a child, a relative, an institution maintaining or having custody of such person,
or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment. Any such
payment shall be a complete discharge of the liability of the Committee and the Corporation therefor.

 

6.10         NO LIABILITY OF COMMITTEE MEMBERS.  No member of the Committee shall be personally liable by reason of any contract or
other instrument executed by such member or on his or her behalf in his or her capacity as a member of the Committee nor for any mistake
of judgment made in good faith, and the Corporation shall indemnify and hold harmless each employee, officer or Director of the Corporation
to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against any cost
or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Board) arising
out of any act or omission to act in connection with the Plan unless arising out of such person’s own fraud or bad faith. The indemnification
provided for in this Section shall be in addition to any rights of indemnification such Committee member has as a director or officer
pursuant to law, under the Certificate of Incorporation or By-Laws of the Corporation.

 

6.11         AMENDMENT OR TERMINATION.  Except as to matters that in the opinion of the Corporation’s legal counsel require shareholder
approval, any provision of the Plan may be modified as to a Participant by an individual written agreement approved by the Committee.
The Board may, with prospective or retroactive effect, amend, suspend or terminate the Plan or any portion thereof at any time; provided,
however, that (i) no amendment that would materially increase the cost of the Plan to the Corporation may be made by the Board without
the approval of the shareholders of the Corporation and (ii) no amendment, suspension or termination of the Plan shall deprive any
Participant of any rights to Awards previously made under the Plan without his or her written consent. Subject to earlier termination
pursuant to the provisions of this Section, and unless the shareholders of the Corporation shall have approved an extension of the Plan
beyond such date, the Plan shall terminate and no further Awards shall be made under the Plan after the 10th anniversary of the effective
date of the Plan specified in Subsection 1.1.

 

6.12         GOVERNING LAW.  The Plan shall be governed by and construed in accordance with the laws of the State of Maryland, without
reference to the principles of conflicts of law thereof.

 

6.13         NON-UNIFORM DETERMINATIONS.  The Committee’s determinations under the Plan need not be uniform and may be made
by the Committee selectively among persons who receive, or are eligible to receive, Awards whether or not such persons are similarly situated.
Without limiting the generality of the foregoing, the Committee shall be entitled, to enter into non-uniform and selective Award Agreements,
including, but not limited to, (a) the identity of the Participant, (b) the terms and provisions of Awards, and (c) the
treatment of Terminations.

 

6.14         NO ILLEGAL TRANSACTIONS.  The Plan and all Awards granted pursuant to it are subject to all applicable laws and regulations.
Notwithstanding any provision of the Plan or any Award, Participants shall not be entitled to exercise, or receive benefits under, any
Award, and the Corporation shall not be obligated to deliver any Shares or deliver any benefits to a Participant, if such exercise or
delivery would constitute a violation by the Participant or the Corporation of any applicable law or regulation.

 

6.15         SEVERABILITY.  If any part of the Plan is declared by any court of governmental authority to be unlawful or invalid, such
unlawfulness or invalidity shall not invalidate any other part of the Plan. Any Section or part of a Section so declared to
be unlawful or invalid shall, if possible, be construed in manner which will give effect to the terms of such Section to the fullest
extent possible while remaining lawful and valid.

 

    16

     

    

 

6.16         HEADINGS.  Headings are included for the convenience of reference only and shall not be used in the interpretation or
construction of any such provision contained in the Plan.

 

6.17         SECTION 409A.  It is the Corporation’s intent that any Awards granted under this Plan are structured to be
exempt from Section 409A of the Code, including all Treasury Regulations and other guidance issuance pursuant thereto (“Section 409A”)
or are structured to comply with the requirements of deferred compensation subject to Section 409A.  Notwithstanding any contrary
provision of the Plan or any Award, the following provisions shall apply to any Award in a manner consistent with such intent.

 

(a)            
For purposes of this Section 6.17, an Award shall constitute a “409A Award”  if and to the extent either:

 

(i)             
it is an Award (other than an Option, SAR, or Restricted Stock) that (A) is not “subject to a substantial risk of forfeiture”
as defined in Section 409A (by reason of the Participant having attained eligibility for Retirement or otherwise), and (B) (1) that
is actually settled after March 15 of the year following the year in which the Award ceases to be subject to a substantial risk of
forfeiture or (2) that the terms of the Plan or the Award provide will be settled after such March 15 or upon or after the occurrence
of any event that may occur after such March 15; or

 

(ii)           
the Committee determines that the Award otherwise constitutes deferred compensation as defined in Section 409A.

 

(b)          
  If any amount becomes payable under any 409A Award by reason of a Participant’s Termination, and such Participant incurs
a Termination as set forth in the Plan or the Award that is not a “separation from service,” as defined by Section 409A,
then the Participant’s right to such payment, shall be vested on the date of the Termination to the extent provided by the Plan
or Award Agreement, but payment shall be deferred until the earliest of (i) the date the Participant incurs such a separation from
service (or six months thereafter if and to the extent required by Section 6.17(d)), (ii) the date that a “change in control
event” as defined in Section 409A occurs with respect to the Participant, (iii) the Participant’s death, or (iv) if
the terms of the Award provide for payment upon a specific vesting date, such specific vesting date.

 

(c)           
If any amount becomes payable under any 409A Award by reason of a Change in Control, and a Change in Control occurs as defined
by the Plan or the Award that is not a “change in control event,” as defined by Section 409A, with respect to such Participant,
then the Participant’s right to such payment shall be vested on the date of the Change in Control to the extent provided in the
Plan or Award Agreement, and the amount of such payment shall be determined as of such date, but payment shall be deferred until the earliest
of (i) the date on which a change in control event occurs with respect to the Participant, (ii) the date on which the Participant
incurs a separation from service (or six months thereafter to the extent required by Section 6.17(d)), (iii) the Participant’s
death, or (iv) if the terms of the Award provide for payment upon a specific vesting date, such specific vesting date.

 

(d)          
  No amount that becomes payable under any 409A Award by reason of a Participant’s separation from service (as determined after
the application of Section 6.17(b) and (c)) will be made to a Participant who is a “specified employee” (as defined
by Section 409A) until the earlier of: (i) the first day of the seventh month following the month that includes the Participant’s
separation from service, or (ii) the Participant’s date of death.

 

(e)           
To the extent that payment of any amount of a 409A Award is required to be deferred to a later date (the “409A Deferral Date”)
by reason of Section 409A, all amounts that would otherwise have been paid prior to the 409A Deferral Date shall be paid in a single
lump sum on the first business day following the 409A Deferral Date, and the Committee may, in its sole discretion (but shall in no event
be required to) permit an earlier payment to a Participant to the extent necessary to alleviate a “severe financial hardship”
resulting from an “unforeseeable emergency,” all as defined in Section 409A.

 

(f)          
  For purposes of Section 409A, each “payment” (as defined by Section 409A) made under this Plan shall be considered
a “separate payment” for purposes of Section 409A.

 

    17

     

    

 

(g)           
Any payment with respect to a 409A Award that becomes payable upon a specified date, as defined in the Plan or Award, shall be
paid as soon as practical after such date, but not later than the last day of the calendar year in which the date occurs.

 

(h)           
Any election by a Participant to defer receipt of any amount payable with respect to a 409A Award shall be made only in accordance
with a written policy adopted by the Committee that satisfies all requirements of Section 409A.

 

(i)          
  Notwithstanding the Corporation’s intentions as set forth above, if any Award granted under this Plan would fail to meet
the requirements of Section 409A with respect to such Award, then such Award shall remain in effect and be subject to taxation in
accordance with Section 409A.  Neither the Corporation nor any member of the Committee shall have any liability for any tax
imposed on a Participant by Section 409A, and, if any tax is imposed on the Participant, the Participant shall have no recourse against
the Corporation or any member of the Committee for payment of any such tax.

 

6.18         CERTAIN FORFEITURE EVENTS.

 

(a)           
The Committee may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an
Award shall be subject to reduction, cancellation, forfeiture (including repurchase of Shares for nominal consideration), or recoupment
upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. 
Such events may include, but shall not be limited to, failure to remit the amounts necessary to satisfy the Participant’s tax withholding
obligations, termination of employment for Cause, termination of the Participant’s provision of services to the Corporation, Affiliate,
and/or Subsidiary, violation of material Corporation, Affiliate, and/or Subsidiary policies, breach of noncompetition, confidentiality,
or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business
or reputation of the Corporation, its Affiliates, and/or its Subsidiaries.

 

(b)           
If the Corporation is required to prepare an accounting restatement due to the material noncompliance of the Corporation, as a
result of misconduct, with any financial reporting requirement under the securities laws, if the Participant knowingly or grossly negligently
engaged in the misconduct, or knowingly or grossly negligently failed to prevent the misconduct, or if the Participant is one of the individuals
subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, the Participant shall, to the extent required
by Section 304 of the Sarbanes-Oxley Act of 2002, reimburse the Corporation the amount of any payment in settlement of an Award earned
or accrued during the twelve (12) month period following the first public issuance or filing with the United States Securities and Exchange
Commission (whichever just occurred) of the financial document embodying such financial reporting requirement.

 

(c)           
To the extent that any policy adopted by the Corporation in order to comply with regulations issued pursuant to Section 10D
of the Exchange Act, as required by Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, requires any Participant
to forfeit any Award, or repay any amount paid with respect to any Award, such policy shall be deemed incorporated into all outstanding
Awards to the extent required by such regulations, and all Participants subject to such regulations, by accepting any Award, shall be
deemed to have consented to the inclusion of provisions in their Award Agreement as determined by the Committee to be necessary or appropriate
to comply with such regulations.

 

    18Exhibit 4.2

 

INVESTORS’ RIGHTS AGREEMENT

 

THIS INVESTORS’ RIGHTS AGREEMENT
(this “Agreement”), is made as of the 5th day of August, 2020 (the “Effective Date”), by and among
Aerovate Therapeutics Inc., a Delaware corporation (the “Company”), and each of the investors listed on Schedule
A hereto, each of which is referred to in this Agreement as an “Investor” and any Additional Purchaser (as defined
in the Purchase Agreement) that becomes a party to this Agreement in accordance with Section 6.9 hereof.

 

RECITALS

 

WHEREAS, the Company and the Investors
are parties to that certain Series A Preferred Stock Purchase Agreement of even date herewith (the “Purchase Agreement”);
and

 

WHEREAS, in order to induce the
Company to enter into the Purchase Agreement and to induce the Investors to invest funds in the Company pursuant to the Purchase Agreement,
the Investors and the Company hereby agree that this Agreement shall govern the rights of the Investors to cause the Company to register
shares of Common Stock issuable to the Investors, to receive certain information from the Company, and to participate in future equity
offerings by the Company, and shall govern certain other matters as set forth in this Agreement;

 

NOW, THEREFORE, the parties hereby agree as follows:

 

		1.	Definitions. For purposes of this Agreement:

 

1.1           “Affiliate”
means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common
control with such Person, including without limitation any general partner, managing member, officer, director or trustee of such Person,
or any venture capital fund, investment fund, registered investment company, asset manager or investment adviser now or hereafter existing
that is controlled by one or more general partners, managing members or investment adviser of, or shares the same management company or
investment adviser with, such Person.

 

		1.2	“Board of Directors” means the board of directors of the Company.

 

1.3           “Certificate
of Incorporation” means the Company’s Amended and Restated Certificate of Incorporation, as amended and/or restated from
time to time.

 

1.4           “Common
Stock” means shares of the Company’s common stock, par value $0.0001 per share.

 

1.5           “Competitor”
means a Person engaged, directly or indirectly (including through any partnership, limited liability company, corporation, joint venture
or similar arrangement (whether now existing or formed hereafter)), in the development of inhalable formulations of imatinib for the treatment
of rare cardiopulmonary disease and any other business the Company may engage in from time to time, but shall not include any financial
investment firm or collective investment vehicle that, together with its Affiliates, holds less than twenty percent (20%) of the outstanding
equity of any Competitor and does not, nor do any of its Affiliates, have a right to designate any members of the board of directors of
any Competitor; provided that none of Sofinnova Venture Partners X, L.P. (“Sofinnova”), RA Capital Management,
L.P. (“RA Capital”), Osage University Partners III, L.P. (“OUP”), Atlas Venture Fund XII, L.P. (“Atlas”),
Cormorant Private Healthcare Fund II, LP (“Cormorant”), Citadel Multi-Strategy Equities Master Fund Ltd. (“Surveyor”),
or any of their Affiliates, shall be deemed to be a Competitor hereunder.

 

    	 

     

    

 

1.6           “Damages”
means any loss, damage, claim or liability (joint or several) to which a party hereto may become subject under the Securities Act,
the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability (or any action in respect
thereof) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in
any registration statement of the Company, including any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required to be stated
therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the
indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any
rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law.

 

1.7           “Derivative
Securities” means any securities or rights convertible into, or exercisable or exchangeable for (in each case, directly or indirectly),
Common Stock, including options and warrants.

 

1.8           “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

1.9           “Excluded
Registration” means (i) a registration relating to the sale or grant of securities to employees of the Company or a subsidiary
pursuant to a stock option, stock purchase, equity incentive or similar plan; (ii) a registration relating to an SEC Rule 145
transaction; (iii) a registration on any form that does not include substantially the same information as would be required to be
included in a registration statement covering the sale of the Registrable Securities; or (iv) a registration in which the only Common
Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered.

 

1.10         “Form S-1”
means such form under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently
adopted by the SEC.

 

1.11         “Form S-3”
means such form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently
adopted by the SEC that permits forward incorporation of substantial information by reference to other documents filed by the Company
with the SEC.

 

1.12         “GAAP”
means generally accepted accounting principles in the United States as in effect from time to time.

 

		1.13	“Holder” means any holder of Registrable Securities who is a party to this Agreement.

 

1.14        
 “Immediate Family Member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including, adoptive relationships, of a
natural person referred to herein.

 

1.15         “Initiating
Holders” means, collectively, Holders who properly initiate a registration request under this Agreement.

 

1.16         “IPO”
means the Company’s first underwritten public offering of its Common Stock under the Securities Act.

 

1.17         “Key
Employee” means any executive-level employee (including, division director and vice president-level positions) as well as any
employee who, either alone or in concert with others, develops, invents, programs, or designs any Company Intellectual Property (as defined
in the Purchase Agreement).

 

    2

     

    

 

1.18         “Major
Investor” means (i) each of Sofinnova, RA Capital, Blackwell Partners LLC – Series A, OUP, Atlas, Cormorant
and Surveyor, together with each of their Affiliates, for so long as any such named Investor and such Investor’s Affiliates hold
all shares of Registrable Securities purchased by such Investor and such Investor’s Affiliates pursuant to the Purchase Agreement,
and (ii) additionally, any Investor (including those Investors named in clause (i) hereof that no longer qualify to be Major
Investors pursuant to clause (i) hereof) that, individually or together with such Investor’s Affiliates, holds at least 1,000,000
shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification
effected after the date hereof), and, in each case, each Person to whom any of the rights of any such Investor are assigned pursuant to
Section 6.1.

 

1.19         “New
Securities” means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options,
or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable
into or exercisable for such equity securities.

 

1.20         “Person”
means any individual, corporation, partnership, trust, limited liability company, association or other entity.

 

1.21         “Qualified
Public Offering” means the closing of the sale of shares of Common Stock to the public at a price per share of at least $5.679
(prior to giving effect to underwrites discounts and commissions and subject to appropriate adjustment in the event of any stock dividend,
stock split, combination or other similar recapitalization with respect to the Common Stock), in a firm-commitment underwritten public
offering pursuant to an effective registration statement under the Securities Act resulting in at least $50,000,000 of gross proceeds
to the Company and in connection with such offering the Common Stock is listed for trading on the Nasdaq Stock Market's National Market,
the New York Stock Exchange or another exchange or marketplace approved the Board of Directors.

 

1.22         “Registrable
Securities” means (i) the Common Stock issuable or issued upon conversion of the Preferred Stock, excluding any Common
Stock issued upon conversion of the Series A Preferred Stock pursuant to the “Special Mandatory Conversion” provisions
in the Certificate of Incorporation; (ii) any Common Stock, or any Common Stock issued or issuable (directly or indirectly) upon
conversion and/or exercise of any other securities of the Company, acquired by the Investors after the date hereof, excluding any Common
Stock issued upon conversion of the Series A Preferred Stock pursuant to the “Special Mandatory Conversion” provisions
in the Certificate of Incorporation; and (iii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant,
right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of,
the shares referenced in clauses (i) and (ii) above; excluding in all cases, however, any Registrable Securities
sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to Subsection 6.1,
and excluding for purposes of Section 2 any shares for which registration rights have terminated pursuant to Subsection
2.13 of this Agreement. A Holder of Registrable Securities need not convert such Registrable Securities into Common Stock prior to
requesting registration hereunder but may make such request in contemplation of conversion of such Registrable Securities into Common
Stock prior to the effectiveness of such registration.

 

1.23         “Registrable
Securities then outstanding” means the number of shares determined by adding the number of shares of outstanding Common
Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly) pursuant to
then exercisable and/or convertible securities that are Registrable Securities.

 

    3

     

    

 

1.24         “Requisite
Holders” means the holders of at least sixty-five percent (65%) of the outstanding shares of Series A Preferred Stock (excluding
Pre-Purchased Shares (as defined in the Purchase Agreement) for so long as such shares remain Pre-Purchased Shares in accordance with
the terms and conditions of the Purchase Agreement), voting together as a single class on an as converted into Common Stock basis.

 

1.25         “Restricted
Securities” means the securities of the Company required to be notated with the legend set forth in Subsection 2.12(b) hereof.

 

		1.26	“SEC” means the Securities and Exchange Commission.

 

		1.27	“SEC Rule 144” means Rule 144 promulgated
by the SEC under the Securities Act. Securities Act.

 

		1.28	“SEC Rule 145” means Rule 145 promulgated by the SEC under the

 

 1.29         “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

1.30         “Selling
Expenses” means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of Registrable
Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel
borne and paid by the Company as provided in Subsection 2.6.

 

1.31         “Series A
Director” means any director of the Company that the holders of record of the Series A Preferred Stock are entitled to
elect, exclusively as a separate class, pursuant to the Certificate of Incorporation.

 

1.32         “Series A
Preferred Stock” means shares of the Company’s Series A Preferred Stock, par value $0.0001 per share.

 

1.33         “Series Seed
Preferred Stock” means shares of the Company’s Series Seed Preferred Stock, par value $0.0001 per share.

 

		2.	Registration Rights. The Company covenants and agrees as follows:

 

		2.1	Demand Registration.

 

(a)            Form S-1
Demand. If at any time after the earlier of (i) three (3) years after the date of this Agreement or (ii) one
hundred eighty (180) days after the effective date of the registration statement for the IPO, the Company receives a request from
Requisite Holders that the Company file a Form S-1 registration statement with respect to at least thirty- five percent (35%)
of the Registrable Securities then outstanding (or a lesser percent if the anticipated aggregate offering price, net of Selling
Expenses, would exceed $5 million), then the Company shall (x) within ten (10) days after the date such request is given,
give notice thereof (the “Demand Notice”) to all Holders other than the Initiating Holders; and (y) as soon
as practicable, and in any event within sixty (60) days after the date such request is given by the Initiating Holders, file a
Form S-1 registration statement under the Securities Act covering all Registrable Securities that the Initiating Holders
requested to be registered and any additional Registrable Securities requested to be included in such registration by any other
Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is
given, and in each case, subject to the limitations of Subsections 2.1(c) and 2.3.

 

    4

     

    

 

(b)
            Form S-3 Demand. If at any time when it is eligible to
use a Form S-3 registration statement, the Company receives a request from the Requisite Holders that the Company file a Form S-3
registration statement with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate offering price,
net of Selling Expenses, of at least $1 million, then the Company shall (i) within ten (10) days after the date such request
is given, give a Demand Notice to all Holders other than the Initiating Holders; and (ii) as soon
as practicable, and in any event within forty-five (45) days after the date such request is given by the Initiating Holders, file a Form S-3
registration statement under the Securities Act covering all Registrable Securities requested to be included in such registration by
any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice
is given, and in each case, subject to the limitations of Subsections 2.1(c) and 2.3.

 

(c)            Notwithstanding
the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this Subsection 2.1 a
certificate signed by the Company’s chief executive officer stating that in the good faith judgment of the Board of Directors
it would be materially detrimental to the Company and its stockholders for such registration statement to either become effective or
remain effective for as long as such registration statement otherwise would be required to remain effective, because such action
would (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving
the Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for
preserving as confidential; or (iii)  render
the Company unable to comply with requirements under the Securities Act or Exchange Act, then the Company shall have the right to
defer taking action with respect to such filing, and any time periods with respect to filing or effectiveness thereof shall be
tolled correspondingly, for a period of not more than thirty (30) days after the request of the Initiating Holders is given; provided, however,
that the Company may not invoke this right more than once in any twelve (12) month period.

 

(d)            The
Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Subsection
2.1(a) (i) during the period that is sixty (60) days before the Company’s good faith estimate of the date of
filing of, and ending on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration, provided
that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become
effective; (ii) after the Company has effected two registrations pursuant to Subsection 2.1(a); or (iii) if the
Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3
pursuant to a request made pursuant to Subsection 2.1(b). The Company shall not be obligated to effect, or to take any action
to effect, any registration pursuant to Subsection 2.1(b) (i) during the period that is thirty (30) days before the
Company’s good faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the effective date
of, a Company-initiated registration, provided that the Company is actively employing in good faith commercially reasonable
efforts to cause such registration statement to become effective; or (ii) if the Company has effected two registrations
pursuant to Subsection 2.1(b) within the twelve (12) month period immediately preceding the date of such request. A
registration shall not be counted as “effected” for purposes of this Subsection 2.1(d) until such time as
the applicable registration statement has been declared effective by the SEC, unless the Initiating Holders withdraw their request
for such registration, elect not to pay the registration expenses therefor, and forfeit their right to one demand registration
statement pursuant to Subsection 2.6, in which case such withdrawn registration statement shall be counted as
 “effected” for purposes of this Subsection 2.1(d); provided, that if such withdrawal is during a period
the Company has deferred taking action pursuant to Subsection 2.1(c), then the Initiating Holders may withdraw their request
for registration and such registration will not be counted as “effected” for purposes of this Subsection
2.1(d).

 

    5

     

    

 

2.2            Company
Registration. If the Company proposes to register (including, for this purpose, a registration effected by the Company for
stockholders other than the Holders) any of its securities under the Securities Act in connection with the public offering of such
securities solely for cash (other than in an Excluded Registration), the Company shall, at such time, promptly give each Holder
notice of such registration. Upon the request of each Holder given within twenty (20) days after such notice is given by the
Company, the Company shall, subject to the provisions of Subsection 2.3, cause to be registered all of the Registrable
Securities that each such Holder has requested to be included in such registration. The Company shall have the right to terminate or
withdraw any registration initiated by it under this Subsection
2.2  before
the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in such
registration. The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance
with Subsection 2.6.

 

		2.3	Underwriting Requirements.

 

(a)            If,
pursuant to Subsection 2.1, the Initiating Holders intend to distribute the Registrable Securities covered by their request
by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to Subsection 2.1, and
the Company shall include such information in the Demand Notice. The underwriter(s) will be selected by the Initiating Holders,
subject only to the reasonable approval of the Board of Directors. In such event, the right of any Holder to include such
Holder’s Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such
underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in Subsection
2.4(e)) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting.
Notwithstanding any other provision of this Subsection 2.3, if the underwriter(s) advise(s) the Initiating Holders
in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders shall
so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable
Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the
Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder or in such
other proportion as shall mutually be agreed to by all such selling Holders; provided, however, that the number of
Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other securities are
first entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with the above provisions, the
Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.
For purposes of the provision in this Subsection 2.3(a) concerning apportionment, for any selling Holder that is a
partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and
Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired
members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single “selling Holder,”
and any pro rata reduction with respect to such “selling Holder” shall be based upon the aggregate number of Registrable
Securities owned by all Persons included in such “selling Holder,” as defined in this sentence.

 

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(b)            In
connection with any offering involving an underwriting of shares of the Company’s capital stock pursuant to Subsection
2.2, the Company shall not be required to include any of the Holders’ Registrable Securities in such underwriting unless
the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such
quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company. If
the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds
the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is
compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such
securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not
jeopardize the success of the offering. If the underwriters determine that less than all of the Registrable Securities requested to
be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be
allocated among the selling Holders in proportion (as nearly as practicable to) the number of Registrable Securities owned by each
selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders. To facilitate the allocation
of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any
Holder to the nearest one hundred (100) shares. Notwithstanding the foregoing, in no event shall (i) the
number of Registrable Securities included in the offering be reduced unless all other securities (other than securities to be sold
by the Company) are first entirely excluded from the offering, or (ii) the number of Registrable Securities included in the
offering be reduced below thirty percent (30%) of the total number of securities included in such offering, unless such offering is
the IPO, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no
other stockholder’s securities are included in such offering. For purposes of the provision in this Subsection
2.3(b) concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation,
the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate
Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the
foregoing Persons, shall be deemed to be a single “selling Holder,” and any pro rata reduction with respect to such
 “selling Holder” shall be based upon the aggregate number of Registrable Securities owned by all Persons included in
such “selling Holder,” as defined in this sentence.

 

(c)            For
purposes of Subsection 2.1, a registration shall not be counted as “effected” if, as a result of an exercise of
the underwriter’s cutback provisions in Subsection 2.3(a), fewer than fifty percent (50%) of the total number of
Registrable Securities that Holders have requested to be included in such registration statement are actually included.

 

2.4            Obligations
of the Company. Whenever required under this Section 2 to effect the registration of any Registrable Securities, the
Company shall, as expeditiously as reasonably possible:

 

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(a)            prepare
and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable
efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the
Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty
(120) days or, if earlier, until the distribution contemplated in the registration statement has been completed; provided, however,
that (i) such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder
refrains, at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities
included in such registration, and (ii) in the case of any registration of Registrable Securities on Form S-3 that are
intended to be offered on a continuous or delayed basis, subject to compliance with applicable SEC rules, such one hundred twenty
(120) day period shall be extended for up to sixty (60) days, if necessary, to keep the registration statement effective until all
such Registrable Securities are sold;

 

(b)            prepare
and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such
registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered
by such registration statement;

 

(c)            furnish
to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act,
and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;

 

(d)            use
its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities
or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided that the Company shall
not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless
the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

 

(e)            in
the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary
form, with the underwriter(s) of such offering;

 

(f)             notify
each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required
to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such 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 not misleading in the light of the circumstances then existing. As promptly as practicable
thereafter, the Company will prepare and file with the SEC, and furnish without charge to the appropriate Holders and managing underwriter(s),
if any, an amendment or supplement to such registration statement or prospectus in order to cause such registration statement or prospectus
not to include 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 not misleading in the light of the circumstances then existing and will furnish such copies thereof as the
Holders or any underwriters may reasonably request;

 

(g)            use
its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a
national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued
by the Company are then listed;

 

    8

     

    

 

(h)            provide
a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all
such Registrable Securities, in each case not later than the effective date of such registration;

 

(i)             promptly
make available for inspection by the selling Holders, any managing underwriter(s) participating in any disposition pursuant to such
registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders,
all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company’s officers,
directors, employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney,
accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement
and to conduct appropriate due diligence in connection therewith;

 

(j)             notify
each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared
effective or a supplement to any prospectus forming a part of such registration statement has been filed; and

 

(k)            after
such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement
such registration statement or prospectus.

 

(l)             make
generally available to its security holders, and deliver to each Holder participating in the registration statement, an earnings statement
of the Company that will satisfy the provisions of Section 11(a) of the Securities Act covering a period of twelve (12) months
beginning after the effective date of such registration statement as soon as reasonably practicable after the termination of such twelve
(12)-month period; and

 

(m)            use
its commercially reasonable efforts to furnish, on the date that such Registrable Securities are delivered to the underwriters for sale,
if such securities are being sold through underwriters, (i) an opinion, dated as of such date, of the counsel representing the Company
for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering,
addressed to the underwriters, if any, and (ii) a letter, dated as of such date, from the independent certified public accountants
of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten
public offering addressed to the underwriters.

 

In addition, the Company shall ensure
that, at all times after any registration statement covering a public offering of securities of the Company under the Securities Act shall
have become effective, its insider trading policy shall provide that the Company’s directors may implement a trading program under
Rule 10b5-1 of the Exchange Act.

 

2.5            Furnish
Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 2
with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding
itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to
effect the registration of such Holder’s Registrable Securities.

 

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2.6            Expenses
of Registration. All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications
pursuant to Section 2, including all registration, filing, and qualification fees; printers’ and accounting fees; fees
and disbursements of counsel for the Company; and the reasonable fees and disbursements of one counsel for the selling Holders (“Selling
Holder Counsel”), shall be borne and paid by the Company; provided, however, that the Company shall not
be required to pay for any expenses of any registration proceeding begun pursuant to Subsection 2.1 if the registration request
is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all
selling Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn
registration), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one registration pursuant
to Subsections 2.1(a) or 2.1(b), as the case may be; provided further that if, at the time of such withdrawal,
the Holders shall have learned of a material adverse change in the condition, business, or prospects of the Company from that known to
the Holders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information
then the Holders shall not be required to pay any of such expenses and shall not forfeit their right to one registration pursuant to
Subsections 2.1(a) or 2.1(b). All Selling Expenses relating to Registrable Securities registered pursuant to this
Section 2 shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered
on their behalf.

 

2.7            Delay
of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration
pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of
this Section 2.

 

2.8            Indemnification.
If any Registrable Securities are included in a registration statement under this Section 2:

 

(a)            To
the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers, directors,
and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in the Securities
Act) for each such Holder; and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or
the Exchange Act, against any Damages, and the Company will pay to each such Holder, underwriter, controlling Person, or other aforementioned
Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from
which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this
Subsection 2.8(a) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected
without the consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed nor shall the Company be
liable for any Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity
with written information furnished by or on behalf of any such Holder, underwriter, controlling Person, or other aforementioned Person
expressly for use in connection with such registration.

 

(b)            To
the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and each
of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the Company
within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined in the
Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such
underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based upon
actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling
Holder expressly for use in connection with such registration; and each such selling Holder will pay to the Company and each
other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending
any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the
indemnity agreement contained in this Subsection 2.8(b) shall not apply to amounts paid in settlement of any such claim
or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld,
conditioned or delayed; and provided further that in no event shall the aggregate amounts payable by any Holder by way of
indemnity or contribution under Subsections 2.8(b) and 2.8(d) exceed the proceeds from the offering received
by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such
Holder.

 

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(c)            Promptly
after receipt by an indemnified party under this Subsection 2.8 of notice of the commencement of any action (including any governmental
action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is
to be made against any indemnifying party under this Subsection 2.8, give the indemnifying party notice of the commencement thereof.
The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate
jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory
to the parties; provided, however, that an indemnified party (together with all other indemnified parties that may be represented
without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying
party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual
or potential differing interests between such indemnified party and any other party represented by such counsel in such action. The failure
to give notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying
party of any liability to the indemnified party under this Subsection 2.8, to the extent that such failure materially prejudices
the indemnifying party’s ability to defend such action. The failure to give notice to the indemnifying party will not relieve it
of any liability that it may have to any indemnified party otherwise than under this Subsection 2.8.

 

(d)            To
provide for just and equitable contribution to joint liability under the Securities Act in any case in which either: (i) any
party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Subsection 2.8 but
it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of
time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case,
notwithstanding the fact that this Subsection 2.8 provides for indemnification in such case, or (ii) contribution
under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this Subsection
2.8, then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or
expenses to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative
fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions
that resulted in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations.
The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things,
whether the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates
to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge,
access to information, and opportunity to correct or prevent such statement or omission; provided, however, that, in
any such case (x) no Holder will be required to contribute any amount in excess of the public offering price of all such
Registrable Securities offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution
from any Person who was not guilty of such fraudulent misrepresentation; and provided further that in no event shall a
Holder’s liability pursuant to this Subsection 2.8(d), when combined with the amounts paid or payable by such Holder
pursuant to Subsection 2.8(b), exceed the proceeds from the offering received by such Holder (net of any Selling Expenses
paid by such Holder), except in the case of willful misconduct or fraud by such Holder.

 

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(e)            Notwithstanding
the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into
in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control.

 

(f)             Unless
otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations of
the Company and Holders under this Subsection 2.8 shall survive the completion of any offering of Registrable Securities in a registration
under this Section 2, and otherwise shall survive the termination of this Agreement.

 

2.9            Reports
Under Exchange Act. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or regulation
of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a
registration on Form S-3, the Company shall:

 

(a)             make
and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times after
the effective date of the registration statement filed by the Company for the IPO;

 

(b)            use
commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under
the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and

 

(c)            furnish
to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a
written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90)
days after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange
Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose
securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); (ii) a copy of the most recent
annual or quarterly report of the Company and such other reports and documents so filed by the Company; and (iii) such other
information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling
of any such securities without registration (at any time after the Company has become subject to the reporting requirements under
the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

 

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2.10          Limitations
on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior written consent
of the Requisite Holders, enter into any agreement with any holder or prospective holder of any securities of the Company that would
(i) provide to such holder or prospective holder the right to include securities in any registration on other than either a pro
rata basis with respect to the Registrable Securities or on a subordinate basis after all Holders have had the opportunity to include
in the registration and offering all shares of Registrable Securities that they wish to so include; or (ii) allow such holder or
prospective holder to initiate a demand for registration of any securities held by such holder or prospective holder; provided
that this limitation shall not apply to Registrable Securities acquired by any additional Investor that becomes a party to this Agreement
in accordance with Subsection 6.9.

 

2.11          “Market
Stand-off” Agreement. Each Holder hereby agrees that it will not, without the prior written consent of the managing underwriter,
during the period commencing on the date of the final prospectus relating to the IPO, and ending on the date specified by the Company
and the managing underwriter (such period not to exceed one hundred eighty (180) days), (i) lend; offer; pledge; sell; contract
to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase;
or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable
or exchangeable (directly or indirectly) for Common Stock held immediately prior to the effective date of the registration statement
for the IPO or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled
by delivery of Common Stock or other securities, in cash, or otherwise. The foregoing provisions of this Subsection 2.11 shall
apply only to the IPO, and shall not apply to distributions to current or former partners, members or stockholders of a Holder or to
the transfer of any shares owned by a Holder in the Company to its Affiliates or any of the Holder’s stockholders, members, partners
or other equity holders; provided that the Affiliate, stockholder member, partner or other equity holder of the Holder agrees to be bound
in writing by the restrictions set forth herein, shall not apply to transactions or announcements relating to: (1) securities acquired
in the IPO or (2) securities acquired in open market transactions from and after the IPO, shall not apply to the sale of any shares
to an underwriter pursuant to an underwriting agreement, or the transfer of any shares to any trust for the direct or indirect benefit
of the Holder or the immediate family of the Holder, provided that the trustee of the trust agrees to be bound in writing by the
restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, and shall
be applicable to the Holders only if all officers and directors are subject to the same restrictions and the Company uses commercially
reasonable efforts to obtain a similar agreement from all stockholders individually, and together with their Affiliates, owning one percent
(1%) or more of the Company’s outstanding Common Stock (after giving effect to conversion into Common Stock of all outstanding
Preferred Stock). The underwriters in connection with such registration are intended third-party beneficiaries of this Subsection
2.11 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Holder
further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that
are consistent with this Subsection 2.11 or that are necessary to give further effect thereto. Any discretionary waiver or termination
of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Holders subject
to such agreements, based on the number of shares subject to such agreements.

 

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		2.12	Restrictions on Transfer.

 

(a)            The
Preferred Stock, the Registrable Securities and any other shares of Common Stock issued upon conversion of the Preferred Stock shall not
be sold, pledged, or otherwise transferred, and the Company shall not recognize and shall issue stop- transfer instructions to its transfer
agent with respect to any such sale, pledge, or transfer, except upon the conditions specified in this Agreement, which conditions are
intended to ensure compliance with the provisions of the Securities Act. A transferring Holder will cause any proposed purchaser, pledgee,
or transferee of the Preferred Stock, the Registrable Securities and any other shares of Common Stock issued upon conversion of the Preferred
Stock held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions specified in this
Agreement.

 

(b)            Each
certificate, instrument, or book entry representing (i) the Preferred Stock, (ii) the Registrable Securities, (iii) any
other shares of Common Stock issued upon conversion of the Preferred Stock, and (iv) any other securities issued in respect of the
securities referenced in clauses (i), (ii) and (iii), upon any stock split, stock dividend, recapitalization, merger, consolidation,
or similar event, shall (unless otherwise permitted by the provisions of Subsection 2.12(c)) be notated with a legend substantially
in the following form:

 

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR
INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

 

THE SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED
ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY
OF THE COMPANY.

 

The Holders consent to the Company making
a notation in its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions
on transfer set forth in this Subsection 2.12.

 

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(c)            The
holder of such Restricted Securities, by acceptance of ownership thereof, agrees to comply in all respects with the provisions of
this Section 2. Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect a
registration statement under the Securities Act covering the proposed transaction, the Holder thereof shall give notice to the
Company of such Holder’s intention to effect such sale, pledge, or transfer. Each such notice shall describe the manner and
circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company, shall be
accompanied at such Holder’s expense by either (i) a written opinion of legal counsel who shall, and whose legal opinion
shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be
effected without registration under the Securities Act; (ii) a “no action” letter from the SEC to the effect that
the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation by the
staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to
the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without
registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or
transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company. The Company will
not require such a legal opinion or “no action” letter (x) in any transaction in compliance with SEC Rule 144;
(y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no
consideration or (z) in any internal transaction in which such Holder transfers Restricted Securities to an Affiliate of such
Holder that is an entity and that is ultimately controlled by the same parent company as the Holder (or is the ultimate parent
company of the Holder); provided that in the case of clauses (y) and (z) each transferee agrees in writing to be
subject to the terms of this Subsection 2.12. Each certificate, instrument, or book entry representing the Restricted
Securities transferred as above provided shall be notated with, except if such transfer is made pursuant to SEC Rule 144, the
appropriate restrictive legend set forth in Subsection 2.12(b), except that such certificate, instrument, or book entry shall
not be notated with such restrictive legend if, in the opinion of counsel for such Holder and the Company, such legend is not
required in order to establish compliance with any provisions of the Securities Act. Notwithstanding the foregoing, the Company shall
be obligated to reissue promptly unlegended certificates or book entries at the request of any Holder thereof if the Company has
completed its IPO and the Holder shall have obtained an opinion of counsel (which counsel may be counsel to the Company) to the
effect that the securities proposed to be disposed of may lawfully be so disposed of without registration, qualification and legend,
provided that the second legend listed above shall be removed only at such time as the Holder of such certificate is no longer
subject to any restrictions hereunder.

 

2.13         Termination
of Registration Rights. The right of any Holder to request registration or inclusion of Registrable Securities in any registration
pursuant to Subsections 2.1 or 2.2 shall terminate upon the earliest to occur of:

 

(a)            the
closing of a Deemed Liquidation Event, as such term is defined in the Certificate of Incorporation; or

 

(b)            such
time after consummation of the Qualified Public Offering as Rule 144 or another similar exemption under the Securities Act is available
for the sale of all of such Holder’s shares without limitation during a three-month period without registration.

 

		3.	Information and Observer Rights.

 

3.1            Delivery
of Financial Statements. The Company shall deliver to each Major Investor, provided that the Board of Directors has not reasonably
determined that such Major Investor is a Competitor:

 

(a)            as
soon as practicable, but in any event within one hundred eighty (180) days after the end of each fiscal year of the Company (i) a
balance sheet as of the end of such year, (ii) statements of income and of cash flows for such year, and a comparison between (x) the
actual amounts as of and for such fiscal year and (y) the comparable amounts for the prior year and as included in the Budget (as
defined in Subsection 3.1(d) for such year, with an explanation of any material differences between such amounts and a schedule
as to the sources and applications of funds for such year, and (iii) a statement of stockholders’ equity as of the end of
such year, all such financial statements audited and certified by independent public accountants of regionally recognized standing selected
by the Company;

 

(b)            as
soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of each
fiscal year of the Company, unaudited statements of income and cash flows for such fiscal quarter, and an unaudited balance
sheet and a statement of stockholders’ equity as of the end of such fiscal quarter, all prepared in accordance with GAAP
(except that such financial statements may (i) be subject to normal year- end audit adjustments; and (ii) not contain all
notes thereto that may be required in accordance with GAAP);

 

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(c)      
     as soon as practicable, but in any event within forty-five (45) days after the
end of each of the first three (3) quarters of each fiscal year of the Company, a statement showing the number of shares of
each class and series of capital stock and securities convertible into or exercisable for shares of capital stock outstanding at the
end of the period, the Common Stock issuable upon conversion or exercise of any outstanding securities convertible or exercisable
for Common Stock and the exchange ratio or exercise price applicable thereto, and the number of shares of issued stock options and
stock options not yet issued but reserved for issuance, if any, all in sufficient detail as to permit the Major Investors to
calculate their respective percentage equity ownership in the Company, and certified by the chief financial officer or chief
executive officer of the Company as being true, complete, and correct;

 

(d)           as
soon as practicable, but in any event thirty (30) days before the end of each fiscal year, a budget and business plan for the next fiscal
year (collectively, the “Budget”), approved by the Board of Directors and prepared on a monthly basis, including balance
sheets, income statements, and statements of cash flow for such months and, promptly after prepared, any other budgets or revised budgets
prepared by the Company; and

 

(e)           such
other information relating to the financial condition, business, prospects, or corporate affairs of the Company as any Major Investor
may from time to time reasonably request; provided, however, that the Company shall not be obligated under this Subsection
3.1 to provide information (i) that the Company reasonably determines in good faith to be a trade secret or confidential information
(unless covered by an enforceable confidentiality agreement, in a form reasonably acceptable to the Company); or (ii) the disclosure
of which would adversely affect the attorney-client privilege between the Company and its counsel.

 

If, for any period, the Company has any
subsidiary whose accounts are consolidated with those of the Company, then in respect of such period the financial statements delivered
pursuant to the foregoing sections shall be the consolidated and consolidating financial statements of the Company and all such consolidated
subsidiaries.

 

Notwithstanding anything else in this
Subsection 3.1 to the contrary, the Company may cease providing the information set forth in this Subsection 3.1 during
the period starting with the date thirty (30) days before the Company’s good-faith estimate of the date of filing of a registration
statement if it reasonably concludes it must do so to comply with the SEC rules applicable to such registration statement and related
offering; provided that the Company’s covenants under this Subsection 3.1 shall be reinstated at such time as the
Company is no longer actively employing its commercially reasonable efforts to cause such registration statement to become effective.

 

3.2           Inspection.
The Company shall permit each Major Investor (provided that the Board of Directors has not reasonably determined that such
Major Investor is a Competitor), at such Major Investor’s expense, to visit and inspect the Company’s properties;
examine its books of account and records; and discuss the Company’s affairs, finances, and accounts with its officers, during
normal business hours of the Company as may be reasonably requested by the Major Investor; provided, however, that the
Company shall not be obligated pursuant to this Subsection 3.2 to provide access to any information that it reasonably and in good
faith considers to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in
form reasonably acceptable to the Company) or the disclosure of which would adversely affect the attorney-client privilege between
the Company and its counsel.

 

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3.3           Observer
Rights. As long as each of RA Capital, Sofinnova, Surveyor, and Atlas Venture, in each case together with its Affiliates, holds any
shares of Series A Preferred Stock or shares of Common Stock issued upon the conversion of Series A Preferred Stock (excluding
any Common Stock issued upon conversion of the Series A Preferred Stock pursuant to the “Special Mandatory Conversion”
provisions in the Certificate of Incorporation), the Company shall invite a representative of each of RA Capital, Sofinnova, Surveyor
and Atlas Venture, to attend all meetings of the Board of Directors in a nonvoting observer capacity (each, an “Observer”).
The Company shall give each such Observer copies of all notices, minutes, consents, and other materials that it provides to its directors
at the same time and in the same manner as provided to any other member of the Board of Directors; provided, however, that
such Observer shall agree to hold in confidence all information so provided; and provided further, that the Company reserves the
right to withhold any information and to exclude such Observer from any meeting or portion thereof if access to such information or attendance
at such meeting could adversely affect the attorney-client privilege between the Company and its counsel or result in disclosure of trade
secrets or a conflict of interest.

 

3.4           Termination
of Information and Observer Rights. The covenants set forth in Subsection 3.1, Subsection 3.2 and Subsection
3.3 shall terminate and be of no further force or effect (i) immediately before the consummation of the Qualified Public
Offering, (ii) when the
Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act,
or (iii) upon the closing of a Deemed Liquidation Event, as such term is defined in the Certificate of Incorporation, whichever
event occurs first.

 

3.5           Confidentiality.
Each Investor agrees, severally and not jointly, that such Investor will keep confidential and will not disclose, divulge, or use
for any purpose (other than to monitor its investment in the Company) any confidential information obtained from the Company
pursuant to the terms of this Agreement (including notice of the Company’s intention to file a registration statement), unless
such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of
this Subsection 3.5 by such Investor), (b) is or has been independently developed or conceived by such Investor without
use of the Company’s confidential information, or (c) is or has been made known or disclosed to such Investor by a third
party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however,
that an Investor may disclose confidential information (i) to its attorneys, accountants, consultants, and other professionals
to the extent necessary to obtain their services in connection with monitoring its investment in the Company; (ii) to any
prospective purchaser of any Registrable Securities from such Investor, if such prospective purchaser agrees to be bound by the
provisions of this Subsection 3.5; (iii) to any existing or prospective Affiliate, partner, member, stockholder, or
wholly owned subsidiary of such Investor in the ordinary course of business, provided that such Investor informs such Person
that such information is confidential and directs such Person to maintain the confidentiality of such information; (iv) to the
extent required in connection with any routine or periodic examination or similar process by any regulatory or self-regulatory body
or authority not specifically directed at the Company or the confidential information obtained from the Company pursuant to the
terms of the Agreement, including, without limitation, quarterly or annual reports, (v) as may otherwise be required by
law, regulation, rule, court order or subpoena, provided that, with respect to this clause (v), such Investor promptly
notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure;
(vi) as required by any court or other governmental body, provided that the Investor promptly notifies the Company of such
disclosure and takes reasonable steps to minimize the extent of any such required disclosure; (vii) in connection with the
enforcement of this Agreement or any other agreement with the Company or its subsidiaries or rights under this Agreement or any
other agreement with the Company or its subsidiaries; (viii) to comply with applicable law, statutes, rules or regulations
or pursuant to any direction, request or requirement (whether or not having the force of law but if not having the force of law
being of a type with which institutional investors in the relevant jurisdiction are accustomed to comply) of any self- regulating
organization or any governmental, fiscal, monetary or other authority; (ix) for internal market, industry and investment
analyses; or (x) to officers, employees, agents, directors, partners, parent or subsidiaries to the extent necessary to obtain
their services in connection with monitoring its investment in the Company. This Section 3.5 shall supersede and
replace, in its entirety, any agreement between the Company and any Investor related to the confidential treatment of the
Company’s information. The Company acknowledges and agrees that in no event shall Surveyor’s confidentiality and non-use
obligations hereunder in any manner be deemed or construed as limiting Surveyor’s or its representatives’ (or any of
their respective Affiliates’) ability to trade any security of a company that has issued securities that are publicly
traded.

 

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		4.	Rights to Future Stock Issuances.

 

4.1           Right
of First Offer. Subject to the terms and conditions of this Subsection 4.1 and applicable securities laws, if the Company proposes
to offer or sell any New Securities, the Company shall first offer such New Securities to each Major Investor. A Major Investor shall
be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate, among (i) itself,
and (ii) its Affiliates.

 

(a)           The
Company shall give notice (the “Offer Notice”) to each Major Investor, stating (i) its bona fide intention to
offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon
which it proposes to offer such New Securities.

 

(b)           By
notification to the Company within twenty (20) days after the Offer Notice is given, each Major Investor may elect to purchase or
otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which
equals the proportion that the Common Stock issuable or issued upon conversion of Preferred Stock then held by such Major Investor
(excluding any Common Stock issued upon conversion of the Series A Preferred Stock pursuant to the “Special Mandatory
Conversion” provisions in the Certificate of Incorporation) bears to the total Common Stock issuable or issued upon conversion
of Preferred Stock then held by all Major Investors (excluding any Common Stock issued upon conversion of the Series A
Preferred Stock pursuant to the “Special Mandatory Conversion” provisions in the Certificate of Incorporation). At the
expiration of such twenty (20) day period, the Company shall promptly notify each Major Investor that elects to purchase or acquire
all the shares available to it (each, a “Fully Exercising Investor”) of any other Major Investor’s failure
to do likewise. During the ten (10) day period commencing after the Company has given such notice, each Fully Exercising
Investor may, by giving notice to the Company, elect to purchase or acquire, in addition to the number of shares specified above, up
to that portion of the New Securities for which Major Investors were entitled to subscribe but that were not subscribed for
by the Major Investors which is equal to the proportion that the Common Stock issuable or issued upon conversion of Preferred Stock
then held by such Fully Exercising Investor (excluding any Common Stock issued upon conversion of the Series A Preferred Stock
pursuant to the “Special Mandatory Conversion” provisions in the Certificate of Incorporation) bears to the Common Stock
issuable or issued upon conversion of Preferred Stock then held by all Fully Exercising Investors (excluding any Common Stock issued
upon conversion of the Series A Preferred Stock pursuant to the “Special Mandatory Conversion” provisions in the
Certificate of Incorporation) who wish to purchase such unsubscribed shares. The closing of any sale pursuant to this Subsection
4.1(b) shall occur within the later of ninety (90) days of the date that the Offer Notice is given and the date of initial
sale of New Securities pursuant to Subsection 4.1(c).

 

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(c)           If
all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Subsection 4.1(b),
the Company may, during the ninety (90) day period following the expiration of the periods provided in Subsection 4.1(b), offer
and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no
more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale
of the New Securities within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the
right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Major
Investors in accordance with this Subsection 4.1.

 

(d)           The
right of first offer in this Subsection 4.1 shall not be applicable to (i) Exempted Securities (as defined in the Certificate
of Incorporation); (ii) shares of Common Stock issued in the Qualified Public Offering; and (iii) the issuance of shares of
Series A Preferred Stock pursuant to Subsection 1.3 of the Purchase Agreement.

 

(e)           Notwithstanding
any provision hereof to the contrary, in lieu of complying with the provisions of this Subsection 4.1, the Company may elect to
give notice to the Major Investors within thirty (30) days after the issuance of New Securities. Such notice shall describe the type,
price, and terms of the New Securities. Each Major Investor shall have twenty (20) days from the date notice is given to elect to purchase
up to the number of New Securities that would, if purchased by such Major Investor, maintain such Major Investor’s percentage-ownership
position, calculated as set forth in Subsection 4.1(b) before giving effect to the issuance of such New Securities.

 

4.2           Termination.
The covenants set forth in Subsection 4.1 shall terminate and be of no further force or effect (i) immediately before the
consummation of the Qualified Public Offering, (ii) when the Company first becomes subject to the periodic reporting requirements
of Section 12(g) or 15(d) of the Exchange Act, or (iii) upon the closing of a Deemed Liquidation Event, as such term
is defined in the Certificate of Incorporation, whichever event occurs first.

 

		5.	Additional Covenants.

 

5.1           Insurance.
The Company shall obtain, within ninety (90) days of the date hereof, from financially sound and reputable insurers Directors and
Officers liability insurance with coverage of the directors (and their Affiliated investors) and the officers of the Company in an
amount of not less than $3,000,000 (and will increase such amount to at least $15,000,000 immediately prior to an IPO) per
incident and on terms and conditions satisfactory to the Board of Directors, and will use commercially reasonable efforts to cause
such insurance policies to be maintained until such time as the Board of Directors determines that such insurance should be
discontinued. The policy shall not be cancelable by the Company without prior approval by the Board of Directors, which approval
must include the affirmative vote of a majority of the Series A Directors then-serving.

 

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5.2           Employee
Agreements. The Company will cause (i) each Person now or hereafter employed by it or by any subsidiary (or engaged by the Company
or any subsidiary as a consultant/independent contractor) to enter into a nondisclosure and proprietary rights assignment agreement, substantially
in the form approved by the Board of Directors and provided to the Investors; and (ii) each Person now or hereafter employed by it
or by any subsidiary with access to confidential information and/or trade secrets to enter into a nonsolicitation agreement, substantially
in the form approved by the Board of Directors and provided to the Investors. In addition, the Company shall not amend, modify, terminate,
waive, or otherwise alter, in whole or in part, any of the above-referenced agreements between the Company and any employee involved in
the development of the Company’s intellectual property, without the consent of the Board, which approval must include the affirmative
vote of a majority of the Preferred Directors then-serving.

 

5.3           Employee
Stock. Unless otherwise approved by the Board of Directors, all future employees, consultants, independent contractors and other service
providers of the Company who purchase, receive options to purchase, or receive awards of shares of the Company’s capital stock after
the date hereof shall be required to execute restricted stock or option agreements, as applicable, providing for (i) vesting of shares
over a four (4) year period, with the first twenty-five percent (25%) of such shares vesting following twelve (12) months of continued
employment or service, and the remaining shares vesting in equal monthly installments over the following thirty-six (36) months, and (ii) a
market stand-off provision substantially similar to that in Subsection 2.11. Without the prior approval by the Board of Directors,
the Company shall not amend, modify, terminate, waive or otherwise alter, in whole or in part, any stock purchase, stock restriction or
option agreement with any existing employee, consultant, independent contractor or other service provider if such amendment would cause
it to be inconsistent with this Subsection 5.3. In addition, unless otherwise approved by the Board of Directors, the Company shall
retain (and not waive) a “right of first refusal” on service provider transfers until the Company’s IPO and shall have
the right to repurchase unvested shares at cost upon termination of employment or service of a holder of restricted stock.

 

5.4           Matters
Requiring Investor Director Approval. So long as any shares of Series A Preferred Stock remain outstanding, the Company hereby
covenants and agrees with each of the Investors that it shall not, without approval of the Board, which approval must include the affirmative
vote of a majority of the Series A Directors then-serving:

 

(a)           make,
or permit any subsidiary to make, any loan or advance to, or own any stock or other securities of, any subsidiary or other corporation,
partnership, or other entity unless it is wholly owned by the Company;

 

(b)           make,
or permit any subsidiary to make, any loan or advance to any Person, including, without limitation, any employee or director of the Company
or any subsidiary, except advances and similar expenditures in the ordinary course of business or under the terms of an employee stock
or option plan approved by the Board of Directors;

 

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(c)           guarantee,
directly or indirectly, or permit any subsidiary to guarantee, directly or indirectly, any indebtedness except for trade accounts of the
Company or any subsidiary arising in the ordinary course of business;

 

(d)           make
any investment inconsistent with any investment policy approved by the Board of Directors;

 

(e)           incur
any aggregate indebtedness in excess of $150,000 that is not already included in a budget approved by the Board of Directors, other than
trade credit incurred in the ordinary course of business;

 

(f)            otherwise
enter into or be a party to any transaction with any director, officer, or employee of the Company or any “associate” (as
defined in Rule 12b-2 promulgated under the Exchange Act) of any such Person, including without limitation any “management
bonus” or similar plan providing payments to employees in connection with a Deemed Liquidation Event, as such term is defined in
the Certificate of Incorporation, except for transactions made in the ordinary course of business and pursuant to reasonable requirements
of the Company’s business and upon fair and reasonable terms that are approved by a majority of the Board of Directors;

 

(g)           hire,
terminate, or change the compensation of the executive officers, including approving any option grants or stock awards to executive officers;

 

(h)           change
the principal business of the Company, enter new lines of business, or exit the current line of business;

 

(i)            sell,
assign, license, pledge, or encumber material technology or intellectual property, other than licenses granted in the ordinary course
of business; or

 

(j)            enter
into any corporate strategic relationship involving the payment, contribution, or assignment by the Company or to the Company of money
or assets greater than $150,000.

 

5.5           Board
Matters. Unless otherwise determined by the vote of a majority of the directors then in office, including the determination of at
least a majority of the Series A Directors, the Board of Directors shall meet at least quarterly (which may be via teleconference)
in accordance with an agreed-upon schedule. The Company shall reimburse the nonemployee directors and Observers for all reasonable out-of-pocket
travel expenses incurred (consistent with the Company’s travel policy) in connection with attending meetings of the Board of Directors,
meetings of the committees of the Board of Directors, meetings of the board of directors of any subsidiary of the Company and for reasonable
expenses actually incurred while working for the benefit of the Company. Each Series A Director shall be entitled in such person’s
discretion to be a member of any committee of the Board and a director of any subsidiary of the Company.

 

5.6            Successor
Indemnification. If the Company or any of its successors or assignees consolidates with or merges into any other Person and is not
the continuing or surviving corporation or entity of such consolidation or merger, then to the extent necessary, proper provision shall
be made so that the successors and assignees of the Company assume the obligations of the Company with respect to indemnification of members
of the Board of Directors as in effect immediately before such transaction, whether such obligations are contained in the Company’s
Bylaws, the Certificate of Incorporation, or elsewhere, as the case may be.

 

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5.7           Expenses
of Counsel. In the event of a transaction which is a Sale of the Company (as defined in the Voting Agreement of even date
herewith among the Investors, the Company and the other parties named therein), the reasonable fees and disbursements of one
counsel for the Major Investors (“Investor Counsel”), in their capacities as stockholders, shall be borne and
paid by the Company. At the outset of considering a transaction which, if consummated would constitute a Sale of the Company, the
Company shall obtain the ability to share with the Investor Counsel (and such counsel's clients) and shall share the confidential
information (including, without limitation, the initial and all subsequent drafts of memoranda of understanding, letters of intent
and other transaction documents and related noncompete, employment, consulting and other compensation agreements and plans)
pertaining to and memorializing any of the transactions which, individually or when aggregated with others would constitute the Sale
of the Company. The Company shall be obligated to share (and cause the Company's counsel and investment bankers to share) such
materials when distributed to the Company's executives and/or any one or more of the other parties to such transaction(s). In the
event that Investor Counsel deems it appropriate, in its reasonable discretion, to enter into a joint defense agreement or other
arrangement to enhance the ability of the parties to protect their communications and other reviewed materials under the attorney
client privilege, the Company shall, and shall direct its counsel to, execute and deliver to Investor Counsel and its clients such
an agreement in form and substance reasonably acceptable to Investor Counsel. In the event that one or more of the other party or
parties to such transactions require the clients of Investor Counsel to enter into a confidentiality agreement and/or joint defense
agreement in order to receive such information, then the Company shall share whatever information can be shared without entry into
such agreement and shall, at the same time, in good faith work expeditiously to enable Investor Counsel and its clients to negotiate
and enter into the appropriate agreement(s) without undue burden to the clients of Investor Counsel.

 

5.8           Indemnification
Matters. The Company hereby acknowledges that one (1) or more of the directors nominated to serve on the Board of Directors
by the Investors (each an “Investor Director”) may have certain rights to indemnification, advancement of
expenses and/or insurance provided by one or more of the Investors and certain of their Affiliates (collectively, the
 “Investor Indemnitors”). The Company hereby agrees (a) that it is the indemnitor of first resort
(i.e., its obligations to any such Investor Director are primary and any obligation of the Investor Indemnitors to advance
expenses or to provide indemnification for the same expenses or liabilities incurred by such Investor Director are secondary),
(b) that it shall be required to advance the full amount of expenses incurred by such Investor Director and shall be liable for
the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement by or on behalf of any such Investor
Director to the extent legally permitted and as required by the Company’s Certificate of Incorporation or Bylaws of the
Company (or any agreement between the Company and such Investor Director), without regard to any rights such Investor Director may
have against the Investor Indemnitors, and, (c) that it irrevocably waives, relinquishes and releases the Investor Indemnitors
from any and all claims against the Investor Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof.
The Company further agrees that no advancement or payment by the Investor Indemnitors on behalf of any such Investor Director with
respect to any claim for which such Investor Director has sought indemnification from the Company shall affect the foregoing and the
Investor Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of
the rights of recovery of such Investor Director against the Company. The Investor Directors and the Investor Indemnitors are
intended third-party beneficiaries of this Subsection 5.8 and shall have the right, power and authority to enforce the
provisions of this Subsection 5.8 as though they were a party to this Agreement.

 

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5.9           Right
to Conduct Activities. The Company hereby agrees and acknowledges that each of RA Capital (together with its Affiliates), Sofinnova
(together with its Affiliates), OUP (together with its Affiliates), Cormorant (together with its Affiliates), Surveyor (together with
its Affiliates), and Atlas (together with its Affiliates) is a professional investment organization, and as such reviews the business
plans and related proprietary information of many enterprises, some of which may compete directly or indirectly with the Company’s
business (as currently conducted or as currently propose to be conducted). The Company hereby agrees that, to the extent permitted under
applicable law, none of RA Capital (together with its Affiliates), Sofinnova (together with its Affiliates), OUP (together with its Affiliates),
Cormorant (together with its Affiliates), Surveyor (together with its Affiliates), or Atlas (together with its Affiliates) shall be liable
to the Company for any claim arising out of, or based upon, (i) the investment by RA Capital (together with its Affiliates), Sofinnova
(together with its Affiliates), OUP (together with its Affiliates), Cormorant (together with its Affiliates), Surveyor (together with
its Affiliates), or Atlas (together with its Affiliates), or (ii) actions taken by any partner, officer, employee or other representative
of RA Capital (or its Affiliates), Sofinnova (or its Affiliates), OUP (or its Affiliates), Cormorant (or its Affiliates), Surveyor (or
its Affiliates), or Atlas (or its Affiliates) to assist any such competitive company, whether or not such action was taken as a member
of the board of directors of such competitive company or otherwise, and whether or not such action has a detrimental effect on the Company;
provided, however, that the foregoing shall not relieve (x) any of the Investors from liability associated with the unauthorized
disclosure of the Company’s confidential information obtained pursuant to this Agreement, or (y) any director or officer of
the Company from any liability associated with his or her fiduciary duties to the Company.

 

5.10         Cybersecurity.
The Company shall, within 180 days following the Initial Closing (as defined in the Purchase Agreement), (a) identify its sensitive
data and information, and restrict access (through physical and electronic controls) to those individuals who have a need to access it
and (b) implement cybersecurity solution(s) (“Cybersecurity Solutions”) designed to protect its technology
and systems (including servers, laptops, desktops, cloud, containers, virtual environments and data centers) and all data contained in
such systems. The Company shall use commercially reasonable efforts to ensure that the Cybersecurity Solutions (x) are up-to-date
and include industry-standard protections (e.g., antivirus, endpoint detection and response and threat hunting), (y) to the extent
determined necessary by the Company or its Board of Directors, are backed by a breach prevention warranty from the vendor certifying the
effectiveness of such solutions, and (z) require the vendors to notify the Company of any security incidents posing a risk to the
Company’s information (regardless of whether information was actually compromised). The Company shall evaluate on a regular basis
whether the Cybersecurity Solutions should be updated to ensure continued effectiveness and industry- standard protections. The Company
shall also educate its employees about the proper use and storage of sensitive information, including regular training as determined reasonably
necessary by the Company or its Board of Directors.

 

5.11         Termination
of Covenants. The covenants set forth in this Section 5, except for Subsections 5.6, 5.7 and 5.8,
shall terminate and be of no further force or effect (i) immediately before the consummation of the Qualified Public
Offering, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or
15(d) of the Exchange Act, or (iii) upon a Deemed Liquidation Event, as such term is defined in the Certificate of
Incorporation, whichever event occurs first.

 

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5.12         Reservation
of Common Stock. The Company will at all times reserve and keep available, solely for issuance and delivery upon the conversion of
the Preferred Stock, all Common Stock issuable from time to time upon such conversion.

 

5.13         Foreign
Corrupt Practices Act. The Company represents that it shall not, and shall not permit any of its subsidiaries or Affiliates or any
of its or their respective directors, officers, managers, employees, independent contractors, representatives or agents to, promise,
authorize or make any payment, or otherwise provide any item of value, directly or indirectly, to any foreign official or any foreign
political party or official thereof or candidate for foreign political office in violation of the U.S. Foreign Corrupt Practices Act
(“FCPA”), the U.K. Bribery Act 2010, or any other applicable anti-bribery or anti-corruption law. The Company
further represents that it shall, and shall cause each of its subsidiaries and Affiliates to, cease all of its or their respective activities,
as well as remediate any actions taken by the Company, its subsidiaries or Affiliates, or any of their respective directors, officers,
managers, employees, independent contractors, representatives or agents in violation of the FCPA, the U.K. Bribery Act 2010, or any other
applicable anti-bribery or anti-corruption law. The Company further represents that it shall use commercially reasonable efforts to–for
itself and each of its subsidiaries and Affiliates, maintain systems of internal controls (including, but not limited to, accounting
systems, purchasing systems and billing systems) to ensure compliance with the FCPA, the U.K. Bribery Act 2010 and other applicable anti-bribery
or anti-corruption law. Upon request, the Company agrees to provide responsive information and/or certifications concerning its compliance
with applicable anti-corruption laws. The Company shall promptly notify each Investor if the Company becomes aware of any enforcement
action by a government agency with respect to FCPA. The Company shall, and shall cause any direct or indirect subsidiary or entity controlled
by it, whether now in existence or formed in the future, to comply with the FCPA. The Company shall use its best efforts to cause any
direct or indirect subsidiary, whether now in existence or formed in the future, to comply in all material respects with all applicable
laws.

 

5.14         Defense
Production Act. To the extent that the Company engages in the design, fabrication, development, testing, production or manufacture
of critical technologies within the meaning of the Defense Production Act of 1950, as amended, including all implementing regulations
thereof, whether because of a new categorization of technology by the U.S. government or otherwise, the Company shall promptly provide
notice to each Major Investor.

 

		6.	Miscellaneous.

 

6.1           Successors
and Assigns. The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee
of Registrable Securities that (i) is an Affiliate of a Holder; (ii) is a Holder’s Immediate Family Member or trust
for the benefit of an individual Holder or one or more of such Holder’s Immediate Family Members; or (iii) after such
transfer, holds at least 1,000,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock
dividends, combinations, and other recapitalizations); provided, however, that (x) the Company is, within a
reasonable time after such transfer, furnished with written notice of the name and address of such transferee and the Registrable
Securities with respect to which such rights are being transferred; and (y) such transferee agrees in a written instrument
delivered to the Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions
of Subsection 2.11. For the purposes of determining the number of shares of Registrable Securities held by a transferee, the
holdings of a transferee (1) that is an Affiliate or stockholder of a Holder; (2) who is a Holder’s Immediate Family
Member; or (3) that is a trust for the benefit of an individual Holder or such Holder’s Immediate Family Member shall be
aggregated together and with those of the transferring Holder; provided further that all transferees who would not qualify
individually for assignment of rights shall, as a condition to the applicable transfer, establish a single attorney-in- fact for the
purpose of exercising any rights, receiving notices, or taking any action under this Agreement. The terms and conditions of this
Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties. Nothing in
this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective
successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as
expressly provided herein.

 

    24

     

    

 

6.2           Governing
Law. This Agreement shall be governed by the internal law of the State of Delaware, without regard to conflict of law principles that
would result in the application of any law other than the law of the State of Delaware.

 

6.3           Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic
signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart
so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

6.4           Titles
and Subtitles. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing
or interpreting this Agreement.

 

		6.5	Notices.

 

(a)           All
notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given
upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by
electronic mail or facsimile during the recipient’s normal business hours, and if not sent during normal business hours, then
on the recipient’s next business day; (iii) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a
nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All
communications shall be sent to the respective parties at their addresses as set forth on such party’s signature
page hereto, or to the principal office of the Company and to the attention of the Chief Executive Officer, in the case of the
Company, or to such email address, facsimile number, or address as subsequently modified by written notice given in accordance with
this Subsection 6.5. If notice is given to the Company, a copy shall also be sent to Brown Rudnick LLP, One
Financial Center, Boston, MA 02111, Attn: Michael J. Cohen, Esq., and if notice is given to Stockholders,a copy (which shall
not constitute notice) shall also be given to Brian Covotta, O’Melveny & Myers LLP, 2765 Sand Hill Rd., Menlo Park,
CA 94025.

 

    25

     

    

 

(b)           Consent
to Electronic Notice. Each Investor consents to the delivery of any stockholder notice pursuant to the Delaware General
Corporation Law (the “DGCL”), as amended or superseded from time to time, by electronic transmission pursuant to
Section 232 of the DGCL (or any successor thereto) at the electronic mail address or the facsimile number set forth
below such Investor’s name on the Schedules hereto, as updated from time to time by notice to the Company, or as on the books
of the Company. To the extent that any notice given by means of electronic transmission is returned or undeliverable for any reason,
the foregoing consent shall be deemed to have been revoked until a new or corrected electronic mail address has been provided, and
such attempted electronic transmission shall be ineffective and deemed to not have been given. Each Investor agrees to promptly
notify the Company of any change in such stockholder’s electronic mail address, and that failure to do so shall not affect the
foregoing.

 

6.6           Amendments
and Waivers. Any term of this Agreement may be amended, modified or terminated and the observance of any term of this Agreement
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 Requisite Holders; provided that the Company may in its sole discretion waive compliance with Subsection
2.12(c) (and the Company’s failure to object promptly in writing after notification of a proposed assignment
allegedly in violation of Subsection 2.12(c) shall be deemed to be a waiver); and provided further that any
provision hereof may be waived by any waiving party on such party’s own behalf, without the consent of any other party.
Notwithstanding the foregoing, (a) this Agreement may not be amended, modified or terminated and the observance of any term
hereof may not be waived with respect to any Investor without the written consent of such Investor, unless such amendment,
modification, termination, or waiver applies to all Investors in the same fashion (it being agreed that a waiver of the provisions
of Section 4 with respect to a particular transaction shall be deemed to apply to all Investors in the same fashion if
such waiver does so by its terms, notwithstanding the fact that certain Investors may nonetheless, by agreement with the Company,
purchase securities in such transaction; provided, however, that if, after giving effect to such waiver of Section 4
with respect to a particular transaction, a Major Investor purchases securities in such transaction or issuance (such Major
Investor, a “Participating Investor”), such waiver of the provisions of Section 4 shall be deemed to apply
to each other Major Investor whose rights were waived or amended only if such other Major Investor has been provided the opportunity
to purchase a proportional number of the New Securities being offered by the Company in such transaction based on the pro rata
purchase right of such other Major Investor set forth in Section 4, assuming a transaction size determined based upon
the amount purchased by the Participating Investor that invested the largest percentage in such transaction, it being agreed that
such opportunity may be provided subsequent to the initial closing in which such Participating Investor(s) purchase securities)
and (b) Subsections 3.1 and 3.2, Section 4 and any other section of this Agreement applicable to the
Major Investors (including this clause (b) of this Subsection 6.6) may not be amended, modified, terminated or waived
without the written consent of the holders of at least sixty-five percent (65%) of the Registrable Securities then outstanding and
held by the Major Investors. Notwithstanding the foregoing, Schedule A hereto may be amended by the Company from time to time
to add transferees of any Registrable Securities in compliance with the terms of this Agreement without the consent of the other
parties; and Schedule A hereto may also be amended by the Company after the date of this Agreement without the consent of the
other parties to add information regarding any additional Investor who becomes a party to this Agreement in accordance with Subsection
6.9. The Company shall give prompt notice of any amendment, modification or termination hereof or waiver hereunder to any party
hereto that did not consent in writing to such amendment, modification, termination, or waiver. Any amendment, modification,
termination, or waiver effected in accordance with this Subsection 6.6 shall be binding on all parties hereto,
regardless of whether any such party has consented thereto. No waivers of or exceptions to any term, condition, or provision of this
Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term,
condition, or provision.

 

    26

     

    

 

6.7           Severability.
In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid,
illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent
permitted by law.

 

6.8           Aggregation
of Stock. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the purpose of determining
the availability of any rights under this Agreement and such Affiliated Persons may apportion such rights as among themselves in any manner
they deem appropriate.

 

6.9           Additional
Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of the Company’s
Series A Preferred Stock after the date hereof, whether pursuant to the Purchase Agreement or otherwise, any purchaser of such shares
of Series A Preferred Stock may become a party to this Agreement by executing and delivering an additional counterpart signature
page to this Agreement, and thereafter shall be deemed an “Investor” for all purposes hereunder. No action or consent
by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor
has agreed in writing to be bound by all of the obligations as an “Investor” hereunder.

 

6.10         Entire
Agreement. This Agreement (including any Schedules and Exhibits hereto) constitutes the full and entire understanding and agreement
among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof
existing between the parties is expressly canceled.

 

6.11         Dispute
Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware
and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or other
proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out
of or based upon this Agreement except in the state courts of Delaware or the United States District Court for the District of Delaware,
and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding,
any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from
attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or
proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

 

WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS,
THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL
DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT
LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY
CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY
EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

    27

     

    

 

6.12         Delays
or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach
or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting
party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default
thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative
and not alternative.

 

6.13         Acknowledgment.
The Company acknowledges that the Investors are in the business of venture capital or asset management investing and therefore review
the business plans and related proprietary information of many enterprises, including enterprises which may have products or services
which compete directly or indirectly with those of the Company. Nothing in this Agreement shall preclude or in any way restrict the Investors
from investing or participating in any particular enterprise whether or not such enterprise has products or services which compete with
those of the Company.

 

6.14         Attorneys’
Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the non-prevailing party
shall pay all costs and expenses incurred by the prevailing party, including, without limitation, all reasonable attorneys’ fees.

 

[Remainder of Page Intentionally Left Blank]

 

    28

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first written above.

 

	 	AEROVATE THERAPEUTICS INC.
	 	 
	 	By:	/s/ Benjamin Dake
	 	Name:	Benjamin Dake
	 	Title:	President

 

Signature
Page to Investors’ Rights Agreement

 

    	

     

    

	 	 

                                                                     

	 	INVESTORS:
	 	
	 	RA CAPITAL HEALTHCARE FUND, L.P.
	 	 

	 	 	By: RA Capital Healthcare Fund GP, LLC 

Its General Partner

 

	 	By:	/s/
    Peter Kolchinsky   
	 	Name: Peter Kolchinsky
	 	Title: Manager

 

	 	Address:	
	 	 	
	 	 	
	 	 	
	 	 	
	 	 

	 	BLACKWELL PARTNERS
    LLC - SERIES A

 

	 	By:	/s/ Jannine M. Lall
	 	Name: Jannine M. Lall
	 	Title: Head of Finance & Controller DUMAC, Inc., Authorized
Signatory
	 	 
	 	By:	 /s/ Abayomi A. Adigun
	 	Name: Abayomi A. Adigun
	 	Title: Authorized Signatory Title: Investment Manager DUMAC, Inc. Authorized Signatory

 

		Address:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

	 	RA CAPITAL NEXUS FUND, L.P.

 

	 	By: RA Capital Nexus Fund GP, LLC
    

Its: General Partner
	 	 
	 	By:	/s/
    Peter Kolchinsky
	 	Name: Peter Kolchinsky
	 	Title:Manager
	 	 

	 	Address:	 
	 	 	 
	 	 	 
	 	 	 

 

Signature
Page to Investors’ Rights Agreement

 

    	 

     

    

 

 

	 	SOFINNOVA VENTURE PARTNERS X,
    L.P.

	 	 
	 	By: Sofinnova Management X, L.L.C.
	 	Its: General Partner
	 	 
	 	By:	/s /
    Maha Katabi
	 	Name: Maha Katabi
	 	Title: Managing Member

 

	 	Address:     	
	 	 	
	 	 	 
	 	 

 

	 	CORMORANT PRIVATE HEALTHCARE
    FUND II, LP

 

	 	By: Cormorant Private Healthcare GP
    II, LLC
	 	Its: General Partner
	 	 
	 	By:	/s/
    Bihua Chen
	 	Name: Bihua Chen
	 	Title: Managing Member
	 	 

	 	Address:	
	 	 	

 

	 	CORMORANT GLOBAL HEALTHCARE MASTER
    FUND, LP

 

	 	By: Cormorant Global Healthcare GP,
    LLC
	 	Its: General Partner
	 	 
	 	By:	/s/ Bihua Chen
	 	Name: Bihua Chen
	 	Title: Managing Member

 

	 	Address:	
	 	 	
	 	 

 

SIGNATURE PAGE TO INVESTORS'
RIGHTS AGREEMENT

 

    	 

     

    

 

	 	ATLAS VENTURE FUND XII, L.P.

 

	 	By: Atlas Venture Associates XII,
    L.P.
	 	Its: General Partner
	 	 
	 	By: Atlas Venture Associates XII,
    LLC
	 	Its: General Partner
	 	 
	 	By:	/s/Ommer
    Chohan
	 	Name:     Ommer
    Chohan
	 	Title:       CFO
	 	 

	 	Address:	 
	 	 	 
	 	 	 

 

Signature
Page to Investors’ Rights Agreement

 

    	 

     

    

 

	 	CITADEL MULTI-STRATEGY EQUITIES
    MASTER FUND LTD.

 

	 	By: Citadel Advisors LLC    
	 	Its: Portfolio Manager
	 	 
	 	By	/s/
    Shellane Mulcahy
	 	Name:	Shellane Mulcahy
	 	Title: Authorized Signatory
	 	 

	 	Address:	 
	 	                               	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

	 	OSAGE UNIVERSITY PARTNERS III,
    LP

 

	 	By: Osage University GP III, LLC
	 	Its: General Partner
	 	 
	 	By:	 /s/ William Harrington
	 	Name: William Harrington
	 	Title: Managing Member

 

	 	Address:               	
	 	 	
	 	 	 

 

Signature
Page to Investors’ Rights Agreement

 

 

    	 

     

    

 

 

 

SCHEDULE A

Investors

 

RA CAPITAL HEALTHCARE FUND, L.P.

 

BLACKWELL PARTNERS LLC
 – SERIES A

 

RA CAPITAL NEXUS FUND, L.P.

 

SOFINNOVA VENTURE PARTNERS X,
L.P.

 

CORMORANT PRIVATE HEALTHCARE FUND II, LP

 

CORMORANT GLOBAL
HEALTHCARE MASTER FUND, LP

 

ATLAS VENTURE FUND XII, L.P.

 

CITADEL MULTI-STRATEGY EQUITIES MASTER FUND LTD.

 

OSAGE UNIVERSITY
PARTNERS III, LP

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