Document:

VOTING AND SUPPORT AGREEMENT

    VOTING AND SUPPORT AGREEMENT (this “Agreement”), dated as of February 14, 2021, by and among The Progressive Corporation, an Ohio corporation (“Parent”),

      Protective Insurance Corporation (the “Company”), and the persons set forth on Schedule I hereto (the “Shareholders”).

    W I T N E S S
          E T H:

    WHEREAS, concurrently with the execution of this Agreement, Company,
      Parent and Carnation Merger Sub Inc., an Indiana corporation and a wholly owned Subsidiary of Parent (“Merger Sub”), are entering into an Agreement
      and Plan of Merger, dated as of the date hereof (as amended, supplemented, restated or otherwise modified from time to time, the “Merger Agreement”),

      pursuant to which, among other things, each outstanding share of Class A common stock (the “Class A Shares”) and Class B common stock (the “Class B Shares” and together with the Class A Shares, the “Company Shares”) will be converted into the right to receive the Merger Consideration, as specified in the Merger Agreement;

    WHEREAS, as of the date hereof, each Shareholder is the Beneficial
      Owner of the Class A Shares set forth opposite such Shareholder’s name on Exhibit A hereto (the “Existing Shareholder Shares”);

    WHEREAS, the consummation of the Merger requires receipt of the Company Required Vote;

    WHEREAS, as a condition and inducement to Parent entering into the Merger Agreement, Parent has
      required that each Shareholder agree, and each Shareholder has agreed, to enter into this Agreement and abide by the covenants and obligations with respect to the Covered Shareholder Shares; and

    WHEREAS, the Company Board of Directors, acting upon the unanimous recommendation of the Special
      Committee of the Company Board of Directors, has unanimously (i) determined that the Merger Agreement, the Merger and the other transactions contemplated thereby are fair to, advisable and in the best interest of the Company and its Class A and Class
      B shareholders, (ii) approved the Merger Agreement, the Merger and the other transactions contemplated thereby and (iii) declared the advisability of the Merger Agreement, the Merger and the other transactions contemplated thereby and recommended the
      adoption by the holders of the Class A Shares of the Merger Agreement, the Merger and the other transactions contemplated thereby, understanding that the execution and delivery of this Agreement by the Shareholders is a material inducement and
      condition to Parent’s willingness to enter into the Merger Agreement.

    NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties,
      covenants and agreements herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

    
      
        

    

     

    

    ARTICLE 1

      

      

      GENERAL

    Section 1.01 Defined Terms. Capitalized terms used but not
        otherwise defined herein shall have the meanings ascribed thereto in the Merger Agreement in effect on the date hereof. The following capitalized terms, as used in this Agreement, shall have the following meanings:

    “Affiliate”
      of any Person means another Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first Person. For purposes hereof, the Company and its Subsidiaries shall be deemed
      not to be Affiliates of a Shareholder.

    “Beneficial

        Ownership” has the meaning ascribed to such term in Rule 13d-3 under the Exchange Act. The terms “Beneficially Own”, “Beneficially Owned” and “Beneficial Owner” shall
      each have a correlative meaning.

    “Covered

        Shareholder Shares” means, with respect to each Shareholder, such Shareholder’s Existing Shareholder Shares, (a) together with any Class A Shares or other voting capital stock of the Company (and any Class A Shares or other voting capital
      stock of the Company issuable upon the conversion, exercise or exchange of securities that are as of the relevant date convertible into or exercisable or exchangeable for Class A Shares or other voting capital stock of the Company) as to which such
      Shareholder has or acquires Beneficial Ownership on or after the date hereof, and (b) less any Class A Shares disposed of by such Shareholder pursuant to a Permitted Transfer.

    “Encumbrance”
      means any lien, mortgage, pledge, deed of trust, security interest, charge, encumbrance or hypothecation.  The term “Encumber” shall have a
      correlative meaning.

    “Expiration

        Date” means the date on which the Merger Agreement is terminated in accordance with its terms.

    “Permitted

        Transfer” means (a) a Transfer pursuant to Section 4.02(b), (b) a Transfer of Covered Shareholder Shares by a Shareholder to any of its controlled Affiliates,(c) a Transfer of Covered Shareholder Shares by a Shareholder to any other Person
      to whom Parent has consented in advance in writing, (d) a Transfer by will or other testamentary document or by the laws of descent and distribution upon the death of a Shareholder, or (e) for estate planning purposes, provided that (i) in the case of clause (b) such Affiliate shall remain a controlled Affiliate of such Shareholder at all times following such Transfer and (ii) in the case
      of clauses (b), (c) and (e), prior to the effectiveness of such Transfer, such transferee executes and delivers to Parent a written agreement, in form and substance reasonably acceptable to Parent, to assume all of such Shareholder’s obligations
      hereunder in respect of the Covered Shareholder Shares subject to such Transfer and to be bound by the terms of this Agreement with respect to such Covered Shareholder Shares to the same extent as such Shareholder is bound hereunder and to make each
      of the representations and warranties hereunder in respect of itself and the Covered Shareholder Shares as such Shareholder shall have made hereunder, and such Shareholder will be responsible for any breach by the transferee of such agreement.

    “Transfer”
      means, directly or indirectly, to sell, transfer, assign, Encumber or similarly dispose of (including by merger (including by conversion into securities or other consideration), by tendering into any tender or exchange offer, by testamentary
      disposition, by operation of law or otherwise), either voluntarily or involuntarily, or to enter into any contract, option, derivative transaction or other arrangement or understanding with respect to the voting of or sale, transfer, assignment,
      pledge, Encumbrance, hypothecation or similar disposition of (including by merger, by tendering into any tender or exchange offer, by testamentary disposition, by operation of law or otherwise).

     

    

    
      
        

    

    ARTICLE 2

      

      

      VOTING

    Section 2.01 Agreement To Vote.

    (a) Each Shareholder hereby irrevocably and unconditionally agrees that during the term of this Agreement, at the
        Company Shareholders Meeting and at any other meeting of the shareholders of the Company, however called, including any adjournment or postponement thereof, each Shareholder shall, in each case to the fullest extent that the Covered Shareholder
        Shares are entitled to vote thereon or consent thereto:

    
      	
              (i)

            	
              appear at each such meeting or otherwise cause the Covered
                Shareholder Shares to be counted as present thereat for purposes of calculating a quorum; and

            

    

    
      	
              (ii)

            	
              vote (or cause to be voted), in person or by proxy, all of the
                Covered Shareholder Shares: (A) in favor of (1) the adoption of the Merger Agreement, the Merger and other transactions contemplated by the Merger Agreement and (2) any action reasonably requested by Parent or the Company Board of Directors
                in furtherance of the foregoing, including, without limiting any of the foregoing obligations, in favor of any proposal to adjourn or postpone the Company Shareholders Meeting to the extent necessary if as of the time for which the Company
                Shareholders Meeting is scheduled, there are insufficient Company Shares represented (either in person or by proxy) to constitute a quorum necessary to conduct the business of the Company Shareholders Meeting or to constitute the Company
                Required Vote or such adjournment or postponement is otherwise permitted pursuant to the Merger Agreement; (B) against any action or agreement that would reasonably be expected to (i) result in a material breach of any covenant,
                representation or warranty or any other obligation or agreement of the Company contained in the Merger Agreement, or of a Shareholder contained in this Agreement, (ii) result in any of the conditions to the consummation of the Merger under
                the Merger Agreement not being satisfied, or (iii) impede, frustrate, interfere with, delay, postpone or adversely affect the Merger and the other transactions contemplated by the Merger Agreement; and (C) against any Takeover Proposal
                (other than the Merger and the transactions contemplated by the Merger Agreement) or Superior Proposal; provided, that, in the event that the Company Board of Directors makes an Adverse Recommendation Change pursuant to and in compliance with Section
                6.06 of the Merger Agreement, to the extent that the Shareholders own more than 35.3% of the aggregate amount of outstanding Class A Shares (such excess Class A Shares, the “Excess Class A Shares”), the Shareholder shall vote (or cause to be voted), in person or by proxy, all of the Excess Class A Shares in the same relative proportions as the number of Class A Shares
                owned by holders of Class A Shares other than the Shareholders (the “Unaffiliated Shareholders”) that are voted in favor of the adoption
                of the Merger Agreement, the Merger and other transactions contemplated by the Merger Agreement bears to the total number of Class A Shares owned by the Unaffiliated Shareholders.

            

    

    (b) Each Shareholder hereby (i) waives, and agrees not to exercise or assert, any appraisal or similar rights in
        connection with the Merger and (ii) agrees not to commence or participate in, and agrees to take all actions necessary to opt out of any class in any class action with respect to, any claim, derivative or otherwise, against Parent, Merger Sub, the
        Company or any of their respective Affiliates relating to the negotiation, execution or delivery of this Agreement or the Merger Agreement or the consummation of the transactions contemplated hereby or thereby, including any claim (1) challenging
        the validity of, or seeking to enjoin the operation of, any provision of this Agreement or the Merger Agreement, including the Merger, or (2) alleging a breach of any fiduciary duty of the Company Board of Directors or any committee thereof or any
        officer of the Company in connection with this Agreement, the Merger Agreement or the transactions contemplated hereby or thereby.

    (c) Notwithstanding the foregoing, nothing in this Section 2.01 shall be construed as giving Parent any direct or
        indirect ability to exercise or direct the exercise of any voting power with respect to the Covered Shareholder Shares in an election of directors of the Company.

    (d) Each Shareholder acknowledges and agrees that the consideration payable to such Shareholder pursuant to the Merger Agreement with respect to
        the Company Shares that it Beneficially Owns shall be as set forth in the Merger Agreement.

    (e) The obligations of each Shareholder specified in this Section 2.01 shall apply whether or not the Merger or any action described above is recommended by the
        Company Board of Directors (or any committee thereof).

     

      

    
      
        

    

    Section 2.02 No Inconsistent
          Agreements. Each Shareholder hereby covenants and agrees that, except for this Agreement, neither such Shareholder nor any of its
        Affiliates has (a) entered into, or shall enter into at any time while the Merger Agreement remains in effect, any voting agreement or voting trust with respect to the Covered Shareholder Shares (other than pursuant to Section 5.5 of the Amended
        and Restated Stockholder Support and Contingent Sale Agreement, dated August 17, 2020 (the “A&R SSCSA”)), (b) granted, or shall grant at any
        time while the Merger Agreement remains in effect, a proxy, consent or power of attorney with respect to the Covered Shareholder Shares (except has been granted pursuant to Section 5.5 of the A&R SSCSA pursuant to Section 2.03 or may be granted pursuant to any irrevocable proxy card in form and
        substance reasonably satisfactory to Parent delivered to the Company directing that the Covered Shareholder Shares be voted in accordance with Section 2.01) or (c) taken or shall knowingly take any action that would have the effect of making any representation or warranty of such Shareholder
        contained herein untrue or incorrect or preventing or disabling such Shareholder from performing any of its obligations under this Agreement; provided,
        however, that this Section 2.02 shall not preclude such Shareholder from Transferring Covered Shareholder Shares pursuant to a Permitted Transfer in compliance with Section 4.02. Each Shareholder hereby represents that all proxies, powers of attorney, instructions or other requests given by such Shareholder or any of its Affiliates prior to the
        execution of this Agreement in respect of the voting of the Covered Shareholder Shares, if any, are not irrevocable and such Shareholder hereby revokes (and shall cause to be revoked) any and all previous proxies, powers of attorney, instructions
        or other requests with respect to the Covered Shareholder Shares (other than pursuant to Section 5.5 of the A&R SSCSA). Any attempt by any Shareholder to vote, consent to, express dissent with respect to or abstain with respect to (or otherwise
        to utilize the voting power of) the Covered Shareholder Shares in contravention of this Section 2.02 shall be null and void ab initio.

    Section 2.03 Proxy. Each Shareholder hereby irrevocably appoints, and at the request of Parent will cause its Affiliates to irrevocably appoint, as its and their proxy and attorney-in-fact,
        Parent and any Person designated in writing by Parent, and each of them individually, with full power of substitution and resubstitution, to vote the Covered Shareholder Shares in accordance with Section 2.01 at the Company Shareholders Meeting and at any annual or special meetings of shareholders of
        the Company (or adjournments or postponements thereof) prior to the termination of this Agreement in accordance with Section 5.01 at which any of the matters described in Section 2.01 is to be considered; provided, however, that such Shareholder’s (and any such Affiliates’) grant of the proxy contemplated by this Section 2.03 shall be effective if, and only if, such Shareholder (or such Affiliate, as applicable) has not delivered to
        the Secretary of the Company at least ten (10) Business Days prior to the meeting at which any of the matters described in Section 2.01 is to be considered a duly executed irrevocable proxy card in form and substance reasonably acceptable to Parent (provided that sensitive information such as account numbers may be redacted from the proxy card provided to Parent) directing that the Covered Shareholder Shares be voted in accordance with Section 2.01. This proxy (and any proxy granted by an
        Affiliate of a Shareholder will be), if it becomes effective, is (or will be, as applicable) coupled with an interest, is (or will be, as applicable) given as an additional inducement of Parent to enter into the Merger Agreement and shall be
        irrevocable prior to the termination of this Agreement in accordance with Section 5.01, at which time any such proxy shall terminate. Each Shareholder (solely in its capacity as such) shall take such further actions or execute such other instruments (and shall cause its Affiliates to do so) as may
        be reasonably necessary to effectuate the intent of this Section 2.03. Parent may terminate this proxy with respect to a Shareholder (or any Affiliates) at any time at its sole election by written notice provided to such Shareholder with respect to the subject matter of this Agreement or the Merger
        Agreement.

     

      

    
      
        

    

    ARTICLE 3

      

      

      REPRESENTATIONS AND WARRANTIES

    Each Shareholder hereby represents and warrants to Parent as follows:

    Section 3.01 Authorization; Validity of Agreement. Such
        Shareholder (if not a natural person) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization. Such Shareholder has the requisite capacity and authority to execute and deliver this Agreement,
        to perform its obligations hereunder and to consummate the transactions contemplated hereby.  This Agreement has been duly authorized (to the extent authorization is required), executed and delivered by such Shareholder and, assuming due
        authorization, execution and delivery by Parent constitutes a valid and binding obligation of such Shareholder, enforceable against such Shareholder in accordance with its terms, subject to the Bankruptcy and Equity Exception.

    Section 3.02 Ownership. Unless Transferred pursuant to a
        Permitted Transfer, (a) the Existing Shareholder Shares are, and all of the Covered Shareholder Shares during the term of this Agreement will be, Beneficially Owned by such Shareholder or owned of record by such Shareholder and (b) such Shareholder
        has good and valid title to the Existing Shareholder Shares, free and clear of any Encumbrances other than pursuant to this Agreement or under applicable federal or state securities or insurance laws. As of the date hereof, the Existing Shareholder
        Shares constitute all of the Class A Shares Beneficially Owned or owned of record by such Shareholder. Unless Transferred pursuant to a Permitted Transfer, such Shareholder has and will have at all times during the term of this Agreement sole
        voting power (including the right to control such vote as contemplated herein), sole power of disposition, sole power to issue instructions with respect to the matters set forth in Article 2, and sole power to agree to all of the matters set forth in this Agreement, in each case, with respect to
        all of the Existing Shareholder Shares and with respect to all of the Covered Shareholder Shares at all times during the term of this Agreement (other than any shared voting or dispositive power with another Shareholder that is a party hereto and
        is disclosed in the Schedule 13D/A filed by the Shareholders with the SEC on January 19, 2021, but without limiting such Shareholder’s other representations and warranties set forth herein).  To the extent any Shareholder has shared voting or
        dispositive power over any Existing Shareholder Shares that are not set forth opposite such Shareholder’s name on Exhibit A hereto, such Shareholder shall
        take all action necessary to permit the applicable Shareholder whose name is set forth opposite such Existing Shareholder Shares on Exhibit A to comply with
        its obligations under this Agreement and will take no action that would prevent, impair or delay such compliance.

    Section 3.03 No Violation. The execution and delivery of
        this Agreement by such Shareholder does not, and the performance by such Shareholder of its obligations hereunder and the consummation of the transactions contemplated hereby will not, (a) conflict with or violate any applicable Law (subject to
        compliance with the matters referenced in Section 3.04)
        or any certificate or articles of incorporation, as applicable,  bylaws, partnership or operating agreement, trust agreement or other equivalent organizational documents of such Shareholder, or (b) violate, conflict with, result in a breach of any
        provision of or the loss of any benefit under, constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, result in the termination of or a right of termination or cancellation under,
        accelerate the performance required by, or result in the creation of any Encumbrance upon any of the properties or assets of such Shareholder under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, trust agreement,
        deed of trust, license, lease, agreement or other instrument or obligation to which such Shareholder is a party, or by which it or any of its properties or assets may be bound (subject in the case of this clause (b) only to compliance with the
        covenants set forth in Section 4.08 hereof).  Without limiting the foregoing, such Shareholder represents and warrants that it has complied with the terms of the A&R SSCSA (including, but not limited, Section 5.1(c) thereof) through the date
        hereof and prior to entry into this Agreement.

     

      

    
      
        

    

    Section 3.04 Consents and Approvals.
        The execution and delivery of this Agreement by such Shareholder do not, and the performance by such Shareholder of its obligations hereunder and the consummation of the transactions contemplated hereby will not, require such Shareholder or any of
        its Affiliates to obtain any consent, approval, authorization or permit of, or to make any filing with or notification to, any Governmental Authority, other than any filing of any Schedule 13D/A with the SEC.

    Section 3.05 Absence of Litigation. There is no Action
        pending or, to the knowledge of such Shareholder, threatened against or affecting such Shareholder and/or any of its Affiliates before (or, in the case of threatened Actions, that would be before) any arbitrator or Governmental Authority, that has
        had or would reasonably be expected to impair the ability of such Shareholder to perform its obligations hereunder or that, to such Shareholder’s knowledge, in any manner challenges or seeks to prevent, enjoin, alter or materially delay any of the
        transactions contemplated hereby.

    Section 3.06 Adequate Information. Such Shareholder is a sophisticated holder with respect to the Covered Shareholder Shares and has adequate information concerning the transactions contemplated
        hereby or the other transactions contemplated by the Merger Agreement and the Merger and concerning the business and financial condition of the Company and Parent to make an informed decision regarding the matters referred to herein and has
        independently, without reliance upon the Company, Parent, any of their Affiliates or any of the respective Representatives of the foregoing, and based on such information as such Shareholder has deemed appropriate, made such Shareholder’s own
        analysis and decision to enter into this Agreement.

    Section 3.07 Merger Agreement. Such Shareholder has
        received and reviewed a copy of this Agreement and the Merger Agreement, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands and accepts all of the provisions hereof and of the Merger
        Agreement, including that the consummation of the Merger is subject to the conditions set forth in the Merger Agreement, and as such there can be no assurance that the Merger will be consummated.

    Section 3.08 Finder’s Fees. No investment banker, broker,
        finder or other intermediary is entitled to a fee or commission from Parent, Merger Sub or the Company or any of their respective Subsidiaries in respect of this Agreement or the Merger Agreement based upon any arrangement or agreement made by or
        on behalf of such Shareholder.

    Section 3.09 Reliance by Parent. Such Shareholder
        understands and acknowledges that Parent is entering into the Merger Agreement in reliance upon the execution and delivery of this Agreement by such Shareholder and the representations and warranties of such Shareholder contained herein. Such
        Shareholder understands and acknowledges that the Merger Agreement governs the terms of the Merger and the other transactions contemplated thereby.

    Section 3.10 No Parent Representations and Warranties.
        Such Shareholder acknowledges and agrees that neither Parent nor any other Person is making or has made to Shareholder any representations or warranty, expressed or implied, at law or in equity, with respect to or on behalf of Parent or its
        Subsidiaries, or the accuracy or completeness of any information regarding Parent or its Subsidiaries or any other matter furnished or provided to such Shareholder or made available to such Shareholder in any form in expectation of, or in
        connection with, this Agreement, or the transactions contemplated hereby. Such Shareholder specifically disclaims that it is relying upon or has relied upon any such representations or warranties that may have been made by any Person and
        acknowledges and agrees that Parent and its Affiliates have specifically disclaimed and do hereby specifically disclaim any such other representations and warranties.

     

      

    
      
        

    

    ARTICLE 4

      

      

      OTHER COVENANTS

    Section 4.01 Publicity.  The
        Company, Parent and the Shareholders shall agree on the Schedule 13D/A to be filed by the Shareholders announcing the entering into of this Agreement and the transactions contemplated hereby.  No Shareholder shall, and each Shareholder shall cause
        its Affiliates not to, make any public statement, or issue any press release or other written communications to be used in public distribution channels with respect to this Agreement, the Merger Agreement or the transactions contemplated hereby or
        thereby without the prior written consent of Parent and the Company, except to file any Schedule 13D/A to the extent required by applicable Law (and, to the extent applicable, shall reasonably in advance provide copies of any such filings to Parent
        and the Company and shall consider in good faith the comments of  Parent and the Company).

    Section 4.02 Prohibition On Transfers; Other Actions.

    (a) Until the termination of this Agreement in accordance with Section 5.01, each Shareholder agrees that it shall not Transfer any of the Covered Shareholder Shares,
        Beneficial Ownership thereof or any other interest therein (including any voting power with respect thereto) unless such Transfer is a Permitted Transfer. Each Shareholder agrees that it shall not, and shall not permit any Affiliate to, (i) enter
        into any agreement, arrangement or understanding with any Person, or take any other action, that violates or conflicts with or would reasonably be expected to violate or conflict with, or result in or give rise to a violation of or conflict with,
        such Shareholder’s representations, warranties, covenants and obligations under this Agreement or (ii) take any action that could restrict or otherwise affect such Shareholder’s legal power, authority and right to comply with and perform its
        covenants and obligations under this Agreement. Any Transfer in violation of this provision shall be void ab initio. Neither a Shareholder nor
        any of its Affiliates shall request that the Company or its transfer agent register the transfer (book-entry or otherwise) of any of the Covered Shareholder Shares and each Shareholder hereby consents, and will cause its Affiliates to consent, to
        the entry of stop transfer instructions by the Company of any transfer of the Covered Shareholder Shares, unless such transfer is a Permitted Transfer.

    (b) Notwithstanding anything herein to
          the contrary, until the termination of this Agreement in accordance with Section 5.01, if, while a controlled Affiliate of a Shareholder (a “Controlled Affiliate”) holds any Covered Shareholder Shares as a result of a Permitted Transfer, such Controlled Affiliate would
          cease to be a controlled Affiliate in relation to such Shareholder, then such Shareholder shall, and shall cause such Controlled Affiliate to, take all actions necessary to Transfer all of the Covered Shareholder Shares held by such Person back
          to such Shareholder or to another Person that is a controlled Affiliate of such Shareholder prior to such Controlled Affiliate ceasing to be a controlled Affiliate in relation to such Shareholder.

    (c) Each Shareholder shall cause its Affiliates to be bound by the applicable terms of this Agreement as if they were
        parties hereto, including Section 2.01, Section 4.02, Section 4.04 and Section 4.06, and shall take the necessary steps to inform its Representatives of
        the obligations undertaken pursuant to this Agreement. Any violation of this Agreement by any of a Shareholder’s Affiliates or Representatives shall be deemed to be a violation by such Shareholder of this Agreement.

     

      

    
      
        

    

    Section 4.03 Stock Dividends, Etc. In the event of any change in the Company Shares by reason of any reclassification, recapitalization, reorganization, stock split (including a reverse stock split)
        or subdivision or combination, exchange or readjustment of shares, or any stock dividend or stock distribution, merger or other similar change in capitalization, the terms “Existing Shareholder Shares” and “Covered Shareholder Shares” shall be deemed to refer to and include such shares as
        well as all such stock dividends and distributions and any securities into which or for which any or all of such shares may be changed or exchanged or which are received in such transaction.

    Section 4.04 No Solicitation.

    (a) From the date of this Agreement until the earlier of (i) the Effective Time and (ii) the date of the termination
        of the Merger Agreement, each Shareholder agrees that it shall not, and shall cause each of its Affiliates, and its and their respective Representatives not to, directly or indirectly (A) solicit, initiate or knowingly encourage the making of any
        proposal that constitutes or is reasonably likely to lead to a Takeover Proposal, (B) enter into, continue or otherwise participate in any discussions or negotiations regarding, or furnish to any person any of the Company’s or its Subsidiaries’
        confidential information with respect to, any Takeover Proposal, or (C) enter into any Takeover Proposal Documentation with respect to a Takeover Proposal. Notwithstanding the foregoing, if the Company Board of Directors has determined, after
        consultation with its financial advisor and outside counsel, that an unsolicited bona fide written Takeover Proposal constitutes or would reasonably be expected to lead to a Superior Proposal, if the Company is participating in discussions and
        negotiations with, or furnishing information to the person making such Takeover Proposal pursuant to and in compliance with Section 6.06 of the Merger Agreement, then, notwithstanding clauses (A) and (B) above, such Shareholder, its Affiliates and
        their respective Representatives may also participate in discussions and negotiations with, and furnish information to, the person making such Takeover Proposal at the request and direction of the Special Committee of the Company Board of
        Directors. Each Shareholder and its Affiliates, and its and their respective Representatives, shall immediately cease and cause to be terminated all discussions or negotiations with any person conducted heretofore (other than with Parent) with
        respect to any Takeover Proposal, except to the extent any discussions or negotiations by and among the parties to the A&R SSCSA are required pursuant to the terms of such agreement as in effect as of the date hereof.

    (b) For the avoidance of doubt, for the purposes of this Section 4.04, any officer, director, employee, agent or advisor of the Company (in each case, in their
        capacities as such) shall be deemed not to be a Representative of such Shareholder (other than such directors as are party to this Agreement or a trustee of a party to this Agreement).

    Section 4.05 Notice Of Acquisitions. Each Shareholder agrees to notify each of Parent and the Company as promptly as practicable (and in any event within 24 hours after receipt) orally and in writing
        of the number of any additional Company Shares or other securities of the Company of which a Shareholder acquires Beneficial Ownership on or after the date hereof.

    Section 4.06 Regulatory Cooperation.

    (a) In the event any Action by any Governmental Authority or other third party is commenced that questions the
        validity or legality of, or otherwise challenges, the transactions contemplated hereby, or seeks damages in connection herewith, the Shareholders  shall reasonably cooperate with Parent and at Parent’s direction use reasonable best efforts to
        defend against such Action, and, if an injunction or other Order is issued in any such Action, use reasonable best efforts to have such injunction or other Order lifted or extinguished, and to cooperate reasonably with Parent and the Company
        regarding any other impediment to the consummation of the transactions contemplated hereby.

    (b) Each Shareholder hereby acknowledges that the Company, Parent and Merger Sub may publish and disclose in any
        announcement or disclosure required by the SEC and in the Proxy Statement and filings with any Governmental Authority, including Insurance Regulators, whose consent, approval, authorization or waiver is required to consummate the Merger, such
        Shareholder’s identity and ownership of the Covered Shareholder Shares and the nature of such Shareholder’s obligations under this Agreement.

    Section 4.07 Terms of the Merger Agreement. Notwithstanding anything herein to the contrary, each Shareholder acknowledges and agrees that it has no rights under any provision of the Merger
        Agreement, except for such Shareholder’s rights on the terms and conditions set forth therein (a) to receive the Merger Consideration with respect to the Company Shares that it Beneficially Owns pursuant to the Merger Agreement and (b) as an
        express third-party beneficiary to enforce the provisions of Section 6.09 of the Merger Agreement to the extent such Shareholder is otherwise covered under such Section 6.09.

    Section 4.08 Compliance with A&R SSCSA.  Each
        Shareholder agrees that it will comply its obligations under Section 5.1(c) and Section 5.1(d) of the A&R SSCSA.

    Section 4.09 Other Covenants. Each Shareholder agrees to comply with the covenants and
        obligations set forth on Schedule II.

     

      

    
      
        

    

    ARTICLE 5

      

      

      MISCELLANEOUS

    Section 5.01 Termination. This Agreement shall remain in effect until the earlier to occur of (a) the Effective Time, (b) the Expiration Date, (c) with respect to any Shareholder, the entry
        without the prior written consent of such Shareholder into any amendment, modification or waiver to the Merger Agreement that results in (x) a decrease in, or a change in the form of, the Merger Consideration payable to holders of the Company
        Common Shares or (y) an extension of the Outside Termination Date (other as provided by Section 2.02 or Section 8.01(f) of the Merger Agreement). Upon the termination of this Agreement, neither party hereto shall have any further obligations or liabilities hereunder; provided that neither the provisions of this Section 5.01 nor the termination of this Agreement shall (i) relieve any party hereto from any liability of such party to any other party incurred prior to such termination or
        expiration, (ii) relieve any party hereto from any liability to any other party arising out of or in connection with a breach of this Agreement or (iii) if this Agreement terminates because the Effective Time has occurred, terminate the obligations
        under Section 4.01, Section 4.06(a), Section 4.06(b) or Article 5, in each case, except as such obligations specifically terminate in accordance with the terms of such Sections.

    Section 5.02 No Agreement As Director or Officer.
        Notwithstanding any provision in this Agreement to the contrary, (a) nothing in this Agreement shall limit or restrict any officer, director or other Representative of a Shareholder in his or her capacity as a director or officer of the Company
        from acting in such capacity or voting in such capacity in such person’s sole discretion on any matter and (b) the taking of any actions (or any failures to act) by any officer, director or other Representative of a Shareholder in his or her
        capacity as a director or officer of the Company shall not be deemed to constitute a breach of this Agreement.

    Section 5.03 No Group . Nothing in this Agreement shall be interpreted as creating or forming a “group” with any other Person, including Parent, for purposes of Rule 13d-5(b)(1) of the Exchange
        Act or any other similar provision of applicable Law.

     

      

    
      
        

    

    Section 5.04 Notices. All notices, requests, claims, demands and other communications under this Agreement shall be in writing (and made orally if so required pursuant to any Section of this
        Agreement) and shall be deemed given (a) when delivered personally by hand, (b) when sent by email (unless an automated response indicating a failure to be delivered is received) or (c) two (2) Business Days following the day sent by an
        internationally recognized overnight courier (with written confirmation of receipt), in each case, at the following addresses, facsimile numbers and email addresses (or to such other address, facsimile number or email address as a party may have
        specified by notice given to the other party pursuant to this provision):

    
      	
              (i)

            	
              if to Parent to:

            

    

    The Progressive Corporation

      6300 Wilson Mills Road

      Mayfield Village, Ohio 44143

      Email: secretary@progressive.com

      Attention: Chief Legal Officer

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

    Baker & Hostetler LLP

      Key Tower, 127 Public Square, Suite 2000

      Cleveland, Ohio 44114

      Email: jgherlein@bakerlaw.com

      Attention: John M. Gherlein

      Email: jharrington@bakerlaw.com

      Attention: John J. Harrington

    
      	
              (ii)

            	
              if to a Shareholder, to the address set forth across such
                Shareholder’s name on Schedule I.

            

    

    
      	
              (iii)

            	
              if to Company to:

            

    

    Protective Insurance Corporation

      111 Congressional Blvd., Suite 500

      Carmel, IN 46032

      Email: swignall@protectiveinsurance.com

      Attention: General Counsel

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

    

    

    Skadden, Arps, Slate, Meagher & Flom LLP

    One Manhattan West,

      New York, New York 10001

      Email: todd.freed@skadden.com

      Attention: Todd E. Freed

     

    

    
      
        

    

    

    

    Section 5.05 Interpretation.

    (a) As used in this Agreement, references to the following terms have the meanings indicated:

    
      	
              (i)

            	
              to the Recitals, Sections, Exhibits or Schedules are to a
                Recital, Section, Exhibit or Schedule to, this Agreement unless otherwise clearly indicated to the contrary;

            

    

    
      	
              (ii)

            	
              to “hereof,” “herein,” “hereunder,” “hereby,” “herewith” and
                words of similar import refer to this Agreement as a whole and not to any particular Article, Section or clause of this Agreement, unless otherwise clearly indicated to the contrary;

            

    

    
      	
              (iii)

            	
              to the “date of this Agreement,” “the
                date hereof” and words of similar import refer to February 14, 2021; and

            

    

    
      	
              (iv)

            	
              to “this Agreement” includes the Exhibits and Schedules to
                this Agreement.

            

    

    (b) Whenever the words “include,” “includes” or “including” are used in this Agreement, they will be deemed to be
        followed by the words “without limitation.”  The word “or” shall not be exclusive.  Any singular term in this Agreement will be deemed to include the plural, and any plural term the singular.  All pronouns and variations of pronouns will be deemed
        to refer to the feminine, masculine or neuter, singular or plural, as the identity of the Person referred to may require.  Where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning.

    (c) The headings contained in this Agreement are for reference purposes only and will not affect in any way the
        meaning or interpretation of this Agreement.

    (d) References to a “party” hereto means Parent, Company or a Shareholder and references to “parties” hereto means
        Parent, Company and the Shareholders unless the context otherwise requires.

    (e) The parties have participated jointly in the negotiation and drafting of this Agreement; consequently, in the
        event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as jointly drafted by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
        of any provision of this Agreement.

    (f) No summary of this Agreement prepared by or on behalf of any party shall affect the meaning or interpretation of
        this Agreement.

    Section 5.06 Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts, including by facsimile or by email with .pdf attachments, each of which shall be an
        original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed and delivered (by electronic
        communication, facsimile or otherwise) by the other party hereto. Until and unless each party has received a counterpart hereof signed by the other party hereto, this Agreement shall have no effect and no party shall have any right or obligation
        hereunder (whether by virtue of any other oral or written agreement or other communication).

    Section 5.07 Entire Agreement. This Agreement (and the Schedules and Exhibits attached hereto) and, to the extent referenced herein, the Merger Agreement, constitute the entire
        agreement among the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, both oral and written, among the parties with respect to the subject matter hereof.

     

      

    
      
        

    

    Section 5.08 Governing Law; Consent To Jurisdiction; Waiver Of
          Jury Trial.

    (a) This Agreement and all claims or causes of action (whether in contract, tort or otherwise) that may be based
        upon, arising out of or relating to this Agreement or the negotiation, execution or performance of this Agreement or the transactions contemplated hereby (including any claim or cause of action based upon, arising out of or related to any
        representation or warranty made in or in connection with this Agreement) shall be governed by and construed in accordance with the laws of the State of Indiana, without respect to any conflicts of law principle that might require the application of
        the laws of any other jurisdiction. Each of the parties hereto irrevocably and unconditionally (i) consents and submits, for itself and its property, to the exclusive personal jurisdiction of the United States District Court for the Southern
        District of Indiana (or, solely if the United States District Court for the Southern District of Indiana does not have subject matter jurisdiction over a particular matter, the Indiana Commercial Court located in Hamilton County, Indiana) (“Chosen Courts”), and any appellate court to which a decision of such Chosen Courts may be appealed (in which case, solely for purposes of an appeal
        from any decision of the Chosen Court) in connection with any Action based upon, arising out of or relating to this Agreement or the transactions contemplated hereby, including, but not limited to, the negotiation, execution or performance of this
        Agreement and agrees not to bring any such Action in any court other than the Chosen Courts, (ii) waives any objection which it may now or hereafter have to the laying of venue of any such Action in the Chosen Courts, including, but not limited to,
        any objection based on any party’s place of incorporation, place of business or domicile, (iii) waives, to the fullest extent permitted by Law, any defense to the maintenance of any such Action in the Chosen Courts, whether based on the Chosen
        Courts being an inconvenient forum or otherwise and (iv) agrees that any final, non-appealable judgment in any such Action shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law
        and waives any objection to such enforcement.  Each of the parties consents and agrees that service of process, summons, notice or document for any action permitted hereunder may be delivered by registered mail addressed to it at the applicable
        address set forth in Section 5.04.

    (b) EACH OF THE PARTIES ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY BE BASED UPON, ARISING OUT OF OR
        RELATING TO THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY, FOR AN ON BEHALF OF ITSELF AND ITS AFFILIATES, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL
        BY JURY FOR ANY DISPUTE BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE BREACH, TERMINATION OR VALIDITY HEREOF OR ANY TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES CERTIFIES AND ACKNOWLEDGES THAT (i) NEITHER THE OTHER
        PARTIES NOR THEIR RESPECTIVE REPRESENTATIVES, AGENTS OR ATTORNEYS HAVE REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH OF THE PARTIES UNDERSTANDS AND
        HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH OF THE PARTIES MAKES THIS WAIVER VOLUNTARILY AND (iv) EACH OF THE PARTIES HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS OF THIS
        SECTION 5.08(b). ANY PARTY MAY FILE AN ORIGINAL
        COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

    Section 5.09 Amendment; Waiver.

    (a) This Agreement may not be amended, modified or supplemented except by an instrument in writing signed on behalf
        of all of the parties.

    (b) At any time prior to the Effective Time, each of the parties may (i) extend the time for the performance of any
        of the obligations or other acts of the other party, (ii) waive any inaccuracies in the representations and warranties of the other party set forth in this Agreement or (iii)  waive compliance with any of the covenants, agreements or conditions of
        the other parties set forth in this Agreement.  Any such extension or waiver by a party shall be valid only if set forth in an instrument in writing signed on behalf of such party.  The failure of any party to this Agreement to assert any of its
        rights under this Agreement or otherwise shall not constitute a waiver of those rights.

     

      

    
      
        

    

    Section 5.10 Specific Performance. The parties agree that irreparable damage would occur and that the parties would not have an adequate remedy at law in the event that any provision of this
        Agreement were not performed in accordance with its specific terms or were otherwise breached and that money damages would not be an adequate remedy for any such failure to perform or breach.  The parties accordingly agree that, without posting a
        bond or other undertaking, the parties (or any of them) shall be entitled to injunctive or other equitable relief to prevent a breach or breaches of this Agreement or to enforce specifically the terms and provisions of this Agreement in addition to
        and without precluding or otherwise rendering unavailable any other remedy to which they are or could be entitled at law or in equity.  In the event that any party hereto brings any Action to prevent a breach or breaches of this Agreement or to
        enforce specifically the terms and provisions of this Agreement, no party may allege or argue that there is an adequate remedy at law and each party hereto waives any defense or counterclaim in this regard.  The parties further agree that (a) by
        seeking any remedy provided for in this Section 5.10, a
        party shall not in any respect waive its right to seek any other form of relief that may be available to a party under this Agreement and (b) nothing contained in this Section 5.10 shall require any party to institute any action for (or limit any party’s right to institute any action for) specific performance under this Section 5.10 before exercising any other right under this
        Agreement.

    Section 5.11 Severability. If any term, provision, covenant or restriction of this Agreement is held by the Chosen Courts or other Governmental Authority to be invalid, void or unenforceable, the
        remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions
        contemplated hereby is not affected in any manner materially adverse to any party.  Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as
        possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

    Section 5.12 Successors And Assigns; Third Party Beneficiaries. Other than to a transferee pursuant to a Permitted Transfer (which, for the avoidance of doubt, will not relieve such Shareholder of its
        obligations hereunder), neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned or delegated, in whole or in part, by operation of Law or otherwise by any of the parties without the prior
        written consent of the other parties. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and assigns. This Agreement  is not intended
        to and does not confer upon any person other than the parties hereto any rights or remedies hereunder, including the right to rely upon the representations and warranties set forth herein.

    Section 5.13 Expenses. All costs and expenses incurred in
        connection with this Agreement shall be paid by the party incurring such cost or expense.

    [Remainder of this page intentionally left blank]

    

    

    
      
        

    

    

    

    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed (where applicable, by
      their respective officers or other authorized Person thereunto duly authorized) as of the date first written above.

    THE PROGRESSIVE CORPORATION

    	

          	By:	
            

              Name:

              Title:

          

    
      
        

    

    

    

    PROTECTIVE INSURANCE CORPORATION

    	

          	By:	
            

              Name:

              Title:

          

    
      
        

    

    

    

    SHAPIRO FAMILY INVESTMENT PARTNERSHIP – NATHAN SHARE

    

    

    By: 

        Name: Stephen Gray, not individually, but

    solely as Trustee of each of its

    general partners

    Title: Trustee of each of its general partners

    

    

    

    

    NATHAN SHAPIRO REVOCABLE TRUST DATED 10/7/87

    

    

    By: 

        Name: Lesley Beider Stillman, not

    individually, but solely as

    Co-Trustee

      Title: Co-Trustee

    

    

    

    

    By: 

        Name: Randy Shapiro, not individually,

    but solely as Co-Trustee

      Title: Co-Trustee

    

    

    

    

    By: 

        Name: Daniel Shapiro, not individually,

    but solely as Co-Trustee

      Title: Co-Trustee

    

    

    

    

    By: 

        Name: Steven A. Shapiro, not individually,

    but solely as Co-Trustee

      Title: Co-Trustee

    

    

    

    

    NS (FLORIDA) ASSOCIATES INC.

    

    

    By: 

        Name: Nathan Shapiro

        Title: Director and President

    
      
        

    

    

    

    

    

    

    

    

      

      Daniel Shapiro

    

    

    

    

    

      

      Emily Rita Shapiro

    

    

    

    

    STEVEN A. SHAPIRO C/F JACKSON HENRY SHAPIRO UGTMAIL

    

    

    By: 

        Name: Steven A. Shapiro

    

    

    

    

    STEVE SHAPIRO C/F JORDYN REESE SHAPIRO UTMA/IL

    

    

    By: 

        Name: Steven A. Shapiro

    

    

    

    

    NEW HORIZON (FLORIDA) ENTERPRISES INC.

    

    

    By: 

    Name: Nathan Shapiro

    Title: Director and President

    

    

    

    

    DANIEL M. SHAPIRO C/F NICK E. SHAPIRO UTMA/IL

    

    

    By: 

        Name: Daniel Shapiro

    

    

    

    

    

      

      Steven A. Shapiro

    
      
        

    

    

    

    

    

    

    

    ILLINOIS DIVERSIFIED COMPANY, LLC

    

    

    By: 

        Name: Steven A. Shapiro

        Title: Manager

    

    

    

    

    By: 

        Name: Daniel Shapiro

        Title: Manager

    

    

    

    

    NORTON SHAPIRO REVOCABLE TRUST

    

    

    By: 

        Name: Richard Horwood

        Title: Trustee

    

    

    

    

    NORTON SHAPIRO 2008 TRUST

    

    

    By: 

        Name: Richard Horwood

        Title: Co-Trustee

    

    

    

    

    By: 

        Name: Cheryl Kreiter

        Title: Co-Trustee

    

    

    

    

    NORTON SHAPIRO FAMILY LLC

    

    

    By: NS Family Trust #1

    Its: Manager

    

    

    By: 

        Name: Richard Horwood, not individually,

    but solely as Trustee of the NS

    Family Trust #1

    Title: Trustee

    
      
        

    

    

    

    

    

    

    

    NSF INVESTMENT PARTNERSHIP

    

    

    By: 

        Name: Richard Horwood, not individually,

    but solely as Trustee of each of its general partners

    Title: Trustee of each of its general partners

    

    

    

    

    

      

      Nathan Shapiro

    

    

    

    

    
      
        

    

    

    

    Schedule I

    	
            Shareholder

          	
            Address for Notices

          
	
            Shapiro Family Investment Partnership – Nathan Share, an Illinois general partnership

          	
            Shapiro Family Investment Partnership - Nathan Share

            c/o SF Investments, Inc.

            799 Central Ave., # 350

            Highland Park, IL 60035

            Attn: Steven Shapiro and DeeDee Silverstein

          
	
            Nathan Shapiro Revocable Trust Dated 10/7/87

          	
            Nathan Shapiro Revocable Trust Dated 10/7/87

            c/o SF Investments, Inc.

            799 Central Ave., # 350

            Highland Park, IL 60035

            Attn: Steven Shapiro and DeeDee Silverstein

          
	
            NS (Florida) Associates Inc., a Florida corporation

          	
            NS (Florida) Associates Inc.

            c/o SF Investments, Inc.

            799 Central Ave., # 350

            Highland Park, IL 60035

            Attn: Steven Shapiro and DeeDee Silverstein

          
	
            Daniel Shapiro

          	
            Daniel Shapiro

            c/o SF Investments, Inc.

            799 Central Ave., # 350

            Highland Park, IL 60035

            Attn: Steven Shapiro and DeeDee Silverstein

          
	
            Emily Rita Shapiro

          	
            Emily Rita Shapiro

            c/o SF Investments, Inc.

            799 Central Ave., # 350

            Highland Park, IL 60035

            Attn: Steven Shapiro and DeeDee Silverstein

          
	
            Steven A. Shapiro C/F Jackson Henry Shapiro UGTMAIL

          	
            Steven A. Shapiro C/F Jackson Henry Shapiro UGTMAIL

            c/o SF Investments, Inc.

            799 Central Ave., # 350

            Highland Park, IL 60035

            Attn: Steven Shapiro and DeeDee Silverstein

          
	
            Steve Shapiro C/F Jordyn Reese Shapiro UTMA/IL

          	
            Steve Shapiro C/F Jordyn Reese Shapiro UTMA/IL

            c/o SF Investments, Inc.

            799 Central Ave., # 350

            Highland Park, IL 60035

            Attn: Steven Shapiro and DeeDee Silverstein

          
	
            New Horizon (Florida) Enterprises Inc., a Florida corporation

          	
            New Horizon (Florida) Enterprises Inc.

            c/o SF Investments, Inc.

            799 Central Ave., # 350

            Highland Park, IL 60035

            Attn: Steven Shapiro and DeeDee Silverstein

          
	
            Daniel M. Shapiro C/F Nick E. Shapiro UTMA/IL

                 

          	
            Daniel M. Shapiro C/F Nick E. Shapiro UTMA/IL

            c/o SF Investments, Inc.

            799 Central Ave., # 350

            Highland Park, IL 60035

            Attn: Steven Shapiro and DeeDee Silverstein

          
	
            Steven A. Shapiro

          	
            Steven A. Shapiro

            c/o SF Investments, Inc.

            799 Central Ave., # 350

            Highland Park, IL 60035

            Attn: Steven Shapiro and DeeDee Silverstein

          
	
            Illinois Diversified Company, LLC, an Illinois limited liability company

          	
            Illinois Diversified Company, LLC

            c/o SF Investments, Inc.

            799 Central Ave., # 350

            Highland Park, IL 60035

            Attn: Steven Shapiro and DeeDee Silverstein

          
	
            Norton Shapiro Revocable Trust

          	
            Norton Shapiro Revocable Trust

            c/o Horwood Marcus & Berk

            500 W. Madison St., #3700

            Chicago, IL 60661

            Attn: Richard Horwood

          
	
            Norton Shapiro 2008 Trust

          	
            Norton Shapiro 2008 Trust

            c/o Horwood Marcus & Berk

            500 W. Madison St., #3700

            Chicago, IL 60661

            Attn: Richard Horwood

            and

            Norton Shapiro 2008 Trust

            c/o Cheryl Kreiter

            1615. N. Wolcott, #401

            Chicago, IL 60622

          
	
            Norton Shapiro Family LLC, an Illinois limited liability company

          	
            Norton Shapiro Family LLC

            c/o Horwood Marcus & Berk

            500 W. Madison St., #3700

            Chicago, IL 60661

            Attn: Richard Horwood

          
	
            NSF Investment Partnership, an Illinois general partnership

          	
            NSF Investment Partnership

            c/o Horwood Marcus & Berk

            500 W. Madison St., #3700

            Chicago, IL 60661

            Attn: Richard Horwood

          
	
            Nathan Shapiro

          	
            Nathan Shapiro

            c/o SF Investments, Inc.

            799 Central Ave., # 350

            Highland Park, IL 60035

          

    
      
        

    

    

    

    Schedule II

    Prior to the termination of this Agreement, each Shareholder agrees that it shall not, and shall cause its Affiliates and Representatives
      not to, directly or indirectly (i) take or encourage any third party to take any action, including filing any claim, action, suit or proceeding in a court of applicable jurisdiction seeking a judicial order, to demand or cause an annual meeting of
      the Company’s shareholders to be held or (ii) in the event that the Company holds an annual meeting of the Company’s shareholders prior to the termination of this Agreement, nominate any director candidate for election at such meeting or solicit
      proxies in support of any nominee for election at such meeting (notwithstanding any advance notice of any such nominations that may have been provided).

     

    

    
      
        

    

    

    

    Exhibit A

    OWNERSHIP OF EXISTING SHAREHOLDER SHARES

    	
            Beneficial Owner

          	
            Number of Existing Shareholder Shares

          	
            Direct Beneficial Ownership

          
	
            Shapiro Family Investment Partnership – Nathan Share, an Illinois general partnership

          	
            128,410 Class A Shares

          	
            128,410 Class A Shares

          
	
            Nathan Shapiro Revocable Trust Dated 10/7/87

          	
            274,166 Class A Shares

                 

          	
            274,166 Class A Shares

          
	
            NS (Florida) Associates Inc., a Florida corporation

          	
            173,062 Class A Shares

          	
            173,062 Class A Shares

          
	
            Daniel Shapiro

          	
            295,608 Class A Shares

                 

          	
            37 Class A Shares

          
	
            Emily Rita Shapiro

          	
            30 Class A Shares

                 

          	
            30 Class A Shares

          
	
            Steven A. Shapiro C/F Jackson Henry Shapiro UGTMAIL

          	
            30 Class A Shares

          	
            30 Class A Shares

          
	
            Steve Shapiro C/F Jordyn Reese Shapiro UTMA/IL

          	
            10 Class A Shares

          	
            10 Class A Shares

          
	
            New Horizon (Florida) Enterprises Inc., a Florida corporation

          	
            44,859 Class A Shares

          	
            44,859 Class A Shares

          
	
            Daniel M. Shapiro C/F Nick E. Shapiro UTMA/IL

          	
            30 Class A Shares

          	
            30 Class A Shares

          
	
            Steven A. Shapiro

          	
            317,916 Class A Shares

                 

          	
            22,335 Class A Shares

          
	
            Illinois Diversified Company, LLC, an Illinois limited liability company

          	
            21,375 Class A Shares

          	
            21,375 Class A Shares

          
	
            Norton Shapiro Revocable Trust

          	
            3,277 Class A Shares

                 

          	
            3,277 Class A Shares

          
	
            Norton Shapiro 2008 Trust

          	
            116,019 Class A Shares

                 

          	
            116,019 Class A Shares

          
	
            Norton Shapiro Family LLC, an Illinois limited liability company

          	
            7,500 Class A Shares

          	
            7,500 Class A Shares

          
	
            NSF Investment Partnership, an Illinois general partnership

          	
            128,424 Class A Shares

          	
            128,424 Class A Shares

          
	
            Nathan Shapiro

          	
            217,921 Class A Shares

                 

          	
            0 Class A Shares

          
	
            TOTAL

          	
            919,564 Class A SharesEX-10.1

 Exhibit 10.1 

STOCK PURCHASE AGREEMENT 
 THIS STOCK
PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of February 12, 2021 (the “Effective Date”), by and between Adicet Bio, Inc., a Delaware corporation (the
“Company”), and the purchasers listed on Schedule A hereto (each a “Purchaser” and, collectively, the “Purchasers”). 

WHEREAS, the Company and certain of the Purchasers are parties to that certain Funding Agreement, dated April 28, 2020 (the “Funding
Agreement”) and a related Escrow Agreement, dated September 15, 2020 (“Escrow Agreement”), by and among PNC, National Association, a national banking association (the “Escrow Agent”);

 WHEREAS, the Company and certain of the Purchasers are parties to that certain Non-Escrow Funding
Agreement, dated April 28, 2020 (the “Non-Escrow Funding Agreement”); 

WHEREAS, the Company has entered into that certain Underwriting Agreement, dated as of February 10, 2021, by and among the Company and Guggenheim
Securities, LLC, providing for the sale of 10,575,513 shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), at a price per share of $13.00, resulting in gross proceeds to the Company of
$137.5 million (the “Offering”) pursuant to an effective registration statement on Form S-3 (File No. 333-229499) (the
“Registration Statement”) and prospectus supplement filed with the Securities and Exchange Commission pursuant to Rule 424(b)(5) on February 11, 2021 (the “Final Prospectus”) under the Securities
Act of 1933, as amended (the “Securities Act”), which constitutes a Qualified Financing (as defined in the Funding Agreement); 

WHEREAS, pursuant to the Funding Agreement and Non-Escrow Funding Agreement, the Company and Purchasers desire
to enter into this Agreement, pursuant to which the Purchasers agree to purchase shares of Common Stock in a private placement that would close concurrently with the Offering as described herein; 

WHEREAS, at the Initial Closing (as defined below), the Company and the Purchasers party to the Funding Agreement (the “Escrow
Purchasers”) shall, pursuant to the Escrow Agreement, instruct the Escrow Agent to release the Escrow Funds (as defined in the Escrow Agreement) to the Company in accordance with the terms of this Agreement, the Escrow Agreement and the
Funding Agreement; and 
 WHEREAS, at the Additional Closing, the Purchasers party to the Non-Escrow Funding
Agreement (the “Non-Escrow Purchasers”) shall, in accordance with the terms of the Non-Escrow Funding Agreement, fund, by wire transfer of
immediately available funds to the Company the amount set forth opposite such Purchaser’s name on Schedule A hereto. 

AGREEMENT 
 NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual promises, representations, warranties, and covenants hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 
 1. STOCK PURCHASE REQUIREMENT. Upon the closing of the Offering, and pursuant to the Funding Agreement and Non-Escrow Funding Agreement, each Purchaser shall purchase, subject to the terms and conditions set forth in this Agreement, in a concurrent private placement exempt from the registration requirements of the
Securities Act, that number of shares, rounded down to avoid fractional shares (the “Shares”), determined by dividing the amount set forth opposite each Purchaser’s name in Schedule A (the “Purchase
Price”) by the price per share at which the Common Stock is sold to the public in the Offering, as set forth on the cover page of the Final Prospectus, and such purchase will occur concurrently with, but conditioned upon, the closing of
the Offering (the “Initial Closing”). Notwithstanding the foregoing, after the Initial Closing, the Company may sell, on the same terms and conditions as those contained in this Agreement, any remaining Shares not purchased
at the Initial Closing to one or more Non-Escrow Purchasers (the “Additional Closing”; each of the Initial Closing and the Additional Closing are referred to herein as a
“Closing”). In the event there is more than one purchase and sale of the Shares pursuant to this Section 1, the term “Closing” shall apply to each such purchase and sale unless otherwise specified. 

 2. AGREEMENT TO SELL AND PURCHASE. 

2.1 Closing. At the Closing, each Purchaser agrees to purchase, and the Company agrees to issue and sell to such Purchaser, subject to the terms
and conditions set forth in this Agreement, in a concurrent private placement exempt from the registration requirements of the Securities Act, the Shares at a price per share equal to the price at which the Common Stock is sold to the public in the
Offering, as set forth on the cover page of the Final Prospectus. 
 2.2 Closing Date. The Initial Closing shall take place at the date and
time set for, and concurrently with, the closing of the Offering at the offices of Goodwin Procter LLP, 100 Northern Ave., Boston, MA 02210, or such other time or place as the Company and the Escrow Purchasers may mutually agree (the date of such
Initial Closing is hereinafter referred to as the “Initial Closing Date”). The Additional Closing shall take place on or about February 26, 2021 at the offices of Goodwin Procter LLP, 100 Northern Ave.,
Boston, MA 02210, or such other time or place as the Company and the Non-Escrow Purchasers may mutually agree (the date of such Additional Closing is hereinafter referred to as the
“Additional Closing Date” and, in the event there is more than one Closing, such closings shall be collectively referred to as the “Closing Date”). Promptly following each Closing,
subject to the terms and conditions set forth in this Agreement and in consideration of the payment by each Purchaser of the aggregate Purchase Price for the Shares to be purchased by such Purchaser at such Closing, the Company (or its transfer
agent) will deliver the Shares. 
 2.3 Notification of Escrow Agent. Pursuant to Section 1.4(a)(i) of the Escrow Agreement, a written notice, in
the form of Schedule B hereto, signed by an authorized representative of the Company and the Escrow Purchasers that funded in the aggregate two-thirds or more of the Total Funding Amount (as defined in the
Escrow Agreement), shall be delivered to the Escrow Agent at least two (2) days prior to the Initial Closing. 
 2.4 Deliveries at Closing by
Company. At the Closing, and upon satisfaction or waiver of the conditions set forth in Section 5, the Company shall deliver to Purchasers the instruments, consents, certificates and other documents required of the Company pursuant to
Section 5.1. 
 2.5 Actions by Purchasers at Closing. At the Initial Closing, (to take place following the satisfaction or waiver of the
conditions set forth in Section 5), the Escrow Agent shall release the Escrow Funds to the Company as full payment of the Purchase Price and, at the Additional Closing, the Non-Escrow Purchasers shall
fund, by wire transfer of immediately available funds to the Company, the Purchase Price and the Company shall instruct its transfer agent to credit each Purchaser’s account with the Shares at the Initial Closing or the Additional Closing, as
applicable. 
 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

On the date hereof, the Company hereby represents and warrants to Purchasers that the representations and warranties in Section 3.1, 3.2, 3.3 and 3.4 are
true and correct as of the date hereof. 
 3.1 Organization; Good Standing. The Company has been duly organized and is validly existing as a
corporation in good standing under the laws of the State of Delaware and has corporate power and authority to enter into and perform its obligations under this Agreement. 

3.2 Authorization and Description of Securities. The Shares have been duly authorized for issuance and sale to the Purchasers pursuant to this
Agreement and, when issued and delivered by the Company pursuant to this Agreement against payment of the consideration set forth herein, will be validly issued and fully paid and nonassessable; and the issuance of the Shares is not subject to the
preemptive or other similar rights of any securityholder of the Company that have not been duly and validly waived in writing as of the date of this Agreement. The Shares conform in all material respects to all statements relating thereto contained
in the Final Prospectus and such description conforms, in all material respects, to the rights set forth in the instruments defining the same. No holder of Shares will be subject to personal liability by reason of being such a holder. 

 3.3 Authorization; Binding Obligations. All corporate action on the part of the Company, its
officers, directors and stockholders necessary for the authorization of this Agreement, and the performance of all obligations of the Company hereunder has been taken. This Agreement, when executed and delivered, will be a valid and binding
obligation of the Company enforceable against the Company in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of
creditors’ rights, and (b) as limited by general principles of equity that restrict the availability of equitable remedies. 
 3.4 Non-Contravention. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not result in any violation or default (a) of any provision of
its certificate of incorporation or bylaws, or (b) in any material respect of any provision of (i) any instrument, judgment, order, writ or decree to which it is a party or by which it is bound, or (ii) any federal or state statute,
rule or regulation applicable to the Company. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority on the part of the Company is
required in connection with the execution and delivery of this Agreement or the consummation of the sale and issuance of Shares contemplated by this Agreement, except for the filing of notices of the sale of Shares pursuant to Regulation D
promulgated under the Securities Act and applicable state securities laws. The Company is not in violation or default (a) of any provision of its certificate of incorporation or bylaws, or (b) in any material respect of any provision of
(i) any instrument, judgment, order, writ or decree to which it is a party or by which it is bound, or (ii) any federal or state statute, rule or regulation applicable to the Company. 

3.5 Private Placement. Assuming the accuracy of the representations, warranties and covenants of each Purchaser set forth in Section 4 of
this Agreement, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Purchasers under this Agreement. 

3.6 Closing Date Representations. On the Initial Closing Date, the Company hereby represents and warrants to Purchasers that the following
representations and warranties are true and correct as of the Initial Closing (except to the extent any such representations and warranties expressly relate to an earlier date, in which case such representations and warranties of the Company are
true and correct as of such earlier date); provided, however, that the representations and warranties of the Company included herein shall be deemed to be updated and modified by information included in the Registration Statement, including
but not limited to the Final Prospectus, a copy of which shall have been furnished to Purchasers as early as reasonably possible prior to the Closing and on which Purchasers shall be entitled to rely, including any prospectus filed pursuant to Rule
424 under the Securities Act, and any free writing prospectuses, relating to the Offering. 
 (a) Organization; Qualification.
The Company has been duly organized and is validly existing as a corporation in good standing under the laws of the State of Delaware and has corporate power and authority to enter into and perform its obligations under this Agreement. 

(b) Subsidiaries. Each “significant subsidiary” of the Company (as such term is defined in Rule 1-02 of Regulation S-X) (each, a “Subsidiary” and, collectively, the “Subsidiaries”) has been duly organized and is validly
existing in good standing under the laws of the jurisdiction of its incorporation or organization, has corporate or similar power and authority to own, lease and operate its properties and to conduct its business as described in the Registration
Statement and the Final Prospectus. Except as otherwise disclosed in the Registration Statement and the Final Prospectus, all of the issued and outstanding capital stock of each Subsidiary has been duly authorized and validly issued, is fully paid
and nonassessable and is owned by the Company, directly or through subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance, claim or equity. None of the outstanding shares of capital stock of any Subsidiary were
issued in violation of the preemptive or similar rights of any securityholder of such Subsidiary. 
 (c) Registration
Statement. The Registration Statement and Final Prospectus do not, as of the filing date and effective date of such Registration Statement, and as of the Initial Closing Date, contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 

 (d) Authorization; Binding Obligations. All corporate action on the part of
the Company, its officers, directors and stockholders necessary for the authorization of this Agreement, the performance of all obligations of the Company hereunder at the Closing and the authorization, sale, issuance and delivery of the Shares
pursuant hereto has been taken. This Agreement constitutes a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other laws of general application affecting enforcement of creditors’ rights, and (b) as limited by general principles of equity that restrict the availability of equitable remedies. 

(e) Valid Issuance of Shares. The Shares that are being purchased by Purchasers hereunder, when issued, sold and delivered in
accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, fully paid, and nonassessable, and will be transferred to Purchasers free of liens, encumbrances and restrictions on transfer other
than (a) restrictions on transfer under this Agreement and under applicable state and federal securities laws, (b) restrictions on transfer under the lock-up agreement entered into by Purchasers for
the benefit of the underwriters in the Offering, and (c) any liens, encumbrances or restrictions on transfer that are created or imposed by Purchasers. Subject in part to the truth and accuracy of Purchasers’ representations set forth in
Section 4 of this Agreement, the offer, sale and issuance of the Shares as contemplated by this Agreement are exempt from the registration requirements of applicable state and federal securities laws. 

(f) Non-Contravention. No consent, approval, order or authorization of, or registration,
qualification, designation, declaration or filing with, any federal, state or local governmental authority on the part of the Company is required in connection with the consummation of the sale and issuance of Shares contemplated by this Agreement,
except for the filing of notices of the sale of Shares pursuant to Regulation D promulgated under the Securities Act and applicable state securities laws. The Company is not in violation or default (a) of any provision of its certificate of
incorporation or bylaws, or (b) in any material respect of any provision of (i) any instrument, judgment, order, writ or decree to which it is a party or by which it is bound, or (ii) any federal or state statute, rule or regulation
applicable to the Company. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not result in any such violation or constitute, with or without the passage of time and giving of
notice, either (i) a default in any material respect of any such instrument, judgment, order, writ or decree or (ii) an event that results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension,
revocation, impairment, forfeiture, or nonrenewal of any material permit, license, authorization or approval applicable to the Company. 
 4.
REPRESENTATIONS AND WARRANTIES OF PURCHASER. 
 4.1 Requisite Power and Authority. Each Purchaser hereby represents and warrants to the
Company, severally but not jointly, and solely with respect to such Purchaser that: All action on the part of such Purchaser, its officers, directors, managers, partners and equityholders necessary for the authorization, execution and delivery of
this Agreement and the performance of all obligations of such party hereunder occurring at or prior to the Closing has been taken or will be taken prior to the Closing. This Agreement constitutes a valid and legally binding obligation of such party,
enforceable against such party in accordance with their respective terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally or (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies. 

4.2 Closing Date Representations. On the Closing Date, each Purchaser hereby represents and warrants to the Company, severally but not jointly,
and solely with respect to such Purchaser as follows: 
 (a) Requisite Power and Authority. All action on the part of such
Purchaser, its officers, directors, managers, partners and equityholders necessary for the authorization, execution and delivery of this Agreement and the performance of all obligations of such party hereunder occurring at or prior to the Closing
has been taken or will be taken prior to the Closing. This Agreement constitutes a valid and legally binding obligation of such party, enforceable against such party in accordance with their respective terms, except (a) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally or (b) as limited by laws relating to the availability of specific performance, injunctive relief
or other equitable remedies. 

 (b) Investment Representations. Such Purchaser understands that the Shares
have not been registered under the Securities Act. Such Purchaser also understands that the Shares are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in part upon such Purchaser’s
representations contained in this Agreement. Such Purchaser hereby represent and warrant, solely as to such Purchaser, as follows: 
 (i)
Purchaser Bears Economic Risk. Such Purchaser is an investor in securities of companies in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of the transactions contemplated by this
Agreement and any investment in the Shares, and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the transactions contemplated by this Agreement, including any investment in
the Shares. Such Purchaser acknowledges that this Agreement and any acquisition of Shares involves a high degree of risk, and represents that it is able, without materially impairing its financial condition, to undertake the transactions
contemplated by this Agreement and hold any Shares for an indefinite period of time and to suffer a complete loss of its investment. 
 (ii)
Acquisition for Own Account. Such Purchasers is acquiring the Shares for investment for such Purchaser’s own account not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and such Purchaser has
no present intention of selling, granting any participation in, or otherwise distributing the same and such Purchaser does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such
person or to any third person, with respect to the foregoing. 
 (iii) Purchaser Can Protect Its Interest. Such Purchaser represents
that by reason of its, or of its management’s, business or financial experience, such Purchaser has the capacity to protect its own interests in connection with the transactions contemplated in this Agreement. Further, such Purchaser is aware
of no publication of any advertisement in connection with the transactions contemplated in this Agreement. 
 (iv) Accredited
Investor. Such Purchaser (other than any Purchaser indicated on Schedule A as a “Regulation S Investor”) is an “accredited investor” within the meaning of SEC Rule 501 of Regulation D, as presently in effect; solely
with respect to any Purchaser indicated on Schedule A as a “Regulation S Investor”, such Purchaser certifies that such Purchaser (a) is not a “U.S. person” within the meaning of SEC Rule 902 of Regulation S, as
presently in effect, and that such Purchaser is not acquiring the Shares for the account or benefit of any such U.S. person, (b) agrees to resell the Shares only in accordance with the provisions of Regulation S, pursuant to registration under
the Securities Act, or pursuant to an available exemption from registration and agrees not to engage in hedging transactions with regard to the Shares unless in compliance with the Securities Act, (c) agrees that the Company is hereby required
to refuse to register any transfer of any Shares issued to such Purchaser not made in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act, or pursuant to an available exemption from registration and
(d) agrees that any certificates or book entries for any shares issued to such Purchaser shall contain the following legend: 
 THE
TRANSFER OF THESE SECURITIES IS PROHIBITED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S AS PROMULGATED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), PURSUANT
TO REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION, AND HEDGING TRANSACTIONS INVOLVING THESE SECURITIES (INCLUDING ANY SWAP OR ANY OTHER AGREEMENT OR ANY TRANSACTION THAT TRANSFERS, IN WHOLE OR IN PART, DIRECTLY
OR INDIRECTLY, THE ECONOMIC CONSEQUENCE OF OWNERSHIP OF THESE SECURITIES, WHETHER ANY SUCH SWAP, AGREEMENT OR TRANSACTION IS TO BE SETTLED BY DELIVERY OF ALL OR ANY PORTION OF THESE SECURITIES OR ANY OTHER SECURITIES, IN CASH OR OTHERWISE), MAY NOT
BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT. 

 (v) Company Information. Such Purchaser has received and read the Company’s
financial statements and has had an opportunity to discuss the Company’s business, management and financial affairs with directors, officers and management of the Company and has had the opportunity to review the Company’s operations and
facilities. Such Purchaser has also had the opportunity to ask questions of and receive answers from, the Company and its management regarding the terms and conditions of this investment. The foregoing does not modify the representations and
warranties of the Company set forth in Section 3 of this Agreement or the right of the Purchasers to rely thereon. 
 (vi) Rule
144. Such Purchaser acknowledges and agrees that the Shares are “restricted securities” as defined in Rule 144 promulgated under the Securities Act as in effect from time to time and must be held indefinitely unless they are
subsequently registered under the Securities Act or an exemption from such registration is available. Such Purchaser has been advised or is aware of the provisions of Rule 144, which permits limited resale of securities subscribed for in a private
placement subject to the satisfaction of certain conditions, including, among other things: the availability of certain current public information about the Company, the resale occurring following the required holding period under Rule 144 and the
number of securities being sold during any three-month period not exceeding specified limitations. 
 (vii) Residence. If such
Purchaser is an individual, then such Purchaser resides in the state or province identified in the address of such Purchaser set forth on the signature pages hereto; if such Purchaser is a partnership, corporation, limited liability company or other
entity, then the office or offices of such Purchaser in which its principal place of business is identified in the address or addresses of such Purchaser set forth on the signature pages hereto. 

(c) Transfer Restrictions. Purchasers acknowledge and agree that the Shares are subject to restrictions on transfer. 

4.3 Representations of Purchasers who are not U.S. Persons. Each Purchaser who is not a U.S. Person and who is relying on Regulation S to purchase
Shares and fund its Funding Amount (as defined in the Funding Agreement), severally and not jointly, represents and warrants to the Company as of the Closing Date solely as to such Purchaser that: 

(a) Not a U.S. Person. The Purchaser is not a “U.S. Person,” as such term is defined in Regulation S. No offer or sale of the
Shares was made to the Purchaser in the United States. The Purchaser is not purchasing Units for the account or on behalf of any U.S. Person. 

(b) No Transfer of Securities to U.S. Person or Market. The Purchaser has not made any prearrangement to transfer any of the Shares to a
U.S. Person or to return any of the Shares to the United States securities markets (which includes short sales in the United States within the applicable “distribution compliance period,” as defined in Regulation S (hereinafter referred to
as the “restricted period”) to be covered by delivery of Shares) and is not purchasing Shares as part of any plan or scheme to evade the registration requirements of the Securities Act. 

(c) Compliance with Regulation S. All offers and sales of the Shares by the Purchaser in the United States or to U.S. Persons or
otherwise whether prior to the expiration or after the expiration of the applicable restricted period shall be made only pursuant to a registration of the Shares under the Securities Act or an exemption from registration, and in compliance with
Regulation S. 
 (d) Not a Distributor. The Purchaser is not a “distributor,” as defined in Regulation S. However, if the
Purchaser should be deemed to be a distributor prior to reselling the Shares to a non-U.S. Person during the restricted period, the Purchaser will send a notice to each new holder of the Shares that such new
holder is subject to the restrictions of Regulation S during the restricted period. 
 (e) Not an Officer, Affiliate, Underwriter or
Dealer. The Purchaser is not an officer, director, or “affiliate” (as that term is defined in Rule 405 under the Securities Act) of the Company or an “underwriter” or “dealer” (as such terms are defined in the
Securities Act), and the purchase of the Shares by the Purchaser is not a transaction (or part of a series of transactions) that is part of any plan or scheme to evade the registration provisions of the Securities Act. 

 (f) No Short Position During Restricted Period. The Purchaser does not have a short
position in any Shares and will not have a short position in such securities at any time prior to the expiration of the restricted period. 

(g) Re-sales Only in Compliance with Regulation S. The Purchaser acknowledges that the Purchaser
may only be able to resell the Shares pursuant to the provisions of Regulation S and otherwise pursuant to the Securities Act, and that it may not be possible for the Purchaser to liquidate its investment in the Shares. The Purchaser is prepared,
therefore, to hold the Shares indefinitely. 
 (h) Additional Representations. The Purchaser hereby represents that it has satisfied
itself as to the full observance of the laws of its jurisdiction applicable to such Purchaser in connection with any invitation to fund its Funding Amount, acquire the Shares or any use of this Agreement, including (i) the legal requirements
within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax
consequences, if any, that may be relevant to the Funding Agreement, the Escrow Account, the Non-Escrow Agreement or the purchase, holding, redemption, sale, or transfer of the Shares. Such Purchaser’s
funding of its Funding Amount or subscription and payment for and continued beneficial ownership of the shares will not violate any applicable securities or other laws of such Purchaser’s jurisdiction applicable to such Purchaser. 

5. CONDITIONS TO CLOSING. 
 5.1 Conditions to
Purchasers’ Obligations at the Closing. Purchasers’ obligations to subscribe for the Shares at the Closing are subject to the satisfaction (or waiver by Purchaser), at or prior to the Closing Date, of the following conditions: 

(a) Representations and Warranties True; Performance of Obligations. The representations and warranties made by the Company in
Section 3 hereof shall be true and correct in all respects as of the Closing Date, except in each case, for those representations and warranties that address matters only as of a particular date, which shall be true and correct in all respects
as of such date, and the Company shall have performed all obligations and conditions herein required to be performed or observed by it at or prior to the Closing Date. 

(b) Legal Investment. On the Closing Date, the sale and issuance of the Shares shall be legally permitted by all laws and
regulations to which Purchaser and the Company are subject. 
 (c) Consents, Permits, and Waivers. The Company shall have
obtained any and all consents, permits and waivers necessary or appropriate for consummation of the transactions contemplated by this Agreement, except for any such consents, permits and waivers as may be properly obtained subsequent to the Closing.

 (d) Compliance Certificate. The Company shall have delivered to Purchasers a compliance certificate, executed by the
President of the Company, dated as of the Closing Date, to the effect that the conditions specified in subsections (a) and (f) of this Section 5.1 have been satisfied. 

(e) Secretary’s Certificate. At the Closing, Purchasers shall have received from the Company’s Secretary a certificate
having attached thereto (i) the certificate of incorporation as in effect at the time of the Closing, (ii) bylaws as in effect at the time of Closing and (iii) resolutions approved by the Board of Directors of the Company authorizing
the transactions contemplated hereby. 
 (f) Offering Closing. All conditions to the closing of the Offering set forth in the
underwriting agreement to be entered into by and among the Company and the underwriters in the Offering shall have been satisfied or waived and the Offering shall be simultaneously closing. 

 (g) Opinion of Counsel. Counsel to the Company shall have delivered to
Purchasers an opinion in form reasonably satisfactory to Purchasers, which opinion shall cover the exemption from the registration 

requirements of the Securities Act of 1933 and such other matters as are customarily included in opinions relating to like transactions. 

(h) Registration Rights Agreement. The Company shall have delivered to the Purchasers a duly executed copy of the Registration Rights
Agreement (as defined below). 
 5.2 Conditions to Obligations of the Company. The Company’s obligation to issue and sell the Shares to
Purchasers at the Closing is subject to the satisfaction (or waiver by the Company), on or prior to the Initial Closing Date, of the following conditions: 

(a) Representations and Warranties True. The representations and warranties in Section 4 made by Purchasers shall be true
and correct in all respects as of the Initial Closing Date. 
 (b) Performance of Obligations. Purchasers shall have performed
and complied with all agreements and conditions herein required to be performed or complied with by Purchasers on or before the Initial Closing Date. 

(c) Consents, Permits, and Waivers. The Company shall have obtained any and all consents, permits and waivers necessary or
appropriate for consummation of the transactions contemplated by this Agreement. 
 6. COVENANTS. From and after the Closing Date: 

6.1 Registration Rights. The Shares shall be “Registrable Securities” pursuant to that certain Registration Rights Agreement, dated as
of the date hereof, by and between the Company and the Purchasers (the “Registration Rights Agreement”). 
 6.2 Reports
Under Exchange Act. With a view to making available to Purchasers the benefits of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit Purchasers 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 at all times adequate current public information, as those terms are understood and defined in SEC Rule 144; 
 (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; and 

(c) furnish to Purchasers, so long as each Purchaser owns any Registrable Securities (as defined in the Registration Rights Agreement),
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 Offering), the Securities Act, and the Exchange Act, 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) and (ii) such other information as may be reasonably requested in availing such Purchaser 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). 
 7. MISCELLANEOUS. 

7.1 Costs and Expenses. Each Party shall bear its own costs and expenses in connection with negotiation of this Agreement. 

7.2 Governing Law. This Agreement and any questions related thereto shall be subject to the laws of Delaware excluding its conflict of law
rules, unless otherwise stated herein with respect to U.S. securities laws. 
 7.3 Jurisdiction. The ordinary courts at the place of the
registered offices of the Company shall have exclusive jurisdiction with regard to any dispute arising between the Parties out or in connection with this Agreement (including a dispute regarding the construction and validity thereof). 

 7.4 Survival. The representations and warranties of the Company and Purchasers contained in or
made pursuant to this Agreement shall survive the execution and delivery of this Agreement and the Closing and shall in no way be affected by any investigation or knowledge of the subject matter thereof made by or on behalf of Purchasers or the
Company. 
 7.5 Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the
respective successors and assigns 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 assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. Neither the Company nor any Purchaser shall have the right to assign this Agreement without the prior written consent of the other party; provided,
however, that each Purchaser may assign its rights and obligations under this Agreement to any other member of the corporate group of which it is a member. 

7.6 Entire Agreement. This Agreement, together with the Registration Rights Agreement, constitutes the full and entire understanding and
agreement between the parties with regard to the subjects hereof and thereof and no party shall be liable for or bound to any other in any manner by any oral or written representations, warranties, covenants and agreements except as specifically set
forth herein and therein. 
 7.7 Severability. In the event one or more of the provisions of this Agreement should, for any reason, be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent
of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible. 

7.8 Amendment and Waiver. This Agreement may be amended or modified, and the rights and the obligations of the Company and the rights and
obligations of Purchasers may be waived, only upon the written consent of the Company and Purchasers. 
 7.9 Delays or Omissions. It is agreed
that no delay or omission to exercise any right, power or remedy accruing to any party, upon any breach, default or noncompliance by another party under this Agreement, shall impair any such right, power or remedy, nor shall it be construed to be a
waiver of any such breach, default or noncompliance, or any acquiescence therein, or waiver of or acquiescence in any similar breach, default or noncompliance thereafter occurring. It is further agreed that any waiver, permit, consent or approval of
any kind or character on any party’s part of any breach, default or noncompliance under this Agreement or any waiver on such party’s part of any provisions or conditions of this Agreement must be in writing and shall be effective only to
the extent specifically set forth in such writing. All remedies afforded to a party under this Agreement shall be cumulative and not alternative. 

7.10 Notices. All notices which are required or permitted hereunder will be in writing and sufficient if delivered personally, sent by facsimile
(and promptly confirmed by personal delivery, registered or certified mail or overnight courier), sent by nationally-recognized overnight courier or sent by registered or certified mail, postage prepaid, return receipt requested, addressed as
follows: 
  

			
	To the Company:	  	 Adicet Bio, Inc.
 500 Boylston Street, 13th Floor
 Boston, Massachusetts 02116

Attention: Chief Executive Officer

		
	 With a copy
 to:
	  	 Goodwin Procter LLP
 100 Northern Avenue

Boston, MA 02210 
Attention: Danielle M. Lauzon

 or to such other address as the party to whom notice is to be given may have furnished to the other party in
writing in accordance herewith. Any such notice will be deemed to have been given: (a) when delivered if personally delivered on a business day (or if delivered or sent on a non-business day, then on the
next business day); (b) on the business day of receipt if sent by overnight courier or facsimile; or (c) on the business day of receipt if sent by mail. 

7.11 Titles and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement. 
 7.12 Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be an original, but all of which together shall constitute one instrument. Any or all parties may execute this Agreement by facsimile signature or scanned signature in PDF format and any such facsimile signature or scanned signature, if
identified, legible and complete, shall be deemed an original signature and each of the parties is hereby authorized to rely thereon. 
 7.13
Broker’s Fees. Each party hereto represents and warrants that no agent, broker, investment banker, person or firm acting on behalf of or under the authority of such party hereto is or will be entitled to any broker’s or
finder’s fee or any other commission directly or indirectly in connection with the transactions contemplated herein. Each party hereto further agrees to indemnify each other party for any claims, losses or expenses incurred by such other party
as a result of the representation in this Section 7.13 being untrue. 
 7.14 Pronouns. All pronouns contained herein, and any variations
thereof, shall be deemed to refer to the masculine, feminine or neutral, singular or plural, as to the identity of the parties hereto may require. 

7.15 No Commitment for Additional Financing. The Company acknowledges and agrees that Purchasers have not made any representation, undertaking,
commitment or agreement to provide or assist the Company in obtaining any financing, investment or other assistance, other than the purchase of the Shares as set forth herein and subject to the conditions set forth herein. In addition, the Company
acknowledges and agrees that (i) no statements, whether written or oral, made by any Purchaser or its representatives on or after the date of this Agreement shall create an obligation, commitment or agreement to provide or assist the Company in
obtaining any financing or investment, (ii) the Company shall not rely on any such statement by any Purchaser or its representatives and (iii) an obligation, commitment or agreement to provide or assist the Company in obtaining any
financing or investment may only be created by a written agreement, signed by Purchasers and the Company, setting forth the terms and conditions of such financing or investment and stating that the parties intend for such writing to be a binding
obligation or agreement. Each Purchaser shall have the right, in its sole and absolute discretion, to refuse or decline to participate in any other future financing of or investment in the Company, and shall have no obligation to assist or cooperate
with the Company in obtaining any financing, investment or other assistance. 
 7.16 No Waiver. The failure of any party to enforce any of the
provisions of this Agreement or any rights with respect thereto shall in no way be considered as a waiver of such provisions or rights or in any way to affect the validity of this Agreement. The waiver of any breach of this Agreement by any Party
hereto shall not be construed as a waiver of any other prior or subsequent breach. 
 7.17 Termination. 

(a) The parties hereto may terminate this Agreement by mutual written agreement. 

(b) Either party may, at its sole discretion, terminate this Agreement by providing written notice to the other party if the Initial
Closing has not occurred by February 28, 2021. 
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth
above. 
  

	
	 COMPANY:

	
	 Adicet Bio, Inc.

	
	 Signature: /s/ Chen Schor

	 Print Name: Chen Schor

	 Title: President and Chief Executive Officer

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