Document:

Exhibit 4.2

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”)
is entered into as of May 30, 2014, by and among OrthoPediatrics Corp., a Delaware corporation (the “Company”)
and Squadron Capital LLC, a Delaware limited liability company (together with its successors and assigns “Squadron”),
and the additional parties, if any, listed on Schedule I attached hereto.

 

RECITALS

 

WHEREAS, the Company has entered into a Stock
Issuance and Purchase Agreement (the “Purchase Agreement”), dated as of the date hereof, with Squadron, pursuant to
which Squadron will acquire shares of the Company’s Series B Preferred Stock and convert or exchange a portion of the
Company’s debt held by Squadron into the Company’s shares of Series B Preferred Stock; and

 

WHEREAS, in order to induce Squadron to enter
into the Purchase Agreement, the Company has agreed to provide the registration rights set forth in this Agreement and the execution
and delivery of this Agreement is a condition to the Closing (as defined in the Purchase Agreement).

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the premises
and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency
is hereby acknowledged, each of the parties hereto severally (and neither jointly nor jointly and severally) hereby agrees as follows:

 

1.          CERTAIN
DEFINITIONS. As used in this Agreement, the following terms will have the following respective meanings:

 

“Affiliate” means, with respect to
any specified Person, (a) any other Person which directly or indirectly through one or more intermediaries controls, or is
controlled by, or is under common control with, such specified Person (for the purposes of this definition, “control”
(including, with correlative meanings, the terms “controlling,” “controlled by” and “under common
control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct
or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement
or otherwise) and (b) with respect to any natural Person, any Member of the Immediate Family of such natural Person.

 

“Affiliated Party” means,
with respect to any specified Holder, each corporation, trust, limited liability company, general or limited partnership or other
entity that is under common control with such Holder or whose general partner, manager, managing member, trustee or investment
advisor is the same or an Affiliate of the general partner, manager, managing member, trustee or investment advisor of such Holder
and any shareholder, partner, member or beneficiary of any of the foregoing.

 

     

     

    

 

“Agreement” is defined
in the Preamble.

 

“Application” is defined
in Section 6.1.

 

“Business Day” means any
day other than a Saturday, Sunday or other day on which commercial banks in the State of New York are authorized or required to
close.

 

“Commission” means the
Securities and Exchange Commission, or any other federal agency at the time administering the Securities Act or the Exchange Act.

 

“Common Stock” means the
Common Stock of the Company and any securities issued in exchange for or in replacement of such Common Stock.

 

“Company” is defined in
the Preamble.

 

“Covered Person” is defined
in Section 6.1 of this Agreement.

 

“Effectiveness Deadline”
means the date which is 60 days after the applicable Filing Deadline for the applicable Registration Statement, or if there
is a full review of such Registration Statement by the Commission, 90 days after the applicable Filing Deadline for such Registration
Statement.

 

“Eligible Market” means
the NYSE MKT LLC, The New York Stock Exchange, Inc., The NASDAQ Capital Market, The NASDAQ Global Market or The NASDAQ Global Select
Market or any other securities market satisfactory to Squadron.

 

“Exchange Act” means the
Securities Exchange Act of 1934, and any successor to such statute, and the rules and regulations of the Commission issued under
such Act, as they each may, from time to time, be amended and in effect.

 

“Filing Deadline” is defined
in Section 4.1 of this Agreement.

 

“Grace Period” is defined
in Section 4.14 of this Agreement.

 

“Holder” means Squadron
and any other Person who purchased Series B Preferred Stock pursuant to the Purchase Agreement and who owns Registrable Shares
and is party to this Agreement as reflected on Schedule I hereto, and any Permitted Transferee thereof in accordance with
Section 7.3 hereof.

 

“Initial Public Offering”
means the initial underwritten Public Offering on Form S1 (or any successor form under the Securities Act).

 

“Maximum Number of Shares”
is defined in Section 5.2.

 

“Members of the Immediate Family”
means, with respect to any individual, each spouse or child or other descendants of such individual, each trust created solely
for the benefit of one or more of the aforementioned Persons and their spouses and each custodian or guardian of any property of
one or more of the aforementioned Persons in his capacity as such custodian or guardian.

 

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“Permitted Transferee”
is defined in Section 7.3.

 

“Person” means any individual,
partnership, corporation, company, association, trust, joint venture, limited liability company, unincorporated organization, entity
or division, or any government, governmental department or agency or political subdivision thereof.

 

“Public Offering” means
a public offering and sale of Common Stock for cash pursuant to an effective Registration Statement.

 

“Purchase Agreement” is
defined in the Preamble

 

“Qualified IPO” means Public
Offering at a price of at least $20.55 per share (subject to appropriate adjustment in the event of any stock dividend, stock split,
combination or other similar recapitalization with respect to the Common Stock), in a firm-commitment underwritten public offering
pursuant to an effective registration statement under the Securities Act of 1933, as amended, resulting in at least $50,000,000
of gross proceeds, net of the underwriting discount and commissions, to the Company.

 

“Register,” “registered,”
and “registration” refer to a registration effected by preparing and filing a Registration Statement or similar
document in compliance with the Securities Act and the automatic effectiveness or the declaration or ordering of effectiveness
of such Registration Statement or similar document.

 

“Registration Period” is
defined in Section 4.1 of this Agreement.

 

“Registrable Securities”
means (i) any Common Stock issued or issuable upon conversion of the Series B Preferred Stock issued to Squadron and
the other Holders pursuant to the Purchase Agreement or issued or issuable to Squadron upon conversion, exchange or in consideration
of all or a portion of the Company’s debt held by Squadron; (ii) any Common Stock issued or issuable upon conversion
of the Series A Preferred Stock; (iii) any Common Stock, or any Common Stock issued or issuable (directly or indirectly)
upon conversion and/or exercise of any other securities of the Company, acquired by Squadron or the other Holders after the date
hereof; and (iv) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security
that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced
in clauses (i), (ii) and (iii) above.

 

“Registration Expenses”
means all expenses incurred by the Company in complying with Sections 2 and 3 hereof, including, without limitation, all registration
and filing fees, listing fees, all fees and expenses of complying with securities or blue sky laws, all printing expenses, fees
and disbursements of counsel for the Company and the Company’s independent public accountants, including the expenses of
any special audits required by or incident to such performance and compliance, but excluding underwriting discounts, selling commissions
and transfer taxes, if any, applicable to the sale of Registrable Securities.

 

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“Registration Statement”
means a registration statement filed by the Company with the Commission for a Public Offering under the Securities Act (other than
a registration statement on Form S8 or Form S4, or their successors, or any other form for a similar limited purpose).

 

“Rule 144” means Rule 144
under the Securities Act, and any successor rule or regulation thereto, and in the case of any referenced section of such rule,
any successor section thereto, collectively and as from time to time amended and in effect.

 

“Securities Act” means
the Securities Act of 1933, and any successor to such statute, and the rules and regulations of the Commission issued under such
Act, as they each may, from time to time, be amended and in effect.

 

“Selling Holder” means
any Holder on whose behalf Registrable Shares are registered pursuant to Section 2 or 3 hereof.

 

“Series A Preferred Stock”
means the Series A Preferred Stock of the Company and any securities issued in exchange for or in replacement of such Series A
Preferred Stock.

 

“Series B Preferred Stock”
means the Series B Preferred Stock of the Company and any securities issued in exchange for or in replacement of such Series B
Preferred Stock.

 

“Squadron” is defined in
the Preamble.

 

“Trading Day” means any
day on which the Registrable Shares are traded on an Eligible Market; provided that “Trading Day” shall not
include any day on which the Registrable Shares are scheduled to trade on such exchange or market for less than 4.5 hours
or any day that the Registrable Shares are suspended from trading during the final hour of trading on such exchange or market (or
if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the
hour ending at 4:00 p.m., New York time).

 

“Underwriter” is defined
in Section 5.2 of this Agreement.

 

2.             REQUIRED
REGISTRATIONS.

 

2.1.          Demand
Registrations. At any time following the occurrence of an Initial Public Offering, Squadron (including any Permitted Transferee
thereof) may, by written notice to the Company, request that the Company effect the registration for a Public Offering on Form S1
(or any other form that includes substantially the same information as would be required to be included in a Registration Statement
on such form as currently constituted) of Registrable Shares.

 

2.2.          Registration
on Form S3. At any time after the Company becomes eligible to file a Registration Statement on Form S3 (or any successor
form relating to secondary offerings), Squadron (including any Permitted Transferee thereof) may, by written notice to the Company,
request that the Company effect the registration on Form S3 (or any successor form) of Registrable Shares having an anticipated
net aggregate offering price of at least $5,000,000.

 

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2.3.         Notice
to Other Holders of Registrable Shares. Promptly after receipt of notice requesting registration pursuant to Section 2.1
or 2.2, the Company will give written notice of such requested registration to all other Holders of Registrable Shares. Subject
to the limitations set forth in Sections 2.4, 5.2 and 5.3, as applicable, the Company will use its reasonable best efforts
to effect the registration under the Securities Act of the Registrable Shares which has been requested to register by Squadron
and all other Registrable Shares which the Company has been requested to register by other Holders of Registrable Shares by notice
delivered to the Company, as applicable, within 20 days after the giving of such notice by the Company.

 

2.4.         Limitations.

 

(a)          The
Company will not be required to effect more than two registrations requested by Squadron pursuant to Section 2.1 above. The
Company will not be required to effect any registration pursuant to Section 2.1: (i) within six months after the effective
date of any Registration Statement that was requested by Squadron pursuant to Section 2.1; (ii) during the period that
is sixty (60) days before the Company’s good faith estimate of the date of filing of and ending on a date that is one
hundred eighty (180) days after the effective date of, a Company initiated registration, provided, that the Company is actively
employing in good faith reasonable best efforts to cause such Registration Statement to become effective; or (iii) if Squadron
proposes to dispose of Registrable Shares that may be immediately registered on Form S3 pursuant to a request made pursuant
to Section 2.2.

 

(b)          Subject
to the limitations set forth in Section 2.2 above, Squadron will have the right to require the Company to effect an unlimited
number of registrations on Form S3; provided, however, (i) that in any one year the Company will not be
required to effect more than two such registrations, and (ii) the Company shall not be obligated to effect, or to take any
action to effect, any registration pursuant to Section 2.2 during the period that is thirty (30) days before the Company’s
good faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the effective date of, a
Company initiated registration, provided, that the Company is actively employing in good faith reasonable best efforts to cause
such Registration Statement to become effective.

 

(c)          Notwithstanding
any other provision of this Agreement to the contrary, a request for registration by Squadron pursuant to Section 2.1 or Section 2.2
shall not be deemed to have been effected and, therefore, not requested and the rights of Squadron shall be deemed not to have
been exercised for purposes of Section 2.1 or Section 2.2, (i) if such registration has not become effective under
the Securities Act, (ii) if such registration, after it became effective under the Securities Act, was not maintained effective
under the Securities Act (other than as a result of any stop order, injunction or other order or requirement of the SEC or other
government agency or court solely on the account of a material misrepresentation or omission of Squadron) for at least 60 consecutive
days (or such shorter period ending when all the Registrable Shares covered thereby have been disposed of pursuant thereto), (iii) the
number of Registrable Shares to be sold in such offering is reduced by more than 30% of the Registrable Shares requested to be
included in such Registration Statement pursuant to Section 5.2 or otherwise, or (iv) if Squadron reimburses, at its
election, the Company for the Company’s reasonable out-of-pocket Registration Expenses relating to the preparation and filing
of such registration (to the extent actually incurred), and any such registration shall not count as a registration hereunder for
purposes of the limitation on registrations in Section 2.4(a) above); provided, however, that if a registration is withdrawn
prior to the filing of the Registration Statement or prior to the effectiveness thereof (A) because a material adverse effect
with respect to the Company has occurred or is then currently occurring, or (B) because of a postponement of such registration
pursuant to Section 4.13, then such withdrawal shall not be treated as a registration effected pursuant to this Section 2
(and shall not be counted toward the number of registrations to which Squadron is entitled), and the Company shall pay all Registration
Expenses in connection therewith. Any Holder requesting inclusion in a registration may, at any time prior to the date such Registration
Statement is declared effective by the Commission (and for any reason), revoke such request by delivering written notice to the
Company revoking such requested inclusion.

 

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3.             INCIDENTAL
REGISTRATION.

 

3.1.          Company
Registration. If at any time the Company proposes to register any of its equity securities under the Securities Act, for its
own account or for the account of any holder of its securities other than Registrable Shares, on a form that would permit registration
of Registrable Shares for sale to the public under the Securities Act, then prior to such filing the Company will give written
notice to all Holders of its intention to do so, and upon the written request of a Holder or Holders given within 20 days
after the Company provides such notice (which request will state the intended method of disposition of such Registrable Shares),
the Company will use its reasonable best efforts to cause all Registrable Shares the Company has been requested to register to
be registered under the Securities Act to the extent necessary to permit their sale or other disposition in accordance with the
intended methods of distribution specified in the request of such Holder(s); provided that, the Company will have
the right to postpone or withdraw any registration initiated by the Company pursuant to this Section 3.1 without obligation
to any Holder.

 

3.2.          Excluded
Transactions. The Company will not be obligated to effect any registration of Registrable Shares under this Section 3
incidental to the registration of any of its securities in connection with: (a) any Public Offering on Form S8 relating
to employee benefit plans or dividend reinvestment plans; or (b) any Public Offering on Form S4 relating to the acquisition
or merger by the Company or any of its subsidiaries of or with any other businesses.

 

4.             REGISTRATION
PROCEDURES. If and whenever the Company is required by the provisions of this Agreement to use its reasonable best efforts
to effect the registration of any of the Registrable Shares under the Securities Act, the Company and the Selling Holders will
take the actions described below in this Section 4.

 

4.1.          Registration
Statement. The Company will prepare and file with the Commission a Registration Statement, in the case of a registration pursuant
to Section 2 hereof, promptly and in any event within 60 days after its receipt of a request for registration (the “Filing
Deadline”) with respect to such Registrable Shares and use its reasonable best efforts to cause such Registration Statement
to become effective as soon as practicable thereafter but in no event later than the Effectiveness Deadline. Such Registration
Statement shall be for an offering to be made on a continuous or delayed basis (a socalled “shelf registration statement”)
if the Company is eligible for the use thereof and the Holders requesting such registration have asked for a shelf registration
statement. The Company shall use reasonable best efforts to keep each Registration Statement effective pursuant to Rule 415
at all times until the date on which the Holders shall have sold all of the Registrable Shares covered by such Registration Statement
(the “Registration Period”). The Company shall ensure that each Registration Statement (including any amendments or
supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein, or necessary to make the statements therein (in the case of prospectuses, in the
light of the circumstances in which they were made) not misleading. By 9:30 a.m. New York time on the Business Day following
the date a Registration Statement has become effective, the Company shall file with the Commission in accordance with Rule 424
under the Securities Act the final prospectus to be used in connection with sales pursuant to such Registration Statement.

 

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4.2.          Amendments
and Supplements. The Company will prepare and file with the Commission such amendments and supplements to such Registration
Statement and the prospectus used in connection therewith as may be necessary to keep such Registration Statement effective and
to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Shares and other securities,
if any, covered by such Registration Statement until such time as all of such Registrable Shares have been disposed of in accordance
with the intended methods of disposition by the Selling Holder(s) thereof set forth in such Registration Statement. In the case
of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including
pursuant to this Section 4.2) by reason of the Company filing a report on Form 10Q, Form 10K or Form 8K or
any analogous report under the Exchange Act, the Company shall have incorporated such report by reference into such Registration
Statement, if applicable, or shall file such amendments or supplements with the Commission on the same day on which the Exchange
Act report is filed which created the requirement for the Company to amend or supplement such Registration Statement. By 9:30 a.m.
New York City time on the date following the date any post-effective amendment has become effective, the Company shall file with
the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales
pursuant to such Registration Statement. If requested by a Holder, the Company shall as soon as practicable (a) incorporate
in a prospectus supplement or post-effective amendment such information as a Holder reasonably requests to be included therein
relating to the sale and distribution of Registrable Shares, including, without limitation, information with respect to the number
of Registrable Shares being offered or sold, the purchase price being paid therefor and any other terms of the offering of the
Registrable Shares to be sold in such offering; (b) make all required filings of such prospectus supplement or post-effective
amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and
(c) supplement or make amendments to any Registration Statement if reasonably requested by a Holder.

 

4.3.          Cooperation.
The Company will use its reasonable best efforts to cooperate with the Selling Holders in the disposition of the Registrable Securities
covered by such Registration Statement, including without limitation in the case of an underwritten offering pursuant to Section 2
causing key executives of the Company and its subsidiaries, including, without limitation, the Chief Executive Officer, the Chief
Financial Officer, the President and any Vice-Presidents, to participate under the direction of the managing Underwriter in a “road
show” scheduled by such managing Underwriter in such locations and of such duration as in the judgment of such managing Underwriter
are appropriate for such underwritten offering.

 

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4.4.          Selection
of Underwriter and Counsel. In the Company’s Initial Public Offering and in any other Public Offering in which Squadron
intends to distribute the Registrable Shares in an underwritten offering, Squadron will have the right to designate the managing
Underwriter and the Company’s counsel.

 

4.5.          Copies
of Prospectus. The Company will furnish to each Selling Holder such reasonable numbers of copies of the prospectus, any preliminary
prospectus or prospectus supplement, and any free writing prospectus, in conformity with the requirements of the Securities Act,
and such other documents as the Selling Holder may reasonably request in order to facilitate the public sale or other disposition
of the Registrable Shares owned by the Selling Holder.

 

4.6.          Blue
Sky Qualification. The Company will use its reasonable best efforts to (a) register or qualify the Registrable Shares
covered by the Registration Statement under the securities or blue sky laws of all applicable jurisdictions in the United States,
(b) prepare and file in those jurisdictions such amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (c) take
such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration
Period, (d) take all other actions reasonably necessary or advisable to qualify the Registrable Shares for sale in such jurisdictions
and (e) cause such Registrable Shares covered by the Registration Statement to be registered with or approved by such other
governmental authorities as may be necessary by virtue of the business and operations of the Company and do any and all other acts
and things that may be necessary or desirable to enable the Selling Holder to consummate the public sale or other disposition in
such jurisdictions of the Registrable Shares covered by the Registration Statement; provided, however, that the Company
will not be obligated to file any general consent to service of process or to qualify as a foreign corporation in any jurisdiction
in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it would
not otherwise be so subject. The Company shall promptly notify the holders of Registrable Shares of the receipt by the Company
of any notification with respect to the suspension of the registration or qualification of any of the Registrable Shares for sale
under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of
the initiation or threatening of any proceeding for such purpose.

 

4.7.          Opinion
of Counsel; Comfort Letter. The Company will use its reasonable best efforts to obtain all legal opinions, auditors’
consents and comfort letters and experts’ cooperation as may be required, including furnishing to each Selling Holder of
such Registrable Shares a signed counterpart, addressed or confirmed to such Selling Holder, of (a) an opinion of counsel
for the Company and (b) a “cold comfort” letter signed by the independent public accountants who have certified
the Company’s financial statements included in such Registration Statement, covering substantially the same matters as are
customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in underwritten
public offerings of securities. In the event no legal opinion is delivered to any Underwriter, the Company shall furnish to each
Holder included in such Registration Statement, at any time that such holder elects to use a prospectus, an opinion of counsel
to the Company to the effect that the Registration Statement containing such prospectus has been declared effective and that no
stop order is in effect.

 

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4.8.          Records.
The Company shall make available for inspection by the holders of Registrable Shares included in such Registration Statement, any
Underwriter participating in any disposition pursuant to such registration statement and any attorney, accountant or other professional
retained by any Holder included in such Registration Statement or any Underwriter, all financial and other records, pertinent corporate
documents and properties of the Company as shall be necessary to enable them to exercise their due diligence responsibility, and
cause the Company’s officers, directors and employees to supply all information requested by any of them in connection with
such registration statement.

 

4.9.          Listing
and Transfer Agent. The Company will cause all Registrable Shares covered by the Registration Statement to be listed on the
primary national securities exchange on which similar securities issued by the Company are then listed or, if such securities are
not then listed, on an Eligible Market. The Company will provide and cause to be maintained a transfer agent and registrar for
all Registrable Shares covered by the Registration Statement not later than the effective date of such Registration Statement.

 

4.10.         Customary
Agreements. The Company will enter into such customary agreements (including underwriting agreements in customary form) and
take all such other actions as Squadron or the Underwriters, if any, reasonably request in order to expedite or facilitate the
disposition of such Registrable Shares (including, without limitation, effecting a stock split or a combination of shares). The
representations, warranties and covenants of the Company in any underwriting agreement which are made to or for the benefit of
any Underwriters shall also be made to and for the benefit of the Selling Holders to the extent of their participation in the registration.

 

4.11.         General
Compliance with Federal Securities Laws; Section 11(a) Earning Statement. The Company will use its reasonable best efforts
to comply with the Securities Act, the Exchange Act and any other applicable rules and regulations of the Commission, and make
available to its securities holders, as soon as reasonably practicable, an earning statement covering the period of at least 12 months
after the effective date of such Registration Statement, which earning statement shall satisfy Section 11(a) of the Securities
Act and any applicable regulations thereunder, including Rule 158.

 

4.12.         Notice
of Prospectus Defects. The Company will immediately notify the Selling Holders of the happening of any event, as a result of
which the prospectus included or to be included in the Registration Statement includes an untrue statement of a material fact or
omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing. The Company will immediately revise such prospectus as may be necessary so that such
prospectus shall not include an untrue statement of a material fact or omit to state such a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. The Company
will promptly deliver copies of such revised prospectus to the Selling Holders. Following receipt of the revised prospectus, the
Selling Holders will be free to resume making offers of the Registrable Shares. The Company will extend the period during which
the Registration Statement must be kept effective pursuant to this Agreement by the number of days during the period from and including
the date of giving such notice to and including the date when the Selling Holders shall have received copies of the revised prospectus.

 

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4.13.         Lock-Up.
In the case of an underwritten offering requested to be effected by the Holders hereunder, the Company shall not, without the prior
written consent of the managing Underwriter, for a period from 15 days before the effective date of the registered sale (i.e.,
the consummation of such transaction) until 90 days after such effective date, directly or indirectly sell, offer to sell,
grant any option for the sale of, or otherwise dispose of any common equity or securities convertible into common equity other
than pursuant to employee equity plans.

 

4.14.         Delay
of Registration and Suspension of Offering. If at any time (a) after a request to effect a registration pursuant to Section 2
of this Agreement or (b) after a Registration Statement has become effective, the Company is engaged in any plan, proposal
or agreement with respect to any financing, acquisition, recapitalization, reorganization or other material transaction or development
the public disclosure of which would be materially detrimental to the Company as determined by an independent director of the Company
(or, if there is more than one independent director, by a majority of the independent directors), then the Company may direct that
such request be delayed or that use of the prospectus contained in the Registration Statement be suspended, as applicable, for
a period not to exceed forty-five (45) consecutive days and during any three hundred sixty five (365) day period, such periods
shall not exceed an aggregate of ninety (90) days, and the first day of any such period must be at least five (5) Trading
Days after the last day of any prior period (each, a “Grace Period”). The Company will promptly notify all Holders
requesting the registration or all Selling Holders, as the case may be, of the delay or suspension. In the case of notice suspending
an effective Registration Statement, each Selling Holder will immediately discontinue any sales of Registrable Shares pursuant
to such Registration Statement until such Selling Holder has received copies of a supplemented or amended prospectus or until such
Selling Holder is advised in writing by the Company that the then-current prospectus may be used and has received copies of any
additional or supplemental filings that are incorporated or deemed incorporated by reference in such prospectus. Notwithstanding
anything to the contrary, the Company shall cause its transfer agent to deliver unlegended Registrable Shares to a transferee of
a Holder in connection with any sale of Registrable Shares with respect to which a Holder has entered into a contract for sale,
prior to the Holder’s receipt of the notice of a Grace Period and for which the Holder has not yet settled. The Company shall
use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration Statement,
or the suspension of the qualification of any of the Registrable Shares for sale in any jurisdiction and, if such an order or suspension
is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify holders of Registrable
Shares and legal counsel of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose.

  

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4.15.         Participation
by Squadron. In connection with the preparation and filing of each Registration Statement, and before filing any such Registration
Statement or any other document in connection therewith, the Company must give Squadron and the Underwriters, if any, and their
respective counsel and accountants, the opportunity to participate in the preparation of such Registration Statement, each prospectus
included therein or filed with the Commission, each amendment thereof or supplement thereto and any related underwriting agreement
or other document to be filed, and give each of the aforementioned Persons such access to its books and records and such opportunities
to discuss the business of the Company with its officers and the independent public accountants who have certified its financial
statements as shall be necessary, in the opinion of Squadron, the Underwriters, counsel or accountants, to conduct a reasonable
investigation within the meaning of the Securities Act.

 

4.16.         Notification.
After the filing of a Registration Statement, the Company shall promptly, and in no event later than two (2) Business Days,
notify the holders of Registrable Shares included in such Registration Statement in writing: (a) when such Registration Statement
has been filed or amended or supplemented and becomes effective, (b) when any post effective amendment to such Registration
Statement becomes effective, (c) of any stop order issued or threatened by the Commission (and the Company shall take all
actions required to prevent the entry of such stop order or to remove it if entered) and (d) of any request by the Commission
for any amendment or supplement to such Registration Statement or any prospectus relating thereto or for additional information
or of the occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so that, as thereafter
delivered to the purchasers of the securities covered by such Registration Statement, such prospectus will not contain an untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading, and promptly make available to the holders of Registrable
Shares included in such Registration Statement any such supplement or amendment; except that before filing with the Commission
a Registration Statement or prospectus or any amendment or supplement thereto, including documents incorporated by reference, the
Company shall furnish to the holders of Registrable Shares included in such Registration Statement and to the legal counsel for
any such holders, copies of all such documents proposed to be filed sufficiently in advance of filing (and in no event less than
three (3) Business Days prior to filing, except in the event of exigent circumstances affecting the Company that preclude
such delivery) to provide such holders and legal counsel with a reasonable opportunity to review such documents and comment thereon.

 

5.             CERTAIN
OTHER PROVISIONS.

 

5.1.          Additional
Procedures. Selling Holders will take all such actions and execute all custody agreements, powers of attorney or such other
documents and instruments that are reasonably requested by the Company to effect the sale of their shares in such Public Offering,
including, without limitation, being parties to the underwriting agreement entered into by the Company and any other Selling Holders
in connection therewith; provided, however, that the aggregate amount of any liability of any Selling Holder pursuant
to such underwriting or other agreement will not exceed such Selling Holder’s net proceeds actually received from such offering.
In addition, each Selling Holder will furnish to the Company such information regarding such Selling Holder and the distribution
proposed by such Selling Holder as the Company may reasonably request in writing and as will be required in connection with any
registration, qualification or compliance referred to in Section 4. The Company shall not be required to include any Selling
Holder’s Registrable Shares in such underwriting unless such Selling Holder accepts the terms of the underwriting as agreed
upon between the Company, and the Underwriters, provided that such agreement does not expose the Selling Holder to any additional
liability not expressly and explicitly set forth in this Agreement. Notwithstanding anything to the contrary contained herein,
no Holder included in a Registration Statement shall be required to make any representations or warranties in the underwriting
agreement except, if applicable, with respect to such Holder’s organization, good standing, authority, title to Registrable
Shares, lack of conflict of such sale with such holder’s material agreements and organizational documents, and with respect
to written information relating to such Holder that such Holder has furnished in writing expressly for inclusion in such Registration
Statement.

 

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5.2.         Priority
on Demand Registrations. If any registration made pursuant to Section 2 is an underwritten offering and the managing underwriters
(the “Underwriters”) advise the Company in writing (with a copy to Squadron) that in their opinion the number
of Registrable Shares requested to be included in such offering exceeds the number of Registrable Shares which can be sold therein
without adversely affecting the proposed offering price, the timing, the distribution method or the probability of success of such
offering (the “Maximum Number of Shares”), the Company will include in such registration: (a) first, the
maximum number of shares of Registrable Shares requested to be included by the Selling Holders, pro rata among Selling Holders,
on the basis of the number of shares of Registrable Securities held by the Selling Holders; and (b) second, to the extent
the Maximum Number of Shares has not been exceeded under the foregoing clause (a) above, the maximum number of shares of Registrable
Shares requested to be included by any other Persons, including, without limitation, the Company, without exceeding the Maximum
Number of Shares, pro rata among such Persons on the basis of the number of shares that each has requested to be included in such
registration without exceeding the Maximum Number of Shares.

 

5.3.         Priority
on Incidental Registrations. If any registration made pursuant to Section 3 is an underwritten offering and the managing
Underwriters advise the Company in writing (with a copy to Squadron) that in their opinion the number of Registrable Shares requested
to be included in such offering exceeds the number of Registrable Shares which can be sold therein without adversely affecting
the marketability and pricing of the offering, the Company will include in such registration:

 

(a)          in
the case of a registration initiated by the Company (i) first, the maximum number of shares of Registrable Shares requested
to be included by the Company in such registration which can be sold without exceeding the Maximum Number of Shares; (ii) second,
to the extent the Maximum Number of Shares has not been exceeded under the foregoing clause (i) above, the maximum number
of shares of Registrable Shares requested to be included by the Holders, pro rata among the Selling Holders on the basis of the
number of shares of Registrable Securities held by the Selling Holders; (iii) third, to the extent the Maximum Number of Shares
has not been exceeded under the foregoing clauses (i) and (ii) above, the maximum number of shares of Registrable Shares requested
to be included by any other Persons which can be sold without exceeding the Maximum Number of Shares; and

 

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(b)          in
the case of a registration initiated by anyone other than the Company (i) first, the maximum number of shares of Registrable
Shares requested to be included in such registration by the Persons initiating such registration which can be sold without exceeding
the Maximum Number of Shares; (ii) second, to the extent the Maximum Number of Shares has not been exceeded under the foregoing
clause (i) above, the maximum number of shares of Registrable Shares requested to be included by the Holders, pro rata among
the Selling Holders on the basis of the number of shares of Registrable Securities held by the Selling Holders; (iii) third,
to the extent the Maximum Number of Shares has not been exceeded under the foregoing clauses (i) and (ii) above, the maximum
number of shares of Registrable Shares requested to be included by the Company which can be sold without exceeding the Maximum
Number of Shares.

 

5.4.         Restriction.
Notwithstanding the foregoing, the Company will not include in any registration pursuant to Section 2.1 or Section 2.2
any securities which are not Registrable Shares without the prior written consent of Squadron.

 

5.5.         Lock-Up.
Each Holder agrees that unless the consent of the managing Underwriter of the Initial Public Offering is obtained, for a period
beginning seven days immediately preceding and ending on the 180th day following the effective date of the Registration
Statement used in connection with such Initial Public Offering, it will not offer, pledge, sell, contract to sell, sell any option
or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise
transfer, directly or indirectly, any Registrable Shares or any securities convertible into or exercisable or exchangeable for
such Registrable Shares, except for (a) any Registrable Shares sold pursuant to such Registration Statement and (b) transfers
to Affiliated Parties, Affiliates, partners, members, managers, beneficiaries or stockholders of such Holder (each of whom shall
have furnished to the Company and the managing Underwriters its written consent to be bound by the terms of this Agreement, including
this Section 5.5); provided that, all officers and directors of the Company and all holders of more than 1%
of the shares of Common Stock then outstanding enter into such lock-up agreements for the same period and on the same terms.

 

5.6.         Registration
Expenses.

 

(a)          The
Company hereby agrees to pay all Registration Expenses in connection with all registrations effected pursuant to this Agreement.

 

(b)          Notwithstanding
the terms of Section 5.6(a), the Company shall not be required to pay for any expenses of a registration requested pursuant
to Sections 2.1 or 2.2 hereof if the registration request is withdrawn at any time at the request of Squadron (in which case
all participating Holders severally and not jointly shall bear such expenses pro rata in accordance with the number of Registrable
Shares requested by such Holders to be included in such Registration Statement), unless in the case of a registration requested
pursuant to Section 2.1, Squadron agrees to forfeit its right to one demand registration pursuant to Section 2.1 at the
time of any such withdrawal, which forfeiture shall bind all Holders of Registrable Shares. However, if Squadron had learned of
information (other than information known to it at the time it made its request) that, in the good faith judgment of Squadron,
is reasonably likely to have a material adverse effect on the business or prospects of the Company, then the Holders shall not
be required to pay any of such expenses in the case of a registration requested pursuant to Section 2.1 or 2.2 and, in the
case of a registration requested pursuant to Section 2.1, the right to one demand registration shall not be forfeited.

 

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5.7.          Termination
of Status as Registrable Shares. Registrable Shares will cease to be Registrable Shares and cease to have the rights accorded
to such Registrable Shares under this Agreement upon the earliest to occur of the following events: (a) such shares shall
have been sold pursuant to an effective Registration Statement under the Securities Act; or (b) such Registrable Shares shall
have been sold pursuant to a transaction under Rule 144.

 

5.8.          Limitations
on Subsequent Registration Rights. The Company will not, without the prior written consent of Squadron, enter into any agreement
with any holder or prospective holder of securities of the Company that grant such holder or prospective holder rights to include
securities of the Company in any Registration Statement.

 

6.             INDEMNIFICATION.

 

6.1.          Company
Indemnification. In the event of any registration of any of the Registrable Shares under the Securities Act pursuant to this
Agreement, then to the extent permitted by law, the Company will indemnify and hold harmless each Selling Holder, its respective
officers, employees, Affiliates, directors, partners, members, attorneys and agents, and each other Person, if any, who controls
such Selling Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such
Person being a “Covered Person”) against any losses, claims, damages or liabilities, joint or several, to which
such Covered Person may become subject under the Securities Act, the Exchange Act, state securities laws or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (a) any untrue
statement or alleged untrue statement of any material fact contained in any Registration Statement under which such Registrable
Shares were registered under the Securities Act, any preliminary or final prospectus contained in the Registration Statement, or
any amendment or supplement to such Registration Statement, any “issuer free writing prospectus” as defined in Rule 433
under the Securities Act or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under
the Securities Act, or any application or other document or communication (in this paragraph collectively called an “application”)
executed by or on behalf of the Company, or based upon written information furnished by or on behalf of the Company, filed in any
jurisdiction in order to qualify any securities covered by such registration statement under the “blue sky” or securities
law thereof, or (b) the omission or alleged omission to state a material fact required to be stated therein or necessary to make
the statements therein not misleading; and the Company will promptly reimburse, but in no event more than three (3) Business
Days after request for payment, such Covered Person for any legal or any other expenses reasonably incurred by such Covered Person
in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however,
that the Company will not be liable to any Covered Person in any such case only to the extent (i) that any such loss, claim,
damage or liability arises out of or is based upon any untrue statement or omission made in such Registration Statement or prospectus,
any such amendment or supplement or any such issuer free writing prospectus or application, in reliance upon and in conformity
with information furnished to the Company, in writing, by or on behalf of such Covered Person specifically for use therein or (ii) of
amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which
consent shall not be unreasonably withheld, conditioned or delayed.

  

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6.2.          Seller
Indemnification. In the event of any registration of any of the Registrable Shares under the Securities Act pursuant to this
Agreement, then to the extent permitted by law, each Selling Holder will indemnify and hold harmless the Company, each of its officers,
employees, Affiliates, directors, attorneys and agents, and each other Person (other than such Selling Holder), if any, who controls
the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses,
claims, damages or liabilities to which the Company, such directors and officers, or controlling person may become subject under
the Securities Act, Exchange Act, state securities laws or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) are based solely upon (a) any untrue statement of a material fact contained in any Registration
Statement under which such Registrable Shares were registered under the Securities Act, any preliminary or final prospectus contained
in the Registration Statement, any amendment or supplement to the Registration Statement or any application or (b) the omission
to state a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case
to the extent, and only to the extent that such untrue statement or omission is made in such Registration Statement under which
such Registrable Shares were registered under the Securities Act, any preliminary or final prospectus contained in the Registration
Statement, any amendment or supplement to the Registration Statement or any application, in reliance upon and in conformity with
information furnished in writing to the Company by or on behalf of such Selling Holder expressly for use therein; provided,
however, that the obligations of such Selling Holder hereunder (i) will be limited to an amount equal to the net proceeds
to such Selling Holder (after deducting all underwriter’s discounts and commissions and all other expenses paid by such Holder
in connection with the registration in question) from the disposition of Registrable Shares pursuant to such registration and (ii) will
not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of such
Selling Holder, which consent shall not be unreasonably withheld, conditioned or delayed.

 

6.3.          Notice
of Claims, etc.. Promptly after receipt by an indemnified party of notice of the commencement of any action or proceeding involving
a claim of the type referred to in the foregoing provisions of this Section 6, such indemnified party will, if a claim in
respect thereof is to be made against any indemnifying party, give written notice to each such indemnifying party of the commencement
of such action. The failure to give notice to the indemnifying party within a reasonable time of the commencement of any such action
shall relieve such indemnifying party of any liability to the indemnified party under this Section 6, but only if the indemnifying
party did not otherwise have notice of such action and only to the extent that such failure materially prejudices the indemnifying
party’s ability to defend such action. The failure to give notice to the indemnifying party will not relieve it of any liability
that it may have to any indemnified party otherwise than under this Section 6. In case any such action is brought against
an indemnified party, each indemnifying party will be entitled to participate in and to assume the defense thereof, jointly with
any other indemnifying party similarly notified, to the extent that it may wish, with counsel reasonably satisfactory to such indemnified
party, and (subject to the following sentence) after notice from an indemnifying party to such indemnified party of its election
so to assume the defense thereof, such indemnifying party will not be liable to such indemnified party for any legal or other expenses
subsequently incurred by the latter in connection with the defense thereof. The indemnified party may participate in such defense
at its expense; provided, however, that the indemnifying party will pay such expense if representation of such indemnified
party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential conflict of interests
between the indemnified party and any other party represented by such counsel in such proceeding; provided, further,
that in no event will the indemnifying party be required to pay the expenses of more than one additional law firm as counsel for
all indemnified parties pursuant to this sentence (other than local counsel). If, within 30 days after receipt of the notice, such
indemnifying party has not elected to assume the defense of the action, such indemnifying party will be responsible for any legal
or other expenses reasonably incurred by such indemnified party in connection with the defense of the action, suit, investigation,
inquiry or proceeding. An indemnifying party may, in the defense of any such claim or litigation, consent to the entry of a judgment
or enter into a settlement without the consent of the indemnified party only if such judgment or settlement contains a general
release of the indemnified party in respect of such claims or litigation.

 

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6.4.          Contribution.
If the indemnification provided for in Sections 6.1 or 6.2 hereof is unavailable to a party that would have been an indemnified
party under any such Section in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof)
referred to therein, then each party that would have been an indemnifying party thereunder will, in lieu of indemnifying such indemnified
party, contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities
(or actions or proceedings in respect thereof) in such proportion as is appropriate to reflect the relative fault of such indemnifying
party on the one hand and such indemnified party on the other in connection with the statements or omissions which resulted in
such losses, claims, damages or liabilities (or actions or proceedings in respect thereof). The relative fault will be determined
by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by such indemnifying party or such indemnified party and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.
The parties agree that it would not be just and equitable if contribution pursuant to this Section 6.4 were determined by
pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to
in the preceding sentence. The amount paid or payable by a contributing party as a result of the losses, claims, damages or liabilities
(or actions or proceedings in respect thereof) referred to in this Section 6.4 will include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding any
other provision of this Section 6.4, the Holders of the Registrable Shares shall not be required to contribute any amount
in excess of the net proceeds received by such Holders from the sale of the Registrable Shares pursuant to the Registration Statement
under which such Registrable Shares were registered. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

7.             MISCELLANEOUS.

 

7.1.          Termination
of Registration Rights. The right of any Holder to request registration or inclusion of Registrable Shares in any Registration
Statement pursuant to Section 2.1 or Section 2.2 shall terminate when (i) such Holder and its Affiliates and Affiliated
Parties own less than 1% of the shares of Common Stock then outstanding and (ii) Rule 144 or another similar exemption
under the Securities Act is available for the sale of all of such Holder’s shares without limitation during a three-month
period without registration.

 

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7.2.         Reports
under the Exchange Act. With a view to making available to the Holders the benefits of Rule 144 promulgated under the
Securities Act and any other rule or regulation of the Commission that may at any time permit such Holder to sell securities of
the Company to the public without registration and with a view to making it possible for Holders to register the Registrable Shares
pursuant to a registration statement on Form S3, the Company agrees to use its reasonable best efforts to:

 

(a)          make
and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act (at
any time more than 90 days following the closing of the Initial Public Offering);

 

(b)          file
with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the
Exchange Act;

 

(c)          take
such action, including the voluntary registration of the Common Stock under Section 12 of the Exchange Act, as will permit
Holders to use Form S3 for the sale of their Registrable Shares, such action to be taken as soon as practicable (but not later
than 120 days) after the end of the fiscal year in which the Registration Statement for the Initial Public Offering is declared
effective; and

 

(d)          furnish
to any Holder forthwith upon request (i) a written statement by the Company as to its compliance with the reporting requirements
of Rule 144 (at any time more than 90 days after the effective date of the Registration Statement for the Initial Public
Offering), the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), or
as to its qualification as a registrant whose securities may be resold pursuant to Form S3 (at any time after it so qualifies),
(ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by
the Company, and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation
of the Commission which permits the selling of any such securities without registration or pursuant to such form.

 

7.3.         Transfer
of Rights. The rights to cause the Company to register Registrable Shares pursuant to Sections 2 and 3 may be assigned
by any Holder to any transferee (a) that is an Affiliated Party, Affiliate, partner, member, manager, beneficiary or stockholder
of such Holder or (b) in connection with the sale or other transfer of all or any portion of such Holder’s Registrable
Shares (each a “Permitted Transferee”). Any Permitted Transferee to whom rights under this Agreement are transferred
will (x) as a condition to such transfer, deliver to the Company, a written instrument by which such Permitted Transferee
agrees to be bound by the obligations imposed upon Holders under this Agreement to the same extent as if such Permitted Transferee
were a Holder under this Agreement and (y) be deemed to be a Holder hereunder. Squadron may assign any of its Permitted Transferees
the authority to exercise any or all of the rights that Squadron has under this Agreement.

 

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7.4.          Governing
Law. This Agreement shall be governed by and construed in accordance with the domestic substantive laws of the State of Delaware,
without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any other
jurisdiction.

 

7.5.          Consent
to Jurisdiction. Each party to this Agreement, by its execution hereof, (a) hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the State of Delaware for the purpose of any action, claim, cause of action
or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or based upon this Agreement or relating
to the subject matter hereof, (b) hereby waives to the extent not prohibited by applicable law, and agrees not to assert,
and agrees not to allow any of its Affiliates to assert, by way of motion, as a defense or otherwise, in any such action, any claim
that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment
or execution, that any such proceeding brought in one of the above-named courts is improper, or that this Agreement or the subject
matter hereof or thereof may not be enforced in or by such court and (c) hereby agrees not to commence or maintain any action,
claim, cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or based upon
this Agreement or relating to the subject matter hereof or thereof other than before one of the above-named courts nor to make
any motion or take any other action seeking or intending to cause the transfer or removal of any such action, claim, cause of action
or suit (in contract, tort or otherwise), inquiry, proceeding or investigation to any court other than one of the above-named courts
whether on the grounds of inconvenient forum or otherwise. Notwithstanding the foregoing, to the extent that any party hereto is
or becomes a party in any litigation in connection with which it may assert indemnification rights set forth in this Agreement,
the court in which such litigation is being heard shall be deemed to be included in clause (a) above. Each party hereto hereby
consents to service of process in any such proceeding in any manner permitted by Delaware law, and agrees that service of process
by registered or certified mail, return receipt requested, at its address specified pursuant to Section 7.9 hereof is reasonably
calculated to give actual notice.

 

7.6.          WAIVER
OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS
THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY
ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION ARISING
OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS
CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED
BY THE OTHER PARTIES HERETO THAT THIS SECTION 7.6 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY ARE RELYING AND WILL RELY
IN ENTERING INTO THIS AGREEMENT. ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 7.6 WITH ANY
COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

 

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7.7.         Exercise
of Rights and Remedies. No delay of or omission in the exercise of any right, power or remedy accruing to any party as a result
of any breach or default by any other party under this Agreement shall impair any such right, power or remedy, nor shall it be
construed as a waiver of or acquiescence in any such breach or default, or of any similar breach or default occurring later; nor
shall any such delay, omission nor waiver of any single breach or default be deemed a waiver of any other breach or default occurring
before or after that waiver.

 

7.8.         Amendment
and Waiver.

 

(a)          Oral
Modifications. This Agreement may not be orally amended, modified, extended or terminated, nor shall any oral waiver of any
of its terms be effective.

 

(b)          Written
Modifications; Waiver. Any term of this Agreement may be amended, modified or terminated and the observance of any term of
this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) with the
prior written consent of (i) the Company, and (ii) Squadron. Any amendment, modification, termination or waiver effected
in accordance with this Section 7.8(b) will be binding on all Holders.

 

7.9.         Notices.
All notices, requests, demands, claims and other communications required or permitted to be delivered, given or otherwise provided
under this Agreement must be in writing and must be delivered, given or otherwise provided:

 

(a)          by
hand (in which case, it will be effective upon delivery);

 

(b)          by
facsimile (in which case, it will be effective upon receipt of confirmation of transmission); or

 

(c)          by
overnight delivery by a nationally recognized courier service (in which case, it will be effective one Business Day after being
deposited with such courier service);

 

in each case, to the address (or facsimile number) listed below:

 

If to the Company, to it at:

 

OrthoPediatrics Corp.

2850 Frontier Drive

Warsaw, Indiana 46582

Attention: Dan Gerritzen

Email: dgerritzen@orthopediatrics.com

Fax No.: 574-269-3692

 

If to Squadron, to it at:

 

Squadron Capital LLC

18 Hartford Avenue

Granby, Connecticut 06035

Attention: David R. Pelizzon

Fax No.: 860 413 9872

 

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If to any Holder other than Squadron, to it at the address set
forth on Schedule I hereto.

 

Each of the parties to this Agreement may specify a different
address or facsimile number by giving notice in accordance with this Section 7.9 to the Company.

 

7.10.         Entire
Agreement; Binding Effect; Assignment. This Agreement, together with any documents, instruments and certificates explicitly
referred to herein, constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes
any and all prior discussions, negotiations, proposals, undertakings, understandings and agreements, whether written or oral, with
respect thereto. This Agreement will be binding upon and inure to the benefit of the personal representatives, successors and permitted
assigns of the respective parties hereto.

 

7.11.         Severability.
If any provision of this Agreement is found by any court of competent jurisdiction to be invalid or unenforceable, the parties
hereby waive such provision to the extent that it is found to be invalid or unenforceable so long as this Agreement as so modified
continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations
or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the
parties. Such provision will, to the maximum extent allowable by law, be modified by such court so that it becomes enforceable,
and, as modified, will be enforced as any other provision hereof, all the other provisions hereof continuing in full force and
effect.

 

7.12.         Headings;
Interpretation. The headings contained in this Agreement are for convenience purposes only and will not in any way affect the
meaning or interpretation hereof. Whenever required by the context, any pronoun used in this Agreement shall include the corresponding
masculine, feminine, or neuter forms, and the singular form of nouns, pronouns, and verbs shall include the plural and vice versa.
The use of the word “including” in this Agreement shall be, in each case, by way of example and without limitation.
The use of the words “or,” “either,” and “any” shall not be exclusive. Reference to any agreement,
document, or instrument means such agreement, document, or instrument as amended or otherwise modified from time to time in accordance
with the terms thereof, and, if applicable, hereof. The parties hereto have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party
by virtue of the authorship of any of the provisions of this Agreement.

 

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7.13.         Counterparts.
This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together
will constitute but one and the same instrument. A signature delivered by facsimile, pdf, electronic mail or other electronic means
shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature
were an original. No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine, pdf, electronic
mail or other electronic means to deliver a signature or the fact that any signature or agreement or instrument was transmitted
or communicated through the use of a facsimile machine, pdf, electronic mail or other electronic means as a defense to the formation
or enforceability of a contract and each such party forever waives any such defense.

  

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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

 

	 	OrthoPediatrics Corp.
	 	 
	 	By:	/s/ Mark Throdahl
	 	 	Name:	Mark Throdahl
	 	 	Title:	President and Chief Executive Officer
	 	 	 	 
	 	Squadron Capital LLC
	 	 
	 	By:	/s/ David R. Pellizon
	 	 	Name:	David R. Pelizzon
	 	 	Title:	President

 

[Signature Page to Registration Rights
Agreement]

  

     

     

    

  

Schedule
I

 

NAMES AND ADDRESSES OF HOLDERS (OTHER
THAN SQUADRON)

 

	Name	 	Address and Fax Number
	 	 	 

 

     

     

    

  

EXHIBIT A - INVESTORS

 

	Investor	 	Purchase
    Price	 	 	Share	 	 	 
	Squadron
    Capital, LLC	 	$	36,465,309.20	 	 	 	4,157,960	 	 	(to
    be paid through conversion of $22,000,000 in secured debt and $14,465,909.20 in cash)        
	Deborah L and Howard T. Acree	 	$	19,995.60	 	 	 	2,280	 	 
	Farmers State
    Bank Custodian FBO Mark A. Bailey IRA	 	$	19,995.60	 	 	 	2,280	 	 
	Patrick L. and Michelle Ball	 	$	29,993.40	 	 	 	3,420	 	 
	Bernie B.
    Berry III	 	$	52,620.00	 	 	 	6,000	 	 
	William K. Boncosky	 	$	169,997.68	 	 	 	19,384	 	 	 
	Bryan A. Boyer	 	$	9,997.80	 	 	 	1,140	 	 	 
	Jull Caldwell	 	$	4,998.90	 	 	 	570	 	 	 
	IRA FBO Lori
    Carpenter	 	$	10,006.57	 	 	 	1,141	 	 	 
	Dennis Cavender	 	$	100,004.31	 	 	 	11,403	 	 	 
	Joseph H Cerbin	 	$	99,995.54	 	 	 	11,402	 	 	 
	Scott Cochran	 	$	19,995.60	 	 	 	2,280	 	 	 
	Jana Cox	 	$	40,008.74	 	 	 	4,562	 	 	 
	Daniel J. Daluga	 	$	249,997.62	 	 	 	28,506	 	 	 
	Mallory Detweiler	 	$	10,006.57	 	 	 	1,141	 	 	 
	Farmers State Bank Custodian FBO Mark A. Fox
    IRA	 	$	49,997.77	 	 	 	5,701	 	 	 
	Kenneth D.
    and Sarah M. Fox	 	$	20,404.37	 	 	 	2,281	 	 	 
	Delores J. Galbreath	 	$	19,995.60	 	 	 	2,280	 	 	 
	Jeffrey and
    Cheryl Gordon	 	$	24494.50	 	 	 	2,850	 	 	 
	Michael E. Highhouse	 	$	299,995.39	 	 	 	34,207	 	 	 
	Dan and Karen
    L. Hoernschemeyer	 	$	49,997.77	 	 	 	5,701	 	 	 
	Norman L. Hoernschemeyer	 	$	49,997.77	 	 	 	5,701	 	 	 
	Steven F.
    Isenberg	 	$	500,004.01	 	 	 	57,013	 	 	 
	Orthonorcal Inc. 401k PSP, FBO Jeffrey S. Kanel	 	$	30,002.17	 	 	 	3,421	 	 	 
	Troy Alan
    Kerwin	 	$	30,002.17	 	 	 	3,421	 	 	 
	Rebekah Koch	 	$	20,171.00	 	 	 	2,300	 	 	 
	Edward J.
    and Suzanne M. Krowlak	 	$	49,997.77	 	 	 	5,701	 	 	 
	Gordon J. Millar	 	$	10,006.57	 	 	 	1,141	 	 	 
	Farmers State
    Bank Custodian FBO Steven B. Miller IRA	 	$	30,002.17	 	 	 	3,421	 	 	 
	John H. Odle	 	$	20,004.37	 	 	 	2,281	 	 	 
	Randy S. Roof	 	$	19,995.60	 	 	 	2,280	 	 	 
	UBS Financial Services FBO Daniel Rudzinski
    IRA	 	$	19,995.60	 	 	 	2,280	 	 	 
	David B. Steinberg	 	$	9,997.80	 	 	 	1,140	 	 	 
	Mark C. Throdahl	 	$	100,004.31	 	 	 	11,403	 	 	 
	Nina W. Turnery
    Trust u/a dated June 27, 2005	 	$	99,995.54	 	 	 	11,402	 	 	 
	Samuel B. VanLandingham	 	$	69,993.37	 	 	 	7,981	 	 	 
	James M. and
    Saundra L. von Seggern	 	$	29,993.40	 	 	 	3,420	 	 	 
	Robert Ward	 	$	19,995.60	 	 	 	2,280	 	 	 
	Wizardry Investments
    Pty Ltd as Trustee for Medical Specialties Investment Trust	 	$	21,925.00	 	 	 	2,500	 	 	 
	Michael Yergler	 	$	100,004.31	 	 	 	11,403	 	 	 
	Total	 	$	38,999,997.06	 	 	 	4,446,978Exhibit 10.2

 

ORTHOPEDIATRICS CORP.

AMENDED AND RESTATED

2007 EQUITY INCENTIVE PLAN

 

1.            Plan
Purpose. The purpose of the ‘Plan is to promote the long-term interests of the Company and its stockholders by providing
a means for attracting, retaining and motivating Employees, Directors, Advisors and Consultants who provide services to the Company
and/or any of its Subsidiaries. This Plan was originally approved by the Board of Directors and the Shareholders of the Company
as of November 30, 2007 and has been amended and restated as of December 18, 2012.

 

2.            Definitions.
The following definitions are applicable to the Plan:

 

“Advisor” means a non-Employee
member of an advisory board established by the Company or a Subsidiary.

 

“Award” means the grant
by the Committee of a Nonqualified Stock Option, Restricted Stock or any combination of the foregoing pursuant to the terms of
the Plan.

 

“Award Agreement” means
the written agreement setting forth the terms and provisions applicable to an Award granted under the Plan.

 

“Board” means the Board
of Directors of the Company.

 

“Cause” means, with respect
to any Participant: (i) a material breach by Participant of his or her employment, consulting, service or similar agreement
with the Company or a Subsidiary, or of any confidentiality, invention assignment, non-competition or similar agreement with the
Company or a Subsidiary; (ii) the repeated or continued failure by Participant to perform any of his or her material duties
or obligations under any such agreement; (iii) Participant’s act or omission that materially injures the business of
the Company or a Subsidiary; (iv) the conviction of, or admission of guilt or plea of no contest by, the Participant in a
criminal proceeding with respect to any crime, whether or not involving the Company or a Subsidiary, which constitutes a felony
in the jurisdiction involved; the embezzlement or misappropriation of property of the Company, a Subsidiary or any of their affiliates
or any other act involving fraud or dishonesty with respect to the Company, a Subsidiary or any of their affiliates or any breach
by the Participant of his or her statutory common law or contractual duties not to compete with the Company, a Subsidiary or any
of their affiliates or not to disclose or reveal confidential information or trade secrets of the Company, a Subsidiary or any
of their affiliates.

 

     

    	 

    

 

“Change of Control Transaction”
means any of the following events: (i) the consummation by the Company of a merger, share exchange, reorganization, consolidation
or similar transaction other than a transaction that would result in the Voting Stock of the Company outstanding immediately
prior to such transaction continuing immediately thereafter to entitle the Company’s Shareholder Body (either by remaining
outstanding or by being converted into Voting Stock of the surviving or acquiring entity) to exercise or direct the exercise of
voting power sufficient, under ordinary circumstances, to elect a majority of the Company’s (or the surviving or acquiring
entity’s) directors or equivalent persons or (ii) the consummation by the Company of a sale or disposition of all or
substantially all of the Company’s assets, other than a sale or disposition to an entity controlled by the Company or its
Shareholder Body. For purposes of this definition: (x) one party shall be deemed to “control” another party if
the first party owns, directly or indirectly, securities of the second party that entitle the first party to exercise or direct
the exercise of voting power sufficient, under ordinary circumstances, to elect a majority of the second party’s directors
or equivalent persons; (y) the term “Voting Stock” means, with respect to an entity, all securities of any class
or series of the entity with voting power in the election of its directors or equivalent persons and (z) the term “Shareholder
Body” means the holders of the Company’s Voting Stock immediately prior to any transaction in question.

 

“Code” means the Internal
Revenue Code of 1986, as amended, and interpretive rules and regulations thereunder.

 

“Committee” means the Committee,
if any, appointed by the Board to administer the Plan. Unless and until the Board appoints the Committee, the Board shall function
as the Committee.

 

“Company” means OrthoPediatrics
Corp., a Delaware corporation.

 

“Consultant” means any
person who is engaged by the Company or any of its Subsidiaries to render consulting or advisory services and is compensated for
such services.

 

“Date of Grant” means the
date on which an Award is granted, as determined by the Committee; provided, however, that in the absence of a Committee determination,
the date on which the Committee adopts a resolution granting the Award shall be the Date of Grant.

 

“Director” means any individual
who is a member of the Board or a member of the Board of Directors of a Subsidiary, whether or not such individual is also an Employee.

 

“Disability” means total
and permanent disability as determined by the Committee pursuant to Section 22(e)(3) of the Code.

 

“Employee” means any person
employed by the Company or a Subsidiary. An officer or Director of the Company or a Subsidiary may also be an Employee.

 

“Exercise Price” means
the price per Share at which the Shares subject to an Option may be purchased upon exercise of the Option.

 

“Fair Market Value” means,
with respect to Shares as of any date, the fair market value of one Share as of such date, as determined by the Committee in compliance
with any applicable provisions of the Code on the basis of such factors, considerations and information as may be applicable under
the circumstances; provided, however, that if the Shares are traded on an established securities exchange or other public trading
market on the date in question, then the Fair Market Value shall be the last reported sale price for a Share on such exchange or
market as of the close of trading on the date in question.

 

    2 

    	 

    

 

“Immediate Family” means,
with respect to any Participant, his or her spouse, children, grandchildren and adopted children, as well as the children, grandchildren
and adopted children of the Participant’s spouse, as well as the legal representatives of any of those persons who are minors.

 

“Nonqualified Stock Option”
or “Option” means an option to purchase Shares under this Plan. These options are not intended to qualify under
Section 422 of the Code.

 

“Participant” means an
individual or entity selected by the Committee to receive an Award pursuant to this Plan.

 

“Permitted Transferee”
means, with respect to any Participant, any of the following:

 

(a)          a
member of his or her Immediate Family;

 

(b)          an
irrevocable trust solely for the benefit of the Participant or members of his or her Immediate Family;

 

(c)          a
partnership, limited liability company or corporation, the sole owners of which are the Participant and members of his or her Immediate
Family;

 

(d)          a
revocable trust with respect to which the Participant, as settlor, retains the right of revocation or amendment until his or her
death; or

 

(e)          if
the Participant is an entity, the equity owners of such entity.

 

“Plan” means this OrthoPediatrics
Corp. Amended and Restated 2007 Equity Incentive Plan.

 

“Recapitalization” means
any stock split, reverse stock split, stock dividend, recapitalization or similar transaction in which the number of outstanding
Shares is increased or decreased without an exchange of reasonably equivalent value.

 

“Reorganization” means
any dissolution, merger, consolidation, share exchange or similar statutory transaction in which the outstanding Shares by operation
of law, are converted into or exchanged for different securities, cash or other property or any combination thereof.

 

“Restricted Period” means
the period of time selected by the Committee for the purpose of determining when restrictions are in effect under Section 10
hereof with respect to Restricted Stock awarded under the Plan.

 

“Restricted Stock” means
Shares that have been contingently awarded to a Participant by the Committee subject to the restrictions referred to in Section 10
hereof, so long as such restrictions are in effect.

 

    3 

    	 

    

 

“Shares” means shares of
the Company’s Common Stock, par value $0.00025 per share.

 

“Subsidiary(ies)” means
any entity of which at least a majority of the outstanding equity interest is held by the Company, including, but not limited to,
OrthoPediatrics US Distribution Corp.

 

“Termination Date” means,
with respect to any Participant, the date of such Participant’s Termination of Service.

 

“Termination of Service”
means, in the case of an Employee, the termination of all employment relationships between the Employee and the Company and any
Subsidiary, and in the case of an individual or entity who is not an Employee, the termination of all service relationships between
the individual and the Company and any Subsidiary. If a Participant’s relationship with the Company changes but, after the
change, the Participant continues to be an Employee, Director, Advisor or Consultant, then no Termination of Service shall be deemed
to have occurred by reason of such change.

 

3.            Administration.

 

(a)          Committee.
The Plan shall be administered by the Committee, which shall consist of two (2) or more members of the Board. The members of the
Committee shall be appointed by the Board. A majority of the Committee shall constitute a quorum, and the acts of a Majority- of
the members present at any meeting at which a quorum is present, or acts approved in writing by all members of the Committee without
a meeting, shall be acts of the Committee.

 

(b)          Committee
Authority. Except as expressly limited by the Plan or the Board, the Committee shall have all powers and discretion necessary
or appropriate to administer the Plan and control its operation, including, but not limited to, the power to (a) select Participants,
grant Awards and provide the terms and conditions of all Awards (which need not be identical among Participants), (b) interpret
the Plan and Awards, and (c) adopt rules and procedures for the administration, interpretation and operation of the Plan.
In particular, the Committee shall have the power to prescribe the following terms and conditions with regard to the grant of any
Option: (i) the Exercise Price of the Option (provided that such Exercise Price shall not be less than the Fair Market Value
of the Shares on the Date of Grant); (ii) the number of Shares subject to the Option; (iii) the vesting schedule of the
Option; (iv) the manner in which the Option is to be exercised; (v) the expiration date of the Option, if other than
as provided in Section 8 of this Plan; (vi) the transfer restrictions, if any, applicable to the Shares acquired upon
exercise of the Option; (vii) whether, as a condition of granting the Option, the Participant is required to surrender for
cancellation any Options previously granted to him or her; (viii) whether the Participant shall be allowed to pay the Exercise
Price in a form other than cash, as contemplated by Section 9(c) of this Plan and (ix) any other terms and conditions
acceptable to the Option which the Committee determines to be appropriate in its sole discretion. Subject to any limitations on
the Committee’s authority imposed by the Board or the terms of the Plan; all determinations and decisions made by the Committee
pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, and shall be given the maximum deference
permitted by law. Notwithstanding the foregoing, this Plan is intended to provide equity incentive compensation that complies with,
or is exempt from, the standards for nonqualified deferred compensation established by section 409A of the Code. Despite any
other provisions of this Plan to the contrary, the Committee shall not enter into any Award Agreement with any terms and conditions
that would subject the Participant to gross income inclusion, interest, or additional tax pursuant to Code section 409A.

 

    4 

    	 

    

 

(c)          Delegation
of Authority. The Committee may delegate to the Chief Executive Officer of the Company the authority to grant Awards to Employees
(other than the Chief Executive Officer). The delegation of authority under this Section 3(c) shall be subject to such conditions
and limitations as may be determined by the Committee and by the Board, such as limitations with respect to the number of Shares
that may be subject to Awards during a specified period of time and conditions with respect to the Exercise Price of Options granted
pursuant to this delegated authority. If the Chief Executive Officer makes grants pursuant to the delegated authority under this
Section 3(c), references in this Plan to the “Committee,” as they relate to making such grants (but not to the
subsequent administration of such grants), shall be deemed to refer to the Chief Executive Officer.

 

4.            Participants.
The-Committee, in its sole discretion, may select from time to time Participants in the Plan from those Employees, Directors, Advisors
and Consultants who, in the opinion of the Committee, have the capacity for contributing in a substantial measure to the successful
performance of the Company or any Subsidiary.

 

5.            Substitute
Options. In the event that the Company consummates a transaction described in Section 424(a) of the Code, persons who
become Employees or Directors on account of such transaction may be granted Options in substitution for Options granted by the
former employer. The Committee, in its sole discretion and consistent with Section 424(a) of the Code, shall determine the
Exercise Price of the substitute Options.

 

6.            Award
Agreement. Each Award shall be evidenced by an Award Agreement containing the terms and the conditions of the Award, as determined
by the Committee, in its sole discretion. With respect to Awards of Options, in addition to any other terms and conditions the
Committee establishes, the Award Agreement shall specify the Exercise Price (which shall not be less than the Fair Market Value
of the Shares on the Date of Grant), the time or times at which an Option will vest or become exercisable, the number of Shares
to which the Option pertains, any conditions to exercise of the Option, and whether the Option is intended to be an Incentive Stock
Option or a Nonqualified Stock Option.

 

7.            Shares
Subject to Plan. The maximum aggregate number of Shares that may be issued pursuant to Awards or subject to outstanding Awards
under the Plan is twenty-five percent (25%) of the then outstanding shares of capital stock of the Company, whether common or
preferred. Shares that are withheld to satisfy payment of the Exercise Price or any tax withholding obligation, and any Shares
subject to an Award that expires, terminates, is forfeited or is surrendered for cancellation, may be subject to new Awards under
the Plan.

 

8.            Termination
of Options. An Option shall terminate on, and may not be exercised after, the tenth (10th) anniversary of
the Date of Grant; provided, however, that except to the extent, if any, otherwise provided in the applicable Award Agreement,
an Option will terminate earlier than such tenth (10th) anniversary under any of the following circumstances:

 

    5 

    	 

    

 

(a)          Change
of Control Transaction. In connection with any Change of Control Transaction, an Option may terminate earlier in accordance
with Section 12 of this Plan.

 

(b)          Award
Agreement. An Option may terminate earlier in accordance with the applicable Award Agreement.

 

(c)          Termination
of Service Generally. If a Participant has a Termination of Service for any reason other than his or her Disability, death
or termination for Cause, then. (i) any Option or portion thereof that is unvested (or otherwise unexercisable) as of the
Termination Date shall terminate as of the Termination Date and (ii) any Option or portion thereof that has previously vested
(and is otherwise exercisable) as of the Termination Date shall terminate three (3) months following the Termination Date
(however, if the Participant should die during those three (3) months, such Option or portion thereof shall terminate one
(1) year following the Termination Date) (understanding in any case that such Option or portion thereof may terminate sooner
under the circumstances described or referred to in any other provision of this Section 8).

 

(d)          Disability
or Death. If a Participant has a Termination of Service as a result of his or her Disability or death, then (i) any Option
or portion thereof that is unvested (or otherwise unexercisable) as of the Termination Date shall terminate as of the Termination
Date and (ii) any Option or portion thereof that has previously vested (and is otherwise exercisable) as of the Termination
Date shall terminate one (1) year following the Termination Date (understanding that such Option or portion thereof may terminate
sooner under the circumstances described or referred to in any other provision of this Section 8).

 

(e)          Cause.
If the Participant has a Termination of Service as a result of a termination for Cause by the Company or any Subsidiary, then any
Option held by the Participant as of the Termination Date shall terminate as of the date and time the Participant is terminated.
In addition, notwithstanding any other provision of this Plan, if the Committee determines that the Participant has engaged, whether
before or after any Termination of Service, in conduct that constitutes Cause, then the Participant automatically shall forfeit
all Shares underlying any exercised portion of an Option for which the Company has not yet delivered the share certificates, upon
refund by the Company of the Exercise Price paid by the Participant for such Shares (subject to any right of setoff by the Company).

 

9.            Exercise
of Options.

 

(a)          Exercise
Period. Subject to any vesting provisions or other conditions, restrictions or limitations respecting the exercise of an Option
as determined by the Committee, an Option may be exercised, in whole or in part, at any time beginning on the Date of Grant and
ending on the date the Option expires or otherwise terminates in accordance with the Award Agreement and this Plan.

 

    6 

    	 

    

 

(b)          Parties
Who May Exercise. During the lifetime of the Participant to whom an Option was granted, such Option may be exercised only by
the Participant unless the Option has been properly transferred in accordance with Section 13, in which case such Option may
be exercised by the transferee during the period such Option otherwise would have been exercisable by the Participant. After the
death of the Participant, but prior to the termination of the Option, such Option may be exercised by the Participant’s legal
representative.

 

(c)          Notice
and Payment. To exercise an Option, the Participant must give written notice to the Company (which shall specify the number
of Shares with respect to which the Participant elects to exercise the Option) together with full payment of the Exercise Price.
The date of exercise shall be the date on which the notice and payment are received by the Company. Payment of the Exercise Price
shall be made in cash (including check, bank draft or money order), or if permitted by the Award Agreement, (i) by delivering
Shares already owned by the Participant for more than six (6) months and having an aggregate Fair Market Value on the date
of exercise equal to the aggregate Exercise Price, (ii) by requesting that the Company withhold Shares issuable upon exercise
of the Option having an aggregate Fair Market Value on the date of exercise equal to the aggregate Exercise Price or (iii) through
a combination of cash and such Shares.

 

(d)          Alternative
Means of Settlement Following Death of Participant. Following the death of any Participant to whom an Option was granted under
the Plan, the Committee, as an alternative means of settlement of such Option, may elect to pay to the person properly exercising
such Option the amount by which the Fair Market Value per Share on the date of exercise exceeds the Exercise Price, multiplied
by the number of Shares with respect to which such Option is properly exercised. Any such settlement of an Option shall be considered
an exercise of such Option for all purposes of the applicable Award Agreement and the Plan.

 

10.          Terms
and Conditions of Restricted Stock. The Committee shall have full and complete authority, subject to the limitations of the
Plan, to grand Awards of Restricted Stock and, in addition to the terms and conditions contained in paragraphs (a) through
(c) of this Section 10, to provide such other terms and conditions (which need not be identical among Participants) in respect
of such Awards and the vesting thereof as the Committee shall determine and provide in the Award Agreement.

 

(a)          Restricted
Period; Rights of Holder. At the time of an Award of Restricted Stock, the Committee shall establish for each Participant a
Restricted Period during which, or at the expiration of which, the Shares of Restricted Stock shall vest. The vesting of Restricted
Stock may also be conditioned upon the achievement of specified performance goals or objectives. Except as otherwise provided in
the Award Agreement and in Section 10 of this Plan, the Participant, as owner of such Shares, shall have all the rights of
a stockholder, including, but not limited to, the right to receive all dividends paid with respect to such Shares and the right
to vote such Shares. The Committee shall have the authority, in its discretion, to accelerate the time at which any or all of the
restrictions shall lapse or to remove any or all of such restrictions, whenever it may determine that such action is appropriate
by reason of changes in applicable tax or other laws or other changes in circumstances occurring after the commencement of the
Restricted Period.

 

    7 

    	 

    

 

(b)          Forfeiture.
In the case of a Participant’s Termination of Service, unless the Committee shall otherwise determine, all Shares of Restricted
Stock theretofore awarded to such Participant that, at the time of such Termination of Service; are subject to the restrictions
imposed in accordance with Section 10(a) shall, upon such Termination of Service, be forfeited and returned to the Company.

 

(c)          Certificates.
Each certificate issued in respect of Shares of Restricted Stock shall be registered in the name of the Participant and deposited
by the Participant, together with a stock power endorsed in blank, with the Company and shall bear the following (or a similar)
legend:

 

“The transferability of this certificate and
the shares of stock represented hereby are subject to the terms and conditions (including forfeiture provisions) contained in the
Amended and Restated 2007 Equity Incentive Plan of the Company and in the Award Agreement entered into between the registered owner
and the Company. Copies of such Plan and Award Agreement are on file in the offices of the Company.”

 

Upon lapse of the restrictions imposed on Shares of
Restricted Stock, the Company shall re-deliver to the Participant the certificate(s) and stock power deposited with it pursuant
to this Section 10(c). Notwithstanding the foregoing, the Committee may determine that the Company will not issue certificates
in respect of Shares of Restricted Stock until all restrictions on such Shares have lapsed.

 

(d)          Award
Agreement. At the time of an Award of Shares of Restricted Stock, the Participant shall enter into an Award Agreement with
the-Company, in a form specified by the Committee, agreeing to the terms and conditions of the Award.

 

(e)          No
Transfer. Except as otherwise provided in the Award Agreement, a Participant shall not transfer, assign or encumber Restricted
Stock prior to the lapse of the restrictions thereon.

 

11.          Adjustments
Upon Recapitalization. In the event of any Recapitalization, the number and class of shares and Exercise Price of Options with
respect to Awards previously granted under the Plan, may be adjusted by the Committee, in its sole discretion, in order to preclude,
to the extent practicable, the enlargement or dilution of the rights and benefits incident to such Awards. Any determination by
the Committee with respect to the foregoing matters shall be conclusive. Any shares of stock or other securities received as a
result of any Recapitalization by a Participant with respect to Restricted Stock shall be subject to the same restrictions and
any certificate(s) or other instruments representing or evidencing such shares or securities shall be given a legend and deposited
with the Company in the manner provided in Section 10(c) hereof.

 

12.          Effects
of Reorganization; Change of Control. Except as otherwise specifically provided in the Award Agreement, Awards will be affected
by a Reorganization as follows:

 

(a)          Dissolution.
If the Reorganization is a dissolution of the Company, then (i) any continuing restrictions on Shares of Restricted Stock
shall lapse and (ii) each outstanding Option-shall terminate, but each each Participant to whom the Option was granted shall
have the right; immediately prior to such dissolution, to exercise his Option in full, and the Company shall notify each Participant
of such right within a reasonable period of time prior to any dissolution.

 

    8 

    	 

    

 

(b)          Merger,
Etc. If the Reorganization is a merger, consolidation, share exchange or similar statutory transaction, upon the effective
date of such Reorganization, (i) each Participant holding an Option shall be entitled, upon exercise of his Option in accordance
with all the terms and conditions of the Plan and the applicable Award Agreement, to receive in lieu of Shares, the same stock,
property or other consideration, calculated on a per share basis, as holders of Shares were entitled to receive in connection with
the Reorganization (the “Reorganization Consideration”) and (ii) each Share of Restricted Stock shall be converted
into or exchanged for the Reorganization Consideration, which shall be subject to the same restrictions to which the Restricted
Stock was subject (unless the Committee accelerates the lapse of such restrictions) and any certificate(s) or other instruments
representing or evidencing the Reorganization Consideration shall be given a legend and deposited with the Company in the manner
provided in Section 10(c) hereof.

 

(c)          Change
of Control. In connection with any Change of Control Transaction, the Committee may, in its sole discretion, accelerate in
whole or in part the vesting of any Option or the lapse of restrictions on any Restricted Stock. If the Committee elects to accelerate
the vesting of any Option, it may also accelerate the expiration of such Option, provided that the Participant is allowed a reasonable
opportunity to exercise the Option.

 

The adjustments contained in this Section
and the manner of application of its provisions shall be determined solely by the Committee.

 

13.          Assignments
and Transfers. Except as expressly authorized by the Committee in the Award Agreement or as set forth in this Section 13,
Awards may not be assigned, encumbered or transferred otherwise than by will or the laws descent and distribution, or pursuant
to a qualified domestic relations order (as defined under the Code or Title I of the Employee Retirement Income Security Act
of 1974, as amended, or the regulations thereunder). The Company shall not be liable to any person for honoring the exercise of
an Option granted to a deceased Participant by the person or persons the Company shall have determined in good faith to have acquired
the Option. With the consent of the Committee and subject to such rules as the Committee may adopt to preserve the purposes of
the Plan, a Participant to whom a Nonqualified Stock Option has been granted may transfer the Nonqualified Stock Option without
consideration to any Permitted Transferee. Such a transfer shall be effective only if the Participant notifies the Committee in
advance and in writing of the terms of the transfer, and if the Committee consents thereto and determines that the transfer complies
with the Plan and the applicable Award Agreement. Upon transfer, the Nonqualified Stock Option shall remain subject to the terms
of the Plan and the applicable Award Agreement, except that the Permitted Transferee shall not be permitted to transfer the Nonqualified
Stock Option otherwise than by will or by the laws of descent and distribution.

 

14.          Participant
Rights Limited. No Employee, Director, Advisor, Consultant or other person shall have a right to be selected as a Participant
nor, having been so selected, to be selected again as a Participant. No Employee; Director, Advisor, Consultant or other person:
shall have any claim or right to be granted an Award under the Plan or under any other incentive or similar plan of the Company.
Neither the Plan nor any action taken pursuant to the Plan shall be construed as giving any person any right to be retained in
the employ or service of the Company.

 

    9 

    	 

    

 

15.          Stockholder
Rights; Voting. Except to the extent provided with respect to an Award of Restricted Stock in accordance with Section 10
above, no Participant or other person shall have any of the rights or privileges of a stockholder of the Company with respect to
any Shares issuable pursuant to an Award unless and until certificates representing the Shares shall have been issued, recorded
on the records of the Company or its transfer agents or registrars, and delivered to the Participant or other person entitled to
the Shares. As to the election of members of the Board, holders of Shares issued pursuant to Awards granted under the Plan shall
vote, consent and take such other action as to such Shares consistent with the provisions of any stockholders agreement that may
be in effect from time to time among the Company and its stockholders, whether or not such holders of Shares issued under the Plan
are parties thereto.

 

16.          Delivery
and Registration of Stock. The Company’s obligation to deliver Shares with respect to an Award shall be subject to such
conditions, restrictions and contingencies as the Company may establish, including but not limited to, the receipt of a representation
as to the investment intention of the person to whom Shares are to be delivered, in such form as the Company shall determine to
be necessary or advisable to comply with any applicable federal or state securities legislation. It may be provided that any representation
requirement shall become inoperative upon a registration of the Shares or other action eliminating the necessity of such representation.
If, at the time Shares are to be delivered under the Plan, the class of stock of which such Shares are a part is listed or traded
on any stock exchange or quotation or similar system, then the Company shall not be required to deliver such Shares until any applicable
requirements of such exchange or system have been complied with. In addition, the Company shall not be required to deliver any
Shares under the Plan prior to the completion of such registration or other qualification of such Shares under any state or federal
law, rule or regulation, as the Company shall determine to be necessary or advisable.

 

17.          Withholding
Tax. Upon the lapse of restrictions on any Shares of Restricted Stock (or at such earlier time, if any, that an election is
made by the Participant under Section 83(b) of the Code, or any successor provision thereto, to include the value of such Shares
in taxable income), the Company shall have the right to require the Participant or other person receiving such Shares to pay the
Company the amount of any taxes that the Company is required to withhold with respect to such Shares or, in lieu thereof, at the
Company’s election, to retain (and sell, if the Company so chooses) a sufficient number of Shares held by it to cover the
amount required to be withheld. The Company shall also have the right to deduct from all dividends paid with respect to Shares
of Restricted Stock the amount of any taxes that the Company is required to withhold with respect to such dividend payments.

 

18.          Termination,
Amendment and Modification of Plan. The Board may at any time terminate, and may at any time and from time to time and in any
respect amend or modify, the Plan; provided, however, no termination, amendment or modification of the Plan shall in any manner
affect any Award theretofore granted pursuant to the Plan without the consent of the Participant or, if applicable, the transferee
of the Award.

 

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19.          Effective
Date and Term of Plan. The Plan shall become effective upon its adoption by the Board. After approval by the Company’s
stockholders, the Plan shall continue in effect for a term of ten (10) years from the date of adoption by the Board of Directors
unless sooner terminated pursuant to Section 18 above.

 

20.          Governing
Law. The Plan and Award Agreements shall be construed in accordance with and governed by the laws of the State of Indiana.

 

Adopted by the Board of Directors

as of December 18, 2012

 

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