Document:

Exhibit 10.1

 

NON-QUALIFIED
STOCK OPTION AGREEMENT

 

THIS
NON-QUALIFIED STOCK OPTION AGREEMENT (the “Agreement”) is entered into as of ______________, 2017 (the “Grant
Date”) between TimefireVR Inc. (the “Company”) and __________________ (the “Optionee”).

 

WHEREAS,
by action taken by the Board of Directors (the “Board”) it has adopted the 2016 Equity Incentive Plan, as amended (the
“Plan”); and

 

WHEREAS,
pursuant to the Plan, it has been determined that in order to enhance the ability of the Company to attract and retain qualified
employees, consultants and directors, the Company has granted the Optionee the right to purchase the common stock of the Company
pursuant to stock options.

 

NOW
THEREFORE, in consideration of the mutual covenants and promises hereafter set forth and for other good and valuable consideration,
receipt of which is acknowledged, the parties hereto agree as follows:

 

1.       Grant
of Non-Qualified Options. On the Grant Date, the Company irrevocably granted to the Optionee, as a matter of separate agreement
and not in lieu of salary or other compensation for services, the right and option to purchase all or any part of _____________
shares of authorized but unissued or treasury common stock of the Company (the “Options”) on the terms and conditions
herein set forth. The Optionee acknowledges receipt of a copy of the Plan, as amended.

 

2.       Price.
The exercise price of the Options is $_______ per share. 

 

3.       Vesting
- When Exercisable. 

 

(a)       The
Options shall vest as follows: ____________ options shall be fully vested on the date of grant. The remainder of the options shall
vest in two approximately equal annual increments with the first vesting date being one year from the Grant Date, subject to the
Optionee’s continued employment on each applicable vesting date. Any fractional vesting shall be rounded first up, then down,
to the extent necessary. Notwithstanding any other provision in this Agreement, the Options shall vest immediately on the occurrence
of a Change of Control as defined under the Plan. In the event of a Change of Control, the Options shall be assumed or substituted
by the successor corporation or a parent or subsidiary of the successor corporation.  If the successor corporation refuses
to assume or substitute for the Options, all Options immediately prior to the closing of the Change of Control event will automatically
be exercised by a net exercise of the Options, under which the Company will not require a payment of the exercise price of the
Options in cash but will reduce the number of shares of stock issued upon exercise by a whole number of shares based upon the price
paid per share by the successor corporation. For example, if the successor corporation pays $____ per share and your exercise price
is $____, if you hold ______ options, the Company will issue you ____ shares immediately prior to the Change of Control event.
If the successor corporation pays a price per share which is below the exercise price under Section 2, then the Options will terminate
immediately upon the Change of Control event if they are not assumed.

 

(b)       Subject
to Sections 6.8 - 6.11 of the Plan, any of the vested Options may be exercised prior to and until 6:00 p.m. New York time five
years from the Grant Date (the “Expiration Date”). None of the Options may be exercised prior to vesting.

 

(c)       Notwithstanding
any other provision of this Agreement, upon resolution of the Board or the Committee (as defined in the Plan), the Options, whether
vested or unvested, shall be immediately forfeited if any of the events specified in Sections 14.1 and 14.2 of the Plan, as applicable,
occur.

 

4.       Termination
of Relationship. The Options granted hereunder shall be subject to the termination provisions under Sections 6.8 - 6.11 of
the Plan.

 

5.       Forfeiture
and Clawback. The Options granted hereunder shall be subject to the forfeiture and clawback provisions under Sections 14.1
and 14.2 of the Plan.

 

6.       Method
of Exercise. The Options shall be exercisable by a written notice in the form attached to this Agreement, which shall:

 

(a)       be
signed by the person or persons entitled to exercise the Options and, if the Options are being exercised by any person or persons
other than the Optionee, be accompanied by proof, satisfactory to counsel for the
Company, of the right of such person or persons to exercise the Options; 

 

(b)       be
accompanied by full payment of the exercise price by tender to the Company of an amount equal to the exercise price multiplied
by the number of underlying shares being purchased either in cash, by wire transfer, or by certified check or bank cashier’s
check, payable to the order of the Company, or by a cashless exercise in accordance with Section 6(d), below; 

 

(c)       be
accompanied by payment of any amount that the Company, in its sole discretion, deems necessary to comply with any federal, state
or local withholding requirements for income and employment tax purposes. If the Optionee fails to make such payment in a timely
manner, the Company may: (i) decline to permit exercise of the Options or (ii) withhold and set-off against compensation and any
other amounts payable to the Optionee the amount of such required payment. Such withholding may be in the shares underlying the
Options at the sole discretion of the Company.

 

(d)       Cashless
Exercise. 

 

(i)              
No Effective Registration Statement. At any such time that the shares issuable upon exercise of the Options are not
registered on a registration statement declared effective by the Securities and Exchange Commission, the Optionee may, in its sole
discretion, exercise the Options in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made
to the Company upon such exercise, elect instead to receive upon such exercise the “Net Number” of shares of common
stock determined according to the following formula:

 

Net Number = (A x B) - (A x C) 

                                   
       B

 

For purposes of the foregoing formula:

 

A = the total number of shares with respect
to which the Options are then being exercised. 

 

B = the closing
sale price of the shares of common stock on the principal market on which the common stock is then traded on the date immediately
preceding the date of exercise, as quoted on such exchange or market on the day of determination and as reported on Bloomberg.com
or such other source as the Company deems reliable.

 

C = the Exercise Price then in effect for the
applicable Options at the time of such exercise. 

 

(ii)            
Effective Registration Statement. At any such time that the shares issuable upon exercise of the Options are
registered on a registration statement declared effective by the Securities and Exchange Commission, the Optionee may, in its sole
discretion, exercise the Options in whole or in part and, in lieu of making the cash payment, utilize a broker-assisted cashless
exercise procedure in accordance with instructions to be provided by the Company.

 

(e)
       The certificate or certificates for shares of common stock as to which the Options shall
be exercised shall be registered in the name of the person or persons exercising the Options.

 

7.       Anti-Dilution
Provisions. The Options granted hereunder shall have the anti-dilution rights set forth in Section 11 of the Plan.

 

8.       Necessity
to Become Holder of Record. Neither the Optionee, the Optionee’s estate, nor any Permitted Transferee shall
have any rights as a shareholder with respect to any shares underlying the Options until such person shall have become the holder
of record of such shares. No dividends or cash distributions, ordinary or extraordinary, shall be provided to the holder if the
record date is prior to the date on which such person became the holder of record thereof.

 

9.       Reservation
of Right to Terminate Relationship. Nothing contained in this Agreement shall restrict the right of the Company to terminate
the relationship of the Optionee at any time, with or without cause. The termination
of the relationship of the Optionee by the Company, regardless of the reason therefor,
shall have the results provided for in Sections 6.8 – 6.10 of the Plan.

 

10.       Conditions
to Exercise of Options. If a registration statement on Form S-8 (or any other successor form) is not effective as to the shares
of common stock issuable upon exercise of the Options, the remainder of this Section 10 is applicable as to federal law. In order
to enable the Company to comply with the Securities Act of 1933 (the “Securities Act”) and relevant state law, the
Company may require the Optionee, the Optionee’s
estate, or any Permitted Transferee as a condition of the exercising of the Options
granted hereunder, to give written assurance satisfactory to the Company that the shares subject to the Options are being acquired
for such person’s own account, for investment only, with no view to the distribution of same, and that any subsequent resale
of any such shares either shall be made pursuant to a registration statement under the Securities Act and applicable state law
which has become effective and is current with regard to the shares being sold, or shall be pursuant to an exemption from registration
under the Securities Act and applicable state law.

 

The
Options are further subject to the requirement that, if at any time the Board shall determine, in its discretion, that the listing,
registration, or qualification of the shares of common stock underlying the Options upon any securities exchange or under any state
or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection
with the issue or purchase of shares underlying the Options, the Options may not be exercised in whole or in part unless such listing,
registration, qualification, consent or approval shall have been effected. 

 

11.       Sale
of Shares Acquired Upon Exercise of Options. If the Optionee is an officer (as defined by Section 16(b) of the Securities Exchange
Act of 1934 (“Section 16(b)”)) or a director of the Company, any shares of the Company’s common stock acquired
pursuant to the Options cannot be sold by the Optionee until at least six months elapse
from the Grant Date except in case of death or disability or if the grant was exempt from the short-swing profit provisions of
Section 16(b). 

 

12.       Transfer.
No transfer of the Options by the Optionee by will or by the laws of descent and distribution shall be effective to bind the Company
unless the Company shall have been furnished with written notice thereof and a copy of the letters testamentary or such other evidence
as the Board may deem necessary to establish the authority of the estate and the acceptance by the Permitted Transferee(s)
of the terms and conditions of the Options.

 

13.       Duties
of the Company. The Company will at all times during the term of the Options:

 

(a)
       Reserve and keep available for issue such number of shares of its authorized and unissued
common stock as will be sufficient to satisfy the requirements of this Agreement;

 

(b)
       Pay all original issue taxes with respect to the issuance of shares pursuant hereto and
all other fees and expenses necessarily incurred by the Company in connection therewith;

 

(c)
       Use its best efforts to comply with all laws and regulations which, in the opinion of
counsel for the Company, shall be applicable thereto.

 

14.       Parties
Bound by Plan. The Plan and each determination, interpretation or other action made or taken pursuant to the provisions of
the Plan shall be final and shall be binding and conclusive for all purposes on the Company and the Optionee and
the Optionee’s respective successors in interest.

 

15.       Severability.
In the event any parts of this Agreement are found to be void, the remaining provisions of this Agreement shall nevertheless be
binding with the same effect as though the void parts were deleted.

 

16.       Arbitration.
Except to the extent a party is seeking equitable relief, any controversy, dispute or claim arising out of or relating to this
Agreement, or its interpretation, application, implementation, breach or enforcement which the parties are unable to resolve by
mutual agreement, shall be settled by submission by either party of the controversy, claim or dispute to binding arbitration in
Maricopa County, Arizona (unless the parties agree in writing to a different location),
before a single arbitrator in accordance with the rules of the American Arbitration Association then in effect. The decision and
award made by the arbitrator shall be final, binding and conclusive on all parties hereto for all purposes, and judgment may be
entered thereon in any court having jurisdiction thereof.

 

17.       Benefit.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their legal representatives, successors
and assigns.

 

18.       Notices
and Addresses. All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing
and shall be delivered to the addresses in person, by FedEx or similar receipted delivery as follows:

 

The Optionee:                                                  at
the address on the Signature Page

 

The Company:                                               _____________________

___________________________

___________________________

____________________________

 

with
a copy to:                                                  _______________________

____________________________

____________________________

____________________________

____________________________

 

or to
such other address as either of them, by notice to the other may designate from time to time. 

 

19.       Attorney’s
Fees. In the event that there is any controversy or claim arising out of or relating to this Agreement, or to the interpretation,
breach or enforcement thereof, and any action or proceeding is commenced to enforce the provisions of this Agreement, the prevailing
party shall be entitled to a reasonable attorneys’ fees, costs and expenses.

 

20.       Governing
Law. This Agreement and any dispute, disagreement, or issue of construction or interpretation arising hereunder whether relating
to its execution, its validity, the obligations provided herein or performance whether sounding in contract, tort or otherwise
shall be governed or interpreted according to the laws of Nevada without regard to choice of law considerations. 

 

21.       Oral
Evidence. This Agreement constitutes the entire Agreement between the parties and supersedes all prior oral and written agreements
between the parties hereto with respect to the subject matter hereof. Neither this Agreement nor any provision hereof may be changed,
waived, discharged or terminated orally, except by a statement in writing signed by the party or parties against which enforcement
or the change, waiver discharge or termination is sought.

 

22.       Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument. The execution of this Agreement may be by actual or facsimile signature.

 

23.       Section
or Paragraph Headings. Section headings herein have been inserted for reference only and shall not be deemed to limit or otherwise
affect, in any matter, or be deemed to interpret in whole or in part any of the terms or provisions of this Agreement.

 

24.       Stop-Transfer
Orders. 

 

(a)       The
Optionee agrees that, in order to ensure compliance with the restrictions set forth in the Plan and this Agreement, the Company
may issue appropriate “stop transfer” instructions to its duly authorized transfer agent, if any, and that, if the
Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

 

(b)       The
Company shall not be required (i) to transfer on its books any shares of the Company’s common stock that have been sold or
otherwise transferred in violation of any of the provisions of the Plan or the Agreement or (ii) to treat the owner of such shares
of common stock or to accord the right to vote or pay dividends to any purchaser or other Permitted Transferee
to whom such shares of common stock shall have been so transferred.

 

25.       Exclusive
Jurisdiction and Venue. Any action brought by either party against the other concerning the transactions contemplated by or
arising under this Agreement which seeks equitable relief shall be brought only in the state or federal courts of Arizona and venue
shall be in Maricopa County or appropriate federal district and division. The parties to this Agreement hereby irrevocably waive
any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction
or venue or based upon forum non conveniens.

    	 

    	 

    

IN WITNESS
WHEREOF the parties hereto have set their hand and seals the day and year first above written.

 

TIMEFIREVR,
INC.

 

 

 

By:
 ___________________________________ 

_________________,
Chief Executive Officer

 

 

 

OPTIONEE:

 

 

 

___________________________________

_____________________ 

 

Address:

__________________________________

__________________________________

__________________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

NOTICE OF EXERCISE

 

To:
      __________________________

__________________________

__________________________

Attention
_________, _______________

Facsimile:
(____) _____-______

 

Please
be advised that I hereby elect to exercise my option to purchase shares of ___________, pursuant to the Stock Option Agreement
dated __________________. 

 

Number
of Shares to Be Purchased:                              _______________

 

Multiplied
by: Purchase Price Per Share                        $______________

 

Total
Purchase Price                                                    $_______________

 

Please
check the payment method below: 

 

____Enclosed
is a check for the total purchase price above. 

 

____Wire
transfer sent on _____________, 20__. 

 

____
Cashless exercise

 

Please
contact me as soon as possible to discuss the possible payment of withholding taxes and any other documents we may require. 

 

 

Name of Option Holder (Please Print): ________________________________

 

Address of Option Holder

 

________________________________________________________________

 

 

Telephone Number of Option Holder:        ________________________________

 

Social Security Number of Option Holder:  ________________________________

    	 

    	 

    

 

If the
certificate is to be issued to person other than the Option Holder, please provide the following for such person: 

 

 

________________________________

(Name)

 

________________________________

(Address)

 

________________________________

 

________________________________

 

 

________________________________

(Telephone Number)

 

________________________________

(Social Security
Number)

 

 

In connection
with the issuance of the common stock, if the common stock may not be immediately publicly sold, I hereby represent to the
Company that I am acquiring the common stock for my own account for investment and not with a view to, or for resale in connection
with, a distribution of the shares within the meaning of the Securities Act of 1933 (the “Securities Act”). 

 

I am______
am not ______ [please initial one] an accredited investor for at least one of the reasons on the attached Exhibit
A. If the SEC has amended the rule defining the definition of accredited investor, the new provisions shall be applicable. I acknowledge
that as a condition to exercise the Options, the Company may request updated information regarding the Holder’s status as
an accredited investor. My exercise of the Options shall be in compliance with the applicable exemptions under the Securities Act
and applicable state law.

 

 

 

		________________________________Dated:	_________________

Signature of Option Holder

 

 

 

 

 

    	 

    	 

    

 

Exhibit
A To Stock Option Agreement

 

For
Individual Investors Only:

 

1.       A
person who has an individual net worth, or a person who with his or her spouse has a combined net worth, in excess of $1,000,000.
For purposes of calculating net worth under this paragraph (1), (i) the primary residence shall not be included as an asset, (ii)
to the extent that the indebtedness that is secured by the primary residence is in excess of the fair market value of the primary
residence, the excess amount shall be included as a liability, and (iii) if the amount of outstanding indebtedness that is secured
by the primary residence exceeds the amount outstanding 60 days prior to exercising the stock options, other than as a result of
the acquisition of the primary residence, the amount of such excess shall be included as a liability.

 

2a.       A
person who had individual income (exclusive of any income attributable to the person’s spouse) of more than who has $200,000
in each of the two most recently completed years and who reasonably expects to have an individual income in excess of $200,000
this year. 

 

2b.       Alternatively,
a person, who with his or her spouse, has joint income in excess of $300,000 in each applicable year.

 

3.       A
director or executive officer of the Company.

 

Other
Investors:

4.       Any
bank as defined in Section 3(a)(2) of the Securities Act of 1933 (“Securities Act”) whether acting in its individual
or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; insurance
company as defined in Section 2(13) of the Securities Act; investment company registered under the Investment Company Act of 1940
or a business development company as defined in Section 2(a)(48) of that Act; Small Business Investment Company licensed by the
U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established
and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions,
for the benefit of its employees, if such plan has total assets in excess of $5,000,000; employee benefit plan within the meaning
of Title I of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined
in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment
advisor, or if the employee benefit plan has total assets in excess of $5,000,000, or if a self-directed plan, with investment
decisions made solely by persons that are accredited investors.

 

5.       A
private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940.

 

6.       An
organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust
or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000.

 

7.       A
trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose
purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of the Securities Act. 

 

8.       An
entity in which all of the equity owners are accredited investors.EX-10.9

 Exhibit 10.9 

EXECUTION VERSION 

INVESTORS’ RIGHTS AGREEMENT 

THIS INVESTORS’ RIGHTS AGREEMENT (this “Agreement”) is made as of August 7, 2017 by and among KRYSTAL BIOTECH,
INC., a Delaware corporation (the “Company”) the investors listed on Schedule A hereto (each an “Investor” and collectively the “Investors”) and those persons listed on Schedule B hereto (each, a
“Founder”, and collectively, the “Founders”). 
 RECITALS 

A. The Investors and the Company are parties to that certain Series A Preferred Stock Purchase Agreement dated as of the date hereof (the
“Series A Purchase Agreement”) relating to the issue and sale of shares of Series A Preferred Stock of the Company (the “Series A Preferred Stock”). 

B. The obligations of the Company and the Investors under the Series A Purchase Agreement are conditioned, among other things, upon the
execution and delivery of this Agreement by the Investors and the Company. 
 NOW, THEREFORE, in consideration of the mutual premises and
covenants set forth herein, the parties hereto agree as follows: 
 1. Registration Rights. The Company covenants and agrees as
follows: 
 1.1 Definitions. For purposes of this Section 1: 

(a) The term “Act” means the Securities Act of 1933, as amended. 

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

(c) The term “Holder” means any person owning or having the right to acquire Registrable Securities or any assignee thereof in
accordance with Section 1.11 hereof. 
 (d) The term “Initial Public Offering” means the first underwritten public
offering of securities of the Company pursuant to an effective registration statement under the Act (other than a registration statement relating either to the sale of securities to employees of the Company pursuant to a stock option, stock purchase
or similar plan or an SEC Rule 145 transaction). 
 (e) The term “1934 Act” means the Securities Exchange Act of 1934, as amended.

  
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 (f) The term “Preferred Stock” means, collectively, shares of the Company’s the
Series Seed Preferred Stock, Series A Preferred Stock, Series A-1 Preferred Stock, and Series A-2 Preferred Stock. 
 (g) The term
“register,” “registered,” and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Act, and the declaration or ordering of
effectiveness of such registration statement or document. 
 (h) The term “Registrable Securities” means (i) the Common Stock
issuable or issued upon conversion of the Company’s Series Seed Preferred Stock, Series A Preferred Stock, Series A-1 Preferred Stock and Series A-2 Preferred Stock, (ii) with respect to the rights granted to Holders pursuant to
Section 1.3 hereof only, any Common Stock held by the Founders or Common Stock issuable upon the exercise by them of any option, warrant or other right to acquire such Common Stock, and (iii) any Common Stock of the Company 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 (i) above, excluding in all
cases, however, any Registrable Securities sold by a person (x) in a transaction in which his, her or its rights under this Section 1 are not assigned, (y) pursuant to a registration statement under the Act that has been declared
effective and such Registrable Securities have been disposed of pursuant to such effective registration statement, or (z) in a transaction in which such Registrable Securities are sold pursuant to Rule 144 (or any similar provision then in
force) under the Act. 
 (i) The number of shares of “Registrable Securities then outstanding” shall be determined by the number
of shares of Common Stock outstanding that are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities that are, Registrable Securities. 

(j) The term “Series A-1 Preferred Stock” means shares of the Company’s Series A-1 Preferred Stock, par value $0.00001 per
share. 
 (k) The term “Series A-2 Preferred Stock” means shares of the Company’s Series A-2 Preferred Stock, par value
$0.00001 per share. 
 (l) The term “Series Seed Preferred Stock” means shares of the Company’s Series Seed Preferred Stock,
par value $0.00001 per share. 
 (m) The term “SEC” shall mean the Securities and Exchange Commission. 

1.2 Request for Registration. 

(a) Subject to the conditions of this Section 1.2, if the Company shall receive at any time after the date which is six (6) months
after the effective date of the Initial Public Offering, a written request from the Holders of a majority of the Registrable Securities then outstanding (the “Initiating Holders”) that the Company file a registration statement under the
Act covering the registration of Registrable Securities at an aggregate price to the public (net 

  
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of any underwriters’ discounts or commissions) of not less than $5,000,000, then the Company shall, within twenty (20) days of the receipt thereof, give written notice of such request
to all Holders, and subject to the limitations of this Section 1.2, use commercially reasonable efforts to effect, as soon as practicable, the registration under the Act of all Registrable Securities that the Holders request to be registered in
a written request received by the Company within twenty (20) days of the mailing of the Company’s notice pursuant to this Section 1.2(a). 

(b) If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall
so advise the Company as a part of their request made pursuant to this Section 1.2 and the Company shall include such information in the written notice referred to in this Section 1.2(a). In such event the right of any Holder to include
its Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a
majority in interest of the Initiating Holders and such Holder) to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall enter into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwriting by the Company. 
 (c) In addition, the Company shall not be required to effect a
registration pursuant to this Section 1.2: 
 (i) after the Company has effected one (1) registration pursuant to this
Section 1.2, and such registrations have been declared or ordered effective; 
 (ii) during the period starting with the date ninety
(90) days prior to the Company’s good faith estimate of the date of the filing of, and ending on a date one hundred eighty (180) days following the effective date of, a Company-initiated registration subject to Section 1.3,
provided that the Company furnishes to the Initiating Holders a notice of such good faith estimate within thirty (30) days of receipt of the request from the Initiating Holders and the Company is actively employing in good faith all reasonable
efforts to cause such registration statement to become effective; 
 (iii) if the Initiating Holders propose to dispose of Registrable
Securities that may be registered on Form S-3 pursuant to Section 1.4; 
 (iv) if the Company shall furnish to Holders requesting a
registration pursuant to this Section 1.2, a certificate signed by the Company’s Chief Executive Officer or Chairman of the Board stating that in the good faith judgment of the Board of Directors of the Company, it would be materially
detrimental to the Company and its stockholders for such registration to be effected at such time, in which event the Company shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of the request
of the Initiating Holders , provided that such right to delay a request shall be exercised by the Company not more than once in any twelve (12)-month period; or 

(v) in any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such
registration, unless the Company is already subject to service in such jurisdiction and except as may be required under the Act. 

  
 3 

 1.3 Company Registration. 

(a) If (but without any obligation to do so) the Company proposes to register (including for this purpose a registration effected by the
Company for stockholders other than the Holders) any of its stock or other securities under the Act in connection with the public offering of such securities (other than a registration relating solely to the sale of securities to participants in a
Company stock plan, a registration relating to a corporate reorganization or other transaction under Rule 145 of the Act, a registration on any form that does not include substantially the same information as would be required to be included in a
registration statement covering the sale of the Registrable Securities, or a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered), the Company shall,
at such time, promptly give each Holder written notice of such registration. Upon the written request of each Holder given within twenty (20) days after mailing of such notice by the Company, the Company shall, subject to the provisions of
Section 1.5(e), use commercially reasonable efforts to cause to be registered under the Act all of the Registrable Securities that each such Holder has requested to be registered. 

(b) Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by it under
this Section 1.3 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration. The expenses of such withdrawn registration shall be borne by the Company in accordance with
Section 1.7 hereof. 
 1.4 Form S-3 Registration. In case the Company shall receive from any Holder or Holders of the Registrable
Securities then outstanding a written request or requests that the Company effect a registration on Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, the
Company shall: 
 (a) promptly give written notice of the proposed registration, and any related qualification or compliance, to all other
Holders; and 
 (b) use commercially reasonable efforts to effect, as soon as practicable, such registration and all such qualifications and
compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable
Securities of any other Holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice from the Company, provided, however, that the Company shall not be obligated to
effect any such registration, qualification or compliance, pursuant to this Section 1.4: 
 (i) if Form S-3 is not available for such
offering by the Holders; 

  
 4 

 (ii) if the Holders, together with the holders of any other securities of the Company entitled
to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public (net of any underwriters’ discounts or commissions) of less than $2,000,000; 

(iii) if the Company shall furnish to the Holders a certificate signed by the Chief Executive Officer or Chairman of the Board of the Company
stating that in the good faith judgment of the Board of Directors of the Company, it would be materially detrimental to the Company and its stockholders for such Form S-3 registration to be effected at such time, in which event the Company shall
have the right to defer the filing of the Form S-3 registration statement for a period of not more than ninety (90) days after receipt of the request of the Holder or Holders under this Section 1.4, provided, however, that the Company
shall not utilize this right more than once in any twelve (12) month period; 
 (iv) if the Company has, within the twelve
(12) month period preceding the date of such request, already effected two registrations on Form S-3 for the Holders pursuant to this Section 1.4; or 

(v) in any particular jurisdiction in which the Company would be required to qualify to do business, where not otherwise required, or to
execute a general consent to service of process in effecting such registration, qualification or compliance. 
 (c) Subject to the
foregoing, the Company shall use commercially reasonable efforts to file a registration statement covering the Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the request or requests
of the Holders. Registrations effected pursuant to this Section 1.4 shall not be counted as requests for registration effected pursuant to Section 1.2 or Section 1.3. 

1.5 Obligations of the Company. Whenever required under this Section 1 to effect the registration of any Registrable Securities,
the Company shall, as expeditiously as reasonably possible: 
 (a) prepare and file with the SEC a registration statement with respect to
such Registrable Securities and use commercially reasonable efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such
registration statement effective for a period of up to 120 days or, if earlier, until the distribution contemplated in the Registration Statement has been completed; provided, however, that (i) such 120- day period shall be extended for a
period of time equal to the period the Holder refrains from selling any securities included in such registration at the request of an underwriter of Common Stock (or other securities) of the Company; and (ii) in the case of any registration of
Registrable Securities on Form S-3 which are intended to be offered on a continuous or delayed basis, such 120-day period shall be extended, if necessary, to keep the registration statement effective until all such Registrable Securities are sold,
provided that Rule 415, or any successor rule under the Act, permits an offering on a continuous or delayed basis, and provided further that applicable rules under the Act governing the obligation to file a post-effective amendment permit, in lieu
of filing a post-effective amendment which (I) includes any prospectus required by Section 10(a)(3) of 

  
 5 

 
the Act or (II) reflects facts or events representing a material or fundamental change in the information set forth in the registration statement, the incorporation by reference of information
required to be included in (I) and (II) above to be contained in periodic reports filed pursuant to Section 13 or 15(d) of the 1934 Act in the registration statement; 

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

(c) furnish to each Holder (i) a draft copy of the registration statement, and (ii) such numbers of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the Act, and such other documents as it may reasonably request in order to facilitate the disposition of Registrable Securities owned by it; 

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

(e) in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering. Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement. In connection with any offering involving an underwriting of
shares of the Company’s capital stock, the Company shall not be required to include any of the Holders’ securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the
underwriters selected by the Company and enter into an underwriting agreement in customary form with an underwriter or underwriters selected by the Company. If the total amount of securities, including Registrable Securities, requested by
stockholders to be included in such offering exceeds the amount of securities sold other than by the Company that the underwriters determine in their sole discretion is compatible with the success of the offering, then subject to Section 1.2
above, the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, that the underwriters determine in their sole discretion will not jeopardize the success of the offering (the
securities so included to be apportioned pro rata among the selling stockholders according to the total amount of securities entitled to be included therein owned by each selling stockholder or in such other proportions as shall mutually be agreed
to by such selling stockholders), but in no event shall the amount of securities of the selling Holders included in the offering be reduced below 20% of the total amount of securities included in such offering, unless such offering is the Initial
Public Offering of the Company’s securities, in which case the selling stockholders may be excluded if the underwriters make the determination described above. For purposes of the preceding parenthetical concerning apportionment, for any
selling stockholder that is a Holder of Registrable Securities and that is a partnership or corporation, the partners, retired partners and stockholders of such Holder, or the 

  
 6 

 
estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling stockholder,”
and any pro rata reduction with respect to such “selling stockholder” shall be based upon the aggregate amount of Registrable Securities owned by all entities and individuals included in such “selling stockholder,” as defined in
this sentence; 
 (f) notify each Holder of Registrable Securities covered by such registration statement, at any time when a prospectus
relating thereto is required to be delivered under the Act, of (i) the issuance of any stop order by the SEC in respect of such registration statement, or (ii) the happening of any event as a result of which the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances
then existing; 
 (g) cause all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which
similar securities issued by the Company are then listed; 
 (h) provide a transfer agent and registrar for all Registrable Securities
registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration; and 

(i) Use commercially reasonable efforts to furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to
this Section 1, on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 1, if such securities are being sold through underwriters, or, if such
securities are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, an opinion, dated as of such date, of the counsel representing the Company for the purposes of such
registration, in form and substance as is customarily given to underwriters in an underwritten public offering and reasonably satisfactory to a majority in interest of the Holders requesting registration, addressed to the underwriters and to the
Holders requesting registration of Registrable Securities. 
 1.6 Information from Holder. 

(a) It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 1 with respect to the
Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be reasonably
required to effect the registration of such Holder’s Registrable Securities. 
 (b) The Company shall have no obligation with respect
to any registration requested pursuant to Section 1.2 if, due to the operation of Section 1.6(a), the number of shares of the Registrable Securities to be included in the registration does not equal or exceed the number of shares required
to originally trigger the Company’s obligation to initiate such registration as specified in Section 1.2(a). 

  
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 1.7 Expenses of Registration. 

(a) All expenses other than underwriting discounts and commissions incurred in connection with registrations, filings or qualifications
pursuant to Sections 1.2 and 1.3 and 1.4, including, without limitation, all registration, filing and qualification fees (including “blue sky” fees), printers’ and accounting fees, fees and disbursements of counsel for the
Company shall be borne by the Company (including fees and disbursements of counsel for the Company in its capacity as counsel to the selling Holders hereunder; if Company counsel does not make itself available for this purpose, the Company will pay
the reasonable fees and disbursements of one counsel for the selling Holders not to exceed $25,000). Notwithstanding the foregoing, the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to
Section 1.2 or Section 1.4 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all participating Holders shall bear such expenses
pro rata based upon the number of Registrable Securities that were to be registered in the withdrawn registration), unless, in the case of a registration requested under Section 1.2, the Holders of a majority of the Registrable Securities agree
to forfeit their right to one demand registration pursuant to Section 1.2. 
 1.8 Delay of Registration. No Holder shall have any
right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 1. 

1.9 Indemnification. In the event any Registrable Securities are included in a registration statement under this Section 1: 

(a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder, any underwriter (as defined in the Act) for such
Holder and each person, if any, who controls such Holder or underwriter, within the meaning of the Act or the 1934 Act, against any losses, claims, damages or liabilities (joint or several) to which they may become subject under the Act, the 1934
Act or any state securities laws, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”):
(i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the
omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Act, the 1934 Act, any
state securities laws or any rule or regulation promulgated under the Act, the 1934 Act or any state securities laws; and the Company will reimburse each such Holder, underwriter or controlling person for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 1.9(a) shall not apply to amounts paid in settlement of
any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company, nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises
out of or is based upon a Violation that occurs in reliance upon and in conformity with information furnished expressly for 

  
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use in connection with such registration by any such Holder, underwriter or controlling person; provided further, however, that the foregoing indemnity agreement with respect to any preliminary
prospectus shall not inure to the benefit of any Holder or underwriter, or any person controlling such Holder or underwriter, from whom the person asserting any such losses, claims, damages or liabilities purchased shares in the offering, if a copy
of the prospectus (as then amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was not sent or given by or on behalf of such Holder or underwriter to such person, if required by law so to have been
delivered, at or prior to the written confirmation of the sale of the shares to such person, and if the prospectus (as so amended or supplemented) would have cured the defect giving rise to such loss, claim, damage or liability. 

(b) To the extent permitted by law, each selling Holder will indemnify and hold harmless the Company, each of its directors, each of its
officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Act, any underwriter, any other stockholder selling securities in such registration statement and any controlling person of
any such underwriter or other stockholder, against any losses, claims, damages or liabilities (joint or several) to which any of the foregoing persons may become subject, under the Act, the 1934 Act or any state securities laws, insofar as such
losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with information
furnished by such Holder expressly for use in connection with such registration; and each such Holder will reimburse any person intended to be indemnified pursuant to this Section 1.9(b) for any legal or other expenses reasonably incurred by
such person in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 1.9(b) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, provided that in no event shall any indemnity under this Section 1.9(b) exceed the net proceeds from the offering received by such
Holder. 
 (c) Promptly after receipt by an indemnified party under this Section 1.9 of actual knowledge of the commencement of any
action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.9, deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and
expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any
other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnified party under this Section 1.9 to the extent of such prejudice, but the omission to so deliver written 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 1.9. 

  
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 (d) If the indemnification provided for in this Section 1.9 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the
amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of and the relative benefits received by the indemnifying party on the
one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations, provided that no person guilty
of fraud shall be entitled to contribution. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or
omission. The relative benefits received by the indemnifying party and the indemnified party shall be determined by reference to the net proceeds and underwriting discounts and commissions from the offering received by each such party. In no event
shall any contribution under this Section 1.9(d) exceed the net proceeds from the offering received by such Holder, less any amounts paid under Section 1.9(b). 

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

(f) The obligations of the Company and Holders under this Section 1.9 shall survive the completion of any offering of Registrable
Securities in a registration statement under this Section 1, and otherwise. 
 1.10 Reports Under Securities Exchange Act of
1934. With a view to making available to the Holders the benefits of Rule 144 promulgated under the Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without
registration or pursuant to a registration on Form S-3, the Company agrees to: 
 (a) make and keep public information available, as those
terms are understood and defined in SEC Rule 144, at all times after ninety (90) days after the effective date of the Initial Public Offering; 

(b) file with the SEC in a timely manner all reports and other documents required of the Company under the Act and the 1934 Act; and 

(c) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the
Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the 

  
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effective date of the Initial Public Offering), the Act and the 1934 Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose
securities may be resold pursuant to Form S-3 (at any time after 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 SEC that permits the selling of any such securities without registration or pursuant to such form. 

1.11 Assignment of Registration Rights. The rights to cause the Company to register Registrable Securities pursuant to this
Section 1 may be assigned (but only with all related obligations) by a Holder to (i) any of its partners, retired partners, members or retired members, (ii) a Holder’s immediate family member (spouse or child) or trust for the
benefit of an individual Holder, provided: (a) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such
registration rights are being assigned; (b) such transferee or assignee agrees in writing (a copy of which writing is provided to the Company at the time of transfer) to be bound by and subject to the terms and conditions of this Agreement,
including without limitation the provisions of Section 1.13 below; and (c) such assignment shall be effective only if immediately following such transfer the further disposition of such securities by the transferee or assignee is
restricted under the Act. For the purposes of determining the number of shares of Registrable Securities held by a transferee or assignee, the holdings of transferees and assignees of a partnership who are partners or retired partners of such
partnership (including spouses and ancestors, lineal descendants and siblings of such partners or spouses who acquire Registrable Securities by gift, will or intestate succession) shall be aggregated together and with the partnership; provided that
all assignees and transferees who would not qualify individually for assignment of registration rights shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices or taking any action under this Section 1.

 1.12 “Market Stand-Off” Agreement. Each Holder hereby agrees that it will not, directly or indirectly, without the prior
written consent of the Company and the managing underwriter, during the period commencing on the date of the final prospectus relating to the Initial Public Offering and ending on the date specified by the Company and the managing underwriter (such
period not to exceed one hundred eighty (180) days) (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or
otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock (whether such shares or any such securities are then owned by the Holder or are
thereafter acquired), or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction described in clause
(i) or (ii) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise; provided, however, that such period may be extended to such longer period as the Company or the managing underwriter may request
in order to facilitate compliance with, to the extent applicable, Financial Industry Regulatory Authority, Inc. (“FINRA”) Rule 2711 or NYSE Member Rule 472 or any successor or similar rule or regulation. The foregoing provisions of this
Section 1.12 shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement. The underwriters in connection with any public offering by the Company are intended third party

  
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beneficiaries of this Section 1.12 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto; further, each Holder hereby agrees to
enter into written agreement with such underwriters containing terms substantially equivalent to the terms of this Section 1.12, and each Holder hereby agrees that such underwriters shall be entitled to require each such Holder to enter into
such a written agreement. Notwithstanding the foregoing, nothing in this Section 1.12 shall prevent a Holder from making a transfer of any Common Stock that was listed on a national stock exchange, actively traded over-the-counter or traded on
the NASDAQ Global Market at the time it was acquired by the Holder or was acquired by such Holder pursuant to Rule 144A of the Act, including any shares acquired in any public offering by the Company. 

In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Registrable Securities of
each Holder (and the shares or securities of every other person subject to the foregoing restriction) until the end of such period. 
 1.13
Termination of Registration Rights. No Holder shall be entitled to exercise any right provided for in this Section 1 after five (5) years following the consummation of the Initial Public Offering or, as to any Holder, such earlier
time at which all Registrable Securities held by such Holder (and any affiliate of the Holder with whom such Holder must aggregate its sales under Rule 144) can be sold in any ninety (90) day period without registration in compliance with
Rule 144 of the Act or, as to any Holder, such earlier time at which such Holder holds Registrable Securities constituting less than one percent (1%) of the outstanding voting stock of the Company. 

2. Additional Rights. 
 2.1
Next Equity Financing: Equivalent Rights. In the event that the Company, in connection with its next bona fide equity financing in which the Company issues and sells shares of a series of Preferred Stock other than the Series A, Series A-2
and Series A-2 Preferred Stock (the “Next Equity Financing”), provides investors in the Next Equity Financing with contractual rights (such as registration rights), the Company shall provide substantially equivalent rights to each of the
Investors with respect to the Shares (with appropriate adjustment for economic terms or other contractual rights), subject to such Investor’s execution of any agreements, including, if applicable, investors’ rights, co-sale, voting and
other agreements, executed by the investors purchasing securities in the Next Equity Financing (such documents referred to herein as the “Next Financing Documents”). Notwithstanding anything herein to the contrary, upon the execution and
delivery of the Next Financing Documents by Investors holding a majority of the then outstanding Shares held by all Investors, this Agreement (excluding any then-existing rights or obligations) shall be amended and restated by and into such Next
Financing Documents. 
 2.2 Rights to Future Stock Issuances. 

(a) Right of First Offer. Subject to the terms and conditions of this Subsection 2.2 and applicable securities laws, if the Company
proposes to offer or sell any New Securities (as defined below), the Company shall first offer such New Securities to each Major Investor (as defined below). A Major Investor shall be entitled to apportion the right of first

  
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offer hereby granted to it in such proportions as it deems appropriate, among (i) itself and (ii) its Affiliates. The term “Major Investor” means any Investor that,
individually or together with such Investor’s Affiliates, holds at least 100,000 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification effected after the
date hereof). The term “New Securities” means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type
whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities. 
 (b) The Company shall
give notice (the “Offer Notice”) to each Major Investor, stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon
which it proposes to offer such New Securities. 
 (c) By notification to the Company within twenty (20) days after the Offer Notice is
given, each Major Investor may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which equals the proportion that the Common Stock then held by such Major
Investor (including all shares of Common Stock then issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and any other Derivative Securities (as defined below) then held by such Major Investor)
bears to the total Common Stock of the Company then outstanding (assuming full conversion and/or exercise, as applicable, of all Preferred Stock and other Derivative Securities). The closing of any sale pursuant to this Subsection 2.2 shall occur
within the later of ninety (90) days after the date that the Offer Notice is given and the date of initial sale of New Securities pursuant to Subsection 2.2(d). The term “Derivative Securities” means any securities or rights
convertible into, or exercisable or exchangeable for (in each case, directly or indirectly), Common Stock, including options and warrants. 

(d) If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Subsection 2.2(b), the
Company may, during the ninety (90 day period following the expiration of the periods provided in Subsection 2.2(b), offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon
terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within sixty
(60) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Major Investors in accordance with this Subsection 2.2. 

(e) The right of first offer in this Subsection 2.2 shall not be applicable to (i) Exempted Securities (as defined in the Company’s
Certificate of Incorporation); and (ii) shares of Common Stock issued in the Initial Public Offering. 
 (f) Termination. The
covenants set forth in Subsection 2.2 shall terminate and be of no further force or effect (i) immediately before the consummation of the Initial Public Offering, (ii) when the Company first becomes subject to the periodic reporting
requirements of Section 12(g) or 15(d) of the Exchange Act, or (iii) upon a Deemed Liquidation Event, as such term is defined in the Company’s Certificate of Incorporation, whichever event occurs first. 

  
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 2.3 Information Rights. 

(a) Delivery of Financial Statements. The Company shall deliver to each Major Investor: 

(i) as soon as practicable, but in any event within one hundred twenty (120) days after the end of each fiscal year of the Company
(i) a balance sheet as of the end of such year, (ii) statements of income and of cash flows for such year, and (iii) a statement of stockholders’ equity as of the end of such year; 

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

(iii) with respect to the financial statements called for in Subsection 2.3(a) and Subsection 2.3(b), an instrument executed by the chief
financial officer and chief executive officer of the Company certifying that such financial statements were prepared in accordance with GAAP consistently applied with prior practice for earlier periods (except as otherwise set forth in Subsection
2.3(b)) and fairly present the financial condition of the Company and its results of operation for the periods specified therein; and 
 If,
for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect of such period the financial statements delivered pursuant to the foregoing sections shall be the consolidated and
consolidating financial statements of the Company and all such consolidated subsidiaries. 
 Notwithstanding anything else in this
Subsection 2.3 to the contrary, the Company may cease providing the information set forth in this Subsection 2.3 during the period starting with the date sixty (60) days before the Company’s good-faith estimate of the date of
filing of a registration statement if it reasonably concludes it must do so to comply with the SEC rules applicable to such registration statement and related offering; provided that the Company’s covenants under this Subsection
2.3 shall be reinstated at such time as the Company is no longer actively employing its commercially reasonable efforts to cause such registration statement to become effective. 

(b) Termination of Information Rights. The covenants set forth in Subsection 2.3 shall terminate and be of no further force or effect
(i) immediately before the consummation of the Initial Public Offering, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act, or (iii) upon a Deemed
Liquidation Event, as such term is defined in the Company’s Certificate of Incorporation, whichever event occurs first. 
  

  
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 3. Miscellaneous. 

3.1 Limitations on Disposition. Each Investor agrees not to make any disposition of any Registrable Securities unless and until the
transferee has agreed in writing for the benefit of the Company to be bound by this Agreement, and: 
 (a) There is then in effect a
registration statement under the Act covering such proposed disposition and such disposition is made in accordance with such registration statement; or 

(b) (i) Such Investor shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, and (ii) if reasonably requested by the Company, such Investor shall have furnished the Company with an opinion of counsel reasonably satisfactory to the Company that such
disposition will not require registration of such shares under the Act. It is agreed that the Company will not require opinions of counsel for transactions made pursuant to Rule 144 except in unusual circumstances. 

3.2 Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit
of and be binding upon the respective successors and assigns of the parties (including transferees of any shares of Registrable Securities). Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 

3.3 Governing Law; Venue. This Agreement is to be construed in accordance with and governed by the internal laws of the State of
Delaware without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Delaware to the rights and duties of the parties. All disputes and controversies
arising out of or in connection with this Agreement shall be resolved exclusively by the state and federal courts located in the State of Delaware and each party hereto agrees to submit to the jurisdiction of said courts and agrees that venue shall
lie exclusively with such courts. 
 3.4 Waiver of Right to Jury Trial. EACH OF INVESTORS, FOUNDERS AND THE COMPANY, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 

3.5 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. 
 3.6 Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 

  
 15 

 3.7 Delays or Omissions. Except as expressly provided herein, no delay or omission to
exercise any right, power or remedy accruing to any party to this Agreement upon any breach or default of any other party under this Agreement shall impair any such right, power or remedy of such non-defaulting party, nor shall it be construed to be
a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement,
must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party to this Agreement, shall be cumulative and not alternative.

 3.8 Telecopy, Execution and Delivery. A facsimile, telecopy or other reproduction of this Agreement, including a .pdf copy, may be
executed by one or more parties and delivered by such party by facsimile or any similar electronic transmission device pursuant to which the signature of or on behalf of such party can be seen. Such execution and delivery shall be considered valid,
binding and effective for all purposes. At the request of any party hereto, all parties hereto agree to execute and deliver an original of this Agreement as well as any facsimile, telecopy or other reproduction hereof. 

3.9 Further Assurances. Each party hereto agrees to execute and deliver, by the proper exercise of its corporate, limited liability
company, partnership or other powers, all such other and additional instruments and documents and do all such other acts and things as may be necessary to more fully effectuate this Agreement. 

3.10 Notices. Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this
Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand delivered to the other party; (b) when sent by electronic mail to the electronic mail address set forth below if sent between 8:00 a.m.
and 5:00 p.m. recipient’s local time on a business day, or on the next business day if sent other than between 8:00 a.m. and 5:00 p.m. recipient’s local time on a business day; (c) three business days after deposit in the U.S. mail
with first class or certified mail receipt requested postage prepaid and addressed to the other party at the address set forth below; or (d) the next business day after deposit with a national overnight delivery service, postage prepaid,
addressed to the parties as set forth below with next business day delivery guaranteed, provided that the sending party receives a confirmation of delivery from the delivery service provider. A party may change or supplement the addresses given
above, or designate additional addresses, for purposes of this Section 3.10 by giving the other party written notice of the new address in the manner set forth above. 

3.11 Expenses. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party
shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 

  
 16 

 3.12 Amendments and Waivers. Any term of this Agreement may be amended and the observance
of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the holders of more than fifty percent (50%) of the
Registrable Securities then outstanding. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any Registrable Securities, each future holder of all such Registrable Securities and the Company. Each
Holder acknowledges that by operation of this paragraph, the holders of more than fifty percent (50%) or more of the Registrable Securities will have the right and power to diminish or eliminate all rights of such Holder under this Agreement.

 3.13 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision
shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. 

3.14 Aggregation of Stock. All shares of Registrable Securities held or acquired by entities advised by the same investment adviser and
affiliated entities or persons under common management or control, including for this purpose Winged Tiger Limited and Puccini Investments Holdings Limited shall be aggregated together for the purpose of determining the availability of any rights
under this Agreement. 
 3.15 Entire Agreement. This Agreement and the documents referred to herein constitute the entire agreement
among the parties with respect to the subject matter hereof and no party shall be liable or bound to any other party in any manner by any warranties, representations or covenants except as specifically set forth herein or therein. 

*         *         * 

  
 17 

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

			
	COMPANY:
	
	KRYSTAL BIOTECH, INC.
		
	By:	 	 /s/ Krish S. Krishnan

		 	Krish S. Krishnan, Chief Executive Officer
	
	Electronic Mail:

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and
year first written above. 
 INVESTOR: 
  

			
	SUN BIOPHARMA (Netherlands) B.V.
		
	By:	 	 /s/ Helen de Kloet

	Name:	 	Helen de Kloet
	Title:	 	Business Head
	
	 Address for Notices:
  

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

			
	FOUNDER:
	
	Krish S. Krishnan

 
			
		
	:	 	 /s/ Krish S. Krishnan

			
	
	FOUNDER:
	
	Suma Krishnan

 
			
		
	:	 	 /s/ Suma Krishnan

 SCHEDULE A 

SCHEDULE OF INVESTORS 
 Sun
Biopharma (Netherlands) B.V. 
 Alta Bioequities, L.P. 

Anna and Andrew Yaeger 
 Frank J.
Fitzpatrick and Diana A. Fitzpatrick 
 Anya Joseph Trust 

Kiva Joseph Trust 
 Niall Joseph
Trust 
 SPV Investments, LLC 

Rajesh Patil 
 Krishnan Family Trust
dated May 29, 2007 
 Donna Manning 

Raghu Raghuram 
 Gustav Spangberg
Irrevocable 2016 Trust 
 Eric Spangberg Irrevocable 2016 Trust 

Hélène Nathhorst Spångberg 

Dino Rossi 
  

 SCHEDULE B 

SCHEDULE OF FOUNDERS 
 Krish
S. Krishnan 
 Suma Krishnan

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