Document:

PROVENTION
BIO, INC.

 

REGISTRATION
AND INVESTOR RIGHTS AGREEMENT 

 

This
REGISTRATION AND INVESTOR RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of April 25, 2017,
by and among PROVENTION BIO, INC., a Delaware corporation (“Company”), the persons listed on Schedule
A hereto (the “Investors”) and MDB Capital Group LLC (the “Placement Agent”) for itself
and for its affiliates, referred to individually as the “Holder” and collectively as the “Holders”.

 

RECITALS

 

WHEREAS,
in connection with the Securities Purchase Agreement by and among the Company and the Investors, dated as of April 25, 2017 (the
“Securities Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the
Securities Purchase Agreement, to issue and sell to the Investors up to an aggregate of [●] shares of Series A Preferred
Stock (“Shares”), $0.0001 par value per share, of the Company (the “Preferred Stock”) and
to issue to the Placement Agent and certain of its affiliates who are also Holders, warrants (the “Placement Agent Warrants”)
to acquire up to [●] Shares.

 

WHEREAS,
To induce (i) the Holders to consummate the transactions contemplated by the Securities Purchase Agreement, and (ii) the Placement
Agent to act as placement agent in connection with the Securities Purchase Agreement, the Company has agreed to provide certain
registration rights under the Securities Act and applicable state securities laws to the Holders and the Placement Agent, and
their respective permitted assignees or successors in interest (subject to the terms and conditions herein); such rights to provide
for the registration for resale of shares of common stock, $0.0001 par value per share, of the Company (the “Common Stock”)
issuable upon conversion of the Shares by means of a Registration Statement under the Securities Act, pursuant to the terms of
this Agreement.

 

WHEREAS,
Unless otherwise provided in this Agreement, capitalized terms used herein shall have the respective meanings set forth in the
Securities Purchase Agreement or in Section 13 hereof.

 

NOW,
THEREFORE, in consideration of the above premises and the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and the Holders hereby agree as follows:

 

1.
Registration.

 

1.1
Piggyback Registrations Rights. If, at any time (i) after the Company shall become subject to the periodic reporting obligations
(a “Reporting Company”) under the Securities and Exchange Act of 1934, as amended (the “1934 Act”),
and (ii) the Restricted Period (as defined below) and any other restricted period under any other separate lock-up agreement executed
by any Holder in connection with the Company’s Initial Public offering has expired (the “Initial Rights Date”),
there is not an effective Registration Statement covering the Registrable Securities, and the Company shall determine to prepare
and file with the Commission a Registration Statement relating to an offering for its own account or the account of others under
the Securities Act of any of its equity securities (other than on Form S-4 or Form S-8, each as promulgated under the Securities
Act, or their then equivalent relating to equity securities to be issued solely in connection with any acquisition of any entity
or business or equity securities issuable in connection with stock option or other employee benefit plans), then the Company shall
promptly send to the Holders a written notice of such determination. Upon the request of each Holder given within twenty (20)
days after such notice is given by the Company, the Company shall include in such Registration Statement all Registrable Securities
requested by any Holder hereunder; provided, that (i) if, at any time after giving written notice of its intention to register
any securities and prior to the effective date of the Registration Statement filed in connection with such registration, the Company
determines for any reason not to proceed with such registration, the Company will be relieved of its obligation to register any
Registrable Securities in connection with such registration, (ii) in case of a determination by the Company to delay registration
of its securities, the Company will be permitted to delay the registration of Registrable Securities for the same period as the
delay in registering such other securities, (iii) each Holder is subject to confidentiality obligations with respect to any information
gained in this process or any other material non-public information he, she or it obtains, (iv) each Holder or assignee or successor
in interest is subject to all applicable laws relating to insider trading; and (v) if all of the Registrable Securities of the
Holders cannot be so included due to Commission Comments or Underwriter Cutbacks, then the Company may reduce, in accordance with
the provisions of Subsection 1.3 hereof, the number of securities covered by such Registration Statement to the maximum
number which would enable the Company to conduct such offering in accordance with the provisions of Rule 415, or as permitted
by the underwriters, as the case may be.

 

    	 	1	 

     

    

 

1.2
Initial Registration Statement. At the election of each Holder, the Company shall be required to include up to all Registrable
Securities held by a Holder for resale and offer on a continuous basis pursuant to Rule 415 in the first Registration Statement
filed after the date that it becomes a Reporting Company (the “Initial Registration Statement”); provided,
however, that if all of the Registrable Securities of the Holders cannot be so included due to Commission Comments or Underwriter
Cutbacks, then the Company may reduce, in accordance with the provisions of Subsection 1.3 hereof, the number of securities
covered by the Initial Registration Statement to the maximum number which would enable the Company to conduct such offering in
accordance with the provisions of Rule 415.

 

1.3
Cutback Provisions. In the event all of the Registrable Securities cannot be or are not included in a Registration Statement
due to Commission Comments or Underwriter Cutbacks, the Company and the Holders agree that securities shall be removed from such
Registration Statement in the following order until no further removal is required by Commission Comments or Underwriter Cutbacks:

 

(i)
First, any securities held by any employee, consultant or affiliate of the Company shall be removed, pro rata based on the number
of securities being registered for such employees, consultants or affiliates held by all of the employees of the Company and any
of their affiliates and successors in interest, whether pursuant to agreement or otherwise and any other person with any registration
rights outstanding on the date hereof;

 

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(ii)
Second, the securities held by the Placement Agent and its members and affiliates, if any, obtained solely by reason of providing
services to the Company, which are being registered pursuant to any registration rights agreement to which the Placement Agent
and the Company are party; and

 

(iii)
Third, the Registrable Securities held by the Holders who have acquired their Registrable Securities for a cash purchase price
in an offering of those securities, that are requested to be included in the Registration Statement shall be removed, pro rata
based on the number of Registrable Shares held by each Holder in comparison to the number of Registrable Securities held by all
Holders who have requested to include any Registrable Securities in the Registration Statement; provided, that, in no event shall
the number of Registrable Securities included in the offering be reduced below thirty percent (30%) of the total number of securities
included in such Registration Statement, unless such reduction is a result of a limitation on the maximum number of Registerable
Securities permitted to be registered pursuant to Commission Comments.

 

1.4
Mandatory Registrations. In the event that less than all of the Registrable Securities of the Holders that are requested
to be registered are included in a Registration Statement due to Commission Comments or Underwriter Cutbacks, the Company shall
prepare and file an additional Registration Statement (the “Follow-up Registration Statement”) with the Commission
within sixty (60) days following the effectiveness of the previously filed Registration Statement; provided, however, that
the time period for filing the Follow-up Registration shall be extended to the extent that the Commission publishes written Commission
Guidance or the Company receives written Commission Guidance which provides for a longer period before a Follow-up Registration
Statement may be filed. The Follow-up Registration Statement shall cover the resale of all of the Registrable Securities that
were excluded from any previously filed Registration Statement. In the event that all of the requested Registrable Securities
have not been registered in a Registration Statement after the Follow-up Registration Statement has been declared effective, the
Company shall use commercially reasonable efforts thereafter to register any remaining unregistered Registrable Securities, subject
to the provisions of Subsection 1.5 hereof.

 

1.5
Filing; Content. The Company will use its commercially reasonable efforts to cause each Registration Statement pursuant
to which any Registrable Securities are included, including the Initial or Follow-up Registration Statement, to contain the Plan
of Distribution substantially similar to that attached hereto as Schedule B, provided that, if an underwriter is engaged
in the registration of such Registrable Securities, such underwriter shall determine the content of the Plan of Distribution contained
in the Initial or Follow-Up Registration Statement. The Company shall use its commercially reasonable efforts to cause any Registration
Statement filed under this Section 1, including the Initial and Follow-up Registration Statement, to be declared effective
under the Securities Act as promptly as practicable after the filing thereof and shall keep such Registration Statement continuously
effective under the Securities Act until the earlier of (i) one year after its Effective Date (provided, however, the one year
period shall be extended for any Grace Period), (ii) such time as all of the Registrable Securities covered by such Registration
Statement have been publicly sold by the Holders, or (iii) such time as all of the Registrable Securities covered by such Registration
Statement may be sold by the Holders pursuant to Rule 144 without regard to both the volume limitations for sales as provided
in Rule 144 and the limitations for such sales provided in Rule 144(i), if applicable, as determined by the counsel to the Company
pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer agent and the affected
Holder (“Effectiveness Period”). By 5:00 p.m. (New York City time) on the business day immediately following
the Effective Date of a Registration Statement, 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 (whether or not
such filing is technically required under such Rule).

 

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1.6
Termination of Piggyback Registration Rights. The registration rights afforded to a Holder under this Section 1
shall terminate on the earliest date when all Registrable Securities of such Holder either: (i) have been publicly sold by such
Holder pursuant to a Registration Statement, (ii) have been covered by an effective Registration Statement which has been effective
for an aggregate period of sixteen (16) months (whether or not consecutive), provided, however, the time period shall be calculated
so as to exclude any Grace Period, or (iii) may be sold by such Holder pursuant to Rule 144 without regard to both the volume
limitations for sales as provided in Rule 144 and the limitations for such sales provided in Rule 144(i), if applicable, as determined
by counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s
transfer agent.

 

2.
Demand Registration Rights.

 

2.1
Demand Right. The Holders of at least a majority of the Registrable Securities then outstanding have the right to make
up to two (2) separate demands for the Company to file an S-1 Registration Statement having an anticipated aggregate offering
price, net of Selling Expenses (as defined below), of at least $10 million under the terms of this Agreement. In addition to the
above demand rights, at any time the Company is eligible to use a Form S-3 Registration Statement, the Holders of at least a majority
of the Registrable Securities then outstanding will have also the right to make up to an additional two (2) demands within any
twelve (12) month period for the Company to file an S-3 Registration Statement having an anticipated aggregate offering price,
net of Selling Expenses, of at least $10 million under the terms of this Agreement. Commencing on the Initial Rights Date, the
aforementioned groups of Holders of at least a majority of the Registrable Securities then outstanding (a “Requesting
Group”) shall have the right, by written notice to the Company, signed by such Holders (the “Demand Notice”),
to request the Company to register for resale all the Registrable Securities included by the Requesting Group in the Demand Notice
(the “Demand Shares”) under and in accordance with the provisions of the Securities Act by filing with the
Commission a Registration Statement covering the resale of the Demand Shares (the “Demand Registration Statement”).
A copy of the Demand Notice also shall be provided by the Company to each of the other Holders who will have fifteen (15) days
to notify the Company in writing to include their Registrable Securities as part of the Demand Shares, the failure of which, however,
shall not in any way affect the rights of the Requesting Group pursuant to this Subsection 2.1. The Company will use its
commercially reasonable efforts to file the Demand Registration Statement within forty-five (45) days of the receipt of the Demand
Notice, provided if the Demand Notice is given within the forty-five (45) days after the end of a fiscal year of the Company,
then the Company will use its reasonably commercial efforts to file the Demand Registration Statement within ninety (90) days
following such fiscal year end. The Company shall use its commercially reasonable efforts to cause the Demand Registration Statement
to be declared effective under the Securities Act as promptly as practicable after the filing thereof and to keep the Demand Registration
Statement continuously effective under the Securities Act during the Effectiveness Period. A demand for registration under this
Subsection 2.1 shall not be deemed made for purposes of this Subsection 2.1 until such time as the applicable Registration
Statement has been declared effective by the Commission, unless the Requesting Group withdraw their request for such registration
and elect not to pay the registration expenses therefor, in which case the Holders will forfeit their right to one demand Registration
Statement pursuant to this Subsection 2.1.

 

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2.2
Inclusion of Other Registrable Shares and Cutback Provisions. If as a result of Commission Comments not all shares are
included that are desired to be included in a Registration Statement for the Demand Shares, the provisions of Subsection 1.3
shall apply, subject to the Demand Priority (as defined below) of the Requesting Group. Pursuant to the piggyback registration
rights granted under this Agreement, the Company may include the Registrable Shares of all the other Holders with rights under
this Agreement, which will be subject to the provision of Subsection 1.3 hereof, except that under Subsection 1.3(iii),
there will be no cutback of the Registrable Securities of the Requesting Group until the Holders of piggyback Registrable Shares
and the shares of any other person exercising piggyback rights under any other registration rights agreement have been removed,
and thereafter if any further Registrable Securities have to be removed then those of the Requesting Group will be removed pro
rata based on the number of Registrable Shares held by each Holder in the Requesting Group in comparison to the number of Registrable
Securities held by all Holders in the Requesting Group (the “Demand Priority”). Notwithstanding the foregoing,
if any other securities of any person other than the Holders or the Requesting Group or the Placement Agent and its current and
former members and affiliates are included on the Demand Registration Statement, such securities will be removed, if required
pursuant to Commission Comments, after removal of the securities indicated in Subsection 1.3(i) and before the securities
indicated in Subection 1.3(ii), as such persons decide among themselves, and if there is no agreement at to such removal
provided to the Company within a reasonable time, time being of the essence, then all the such securities will be removed.

 

2.3
Termination of Demand Registration Rights. The registration rights afforded to a Holder under this Section 2 shall
terminate on the earliest date when all Registrable Securities of such Holder either: (i) have been publicly sold by the Holder
pursuant to a Registration Statement, (ii) have been covered by an effective Registration Statement which has been effective for
an aggregate period of sixteen (16) months (whether or not consecutive), provided, however, the time period shall be calculated
so as to exclude any Grace Period, or (iii) may be sold by the Holder pursuant to Rule 144 without regard to both the volume limitations
for sales as provided in Rule 144 and the limitations for such sales provided in Rule 144(i), if applicable, as determined by
the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s
transfer agent.

 

2.4
Suspension of Demand Registration Rights. The Company may temporarily suspend the Holders’ registration rights under
this Section 2 for a period of up to forty-five (45) days during any twelve (12) month period if the exercise of those
rights would result in the disclosure of material, non-public information concerning the Company, the disclosure of which at that
time is not, in the good faith opinion of the Board of Directors of the Company (the “Board of Directors”),
in the best interest of the Company and not, after consultation with legal counsel, otherwise required.

 

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3.
Registration Procedures. Whenever any Registrable Securities are to be registered pursuant to this Agreement, the Company
shall use its commercially reasonable efforts to effect the registration and sale of such Registrable Securities in accordance
with the intended method of disposition thereof, and pursuant thereto the Company shall have the following obligations:

 

3.1
The Company shall prepare and file with the Commission a Registration Statement with respect to such Registrable Securities and
use its commercially reasonable efforts to cause such Registration Statement to become effective.

 

3.2
The Company shall prepare and file with the Commission such amendments (including post-effective amendments) and supplements to
a Registration Statement and the Prospectus used in connection with such Registration Statement, which Prospectus is to be filed
pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep such Registration Statement effective at
all times during the Effectiveness Period, and, during such period, comply with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities of the Company covered by such Registration Statement until such time as all
of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the seller
or sellers thereof as set forth in such Registration Statement. In the case of amendments and supplements to a Registration Statement
which are required to be filed pursuant to this Agreement by reason of the Company filing a report on Forms 10-K, 10-Q or Current
Report on Form 8-K, or any analogous report under the Securities 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 day following the day on which the Securities Exchange Act report is filed which created the requirement for the Company
to amend or supplement such Registration Statement.

 

3.3
The Company shall use its commercially reasonable efforts to (i) register and qualify, unless an exemption from registration and
qualification applies, the resale by any seller of the Registrable Securities covered by a Registration Statement under such other
securities or “blue sky” laws of all applicable jurisdictions in the United States, (ii) 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 Effectiveness Period, (iii) take such other actions as may
be necessary to maintain such registrations and qualifications in effect at all times during the Effectiveness Period, and (iv)
take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x)
qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Subsection 3.3,
(y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such
jurisdiction.

 

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3.4
The Company shall use its commercially reasonable 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 Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest practicable
time and to notify the Holder of any Registrable Securities included in the offering under such Registration Statement of such
order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

3.5
The Company shall notify the Holder in writing of the happening of any event, as promptly as practicable after becoming aware
of such event, as a result of which the Prospectus included in a Registration Statement, as then in effect, includes an untrue
statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice
contain any material, nonpublic information), and, subject to Subsection 3.17, promptly prepare a supplement or amendment
to such Registration Statement to correct such untrue statement or omission.

 

3.6
The Company shall promptly notify the Holder in writing (i) when a Prospectus or any Prospectus supplement or post-effective amendment
has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness
shall be delivered to the Holder by facsimile or electronic mail on the same day of such effectiveness or by overnight delivery),
(ii) of any request by the Commission for amendments or supplements to a Registration Statement or related Prospectus or related
information, and (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement
would be appropriate.

 

3.7
If the Holder is required under applicable securities laws to be described in a Registration Statement as an underwriter, at the
reasonable request of such Holder, the Company shall use its commercially reasonable efforts to furnish to such Holder, on the
date of the effectiveness of such Registration Statement and thereafter from time to time on such dates as the Holder may reasonably
request (i) a letter, dated such date, from the Company’s independent certified public accountants in form and substance
as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed
to the Holder, and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration
Statement, in form, scope and substance as is customarily given in an underwritten public offering, addressed to the Holder.

 

3.8
If the Holder is required under applicable securities laws to be described in a Registration Statement as an underwriter, then
at the request of such Holder in connection with such Holder’s due diligence requirements, the Company shall make available
for inspection by (i) the Holder, (ii) the Holder’s legal counsel, and (iii) one firm of accountants or other agents retained
by the Holders (collectively, the “Inspectors”), all pertinent financial and other records, and pertinent corporate
documents and properties of the Company (collectively, the “Records”), as shall be reasonably deemed necessary
by each Inspector, and cause the Company’s officers, directors and employees to supply all information which any Inspector
may reasonably request; provided, however, that each Inspector shall agree to hold in strict confidence and shall
not make any disclosure (except to the Holder) or use of any Record or other information which the Company determines in good
faith to be confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure of such Records
is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the Securities
Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government
body of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other than
by disclosure in violation of this or any other agreement of which the Inspector has knowledge. Each Holder agrees that it shall,
upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through
other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality
agreement between the Company and the Holder) shall be deemed to limit the Holder’s ability to sell Registrable Securities
in a manner which is otherwise consistent with applicable laws and regulations.

 

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3.9
The Company shall hold in confidence and not make any disclosure of information concerning the Holder provided to the Company
unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of
such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release
of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of
competent jurisdiction, (iv) such information has been made generally available to the public other than by disclosure in violation
of this Agreement or any other agreement, or (v) the Holder provides information to the Company intended for inclusion in a Registration
Statement. The Company agrees that it shall, upon learning that disclosure of such information concerning the Holder is sought
in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to the Holder
if permitted by applicable law or regulation and allow the Holder, at the Holder’s expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, such information.

 

3.10
The Company shall (i) if applicable, use its commercially reasonable efforts to cause all of the Registrable Securities covered
by a Registration Statement to be listed on each United States national securities exchange on which securities of the same class
or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under
the rules of such exchange, or (ii) if, despite the Company’s commercially reasonable efforts, as applicable, to satisfy,
the preceding clauses (i) the Company is unsuccessful in satisfying the preceding clauses (i), to instead use commercially reasonable
efforts to secure the inclusion for quotation on the Over-the-Counter Bulletin Board or similar trading medium for such Registrable
Securities and, without limiting the generality of the foregoing, to use its commercially reasonable efforts to encourage at least
two market makers to register with the Financial Industry Regulatory Authority, Inc. (“FINRA”) as such with
respect to such Registrable Securities. For the avoidance of doubt, subject to and in accordance with Section 5, the Company
shall pay all fees and expenses of the Company in connection with satisfying its obligation under this Subsection 3.10.

 

3.11
If requested by the Holder, the Company shall (i) as soon as practicable incorporate in a Prospectus supplement or post-effective
amendment such information as the Holder reasonably requests to be included therein relating to the sale and distribution of Registrable
Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold,
the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering;
(ii) as soon as practicable 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 (iii) as soon as practicable,
supplement or make amendments to any Registration Statement if reasonably requested by the Holder holding any Registrable Securities.

 

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3.12
The Company shall cooperate with each Holder who holds Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the
case may be, as the Holder may reasonably request and registered in such names as the Holder may request.

 

3.13
The Company shall use its commercially reasonable efforts to cause the Registrable Securities covered by a Registration Statement
to be registered with or approved by such other U.S. governmental agencies or authorities, but only in matters not contemplated
by Subsection 3.3 or reasonably related to such matters (which matters are to be governed exclusively by Subsection
3.3), as may be strictly necessary to consummate the disposition of such Registrable Securities by the Holder strictly in
accordance with the Plan of Distribution included in the Registration Statement (as such Plan of Distribution may be modified
from time to time in any filing with the Commission).

 

3.14
The Company shall make generally available to its security holders as soon as practicable, but not later than ninety (90) days
after the close of the period covered thereby (or, if different, within the period permitted for the filing of reports on Forms
10-K or 10-Q), an earnings statement (in form complying with, and in the manner provided by, the provisions of Rule 158 under
the Securities Act) covering a twelve-month period beginning not later than the first day of the Company’s fiscal quarter
next following the Effective Date of a Registration Statement

 

3.15
The Company shall otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the
Commission in connection with any registration hereunder.

 

3.16
Within three (3) business days after a Registration Statement which covers Registrable Securities is ordered effective by the
Commission, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such
Registrable Securities (with copies to the Holder whose Registrable Securities are included in such Registration Statement) confirmation
that such Registration Statement has been declared effective by the Commission in the form attached hereto as Exhibit A
and the Irrevocable Transfer Agent Instructions in the form attached hereto as Exhibit B.

 

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3.17
Notwithstanding anything to the contrary herein, at any time after the Effective Date of a Registration Statement, the Company
may delay the disclosure of material, non-public information concerning the Company the disclosure of which at the time is not,
in the good faith opinion of the Board of Directors, in the best interest of the Company and not, after consultation with legal
counsel, otherwise required (a “Grace Period”); provided, that the Company shall promptly (i) notify the Holder
in writing of the existence of material, non-public information giving rise to a Grace Period (provided that in each notice the
Company will not disclose the content of such material, non-public information to the Holder) and the date on which the Grace
Period will begin, and (ii) notify the Holder in writing of the date on which the Grace Period ends; and, provided further, that
no Grace Period shall exceed sixty (60) consecutive days and during any three hundred sixty-five (365) day period such Grace Periods
shall not exceed an aggregate of one hundred twenty (120) days (each, an “Allowable Grace Period”). For purposes
of determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Holder receives the
notice referred to in clause (i) and shall end on and include the later of the date the Holder receives the notice referred to
in clause (ii) and the date referred to in such notice. The provisions of Subsection 3.5 hereof shall not be applicable
during the period of any Allowable Grace Period. Upon expiration of the Grace Period, the Company shall again be bound by Subsection
3.5 with respect to the information giving rise thereto unless such material, non-public information is no longer applicable.
Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of Common Stock
to a transferee of the Holder in connection with any sale of Registrable Securities with respect to which the Holder has entered
into a contract for sale, and delivered a copy of the Prospectus included as part of the applicable Registration Statement (unless
an exemption from such Prospectus delivery requirements exists), prior to the Holder’s receipt of the notice of a Grace
Period or, if earlier, Holder’s knowledge of the material, non-public information concerning the Company that gave rise
to the Grace Period, and for which the Holder has not yet settled.

 

3.18
In the event the number of shares available under any Registration Statement filed pursuant to this Agreement is insufficient
to cover all of the Registrable Securities required to be covered by such Registration Statement in accordance with the requirements
of this Agreement or a Holder’s allocated portion of the Registrable Securities pursuant to Subsections 1.3 or 2.2,
the Company may, as an alternative, to filing a Follow-up Registration Statement, amend the Registration Statement (if permissible)
on or before the date the filing of a Follow-up Registration Statement would be required, so as to cover at least the required
number of Registrable Securities (but taking account of any SEC Staff position with respect to the date on which the Staff will
permit such amendment to the Registration Statement and/or such new Registration Statement (as the case may be) to be filed with
the SEC). The Company shall use its commercially reasonable efforts to cause any such amendment to the Registration Statement
(as the case may be) to become effective as soon as practicable following the filing thereof with the SEC.

 

4.
Obligations of the Holders.

 

4.1
At least five (5) business days prior to the first anticipated filing date of a Registration Statement, the Company shall notify
the Holders in writing of the information the Company requires from each Holder if the Holder’s Registrable Securities are
to be included in such Registration Statement. It shall be a condition precedent to the obligations of the Company to complete
the registration pursuant to this Agreement with respect to any Registrable Securities of the Holder that the Holder shall furnish
to the Company information regarding itself, the Registrable Securities held by it and the intended method of disposition of the
Registrable Securities held by it as shall be reasonably required to effect the effectiveness of the registration of the Registrable
Securities and shall execute documents in connection with the registration as the Company may reasonably request.

 

    	 	10	 

     

    

 

4.2
The Holder, by the Holder’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless the Holder
has notified the Company in writing of the Holder’s election to exclude all of such Holder’s Registrable Securities
from such Registration Statement.

 

4.3
The Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Subsections
3.5 or 3.6 or of a Grace Period under Subsection 3.17, the Holder will immediately discontinue disposition of
Registrable Securities pursuant to any Registration Statement(s) covering such Registrable Securities until the Holder’s
receipt of the copies of the supplemented or amended Prospectus contemplated by Subsections 3.5 or 3.6 or receipt
of notice that no supplement or amendment is required. Notwithstanding anything to the contrary, the Company shall cause its transfer
agent to deliver unlegended shares of Common Stock to a transferee of the Holder in connection with any sale of Registrable Securities
with respect to which the Holder has entered into a contract for sale prior to the Holder’s receipt of a notice from the
Company of the happening of any event of the kind described in Subsections 3.5 or 3.6 or of any Grace Period, or,
if earlier, Holder’s knowledge of the material, non-public information concerning the Company or the facts or circumstances
that gave rise to the Grace Period or of the Subsection 3.5 or 3.6 event, and for which the Holder has not yet settled.

 

4.4
The Holder covenants and agrees that it will comply with the Prospectus delivery requirements of the Securities Act as applicable
to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to a Registration Statement.

 

5.
Registration Expenses. All expenses incident to the Company’s performance of, or compliance with, this Agreement,
including without limitation all registration and filing fees, fees and expenses of compliance with securities or blue sky laws,
printing expenses, messenger and delivery expenses, fees and disbursements of custodians, and fees and disbursements of counsel
for the Company and all independent certified public accountants, underwriters (excluding Selling Expenses) and other Persons
retained by the Company and the reasonable fees and disbursements of one counsel for the selling Holders (the “Selling
Holder Counsel”) (all such expenses being herein called “Registration Expenses”), shall be borne
by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration
proceeding begun pursuant to Subsection 2.1 if the demand registration request is subsequently withdrawn at the request
of the Requesting Group (in which case all Holders within the Requesting Group shall bear such expenses pro rata based upon the
number of Registrable Securities that were to be included in the withdrawn registration), unless the Requesting Group agrees to
forfeit their right to one registration pursuant to Subsection 2.1. Further, the Company shall pay its internal expenses
(including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties),
the expense of any annual audit or quarterly review, the expense of any liability insurance and the expenses and fees for listing
the securities to be registered on each securities exchange on which similar securities issued by the Company are then listed.

 

    	 	11	 

     

    

 

6.
Indemnification.

 

In
the event any Registrable Securities held by a Holder are included in a Registration Statement under this Agreement:

 

6.1
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend such Holder, the
directors, officers, members, partners, employees, agents, representatives of such Holder, and each Person, if any, who controls
such Holder within the meaning of the Securities Act or the Securities Exchange Act (each, an “Indemnified Person”),
against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees,
amounts paid in settlement or expenses, joint or several, (collectively, “Indemnified Damages”) incurred, including
in connection with the investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal
taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the Commission,
whether pending or threatened, whether or not an indemnified party is or may be a party thereto (collectively, “Claims”),
to which any of them may become subject, insofar as such Indemnified Damages and/or Claims arise out of or are based upon: (i)
any untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment
thereto or in any filing made in connection with the qualification of the offering under the securities or other “blue sky”
laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or
alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading,
(ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary Prospectus if used prior
to the effective date of such Registration Statement, or contained in the final Prospectus (as amended or supplemented, if the
Company files any amendment thereof or supplement thereto with the Commission) or the omission or alleged omission to state therein
any material fact necessary to make the statements made therein, in the light of the circumstances under which the statements
therein were made, not misleading, (iii) any violation or alleged violation by the Company of the Securities Act or the Securities
Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating
to the offer or sale of the Registrable Securities pursuant to a Registration Statement or (iv) any violation of this Agreement
(the matters in the foregoing clauses (i) through (iv) being, collectively, “Violations”). Subject to Subsection
6.3, the Company shall reimburse the Indemnified Persons, promptly as such expenses are incurred and are due and payable,
for any legal fees or other reasonable expenses incurred by them in connection with investigating or defending any applicable
Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Subsection
6.1: (i) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance
upon and in conformity with information furnished in writing to the Company by such Indemnified Person or by a Related Information
Provider expressly for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement
thereto and (ii) shall not be available to the extent such Claim is based on a failure of the Holder to deliver or to cause to
be delivered the Prospectus made available by the Company, including a corrected Prospectus, if such Prospectus or corrected Prospectus
was timely made available by the Company pursuant to Subsection 3.6; and (iii) shall not apply to amounts paid in settlement
of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably
withheld or delayed. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf
of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Holder pursuant to Section 10.
“Related Information Provider” means, in respect of any Indemnified Person, the Holder to which such Indemnified
Person is related or another Indemnified Person that is related to the Holder to which such Indemnified Person is related.

 

    	 	12	 

     

    

 

6.2
To the fullest extent permitted by law, in connection with any Registration Statement in which a Holder’s Registrable Securities
are included or in which a Holder is otherwise participating, such Holder will severally and not jointly 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 Securities Act, any underwriter, any other Holder or other Person selling securities in
such Registration Statement and any controlling person of any such underwriter or other Holder or other Person (each an “Other
Indemnified Person”), against any Claims or Indemnified Damages to which any of them may become subject, under the Securities
Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon (i) any Violation,
in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written
information furnished by such Holder or by a Related Information Provider for use in connection with such Registration Statement;
or (ii) such Holder’s failure to comply with the prospectus delivery requirements of the Securities Act; and each such Holder
will pay, as incurred, any legal or other expenses reasonably incurred by any Other Indemnified Person intended to be indemnified
pursuant to this Subsection 6.2, in connection with investigating or defending any such Claim; provided, however,
that the indemnity agreement contained in this Subsection 6.2 shall not apply to amounts paid in settlement of any such
Claim if such settlement is effected without the prior written consent of the Holder, which consent shall not be unreasonably
withheld; provided, further, however, that the Holder shall be liable under this Subsection 6.2 for
only that amount of a Claim or Indemnified Damages as does not exceed the proceeds to such Holder (net of any Selling Expenses
paid by such Holder) as a result of the sale of Registrable Securities pursuant to such Registration Statement, except in the
case of gross negligence or fraud by such Holder. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Other Indemnified Person and shall survive the transfer of the Registrable Securities by the Holder
pursuant to Section 10.

 

6.3
Promptly after receipt by an Indemnified Person or Other Indemnified Person under this Section 6 of notice of the commencement
of any Claim involving Indemnified Damages that arise out of or are based on a Violation, such Indemnified Person or Other Indemnified
Person shall, if a claim for indemnification in respect thereof is to be made against any indemnifying party under this Section
6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the
right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly
noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and reasonably
satisfactory to the Indemnified Person or the Other Indemnified Person, as the case may be; provided, however, that
an Indemnified Person or Other Indemnified Person shall have the right to retain its own counsel with the fees and expenses of
not more than one counsel for all such Indemnified Persons or all such Other Indemnified Persons to be paid by the indemnifying
party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the
Indemnified Person or Other Indemnified Person and the indemnifying party would be inappropriate due to actual or potential differing
interests between such Indemnified Person or Other Indemnified Person and any other party represented by such counsel in such
proceeding. The Other Indemnified Person or Indemnified Person, as applicable, shall cooperate fully with the indemnifying party
in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to such Other Indemnified Person or such Indemnified Person which relates to such action
or Claim. The indemnifying party shall keep the Other Indemnified Person or Indemnified Person, as applicable, reasonably apprised
at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall
be liable for any settlement of any action, claim or proceeding effected without its prior written consent; provided, however,
that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without
the prior written consent of the Other Indemnified Person or Indemnified Person, as applicable, consent to entry of any judgment
or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant
or plaintiff to such Other Indemnified Person or such Indemnified Person of a release from all liability in respect to the Claim
at issue, and such settlement shall not include any admission as to fault on the part of such Other Indemnified Person or such
Indemnified Person. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights
of the Other Indemnified Person or Indemnified Person, as applicable, with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to
the Indemnified Person or Other Indemnified Person, as applicable, under this Section 6, except to the extent that the
indemnifying party is materially prejudiced in its ability to defend such action.

 

    	 	13	 

     

    

 

6.4
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, as and when bills are received or Indemnified Damages are incurred, subject to an undertaking
by the Indemnified Person or the Other Indemnified Person, as applicable, to return such payments to the extent a court of competent
jurisdiction or other competent authority determines that such payments were unlawful or were not required under this Agreement.

 

6.5
Without any duplication or multiplication of damages, the indemnity agreements contained herein shall be in addition to (i) any
cause of action or similar right of the Other Indemnified Person or Indemnified Person against the indemnifying party or others,
and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

 

6.6
Unless suspended by the underwriting agreement applicable to any registration, the obligations of the Company and Holders under
this Section 6 shall survive the completion of any offering of Registrable Securities in a Registration Statement under
this Agreement, or otherwise.

 

    	 	14	 

     

    

 

7.
Contribution. To the extent any indemnification by an indemnifying party is prohibited or limited by law, such indemnifying
party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section
6 to the fullest extent permitted by law; provided, however, that: (i) no Person involved in the sale of Registrable
Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Subsection 10(f) of the Securities
Act) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities
who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited
in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities pursuant to such
Registration Statement.

 

8.
No Delay of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying
any registration as the result of any controversy that might arise with respect to the interpretation or implementation of this
Agreement.

 

9.
Reports under Securities Exchange Act. With a view to making available to the Holder the benefits of Rule 144 promulgated
under the Securities Act or any other similar rule or regulation of the Commission that may at any time permit the Holder to sell
securities of the Company to the public without registration, once the Company becomes a Reporting Company, the Company shall:

 

9.1
make and keep available adequate current public information, as those terms are understood and defined in Rule 144, at all times;

 

9.2
file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and
the Securities Exchange Act so long as the Company remains subject to such requirements and the filing of such reports and other
documents is required for the applicable provisions of Rule 144; and

 

9.3
furnish to the Holder so long as the Holder owns Registrable Securities, promptly upon request, (i) a written statement by the
Company, if true, that it has complied with the reporting requirements of Rule 144, the Securities Act and the Securities Exchange
Act, and (ii) such other information as may be reasonably requested to permit the Holder to sell such securities pursuant to Rule
144 without registration.

 

10.
Assignment of Registration Rights. Prior to the time that the Registrable Securities may be sold pursuant to Rule 144,
the rights under this Agreement shall be automatically assignable by the Holder to any transferee of all or any portion of the
Holder’s Registrable Securities if: (i) the Holder agrees in writing with the transferee or assignee to assign such rights,
and a copy of such agreement is furnished to the Company within a reasonable time after such assignment; (ii) the Company is,
within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address of such
transferee or assignee, and (b) the securities with respect to which such registration rights are being transferred or assigned;
(iii) immediately following such transfer or assignment the further disposition of such securities by the transferee or assignee
is or might be restricted under the Securities Act and applicable state securities laws; and (iv) at or before the time the Company
receives the written notice contemplated by clause (ii) of this sentence the transferee or assignee agrees in writing with the
Company to be bound by all of the provisions contained herein.

 

    	 	15	 

     

    

 

11.
Subsequent Registration Rights. From and after the date of this Agreement until such time as there are no Registrable Securities
eligible for registration pursuant to Sections 1 or 2 of this Agreement, the Company shall not, without the prior written
consent of the Holders of a majority of the Registrable Securities then outstanding, enter into any agreement with any holder
or prospective holder of any securities of the Company that (i) would provide to such holder the right to include securities in
any registration other than on a pari passu basis with all Holders wishing to include in the registration and offering such Holders’
shares of Registrable Securities.

 

12.
Amendment of Registration Rights. Provisions of this Agreement may be amended and the observance thereof may be waived
(either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the
Company and the Holders holding a majority of the then outstanding Registrable Securities; provided, that the obligations of the
Company pursuant to Section 13 may not be waived with respect to Johnson & Johnson Innovation - JJDC, Inc. (“JJDC”)
without the prior written consent of JJDC. Subject to the proviso set forth in the immediately preceding sentence, any amendment
so effected will be binding upon all Holders, whether or not such Holder consents thereto. Notwithstanding the foregoing, this
Agreement may not be amended or terminated and the observance of any term hereof may not be waived with respect to any Investor
without the written consent of such Investor, unless such amendment, termination, or waiver applies to all Investors in the same
fashion. The Company shall give prompt notice of any amendment or termination hereof or waiver hereunder to any party hereto that
did not consent in writing to such amendment, termination, or waiver.

 

13.
Rights of First Offer.

 

13.1
Subject to the terms and conditions of this Section 13 and applicable securities laws, if the Company proposes to offer
or sell any New Securities, the Company shall first offer such New Securities to each Major Investor. A Major Investor shall be
entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate, among itself
and its Affiliates.

 

13.2
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.

 

13.3
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
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). At the expiration of such twenty (20) day period,
the Company shall promptly notify each Major Investor that elects to purchase or acquire all the shares available to it (each,
a “Fully Exercising Investor”) of any other Major Investor’s failure to do likewise. During the ten (10) day
period commencing after the Company has given such notice, each Fully Exercising Investor may, by giving notice to the Company,
elect to purchase or acquire, in addition to the number of shares specified above, up to that portion of the New Securities for
which Major Investors were entitled to subscribe but that were not subscribed for by the Major Investors which is equal to the
proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable,
of the Preferred Stock and any other Derivative Securities then held, by such Fully Exercising Investor bears to the Common Stock
issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Stock and
any other Derivative Securities then held, by all Fully Exercising Investors who wish to purchase such unsubscribed shares. The
closing of any sale pursuant to this Subsection 8.3 shall occur within the later of one hundred and twenty (120) days of
the date that the Offer Notice is given and the date of initial sale of New Securities pursuant to Subsection 8.3.

 

    	 	16	 

     

    

 

13.4
If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Subsection
13.3, the Company may, during the ninety (90) day period following the expiration of the periods provided in Subsection
13.3, offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less
than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter
into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within thirty
(30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not
be offered unless first reoffered to the Major Investors in accordance with this Subsection 8.

 

13.5
The right of first offer in this Section 13 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.

 

13.6
Notwithstanding any provision hereof to the contrary, in lieu of complying with the provisions of this Section 13, the
Company may elect, at its option, to give notice to the Major Investors within thirty (30) days after the issuance of New Securities.
Such notice shall describe the type, price, and terms of the New Securities. Each Major Investor shall have twenty (20) days from
the date notice is given to elect to purchase up to the number of New Securities that would, if purchased by such Major Investor,
maintain such Major Investor’s percentage-ownership position, calculated as set forth in Subsection 13.3 before giving
effect to the issuance of such New Securities. The closing of such sale shall occur within sixty (60) days of the date notice
is given to the Major Investors.

 

13.7
The rights and obligations set forth in this Section 13 shall terminate immediately upon the Company’s Initial Public
Offering.

 

    	 	17	 

     

    

 

14.
Delivery of Financial Statements. The Company shall deliver to each Major Investor, provided that the Board of Directors
has not reasonably determined that such Major Investor is a competitor of the Company (provided, further, that in no event shall
JJDC or any of its Affiliates be deemed a competitor of the Company):

 

14.1
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;

 

14.2
Notwithstanding anything else in this Section 14 to the contrary, the Company may cease providing the information set forth
in this Section 14 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 Section 14
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.

 

14.3
The rights and obligations set forth in this Section 14 shall terminate immediately upon the Company’s Initial Public
Offering.

 

15.
Inspection. The Company shall permit each Major Investor, provided that the Board of Directors has not reasonably determined
that such Major Investor is a competitor of the Company (provided, further, that in no event shall JJDC or any of its Affiliates
be deemed a competitor of the Company), at such Major Investor’s expense, to visit and inspect the Company’s properties;
examine its books of account and records; and discuss the Company’s affairs, finances, and accounts with its officers, during
normal business hours of the Company as may be reasonably requested by the Major Investor; provided, however, that the Company
shall not be obligated pursuant to this Section 15 to provide access to any information that it reasonably and in good
faith considers to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement,
in form acceptable to the Company) or the disclosure of which would adversely affect the attorney-client privilege between the
Company and its counsel. The rights and obligations set forth in this Section 15 shall terminate immediately upon the Company’s
Initial Public Offering.

 

16.
Employee Agreements. The Company will cause (i) each person now or hereafter employed by it or by any subsidiary (or engaged
by the Company or any subsidiary as a consultant/independent contractor) with access to confidential information and/or trade
secrets to enter into a nondisclosure and proprietary rights assignment agreement; and (ii) each Key Employee (as defined below)
to enter into a customary noncompetition and nonsolicitation agreement, substantially in the form approved by the Board of Directors.
A “Key Employee” shall mean any executive-level employee of the Company.

 

    	 	18	 

     

    

 

17.
Definitions.

 

17.1
“Affiliate” means, with respect to any specified Person, any other Person who, directly or indirectly, controls,
is controlled by, or is under common control with such Person, including without limitation any general partner, managing member,
officer or director of such Person or any venture capital fund now or hereafter existing that is controlled by one or more general
partners or managing members of, or shares the same management company with, such Person.

 

17.2
“Commission” means the Securities and Exchange Commission.

 

17.3
“Commission Comments” means written comments pertaining solely to Rule 415 or other comments to the extent
they relate to Rule 415 which are received by the Company from the Commission, and a copy of which shall have been provided by
the Company to the Holder, to a filed Registration Statement which limit the amount of shares which may be included therein to
a number of shares which is less than such amount sought to be included thereon as filed with the Commission.

 

17.4
“Commission Guidance” means (i) any publicly-available written or oral guidance, comments, requirements or
requests of the Commission staff, (ii) the Securities Act or (iii) the Securities Exchange Act.

 

17.5
“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.

 

17.6
“Effective Date” means, as to a Registration Statement, the date on which such Registration Statement is first
declared effective by the Commission.

 

17.7
“Initial Public Offering” means the initial underwritten public offering of the Company’s Common Stock
under the Securities Act.

 

17.8
“Major Investor” means any Investor that, individually or together with such Investor’s affiliates, holds
at least 400,000 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination, or other recapitalization
or reclassification effected after the date hereof).

 

17.9
“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 and shall not include any Exempted Securities
(as defined in the Company’s Certificate of Incorporation).

 

17.10
“Person” means an individual, a partnership, a limited liability company, a corporation, an association, a
joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency
or political subdivision thereof.

 

    	 	19	 

     

    

 

17.11
“Prospectus” means the prospectus included in the Registration Statement (including, without limitation, a
prospectus that includes any information previously omitted from a prospectus filed as part of an effective Registration Statement
in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all
other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus

 

17.12
“Registrable Securities” means (i) the shares of Common Stock issued or issuable upon conversion of the Shares
issued pursuant to the Securities Purchase Agreement; (ii) shares of Common Stock issued or issuable upon exercise of the Placement
Agent Warrants; and (iii) any other shares of Common Stock or any other securities issued or issuable with respect to the securities
referred to in clauses (i) and (ii) by way of a stock dividend or stock split or in connection with an exchange or combination
of shares, recapitalization, merger, consolidation or other reorganization.

 

17.13
“Registration Statement” means any registration statement (including, without limitation, the Initial Registration
Statement or the Follow-up Registration Statement) required to be filed hereunder (which, at the Company’s option, may be
an existing registration statement of the Company previously filed with the Commission, but not declared effective), including
(in each case) the Prospectus, amendments and supplements to the Registration Statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in the
Registration Statement.

 

17.14
“Reporting Company” means a company that is obligated to file periodic reports under Sections 13 or 15(d) of
the Securities Exchange Act.

 

17.15
“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the Commission that may at any time permit the
Holder to sell securities of the Company to the public without registration.

 

17.16
“Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same
effect as such Rule.

 

17.17
“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same
effect as such Rule.

 

17.18
“Securities Act” means the Securities Act of 1933, as amended from time to time together with the regulations
promulgated thereunder.

 

17.19
“Securities Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, together
with the regulations promulgated thereunder.

 

    	 	20	 

     

    

 

17.20
“Selling Expenses” means all underwriting discounts, selling commissions, and stock transfer taxes applicable
to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements
of the Selling Holder Counsel borne and paid by the Company as provided in Section 5.

 

17.21
“Underwriter Cutbacks” means any reduction in the number of shares suggested by any managing underwriter to
be included in a registration under a Registration Statement based upon the guidance in this Subsection 17.21. In connection
with any offering involving an underwriting of shares of the Company’s capital stock, the Company shall not be required
under Section 1 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, and then only in such quantity as the underwriters determine in their
sole discretion will not jeopardize the success of the offering 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 to be sold other than by
the Company that the underwriters determine in their sole discretion is compatible with the success of the offering, then the
Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which
the underwriters 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 shareholders according to the total amount of securities entitled to be included
therein owned by each selling shareholder or in such other proportions as shall mutually be agreed to by such selling shareholders);
provided, that any such cutback will be effected in accordance with the priorities established by Subsection 1.3.

 

18.
Market Stand-Off. Unless subject to a separate lock-up agreement with more restrictive terms, in connection with the Initial
Public Offering of the Company’s securities, if any, each Holder hereby agrees not to sell, make any short sale of, loan,
grant any option for the purchase of, or otherwise dispose of any securities of the Company purchased under the Securities Purchase
Agreement or the securities into which those purchased securities are converted or exchanged without the prior written consent
of the managing or lead underwriter of such offering, for a period of one hundred and eighty (180) days from the effective date
of such registration (the “Restricted Period”), and to the extent requested by the underwriter, each Holder
shall, at the time of such offering, execute a separate, additional agreement reflecting these requirements binding on such Holder
that are substantially consistent with this Section 18; provided, further, however, that the foregoing provisions of this
Section 18 shall be applicable to the Holders only if all of the Company’s directors and officers are subject to lock up
restrictions during the Restricted Period no less favorable than those set forth in this Section 18 on the securities that they
hold as of the Initial Public Offering. For clarity, if the managing or lead underwriter consents to the sale or disposal of the
locked-up securities, the Company will take action to remove any restrictive legend in respect of the lock-up restrictions. In
order to enforce the restriction set forth above or in the Securities Purchase Agreement or any other restriction agreed by Holder,
including without limitation any restriction requested by the underwriters of any Initial Public Offering of the securities of
the Company agreed by such Holder, the Company may impose stop-transfer instructions with respect to any security acquired under
or subject to this Agreement until the end of the applicable stand-off period. The Company’s underwriters shall be third-party
beneficiaries of the agreement set forth in this Section 18. Each Holder agrees that prior to the Company’s Initial
Public Offering it will not transfer securities of the Company unless each transferee agrees in writing to be bound by all of
the provisions of this Section 18, provided that this Section 18 shall not apply to transfers pursuant to
a Registration Statement.

 

    	 	21	 

     

    

 

Each
Holder agrees that a legend reading substantially as follows shall be placed on all certificates representing all Registrable
Securities of each Holder issued before the Company’s Initial Public Offering (and the shares or securities of every other
person subject to the restriction contained in this Section 18):

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP PERIOD OF UP TO 180 DAYS AFTER THE EFFECTIVE DATE OF THE ISSUER’S
REGISTRATION STATEMENT FILED UNDER THE SECURITIES ACT, AS AMENDED, AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL
HOLDER OF THESE SECURITIES, A COPY OF WHICH MAY BE OBTAINED AT THE ISSUER’S PRINCIPAL OFFICE. SUCH LOCK-UP PERIOD IS BINDING
ON TRANSFEREES OF THESE SHARES.

 

After
the Company’s Initial Public Offering and expiration of any lock-up period, upon request of any Holder who is a holder of
record of the shares represented by any stock certificate(s) bearing such legend and the surrender of such certificate(s) in connection
with such request, the Company shall cause its transfer agent to promptly issue replacement certificate(s) not bearing such legend
representing the shares represented by such surrendered stock certificate(s).

 

19.
Miscellaneous.

 

19.1
A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from such record
owner of such Registrable Securities.

 

19.2
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (iii) one business day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If
to the Company:

 

Provention
Bio, Inc.

110
Old Driftway Lane

Lebanon,
NJ 08833

Facsimile:
(908) 428-9136

Phone:
(908) 428-9136

E-mail:
Ashleigh@creativebioventures.com

Attention:
Ashleigh Palmer, Chief Executive Officer

 

    	 	22	 

     

    

 

With
a copy (for informational purposes only) to:

 

Lowenstein
Sandler LLP

1251
Avenue of the Americas

New
York, NY 10020

Phone:
(973) 597-6394

Facsimile:
(973) 597-6395

E-mail:
mlerner@lowenstein.com

Attention:
Michael J. Lerner

 

and

 

If
to any Holder, at the address for such Holder on the records of the Company, which may include the information on Schedule A hereto
or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified
by written notice given to each other party five (5) days prior to the effectiveness of such change.

 

Written
confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an
image of the first page of such transmission or (C) provided by a courier or overnight courier service shall be rebuttable evidence
of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service.

 

19.3
Waivers. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in
exercising such right or remedy, shall not operate as a waiver thereof.

 

19.4
Governing Law; Choice of Venue. This Agreement shall be governed by, and construed in accordance with, the internal laws
of the State of Delaware without regard to the choice of law principles thereof. Each of the parties hereto irrevocably submits
to the exclusive jurisdiction of the courts of the State of Delaware and the United States District Court for the District of
Delaware for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions
contemplated hereby. Service of process in connection with any such suit, action or proceeding may be served on each party hereto
anywhere in the world by the same methods as are specified for the giving of notices under this Agreement. Each of the parties
hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of
venue in such court. Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding
brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has
been brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION
WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER

 

    	 	23	 

     

    

 

19.5
Entire Agreement. This Agreement and the instruments referenced herein and therein constitute the entire agreement among
the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein and therein. This Agreement and the instruments referenced herein and therein
supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof.

 

19.6
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.

 

19.7
Counterparts; Facsimile. This Agreement may be executed in identical counterparts, each of which shall be deemed an original
but all of which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the
other party hereto by facsimile transmission or other electronic transmission (such as but not limited to an email attachment
in PDF format) of a copy of this Agreement bearing the signature of the party so delivering this Agreement. This Agreement may
also be executed by electronic or facsimile signature.

 

19.8
Further Assurances. At any time or from time to time after the date hereof, the Parties agree to cooperate with each other,
and at the request of any other Party, to execute and deliver any further instruments or documents and to take all such further
action as the other Party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated
hereby and to otherwise carry out the intent of the Parties hereunder.

 

19.9
All consents and other determinations required to be made by the Holder pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Holder.

 

19.10
Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against any party.

 

19.11
Successors and Assigns. This Agreement is intended for the benefit of, and shall be binding upon, the parties hereto and
their respective successors and permitted assigns, and is not for the benefit of, nor may any provision hereof be enforced by,
any other Person.

 

19.12
The obligations of each Holder hereunder are several and not joint with the obligations of any other Holder, and no provision
of this Agreement is intended to confer any obligations on a Holder vis-à-vis any other Holder. Nothing contained herein,
and no action taken by any Holder pursuant hereto, shall be deemed to constitute the Holder as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Holder are in any way acting in concert or as a
group with respect to such obligations or the transactions contemplated herein.

 

19.13
Currency. As used herein, “Dollar”, “US Dollar” and “$”
each mean the lawful money of the United States.

 

[Signature
Pages Follow]

 

    	 	24	 

     

    

 

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

 

	 	COMPANY:
	 	 	 
	 	Provention
    Bio, Inc.
	 	 	 
	 	By:	               
	 	Name:	 
	 	Title:	 

 

	 	HOLDER:
	 	 	    
	 	PRINT
    NAME: 	       
	 	 	 
	 	SIGNATURE:
    	 
	 	 
	 	 	 
	 	MDB
    Capital Group LLC, for itself and its members and affiliates
	 	 	 
	 	 
	 	Anthony
    DiGiandomenico,
	 	Authorized
    Signatory

 

[Signature
Page to Registration and Investor Rights Agreement for Provention Bio, Inc.]

 

    	 	 	 

     

    

 

EXHIBIT
A

 

FORM
OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

[Transfer
Agent]

[Address]

Attention:

 

Re:
Provention Bio, Inc.

 

Ladies
and Gentlemen:

 

[We
are][I am] counsel to Provention Bio, Inc., a Delaware corporation (the “Company”), and have represented the
Company in connection with that certain Registration and Investor Rights Agreement with ________________ (the “Holder”)
(the “Registration and Investor Rights Agreement”) pursuant to which the Company agreed, among other things,
to register the Registrable Securities (as defined in the Registration and Investor Rights Agreement), under the Securities Act
of 1933, as amended (the “1933 Act”). In connection with the Company’s obligations under the Registration
and Investor Rights Agreement, on ____________ ___, 201_, the Company filed a registration statement on Form S-[1] (File No. 333-_____________)
(the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”) relating to the
Registrable Securities which names the Holder as a selling stockholder thereunder.

 

In
connection with the foregoing, [we][I] advise you that a member of the SEC’s staff has advised [us][me] by telephone that
the SEC has entered an order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS]
on [ENTER DATE OF EFFECTIVENESS] and [we][I] have no knowledge, after telephonic inquiry of a member of the SEC’s staff,
that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before,
or threatened by, the SEC and the Registrable Securities are available for resale under the 1933 Act pursuant to the Registration
Statement.

 

If
applicable, you may receive notices from the Company pursuant to the Company’s rights or obligations under the Registration
and Investor Rights Agreement in connection with stop orders or other restrictions on transfer of the shares included in such
Registration Statement, but [we][I] [are][am] not obligated to update this letter or otherwise inform you of any such stop order
or restriction.

 

[Other
applicable disclosure to be inserted here, if appropriate.]

 

Very
truly yours,

 

    	 	 	 

     

    

 

EXHIBIT
B

 

IRREVOCABLE
TRANSFER AGENT INSTRUCTIONS

 

_______________,
201_

 

[Addressed
to Transfer Agent]

_______________________

_______________________

 

	Attention:	[________________________]	 

 

Ladies
and Gentlemen:

 

Reference
is made to that certain Registration and Investor Rights Agreement, dated as of April 25, 2017 (the “Agreement”),
by and among Provention Bio, Inc., a Delaware corporation (the “Company”), and _________________________ (the
“Holder”), pursuant to which the Company is obligated to register certain shares held by the Holder (the “Holder
Shares”) of Common Stock of the Company, par value $0.001 per share (the “Common Stock”).

 

This
letter shall serve as our irrevocable authorization and direction to you (provided that you are the transfer agent of the Company
at such time) to issue shares of Common Stock upon transfer or resale of the Holder Shares, unless we have otherwise informed
you of the termination of effectiveness of the registration statement in which the Holder Shares are included, a stop order or
another transfer restriction. We may also later inform you that after the termination of effectiveness of such registration statement
that a registration statement in which the Holder’s Shares are included, or that such stop order has been lifted or that
such transfer restriction is not applicable, in which case this authorization and direction shall be reinstated and be effective.

 

You
acknowledge and agree that so long as you have previously received (a) written confirmation from the Company’s legal counsel
that either (i) a registration statement covering resales of the Holder Shares has been declared and remains effective by the
Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933
Act”), or (ii) sales of the Holder Shares may be made in conformity with Rule 144 under the 1933 Act (“Rule
144”), (b) if applicable, a copy of such registration statement, and (c) notice from legal counsel to the Company or
any Holder that a transfer of Holder Shares has been effected either pursuant to the registration statement (and a prospectus
delivered to the transferee) or pursuant to Rule 144, then as promptly as practicable, you shall issue the certificates
representing the Holder Shares registered in the names of such transferees, and such certificates shall not bear any legend restricting
transfer of the Common Stock evidenced thereby and should not be subject to any stop-transfer restriction; provided, however,
that if such shares of Common Stock and are not registered for resale under the 1933 Act or able to be sold under Rule 144, then
the certificates for such Common Shares shall bear the following legend:

 

    	 	 	 

     

    

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL
IN A FORM SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933. THE SECURITIES MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

A
form of written confirmation from the Company’s outside legal counsel that a registration statement covering resales of
the Holder Shares has been declared effective by the SEC under the 1933 Act is attached hereto. We will inform you of any stop
orders or other transfer restrictions.

 

Please
execute this letter in the space indicated to acknowledge your agreement to act in accordance with these instructions. Should
you have any questions concerning this matter, please contact me at ____________.

 

	 	Very
    truly yours,
	 	 	 
	 	Provention
    Bio, Inc.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

THE
FOREGOING INSTRUCTIONS ARE

ACKNOWLEDGED
AND AGREED TO

this
___ day of ________________, 201_

 

[Name
of Transfer Agent]

 

	By:
    	 	 
	Name:
    	 	 
	Title:
    	 	 

 

Enclosures

 

Copy:
Holder

 

    	 	 	 

     

    

 

SCHEDULE
A

 

LIST
OF HOLDERS

 

	Name	 	Address
	 	 	 

 

    	 	 	 

     

    

 

SCHEDULE
B

 

SELLING
STOCKHOLDERS

 

The
shares of Common Stock being offered by the selling stockholders are those that were issued [upon conversion of shares of Preferred
Stock] and/or [upon exercise of warrants] previously issued to the selling stockholders [pursuant to] and/or [in connection with]
a securities purchase agreement. For additional information regarding the issuance of the shares of Common Stock, see “Private
Placement” above. We are registering the shares of common stock in order to permit the selling stockholders to offer
the shares for resale [from time to time]. Except for the ownership of the shares issued pursuant to and in connection with the
Securities Purchase Agreement, [and the warrants issued pursuant to and the agreements governing our engagement of MDB as a placement
agent for the private placement of shares and the engagement of MDB as an underwriter for a public offering of common stock by
the Company] the selling stockholders have not had any material relationship with us within the past three years.

 

The
table below lists the selling stockholders and other information regarding the beneficial ownership (as determined under Section
13(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder) of the shares of common stock
held by each of the selling stockholders. The second column lists the number of shares of common stock beneficially owned by the
selling stockholders, based on their respective ownership of shares of common stock, as of ________ ___, 20___.

 

In
accordance with the terms of a registration rights agreement with selling stockholders, this prospectus generally covers the resale
of the shares of common stock previously issued to the selling stockholders.

 

See
“Plan of Distribution.”

 

	Name
    of Selling Stockholder	 	Number
                                         of Shares of Common Stock 

        Owned
        Prior to the Offering

	 	 	 

 

    	 	 	 

     

    

 

PLAN
OF DISTRIBUTION

 

We
are registering the shares of common stock issued [upon conversion of shares of preferred stock issued] and/or [upon exercise
of warrants issued] pursuant to the Securities Purchase Agreement to permit the resale of these shares of common stock by the
selling stockholders after the date of this prospectus. We will not receive any of the proceeds from the sale by the selling stockholders
of the shares of common stock. We will bear all fees and expenses incident to our obligation to register the shares of common
stock.

 

The
selling stockholders may sell all or a portion of the shares of common stock held by them and offered hereby [from time to time]
[directly or] through one or more underwriters, broker-dealers or agents. If the shares of common stock are sold through underwriters
or broker-dealers, the selling stockholders will be responsible for underwriting discounts or commissions or agent’s commissions.
The shares of common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of
the sale, at varying prices determined at the time of sale or at negotiated prices. These sales may be effected in transactions,
which may involve crosses or block transactions, pursuant to one or more of the following methods:

 

	●	on
    any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;
	●	in
    the over-the-counter market;
	●	in
    transactions otherwise than on these exchanges or systems or in the over-the-counter market;
	●	through
    the writing or settlement of options, whether such options are listed on an options exchange or otherwise;
	●	ordinary
    brokerage transactions and transactions in which the broker-dealer solicits Holders;
	●	block
    trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block
    as principal to facilitate the transaction;
	●	purchases
    by a broker-dealer as principal and resale by the broker-dealer for its account;
	●	an
    exchange distribution in accordance with the rules of the applicable exchange;
	●	privately
    negotiated transactions;
	●	short
    sales made after the date the Registration Statement is declared effective by the SEC;
	●	broker-dealers
    may agree with a selling security holder to sell a specified number of such shares at a stipulated price per share;
	●	a
    combination of any such methods of sale; and
	●	any
    other method permitted pursuant to applicable law.

 

The
selling stockholders may also sell shares of common stock under Rule 144 promulgated under the Securities Act of 1933, as amended,
if available, rather than under this prospectus. In addition, the selling stockholders may transfer the shares of common stock
by other means not described in this prospectus. If the selling stockholders effect such transactions by selling shares of common
stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions
in the form of discounts, concessions or commissions from the selling stockholders or commissions from Holders of the shares of
common stock for whom they may act as agent or to whom they may sell as principal (which discounts, concessions or commissions
as to particular underwriters, broker-dealers or agents may be in excess of those customary in the types of transactions involved).
In connection with sales of the shares of common stock or otherwise, the selling stockholders may enter into hedging transactions
with broker-dealers, which may in turn engage in short sales of the shares of common stock in the course of hedging in positions
they assume. The selling stockholders may also sell shares of common stock short and deliver shares of common stock covered by
this prospectus to close out short positions and to return borrowed shares in connection with such short sales. The selling stockholders
may also loan or pledge shares of common stock to broker-dealers that in turn may sell such shares.

 

    	 	 	 

     

    

 

The
selling stockholders may pledge or grant a security interest in some or all of the shares of common stock owned by them and, if
they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of
common stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable
provision of the Securities Act amending, if necessary, the list of selling stockholders to include the pledgee, transferee or
other successors in interest as selling stockholders under this prospectus. The selling stockholders also may transfer and donate
the shares of common stock in other circumstances in which case the transferees, donees, pledgees or other successors in interest
will be the selling beneficial owners for purposes of this prospectus.

 

To
the extent required by the Securities Act and the rules and regulations thereunder, the selling stockholders and any broker-dealer
participating in the distribution of the shares of common stock may be deemed to be “underwriters” within
the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer
may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares
of common stock is made, a prospectus supplement, if required, will be distributed, which will set forth the aggregate amount
of shares of common stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents,
any discounts, commissions and other terms constituting compensation from the selling stockholders and any discounts, commissions
or concessions allowed or re-allowed or paid to broker-dealers.

 

Under
the securities laws of some states, the shares of common stock may be sold in such states only through registered or licensed
brokers or dealers. In addition, in some states the shares of common stock may not be sold unless such shares have been registered
or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.

 

There
can be no assurance that any selling stockholder will sell any or all of the shares of common stock registered pursuant to the
registration statement, of which this prospectus forms a part.

 

The
selling stockholders and any other person participating in such distribution will be subject to applicable provisions of the Securities
Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and in each case together with the rules and regulations
thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing
of purchases and sales of any of the shares of common stock by the selling stockholders and any other participating person. To
the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common
stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing may affect the marketability
of the shares of common stock and the ability of any Person to engage in market-making activities with respect to the shares of
common stock.

 

    	 	 	 

     

    

 

We
will pay all expenses of the registration of the shares of common stock pursuant to the registration rights agreement, estimated
to be $[     ] in total, including, without limitation, Securities and Exchange Commission filing fees
and expenses of compliance with state securities or “blue sky” laws; provided, however, a selling stockholder will
pay all underwriting discounts and selling commissions, if any. We will indemnify the selling stockholders against liabilities,
including some liabilities under the Securities Act in accordance with the registration rights agreements or the selling stockholders
will be entitled to contribution. We may be indemnified by the selling stockholders against civil liabilities, including liabilities
under the Securities Act that may arise from any written information furnished to us by the selling stockholder specifically for
use in this prospectus, in accordance with the related registration rights agreements or we may be entitled to contribution.

 

Once
sold under the registration statement, of which this prospectus forms a part, the shares of common stock will be freely tradable
in the hands of persons other than our affiliates.PROVENTION
BIO, INC.

 

VOTING
AGREEMENT

 

This
Voting Agreement (the “Agreement”) is made and entered into
as of April 25, 2017, by and among PROVENTION BIO, INC., a Delaware corporation (the “Company”), and
certain holders of the Company’s Series A Preferred Stock, $0.0001 par value per share (the “Preferred Stock”)
listed on the Schedule of Investors attached as Schedule A hereto (together with any subsequent investors, or transferees,
who become parties hereto as “Investors” pursuant to Subsections 11.8 or 11.9 below, the “Investors”),
and those certain holders of the Company’s common stock, par value $0.0001 per share (the “Common Stock”)
listed on the Schedule of Key Holders attached as Schedule B hereto (together with any subsequent shareholders, or any
transferees, who become parties hereto as “Key Holders” pursuant to Subsections 11.8 or 11.9 below,
the “Key Holders”). Each of the Investors and the Key Holders are individually referred to herein as a “Shareholder”
and are collectively referred to herein as the “Shareholders”. Each of the Shareholders and the Company are
sometimes individually referred to herein as a “Party” and are sometimes collectively referred to herein as
the “Parties.” The Company’s Board of Directors is referred to herein as the “Board.”

 

RECITALS

 

WHEREAS,
the Company and the Investors have entered into a Securities Purchase Agreement, dated April 25, 2017 (the “Securities
Purchase Agreement”), pursuant to which, among other things, the Company has agreed to issue and sell to the Investors,
and the Investors have agreed to purchase, up to [●] shares of the Company’s Preferred Stock;

 

WHEREAS,
as a condition to the willingness of the Investors to enter into the Securities Purchase Agreement and to consummate the transactions
contemplated thereby, the Investors have required that the Shareholders agree, and in order to induce the Investors to enter into
the Securities Purchase Agreement, each Shareholder has agreed, to enter into this Agreement with respect to all of the shares
of Preferred Stock and/or Common Stock now owned and which may hereafter be acquired by the Shareholder and any other securities,
if any, which the Shareholder is currently entitled to vote, or after the date hereof, becomes entitled to vote, at any meeting
of shareholders of the Company.

 

NOW,
THEREFORE, in consideration of the mutual promises and covenants set forth herein, and certain other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1.       Agreement
to Vote. Each Shareholder hereby agrees on behalf of itself and any permitted transferee or assignee of any shares of Preferred
Stock and/or Common Stock held by such Shareholder, to hold all of such shares Preferred Stock, Common Stock and any other securities
of the Company subsequently acquired by such Shareholder in the future (and any securities of the Company issued with respect
to, upon conversion of, or in exchange or substitution for such shares or other securities) (hereinafter collectively referred
to as the “Shares”) subject to, and to vote the Shares at a regular or special meeting of shareholders (or
by written consent) in accordance with, the provisions of this Agreement.

 

    	 	 	 

     

    

 

2.       Voting
Provisions Relating to the Board.

 

2.1       Board
Size. Each Shareholder shall vote, or cause to be voted, at a regular or special meeting of shareholders (or by written consent)
all Shares owned by such Shareholder (or as to which such Shareholder has voting power) to ensure that the size of the Board shall
be set and remain at five (5) directors.

 

2.2       Election
of Directors.

 

(a)       In
any election of the members of the Board (each member a “Director” and collectively, the “Directors”),
the Shareholders agree to vote, or cause to be voted, at any regular or special meeting of shareholders (or by written consent)
all Shares then owned by such Shareholder (or as to which such Shareholder then has voting control) to elect the following individuals
as Directors on the Board:

 

(i)       Subject
to Subsection 2.2(d), one individual to be designated by Johnson & Johnson Innovation - JJDC, Inc. (“JJDC”),
who shall initially be Francisco Leon;

 

(ii)       one
individual to be designated jointly by Ashleigh Palmer and Francisco Leon (together, the “Founders”), who shall
initially be Ashleigh Palmer;

 

(iii)       two
individuals to be designated by MDB Capital Group, LLC (“MDB”), who shall initially be Cameron Gray and Anthony
DiGiandomenico; and

 

(iv)       one
individual not otherwise an Affiliate (as defined below) of the Company or any Shareholder who is mutually acceptable to the Founders,
JJDC and MDB.

 

For
purposes of this Agreement, an individual, firm, corporation, partnership, association, limited liability company, trust or any
other entity (collectively, a “Person”) shall be deemed an “Affiliate” of another Person
who, directly or indirectly, controls, is controlled by or is under common control with such Person, including, without limitation,
any general partner, managing member, officer or director of such Person or any venture capital fund now or hereafter existing
that is controlled by one or more general partners or managing members of, or shares the same management company with, such Person.

 

(b)       In
the absence of any nomination from the Persons with the right to designate a Director as specified above, the Director or Directors
previously nominated by such Persons and then serving shall be reelected if still eligible to serve as provided herein.

 

    	 	2	 

     

    

 

(c)       To
the extent that the application of Subsection 2.2(a) above shall result in the designation of less than all of the authorized
Directors, then any remaining vacancies shall be filled by individuals nominated and elected by the shareholders of the Company
entitled to vote thereon in accordance with, and pursuant to, the Amended and Restated Certificate of Incorporation of the Company
(the “Certificate of Incorporation”).

 

(d)       Notwithstanding
anything to the contrary set forth in Subsection 2.2(a)(i), during the period commencing on the date of this Agreement
and ending immediately following the closing of a Qualified Equity Financing (as defined below), the Director designated by JJDC
pursuant to Subsection 2.2(a)(i) shall be an individual not otherwise an Affiliate of JJDC nor a current or former employee
of JJDC.

 

A
“Qualified Equity Financing” shall mean the Company’s first equity financing completed after the date
hereof pursuant to which the Company sells shares of its capital stock, to one or more investors, for an aggregate amount of gross
cash proceeds that, when added to the aggregate cash proceeds received by the Company in connection with all other equity financings
completed after the date hereof, exceeds $5,000,000.

 

2.3       Removal;
Vacancies. Any Director appointed to the Board pursuant to Subsection 2.2(a) above may be removed from the Board only
upon the vote or written consent of the Shareholder(s) (or other Persons) entitled to designate such Director. Any vacancy created
by the resignation, removal or death of a Director elected pursuant to Subsection 2.2 above shall be filled pursuant to
the provisions of Subsection 2.2.

 

2.4       Further
Actions. All Shareholders agree to execute any written consents required to perform the obligations of this Agreement, and
the Company agrees, at the request of any party entitled to designate Directors, to call a special meeting of stockholders for
the purpose of electing Directors.

 

2.5       No
Liability for Election of Recommended Directors. Other that as set forth in Subsection 2.6 below, no Shareholder, nor any
Affiliate, officer, director, shareholder, partner, employee or agent of any such Shareholder, makes any representation or warranty
as to the fitness or competence of the designee of such Shareholder hereunder to serve as a Director by virtue of such Shareholder’s
execution of this Agreement or by the act of such Shareholder in voting for such designee pursuant to this Agreement. No Shareholder,
nor any Affiliate, officer, director, shareholder, partner, employee or agent of any such Shareholder, shall have any liability
as a result of designating an individual for election as a Director for any act or omission by such designated individual in his
or her capacity as a Director of the Company, nor shall any Shareholder have any liability as a result of voting for any such
designee in accordance with the provisions of this Agreement.

 

2.6       No
“Bad Actor” Designees. Each Person with the right to designate or participate in the designation of a Director
as specified above hereby represents and warrants to the Company that, to such Person’s knowledge, none of the “bad
actor” disqualifying events described in Rule 506(d)(1)(i)-(viii) promulgated under the Securities Act of 1933, as amended
(the “Securities Act”) (each, a “Disqualification Event”), is applicable to such Person’s
initial designee named above except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3)
is applicable. Any Director designee to whom any Disqualification Event is applicable, except for a Disqualification Event as
to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable, is hereinafter referred to as a “Disqualified Designee”.
Each Person with the right to designate or participate in the designation of a Director as specified above hereby covenants and
agrees (A) not to designate or participate in the designation of any Director designee who, to such Person’s knowledge,
is a Disqualified Designee and (B) that in the event such Person becomes aware that any individual previously designated by any
such Person is or has become a Disqualified Designee, such Person shall as promptly as practicable take such actions as are necessary
to remove such Disqualified Designee from the Board and designate a replacement designee who is not a Disqualified Designee.

 

    	 	3	 

     

    

 

3.       Drag
Along Right.

 

3.1       Definitions.
A “Sale of the Company” shall mean either: (a) a transaction or series of related transactions in which a Person,
or a group of related Persons, acquires from shareholders of the Company shares representing more than fifty percent (50%) of
the outstanding voting power of the Company (a “Stock Sale”) or (b) a transaction that qualifies as a “Liquidation
Event” as defined in the Certificate of Incorporation.

 

3.2       Actions
to be Taken. In the event that the Board and the holders of a majority of the then outstanding shares of Preferred Stock (the
“Requisite Parties”) approve a Sale of the Company, then each Shareholder, with respect to all Shares which
it own(s) or over which it otherwise exercises voting or dispositive authority, hereby agrees:

 

(a)       in
the event such Sale of the Company is to be brought to a vote at a shareholder meeting, after receiving proper notice of any meeting
of shareholders of the Company, to be present, in person or by proxy, as a holder of Shares, at such meeting and be counted for
the purposes of determining the presence of a quorum at such meetings and to vote (in person, by proxy or by action by written
consent, as applicable) all Shares in favor of, and to adopt, such Sale of the Company and in opposition to any and all other
proposals that could reasonably be expected to delay or impair the ability of the Company to consummate such Sale of the Company;

 

(b)       to
refrain from exercising any dissenters’ rights or rights of appraisal under applicable law at any time with respect to such
Sale of the Company;

 

(c)       to
execute and deliver all related documentation and take such other action in support of the Sale of the Company as shall reasonably
be requested by the Company or the Requisite Parties;

 

(d)       if
the Sale of the Company is structured as a Stock Sale, to sell the same proportion of his, her or its Shares as is being sold
by the Requisite Parties, and, except as permitted in Subsection 3.3 below, on the same terms and conditions as the Requisite
Parties;

 

(e)       not
to deposit, and to cause their Affiliates not to deposit, except as provided in this Agreement, any Shares owned by such Shareholder
or Affiliate in a voting trust or subject any such Shares to any arrangement or agreement with respect to the voting of such Shares,
unless specifically requested to do so by the acquirer in connection with the Sale of the Company; and

 

    	 	4	 

     

    

 

(f)       if
the consideration to be paid in exchange for the Shares pursuant to this Section 3 includes any securities and due receipt
thereof by any Shareholder would require under applicable law (i) the registration or qualification of such securities or of any
Person as a broker or dealer or agent with respect to such securities or (ii) the provision to any Shareholder of any information
other than such information as a prudent issuer would generally furnish in an offering made solely to “accredited investors”
as defined in Regulation D promulgated under the Securities Act, the Company may cause to be paid to any such Shareholder in lieu
thereof, against surrender of the Shares which would have otherwise been sold by such Shareholder, an amount in cash equal to
the fair value (as determined in good faith by the Company) of the securities which such Shareholder would otherwise receive as
of the date of the issuance of such securities in exchange for the Shares.

 

3.3       Exceptions.
Notwithstanding the foregoing, a Shareholder will not be required to comply with Subsection 3.2 above in connection with
any proposed Sale of the Company (the “Proposed Sale”) unless:

 

(a)       any
representations and warranties to be made by such Shareholder in connection with the Proposed Sale are limited to representations
and warranties related to authority, ownership and the ability to convey title to such Shareholder’s Shares, including,
without limitation, representations and warranties that (i) the Shareholder holds all right, title and interest in and to the
Shares such Shareholder purports to hold, free and clear of all liens and encumbrances, (ii) the obligations of the Shareholder
in connection with the transaction have been duly authorized, if applicable, (iii) the documents to be entered into by the Shareholder
have been duly executed by the Shareholder and delivered to the acquiror and are enforceable against the Shareholder in accordance
with their respective terms and (iv) neither the execution and delivery of documents to be entered into in connection with the
transaction, nor the performance of the Shareholder’s obligations thereunder, will cause a breach or violation of the terms
of any agreement, law or judgment, order or decree of any court or governmental agency by which such Shareholder is subject or
bound;

 

(b)       the
Shareholder shall not be liable for the inaccuracy of any representation or warranty made by any other Person in connection with
the Proposed Sale, other than the Company;

 

(c)       the
liability for indemnification, if any, of such Shareholder in the Proposed Sale and for the inaccuracy of any representations
and warranties made by the Company in connection with such Proposed Sale, is several and not joint with any other Person, and
is pro rata in proportion to the amount of consideration paid to such Shareholder in connection with such Proposed Sale (in accordance
with the provisions of the Certificate of Incorporation);

 

(d)       liability
shall be limited to such Shareholder’s applicable share (determined based on the respective proceeds payable to each Shareholder
in connection with such Proposed Sale in accordance with the provisions of the Certificate of Incorporation) of a negotiated aggregate
indemnification amount that applies equally to all Shareholders but that in no event exceeds the amount of consideration otherwise
payable to such Shareholder in connection with such Proposed Sale, except with respect to claims related to fraud by such Shareholder,
the liability for which need not be limited as to such Shareholder;

 

    	 	5	 

     

    

 

(e)       upon
the consummation of the Proposed Sale, (i) each holder of each class or series of the Company’s stock will receive the same
form of consideration for their shares of such class or series as is received by other holders in respect of their shares of such
same class or series of stock, (ii) each holder of a series of Preferred Stock will receive the same amount of consideration per
share of such series of Preferred Stock as is received by other holders in respect of their shares of such same series, (iii)
each holder of Common Stock will receive the same amount of consideration per share of Common Stock as is received by other holders
in respect of their shares of Common Stock, and (iv) unless the holders of a majority of Preferred Stock elect otherwise by written
notice given to the Company at least thirty (30) days prior to the effective date of any such Proposed Sale, the aggregate consideration
receivable by all holders of the Preferred Stock and Common Stock shall be allocated among the holders of Preferred Stock and
Common Stock on the basis of the relative liquidation preferences to which the holders of each respective series of Preferred
Stock and the holders of Common Stock are entitled in a Liquidation Event (assuming for this purpose that the Proposed Sale is
a Liquidation Event) in accordance with the Certificate of Incorporation in effect immediately prior to the Proposed Sale; and

 

(f)       subject
to Subsection 3.3(e) above, requiring the same form of consideration to be available to the holders of any single class
or series of capital stock, if any holders of a series or class of capital stock of the Company are given an option as to the
form and amount of consideration to be received as a result of the Proposed Sale, all holders of such series or class of capital
stock will be given the same option; provided, however, that nothing in this Subsection 3.3(f) shall entitle
any holder to receive any form of consideration that such holder would be ineligible to receive as a result of such holder’s
failure to satisfy any condition, requirement or limitation that is generally applicable to the Company’s shareholders.

 

4.       Transfer
of Voting Rights by JJDC. Concurrently with the execution of this Agreement, JJDC has executed and delivered an Irrevocable
Voting Proxy and Power of Attorney, dated the date hereof, pursuant to which it has assigned its voting rights with respect to
its Shares to the Company’s Chief Executive Officer, subject to the terms, conditions and limitations set forth therein.

 

5.       Legend
on Share Certificates. Each certificate representing any Shares shall be endorsed by the Company with a legend reading substantially
as follows:

 

“THE
SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING AGREEMENT (A COPY OF WHICH MAY BE OBTAINED UPON WRITTEN REQUEST FROM THE ISSUER),
AND BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND
BY ALL THE PROVISIONS OF SAID VOTING AGREEMENT.”

 

    	 	6	 

     

    

 

6.       Bad
Actor Representations and Covenants. Each Shareholder hereby represents and warrants to the Company that such Shareholder
has not been convicted of any of the felonies or misdemeanors or has been subject to any of the orders, judgments, decrees or
other conditions set forth in Rule 506(d) of Regulation D promulgated under the Securities Act, which are excerpted in their current
form on Exhibit B. Each Shareholder covenants to provide immediate written notice to the Company in the event such Shareholder
is convicted of any felony or misdemeanor or becomes subject to any order, judgment, decree or other condition set forth in Rule
506(d) of Regulation D promulgated under the Securities Act, as may be amended from time to time. Each Shareholder covenants to
provide such information to the Company as the Company may reasonably request in order to comply with the disclosure obligations
set forth in Rule 506(e) of Regulation D promulgated under the Securities Act, as may be amended from time to time.

 

7.       Vote
to Increase Authorized Common Stock. Each Shareholder agrees to vote or cause to be voted all Shares owned by such Shareholder,
or over which such Shareholder has voting control, from time to time and at all times, in whatever manner as shall be necessary
to increase the number of authorized shares of Common Stock from time to time to ensure that there will be sufficient shares of
Common Stock available for conversion of all of the shares of Preferred Stock outstanding at any given time.

 

8.       Covenant
of the Company. The Company will not, by any voluntary action, avoid or seek to avoid the observance or performance of any
of the terms to be performed hereunder by the Company.

 

9.       Remedies.

 

9.1       Grant
of Proxy and Power of Attorney; No Conflicting Agreements. Each Shareholder hereby constitutes and appoints as the proxies
of such Shareholder, and hereby grants a power of attorney, to (a) the President of the Company and (b) a shareholder or other
Person designated by the Board, and each of them, with full power and substitution, with respect to the matters set forth herein,
and hereby authorizes each of them to represent and to vote, if and only if such Shareholder (i) fails to vote or (ii) attempts
to vote (whether by proxy, in person or by written consent) in a manner which is inconsistent with the terms of this Agreement,
all of such Shareholder’s Shares in the manner provided in Sections 2 and 3 hereof, and hereby authorizes
each of them to take any action necessary to give effect to the provisions contained in Sections 2 and 3 hereof.
Each of the proxy and power of attorney granted in this Subsection 9.1 is given in consideration of the agreements and
covenants of the Parties in connection with the transactions contemplated by this Agreement and, as such, each is coupled with
an interest and shall be irrevocable until this Agreement terminates pursuant to its terms or this Section 9 is amended
to remove such grant of proxy and power of attorney in accordance with Subsection 11.5 hereof. Except as set forth in Section
4 above, each Shareholder hereby revokes any and all previous proxies or powers of attorney with respect to such Shareholder’s
Shares and shall not hereafter, until this Agreement terminates pursuant to its terms or this Section 9 is amended to remove
this provision in accordance with Subsection 11.5 hereof, grant, or purport to grant, any other proxy or power of attorney
with respect to such Shares, deposit any of such Shares into a voting trust or enter into any agreement (other than this Agreement),
arrangement or understanding with any Person, directly or indirectly, to vote, grant any proxy or power of attorney or give instructions
with respect to the voting of any of such Shares, in each case, with respect to any of the matters set forth in this Agreement.

 

    	 	7	 

     

    

 

9.2       Specific
Enforcement. It is agreed and understood that monetary damages would not adequately compensate an injured Party for the breach
of this Agreement by any other Party, that this Agreement shall be specifically enforceable, and that any breach or threatened
breach of this Agreement shall be the proper subject of a temporary or permanent injunction or restraining order. Further, each
Party hereto waives any claim or defense that there is an adequate remedy at law for such breach or threatened breach.

 

9.3       Remedies
Cumulative. All remedies, either under this Agreement or by law or otherwise afforded to any Party, shall be cumulative and
not alternative.

 

10.       Execution
by the Company. The Company, by its execution in the space provided below, agrees that it will cause the certificates evidencing
the Shares issued after the date hereof to bear the legend required by Section 5 hereof, and it shall supply, free of charge,
a copy of this Agreement to any holder of a certificate evidencing shares of capital stock of the Company upon written request
from such holder to the Company at its principal office. The Parties hereto do hereby agree that the failure to cause the certificates
evidencing the Shares to bear the legend required by Section 5 hereof and/or failure of the Company to supply, free of
charge, a copy of this Agreement, as provided under this Section 9, shall not affect the validity or enforcement of this
Agreement.

 

11.       Miscellaneous.

 

11.1       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.

 

11.2       Notices.
Any notices required or permitted to be given under the terms of this Agreement shall be sent by certified or registered mail
(return receipt requested) or delivered personally or by courier (including a recognized overnight delivery service) or by facsimile
transmission and shall be effective five (5) days after being placed in the mail, if mailed by regular United States mail, or
upon receipt, if delivered personally or by courier (including a recognized overnight delivery service) or by facsimile transmission,
with printed confirmation of receipt, in each case addressed to a party. The addresses for such communications shall be:

 

If
to the Company:

 

Provention
Bio, Inc.

110
Old Driftway Lane

Lebanon,
NJ 08833

Attention:
Mr. Ashleigh Palmer

Telephone:
(908) 428-9136

Facsimile:
(908) 428-9136

 

With
a copy (for informational purposes only) to:

 

Lowenstein
Sandler LLP,

1251
Avenue of the Americas

New
York, NY 10020,

Telephone:
(973) 597-6394

Facsimile:
(973) 597-6395

email:
mlerner@lowenstein.com.

Attention:
Michael Lerner, Esq.

 

    	 	8	 

     

    

 

And

 

If
to any Shareholder, at the address for such Shareholder on the records of the Company, which may include the address and fax number
set forth immediately below such Shareholder’s name on the counterpart signature pages hereto, or to such other address
and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given
to each other party five (5) days prior to the effectiveness of such change.

 

Written
confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an
image of the first page of such transmission or (C) provided by a courier or overnight courier service shall be rebuttable evidence
of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service.

 

11.3       Term.
This Agreement shall terminate and be of no further force or effect upon the earliest to occur of: (a) the consummation of the
Company’s sale of its Common Stock or other securities in a firm commitment or best efforts underwritten public offering
pursuant to a registration statement under the Securities Act (other than a registration statement relating either to sale of
securities to employees of the Company pursuant to its stock option, stock purchase or similar plan or a SEC Rule 145 transaction),
or (b) the consummation of a Sale of the Company and distribution of proceeds to or escrow for the benefit of the Shareholders
in accordance with the Certificate of Incorporation, provided that the provisions of Section 3 hereof will continue
after the closing of any Sale of the Company to the extent necessary to enforce the provisions of Section 3 with respect
to such Sale of the Company.

 

11.4       Manner
of Voting. The voting of Shares pursuant to this Agreement may be effected in person, by proxy, by written consent or in any
other manner permitted by applicable law.

 

11.5       Amendments
and Waivers. Any term hereof may be amended and the observance of any term hereof may be waived (either generally or in a
particular instance and either retroactively or prospectively) only with the written consent of (a) the Company, (b) the holders
of a majority of the then outstanding Shares held by the Key Holders and (c) the holders of a majority of the then outstanding
Shares held by the Investors. Any amendment or waiver so effected shall be binding upon all the Parties hereto and all Parties’
respective successors and permitted assigns, whether or not any such Party, successor or assign entered into or approved such
amendment or waiver. Notwithstanding the foregoing:

 

    	 	9	 

     

    

 

(i)       any
provision hereof may be waived by the waiving Party on such Party’s behalf, without the written consent of any other Party;

 

(ii)       this
Agreement may not be amended or terminated and the observance of any term of this Agreement may not be waived with respect to
any Investor or Key Holder without the written consent of such Investor or Key Holder unless such amendment, termination or waiver
applies to all Investors or Key Holders, as the case may be, in the same fashion;

 

(iii)       Subsections
2.2(a)(i), 2.2(a)(iv), 2.2(d), 3.2 and 11.5(iii) of this Agreement shall not be amended or waived
without the written consent of JJDC;

 

(iv)       
Subsections 2.2(a)(ii), 2.2(a)(iv), 3.2 and 11.5(iv) of this Agreement shall not be amended or waived
without the written consent of the Founders; and

 

(v)       Subsections
2.2(a)(iii), 2.2(a)(iv), 3.2 and 11.5(v) of this Agreement shall not be amended or waived without the
written consent of MDB

 

The
Company shall give prompt written notice of any amendment, termination, or waiver hereunder to any Party that did not consent
in writing thereto.

 

11.6       Stock
Splits, Stock Dividends, etc. In the event of any issuance of shares of the Company’s voting securities hereafter to
any of the Parties hereto (including, without limitation, in connection with any stock split, stock dividend, recapitalization,
reorganization or the like), such shares shall become subject to this Agreement and shall be endorsed with the legend set forth
in Section 5.

 

11.7       Severability.
If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement 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. The Parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

    	 	10	 

     

    

 

11.8       Binding
Effect on Transferees, Heirs, Successors and Assigns. In addition to any restriction on transfer that may be imposed by any
other agreement by which any Party hereto may be bound, this Agreement shall be binding upon the Parties, their respective transferees,
heirs, successors and assigns; provided that for any such transfer to be deemed effective, the transferee shall have executed
and delivered to the Company in advance an Adoption Agreement substantially in the form attached hereto as Exhibit A (the
“Adoption Agreement”). The Company shall not record any transfer of Shares on its books or issue a new certificate
representing any such Shares unless and until such transferee shall have complied with the terms of this Subsection 11.8.
Upon the execution and delivery of an Adoption Agreement by a transferee reasonably acceptable to the Company, such transferee
shall be deemed to be a Party hereto as if such transferee were the transferor and such transferee’s signature appeared
on the signature pages hereto and shall be deemed to be an Investor and Shareholder, or Key Holder and Shareholder, as applicable.
By its execution hereof or of any Adoption Agreement, each of the Shareholders appoints the Company as its attorney-in-fact for
the purpose of executing any Adoption Agreement which may be required to be delivered hereunder. Nothing in this Agreement, express
or implied, is intended to confer upon any party other than the Parties hereto or their respective transferees, heirs, successors
and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

 

11.9       Additional
Parties.

 

(a)       Notwithstanding
Subsection 11.5, no consent shall be necessary to add additional Investors as signatories to this Agreement, provided
that such Investors have (i) purchased Preferred Stock pursuant to the subsequent closing provisions of Subsection 1.3
of the Purchase Agreement and (ii) executed and delivered either (A) an Adoption Agreement substantially in the form attached
hereto as Exhibit A or (B) a counterpart signature page hereto agreeing to be bound by and subject to the terms of this
Agreement as a Shareholder hereunder. In either event, each such Person thereafter shall be deemed an Investor and Shareholder
for all purposes under this Agreement.

 

(b)       
In the event that after the date of this Agreement, the Company enters into an agreement with any Person to issue shares of capital
stock to such Person (other than to a purchaser of Preferred Stock described in Subsection 11.9(a) above), following which
such Person would hold Shares representing one percent (1%) or more of the Company’s then outstanding capital stock (treating
for this purpose all shares of Common Stock issuable upon exercise or conversion of all then outstanding options, warrants or
convertible securities (whether or not then exercisable or convertible) as outstanding), then (i) the Company shall cause such
Person, as a condition precedent to the issuance of such capital stock, to become a party to this Agreement by executing an Adoption
Agreement substantially in the form attached hereto as Exhibit A, agreeing to be bound by and subject to the terms of this
Agreement as a Key Holder and Shareholder hereunder and thereafter such Person shall be deemed a Key Holder and Shareholder for
all purposes under this Agreement and (ii) notwithstanding Subsection 10.5, no consent shall be necessary to add such Person as
a signatory to this Agreement.

 

11.10       Governing
Law. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Delaware without
regard to the choice of law principles thereof. Each of the Parties hereto irrevocably submits to the exclusive jurisdiction of
the courts of the State of Delaware and the United States District Court for the District of Delaware for the purpose of any suit,
action, proceeding or judgment relating to or arising out of this Agreement and the transactions contemplated hereby. Service
of process in connection with any such suit, action or proceeding may be served on each Party hereto anywhere in the world by
the same methods as are specified for the giving of notices under this Agreement. Each of the Parties hereto irrevocably consents
to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court. Each Party
hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and
irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT
AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

    	 	11	 

     

    

 

11.11       Entire
Agreement. This Agreement (including the Schedules and Exhibits hereto) constitutes the entire agreement among the Parties
hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein and therein. This Agreement and the instruments referenced herein and therein
supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof.

 

11.12       Counterparts;
Facsimile. This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of
which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party
hereto by facsimile transmission or other electronic transmission (such as but not limited to an email attachment in PDF format)
of a copy of this Agreement bearing the signature of the party so delivering this Agreement. This Agreement may also be executed
by electronic or facsimile signature.

 

11.13       Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon
any breach or default of any other Party under this Agreement, shall impair any such right, power or remedy of such non-breaching
or non-defaulting Party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence thereto, 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 previously 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 provision or condition 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 shall be cumulative and
not alternative.

 

11.14       Further
Assurances. At any time or from time to time after the date hereof, the Parties agree to cooperate with each other, and at
the request of any other Party, to execute and deliver any further instruments or documents and to take all such further action
as the other Party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated
hereby and to otherwise carry out the intent of the Parties hereunder.

 

11.15       Aggregation.
All Shares held or acquired by a Shareholder and/or its Affiliates shall be aggregated together for the purpose of determining
the availability of any rights under this Agreement, and such Affiliates may apportion such rights as among themselves in any
manner they deem appropriate.

 

[Signature
Pages to Follow]

 

    	 	12	 

     

    

 

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

 

	 	PROVENTION
    BIO, INC.
	 	 	 
	 	By:	
	 	Name: 	Ashleigh Palmer
	 	Title:	President & Chief
    Executive Officer

 

[Signature
Page to Voting Agreement for Provention Bio, Inc.]

 

    	 	 	 

     

    

 

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

 

	 	INVESTOR:
	 	 	 
	 	[Name]:	 
	 	 
	 	 	 
	 	By:
    	             
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address:	 

 

[Signature
Page to Voting Agreement for Provention Bio, Inc.]

 

    	 	 	 

     

    

 

SCHEDULE
A

 

SCHEDULE
OF INVESTORS

 

Johnson
& Johnson Innovation - JJDC, Inc.

 

    	 	 	 

     

    

 

SCHEDULE
B

 

SCHEDULE
OF KEY HOLDERS

 

MDB
Capital Group, LLC

Ashleigh
Palmer

Francisco
Leon

 

    	 	 	 

     

    

 

EXHIBIT
A

 

ADOPTION
AGREEMENT

 

This
Adoption Agreement (“Adoption Agreement”) is executed by the undersigned (the “Holder”)
pursuant to the terms of that certain Voting Agreement dated as of ______ __, 201_ (the “Agreement”) by and
among the Provention Bio, Inc. (the “Company”) and certain of its shareholders. Capitalized terms used but
not defined herein shall have the respective meanings ascribed to such terms in the Agreement. By the execution of this Adoption
Agreement, the Holder agrees as follows:

 

1.       Acknowledgment.
Holder acknowledges that Holder is acquiring certain shares of the capital stock of the Company (the “Stock”)
or options, warrants or other rights to acquire such Stock, for one of the following reasons (Check the appropriate box):

 

	 	[  ]	as
    a transferee of Shares from a party in such party’s capacity as an “Investor” bound by the Agreement,
    and after such transfer, Holder shall be considered an “Investor” and a “Shareholder”
    for all purposes of the Agreement.
	 	 	 
	 	[  ]	as
    a transferee of Shares from a party in such party’s capacity as a “Key Holder” bound by the Agreement,
    and after such transfer, Holder shall be considered a “Key Holder” and a “Shareholder”
    for all purposes of the Agreement.
	 	 	 
	 	[  ]	as
    a new Investor in accordance with Subsection 11.9(a) of the Agreement, in which case Holder will be an “Investor”
    and a “Shareholder” for all purposes of the Agreement.
	 	 	 
	 	[  ]	in
    accordance with Subsection 11.9(b) of the Agreement, as a new party who is not a new Investor, in which case Holder will be
    a “Key Holder” and a “Shareholder” for all purposes of the Agreement.

 

2.       Agreement.
Holder (a) agrees that the Stock acquired by Holder shall be bound by and subject to the terms of the Agreement, and (b) hereby
adopts the Agreement with the same force and effect as if Holder were originally a Party thereto.

 

3.       Notice.
Any notice required or permitted by the Agreement shall be given to Holder at the address listed beside Holder’s signature
below.

 

    	 	E-1	 

     

    

 

EXECUTED
AND DATED this ______ day of _________________, 20___.

 

	 	HOLDER:
	 	 	 
	 	By:
    	      
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address:
    	 
	 	 	 
	 	Fax:
    	 

 

Accepted
and Agreed:

 

COMPANY

 

	By:
    		 
	Name:
    	 	 
	Title:
    	 	 

 

    	 	E-2	 

     

    

 

EXHIBIT
B

 

RULE
506(D) BAD ACTOR REPRESENTATIONS

 

No
Shareholder:

 

(i)
Has been convicted, within ten years before such sale (or five years, in the case of issuers, their predecessors and affiliated
issuers), of any felony or misdemeanor:

 

(A)
In connection with the purchase or sale of any security;

 

(B)
Involving the making of any false filing with the Commission; or

 

(C)
Arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser
or paid solicitor of purchasers of securities;

 

(ii)
Is subject to any order, judgment or decree of any court of competent jurisdiction, entered within five years before such sale,
that, at the time of such sale, restrains or enjoins such person from engaging or continuing to engage in any conduct or practice:

 

(A)
In connection with the purchase or sale of any security;

 

(B)
Involving the making of any false filing with the Commission; or

 

(C)
Arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser
or paid solicitor of purchasers of securities;

 

(iii)
Is subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a
state authority that supervises or examines banks, savings associations, or credit unions; a state insurance commission (or an
agency or officer of a state performing like functions); an appropriate federal banking agency; the U.S. Commodity Futures Trading
Commission; or the National Credit Union Administration that:

 

(A)
At the time of such sale, bars the person from:

 

(
1 ) Association with an entity regulated by such commission, authority, agency, or officer;

 

(
2 ) Engaging in the business of securities, insurance or banking; or

 

(
3 ) Engaging in savings association or credit union activities; or

 

(B)
Constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive
conduct entered within ten years before such sale;

 

(iv)
Is subject to an order of the Commission entered pursuant to section 15(b) or 15B(c) of the Securities Exchange Act of 1934 (15
U.S.C. 78 o (b) or 78 o -4(c)) or section 203(e) or (f) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3(e)
or (f)) that, at the time of such sale:

 

(A)
Suspends or revokes such person’s registration as a broker, dealer, municipal securities dealer or investment adviser;

 

(B)
Places limitations on the activities, functions or operations of such person; or

 

(C)
Bars such person from being associated with any entity or from participating in the offering of any penny stock;

 

    	 	E-3	 

     

    

 

(v)
Is subject to any order of the Commission entered within five years before such sale that, at the time of such sale, orders the
person to cease and desist from committing or causing a violation or future violation of:

 

(A)
Any scienter-based anti-fraud provision of the federal securities laws, including without limitation section 17(a)(1) of the Securities
Act of 1933 (15 U.S.C. 77q(a)(1)), section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78j(b)) and 17 CFR 240.10b-5,
section 15(c)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78 o (c)(1)) and section 206(1) of the Investment Advisers
Act of 1940 (15 U.S.C. 80b-6(1)), or any other rule or regulation thereunder; or

 

(B)
Section 5 of the Securities Act of 1933 (15 U.S.C. 77e).

 

(vi)
Is suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities
exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent
with just and equitable principles of trade;

 

(vii)
Has filed (as a registrant or issuer), or was or was named as an underwriter in, any registration statement or Regulation A offering
statement filed with the Commission that, within five years before such sale, was the subject of a refusal order, stop order,
or order suspending the Regulation A exemption, or is, at the time of such sale, the subject of an investigation or proceeding
to determine whether a stop order or suspension order should be issued; or

 

(viii)
Is subject to a United States Postal Service false representation order entered within five years before such sale, or is, at
the time of such sale, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the
United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false
representations.

 

    	 	E-4

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