Document:

pierisregistrationrights

                                                           EXECUTION VERSION                        REGISTRATION RIGHTS AGREEMENT                This Registration Rights Agreement (this “Agreement”) is made and entered into as of   November 2, 2019, by and among Pieris Pharmaceuticals, Inc., a Nevada corporation (the “Company”),   and the several signatories hereto.                This Agreement is made pursuant to the Securities Purchase Agreement (the “Purchase   Agreement”), dated as of the date hereof between the Company and each purchaser signatory thereto   (each a “Purchaser” and collectively, the “Purchasers”).                NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this  Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby  acknowledged, the Company and each of the Holders agree as follows:          1.    Definitions.  Capitalized terms used and not otherwise defined herein that are defined in   the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement. As used in   this Agreement, the following terms shall have the following meanings:                “Advice” has the meaning set forth in Section 6(d).                “Affiliate” has the meaning set forth in the Purchase Agreement.                “Agreement” has the meaning set forth in the Preamble.                “Business Day” has the meaning set forth in the Purchase Agreement.                “Closing Date” has the meaning set forth in the Purchase Agreement.                “Commission” has the meaning set forth in the Purchase Agreement.                “Common Stock” has the meaning set forth in the Purchase Agreement.                “Company” has the meaning set forth in the Preamble.                “Effective Date” means the date that the Registration Statement filed pursuant to   Section 2(a) is first declared effective by the Commission.                “Effectiveness Deadline” means, with respect to the Initial Registration Statement or the   New Registration Statement, the 90th calendar day following the Closing Date (or, in the event the  Commission reviews and has written comments to the Initial Registration Statement or the New  Registration Statement, the 120th calendar day following the Closing Date); provided, however, that if the   Company is notified by the Commission that the Initial Registration Statement or the New Registration   Statement will not be reviewed or is no longer subject to further review and comments, the Effectiveness   Deadline as to such Registration Statement shall be the 5th Trading Day following the date on which the   Company is so notified if such date precedes the dates otherwise required above; provided, further, that if   the Effectiveness Deadline falls on a Saturday, Sunday or other day that the Commission is closed for   business, the Effectiveness Deadline shall be extended to the next Business Day on which the   Commission is open for business.                “Effectiveness Period” has the meaning set forth in Section 2(b). 

 

             “Event” has the meaning set forth in Section 2(c).                “Event Date” has the meaning set forth in Section 2(c).                “Exchange Act” has the meaning set forth in the Purchase Agreement.                “Filing Deadline” means, with respect to the Initial Registration Statement required to be   filed pursuant to Section 2(a), the 30th calendar day following the Closing Date; provided, however, that if  the Filing Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business,  the Filing Deadline shall be extended to the next business day on which the Commission is open for  business.                 “Holder” or “Holders” means the holder or holders, as the case may be, from time to   time of Registrable Securities.                “Indemnified Party” has the meaning set forth in Section 5(c).                “Indemnifying Party” has the meaning set forth in Section 5(c).                “Initial Registration Statement” means the initial Registration Statement filed pursuant   to Section 2(a) of this Agreement.                “Liquidated Damages” has the meaning set forth in Section 2(c).                “Losses” has the meaning set forth in Section 5(a).                “New Registration Statement” has the meaning set forth in Section 2(a).                “Person” has the meaning set forth in the Purchase Agreement.                “Principal Market” means the Trading Market on which the Common Stock is primarily   listed on and quoted for trading, which, as of the Closing Date, shall be the Nasdaq Capital Market.                “Preferred Stock” means the Series C Convertible Preferred Stock of the Company, par   value $0.001 per share.                “Proceeding” has the meaning set forth in the Purchase Agreement.                “Prospectus” means the prospectus included in a 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 a 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.                “Purchase Agreement” has the meaning set forth in the Recitals.                “Purchaser” or “Purchasers” has the meaning set forth in the Recitals.                “Registrable Securities” means all of (i) the Shares, (ii) the Warrant Shares and (iii) any   securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar                                          2 

 

event with respect to the foregoing, provided, that the Holder has completed and delivered to the  Company a Selling Stockholder Questionnaire; and provided, further, that with respect to a particular   Holder, such Holder’s Shares and/or Warrant Shares shall cease to be Registrable Securities upon the   earliest to occur of the following: (A) a sale pursuant to a Registration Statement or Rule 144 under the   Securities Act (in which case, only such security sold by the Holder shall cease to be a Registrable   Security); (B) becoming eligible for resale by the Holder under Rule 144 without the requirement for the   Company to be in compliance with the current public information requirement thereunder and without   volume or manner-of-sale restrictions, pursuant to a written opinion letter to such effect, addressed,   delivered and acceptable to the Transfer Agent; or (C) the date that is two years following the Closing   Date.                “Registration Statements” means any one or more registration statements of the   Company filed under the Securities Act that covers the resale of any of the Registrable Securities pursuant   to the provisions of this Agreement (including, without limitation, the Initial Registration Statement, the   New Registration Statement and any Remainder Registration Statements), including (in each case) the   amendments and supplements to such Registration Statements, including pre- and post-effective   amendments thereto, all exhibits and all material incorporated by reference or deemed to be incorporated   by reference in such Registration Statements.                “Remainder Registration Statements” has the meaning set forth in Section 2(a).                “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 having substantially the same effect as such Rule.                “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.                “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.                “SEC Guidance” means (i) any publicly-available written or oral guidance, comments,   requirements or requests of the Commission staff, provided, that any such oral guidance, comments,   requirements or requests are reduced to writing by the Commission and (ii) the Securities Act.                “Securities Act” means the Securities Act of 1933, as amended, and the rules and   regulations promulgated thereunder.                “Selling Stockholder Questionnaire” means a questionnaire in the form attached as   Annex B hereto, or such other form of questionnaire as may reasonably be adopted by the Company from   time to time.                “Shares” means the shares of Common Stock issued or issuable to the Purchasers   pursuant to the Purchase Agreement, including shares of Common Stock issuable upon conversion of the   Preferred Stock.                “Trading Day” means (i) a day on which the Common Stock is listed or quoted and   traded on its Principal Market (other than the OTCMarkets), or (ii) if the Common Stock is not listed on a   Trading Market (other than the OTCMarkets), a day on which the Common Stock is traded in the over-                                          3 

 

the-counter market, as reported by the OTCMarkets, or (iii) if the Common Stock is not quoted on any  Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported  in the “pink sheets” by Pink Sheets LLC (or any similar organization or agency succeeding to its  functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as  set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.                “Trading Market” means whichever of the New York Stock Exchange, the NYSE Mkt,   the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market or the OTC  Bulletin Board on which the Common Stock is listed or quoted for trading on the date in question.                “Warrants” means the Warrants issued pursuant to the Purchase Agreement.                “Warrant Shares” has the meaning set forth in the Purchase Agreement.          2.    Registration.                (a)   On or prior to the Filing Deadline, the Company shall prepare and file with the  Commission a Registration Statement covering the resale of all of the Registrable Securities not already  covered by an existing and effective Registration Statement for an offering to be made on a continuous  basis pursuant to Rule 415 or, if Rule 415 is not available for offers and sales of the Registrable  Securities, by such other means of distribution of Registrable Securities as the Holders may reasonably  specify (the “Initial Registration Statement”). The Initial Registration Statement shall be on Form S-3   (except that if the Company is then ineligible to register for resale the Registrable Securities on Form S-3,   in which case such registration shall be on such other form available to register for resale the Registrable   Securities as a secondary offering) subject to the provisions of Section 2(e) and shall contain (except if   otherwise required pursuant to written comments received from the Commission upon a review of such   Registration Statement) a “Plan of Distribution” section substantially in the form attached hereto as   Annex A (which may be modified to respond to comments, if any, provided by the Commission).                       (i)   Notwithstanding the registration obligations set forth in this  Section 2, in   the event the Commission informs the Company that all of the Registrable Securities cannot, as a result of   the application of Rule 415, be registered for resale as a secondary offering on a single registration   statement or that any Holder must be named as an underwriter in the Registration Statement, the   Company agrees to promptly (x) inform each of the Holders thereof and use its commercially reasonable   efforts to file amendments to the Initial Registration Statement as required by the Commission and/or (y)  withdraw the Initial Registration Statement and file a new registration statement (a “New Registration   Statement”), in either case covering the maximum number of Registrable Securities permitted to be   registered by the Commission, on Form S-1 or such other form available to register for resale the  Registrable Securities as a secondary offering; provided, however, that prior to filing such amendment or  New Registration Statement, the Company shall be obligated to use its commercially reasonable efforts to  advocate with the Commission for the registration of all of the Registrable Securities in accordance with  SEC Guidance, including without limitation, Compliance and Disclosure Interpretation 612.09, in each   case without naming any Holder as an underwriter in the Registration Statement.  The Lead Investor shall   have the right to comment or have their counsel comment on any written submission made to the staff of   Commission (the “Staff”) with respect to any disclosure specifically relating to the Lead Investor. No   such written submission shall be made to the Staff containing disclosure specifically relating to the Lead   Investor to which the Lead Investor’s counsel reasonably objects.                      (ii) Notwithstanding any other provision of this Agreement and subject to the  payment of liquidated damages in Section 2(c), if any SEC Guidance sets forth a limitation of the number  of Registrable Securities permitted to be registered on a particular Registration Statement as a secondary                                          4 

 

 offering without naming any Holder as an underwriter (and notwithstanding that the Company used   commercially reasonable efforts to advocate with the Commission for the registration of all or a greater   number of Registrable Securities), unless otherwise directed in writing by a Holder as to its Registrable   Securities, the Registrable Securities to be registered on such Registration Statement will first be reduced   by the Warrant Shares (applied, in the case that some Warrant Shares may be registered, to the Holders on   a pro rata basis based on the total number of unregistered Warrant Shares held by such Holders) and   second by the Shares (applied, in the case that some Shares may be registered, to the Holders on a pro rata   basis based on the total number of unregistered Shares held by such Holders), subject to a determination   by the Commission that certain Holders must be reduced first based on the number of Registrable   Securities held by such Holders.  In the event the Company amends the Initial Registration Statement or   files a New Registration Statement, as the case may be, under clauses (x) or (y) above, the Company will  use its commercially reasonable efforts to file with the Commission, as promptly as allowed by  Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or  more registration statements on Form S-1 or such other form available to register for resale those  Registrable Securities that were not registered for resale on the Initial Registration Statement, as  amended, or the New Registration Statement (the “Remainder Registration Statements”).  No Holder   shall be named as an “underwriter” in any Registration Statement without such Holder’s prior written   consent.                (b)   The Company shall use its commercially reasonable efforts to cause each  Registration Statement to be declared effective by the Commission as soon as practicable and, with  respect to the Initial Registration Statement or the New Registration Statement, as applicable, no later  than the Effectiveness Deadline (including, with respect to the Initial Registration Statement or the New  Registration Statement, as applicable, filing with the Commission a request for acceleration of  effectiveness in accordance with Rule 461 promulgated under the Securities Act within five (5) Business  Days after the date that the Company is notified (orally or in writing, whichever is earlier) by the  Commission that such Registration Statement will not be “reviewed,” or not be subject to further review  and the effectiveness of such Registration Statement may be accelerated), and, subject to Sections 2(e)  and (f), shall use its commercially reasonable efforts to keep each Registration Statement continuously  effective under the Securities Act for so long as the securities registered for resale thereunder retain their  character as “Registrable Securities”  (the “Effectiveness Period”). The Company shall promptly notify   the Holders via facsimile or electronic mail of the effectiveness of a Registration Statement or any post- effective amendment thereto on or before the 1st Trading Day after the date that the Company   telephonically confirms effectiveness with the Commission. The Company shall, by 9:30 a.m. New York   City time on the first Trading Day after the Effective Date, file a final Prospectus with the Commission,   as required by Rule 424(b).                 (c)   If:  (i) the Initial Registration Statement is not filed with the Commission on or   prior to the Filing Deadline, (ii) the Initial Registration Statement or the New Registration Statement, as   applicable, is not declared effective by the Commission (or otherwise does not become effective) for any   reason on or prior to the Effectiveness Deadline, or (iii) after its Effective Date and except for the reasons   as set forth in Section 3(h), (A) such Registration Statement ceases for any reason (including, without  limitation, by reason of a stop order or the Company’s failure to update the Registration Statement), to  remain continuously effective as to all Registrable Securities included in such Registration Statement or  (B) the Holders are not permitted to utilize the Prospectus therein to resell such Registrable Securities for  any reason (other than due to a change in the “Plan of Distribution” or the inaccuracy of any information  regarding the Holders), in each case, for more than an aggregate of 30 consecutive calendar days or 45  calendar days (which need not be consecutive days) during any 12-month period (other than as a result of  a breach of this Agreement by a Holder or a Holder’s failure to return a Selling Stockholder  Questionnaire within the time period provided by Section 2(d) hereof) (any such failure or breach in  clauses (i) through (iii) above being referred to as an “Event,” and, for purposes of clauses (i) or (ii), the                                          5 

 

 date on which such Event occurs, or for purposes of clause (iii), the date on which such 30 or 45 calendar   day period is exceeded, being referred to as an “Event Date”), then in addition to any other rights the   Holders may have hereunder or under applicable law: (x) within five (5) Business Days after an Event  Date relating to a failure in clause (i) only, the Company shall pay to each Holder an amount in cash, as  liquidated damages and not as a penalty, equal to 1.0% of the aggregate purchase price paid by such  Holder pursuant to the Purchase Agreement for any Registrable Securities held by such Holder on such  Event Date; and (y) on each 30-day anniversary (or pro rata portion thereof) following any Event Date  (including, for the avoidance of doubt, a failure in clause (i), in which case each 30-day anniversary shall   be measured commencing on the 31st day following such Event Date) until the earlier of (1) the applicable  Event is cured or (2) the Registrable Securities are eligible for resale pursuant to Rule 144 without  manner of sale or volume restrictions, the Company shall pay to each Holder an amount in cash, as  liquidated damages and not as a penalty, equal to 1.0% of the aggregate purchase price paid by such  Holder pursuant to the Purchase Agreement for any unregistered Registrable Securities then held by such  Holder. The amounts payable pursuant to the foregoing clauses (x) and (y) are referred to collectively as  “Liquidated Damages.”  The parties agree that (1) the Company will not be liable for Liquidated   Damages under this Agreement with respect to any Warrants or any Warrant Shares (prior to their   issuance), (2) notwithstanding anything to the contrary herein or in the Purchase Agreement, no   Liquidated Damages shall be payable with respect to any period after the expiration of the Effectiveness   Period and in no event shall the aggregate amount of Liquidated Damages payable to a Holder exceed, in   the aggregate, 6% of the aggregate purchase price paid by such Holder pursuant to the Purchase   Agreement and (3) in no event shall the Company be liable in any 30-day period for Liquidated Damages  under this Agreement in excess of 1.0% of the aggregate purchase price paid by the Holders pursuant to  the Purchase Agreement. If the Company fails to pay any Liquidated Damages pursuant to this Section  2(c) in full within 10 Business Days after the date payable, the Company will pay interest thereon at a rate  of 1.0% per month (or such lesser maximum amount that is permitted to be paid by applicable law) to the  Holder, accruing daily from the date such Liquidated Damages are due until such amounts, plus all such  interest thereon, are paid in full. Unless otherwise specified in Section 2(c), the Liquidated Damages  pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the  cure of an Event, except in the case of the first Event Date.  Notwithstanding the foregoing, nothing shall  preclude any Holder from pursuing or obtaining any available remedies at law, specific performance or  other equitable relief with respect to this Section 2(c) in accordance with applicable law.  The Company  shall not be liable for Liquidated Damages under this Agreement as to any Registrable Securities which  are not permitted by the Commission to be included in a Registration Statement due solely to SEC  Guidance from the time that it is determined that such Registrable Securities are not permitted to be  registered until such time as the provisions of this Agreement as to the Remainder Registration  Statements required to be filed hereunder are triggered, in which case the provisions of this Section 2(c)  shall once again apply, if applicable. In such case, the Liquidated Damages shall be calculated to only  apply to the percentage of Registrable Securities which are permitted in accordance with SEC Guidance  to be included in such Registration Statement.  The Effectiveness Deadline for a Registration Statement  shall be extended without default or Liquidated Damages hereunder in the event that the Company’s  failure to obtain the effectiveness of the Registration Statement on a timely basis results from the failure  of a Holder to timely provide the Company with information requested by the Company and necessary to  complete the Registration Statement in accordance with the requirements of the Securities Act (in which  the Effectiveness Deadline would be extended with respect to Registrable Securities held by such  Holder).                (d)   Each Holder agrees to furnish to the Company a completed Selling Stockholder  Questionnaire not more than ten Trading Days following the date of this Agreement. At least five (5)  Trading Days prior to the first anticipated filing date of a Registration Statement for any registration  under this Agreement, the Company will notify each Holder of the information the Company requires  from that Holder other than the information contained in the Selling Stockholder Questionnaire, if any,                                          6 

 

which shall be completed and delivered to the Company promptly upon request and, in any event, within  two Trading Days prior to the applicable anticipated filing date. Each Holder further agrees that it shall  not be entitled to be named as a selling security holder in the Registration Statement or use the Prospectus  for offers and resales of Registrable Securities at any time, unless such Holder has returned to the  Company a completed and signed Selling Stockholder Questionnaire and a response to any requests for  further information as described in the previous sentence. If a Holder of Registrable Securities returns a  Selling Stockholder Questionnaire or a request for further information, in either case, after its respective  deadline, the Company shall use its commercially reasonable efforts to take such actions as are required  to name such Holder as a selling security holder in the Registration Statement or any pre-effective or   post-effective amendment thereto and to include (to the extent not theretofore included) in the   Registration Statement the Registrable Securities identified in such late Selling Stockholder Questionnaire   or request for further information. Each Holder acknowledges and agrees that the information in the   Selling Stockholder Questionnaire or request for further information as described in this Section 2(d) will   be used by the Company in the preparation of the Registration Statement and hereby consents to the   inclusion of such information in the Registration Statement.                (e)   In the event that Form S-3 is not available for the registration of the resale of   Registrable Securities hereunder, the Company shall (i) register the resale of the Registrable Securities on   Form S-1 and (ii) undertake to register the Registrable Securities on Form S-3 promptly after such form is  available, provided that the Company shall maintain the effectiveness of the Registration Statement then  in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has  been declared effective by the Commission.          3.    Registration Procedures.                In connection with the Company’s registration obligations hereunder, the Company shall:                (a)   Not less than five (5) Trading Days prior to the filing of each Registration  Statement and not less than one (1) Trading Day prior to the filing of any related Prospectus or any  amendment or supplement thereto (except for Annual Reports on Form 10-K, and Quarterly Reports on  Form 10-Q and Current Reports on Form 8-K and any similar or successor reports), (i) furnish to the  Holder copies of such Registration Statement, Prospectus or amendment or supplement thereto, as  proposed to be filed, which documents will be subject to the review of such Holder (it being  acknowledged and agreed that if a Holder does not object to or comment on the aforementioned  documents within such five (5) Trading Day or one (1) Trading Day period, as the case may be, then the  Holder shall be deemed to have consented to and approved the use of such documents) and (ii) use  commercially reasonable efforts to cause its officers and directors, counsel and independent registered  public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of  respective counsel to each Holder, to conduct such review. The Company shall not file any Registration  Statement or Prospectus or any amendment or supplement thereto in a form to which a Holder reasonably  objects in good faith, provided that, the Company is notified of such objection in writing within the five  (5) Trading Day or one (1) Trading Day period described above, as applicable.               (b)   (i) Subject to Section 3(h), prepare and file with the Commission such  amendments (including post-effective amendments) and supplements to each Registration Statement and  the Prospectus used in connection therewith as may be necessary to keep such Registration Statement  continuously effective as to the applicable Registrable Securities for its Effectiveness Period; (ii) cause  the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to  the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424; (iii)  respond as promptly as reasonably practicable to any comments received from the Commission with  respect to each Registration Statement or any amendment thereto and, as promptly as reasonably possible,                                          7 

 

provide the Holders true and complete copies of all correspondence from and to the Commission relating   to such Registration Statement that pertains to the Holders as “Selling Stockholders” but not any   comments that would result in the disclosure to the Holders of material and non-public information  concerning the Company; and (iv) comply with the provisions of the Securities Act and the Exchange Act  with respect to the disposition of all Registrable Securities covered by a Registration Statement until such  time as all of such Registrable Securities cease to be Registrable Securities or shall have been disposed of  (subject to the terms of this Agreement) in accordance with the intended methods of disposition by the  Holders thereof as set forth in such Registration Statement as so amended or in such Prospectus as so  supplemented; provided, however, that in the event the Company informs the Holders in writing that it   does not satisfy the conditions specified in Rule 172 and, as a result thereof, the Holders are required to   deliver a Prospectus in connection with any disposition of Registrable Securities, the Company shall   deliver to the Holders a copy of the Prospectus in electronic format and each such Holder shall be   responsible for the delivery of the Prospectus to the Persons to whom such Holder sells any of the   Registrable Securities, and each Holder agrees to dispose of Registrable Securities in compliance with the   “Plan of Distribution” described in the Registration Statement and otherwise in compliance with   applicable federal and state securities laws. In the case of amendments and supplements to a Registration   Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section   3(b)) by reason of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous  report under the Exchange Act, the Company shall have incorporated such report by reference into such  Registration Statement, if applicable, or shall file such amendments or supplements with the Commission  on the same day on which the Exchange Act report which created the requirement for the Company to  amend or supplement such Registration Statement was filed.               (c)   Notify the Holders (which notice shall, pursuant to clauses (iii) through (vi)  hereof, be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes  have been made) as promptly as reasonably practicable via facsimile or electronic mail (and, in the case  of (i)(A) below, not less than one (1) Trading Day prior to such filing) and no later than one (1) Trading  Day following the day: (i)(A) when a Prospectus or any Prospectus supplement or post-effective  amendment to a Registration Statement is proposed to be filed; (B) when the Commission notifies the  Company whether there will be a “review” of such Registration Statement and whenever the Commission  comments in writing on any Registration Statement (in which case the Company shall provide to each of  the Holders true and complete copies of all comments that pertain to the Holders as a “Selling  Stockholder” or to the “Plan of Distribution” and all written responses thereto, but not information that  the Company believes would constitute material and non-public information); and (C) with respect to  each Registration Statement or any post-effective amendment thereto, when the same has become  effective; (ii) of any request by the Commission or any other Federal or state governmental authority for  amendments or supplements to a Registration Statement or Prospectus or for additional information that  pertains to the Holders as “Selling Stockholders” or the “Plan of Distribution”; (iii) of the issuance by the  Commission or any other federal or state governmental authority of any stop order suspending the  effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation  of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to  the suspension of the qualification or exemption from qualification of any of the Registrable Securities for  sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose and (v) of the  occurrence of any event or passage of time that makes the financial statements included in a Registration  Statement ineligible for inclusion therein or any statement made in such Registration Statement or  Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any  material respect or that requires any revisions to such Registration Statement, Prospectus or other  documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will  not contain any untrue statement of a material fact or omit to state any material fact required to be stated  therein or necessary to make the statements therein (in the case of any Prospectus, form of prospectus or  supplement thereto, in light of the circumstances under which they were made), not misleading and (vi) of                                          8 

 

the occurrence or existence of any pending corporate development with respect to the Company that the  Company believes may be material and that, in the determination of the Company, makes it not in the best  interest of the Company to allow continued availability of a Registration Statement or Prospectus,  provided that, any and all such information shall remain confidential to each Holder until such   information otherwise becomes public, unless disclosure by a Holder is required by law; and provided,   further, that notwithstanding each Holder’s agreement to keep such information confidential, each such   Holder makes no acknowledgement that any such information is material, non-public information.                (d)   Use commercially reasonable efforts to avoid the issuance of, or, if issued, obtain   the withdrawal of (i) any order suspending the effectiveness of a Registration Statement, or (ii) any   suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for   sale in any jurisdiction, as soon as practicable.                (e)   If requested by a Holder, furnish to such Holder, without charge, at least one   conformed copy of each Registration Statement and each amendment thereto and all exhibits to the extent   requested by such Person (including those previously furnished or incorporated by reference) promptly   after the filing of such documents with the Commission; provided, that the Company shall have no   obligation to provide any document pursuant to this clause that is available on the Commission’s EDGAR   system.                (f)   Prior to any resale of Registrable Securities by a Holder, use its commercially   reasonable efforts to register or qualify or cooperate with the selling Holders in connection with the   registration or qualification (or exemption from the registration or qualification) of such Registrable   Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within   the United States as any Holder reasonably requests in writing, to keep each registration or qualification   (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or   things reasonably necessary to enable the disposition in such jurisdictions of the Registrable Securities   covered by each Registration Statement; provided, that the Company shall not be required to qualify   generally to do business in any jurisdiction where it is not then so qualified, would subject the Company   to any material tax in any such jurisdiction where it is not then so subject or file a general consent to   service of process in any such jurisdiction.                (g)   If requested by a Holder, cooperate with such Holder to facilitate the timely  preparation and delivery of certificates or book-entry statements representing Registrable Securities to be  delivered to a transferee pursuant to the Registration Statement, which certificates or book entry  statements shall be free, to the extent permitted by the Purchase Agreement, and under law, of all  restrictive legends, and to enable such Registrable Securities to be in such denominations and registered  in such names as any such Holders may reasonably request.               (h)   Following the occurrence of any event contemplated by Section 3(c), as promptly  as reasonably practicable (taking into account the Company’s good faith assessment of any adverse  consequences to the Company and its stockholders of the premature disclosure of such event), prepare a  supplement or amendment, including a post-effective amendment, to the affected Registration Statements  or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated  therein by reference, and file any other required document so that, as thereafter delivered, no Registration  Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state a material  fact required to be stated therein or necessary to make the statements therein (in the case of any  Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they  were made), not misleading. If the Company notifies the Holders in accordance with clauses (iii) through  (vi) of Section 3(c) above to suspend the use of any Prospectus until the requisite changes to such  Prospectus have been made, then the Holders shall suspend use of such Prospectus. The Company will                                          9 

 

 use its commercially reasonable efforts to ensure that the use of the Prospectus may be resumed as   promptly as is practicable. The Company shall be entitled to exercise its right under this Section 3(h) to   suspend the availability of a Registration Statement and Prospectus for a period not to exceed 60 calendar   days (which need not be consecutive days) in any 12-month period without incurring liability for   Liquidated Damages otherwise required pursuant to Section 2(c).                 (i)   The Company may require each selling Holder to furnish to the Company a  certified statement as to (i) the number of shares of Common Stock beneficially owned by such Holder  and any Affiliate thereof, (ii) any Financial Industry Regulatory Authority, Inc. (“FINRA”) affiliations,   (iii) any natural persons who have the power to vote or dispose of the common stock and (iv) any other   information as may be requested by the Commission, FINRA or any state securities commission. During   any periods that the Company is unable to meet its obligations hereunder with respect to the registration   of Registrable Securities because any Holder fails to furnish such information within three (3) Trading   Days of the Company’s request, any Liquidated Damages that are accruing at such time as to such Holder   only shall be tolled and any Event that may otherwise occur solely because of such delay shall be   suspended as to such Holder only, until such information is delivered to the Company; provided,   however, if the failure of the Holder to furnish the required information results the occurrence of an Event   under 2(c), any Liquidated Damages that are accruing at such time shall be tolled and any such Event that   occurs as a result thereof shall be suspended until such time as the Holder furnishes such information.                (j)   The Company shall cooperate with any registered broker through which a Holder  proposes to resell its Registrable Securities in effecting a filing with FINRA pursuant to FINRA Rule  5110 as reasonably requested by any such Holder, and the Company shall pay the filing fee required for  the first such filing within five (5) Business Days of the request therefor.          4.    Registration Expenses. All fees and expenses incident to the Company’s performance of   or compliance with its obligations under this Agreement (excluding any underwriting discounts and   selling commissions and all legal fees and expenses of legal counsel for any Holder) shall be borne by the  Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The  fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration  and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be  made with any Trading Market on which the Common Stock is then listed for trading, (B) with respect to  compliance with applicable state securities or Blue Sky laws (including, without limitation, fees and  disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of  the Registrable Securities and determination of the eligibility of the Registrable Securities for investment  under the laws of such jurisdictions as requested by the Holders) and (C) if not previously paid by the  Company pursuant to Section 3(j) hereof, with respect to any filing that may be required to be made by  any broker through which a Holder intends to make sales of Registrable Securities with FINRA pursuant  to FINRA Rule 5110, so long as the broker is receiving no more than a customary brokerage commission  in connection with such sale), (ii) printing expenses (including, without limitation, expenses of printing  certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is  reasonably requested by the Holders of a majority of the Registrable Securities included in the  Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of  counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance,  and (vi) fees and expenses of all other Persons retained by the Company in connection with the  consummation of the transactions contemplated by this Agreement. In addition, the Company shall be  responsible for all of its internal expenses incurred in connection with the consummation of the  transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of  its officers and employees performing legal or accounting duties), the expense of any annual audit and the  fees and expenses incurred in connection with the listing of the Registrable Securities on any securities                                           10 

 

 exchange as required hereunder. In no event shall the Company be responsible for any underwriting,   broker or similar fees or commissions of any Holder or any legal fees or other costs of the Holders.          5.    Indemnification.                (a)   Indemnification by the Company. The Company shall, notwithstanding any   termination of this Agreement, indemnify and hold harmless each Holder, the officers, directors, agents,   partners, members, managers, stockholders, Affiliates and employees of each of them, each Person who   controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the   Exchange Act) and the officers, directors, partners, members, managers, stockholders, agents and   employees of each such controlling Person, to the fullest extent permitted by applicable law, from and   against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable   costs of preparation and investigation and reasonable attorneys’ fees) and expenses (collectively,   “Losses”), as incurred, that arise out of or are based upon (i) any untrue or alleged untrue statement of a   material fact contained in any Registration Statement, any Prospectus or in any amendment or supplement   thereto (it being understood that the Holder has approved Annex A hereto for this purpose), or arising out   of or relating to any omission or alleged omission to state a material fact required to be stated therein or   necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light of   the circumstances under which they were made) not misleading or (ii) any violation or alleged violation   by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or   regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to the Registration   Statement, except to the extent, but only to the extent that (A) such untrue statements, alleged untrue   statements, omissions or alleged omissions are based solely upon information regarding such Holder   furnished in writing to the Company by such Holder, or to the extent that such information relates to such   Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and   approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or in   any amendment or supplement thereto (it being understood that each Holder has approved Annex A   hereto for this purpose) or (B) in the case of an occurrence of an event of the type specified in Section   3(c)(iii)-(vi), related to the use by a Holder of an outdated or defective Prospectus after the Company has  notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such  Holder of the Advice contemplated and defined in Section 6(d) below, following the receipt of the Advice  the misstatement or omission giving rise to such Loss would have been corrected, or (C) any such Losses  arise out of the Purchaser’s (or any other indemnified Person’s) failure to send or give a copy of the  Prospectus or supplement (as then amended or supplemented), if required pursuant to Rule 172 under the  Securities Act (or any successor rule), to the Persons asserting an untrue statement or alleged untrue  statement or alleged untrue statement or omission or alleged omission at or prior to the written  confirmation of the sale of Registrable Securities to such Person if such statement or omission was  corrected in such Prospectus or supplement. The Company shall notify the Holders promptly of the  institution, threat or assertion of any Proceeding arising from or in connection with the transactions  contemplated by this Agreement of which the Company is aware. Such indemnity shall remain in full  force and effect regardless of any investigation made by or on behalf of an Indemnified Party (as defined  in Section 5(c)) and shall survive the transfer of the Registrable Securities by the Holders.                (b)   Indemnification by Holders. Each Holder shall, severally and not jointly,   indemnify and hold harmless the Company, its directors, officers, agents, stockholders, Affiliates and   employees, each Person who controls the Company (within the meaning of Section 15 of the Securities   Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such   controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as   incurred, arising out of or are based solely upon any untrue or alleged untrue statement of a material fact   contained in any Registration Statement, any Prospectus, or in any amendment or supplement thereto, or   arising out of or relating to any omission or alleged omission of a material fact required to be stated                                          11 

 

 therein or necessary to make the statements therein (in the case of any Prospectus, or supplement thereto,   in light of the circumstances under which they were made) not misleading (i) to the extent, but only to the   extent, that such untrue statements or omissions are based upon information regarding such Holder   furnished in writing to the Company by such Holder expressly for use therein or (ii) to the extent that   such information relates to such Holder or such Holder’s proposed method of distribution of Registrable   Securities and was reviewed and approved in writing by such Holder expressly for use in a Registration   Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such   Prospectus or in any amendment or supplement thereto or (iii) in the case of an occurrence of an event of   the type specified in Section 3(c)(iii)-(vi), to the extent, but only to the extent, related to the use by such   Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that   the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated   in Section 6(d).  In no event shall the liability of any selling Holder hereunder be greater in amount than   the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities   giving rise to such indemnification obligation.                (c)   Conduct of Indemnification Proceedings. If any Proceeding shall be brought or   asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified   Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in   writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the   employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all reasonable   fees and expenses incurred in connection with defense thereof, provided, that the failure of any   Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or   liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by   a court of competent jurisdiction (which determination is not subject to appeal or further review) that such   failure shall have materially and adversely prejudiced the Indemnifying Party.                An Indemnified Party shall have the right to employ separate counsel in any such  Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at  the expense of such Indemnified Party or Parties unless:  (1) the Indemnifying Party has agreed in writing  to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the  defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in  any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties)  include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have  been advised by counsel that a conflict of interest exists if the same counsel were to represent such  Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the  Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying  Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel  shall be at the expense of the Indemnifying Party); provided, that the Indemnifying Party shall not be  liable for the fees and expenses of more than one separate firm of attorneys at any time for all  Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding  effected without its prior written consent, which consent shall not be unreasonably withheld, delayed or  conditioned. No Indemnifying Party shall, without the prior written consent of the Indemnified Party,  effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party,  unless such settlement includes an unconditional release of such Indemnified Party from all liability on  claims that are the subject matter of such Proceeding and such settlement does not include any non- monetary limitation on the actions of any Indemnified Party or any of its affiliates or any admission of  fault or liability on behalf of any such Indemnified Party.               Subject to the terms of this Agreement, all fees and expenses of the Indemnified Party  (including reasonable fees and expenses to the extent incurred in connection with investigating or  preparing to defend such Proceeding in a manner not inconsistent with this Section 5) shall be paid to the                                          12 

 

 Indemnified Party, as incurred, within 20 Trading Days of written notice thereof to the Indemnifying   Party; provided, that the Indemnified Party shall promptly reimburse the Indemnifying Party for that   portion of such fees and expenses applicable to such actions for which such Indemnified Party is finally   judicially determined to not be entitled to indemnification hereunder. 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 Party under this Section 5, except to   the extent that the Indemnifying Party is materially and adversely prejudiced in its ability to defend such   action.                (d)   Contribution. If a claim for indemnification under Section 5(a) or 5(b) is   unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless for any Losses,   then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the   amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is   appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection   with the actions, statements or omissions that resulted in such Losses as well as any other relevant   equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be   determined by reference to, among other things, whether any action in question, including any untrue or   alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been   taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party,   and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent   such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall   be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys’ or   other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent   such party would have been indemnified for such fees or expenses if the indemnification provided for in   this Section 5 was available to such party in accordance with its terms.                The parties hereto agree that it would not be just and equitable if contribution pursuant to  this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not  take into account the equitable considerations referred to in the immediately preceding paragraph.  Notwithstanding the provisions of this Section 5(d), (A) no Holder shall be required to contribute, in the  aggregate, any amount in excess of the amount by which the net proceeds actually received by such  Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any  damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue  statement or omission or alleged omission and (B) no contribution will be made under circumstances  where the maker of such contribution would not have been required to indemnify the Indemnified Party  under the fault standards set forth in this Section 5. No person guilty of fraudulent misrepresentation  (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any  Person who was not guilty of such fraudulent misrepresentation.                The indemnity and contribution agreements contained in this Section 5 are in addition to  any liability that the Indemnifying Parties may have to the Indemnified Parties and are not in diminution  or limitation of the indemnification provisions under the Purchase Agreement.          6.    Miscellaneous.                (a)   Remedies. Subject to the limitations set forth elsewhere in this Agreement, in the   event of a breach by the Company or by a Holder of any of their obligations under this Agreement, each   Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by   law and under this Agreement, including recovery of damages, will be entitled to specific performance of   its rights under this Agreement. The Company and each Holder agree that monetary damages would not  provide adequate compensation for any losses incurred by reason of a breach by it of any of the                                          13 

 

 provisions of this Agreement and hereby further agrees that, in the event of any action for specific   performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.                (b)   No Piggyback on Registrations. Neither the Company nor any of its security   holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company   in a Registration Statement other than the Registrable Securities.                  (c)   Compliance. Each Holder covenants and agrees that it will comply with the   prospectus delivery requirements of the Securities Act as applicable to it (unless an exemption therefrom   is available) in connection with sales of Registrable Securities pursuant to the Registration Statement, and   shall sell the Registrable Securities only in accordance with a method of distribution described in the   Registration Statement                (d)   Discontinued Disposition. By its acquisition of Registrable Securities, the Holder   agrees that, upon receipt of a notice from the Company of the occurrence of any event of the kind   described in Section 3(c)(iii)-(vi), such Holder will forthwith discontinue disposition of such Registrable  Securities under a Registration Statement until it is advised in writing (the “Advice”) by the Company   that the use of the applicable Prospectus (as it may have been supplemented or amended) may be   resumed. The Company will use its commercially reasonable efforts to ensure that the use of the   Prospectus may be resumed as promptly as is practicable. The Company may provide appropriate stop   orders to enforce the provisions of this paragraph.                 (e)   No Inconsistent Agreements. The Company has not entered, as of the date   hereof, nor shall the Company, on or after the date hereof, enter into any agreement with respect to its   securities, that would have the effect of impairing the rights granted to the Holders in this Agreement or   otherwise conflicts with the provisions hereof.                (f)   Amendments and Waivers. The provisions of this Agreement, including the   provisions of this sentence, may not be amended, modified or supplemented, or waived unless the same   shall be in writing and signed by the Company and Holders holding no less that a majority of the then   outstanding Registrable Securities, provided that any party may give a waiver as to itself.   Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a   matter that relates exclusively to the rights of Holders and that does not directly or indirectly affect the   rights of other Holders may be given by Holders of all of the Registrable Securities to which such waiver   or consent relates; provided, however, that the provisions of this sentence may not be amended, modified,   or supplemented except in accordance with the provisions of the immediately preceding sentence.                (g)   Notices. Any and all notices or other communications or deliveries required or   permitted to be provided hereunder shall be delivered as set forth in the Purchase Agreement.                (h)   Successors and Assigns. This Agreement shall inure to the benefit of and be   binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of   each Holder. Nothing in this Agreement, express or implied, is intended to confer upon any party other   than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or   liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. The  Company may not assign its rights (except by merger or in connection with another entity acquiring all or  substantially all of the Company’s assets) or obligations hereunder without the prior written consent of all  the Holders of the then outstanding Registrable Securities. Each Holder may assign its respective rights  hereunder in the manner and to the Persons as permitted under the Purchase Agreement provided in each  case that (i) the Holder agrees in writing with the transferee or assignee to assign such rights and related  obligations under this Agreement, and for the transferee or assignee to assume such obligations, and a                                          14 

 

 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 the name and address of such transferee or assignee and the securities with respect to which such   registration rights are being transferred or assigned, (iii) at or before the time the Company received 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 and (iv) the transferee is an   “accredited investor,” as that term is defined in Rule 501 of Regulation D.                (i)   Execution and Counterparts. This Agreement may be executed in two or more   counterparts, each of which when so executed shall be deemed to be an original and, all of which taken   together shall constitute one and the same Agreement and shall become effective when counterparts have   been signed by each party and delivered to the other party, it being understood that both parties need not   sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e- mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the  party executing (or on whose behalf such signature is executed) with the same force and effect as if such  facsimile or “.pdf” signature were the original thereof.                (j)   Governing Law. All questions concerning the construction, validity, enforcement   and interpretation of this Agreement shall be determined in accordance with the provisions of the   Purchase Agreement.                (k)   Cumulative Remedies. Except as provided herein, the remedies provided herein   are cumulative and not exclusive of any other remedies provided by law.                (l)   Severability. If any term, provision, covenant or restriction of this Agreement is   held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the   terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall   in no way be affected, impaired or invalidated, and the parties hereto shall use their good faith reasonable   efforts to find and employ an alternative means to achieve the same or substantially the same result as that   contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be   the intention of the parties that they would have executed the remaining terms, provisions, covenants and   restrictions without including any of such that may be hereafter declared invalid, illegal, void or   unenforceable.                (m)   Headings. The headings in this Agreement are for convenience only and shall not   limit or otherwise affect the meaning hereof.                                 [Signature pages follow]                                               15 

 

               IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement  as of the date first written above.                                      PIERIS PHARMACEUTICALS, INC.                                       By:  /s/ Stephen S. Yoder                                                         Name: Stephen S. Yoder                                         Title: President and Chief Executive Officer    

 

             IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement  as of the date first written above.                                         HOLDER: Aquilo Capital LP  ____________________________________                                                                               AUTHORIZED SIGNATORY                                                                               By:   /s/ Marc Schneidman                                                             Name: Marc Schneidman                                            Title: Managing Member, Aquilo Capital                                             Management, LLC, General Partner                                         ADDRESS FOR NOTICE                                        c/o:                                                                               Street:                                                                            City/State/Zip:                                                                    Attention:                                                                         Tel:                                                                               Fax:                                                                               Email:                                                                                                   

 

             IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement  as of the date first written above.                                         HOLDER: Biotechnology Value Fund, L.P.  ____________________________________                                                                               AUTHORIZED SIGNATORY                                                                               By:   /s/ Mark Lampert                                                                 Name: Mark Lampert                                            Title: President BVF Inc., GP BVF Partners LP                                         ADDRESS FOR NOTICE                                        c/o:                                                                               Street:                                                                            City/State/Zip:                                                                    Attention:                                                                         Tel:                                                                               Fax:                                                                               Email:                                                                                                                         

 

             IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement  as of the date first written above.                                         HOLDER: Biotechnology Value Fund II, L.P.  ____________________________________                                                                               AUTHORIZED SIGNATORY                                                                               By:   /s/ Mark Lampert                                                                Name: Mark Lampert                                            Title: President BVF Inc., GP BVF Partners LP                                         ADDRESS FOR NOTICE                                        c/o:                                                                               Street:                                                                            City/State/Zip:                                                                    Attention:                                                                         Tel:                                                                               Fax:                                                                               Email:                                                                                                         

 

             IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement  as of the date first written above.                                         HOLDER: Biotechnology Value Trading Fund OS, L.P.  ____________________________________                                                                               AUTHORIZED SIGNATORY                                                                               By:   /s/ Mark Lampert                                                                 Name: Mark Lampert                                            Title: President BVF Inc., GP BVF Partners LP,                                            Sole Member for BVF Partnesr OS, Ltd.                                         ADDRESS FOR NOTICE                                        c/o:                                                                               Street:                                                                            City/State/Zip:                                                                    Attention:                                                                         Tel:                                                                               Fax:                                                                               Email:                                                                                                                                         

 

             IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement  as of the date first written above.                                         HOLDER: MSI BVF SPV, L.L.C.  ____________________________________                                                                               AUTHORIZED SIGNATORY                                                                               By:   /s/ Mark Lampert                                                                 Name: Mark Lampert                                            Title: President BVF Inc., GP BVF Partners LP,                                             Attorney-in-Fact                                        ADDRESS FOR NOTICE                                        c/o:                                                                               Street:                                                                            City/State/Zip:                                                                    Attention:                                                                         Tel:                                                                               Fax:                                                                               Email:                                                                                                   

 

             IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement  as of the date first written above.                                         HOLDER: EcoR1 Capital Fund, LP  ____________________________________                                                                               AUTHORIZED SIGNATORY                                                                               By:   /s/ Oleg Nodelman                                                                Name: Oleg Nodelman                                            Title: Manager, EcoR1 Capital LLC, as GP                                         ADDRESS FOR NOTICE                                        c/o:                                                                               Street:                                                                            City/State/Zip:                                                                    Attention:                                                                         Tel:                                                                               Fax:                                                                               Email:                                                                                                         

 

             IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement  as of the date first written above.                                         HOLDER: EcoR1 Capital Fund Qualified, LP  ____________________________________                                                                               AUTHORIZED SIGNATORY                                                                               By:   /s/ Oleg Nodelman                                                                Name: Oleg Nodelman                                            Title: Manager, EcoR1 Capital LLC, as GP                                         ADDRESS FOR NOTICE                                        c/o:                                                                               Street:                                                                            City/State/Zip:                                                                    Attention:                                                                         Tel:                                                                               Fax:                                                                               Email:                                                                                                   

 

            IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement  as of the date first written above.                                        HOLDER: Samsara BioCapital, L.P.  ____________________________________                                                                            AUTHORIZED SIGNATORY                                       By: Samsara BioCapital GP, LLC                                                                            By:   /s/ Srinivas Akkaraju, MD, PhD                                                  Name: Srinivas Akkaraju, MD, PhD                                           Title: Managing Member                                       ADDRESS FOR NOTICE                                                   c/o:                                                                             Street:                                                                          City/State/Zip:                                                                  Attention:                                                                       Tel:                                                                             Fax:                                                                             Email:                                                                                              9 

 

                IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement  as of the date first written above.                                        HOLDER: CITADEL MULTI-STRATEGY EQUITIES                                      MASTER FUND LTD.                                                                           AUTHORIZED SIGNATORY                                                   By: Citadel Advisors LLC, its portfolio manager                                                                                        By:   /s/ Shellane Mulcahy                                                           Name: Shellane Mulcahy                                           Title: Authorized Signatory                                                    ADDRESS FOR NOTICE                                                   c/o:                                                                             Street:                                                                          City/State/Zip:                                                                  Attention:                                                                       Tel:                                                                             Fax:                                                                             Email:                                                                                                                              

 

                                                                            Annex A                                 PLAN OF DISTRIBUTION        We are registering the shares of Common Stock issued to the selling stockholders and issuable upon   exercise of the warrants issued to the selling stockholders to permit the resale of these shares of Common   Stock by the holders of the shares of Common Stock and warrants from time to time 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 beneficially   owned 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 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  or in transactions otherwise than on these exchanges or systems or in the over-the-counter market and 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. The selling stockholders may use any one or more of the  following methods when selling shares:          •   ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;           •   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;           •   settlement of short sales entered into after the effective date of the registration statement of which             this prospectus is a part;           •   broker-dealers may agree with the selling stockholders to sell a specified number of such shares             at a stipulated price per share;           •   through the writing or settlement of options or other hedging transactions, whether such options             are listed on an options exchange or otherwise;           •   a combination of any such methods of sale; and           •   any other method permitted pursuant to applicable law.         The selling stockholders also may resell all or a portion of the shares in open market transactions in   reliance upon Rule 144 under the Securities Act, as permitted by that rule, or Section 4(a)(1) under the   Securities Act, if available, rather than under this prospectus, provided that they meet the criteria and   conform to the requirements of those provisions.      

 

     Broker-dealers engaged by the selling stockholders may arrange for other broker-dealers to  participate in sales. 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 purchasers of the shares of Common Stock for whom they may act as agent or to  whom they may sell as principal. Such commissions will be in amounts to be negotiated, but, except as  set forth in a supplement to this Prospectus, in the case of an agency transaction will not be in excess of a  customary brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal  transaction a markup or markdown in compliance with FINRA Rule 2121.01.         In connection with sales of the shares of Common Stock or otherwise, the selling stockholders may   enter into hedging transactions with broker-dealers or other financial institutions, 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 if such short sale shall take  place after the date that this Registration Statement is declared effective by the Commission, the selling  stockholders may 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, to the extent  permitted by applicable law. The selling stockholders may also enter into option or other transactions with  broker-dealers or other financial institutions or the creation of one or more derivative securities which  require the delivery to such broker-dealer or other financial institution of shares offered by this  prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this  prospectus (as supplemented or amended to reflect such transaction). Notwithstanding the foregoing, the  selling stockholders have been advised that they may not use shares registered on this registration  statement to cover short sales of our common stock made prior to the date the registration statement, of  which this prospectus forms a part, has been declared effective by the SEC.         The selling stockholders may, from time to time, pledge or grant a security interest in some or all of  the warrants or 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 of 1933, as amended, 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.         The selling stockholders and any broker-dealer or agents participating in the distribution of the  shares of Common Stock may be deemed to be “underwriters” within the meaning of Section 2(11) of the  Securities Act in connection with such sales. In such event, any commissions paid, or any discounts or  concessions allowed to, any such broker-dealer or agent and any profit on the resale of the shares  purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.  Selling Stockholders who are “underwriters” within the meaning of Section 2(11) of the Securities Act  will be subject to the applicable prospectus delivery requirements of the Securities Act including Rule  172 thereunder and may be subject to certain statutory liabilities of, including but not limited to, Sections  11, 12 and 17 of the Securities Act and Rule 10b-5 under the Securities Exchange Act of 1934, as  amended, or the Exchange Act.         Each selling stockholder has informed the Company that it is not a registered broker-dealer and does  not have any written or oral agreement or understanding, directly or indirectly, with any person to  distribute the Common Stock. Upon the Company being notified in writing by a selling stockholder that     

 

 any material arrangement has been entered into with a broker-dealer for the sale of common stock through   a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker   or dealer, a supplement to this prospectus will be filed, if required, pursuant to Rule 424(b) under the   Securities Act, disclosing (i) the name of each such selling stockholder and of the participating broker-  dealer(s), (ii) the number of shares involved, (iii) the price at which such the shares of Common Stock   were sold, (iv) the commissions paid or discounts or concessions allowed to such broker-dealer(s), where  applicable, (v) that such broker-dealer(s) did not conduct any investigation to verify the information set  out or incorporated by reference in this prospectus, and (vi) other facts material to the transaction.         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 shelf registration statement, of which this prospectus forms a part.         Each selling stockholder and any other person participating in such distribution will be subject to   applicable provisions of the Exchange Act and 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 stockholder 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 or entity 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, including, without limitation, Securities and Exchange Commission filing   fees and expenses of compliance with state securities or “blue sky” laws; provided, however, that each   selling stockholder will pay all underwriting discounts and selling commissions, if any and any related   legal expenses incurred by it. We will indemnify the selling stockholders against certain liabilities,   including some liabilities under the Securities Act, in accordance with the registration rights agreement,   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 stockholders specifically for use in this prospectus, in   accordance with the related registration rights agreements, or we may be entitled to contribution.             

 

                                                                          Annex B                           PIERIS PHARMACEUTICALS, INC.                 SELLING STOCKHOLDER NOTICE AND QUESTIONNAIREExhibit

Exhibit 10.1

EMPLOYEE STOCK PURCHASE PLAN
OF JPMORGAN CHASE & CO. 
AMENDED AND RESTATED EFFECTIVE AS OF JANUARY 1, 2019

		
	1.
	PURPOSE

The purposes of the Employee Stock Purchase Plan of JPMorgan Chase & Co. are (i) to serve as an employment incentive and (ii) to encourage stock ownership by Eligible Employees to align their long-term financial interests with those of the Company’s stockholders.  The Plan is not intended to be an employee benefit plan under the Employee Retirement Income Security Act of 1974, as amended, nor qualify as an “employee stock purchase plan” under Section 423 of the Code.
		
	2.
	EFFECTIVE DATE AND DURATION OF PLAN

The Plan became effective as of January 1, 2002, and was approved by stockholders on May 15, 2001.  The Plan is hereby amended and restated effective as of January 1, 2019 to (i) reflect that the Plan is no longer intended to qualify as an “employee stock purchase plan” under Section 423 of the Code and (ii) revise the Plan’s eligibility provisions.  The Plan shall have an indefinite duration.
		
	3.
	DEFINITIONS

3.1 “Offer” means an offer by the Company, the form of which has been approved by the Committee, pursuant to which Eligible Employees may purchase Common Stock under the Plan.

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

3.3  “Closing Date” means the last day of the stated term of an Offer as established by the Committee.

3.4  “Code” means the Internal Revenue Code of 1986, as amended, including any rules and regulations promulgated thereunder and any successor thereto.

3.5  “Committee” means the Compensation and Management Development Committee of the Board or such other committee of the Board, as the Board may specify.

3.6  “Common Stock” means the Common Stock of the Company.

3.7  “Company” means JPMorgan Chase & Co., a Delaware corporation.

3.8  “Compensation” means, unless the Committee determines otherwise, base salary plus any shift differential, or for Eligible Employees in certain sales positions that are paid in part or exclusively on a draw and commission basis, “Compensation” as determined by the Committee from time to time.  “Compensation” does not include any incentive or other awards, bonus payments, overtime payments, or similar distributions or contributions to any employee benefit plan of the Company or any Designated Subsidiary.

3.9 “Designated Subsidiary” means, with respect to any Offer, a Subsidiary that has been designated by the Committee resulting in the Employees of such Designated Subsidiary being eligible to participate with respect to such Offer.

3.10 “Eligible Employees” means those Employees who have been designated by the Committee, in its discretion, in accordance with Section 4 as being eligible to participate in the Plan.

3.11  “Employee” means an individual who is an employee of the Company or a Designated Subsidiary as of the date or dates determined by the Committee.

3.12  “Fair Market Value” as of any given date means, for each share of Common Stock, the average of high and low sale prices of the Common Stock as reported on the New York Stock Exchange (the “NYSE”) composite tape on the applicable date, or, if there are no such sale prices of Common Stock reported on the NYSE composite tape on such date, then the average price of the Common Stock on the last previous day on which high and low sale prices are reported on the NYSE composite tape; provided that notwithstanding the foregoing, the Committee can select such other method of establishing “Fair Market Value” as it deems reasonable and appropriate.

3.13  “Plan” means the Employee Stock Purchase Plan of JPMorgan Chase & Co., as amended from time to time.

3.14  “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations including the Company provided that, on the date of an Offer hereunder, each of the corporations (other than the last corporation in the unbroken chain) owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

3.15  “1934 Act” means the Securities Exchange Act of 1934, as amended, including the rules and regulations promulgated thereunder and any successor thereto.

		
	4.
	ADMINISTRATION

The Committee shall have full and exclusive power to administer and interpret the Plan.  The Committee may determine, from time to time, that the Company shall make Offers to Eligible Employees and the form of acceptance of such Offers.  The Committee’s authority includes, but is not limited to the authority to, from time to time:
(a)  determine whether Offers shall be made under Section 8(a) or 8(b) of the Plan or combination thereof;
(b)  determine which Employees shall be Eligible Employees and which Subsidiaries shall be Designated Subsidiaries and in making such determination may exclude:
		
	•
	Employees who have employed less than 2 years by the Company or a Designated Subsidiary;

		
	•
	Employees whose customary employment is 20 hours or less per week;

		
	•
	Employees whose customary employment is for not more than 5 months in any calendar year;

		
	•
	Employees who are highly compensated employees within the meaning of Section 414(q) of the Code; and

		
	•
	Employees who are employed by the Company or a Designated Subsidiary outside of the United States.

		
	•
	

(c)  prescribe and modify the form and provisions of the Offers and the method of delivery and acceptance;

(d)  decide questions that may arise with respect to the interpretation, construction or application of the Plan or any Offer;

(e)  amend, suspend or terminate the Plan, in accordance with the provisions of Section 20;

(f)  adopt and amend such administrative rules, regulations, procedures and guidelines governing the Plan and the Offers as it may deem necessary in its discretion;

(g)  establish all other terms, conditions, restrictions and limitations applicable to Offers, including but not limited to those relating to an Eligible Employee’s retirement, death, disability, leave of absence or any other termination of employment; and

(h)  establish the terms, conditions, limitations and restrictions that will apply to Eligible Employees, if any, working outside of the United States, including where necessary to comply with local laws, rules, regulations and policies.

The Committee shall have the power to correct any defect, supply any omission or clarify any inconsistency in the Plan and/or in any Offer and to take such actions and make such administrative determinations that the Committee deems appropriate in its discretion.  Any decision of the Committee in the administration of the Plan, as described herein, shall be final, binding and conclusive on all parties concerned, including the Company, its stockholders, subsidiaries and all Employees.

The Committee may at any time delegate its responsibilities regarding the administration of the Plan to another committee or to one or more officers of the Company.  Such delegations need not be in writing.
No member of the Committee shall be personally liable for any action or determination made with respect to the Plan, except for his or her own willful misconduct.
		
	5.
	ELIGIBILITY

		
	(a)
	  Only Eligible Employees may be granted an Offer under the Plan.

		
	(b)
	  No Eligible Employee may accept an Offer (nor may an Offer be made) if such Eligible

 Employee, immediately after the Offer is made, owns stock having five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any Subsidiary.  For this purpose, the rules of Section 424(d) of the Code shall apply in determining the stock ownership of an Eligible Employee.  For these purposes, stock that may be purchased by an Eligible Employee under an outstanding Offer shall be treated as owned by the Eligible Employee.

		
	6.
	COMMON STOCK

		
	(a)
	  The stock subject to purchase pursuant to Offers shall be shares of Common Stock that have been authorized but unissued, or have been previously issued and reacquired by the Company, or both.  Subject to adjustment in accordance with the provisions of Section 16, the aggregate number of shares of Common Stock that may be purchased by Eligible Employees pursuant to Offers under the Plan shall not exceed 30 million shares.

		
	(b)
	  In the event that any Offer expires or is terminated for any reason, any shares of Common Stock that were the subject of such Offer but were not purchased may be subject to another Offer under this Plan.

		
	7.
	NUMBER OF SHARES AN ELIGIBLE EMPLOYEE MAY PURCHASE

		
	(a)
	  The Committee may offer to Eligible Employees an option to purchase up to a certain number of shares of Common Stock as shall have an aggregate purchase price not in excess of (i) a specified percentage (not to exceed 100%) of each Eligible Employee’s Compensation or (ii) an aggregate purchase price expressed in U.S. dollars, in each case, as determined by the Committee.

		
	(b)
	  No Eligible Employee may purchase shares of Common Stock pursuant to any Offer or Offers, including those made under any qualified employee stock purchase plan of the Company and/or its Subsidiaries, that would permit such Eligible Employee to purchase shares of Common Stock with an aggregate Fair Market Value in excess of twenty-five thousand dollars ($25,000) (determined at the date of grant designated in the Offer) for each calendar year in which any such Offer with such Eligible Employee is outstanding at any time.  Any Offer which causes such total to exceed such limit shall be null and void to the extent of such excess.

		
	8.
	OFFERS TO PURCHASE COMMON STOCK

Offers to purchase Common Stock may be made on terms and conditions established by the Committee, subject to the limitations set forth in either Section (a) or (b) below:
		
	(a)
	  Fixed Price Offerings.  The purchase price for a share of Common Stock shall be no less than eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the date of the Offer, and each such Offer shall have a stated term, as established by the Committee, not to exceed twenty-seven (27) months.

		
	(b)
	  Variable Price Offerings.  The purchase price for a share of Common Stock shall be no less than eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the date of purchase, and each Offer shall have a stated term, as established by the Committee, not to exceed five (5) years.

The foregoing shall not preclude an Offer that includes both Section (a) or (b) above, subject to the twenty-seven month limitation.

		
	9.
	ELECTION TO PARTICIPATE

An Eligible Employee’s acceptance of an offer to purchase shares of Common Stock shall be evidenced as specified by the Committee, including by authorizing payroll deductions.
		
	10.
	PAYROLL DEDUCTIONS

		
	(a)
	  By authorizing payroll deductions by a date specified by the Committee, an Eligible Employee will have accepted the terms and conditions of the Offer and will have authorized the Company or the Designated Subsidiary, to deduct per pay period, as specified by the Eligible Employee, an amount not more than nor less than the minimum set forth in an Offer from his or her Compensation commencing on the date indicated in such Offer.  Such amount shall be credited to a Plan account.  Subject to rules and administrative guidelines as the Committee may establish from time to time, an Eligible Employee may decrease the amount of his or her payroll deductions during the Offering Period.

(b)  The Committee may specify that the funds in the Eligible Employee’s Plan account be credited with interest.

		
	11.
	PAYMENT OF PURCHASE PRICE

Shares of Common Stock purchased under the Plan shall be paid for with the amount held in the Plan account on behalf of the Eligible Employee, including accrued interest (if any).  If specified by the Committee in the Offer, an Eligible Employee may (i) provide additional funds, if necessary, to purchase the full number of shares of Common Stock specified by the Offer or (ii) use shares of Common Stock owned by the Eligible Employee for at least six (6) months to purchase the full number of shares of Common Stock specified by the Offer.
		
	12.
	DATE OF PURCHASE

Each Offer shall provide that the shares of Common Stock to be purchased thereunder will be purchased on the Closing Date provided for in the Offer.  If the Committee so determines, Offers also may permit the Eligible Employee to purchase shares of Common Stock thereunder at such earlier dates and on such terms and conditions as may be determined by the Committee, subject to the requirements of Section 409A of the Code.
		
	13.
	EMPLOYEE’S PURCHASE DIRECTIONS

		
	(a)
	  On the Closing Date, each Eligible Employee will purchase shares of Common Stock, and the amount held in the Plan account on behalf of the Eligible Employee, including any accrued interest, shall be applied to the purchase price without further authorization, but only if the Fair Market Value on the Closing Date is equal to or higher than the purchase price.  If the Fair Market Value on the Closing Date is lower than the purchase price, the amount held in the Plan account on behalf of the Eligible Employee, including any accrued interest, will, as the Committee may specify, be returned to such Eligible Employee or shall be retained to be used in connection with a new Offer.

(b)  An Eligible Employee may purchase fewer than all of the shares covered by an Offer in the manner specified by the Committee.

		
	14.
	TERMINATION OF OFFER

An Eligible Employee may, at any time on or before the Closing Date, terminate an Offer in its entirety in a manner specified by the Committee.  Upon such termination, the Company shall cause the amount held on behalf of such Eligible Employee in the Plan account, including any accrued interest, to be paid to such Eligible Employee and further payroll deductions shall cease within a reasonable period thereafter.
		
	15.
	TERMINATION OF EMPLOYMENT

The Committee shall determine the terms, conditions, restrictions and limitations applicable to an Offer in the event of an Eligible Employee’s retirement, death, disability, leave of absence or any other termination of employment.
		
	16.
	RECAPITALIZATION

The aggregate number, kind and class of shares of Common Stock that may be purchased by Eligible Employees pursuant to Offers, the number, kind and class of shares covered by each Offer, and the purchase price per share as established in accordance with each such Offer all may be equitably adjusted, as determined by the Committee, due to any changes in the Common Stock resulting from any stock split, combination or exchange of equity securities, merger, consolidation, re-

capitalization, reorganization, divestiture or other distribution (other than ordinary cash dividends) of assets to stockholders, any other subdivision or consolidation of shares or other capital adjustment, or the payment of a stock dividend or other increase or decrease in such shares.
		
	17.
	ASSIGNABILITY

No Offer may be assigned or transferred except by will or by the laws of descent and distribution.
		
	18.
	RIGHTS AS A STOCKHOLDER

An Eligible Employee shall have no rights as a stockholder with respect to shares of Common Stock covered by an Offer until the date the Eligible Employee becomes the holder of record of such shares.  No adjustment will be made for dividends or other rights for which the record date is prior to such date of purchase.
		
	19.
	COMPLIANCE WITH SECTION 409A OF THE CODE

All Offers entered into and all transactions that occur under this Plan are intended to comply with all applicable requirements of Section 409A of the Code (“Section 409A”), and, with respect to persons subject to Section 16 of the 1934 Act, with the conditions of Rule 16b-3 of the 1934 Act, and shall be construed and interpreted in accordance with such intent.  To the extent an Offer is subject to Section 409A, the Offer shall be granted or exercised in a manner that will comply with Section 409A, including the final regulations and other guidance issued with respect thereto, except as otherwise determined by the Committee.  Any provision of the Plan that would cause an Offer or the exercise thereof to fail to satisfy Section 409A shall be amended to comply with Section 409A on a timely basis, which amendment may be made on a retroactive basis, in accordance with the final regulations and guidance issued under Section 409A.  Notwithstanding the foregoing, the Company shall have no liability to an Eligible Employee or any other party if an Offer granted under the Plan that is intended to be exempt from or compliant with Section 409A is not so exempt or compliant or for any action taken by the Committee with respect thereto.
		
	20.
	AMENDMENT AND TERMINATION

The Committee may from time to time amend, suspend, or terminate the Plan in whole or in part or amend any and all Offers granted under the Plan to the extent permitted by law.  However, no such action of the Committee may be taken without the approval of the Board and/or the stockholders, if Board and/or stockholder approval would be required under then applicable law.
		
	21.
	TAX WITHHOLDING

Any amounts to be paid or shares to be delivered to any Eligible Employee under the Plan shall be reduced by any sums required by law to be withheld by the Company for payment of taxes, unless the Committee specifies another method of satisfying such taxes.
		
	22.
	GOVERNING LAW

The Plan and all Offers shall be construed in accordance with and governed by the laws of the State of New York.
		
	23.
	EMPLOYMENT AT WILL

This document is neither a contract nor a guarantee of continued employment for any definite period of time.  An Employee’s employment is always on an at-will basis.

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