Document:

Warrant, dated Oct. 2, 1998, issued to Jesse Hansen & Co.

 EXHIBIT 4.02 
  
 THIS WARRANT AND THE SECURITIES TO BE ISSUED UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “ACT”),AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED. 
  
 WARRANT TO PURCHASE A
MAXIMUM OF 
 700,000 SHARES OF COMMON STOCK OF 
 DESIGN WITHIN REACH, INC. 
 October 2, 1998 (the “Effective Date”) 
  
 This certifies that JESSE HANSEN & Co.
(“Holder”) is entitled to purchase from DESIGN WITHIN REACH, INC. (the “Company”) a maximum of 700,000 fully paid and nonassessable shares of the Company’s common stock, no
par value (the “Common Stock”), for cash at a price of $1.50 per share (the “Warrants”) (the purchase price specified above is referred to as the “Purchase Price”)
prior October 1, 2004 (the “Expiration Date”) upon surrender to the Company at its principal office (or at such other location as the Company may advise Holder in writing) of this Warrant properly endorsed with the
Subscription Form attached hereto duly filled in and signed and, if applicable, upon payment in cash or by check of the applicable Purchase Price for the number of shares for which this Warrant is being exercised determined in accordance with the
provisions hereof. This Warrant is being delivered to Holder in connection with that Agreement dated the date hereof between the Company and Holder (the “Agreement”). The Purchase price and the number of shares purchasable
hereunder are subject to adjustment as provided in Section 3 of this Warrant. 
  
 This Warrant is subject to the following terms and conditions: 
  

	1.	EXERCISE; ISSUANCE OF CERTIFICATES; PAYMENT FOR SHARES.

  
 1.1 Exercise. 
  
 (a) The purchase rights set forth in this Warrant are
exercisable by the Holder, in whole or in part, at any time, or from time to time, prior to the expiration of the appropriate Expiration Date, by tendering to the Company at its principal office a notice of exercise in the form attached hereto as
Exhibit A (the “Notice of Exercise”), duly completed and executed. Promptly upon receipt of the Notice of Exercise and the payment of the purchase price in accordance with the terms set forth below, the Company
shall issue to the Holder a certificate for the number of purchased shares. 
  

 (b) The Exercise Price may be paid at the Holder’s election either (i) by
cash or check, or (ii) by surrender of Warrants (“Net Issuance”) as determined below. If the Holder elects the Net Issuance method, the Company will issue Common Stock in accordance with the following formula: 
  

			
	 	  	X = Y(A-B)
	 	  	            A

  

							
	 Where:
	  	X	  	=	  	the number of shares of Common Stock to be issued to the Holder.
				
	 	  	Y	  	=	  	the number of shares of Common Stock requested to be exercised under this Warrant.
				
	 	  	A	  	=	  	the fair market value of one (1) share of Common Stock (at the date of such calculation).
				
	 	  	B	  	=	  	the Exercise Price (as adjusted to the date of such calculation).

  
 For purposes of the above calculation,
fair market value of one share of Common Stock shall be determined by the Company’s Board of Directors in good faith; provided, however, that where there is a public market for the Common Stock, the fair market value per share
shall be the product of (i) the average of the closing prices of the Common Stock quoted on The Nasdaq National Market System (or similar system) or on any exchange on which the Common Stock is listed, whichever is applicable, over the twenty-one
(21) day period ending three (3) days before the day the current fair market value is being determined and (ii) the number of shares of Common Stock into which each share of Common Stock is convertible at the time of such exercise. 
  
 (c) Upon partial exercise by either cash or Net Issuance, upon
surrender of this Warrant the Company shall promptly issue an amended Warrant representing the remaining number of shares purchasable hereunder. All other terms and conditions of such amended Warrant shall be identical to those contained herein,
including, but not limited to, the Effective Date. 
  
 (d)
The right to purchase Common Stock under this Warrant shall be subject to the following purchase option (the “Purchase Option”), which shall be exercisable by the Company in the event that Holder resigns or is terminated as
the Company’s financial advisor pursuant to the terms of that engagement letter dated October 2, 1998 between the Company and Holder: 
  
 (i) on October 2, 1998 (the “Repurchase Date”), the Company shall have the right to purchase one-third of the Warrants from
Holder for $0.01 per share of Common Stock underlying such Warrants, which purchase option shall decrease in equal installments over the thirty-six (36) months immediately following the Repurchase Date so that the Purchase Option shall terminate on
that date which is thirty-six (36) months following the Repurchase Date; and 
  
 (ii) on the Repurchase Date, the Company shall have the right to purchase one-third of the Warrants from Holder for $0.01 per share of Common Stock underlying such Warrants, which purchase option shall decrease
in equal installments 

  

 
over the forty-eight (48) months immediately following the Repurchase Date Date so that the Purchase Option shall terminate on that date which is forty-eight
(48) months following the Repurchase Date. 
  
 The Purchase Option shall terminate
in the event of: (1) a Change of Control (as defined herein) or (2) an initial public offering of the Common Stock under the Securities Act of 1933, as amended. A “Change of Control” shall mean a merger or consolidation of the Company with
or into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s securities outstanding immediately after such merger, consolidation or other reorganization is
owned by persons who were not shareholders of the Company immediately prior to the merger, consolidation or reorganization. A transaction shall not constitute a Change of Control if its sole purpose is to change the state of the Company’s
incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
  
 1.2 General. Shares of Common Stock purchased under this Warrant will
be and are deemed to be issued to Holder as the record owner of such shares as of the close of business on the date on which this Warrant is surrendered, properly endorsed, the completed and executed Subscription Form delivered and, if applicable,
payment made for such shares. Certificates for the shares of Common Stock so purchased, together with any other securities or property to which Holder is entitled upon such exercise, will be delivered to Holder by the Company at the Company’s
expense within five business days after the rights represented by this Warrant have been so exercised. In case of a purchase of less than all the shares that may be purchased under this Warrant, the Company will cancel this Warrant and execute and
deliver a new Warrant of like tenor for the balance of the shares purchasable under this Warrant surrendered upon such purchase to Holder within the same period of time. Each stock certificate delivered will be in such denominations of Common Stock
as may be requested by Holder and will be registered in the name of Holder. 
  
 1.3 Right of First Refusal. If Holder proposes to sell or transfer this Warrant or any Common Stock then Holder shall promptly give written notice (the “Notice”) the Company at
least thirty (30) days prior to the closing of such sale or transfer. The Notice shall describe in reasonable detail the proposed sale or transfer including, without limitation, the portion of this Warrant or number of shares Common Stock to be sold
or transferred, the nature of such sale or transfer, the consideration to be paid, and the name and address of each prospective purchaser or transferee. The Company shall have the right, exercisable upon written notice to Holder within fifteen (15)
days after the Notice, to purchase such Common Stock on the same terms and conditions; provided, however, in the event that the Company declines to exercise such right, Holder may sell such Common Stock on the terms described in the Notice
for a period of ninety days thereafter. 
  

	2.	SHARES TO BE FULLY PAID; RESERVATION OF SHARES.

  
 All shares of Common Stock issued upon the
exercise of this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and nonassessable and free from all preemptive rights of any stockholder and free of all taxes, liens and charges with respect to the issue thereof. During
the period within which this Warrant may be exercised, the Company will at all times have authorized and reserved, for the purpose of issue or transfer upon exercise of the subscription rights evidenced by this Warrant, a sufficient number of shares
of authorized but unissued Common Stock, or other securities and property, when and as required to provide for the exercise of the rights represented by this Warrant. The Company will take all such action as may be necessary to ensure that such
shares of Common Stock may be issued as provided herein without violation of any applicable law or regulation; provided, however, that the Company will not be required to effect a registration under federal or state securities laws with
respect to such exercise. The Company will not take any action that would result in any adjustment of the Purchase Price if the total number of shares of Common Stock issuable after such action upon exercise of all outstanding warrants, together
with all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon exercise of all options and upon the conversion of all convertible securities then outstanding, would exceed the total number of shares of Common
Stock then authorized by the Company’s Articles of Incorporation. 
  

	3.	ADJUSTMENT OF PURCHASE PRICE AND NUMBER OF SHARES.

  
 The Purchase Price and the number of shares
purchasable upon the exercise of this Warrant will be subject to adjustment from time to time upon the occurrence of certain events described in this Section 3. Upon each adjustment of the Purchase Price, Holder will thereafter be entitled to
purchase, at the Purchase Price resulting from such adjustment, the number of shares obtained by multiplying the Purchase Price in effect immediately prior to such adjustment by the number of shares purchasable pursuant hereto immediately prior to
such adjustment, and dividing the product thereof by the Purchase Price resulting from such adjustment. 
  
 3.1 Subdivision or Combination of Stock. If the Company at any time subdivides its outstanding shares of Common Stock into a greater number of
shares, the Purchase Price in effect immediately prior to such subdivision will be proportionately reduced, and conversely, if the outstanding shares of Common Stock of the Company are combined into a smaller number of shares, the Purchase Price in
effect immediately prior to such combination will be proportionately increased. 
  
 3.2 Dividends in Common Stock, Other Stock, Property, Reclassification. If at any time or from time to time holders of Common Stock (or any shares of stock or other securities at the time receivable upon the
exercise of this Warrant) receive or become entitled to receive, without payment therefor, 
  
 (a) Common Stock or any shares of stock or other securities that are at any time directly or indirectly convertible into or exchangeable for Common Stock, or any rights or options to subscribe for, purchase or
otherwise acquire any of the foregoing by way of dividend or other distribution, 
  

 (b) any cash paid or payable otherwise than as a cash dividend, or 
  
 (c) Common Stock or additional stock or other securities or property
(including cash) by way of spinoff, split-up, reclassification, combination of shares or similar corporate rearrangement (other than (1) shares of Common Stock issued as a stock split, adjustments in respect of which will be covered by the terms of
Section 3.1 or (2) an event for which adjustment is otherwise made pursuant to Section 3.4), 
  
 then and in each such case, Holder will, upon the exercise of this Warrant, be entitled to receive, in addition to the number of shares of Common Stock receivable thereupon, and without payment of any additional
consideration therefor, the amount of stock and other securities and property (including cash in the cases referred to in clauses (b) and (c) above) that Holder would hold on the date of such exercise had it been Holder of record of such Common
Stock as of the date on which holders of Common Stock received or became entitled to receive such shares or all other additional stock and other securities and property. 
  
 3.3 Reorganization, Reclassification, Consolidation, Merger or Sale. If any capital reorganization of the capital
stock of the Company, or any consolidation or merger of the Company with another corporation, or the sale of all or substantially all of its assets to another corporation is effected in such a way that holders of Common Stock are entitled to receive
stock, securities, or other assets or property, then, as a condition of such reorganization, reclassification, consolidation, merger or sale, lawful and adequate provisions will be made whereby Holder will thereafter have the right to purchase and
receive (in lieu of the shares of Common Stock immediately theretofore purchasable and receivable upon the exercise of this Warrant) such shares of stock, securities or other assets or property as may be issued or payable with respect to or in
exchange for a number of outstanding shares of such Common Stock equal to the number of shares of such stock immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby; provided, however, that
in the event the value of the stock, securities or other assets or property (determined in good faith by the Board) issuable or payable with respect to one share of Common Stock immediately theretofore purchasable and receivable upon the exercise of
the rights represented hereby is in excess of the Purchase Price hereof effective at the time of the merger and securities received in such reorganization, if any, are publicly traded, then this Warrant will expire unless exercised prior to the
reorganization. In any reorganization described above, appropriate provision will be made with respect to the rights and interests of Holder of this Warrant to the end that the provisions hereof (including, without limitation, provisions for
adjustments of the Purchase Price and of the number of shares purchasable and receivable upon the exercise of this Warrant) will thereafter be applicable, as nearly as may be, in relation to any shares of stock, securities or assets thereafter
deliverable upon the exercise hereof. The Company will not effect any such consolidation, merger or sale unless, prior to the consummation thereof, the successor corporation (if other than the Company) resulting from such consolidation or the
corporation purchasing such assets will assume by written 

  

 
instrument, executed and mailed or delivered to Holder, the obligation to deliver to Holder such shares of stock, securities or assets as, in accordance with
the foregoing provisions, Holder may be entitled to purchase. 
  
 3.4 Notice of Adjustment. Upon any adjustment of the Purchase Price or any increase or decrease in the number of shares purchasable upon the exercise of this Warrant, the Company will give written notice thereof to Holder, which
notice will state the Purchase Price resulting from such adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of this Warrant, setting forth in reasonable detail the method of
calculation and the facts upon which such calculation is based. 
  
 3.5 Other Notices. If at any time: 
  
 (a) the Company declares any cash dividend upon its Common Stock; 
  
 (b) the Company declares any dividend upon the Common Stock payable in stock or makes any special dividend or other distribution to holders of Common Stock; 
  
 (c) the Company offers for subscription pro rata to holders of Common
Stock any additional shares of stock of any class or other rights; 
  
 (d) there is any capital reorganization or reclassification of the capital stock of the Company; or consolidation or merger of the Company with, or sale of all or substantially all of its assets to, another corporation; or

  
 (e) there is a voluntary or
involuntary dissolution, liquidation or winding-up of the Company; 
  
 then, in
any one or more of said cases, the Company will give Holder (a) at least 10 days’ prior written notice of the date on which the books of the Company will close or a record will be taken for such dividend, distribution or subscription rights or
for determining rights to vote in respect of any such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, and (b) in the case of any such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation, winding-up or public offering, at least 30 days’ prior written notice of the date when the same will take place; provided, however, that Holder will make a best efforts attempt to respond to such
notice as early as possible after the receipt thereof. Any notice given in accordance with the foregoing clause (a) will also specify, in the case of any such dividend, distribution or subscription rights, the date on which holders of Common Stock
will be entitled thereto. Any notice given in accordance with the foregoing clause (b) will also specify the date on which Holders of Common Stock will be entitled to exchange their Common Stock for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation, winding-up, conversion or public offering, as the case may be. 
  

 3.6 Certain Events. If any change in the outstanding Common Stock or any other event occurs as to
which the other provisions of this Section 3 are not strictly applicable or if strictly applicable would not fairly protect the purchase rights of Holder in accordance with such provisions, then the Board will make an adjustment in the number and
class of shares available under this Warrant, the Purchase Price or the application of such provisions, so as to protect such purchase rights as aforesaid. The adjustment will be such as will give Holder upon exercise for the same aggregate Purchase
Price the total number, class and kind of shares as it would have owned had this Warrant been exercised prior to the event and had it continued to hold such shares until after the event requiring adjustment. 
  

	4.	ISSUE TAX. 

  
 The issuance of certificates for shares of Common Stock upon the exercise of this Warrant will be made without charge to Holder for any issue tax (other
than any applicable income taxes) in respect thereof; provided, however, that the Company will not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a
name other than that of Holder. 
  

	5.	CLOSING OF BOOKS. 

  
 The Company will at no time close its transfer books against the transfer of any warrant or of any shares of Common Stock issued or issuable upon the
exercise of any warrant in any manner that interferes with the timely exercise of this Warrant. 
  

	6.	NO VOTING OR DIVIDEND RIGHTS; LIMITATION OF LIABILITY.

  
 Nothing contained in this Warrant will be
construed as conferring upon Holder the right to vote or to consent or to receive notice as a stockholder of the Company or any other matters or any rights whatsoever as a stockholder of the Company. No dividends or interest will be payable or
accrued in respect of this Warrant or the interest represented hereby or the shares purchasable hereunder until, and only to the extent that, this Warrant has been exercised. No provisions hereof, in the absence of affirmative action by Holder to
purchase shares of Common Stock, and no mere enumeration herein of the rights or privileges of Holder, will give rise to any liability of Holder for the Purchase Price or as a stockholder of the Company, whether such liability is asserted by the
Company or by its creditors. 
  

	7.	MODIFICATION AND WAIVER. 

  

This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party against
which enforcement of the same is sought. 
  

	8.	NOTICES. 

  

 9. Any notice, or other communication hereunder will be given in writing and will be deemed effectively given as
of the date delivered if delivered by hand or facsimile (confirmed by hand delivery, nationally-recognized overnight delivery serve or registered or certified mail), one day after deposit with a nationally-recognized overnight delivery courier
service or three days after deposit with the United States post office, by registered or certified mail with postage and fees prepaid, addressed to Holder at its address as shown on the books of the Company or to the Company at its principal
executive offices or such other address as either may from time to time provide to the other by 10 days’ advance written notice in accordance with this Section 8. 
  

	10.	DESCRIPTIVE HEADINGS AND GOVERNING LAW. 

  
 The description headings of the several sections and paragraphs of this
Warrant are inserted for convenience only and do not constitute a part of this Warrant. This Warrant will be construed and enforced in accordance with, and the rights of the parties will be governed by, the laws of the State of California.

  

	11.	LOST WARRANTS. 

  
 Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of any
such loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to the Company, or in the case of any such mutilation upon surrender and cancellation of such Warrant, the Company, at its expense, will make and deliver a new
Warrant, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant. 
  

	12.	FRACTIONAL SHARES. 

  
 No fractional shares will be issued upon exercise of this Warrant. The Company will, in lieu of issuing any fractional share, pay Holder a sum in cash
equal to such fraction multiplied by the then effective Purchase Price. 
  
 [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 
  

 The Company has caused this Warrant to be duly executed by its officers, thereunto duly authorized on the
date hereof. 
  

			
	DESIGN WITHIN REACH, INC.
		
	Signature:	 	 
	 	 	

	Printed Name:	 	 
	 	 	

	Title:	 	 
	 	 	

  

			
	ACCEPTED:
	
	JESSE HANSEN & CO.
		
	Signature:	 	 
	 	 	

		
	Print Name:	 	 
	 	 	

	Title:	 	 
	 	 	

  

 EXHIBIT A 
  

SUBSCRIPTION FORM 
  
 Date:
                         
  
 Design Within Reach, Inc. 
 455 Jackson Street 
 San Francisco, CA 94111 
  
 Ladies and Gentlemen: 
  
 The
undersigned (“Purchaser”) hereby elects to exercise this Warrant issued to it by Design Within Reach, Inc. (the “Company”) and dated
                    , 1999 (the “Warrant”) and to purchase thereunder
                     shares of the Common Stock of the Company (the “Shares”) at a purchase price of
$             per Share for an aggregate purchase price of $             (the “Purchase
Price”). 
  
 Pursuant to the terms of
this Warrant the undersigned has delivered the Purchase Price herewith in full in cash or by certified check or wire transfer. In connection with such purchase and in order to comply with the exemptions from registration relied upon by the Company,
Purchaser represents, warrants and agrees as follows: 
  
 Purchaser is acquiring the Common Stock for its own account, to hold for investment, and Purchaser will not make any sale, transfer or other disposition of the Common Stock in violation of the Securities Act of 1933, as amended (the
“Act”), or the General Rules and Regulations promulgated thereunder by the Securities and Exchange Commission or in violation of any applicable state securities law. 
  
 Purchaser has been advised that the Common Stock has not been
registered under the Act or state securities laws on the ground that this transaction is exempt from registration, and that reliance by the Company on such exemptions is predicated in part on Purchaser’s representations set forth in this
letter. 
  
 Purchaser has been informed that under the Act, the
Common Stock must be held indefinitely unless it is subsequently registered under the Act or unless an exemption from such registration (such as Rule 144) is available with respect to any proposed transfer or disposition by Purchaser of the Common
Stock. Purchaser further agrees that the Company may refuse to permit Purchaser to sell, transfer or dispose of the Common Stock (except as permitted under Rule 144) unless there is in effect a registration statement under the Act and any applicable
state securities laws covering such transfer, or unless Purchaser furnishes an opinion of counsel reasonably satisfactory to counsel for the Company, to the effect that such registration is not required. 
  
 Purchaser has carefully read this letter and has discussed its requirements
and other applicable limitations upon Purchaser’s resale of the Common Stock with Purchaser’s counsel. 
  

			
	 Very truly yours,

	
	JESSE HANSEN & CO.
		
	Signature:	 	 
	 	 	

	Printed Name:	 	 
	 	 	

	Title:Investors' Rights Agreement, dated May 12, 2000, by & among Design Within Reach

 EXHIBIT 4.03 
  
 INVESTORS’ RIGHTS AGREEMENT 
  
 MAY 12, 2000 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page

	1.	 	Registration Rights	  	1
				
	 	 	1.1	  	Definitions	  	1
	 	 	1.2	  	Request for Registration	  	2
	 	 	1.3	  	Company Registration	  	4
	 	 	1.4	  	Form S-3 Registration	  	5
	 	 	1.5	  	Obligations of the Company	  	6
	 	 	1.6	  	Information from Holder	  	7
	 	 	1.7	  	Expenses of Registration	  	7
	 	 	1.8	  	Delay of Registration	  	7
	 	 	1.9	  	Indemnification	  	8
	 	 	1.10	  	Reports Under Securities Exchange Act of 1934	  	10
	 	 	1.11	  	Assignment of Registration Rights	  	10
	 	 	1.12	  	Limitations on Subsequent Registration Rights	  	11
	 	 	1.13	  	“Market Stand-Off” Agreement	  	11
	 	 	1.14	  	Termination of Registration Rights	  	12
	 	 	1.15	  	Further Limitations on Disposition	  	12
			
	2.	 	Covenants of the Company	  	12
				
	 	 	2.1	  	Delivery of Financial Statements	  	12
	 	 	2.2	  	Inspection	  	13
	 	 	2.3	  	Termination of Information and Inspection Covenants	  	13
	 	 	2.4	  	Special Right of Reed Elsevier	  	13
	 	 	2.5	  	Right of First Offer	  	14
	 	 	2.6	  	Termination of Certain Covenants	  	15
			
	3.	 	Miscellaneous	  	15
				
	 	 	3.1	  	Successors and Assigns	  	15
	 	 	3.2	  	Governing Law	  	16
	 	 	3.3	  	Counterparts	  	16
	 	 	3.4	  	Titles and Subtitles	  	16
	 	 	3.5	  	Notices	  	16
	 	 	3.6	  	Expenses	  	16
	 	 	3.7	  	Entire Agreement: Amendments and Waivers	  	16
	 	 	3.8	  	Severability	  	16
	 	 	3.9	  	Aggregation of Stock	  	16

  

 INVESTORS’ RIGHTS AGREEMENT 
  
 THIS INVESTORS’ RIGHTS AGREEMENT is made as of the 12th day of May, 2000, by and among Design Within Reach, Inc., a
California corporation (the “Company”), and the investors listed on Schedule A hereto, each of which is herein referred to as an “Investor”. 
  
 RECITALS 
  
 WHEREAS, the Company and certain of the Investors are parties to the Series B Preferred Stock Purchase Agreement of even date herewith (the “Series B
Agreement”); 
  
 WHEREAS, in order to induce the Company to
approve the issuance of the Series B Preferred Stock and to induce certain of the Investors to invest funds in the Company pursuant to the Series B Agreement, the Investors and the Company hereby agree that this Agreement shall govern the rights of
the Investors to cause the Company to register shares of Common Stock issued or issuable to them and certain other matters as set forth herein; 
  
 NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS: 
  
 1. Registration Rights. The Company covenants and agrees as follows: 
  
 1.1 Definitions. For purposes of this Section 1: 
  
 (a) The term “Act” means the Securities Act of 1933, as amended.

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

  
 (c) The term “Holder” means any person owning or
having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 1.11 hereof. 
  
 (d) The term “Initial Offering” means the Company’s first firm commitment underwritten public offering of its Common Stock under the Act.

  
 (e) The term “Major Investor” means an Investor
that holds not less than 500,000 shares of Registrable Securities. 
  
 (f) The term “1934 Act” means the Securities Exchange Act of 1934, as amended. 
  
 (g) The term “Qualified Public Offering” means a firmly underwritten public offering of shares of Common Stock of the Company at a per share
price not 

  

 
less than $12.00 (as adjusted for stock splits, dividends and the like) and for a total offering of not less than $20,000,000 (before deduction of
underwriters commissions and expenses). 
  
 (h) The term
“register,” “registered,” and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Act, and the declaration or ordering of
effectiveness of such registration statement or document. 
  
 (i) The term “Registrable Securities” means (i) the Common Stock issuable or issued upon conversion of the Series A Preferred Stock and Series B Preferred Stock, and (ii) any Common Stock of the Company issued as (or issuable upon
the conversion or exercise of any warrant, right or other security that is issued as) a dividend or other distribution with respect to, or in exchange for, or in replacement of, the shares referenced in (i) above, excluding in all cases, however,
any Registrable Securities sold by a person in a transaction in which his rights under this Section 1 are not assigned. 
  
 (j) The number of shares of “Registrable Securities” outstanding shall be determined by the number of shares of Common Stock outstanding that
are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities that are, Registrable Securities. 
  
 (k) The term “SEC” shall mean the Securities and Exchange Commission. 
  
 1.2 Request for Registration. 
  
 (a) Subject to the conditions of this Section 1.2, if the Company shall receive at any time after the effective date of the
Initial Offering, a written request from the Holders of thirty percent (30%) or more of the Registrable Securities then outstanding (the “Initiating Holders”) that the Company file a registration statement under the Act covering the
registration of Registrable Securities with an anticipated aggregate offering price of at least $5,000,000, then the Company shall, within twenty (20) days of the receipt thereof, give written notice of such request to all Holders, and subject to
the limitations of this Section 1.2, use its best efforts to effect, as soon as practicable, the registration under the Act of all Registrable Securities that the Initiating Holders and all other Holders with remaining registration rights under this
Section 1.2 who elect to join in the demand registration (collectively, the “Registering Holders”) request to be registered in a written request received by the Company within twenty (20) days of the mailing of the Company’s notice
pursuant to this Section 1.2(a). 
  
 (b) If the Initiating
Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 1.2 and the Company shall include such
information in the written notice referred to in Section 1.2(a). In such event the right of any Holder to include its Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the
inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein. All Holders 

  

 2 

 
proposing to distribute their securities through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or
underwriters selected for such underwriting by the Company (which underwriter or underwriters shall be reasonably acceptable to a majority in interest of the Registering Holders). Notwithstanding any other provision of this Section 1.2, if the
underwriter advises the Company that marketing factors require a limitation of the number of securities underwritten (including Registrable Securities), then the Company shall so advise all Holders of Registrable Securities that would otherwise be
underwritten pursuant hereto, and the number of shares that may be included in the underwriting shall be allocated to the Holders of such Registrable Securities as follows: First, to the Registering Holders and the Company (in the event that the
Company also desires to sell securities in such offering); provided that in no event shall the Registering Holders be cut back to less than 50% of the aggregate securities to be sold in the offering; and second, to other Holders of Registrable
Securities requesting inclusion in the offering. If either the Registering Holders or the other Holders of Registrable Securities are prevented from selling all securities which they desire to sell as a result of the foregoing cut back provisions,
any such cut back shall be on a pro rata basis based on the Registrable Securities owned by the respective Registering Holders (in the case of cut backs limiting sales by the Registering Holders) or other Holders of the Registrable Securities (in
the case of cut backs not limiting sales by the Registering Holders). Any Registrable Securities excluded or withdrawn from such underwriting shall be withdrawn from the registration. If any of the Registering Holders is required to cut back the
amount of Registrable Securities which such Holder desires to sell, such Holder shall have the right to withdraw its request for registration, in which case none of its Registrable Securities shall be registered as part of the offering and the
offering shall not be deemed to have utilized one of such Holder’s registration rights pursuant to Section l.2(c)(ii). 
  
 (c) The Company shall not be required to effect a registration pursuant to this Section 1.2: 
  
 (i) in any particular jurisdiction in which the Company would be required
to execute a general consent to service of process in effecting such registration, unless the Company is already subject to service in such jurisdiction and except as may be required under the Act; or 
  
 (ii) after the Company has effected two (2) registrations pursuant to this
Section 1.2, and such registrations have been declared or ordered effective; or 
  
 (iii) during the period starting with the date forty five (45) days prior to the Company’s good faith estimate of the date of the filing of, and ending on a date one hundred eighty (180) days following the
effective date of, a Company-initiated registration subject to Section 1.3 below, provided that the Company is actively employing in good faith all reasonable efforts to cause such registration statement to become effective; or 
  
 (iv) if the Initiating Holders propose to dispose of Registrable Securities
that may be registered on Form S-3 pursuant to Section 1.4 hereof; or 
  
 (v) if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 1.2, a certificate signed by the Company’s Chief 

  

 3 

 
Executive Officer or Chairman of the Board stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously
detrimental to the Company and its shareholders for such registration statement to be effected at such time, in which event the Company shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of the
request of the Initiating Holders, provided that such right to delay a request shall be exercised by the Company not more than once in any twelve (12)-month period; or 
  
 (vi) if, within thirty (30) days of any registration request pursuant to this Section 1.2, the Company delivers notice to
the Holders requesting such registration of its intent to file a registration for such initial offering within ninety (90) days. 
  
 1.3 Company Registration. 
  
 (a) If (but without any obligation to do so) the Company proposes to register (including for this purpose a registration effected by the Company for
shareholders other than the Holders) any of its stock or other securities under the Act in connection with the public offering of such securities (other than a registration relating solely to the sale of securities to participants in a Company stock
plan, a registration relating to a corporate reorganization or other transaction under Rule 145 of the Act, a registration on any form that does not include substantially the same information as would be required to be included in a registration
statement covering the sale of the Registrable Securities, or a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered), the Company shall, at such
time, promptly give each Holder written notice of such registration. Upon the written request of each Holder given within twenty (20) days after mailing of such notice by the Company in accordance with Section 3.5, the Company shall, subject to the
provisions of Section 1.3(c), use all reasonable efforts to cause to be registered under the Act all of the Registrable Securities that each such Holder has requested to be registered. 
  
 (b) Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration
initiated by it under this Section 1.3 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration. The expenses of such withdrawn registration shall be borne by the Company in
accordance with Section 1.7 hereof. 
  
 (c) Underwriting
Requirements. In connection with any offering involving an underwriting of shares of the Company’s capital stock, the Company shall not be required under this Section 1.3 to include any of the Holders’ securities in such underwriting
unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters selected by it and enter into the underwriting agreement in customary form with an underwriter or underwriters selected by the Company, and then
only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company. If the total amount of securities, including Registrable Securities, requested by Holders to be included in
such offering exceeds the amount of securities sold other than by the Company that the underwriters determine in their sole discretion (with written notice by such underwriters to the selling Holders of the reasons for such exclusion) is 

  

 4 

 
compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including
Registrable Securities, that the underwriters determine in their sole discretion will not jeopardize the success of the offering (the securities so included to be apportioned pro rata among the selling Holders according to the total amount of
securities entitled to be included therein owned by each selling Holder or in such other proportions as shall mutually be agreed to by such selling Holders), but in no event shall (i) the amount of securities of the selling Holders included in the
offering be reduced below thirty-five percent (35%) of the total amount of securities included in such offering, unless such offering is the initial public offering of the Company’s securities, in which case the selling Holders may be excluded
if the underwriters make the determination described above and no other shareholder’s securities are included, or (ii) notwithstanding (i) above, any shares being sold by a shareholder exercising a demand registration right similar to that
granted in Section 1.2 be excluded from such offering. In no event will shares of any other selling shareholder be included in such registration which would reduce the number of shares which may be included by Holders without the written consent of
Holders of not less than a majority of the Registrable Securities proposed to be sold in the offering. For purposes of the preceding parenthetical concerning apportionment, for any selling shareholder that is a Holder of Registrable Securities and
that is a partnership or corporation, the partners, retired partners and shareholders of such Holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be
deemed to be a single “selling Holder,” and any pro rata reduction with respect to such “selling Holder” shall be based upon the aggregate amount of Registrable Securities owned by all such related entities and individuals.

  
 1.4 Form S-3 Registration. In case the Company shall
receive from any Holder a written request or requests that the Company effect a registration on Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, the
Company shall: 
  
 (a) promptly give written notice of the
proposed registration, and any related qualification or compliance, to all other Holders; and 
  
 (b) use its best efforts to effect, as soon as practicable, such registration and all such qualifications and compliances as may be so requested and as
would permit or facilitate the sale and distribution of all or such portion of such Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other Holders joining
in such request as are specified in a written request given within twenty (20) days after receipt of such written notice from the Company, provided, however, that the Company shall not be obligated to effect any such registration, qualification or
compliance, pursuant to this section 1.4: 
  
 (i) if Form S-3 is not available for such offering by the Holders; 
  
 (ii) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an
aggregate price to the public (net of 

  

 5 

 
any underwriters’ discounts or commissions) of less than $1,000,000; 
  
 (iii) if the Company shall furnish to the Holders a certificate signed by the Chief Executive Officer or Chairman of the
Board of the Company stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its shareholders for such Form S-3 Registration to be effected at such time, in which event
the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than ninety (90) days after receipt of the request of the Holder or Holders under this Section 1.4; provided, however, that the
Company shall not utilize this right more than once in any twelve month period; 
  
 (iv) if the Company has, within the twelve (12) month period preceding the date of such request, already effected two registrations on Form S-3 for the Holders pursuant to this Section 1.4; or 
  
 (v) in any particular jurisdiction in which the Company would be required
to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance. 
  
 (c) Subject to the foregoing, the Company shall file a registration statement covering the Registrable Securities and other securities so requested to be
registered as soon as practicable after receipt of the request or requests of the Holders. Registrations effected pursuant to this Section 1.4 shall not be counted as requests for registration effected pursuant to Sections 1.2. 
  
 1.5 Obligations of the Company. Whenever required under this Section
1 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: 
  
 (a) prepare and file with the SEC a registration statement with respect to such Registrable Securities and use all reasonable efforts to cause such
registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days or, if
earlier, until the distribution contemplated in the Registration Statement has been completed; 
  
 (b) prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the Act with respect to the disposition of all securities covered by such registration statement; 
  
 (c) furnish to the Holders such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with
the requirements of the Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them; 
  

 6 

 (d) use all reasonable efforts to register and qualify the securities covered by such registration
statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business
or to file a general consent to service of process in any such states or jurisdictions; 
  
 (e) in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering; 
  
 (f) notify each Holder of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is required to be delivered under the Act or the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an
untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; 
  
 (g) cause all such Registrable Securities registered pursuant hereunder to
be listed on each securities exchange on which similar securities issued by the Company are then listed; and 
  
 (h) provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable
Securities, in each case not later than the effective date of such registration. 
  
 1.6 Information from Holder. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder
that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be required to effect the registration of such Holder’s
Registrable Securities. 
  
 1.7 Expenses of Registration.
All expenses other than underwriting discounts and commissions incurred in connection with registrations, filings or qualifications pursuant to Sections 1.2, 1.3 and 1 .4, including (without limitation) all registration, filing and qualification
fees, printers’ and accounting fees, fees and disbursements of counsel for the Company and the reasonable fees and disbursements of one counsel for the selling Holders shall he borne by the Company. Notwithstanding the foregoing, the Company
shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 1.2 or Section 1.4 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities
to be registered (in which case all participating Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be requested in the withdrawn registration and such withdrawn registration shall not count as
one of the registrations provided for under said sections). 
  
 1.8 Delay of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any 

  

 7 

 
controversy that might arise with respect to the interpretation or implementation of this Section 1. 
  
 1.9 Indemnification. In the event any Registrable
Securities are included in a registration statement under this Section 1: 
  
 (a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder, the partners or officers, directors and shareholders of each Holder, legal counsel and accountants for each Holder, any
underwriter (as defined in the Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Act or the 1934 Act, against any losses, claims, damages or liabilities (joint or several) to which they
may become subject under the Act, the 1934 Act or any state securities laws, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or
violations (collectively a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the
Company of the Act, the 1934 Act, any state securities laws or any rule or regulation promulgated under the Act, the 1934 Act or any state securities laws; and the Company will reimburse each such Holder, underwriter or controlling person for any
legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this subsection 1.9(a) shall not apply
to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case
for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation that occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such
registration by any such Holder, underwriter or controlling person; provided further, however, that the foregoing indemnity agreement with respect to any preliminary prospectus shall not inure to the benefit of any Holder or underwriter, or any
person controlling such Holder or underwriter, from whom the person asserting any such losses, claims, damages or liabilities purchased shares in the offering, if a copy of the prospectus (as then amended or supplemented if the Company shall have
furnished any amendments or supplements thereto) was not sent or given by or on behalf of such Holder or underwriter to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of the shares to
such person, and if the prospectus (as so amended or supplemented) would have cured the defect giving rise to such loss, claim, damage or liability. 
  
 (b) To the extent permitted by law, each selling Holder will severally but not jointly indemnify and hold harmless the Company, each of its directors,
each of its officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Act, legal counsel and accountants for the Company, any underwriter, any other Holder selling securities in such
registration statement and any controlling person of any such underwriter or other Holder, against any losses, claims, damages or liabilities 

  

 8 

 
(joint or several) to which any of the foregoing persons may become subject, under the Act, the 1934 Act or any state securities laws, insofar as such
losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written
information furnished by such Holder expressly for use in connection with such registration; and each such Holder will severally but not jointly reimburse any person intended to be indemnified pursuant to this subsection 1.9(b), for any legal or
other expenses reasonably incurred by such person in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this subsection 1.9(b) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder (which consent shall not be unreasonably withheld), provided that in no event shall any indemnity under
this subsection 1.9(b) exceed the gross proceeds from the offering received by such Holder. 
  
 (c) Promptly after receipt by an indemnified party under this Section 1.9 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is
to be made against any indemnifying party under this Section 1.9, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying
party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties
that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action, to the extent prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 1.9, but the
omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 1.9. 
  
 (d) If the indemnification provided for in this Section 1.9 is held by a court of competent jurisdiction to be unavailable
to an indemnified party with respect to any loss, liability, claim, damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with
the statements or omissions that resulted in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’
relative intent, 

  

 9 

 
knowledge, access to information, and opportunity to correct or prevent such statement or omission. 
  
 (e) Notwithstanding the foregoing, to the extent that the provisions on
indemnification and contribution contained in the underwriting agreement entered into in connection with an underwritten public offering of Registrable Securities are in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control. 
  
 (f) The obligations of the Company
and Holders under this Section 1.9 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1, and otherwise. 
  
 1.10 Reports Under Securities Exchange Act of 1934. With a view to making available to the Holders the benefits of
Rule 144 promulgated under the Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company agrees
to: 
  
 (a) make and keep public information available, as those
terms are understood and defined in SEC Rule 144, at all times after ninety (90) days after the effective date of the Initial Offering; 
  
 (b) file with the SEC in a timely manner all reports and other documents required of the Company under the Act and the 1934 Act; and 
  
 (c) furnish to any Holder, so long as the Holder owns any Registrable
Securities, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date of the Initial Offering), the Act and the
1934 Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any
such securities without registration or pursuant to such form. 
  
 1.11 Assignment of Registration Rights. The rights to cause the Company to register Registrable Securities pursuant to this Section 1 may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of
such securities that (i) is a subsidiary, parent, partner, limited partner, retired partner (or commonly controlled by the parent) or shareholder of a Holder, (ii) is a Holder’s family member or trust for the benefit of an individual Holder, or
(iii) after such assignment or transfer, holds at least 100,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends, combinations and other recapitalizations) or all of such Holder’s Registrable
Securities if less than 100,000 shares, provided: (a) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such
registration rights are being assigned; (b) such transferee or 

  

 10 

 
assignee agrees in writing to be bound by and subject to the terms and conditions of this Agreement, including without limitation the provisions of Section
1.13 below; and (c) such assignment shall be effective only if immediately following such transfer the further disposition of such securities by the transferee or assignee is restricted under the Act. 
  
 1.12 Limitations on Subsequent Registration Rights.

  
 (a) From and after the date of this Agreement, the Company
shall not, without the prior written consent of the Holders of a majority of the Registrable Securities (which majority shall include REI (as hereafter defined) as long as REI is a Major Investor), enter into any agreement with any holder or
prospective holder of any securities of the Company that would allow such holder or prospective holder (i) to include such securities in any registration filed under Section 1.3 hereof, unless under the terms of such agreement, such holder or
prospective holder may include such securities in any such registration only to the extent that the inclusion of such securities will not reduce the amount of the Registrable Securities of the Holders that are included or (ii) to demand registration
of their securities. 
  
 (b) The Company represents that as of
the date hereof and except as provided for herein, no person or entity has registration rights with respect to securities issued by the Company. 
  
 1.13 “Market Stand-Off” Agreement. Each Holder hereby agrees that it will not, without the prior written consent of the managing
underwriter, during the period commencing on the date of the final prospectus relating to the Company’s Initial Offering and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty
(180) days) (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or
indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock (whether such shares or any such securities are then owned by the Holder or are thereafter acquired), or (ii) enter into any
swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common
Stock or such other securities, in cash or otherwise. The foregoing provisions of this Section 1.13 shall apply only to the Company’s Initial Offering of equity securities, shall not apply to the sale of any shares to an underwriter pursuant to
an underwriting agreement, and shall only be applicable to the Holders if all officers and directors and greater than five percent (5%) shareholders of the Company enter into similar agreements. The underwriters in connection with the Company’s
initial public offering are intended third party beneficiaries of this Section 1.13 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. 
  
 In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to the Registrable Securities of each Holder (and the shares 

  

 11 

 
or securities of every other person subject to the foregoing restriction) until the end of such period. 
  
 1.14 Termination of Registration Rights. No Holder shall be entitled
to exercise any right provided for in this Section 1 after, as to any Holder, such time at which all Registrable Securities held by such Holder (and any affiliate of the Holder with whom such Holder must aggregate its sales under Rule 144) can be
sold in any three (3)-month period without registration in compliance with Rule 144 of the Act. 
  
 1.15 Further Limitations on Disposition. Each Investor agrees not to make any disposition of all or any portion of the Registrable Securities
unless and until the transferee has agreed in writing for the benefit of the Company to be bound by this Agreement and: 
  
 (a) There is then in effect a registration statement under the Act covering such proposed disposition and such disposition is made in accordance with
such registration statement; or 
  
 (b) (i) Such Investor shall
have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and (ii) if reasonably requested by the Company, such Investor shall have
furnished the Company with an opinion of counsel, reasonably satisfactory to the Company that such disposition will not require opinions of counsel for transactions made pursuant to Rule 144 except in unusual circumstances. 
  
 (c) Notwithstanding the provisions of Paragraphs (a) and (b) above, no such
registration statement or opinion of counsel shall be necessary for a transfer by an Investor that is a partnership to a partner of such partnership or a retired partner of such partnership who retires after the date hereof, or to the estate of any
such partner or retired partner or the transfer by gift, will or intestate succession of any partner to his or her spouse or the siblings, lineal descendants or ancestors of such partner or his or her spouse, if the transferee agrees in writing to
be subject to the terms hereof to the same extent as if he or she were an original Investor hereunder. 
  
 2. Covenants of the Company. 
  
 2.1 Delivery of Financial Statements. The Company shall deliver: 
  
 (a) to each Investor, as soon as practicable, but in any event within ninety (90) days after the end of each fiscal year of
the Company, an income statement for such fiscal year, a balance sheet of the Company and statement of shareholder’s equity as of the end of such year, and a statement of cash flows for such year, such year-end financial reports to be in
reasonable detail, prepared in accordance with generally accepted accounting principles 

  

 12 

 
(“GAAP”), and audited and certified by independent public accountants of nationally recognized standing selected by the Company; 
  
 (b) to each Investor, as soon as practicable, but in any event within
forty-five (45) days after the end of each of the first three (3) quarters of each fiscal year of the Company, an unaudited income statement, statement of cash flows for such fiscal quarter and an unaudited balance sheet as of the end of such fiscal
quarter. 
  
 (c) to each Major Investor, within thirty (30) days
of the end of each month, an unaudited income statement and statement of cash flows and balance sheet for and as of the end of such month, in reasonable detail; 
  
 (d) to each Major Investor, as soon as practicable, but in any event at least thirty (30) days prior to the end of each
fiscal year, an annual operating plan for the next fiscal year, prepared on a monthly basis, including balance sheets, income statements and statements of cash flows for such months and, as soon as prepared, any other budgets or revised budgets
prepared by the Company; 
  
 (e) with respect to the financial
statements called for in subsections (b) and (c) of this Section 2.1, an instrument executed by the Chief Financial Officer or President of the Company certifying that such financials were prepared in accordance with GAAP consistently applied with
prior practice for earlier periods (with the exception of footnotes that may be required by GAAP) and fairly present the financial condition of the Company and its results of operation for the period specified, subject to year-end audit adjustment;
and 
  
 (f) to each Investor, such other information relating to
the financial condition, business, prospects or corporate affairs of the Company as the Investor or any assignee of the Investor may from time to time request, provided, however, that the Company shall not be obligated under this subsection (f) or
any other subsection of Section 2.1 to provide information that it deems in good faith to be a trade secret or similar confidential information. 
  
 2.2 Inspection. The Company shall permit each Investor, at such Investor’s expense, to visit and inspect the Company’s properties, to
examine its books of account and records and to discuss the Company’s affairs, finances and accounts with its officers, all at such reasonable times as may be requested by the Investor; provided, however, that the Company shall not be obligated
pursuant to this Section 2.2 to provide access to any information that it reasonably considers to be a trade secret or similar confidential information. 
  
 2.3 Termination of Information and Inspection Covenants. The covenants set forth in Sections 2.1 and 2.2 shall terminate as to Investors and be of
no further force or effect upon a Qualified Public Offering. 
  
 2.4 Special Right of Reed Elsevier. Subject to the terms and conditions specified in this Section 2.4, the Company hereby grants to Reed Elsevier Inc. (“REI”) a right of first offer with respect to future sales by the
Company of its shares of, or securities convertible into or exchangeable or exercisable for any shares of, any class of its capital 

  

 13 

 
stock which are convertible into Common Stock (“Shares”) so that after giving effect to the acquisition of the Shares, REI’s ownership
interest in the Company’s fully-diluted Shares will equal thirty percent (30%) (the “Target Ownership”). REI shall have a period of thirty (30) days after notice from the Company of the Shares to be offered and a general description
(i.e., term sheet) of the rights, preferences and price of such Shares) to notify the Company whether it will exercise its right of first offer. Failure of REI to timely notify the Company of acceptance shall be deemed a rejection of the offer. This
right of first offer shall continue until the first to occur of: (i) the date REI reaches the Target Ownership; (ii) the date REI rejects an offer pursuant to this Section 2.4 in part or in whole; or (iii) as provided in Section 2.6. 
  
 If rights of REI under Section 2.4 are in effect immediately prior to the
filing of a registration statement with respect to the Company’s initial public offering, REI shall have the right to subscribe to a special class of Preferred Stock which would have a mandatory conversion feature and convert into Common Stock
immediately before the effective date of the initial public offering at the initial public offering price. Except with respect to conversion price, such special class of Preferred Stock will have rights and preferences otherwise substantially
identical to the most recent class of Preferred Stock which the Company has issued. REI shall be entitled to subscribe to an amount of this special class of Preferred Stock so that immediately prior to the closing of initial public offering (at the
anticipated initial public offering price) REI’s percentage ownership of the Shares will equal the Target Ownership. 
  
 2.5 Right of First Offer. Subject to the terms and conditions specified in Section 2.4 and this Section 2.5, the Company hereby grants to each
Major Investor a right of first offer with respect to future sales by the Company of its Shares (as hereinafter defined). For purposes of this Section 2.5, Major Investor includes any general partners and affiliates of a Major Investor. A Major
Investor shall be entitled to apportion the right of first offer hereby granted it among itself and its partners and affiliates in such proportions as it deems appropriate. 
  
 Each time the Company proposes to offer any Shares, the Company shall first make an offering of such Shares to each Major
Investor in accordance with the following provisions. 
  
 (a)
The Company shall deliver a notice in accordance with Section 3.5 (“Notice”) to the Major Investors stating (i) its bona fide intention to offer such Shares, (ii) the number of such Shares to be offered, and (iii) the price and terms upon
which it proposes to offer such Shares. 
 (b) By written notification received by the Company, within twenty (20) calendar days after
receipt of the Notice, the Major Investor may elect to purchase or obtain, at the price and on the terms specified in the Notice, up to that portion of such Shares that equals the proportion that the number of shares of Common Stock issued and held,
or issuable upon conversion of the Series A Preferred Stock and/or Series B Preferred Stock then held, by 

  

 14 

 
such Investor bears to the total number of shares of Common Stock of the Company then outstanding (assuming full conversion of all convertible securities).

  
 (c) If all Shares that Investors are entitled to obtain
pursuant to subsection 2.5(b) are not elected to be obtained as provided in subsection 2.5(b) hereof, the Company may, during the ninety (90) day period following the expiration of the period provided in subsection 2.5(b) hereof, offer the remaining
unsubscribed portion of such Shares to any person or persons at a price not less than, and upon terms no more favorable to the offeree than those specified in the Notice. If the Company does not enter into an agreement for the sale of the Shares
within such period, or if such agreement is not consummated within ninety (90) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such Shares shall not be offered unless first reoffered to the Major
Investors in accordance herewith. 
  
 (d) The right of first
offer in this paragraph 2.5 shall not be applicable to (i) the issuance or sale of shares of Common Stock (or options therefor) to employees, directors and consultants for the primary purpose of soliciting or retaining their services; (ii) the
issuance of securities pursuant to a bona fide, firmly underwritten public offering of shares of Common Stock, registered under the Act, (iii) the issuance of securities pursuant to the conversion or exercise of convertible or exercisable
securities, (iv) the issuance of stock pursuant to any rights or agreements outstanding as of the date of this Agreement, options and warrants outstanding as of the date of this Agreement and stock issued pursuant to any such rights or agreements
granted after the date of this Agreement; provided, that the rights of first refusal established by this Section applied with respect to the initial sale or grant by the Company of such rights or agreements; (v) shares of Common Stock issued in
connection with any stock split, stock dividend or recapitalization of the Company; (vi) any equity securities issued pursuant to any equipment leasing or loan arrangement, or debt financing from a bank or similar financial or lending institution;
(vii) the issuance of securities in connection with a bona fide business acquisition of or by the Company, whether by merger, consolidation, sale of assets, sale or exchange of stock or otherwise or (viii) the issuance of stock, warrants or other
securities or rights to persons or entities with which the Company has business relationships provided such issuances are for other than primarily equity financing purposes. 
  
 2.6 Termination of Certain Covenants. The covenants set forth in Sections 2.4 and 2.5 shall terminate and be of no
further force or effect upon the consummation a Qualified Public Offering. 
  
 3. Miscellaneous. 
  
 3.1
Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties (including transferees of any
shares of Registrable Securities). Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under
or by reason of this Agreement, except as expressly provided in this Agreement. 
  

 15 

 3.2 Governing Law. This Agreement shall be governed by and construed under the laws of the State
of California as applied to agreements among California residents entered into and to be performed entirely within California. 
  
 3.3 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. 
  
 3.4 Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
  
 3.5 Notices. Unless otherwise provided, any notice required or permitted under this Agreement shall be given in
writing and shall be deemed effectively given upon personal delivery to the party to be notified or upon delivery by confirmed facsimile transmission, nationally recognized overnight courier service, or upon deposit with the United States Post
Office, by registered or certified mail, postage prepaid and addressed to the party to be notified at the address indicated for such party on the signature page hereof, or at such other address as such party may designate by ten (10) days’
advance written notice to the other parties. 
  
 3.6
Expenses. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any
other relief to which such party may be entitled. 
  
 3.7
Entire Agreement: Amendments and Waivers. This Agreement (including the Exhibits hereto, if any) constitutes the full and entire understanding and agreement among the parties with regard to the subjects hereof and thereof. Any term of this
Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the holders of a
majority of the Registrable Securities. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any Registrable Securities each future holder of all such Registrable Securities, and the Company.

  
 3.8 Severability. If one or more provisions of this
Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with
its terms. 
  
 3.9 Aggregation of Stock. All shares of
Registrable Securities held or acquired by affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 
  

 16 

 IN WITNESS WHEREOF, the parties hereto
have executed the Investor Rights Agreement as of the date set forth in the first paragraph hereof. 
  

									
	 COMPANY:
 DESIGN WITHIN REACH, INC.
	 	 	 	 INVESTORS:
 JESSE.HANSEN CO-INVESTMENT VEHICLE,
LP

					
	 Signature:
	 	 	 	 	 	 Signature:
	 	 
	 	 	
	 	 	 	 	 	

	 Print Name:
	 	 	 	 	 	 Print Name:
	 	 
	 	 	
	 	 	 	 	 	

	 Title:
	 	 	 	 	 	 Title:
	 	 
	 	 	
	 	 	 	 	 	

			
	 Address:
 455 Jackson Street
 San Francisco, CA 94111
	 	 	 	 Address:
 451 Jackson Street, 3rd Floor
 San Francisco, CA 94111

			
	 	 	 	 	 JH CAPITAL PARTNERS, L.P.

					
	 	 	 	 	 	 	 Signature:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Print Name:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Title:
	 	 
	 	 	 	 	 	 	 	 	

			
	 	 	 	 	 Address:
 451 Jackson Street, 3rd Floor
 San Francisco, CA 94111

			
	 	 	 	 	 OTHER INVESTORS:

					
	 	 	 	 	 	 	 Signature:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Print Name:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Address:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

					
	 	 	 	 	 	 	 Entity Name:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Signature:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Print Name:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Title:
	 	 
	 	 	 	 	 	 	 	 	

					
	 	 	 	 	 	 	 Address:
	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	

  

 17

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