Document:

exhibit
10.9

 

FORM
OF

SUBSCRIPTION AND SUPPORT AGREEMENT

 

This
SUBSCRIPTION AND SUPPORT AGREEMENT (this “Agreement”), dated as of November 14, 2013, is made by and
between Blue Eagle Holdings, L.P., a Delaware limited partnership (“Parent”), and the undersigned shareholder
of the Company (the “Investor”). Parent and the Investor are sometimes individually referred to herein
as a “Party” and collectively as the “Parties.” Capitalized terms used but
not defined herein shall have the meanings set forth in the Merger Agreement (as defined herein).

 

RECITALS

 

A.           Immediately
following the execution and delivery of this Agreement, Parent, Innotrac Corporation, a Georgia corporation (the “Company”),
and Blue Eagle Acquisition Sub, Inc., a Georgia corporation and a wholly-owned subsidiary of Parent (“Purchaser”),
will enter into an Agreement and Plan of Merger, dated as of the date hereof (the “Merger Agreement”).

 

B.           On
the terms and subject to the conditions set forth in the Merger Agreement, (i) Purchaser will commence a tender offer to purchase
(the “Offer”) all of the issued and outstanding shares of common stock of the Company, par value $0.10
per share (the “Common Stock”), at an offer price equal to the Offer Price payable to the seller in
cash, without interest, subject to withholding of taxes required by applicable Law and (ii) following the consummation of the
Offer and at the Effective Time, Purchaser will merge with and into the Company (the “Merger”), with
the Company continuing as the surviving corporation, whereby each issued and outstanding share of Common Stock (other than Excluded
Shares) will be converted into the right to receive the Common Merger Consideration payable to the seller in cash, without interest,
subject to withholding of taxes required by applicable Law.

 

C.           The
Investor beneficially owns the number of shares of Common Stock set forth opposite the Investor’s name on Schedule I
hereto under the heading “Investor Owned Shares” (such shares of Common Stock, together with any other shares
of Common Stock the beneficial ownership of which is directly or indirectly acquired by the Investor until the termination of
this Agreement pursuant to the terms hereof, are collectively referred to herein as the “Investor Owned Shares”).

 

D.           At
the Subscription Closing (as defined herein), the Investor will acquire from Parent, and Parent will issue and deliver to the
Investor the number of shares of Preferred Units in Investor (“Preferred Units”) set forth opposite
the Investor’s name on Schedule I hereto under the heading “Purchased Units” (such Preferred Units, the
“Purchased Units”). Such transaction is hereby referred to as the “Subscription.”

 

E.           In
order to facilitate the transactions contemplated by this Agreement in accordance with the requirements of Rule 14d-10(a)(2) promulgated
under the Exchange Act with respect to the Offer, the Investor will not tender any of the Investor Owned Shares in connection
with the Offer.

 

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

 

    	 

    	 

    

 

ARTICLE
I

 

SUBSCRIPTION

 

Section
1.1           Subscription. Upon the terms and subject to the conditions
of this Agreement, at the Subscription Closing, (a) Parent will issue and deliver to the Investor the Purchased Units free and
clear of all Liens other than any such Lien arising hereunder and any applicable restriction on transfer under applicable securities
Law, and (b) in consideration for such Purchased Units, the Investor will make a capital contribution to Parent in the aggregate
amount of __________. Such capital contribution shall be made by wire transfer of immediately available funds at the Subscription
Closing.

 

Section
1.2           Subscription Closing. Subject to the satisfaction
or waiver of the conditions to the Subscription set forth in Section 1.3, the closing of the Subscription (the “Subscription
Closing”) will take place immediately after Purchaser’s acceptance of the shares of Common Stock tendered
pursuant to the Offer at the offices of Kilpatrick Townsend & Stockton LLP, 1100 Peachtree Street NE, Suite 2800, Atlanta,
Georgia 30309-4528. At the Subscription Closing, the Investor will deliver or cause to be delivered to Parent a counterpart signature
page to the Amended and Restated Limited Partnership Agreement of Parent, in substantially the form attached hereto as Exhibit
A (the “Limited Partnership Agreement”). Upon receipt of the foregoing deliveries by Parent, and
effective as of the Subscription Closing, the Investor will be admitted as a limited partner of Parent. The rights, privileges
and preferences of the Purchased Units issued to the Investor shall be as set forth in the Limited Partnership Agreement. The
date upon which the Subscription Closing occurs is the “Subscription Closing Date”.

 

Section
1.3           Conditions to Subscription.

 

(a)           Conditions
to Parent’s Obligations. The obligations of Parent to consummate the Subscription are subject to the satisfaction or
waiver by Parent of the following conditions:

 

(i)           all
of the conditions to the consummation of the Merger under the Merger Agreement shall have been satisfied;

 

(ii)          the
representations and warranties of the Investor contained in Article IV of this Agreement shall be true and correct in all material
respects as of the date of this Agreement and as of the Subscription Closing Date with the same force and effect as if made on
and as of such date;

 

(iii)         the
Investor shall have performed in all material respects all of its obligations under this Agreement required to be performed by
it at or prior to the Subscription Closing; and

 

(iv)         no
Restraint shall be in effect enjoining, restraining, preventing or prohibiting the consummation of the Subscription or making
the consummation of the Subscription illegal.

 

(b)           Conditions
to Investor’s Obligations. The obligations of the Investor to consummate the Subscription are subject to the satisfaction
or waiver by the Investor of the following conditions:

 

(i)         all
of the conditions to the consummation of the Merger under the Merger Agreement shall have been satisfied;

 

    	 

    	 

    

 

(ii)         the
representations and warranties of Parent contained in Article V of this Agreement shall be true and correct in all material respects
as of the date of this Agreement and as of the Subscription Closing Date with the same force and effect as if made on and as of
such date;

 

(iii)        Parent
shall have performed in all material respects all of its obligations under this Agreement required to be performed by it at or
prior to the Subscription Closing; and

 

(iv)        no
Restraint shall be in effect enjoining, restraining, preventing or prohibiting the consummation of the Subscription or making
the consummation of Subscription illegal.

 

ARTICLE
II

 

COVENANTS REGARDING
INVESTOR OWNED SHARES

 

Section
2.1           Agreement Not to Tender. The Investor agrees that
he shall not, without the prior written consent of Parent, directly or indirectly, tender the Investor Owned Shares into the Offer
in any manner. The Investor agrees to comply in all respects with Rule 14e-5 promulgated under the Exchange Act (notwithstanding
whether the Investor would be subject to Rule 14e-5).

 

Section
2.2           Voting Agreement.

 

(a)          From
and after the date hereof, at any meeting of the Company’s shareholders (or any adjournment or postponement thereof), however
called, the Investor separately agrees to vote (or cause to be voted) in person or by proxy all of the Investor Owned Shares:

 

(i)          in
favor of (and shall provide written consent to) the approval of the Merger Agreement and the Transaction (and in favor of any
actions and proposals required, or submitted for approval at any meeting of the Company shareholders, in furtherance thereof);

 

(ii)         against
(and shall not provide any written consent to) any proposal presented to the Company’s shareholders for approval at any
meeting of the Company’s shareholders, or any written consent in lieu thereof, if the action, transaction or agreement that
is the subject of such proposal, following approval by the Company’s shareholders would reasonably be expected, directly
or indirectly, to result in a breach by the Company of any covenant, representation, warranty or other obligations of the Company
set forth in the Merger Agreement; and

 

(iii)        against
(and shall not provide any written consent to) the following actions or proposals (other than the Transaction): (A) any Takeover
Proposal; (B) the adoption of any Acquisition Agreement or any other agreement relating to a Takeover Proposal, (C) any nominee
for election to the Board other than (x) a Person nominated by the Board or any committee thereof and/or (y) Scott D. Dorfman;
or (D) any other action or proposal to be voted upon by the Company’s shareholders at any meeting of the Company’s
shareholders, or any written consent in lieu thereof, if such action or proposal would reasonably be expected, to prevent, impede,
interfere with, delay, postpone or adversely affect the Transaction.

 

(b)         The
Investor agrees to cause the Investor Owned Shares to be duly counted for purposes of determining that a quorum is present and
for purposes of recording the results of any vote or consent required pursuant to Section 2.2(a).

 

    	 

    	 

    

 

(d)          Parent
acknowledges that the Investor has entered into this Agreement solely in the Investor’s capacity as the record or beneficial
owner of the Investor Owned Shares (and not in any other capacity, including any capacity as a director or officer of the Company).
Nothing herein shall limit or affect any actions taken by the Investor in the Investor’s capacity as a director or officer
of the Company, or require the Investor to take any action in the Investor’s capacity as a director or officer of the Company.
Without limiting the foregoing, and for the avoidance of doubt, nothing in this Section 2.2(c) shall affect any of
the rights or remedies of Parent and Purchaser under the Merger Agreement or relieve the Company from any breach or violation
of the Merger Agreement caused by any action or omission of the Investor (in the Investor’s capacity as a director or officer
of the Company or otherwise).

 

Section
2.3           Irrevocable Proxy.

 

(a)          In
furtherance of the Investor’s agreements in Sections 2.1 and 2.2 of this Agreement, the Investor hereby appoints
Parent and Parent’s designees, and each of them individually, as the Investor’s proxy and attorney-in-fact (with full
power of substitution) (the “Proxyholders”), for and in the name, place and stead of the Investor, to
vote all Investor Owned Shares owned by the Investor (at any meeting of the Company’s shareholders (or any adjournment or
postponement thereof), however called), or to execute one or more written consents in respect of the Investor Owned Shares with
respect to the matters described in Section 2.2(a) of this Agreement. If the Investor fails for any reason to be counted
as present or to vote (including by written consent, if applicable) the Investor Owned Shares in accordance with the requirements
of Section 2.2(a) above, then Parent shall have the right to cause to be present or vote the Investor Owned Shares in accordance
with the provisions of Section 2.2(a). The Proxyholders may not exercise this irrevocable
proxy on any matter except as provided above. The Investor may vote the Investor Owned Shares on all other matters.

 

(b)          The
proxy granted pursuant to Section 2.3(a) shall (i) be valid and irrevocable until the valid termination of this Agreement
in accordance with (or as otherwise provided in) Article VI hereof and (ii) automatically terminate upon the valid termination
of this Agreement in accordance with (or as otherwise provided in) Section 6.1 hereof. The Investor represents that any
and all other proxies and powers of attorney heretofore given in respect of the Investor Owned Shares are revocable, and that
such other proxies have been revoked. The Investor affirms that the foregoing proxy is: (A) given (I) in connection with the execution
of the Merger Agreement and (II) to secure the performance of the Investor’s duties under this Agreement, (B) coupled with
an interest and may not be revoked except as otherwise provided in this Agreement and (C) intended to be irrevocable prior to
valid termination of this Agreement or as otherwise provided in Section 6.1 hereof. All authority herein conferred shall
survive the death, bankruptcy or incapacity of the Investor and shall be binding upon the heirs, estate, administrators, personal
representatives, successors and assigns of the Investor.

 

Section
2.4           Documentation and Information. The Investor
(i) consents to and authorizes the publication and disclosure by Parent of the Investor’s identity and holdings of the Investor
Owned Shares and the nature of the Investor’s commitments, arrangements and understandings under this Agreement, in any
press release, the Offer Documents or any other disclosure document required in connection with the Transaction, and (ii) will
use reasonable best efforts to give to Parent, as promptly as practicable, any information reasonably related to the foregoing
as it may reasonably require for the preparation of any such disclosure documents. The Investor will use reasonable best efforts
to notify Parent, as promptly as practicable, of any required corrections with respect to any written information supplied by
the Investor specifically for use in any such disclosure document, if and to the extent the Investor becomes aware that any such
information has become false or misleading in any material respect.

 

Section
2.5           Other Actions. The Investor agrees not to enter into
any agreement or commitment with any Person the effect of which would, or would reasonably be expected to, violate, be inconsistent
with or otherwise frustrate the purposes of the provisions and agreements set forth in this Article II.

 

    	 

    	 

    

 

ARTICLE
III

 

STANDSTILL AND
NON-SOLICITATION

 

Section
3.1           Standstill in Respect of Investor Owned Shares. The
Investor hereby agrees that, from and after the date hereof until the earlier of the Effective Time and the valid termination
of the Merger Agreement, the Investor shall not, directly or indirectly, unless (i) specifically requested by Parent in writing
or (ii) expressly contemplated by the terms of this Agreement or the Merger Agreement:

 

(a)          sell,
transfer, tender, pledge, encumber, assign or otherwise dispose of (collectively, a “Transfer”), or
enter into any contract, option or other agreement with respect to, or consent to, a Transfer of, any or all of the Investor Owned
Shares; provided that this Section 3.1(a) shall not limit or preclude the Investor’s right to Transfer any
Investor Owned Shares to any Permitted Transferee solely for estate planning or charitable purposes, provided that, (i)
the Investor provides at least three Business Days advance written notice to Parent of such proposed transfer (including providing
such other information and documentation related to the proposed Permitted Transferee as Parent may reasonably request), (ii)
such Permitted Transferee agrees in a written agreement with Parent in form and substance satisfactory to Parent, in its reasonable
discretion, to hold the Investor Owned Shares pursuant to, and to be bound by, the terms and conditions of this Agreement as an
“Investor” hereunder, and to make each of the representations and warranties (which may be made in reliance upon a
certificate from the Investor) hereunder in respect of the Investor Owned Shares transferred as the Investor shall have made hereunder
and (iii) an opinion, in form and substance reasonably acceptable to Parent, of counsel that is knowledgeable in securities matters
to the effect that such Transfer was made in accordance with applicable securities Laws and that this Agreement is binding upon
and enforceable against such Permitted Transferee; provided, further, in the event that any proposed Permitted Transferee
does not comply with the obligations imposed hereunder with respect to the Investor Owned Shares purported to be transferred to
such Person, such transfer shall be deemed null and void ab initio;

 

(b)          acquire,
offer to acquire, or agree to acquire, directly or indirectly, by purchase or otherwise, any assets of the Company or any Company
Subsidiary;

 

(c)          make,
or in any way participate in, directly or indirectly, any “solicitation” of “proxies” (as such terms are
used in the rules of the Securities and Exchange Commission) to vote or consent to, or otherwise take any action intended to advise
or influence any Person with respect to the voting of, or giving consent with respect to, any voting securities of the Company,
other than in support of the Transaction and the Merger Agreement;

 

(c)          make
any public announcement with respect to, or submit a proposal for, or offer for (with or without conditions) any extraordinary
transaction involving the Company, any Company Subsidiary or their securities or assets;

 

(d)          form,
join or in any way participate in a “group” (as defined in Section 13(d)(3) of the Exchange Act) in connection with
any of the foregoing;

 

(e)          seek,
in any way which may be reasonably likely to require, involve or trigger public disclosure of such request pursuant to applicable
Law, to have any provision of this Section 3.1 amended, modified or waived; or

 

(f)          otherwise
take, directly or indirectly, any actions with the purpose of avoiding or circumventing any provision of this Section 3.1
or which would reasonably be expected to have the effect of preventing, impeding, interfering with or adversely affecting the
consummation of the Transaction or its ability to perform the Investor’s obligations under this Agreement.

 

    	 

    	 

    

 

Any
action taken in violation of the foregoing shall be null and void ab initio.

 

Section
3.2           Dividends, Distributions, Etc. in Respect of Investor
Owned Shares; Additional Investor Owned Shares. In the event of a share dividend or share distribution, or any change
in the shares of Common Stock by reason of any share dividend or share distribution, split-up, recapitalization, combination,
exchange of shares or the like, the term “Investor Owned Shares” shall be deemed to refer to and include the Investor
Owned Shares as well as all such share dividends and share distributions and any securities into which or for which any or all
of the Investor Owned Shares may be changed or exchanged or which are received in such transaction. The Investor hereby agrees,
during the term of this Agreement, to promptly notify Parent of any new shares of Common Stock acquired by the Investor, if any,
after the execution of this Agreement. Any such shares of Common Stock shall be subject to the terms of this Agreement as though
owned by the Investor on the date of this Agreement.

 

Section 3.3           Competing
Proposals in Respect of Investor Owned Shares.

 

(a)          The
Investor shall not, and shall use reasonable best efforts to ensure that each of the Investor’s Representatives and Affiliates
do not, directly or indirectly: (i) solicit or initiate, or knowingly facilitate or encourage (including by way of providing information),
any inquiries, proposals or offers that constitute, or that would reasonably be expected to lead to, a Takeover Proposal; (ii)
participate in any negotiations regarding, or furnish to any person (other than Parent, the Company, any other Investor or any
Representatives of the Investor, Parent, the Company or any other Investor) any nonpublic information with respect to, any Takeover
Proposal; or (iii) engage in discussions with any Person (other than Parent, the Company, any other Investor or any Representatives
of the Investor, Parent, the Company or any other Investor) with respect to any Takeover Proposal. Notwithstanding the foregoing,
nothing in this Agreement shall prohibit an Investor (A) who is an officer or director of the Company from taking any action in
the Investor’s capacity as an officer or director of the Company that is permitted to be taken by an officer or director
of the Company under Section 4.02 of the Merger Agreement and (B) from engaging in discussions with a third party that the Company
is permitted to engage in discussions with regarding a Takeover Proposal or Acquisition Transaction pursuant to Section 4.02(c)
or 4.02(g) of the Merger Agreement regarding the Investor’s equity participation, investment or reinvestment in a Takeover
Proposal or an Acquisition Transaction; provided that prior to the termination of this Agreement, no Investor will enter
into any agreement with respect to any of the foregoing.

 

(b)          If
the Investor, or any of the Investor’s Representatives, at any time during the period beginning on the date hereof and ending
on the valid termination of this Agreement, receives any bona fide Takeover Proposal (or any other inquiry regarding a potential
Takeover Proposal) from a potential bidder or its Representatives, then the Investor shall promptly: (i) advise the Company and
Parent in writing of such Takeover Proposal or inquiry (including the identity of the Person making or submitting such Takeover
Proposal or inquiry and the material terms and conditions thereof); and (ii) provide the Company and Parent with copies of all
documents and other written communications received by the Investor setting forth the terms and conditions of such Takeover Proposal
or inquiry.

 

(c)          The
Investor shall, and shall ensure that each of the Investor’s Representatives and Affiliates (if applicable), immediately
terminate and cause to be terminated any existing solicitation by the Investor or the Investor’s Representatives or Affiliates
of, or discussions or negotiations between the Investor or the Investor’s Representatives or Affiliates and, any Person
relating to any Takeover Proposal, and the Investor shall be responsible for any breach of this Agreement by the Investor’s
Representatives or Affiliates.

 

    	 

    	 

    

 

(d)          The
Investor agrees to promptly inform each of the Investor’s Representatives and the Representatives of the Investor’s
Affiliates’ of the obligations undertaken in this Article III.

 

ARTICLE IV

 

REPRESENTATIONS
AND WARRANTIES OF THE INVESTOR 

 

The Investor hereby
represents and warrants to Parent as follows:

 

Section
4.1           Binding Nature of Agreement. This Agreement has been
duly and validly executed and delivered by the Investor and, assuming that this Agreement constitutes the valid and binding agreement
of Parent, constitutes the valid and binding agreement of the Investor, enforceable against the Investor in accordance with its
terms, except that such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or other similar
Laws now or hereafter in effect relating to creditors’ rights generally, and (ii) general principles of equity (regardless
of whether enforceability is considered in a proceeding in equity or at law).

 

Section
4.2           Ownership of Shares. As of the date hereof, the Investor
beneficially owns the number of Investor Owned Shares set forth opposite the name of the Investor on Schedule I hereto
under the heading “Investor Owned Shares”. Such Investor has the sole power to vote (or cause to be voted) the Investor
Owned Shares and has good and valid title to the Investor Owned Shares, free and clear of any and all Liens, other than those
created by this Agreement or restrictions on transfer arising under applicable securities Law.

 

Section
4.3           No Conflicts. Neither the execution and delivery of
this Agreement by the Investor, nor the consummation by the Investor of the transactions contemplated hereby, will result in,
or give rise to, a violation or breach of or a default under any of the terms of any material contract, understanding, agreement
or other instrument or obligation to which the Investor is a party or by which the Investor or any of the Investor Owned Shares
or the Investor’s assets may be bound, or (ii) violate any applicable Law, except, with respect to any of the foregoing
clauses (i) and (ii), as does not and would not reasonably be expected to impair the Investor’s ability to perform the Investor’s
obligations under this Agreement.

 

Section
4.4           Investment Intent. The Investor is acquiring the Purchased
Units for the Investor’s own account, for investment only, and not with a view to any resale or public distribution thereof.
The Investor agrees that the Investor will not offer to sell or otherwise dispose of the Purchased Units to be held by it in violation
of any applicable Law. Each the Investor acknowledges that (a) the Purchased Units have not been registered under the Securities
Act, or any state or foreign securities Laws, (b) there is no public market for the Purchased Units and there can be no assurance
that a public market shall develop, (c) the Purchased Units are subject to the restrictions on transfer set forth in the Limited
Partnership Agreement and (d) the Investor must bear the economic risk of its investment in the Purchased Units to be held
by it for an indefinite period of time. The Investor has all requisite legal power and authority to acquire the Purchased Units
in accordance with the terms of this Agreement and is an “accredited investor” within the meaning of the Rule 501
promulgated under the Securities Act. Such Investor has been given the opportunity to consult with independent legal counsel regarding
the Investor’s rights and obligations under the Limited Partnership Agreement, has read and fully understands the terms
and conditions contained in the Limited Partnership Agreement, and intends for such terms to be binding and enforceable upon the
Investor.

 

    	 

    	 

    

 

Section
4.5           Enforceability Against Spouses. If the Investor is
a married individual and the Investor Owned Shares constitute community property or otherwise require spousal approval in order
for this Agreement to be a legally valid and binding obligation of the Investor, this Agreement has been duly executed and delivered
by Investor’s spouse and constitutes a legally valid and binding obligation of the Investor’s spouse, enforceable
against the Investor’s spouse in accordance with its terms, except that such enforceability may be limited by (i) bankruptcy,
insolvency, reorganization, moratorium or other similar Laws now or hereafter in effect relating to creditors’ rights generally,
and (ii) general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

 

Section
4.6           Reliance by Parent. Such Investor understands and
acknowledges that Parent is entering into the Merger Agreement in reliance upon the Investor’s execution and delivery of
this Agreement and the representations and warranties of the Investor contained herein. Such Investor understands and acknowledges
that the Merger Agreement governs the terms of the Merger and the Transaction.

 

The
Investor that is a non-natural person further severally and not jointly represents and warrants to Parent as follows:

 

Section
4.7           Due Organization. Such Investor is duly organized,
validly existing and in good standing under the Laws of its jurisdiction of formation.

 

Section
4.8           Authority Relative to This Agreement. Such
Investor has the requisite power and authority to execute and deliver this Agreement and to consummate the transactions contemplated
hereby. This Agreement and the consummation by the Investor of the transactions contemplated hereby have been duly and validly
authorized by the board of directors, general partner or similar governing body of the Investor, and no other corporate proceedings
on the part of the Investor are necessary to authorize this Agreement or to consummate the transactions contemplated hereby.

 

Section
4.9           No Conflicts. Neither the execution and delivery
of this Agreement by the Investor, nor the consummation by the Investor of the transactions contemplated hereby, will conflict
with or result in any breach of the organizational documents of the Investor.

 

ARTICLE V

REPRESENTATION AND WARRANTIES OF PARENT

 

Parent
hereby represents and warrants to the Investor as follows:

 

Section
5.1           Due Organization. Parent is a limited partnership
duly organized, validly existing and in good standing under the Laws of the State of Delaware.

 

Section
5.2           Authority Relative to This Agreement. Parent
has the requisite limited partnership power and authority to execute and deliver this Agreement and to consummate the transactions
contemplated hereby. This Agreement and the consummation by Parent of the transactions contemplated hereby have been duly and
validly authorized by the general partner of Parent, and no other limited partnership proceedings on the part of Parent are necessary
to authorize this Agreement or to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed
and delivered by Parent and, assuming that this Agreement constitutes the valid and binding agreement of the Investor, constitutes
the valid and binding agreement of Parent, enforceable against Parent in accordance with its terms, except that such enforceability
may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or other similar Laws now or hereafter in effect relating
to creditors’ rights generally, and (ii) general principles of equity (regardless of whether enforceability is considered
in a proceeding in equity or at law).

 

    	 

    	 

    

 

Section
5.3           No Conflicts. Neither the execution and delivery
of this Agreement by Parent, nor the consummation by Parent of the transactions contemplated hereby, will (i) conflict with or
result in any breach of the governing documents of Parent; (ii) require any Permit from any Governmental Authority; (iii) result
in, or give rise to, a violation or breach of or a default under any of the terms of any material contract, understanding, agreement
or other instrument or obligation to which Parent is a party, or (iv) violate any applicable Law, except, with respect to any
of the foregoing clauses (i) through (iv), as does not and could not reasonably be expected to impair Parent’s ability to
perform its obligations under this Agreement.

 

Section
5.4           Valid Issuance of Purchased Units. Assuming the truth
and accuracy of the representations and warranties set forth in Section 4.4, when issued and delivered on the Subscription
Closing Date, the Purchased Units shall be validly issued and fully paid and shall have been issued in compliance with the Securities
Act and applicable state securities Laws.

 

ARTICLE
vi

termination

 

Section
6.1           Termination.

 

(a)          Subject
to Section 6.1(b), this Agreement shall terminate (except for Article VI and Article VII, which shall survive
such termination), without further action by any of the parties hereto, and none of Parent or the Investor shall have any rights
or obligations under this Agreement, immediately upon the earliest to occur of: (i) the termination of this Agreement by mutual
written consent of Parent and the Investor, (ii) the termination of the Merger Agreement in accordance with its terms (provided,
however, that the Investor’s obligations under Section 2.2(a)(iii) and Section 3.3 shall survive for
18 months following any termination of the Merger Agreement by Parent pursuant to Section 7.01(c)(ii) of the Merger Agreement
as a result of the Board effecting a Company Adverse Recommendation Change resulting from an Intervening Event) and (iii) the
Effective Time of the Merger.

 

(b)          Notwithstanding
Section 6.1(a), termination of this Agreement shall not prevent any party hereunder from seeking any remedies (at law or
in equity) against any other party hereto for such party’s breach of any of the terms of this Agreement prior to the termination
of this Agreement.

 

ARTICLE
vii

 

MISCELLANEOUS
PROVISIONS

 

Section
7.1           Dissenters’ Rights. To the extent permitted
by applicable Law, the Investor hereby waives and agrees not to exercise any rights to dissent from the Transaction that he, she
or it may have under applicable Law.

 

Section
7.2           Further Actions. Each of the Parties agrees
to use reasonable best efforts to do all things reasonably necessary to effectuate this Agreement.

 

Section
7.3           Waivers. No failure on the part of any party
to exercise any power, right, privilege or remedy under this Agreement, and no delay on the part of any party in exercising any
power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or remedy; and
no single or partial exercise of any such power, right, privilege or remedy shall preclude any other or further exercise thereof
or of any other power, right, privilege or remedy. No party shall be deemed to have waived any claim arising out of this Agreement,
or any power, right, privilege or remedy under this Agreement, unless the waiver of such claim, power, right, privilege or remedy
is expressly set forth in a written instrument duly executed and delivered on behalf of such party; and any such waiver shall
not be applicable or have any effect except in the specific instance in which it is given.

 

    	 

    	 

    

 

Section
7.4          Counterparts. This Agreement may be executed
and delivered (including by facsimile transmission or by e-mail of a .pdf attachment) in two or more counterparts, and by the
different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original
but all of which taken together shall constitute one and the same agreement.

 

Section
7.5           GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF GEORGIA, REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE
PRINCIPLES OF CONFLICTS OF LAWS THEREOF.

 

Section
7.6           Venue and Exclusive Jurisdiction. Each of the Parties
(a) consents to submit itself to the exclusive personal jurisdiction of the federal and state courts located in the State of Georgia
situated in Fulton County, in the event any dispute arises out of this Agreement, (b) agrees that he, she or it will not attempt
to deny or defeat such personal jurisdiction by motion or other request for leave from any such court and (c) agrees that he,
she or it will not bring any action relating to this Agreement in any court other than the federal and state courts located in
the State of Georgia situated in Fulton County. Each Party hereby (i) consents to service of process in any action between the
parties arising in whole or in part under or in connection with this Agreement in any manner permitted by Georgia Law, (ii) agrees
that service of process made in accordance with clause (i) or made by registered or certified mail, return receipt requested,
at its address specified on the first page of this Agreement, will constitute good and valid service of process in any such action,
and (iii) waives and agrees not to assert (by way of motion, as a defense, or otherwise) in any such action any claim that service
of process made in accordance with clause (i) or (ii) does not constitute good and valid service of process.

 

Section
7.7           Waiver of Jury Trial. Each Party hereby unconditionally
and irrevocably waives, to the fullest extent permitted by applicable Law, any right it may have to a trial by jury in respect
of any Proceeding arising out of this Agreement. Each party hereto certifies and acknowledges that (a) no representative, agent
or attorney of any other Party has represented, expressly or otherwise, that such other Party would not, in the event of any action,
suit or proceeding, seek to enforce the foregoing waiver in the event of a legal action, (b) such {arty has considered the implications
of this waiver, (c) such party makes this waiver voluntarily and (d) such {arty has been induced to enter into this Agreement,
by, among other things, the mutual waiver and certifications in this Section 7.7.

 

Section
7.8           Notices. Any notice required to be given hereunder
shall be sufficient if in writing, and sent by facsimile transmission or e-mail of a .pdf attachment (provided that any notice
received by facsimile or e-mail transmission or otherwise at the addressee’s location on any Business Day after 5:00 p.m.
(addressee’s local time) shall be deemed to have been received at 9:00 a.m. (addressee’s local time) on the next Business
Day), by reliable overnight delivery service (with proof of service), hand delivery or certified or registered mail (return receipt
requested and first-class postage prepaid), addressed as follows (or at such other address for a party as shall be specified in
a notice given in accordance with this Section 7.8):

 

    	 

    	 

    

 

	 	If to Parent to:
	 	 
	 	c/o Sterling Fund Management, LLC 
	 	401 North Michigan Avenue, Suite 3300
    
	 	Chicago, Illinois 60611
	 	Attention: Office of General Counsel
	 	Facsimile No.: (312) 465-7001

    Email:  aepstein@sterlingpartners.com
	 	 
	 	with a copy to:
	 	 
	 	Katten Muchin Rosenman LLP 
	 	525 West Monroe Street
	 	Chicago, Illinois 60661
	 	Attention: 	Saul Rudo, Esq.
	 	 	Jeffrey R. Patt, Esq.
	 	Facsimile No. (312) 577-8870
	 	Email: 
        saul.rudo@kattenlaw.com

        jeffrey.patt@kattenlaw.com

	 	 
	 	If to the Investor, to:
	 	 
	 	 
	 	 
	 	 
	 	 
	 	with a copy to:
	 	 
	 	Ledbetter Wanamaker Glass LLP
	 	1201 Peachtree St., Suite 1501
	 	Atlanta, Georgia 30361
	 	Attention: Bruce D. Wanamaker, Esq.
	 	Facsimile No.: (404) 835-9540

    Email: bwanamaker@lwglaw.com

 

Section
7.9           Entire Agreement.  This Agreement constitutes the entire
agreement and supersedes all prior agreements and understandings, both written and oral, or among the Parties with respect to
the subject matter hereof. This Agreement shall be binding upon, and shall be enforceable by and inure solely to the benefit of,
the Parties and their respective successors and permitted assigns; provided, however, that neither this Agreement nor any
of the Parties’ rights, interests or obligations hereunder may be assigned or delegated, in whole or in part, by operation
of law or otherwise, without the prior written consent of the other Parties, and any attempted assignment or delegation of this
Agreement or any of such rights, interests or obligations by any Party without the other Parties’ prior written consent
shall be void and of no effect; provided, however, that Parent may assign this Agreement to an Affiliate thereof; provided
that, upon such assignment, Parent shall remain jointly and severally liable with its applicable Affiliate to the Investor
for performing all of its obligations hereunder. Nothing in this Agreement, express or implied, is intended to or shall confer
upon any Person (other than the Parties) any right, benefit or remedy of any nature. This Agreement is intended to create a contractual
relationship between the Investor and Parent and is not intended to create, and does not create, any agency, partnership, joint
venture or any like relationship among the Parties. Without limiting the generality of the foregoing, neither the Investor nor
Parent, by entering into this Agreement, intends to form a “group” for purposes of Rule 13d-5(b)(1) of the Exchange
Act or any other similar provision of applicable Law with Parent or any other shareholder of the Company.

 

    	 

    	 

    

 

Section
7.10       Severability. If any term or provision of this Agreement
is held by a court of competent jurisdiction or Governmental Entity to be invalid, void or unenforceable in any situation in any
jurisdiction, such holding shall not affect the validity or enforceability of the remaining terms and provisions of this Agreement
or the validity or enforceability or application of the invalid or unenforceable term or provision in any other situation or in
any other jurisdiction. If a final judgment of a court of competent jurisdiction declares that any term or provision of this Agreement
is invalid or unenforceable, the Parties agree that the court making such determination shall have the power to limit such term
or provision, to delete specific words or phrases or to replace such term or provision with a suitable and equitable term or provision
that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision,
and this Agreement shall be valid and enforceable as so modified. In the event such court does not exercise the power granted
to it in the prior sentence, the Parties agree to replace such invalid or unenforceable term or provision with a valid and enforceable
term or provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid or unenforceable
term or provision.

 

Section 7.11       Certain
Interpretations. For purposes of this Agreement:

 

(a)         Unless
otherwise specified, all references in this Agreement to Articles and Sections shall be deemed to refer to Articles and Sections
of this Agreement.

 

(b)         The
Article and Section captions herein are for convenience of reference only, do not constitute part of this Agreement and shall
not be deemed to limit or otherwise affect any of the provisions hereof.

 

(c)         Unless
the context otherwise requires, words describing the singular number shall include the plural and vice versa, and words denoting
any gender shall include all genders.

 

(d)         The
words “include,” “includes” and “including,” when used herein shall be deemed in each case
to be followed by the words “without limitation.”

 

(e)         The
Parties agree that they have been represented by legal counsel during the negotiation and execution of this Agreement and, therefore,
waive the application of any Law or rule of construction providing that ambiguities in an agreement or other document shall be
construed against the Party drafting such agreement or document.

 

(f)          “Affiliate”
means, with respect to any specified Person, any Person that directly, or indirectly through one or more intermediaries, controls,
or is controlled by, or is under common control with, the Person specified.

 

(g)         “Permitted
Transferee” means, with respect to the Investor (including any Permitted Transferee), any immediate family member
of the Investor, any trust, partnership, corporation, limited liability company or other entity of which the beneficiaries or
beneficial owners, as the case may be, are the Investor or Permitted Transferees, a trust or other entity for the benefit of any
Person that is qualified as a charitable organization under Section 501(c)(3) of the Code, or a family foundation established
by or on behalf of the Investor for the purpose of making charitable gifts or donations to Persons that are qualified as charitable
organizations under Section 501(c)(3) of the Code.

 

(h)         “Representative”
means, with respect to any Person, any director, officer, other employee, accountant, consultant, legal counsel, financial advisor,
agent or other representative of such Person.

 

    	 

    	 

    

 

Section
7.12         Ownership Interest. Nothing contained in this Agreement
shall be deemed to vest in Parent any direct or indirect ownership or incidence of ownership of or with respect to any Investor
Owned Shares. All rights, ownership and economic benefits of and relating to the Investor Owned Shares shall remain vested in
and belong to the Investor, and Parent shall have no authority to direct the Investor in the voting or disposition of any of the
Investor Owned Shares, except as otherwise provided in this Agreement.

 

[Signature Page
Follows]

 

    	 

    	 

    

 

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

 

	 	PARENT:
	 	 
	 	BLUE EAGLE HOLDINGS, L.P.
	 	 	 
	 	By:	 
	 	Name: 	 
	 	Title:	 

 

	 	INVESTOR:
	 	 	 
	 	 	 
	 	 	 
	 	Address:	 
	 	 	 
	 	 	 
	 	Facsimile:	 

 

    	 

    	 

    

 

Spousal Consent
to Subscription and Support Agreement

 

The undersigned
(a) understands that, pursuant to the provisions of the Subscription and Support Agreement (the “Agreement”)
to which this Spousal Consent is attached, _____________________ has agreed not to tender the Investor Owned Shares in
the Offer and, upon the terms and subject to the conditions of the Agreement, to contribute and deliver to Parent all of the Investor
Owned Shares, (b) understands that she may have a community property or other interest in the Investor Owned Shares, and
(c) consents to such non-tender provisions and the Subscription and agrees to be bound by each and every provision of the
Agreement. Capitalized terms used in this Spousal Consent and not otherwise defined herein shall have the meanings ascribed to
them in the Agreement.

 

	 	 

 

    	 

    	 

    

 

Schedule I

 

	Investor	 	Investor
    Owned Shares	 	Purchased
    Units
	 	 	 	 	 

 

    	 

    	 

    

 

Exhibit A

 

Form of Amended
and Restated Limited Partnership Agreement

 

[Incorporate by
reference to Exhibit B to Exhibit 10.2 to the Current Report on Form 8-K

of Innotrac Corporation filed on November 15, 2013]Exhibit 4.2

 

SEMLER SCIENTIFIC, INC.

 

INVESTORS’ RIGHTS AGREEMENT

 

June 7, 2012

 

    	 

    	 

    

 

TABLE OF CONTENTS

	 	 	Page
	 	 	 
	Section 1 Definitions	1
	 	 	 
	1.1	Certain Definitions	1
	 	 	 
	Section 2 Registration Rights	3
	 	 	 
	2.1	Requested Registration	3
	2.2	Company Registration	5
	2.3	Registration on Form S-3	6
	2.4	Expenses of Registration	7
	2.5	Registration Procedures	7
	2.6	Indemnification	8
	2.7	Information by Holder	10
	2.8	Restrictions on Transfer	10
	2.9	Rule 144 Reporting	11
	2.10	Market Stand-Off Agreement	12
	2.11	Delay of Registration	12
	2.12	Transfer or Assignment of Registration Rights	12
	2.13	Termination of Registration Rights	13
	 	 	 
	Section 3 Additional Covenants of the Company	13
	 	 	 
	3.1	Basic Financial Information and Inspection Rights	13
	3.2	Actions Requiring Board Consent and Consent of  Holders	13
	3.3	D&O Insurance	15
	3.4	Key Person Life Insurance	15
	3.6	Termination of Covenants	15
	 	 	 
	Section 4 Right of First Refusal	15
	 	 	 
	4.1	Right of First Refusal to  Holders	15
	 	 	 
	Section 5 Miscellaneous	17
	 	 	 
	5.1	Amendment	17
	5.2	Notices	17
	5.3	Governing Law	18
	5.4	Successors and Assigns	18
	5.5	Entire Agreement	18
	5.6	Delays or Omissions	18
	5.7	Severability	18
	5.8	Titles and Subtitles	18
	5.9	Counterparts	19
	5.10	Telecopy Execution and Delivery	19
	5.11	Jurisdiction; Venue	19
	5.12	Further Assurances	19
	5.13	Termination Upon Change of Control	19
	5.14	Conflict	19

 

    	-i-

    	 

    

 

TABLE OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	5.15	Attorneys’ Fees	19
	5.16	Aggregation of Stock	19

 

    	-ii-

    	 

    

 

SEMLER SCIENTIFIC, INC.

INVESTORS’ RIGHTS AGREEMENT

 

This Investors’ Rights
Agreement (this “Agreement”) is made as of June 7, 2012, by and among Semler Scientific, Inc., an Oregon corporation
(the “Company”), and the persons and entities (each, an “Investor” and collectively, the
“Investors”) listed on Exhibit A hereto. Unless otherwise defined herein, capitalized terms used in this
Agreement have the meanings ascribed to them in Section 1.

 

Recitals

 

WHEREAS: Each of
the Investors is either a holder of Preferred Stock of the Company, or a warrant exercisable therefor, or a party to a Series A
Preferred Stock and Warrant Subscription Agreement (the “Subscription Agreement”, and all such Subscription
Agreements, collectively, the “Subscription Agreements”), and it is a condition to the closing of the
sale of the Series A Preferred Stock pursuant to the Subscription Agreements that the Investors and the Company execute and deliver
this Agreement.

 

NOW, THEREFORE:
In consideration of the mutual promises and covenants set forth herein, and other consideration, the receipt and adequacy of which
is hereby acknowledged, the parties hereto agree as follows:

 

Section 1

Definitions

 

1.1          Certain Definitions. 
As used in this Agreement, the following terms shall have the meanings set forth below:

 

(a)          “Commission”
shall mean the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act.

 

(b)          “Common Stock”
means the Common Stock of the Company.

 

(c)          “Conversion
Stock” shall mean shares of Common Stock issued upon conversion of the Shares.

 

(d)          “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar successor federal statute and the rules
and regulations thereunder, all as the same shall be in effect from time to time.

 

(e)          “Holder”
shall mean any Investor who holds Registrable Securities and any holder of Registrable Securities to whom the registration rights
conferred by this Agreement have been duly and validly transferred in accordance with Section 2.12 of this Agreement.

 

(f)          “Indemnified
Party” shall have the meaning set forth in Section 2.6(c) hereto.

 

(g)          “Indemnifying
Party” shall have the meaning set forth in Section 2.6(c) hereto.

 

    	 

    	 

    

 

(h)          “Initial
Public Offering” shall mean the closing of the Company’s first firm commitment underwritten public offering of
the Company’s Common Stock registered under the Securities Act.

 

(i)           “Initiating
Holders” shall mean any Holder or Holders who, in the aggregate, hold at least 10% of the then outstanding Registrable
Securities.

 

(j)           “New Securities”
shall have the meaning set forth in Section 4.1(a) hereto.

 

(k)          “Other Selling
Stockholders” shall mean persons other than Holders who, by virtue of agreements with the Company, are entitled to include
their Other Shares in certain registrations hereunder.

 

(l)           “Other Shares”
shall mean shares of Common Stock, other than Registrable Securities (as defined below), (including shares of Common Stock issuable
upon conversion of shares of any currently unissued series of Preferred Stock of the Company) with respect to which registration
rights have been granted.

 

(m)         “Registrable
Securities” shall mean (i) shares of Common Stock issued or issuable pursuant to the conversion of the Shares and
(ii) any Common Stock issued as a dividend or other distribution with respect to or in exchange for or in replacement of the
shares referenced in (i) above; provided, however, that Registrable Securities shall not include any shares
of Common Stock described in clause (i) or (ii) above which have previously been registered or which have been sold to the public
either pursuant to a registration statement or Rule 144, or which have been sold in a private transaction in which the transferor’s
rights under this Agreement are not validly assigned in accordance with this Agreement.

 

(n)          The terms “register,”
“registered” and “registration” shall refer to a registration effected by preparing and filing
a registration statement in compliance with the Securities Act and applicable rules and regulations thereunder, and the declaration
or ordering of the effectiveness of such registration statement.

 

(o)          “Registration
Expenses” shall mean all expenses incurred in effecting any registration pursuant to this Agreement, including, without
limitation, all registration, qualification, and filing fees, printing expenses, escrow fees, fees and disbursements of counsel
for the Company and one special counsel for the Holders, blue sky fees and expenses, and expenses of any regular or special audits
incident to or required by any such registration, but shall not include Selling Expenses, fees and disbursements of other counsel
for the Holders and the compensation of regular employees of the Company, which shall be paid in any event by the Company.

 

(p)          “ Holders” shall have
the meaning assigned to it in the Company’s Articles of Incorporation.

 

(q)          “Restricted
Securities” shall mean any Registrable Securities required to bear the first legend set forth in Section 2.8(c)
hereof.

 

(r)           “Rule 144”
shall mean Rule 144 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time,
or any similar successor rule that may be promulgated by the Commission.

 

    	-2-

    	 

    

 

(s)          “Rule 145”
shall mean Rule 145 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time,
or any similar successor rule that may be promulgated by the Commission

 

(t)           “Rule 415”
shall mean Rule 415 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time,
or any similar successor rule that may be promulgated by the Commission.

 

(u)          “Securities
Act” shall mean the Securities Act of 1933, as amended, or any similar successor federal statute and the rules and regulations
thereunder, all as the same shall be in effect from time to time.

 

(v)          “Selling
Expenses” shall mean all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale
of Registrable Securities and fees and disbursements of counsel for any Holder (other than the fees and disbursements of one special
counsel to the Holders included in Registration Expenses).

 

(w)          “Shares”
shall mean the Company’s Series A Preferred Stock, Series A-1 Preferred Stock, and Series A-2 Preferred Stock.

 

(x)          “Withdrawn
Registration” shall mean a forfeited demand registration under Section 2.1 in accordance with the terms and
conditions of Section 2.4.

 

Section 2

Registration Rights

 

2.1          Requested Registration.

 

(a)          Request for Registration.  Subject to the conditions set forth in this Section 2.1, if the Company shall receive from Initiating Holders a written
request signed by such Initiating Holders that the Company effect any registration with respect to all or a part of the Registrable
Securities (such request shall state the number of shares of Registrable Securities to be disposed of and the intended methods
of disposition of such shares by such Initiating Holders), the Company will:

 

(i)           promptly give written
notice of the proposed registration to all other Holders; and

 

(ii)          as soon as practicable,
file and use its commercially reasonable efforts to effect such registration (including, without limitation, filing post-effective
amendments, appropriate qualifications under applicable blue sky or other state securities laws, and appropriate compliance with
the Securities Act) and to permit or facilitate the sale and distribution of all or such portion of such Registrable Securities
as are specified in such request, together with all or such portion of the Registrable Securities of any Holder or Holders joining
in such request as are specified in a written request received by the Company within twenty (20) days after such written notice
from the Company is mailed or delivered.

 

(b)          Limitations on
Requested Registration. The Company shall not be obligated to effect, or to take any action to effect, any such registration
pursuant to this Section 2.1:

 

    	-3-

    	 

    

 

(i)           Prior to the earlier
of (A) the five (5) year anniversary of the date of this Agreement or (B) one hundred eighty (180) days following the
effective date of the first registration statement filed by the Company covering an underwritten offering of any of its securities
to the general public (or the subsequent date on which all market stand-off agreements applicable to the offering have terminated);

 

(ii)          If the Initiating
Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration statement,
propose to sell Registrable Securities and such other securities (if any) the aggregate proceeds of which (after deduction for
underwriter’s discounts and expenses related to the issuance) are less than $10,000,000;

 

(iii)         In any particular
jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration,
qualification, or compliance, unless the Company is already subject to service in such jurisdiction and except as may be required
by the Securities Act;

 

(iv)         After the Company
has initiated two such registrations pursuant to this Section 2.1 (counting for these purposes only (x) registrations
which have been declared or ordered effective and pursuant to which securities have been sold, and (y) Withdrawn Registrations);

 

(v)          During the period
starting with the date sixty (60) days prior to the Company’s good faith estimate of the date of filing of, and ending on
a date one hundred eighty (180) days after the effective date of, a Company-initiated registration (or ending on the subsequent
date on which all market stand-off agreements applicable to the offering have terminated); provided that the Company is
actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; or

 

(vi)         If the Initiating
Holders propose to dispose of shares of Registrable Securities that may be registered on Form S-3 pursuant to a request made under
Section 2.3 hereof; or

 

(c)          Deferral.  If
(i) in the good faith judgment of the Board of Directors of the Company, the filing of a registration statement covering the
Registrable Securities would be detrimental to the Company and the Board of Directors of the Company concludes, as a result, that
it is in the best interests of the Company to defer the filing of such registration statement at such time, and (ii) the Company
shall furnish to such Holders a certificate signed by the President of the Company stating that in the good faith judgment of the
Board of Directors of the Company, it would be detrimental to the Company for such registration statement to be filed in the near
future and that it is, therefore, in the best interests of the Company to defer the filing of such registration statement, then
(in addition to the limitations set forth in Section 2.1(b)(v) above) the Company shall have the right to defer such filing
for a period of not more than one hundred eighty (180) days after receipt of the request of the Initiating Holders, and, provided
further, that the Company shall not defer its obligation in this manner more than twice in any twelve-month period.

 

(d)          Other Shares.  The registration statement
filed pursuant to the request of the Initiating Holders may, subject to the provisions of Section 2.1(e), include Other
Shares, and may include securities of the Company being sold for the account of the Company.

 

(e)          Underwriting.
Unless the Registrable Securities may be registered by the Company on Form S-3, the right of any Holder to include all or
any portion of its Registrable Securities in a registration pursuant to this Section 2.1 shall be conditioned upon
such Holder’s participation in an underwriting and the

 

    	-4-

    	 

    

 

inclusion of such Holder’s
Registrable Securities to the extent provided herein. If the Company shall request inclusion in any registration pursuant to Section 2.1
of securities being sold for its own account, or if other persons shall request inclusion in any registration pursuant to Section 2.1,
the Initiating Holders shall, on behalf of all Holders, offer to include such securities in the underwriting and such offer shall
be conditioned upon the participation of the Company or such other persons in such underwriting and the inclusion of the Company’s
and such person’s other securities of the Company and their acceptance of the further applicable provisions of this Section 2
(including Section 2.10). The Company shall (together with all Holders and other persons proposing to distribute their
securities through such underwriting) enter into an underwriting agreement in customary form with the representative of the underwriter
or underwriters selected for such underwriting by the Company, which underwriters are reasonably acceptable to a majority-in-interest
of the Initiating Holders.

 

Notwithstanding any other
provision of this Section 2.1, if the underwriters advise the Initiating Holders in writing that marketing factors
require a limitation on the number of shares to be underwritten, the number of Registrable Securities and Other Shares that may
be so included shall be allocated as follows: (i) first, among all Holders requesting to include Registrable Securities in such
registration statement based on the pro rata percentage of Registrable Securities held by such Holders, assuming conversion and
(ii) second, to the Other Selling Stockholders.

 

If a person who has requested
inclusion in such registration as provided above does not agree to the terms of any such underwriting, such person shall be excluded
therefrom by written notice from the Company, the underwriter or the Initiating Holders. The securities so excluded shall also
be withdrawn from registration. Any Registrable Securities or other securities excluded or withdrawn from such underwriting shall
also be withdrawn from such registration. If shares are so withdrawn from the registration and if the number of shares to be included
in such registration was previously reduced as a result of marketing factors pursuant to this Section 2.1(e), then
the Company shall then offer first to all Holders and, second to Other Selling Stockholders who have retained rights to include
securities in the registration the right to include additional Registrable Securities or, as applicable, Other Shares in the registration
in an aggregate amount equal to the number of shares so withdrawn, with such shares to be allocated first among such Holders and
second among other Selling Stockholders requesting additional inclusion, as set forth above.

 

2.2          Company Registration.

 

(a)          Company Registration.
If the Company shall determine to register any of its securities either for its own account or the account of a security holder
or holders, other than a registration pursuant to Section 2.1 or 2.3, a registration relating solely to employee
benefit plans, a registration relating to the offer and sale of debt securities, a registration relating to a corporate reorganization
or other Rule 145 transaction, or a registration on any registration form that does not permit secondary sales, the Company will:

 

(i)           promptly give written
notice of the proposed registration to all Holders; and

 

(ii)          use its commercially
reasonable efforts to include in such registration (and any related qualification under blue sky laws or other compliance), except
as set forth in Section 2.2(b) below, and in any underwriting involved therein, all of such Registrable Securities
as are specified in a written request or requests made by any Holder or Holders received by the Company within ten (10) days after
such written notice from the Company is mailed or delivered. Such written request may specify all or a part of a Holder’s
Registrable Securities.

 

    	-5-

    	 

    

 

(b)          Underwriting.
If the registration of which the Company gives notice is for a registered public offering involving an underwriting, the Company
shall so advise the Holders as a part of the written notice given pursuant to Section 2.2(a)(i). In such event, the
right of any Holder to registration pursuant to this Section 2.2 shall be conditioned upon such Holder’s participation
in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided
herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company and the
Other Selling Stockholders other holders of securities of the Company with registration rights to participate therein distributing
their securities through such underwriting) enter into an underwriting agreement in customary form with the representative of the
underwriter or underwriters selected by the Company.

 

Notwithstanding any other
provision of this Section 2.2, if the underwriters advise the Company in writing that marketing factors require a limitation
on the number of shares to be underwritten, the underwriters may (subject to the limitations set forth below) exclude all Registrable
Securities from, or limit the number of Registrable Securities to be included in, the registration and underwriting. The Company
shall so advise all holders of securities requesting registration, and the number of shares of securities that are entitled to
be included in the registration and underwriting shall be allocated, as follows: (i) first, to the Company for securities being
sold for its own account, (ii) second, to the Holders requesting to include Registrable Securities in such registration statement
based on the pro rata percentage of Registrable Securities held by such Holders, assuming conversion and (iii) third, to the Other
Selling Stockholders requesting to include Other Shares in such registration statement based on the pro rata percentage of Other
Shares held by such Other Selling Stockholders, assuming conversion.

 

If a person who has requested
inclusion in such registration as provided above does not agree to the terms of any such underwriting, such person shall also be
excluded therefrom by written notice from the Company or the underwriter. The Registrable Securities or other securities so excluded
shall also be withdrawn from such registration. Any Registrable Securities or other securities excluded or withdrawn from such
underwriting shall be withdrawn from such registration.

 

(c)          Right to Terminate
Registration.  The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.2
prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration.

 

2.3          Registration
on Form S-3. 

 

(a)          Request for Form
S-3 Registration.  After its initial public offering, the Company shall use its commercially reasonable efforts to qualify for
registration on Form S-3 or any comparable or successor form or forms. After the Company has qualified for the use of Form S-3,
in addition to the rights contained in the foregoing provisions of this Section 2 and subject to the conditions set
forth in this Section 2.3, if the Company shall receive from a Holder or Holders of Registrable Securities a written
request that the Company effect any registration on Form S-3 or any similar short form registration statement with respect to all
or part of the Registrable Securities (such request shall state the number of shares of Registrable Securities to be disposed of
and the intended methods of disposition of such shares by such Holder or Holders), the Company will take all such action with respect
to such Registrable Securities as required by Section 2.1(a)(i) and (ii).

 

(b)          Limitations on
Form S-3 Registration.  The Company shall not be obligated to effect, or take any action to effect, any such registration pursuant
to this Section 2.3:

 

    	-6-

    	 

    

 

(i)           In the circumstances
described in either Sections 2.1(b)(i), 2.1(b)(iii) or 2.1(b)(v);

 

(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) on Form S-3 at an aggregate price to the public of less than $2,000,000; or

 

(iii)         If, in a given
twelve-month period, the Company has effected two (2) such registrations in such period.

 

(c)          Deferral.  The
provisions of Section 2.1(c) shall apply to any registration pursuant to this Section 2.3.

 

(d)          Underwriting.  If the Holders of Registrable Securities requesting registration under this Section 2.3 intend to distribute the Registrable
Securities covered by their request by means of an underwriting, the provisions of Sections 2.1(e) shall apply to such
registration. Notwithstanding anything contained herein to the contrary, registrations effected pursuant to this Section 2.3
shall not be counted as requests for registration or registrations effected pursuant to Section 2.1.

 

2.4          Expenses of Registration.  All Registration Expenses incurred in connection with registrations pursuant to Sections 2.1, 2.2 and 2.3
hereof shall be borne by the Company; provided, however, that the Company shall not be required to pay for any expenses
of any registration proceeding begun pursuant to Sections 2.1 and 2.3 if the registration request is subsequently
withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered or because a sufficient number
of Holders shall have withdrawn so that the minimum offering conditions set forth in Sections 2.1 and 2.3 are no
longer satisfied (in which case all participating Holders shall bear such expenses pro rata among each other based on the number
of Registrable Securities requested to be so registered), unless the Holders of a majority of the Registrable Securities agree
to forfeit their right to a demand registration pursuant to Section 2.1. All Selling Expenses relating to securities
registered on behalf of the Holders shall be borne by the holders of securities included in such registration pro rata among each
other on the basis of the number of Registrable Securities so registered.

 

2.5          Registration
Procedures.  In the case of each registration effected by the Company pursuant to Section 2, the Company will
keep each Holder advised in writing as to the initiation of each registration and as to the completion thereof. At its expense,
the Company will use its commercially reasonable efforts to:

 

(a)          Keep such registration
effective for a period of ending on the earlier of the date which is sixty (60) days from the effective date of the registration
statement or such time as the Holder or Holders have completed the distribution described in the registration statement relating
thereto;

 

(b)          Prepare and file with
the Commission 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 Securities Act with respect to the disposition of all securities
covered by such registration statement for the period set forth in subsection (a) above;

 

(c)          Furnish such number
of prospectuses, including any preliminary prospectuses, and other documents incident thereto, including any amendment of or supplement
to the prospectus, as a Holder from time to time may reasonably request;

 

    	-7-

    	 

    

 

(d)          Use its reasonable
best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue
Sky laws of such jurisdiction 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)          Notify each seller
of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to
be delivered under the Securities Act of 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 or incomplete in light of the circumstances then existing,
and following such notification promptly prepare and furnish to such seller a reasonable number of copies of a supplement to or
an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such shares, such prospectus
shall not include 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 not misleading or incomplete in light of the circumstances then existing;

 

(f)           Provide a transfer
agent and registrar for all Registrable Securities registered pursuant to such registration statement and a CUSIP number for all
such Registrable Securities, in each case not later than the effective date of such registration;

 

(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)          In connection with
any underwritten offering pursuant to a registration statement filed pursuant to Section 2.1 hereof, enter into an
underwriting agreement in form reasonably necessary to effect the offer and sale of Common Stock, provided such underwriting agreement
contains reasonable and customary provisions, and provided further, that each Holder participating in such underwriting shall also
enter into and perform its obligations under such an agreement.

 

2.6          Indemnification. 

 

(a)          To the extent permitted
by law, the Company will indemnify and hold harmless each Holder, each of its officers, directors and partners, legal counsel and
accountants and each person controlling such Holder within the meaning of Section 15 of the Securities Act, with respect to
which registration, qualification or compliance has been effected pursuant to this Section 2, and each underwriter,
if any, and each person who controls within the meaning of Section 15 of the Securities Act any underwriter, against all expenses,
claims, losses, damages and liabilities (or actions, proceedings or settlements in respect thereof) arising out of or based on:
(i) any untrue statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any registration
statement, any prospectus included in the registration statement, any issuer free writing prospectus (as defined in Rule 433
of the Securities Act), any issuer information (as defined in Rule 433 of the Securities Act) filed or required to be filed
pursuant to Rule 433(d) under the Securities Act or any other document incident to any such registration, qualification or
compliance prepared by or on behalf of the Company or used or referred to by the Company, (ii) any 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 Securities Act, any state securities laws or any rule or regulation thereunder
applicable to the Company and relating to action or inaction required of the Company in connection with any offering covered by
such registration, qualification

 

    	-8-

    	 

    

 

or compliance, and the Company
will reimburse each such Holder, each of its officers, directors, partners, legal counsel and accountants and each person controlling
such Holder, each such underwriter and each person who controls any such underwriter, for any legal and any other expenses reasonably
incurred in connection with investigating and defending or settling any such claim, loss, damage, liability or action; provided
that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability, or action arises
out of or is based on any untrue statement or omission based upon written information furnished to the Company by such Holder,
any of such Holder’s officers, directors, partners, legal counsel or accountants, any person controlling such Holder, such
underwriter or any person who controls any such underwriter, and stated to be specifically for use therein; and provided,
further that, the indemnity agreement contained in this Section 2.6(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).

 

(b)          To the extent permitted
by law, each Holder will, if Registrable Securities held by such Holder are included in the securities as to which such registration,
qualification or compliance is being effected, indemnify and hold harmless the Company, each of its directors, officers, partners,
legal counsel and accountants and each underwriter, if any, of the Company’s securities covered by such a registration statement,
each person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, each other
such Holder, and each of their officers, directors and partners, and each person controlling each other such Holder, against all
claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on: (i) any untrue statement
(or alleged untrue statement) of a material fact contained or incorporated by reference in any prospectus, offering circular or
other document (including any related registration statement, notification, or the like) incident to any such registration, qualification
or compliance, or (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse the Company and such Holders, directors, officers,
partners, legal counsel and accountants, persons, underwriters, or control persons for any legal or any other expenses reasonably
incurred in connection with investigating or defending any such claim, loss, damage, liability or action, in each case to the extent,
but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such
registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written information
furnished to the Company by such Holder and stated to be specifically for use therein; provided, however, that the
obligations of such Holder hereunder shall not apply to amounts paid in settlement of any such claims, losses, damages or liabilities
(or actions in respect thereof) if such settlement is effected without the consent of such Holder (which consent shall not be unreasonably
withheld); and provided that in no event shall any indemnity under this Section 2.6 exceed the gross proceeds
from the offering received by such Holder, except in the case of fraud or willful misconduct by such Holder.

 

(c)          Each party entitled
to indemnification under this Section 2.6 (the “Indemnified Party”) shall give notice
to the party required to provide indemnification (the “Indemnifying Party”) promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party
to assume the defense of such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party,
who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose
approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at such party’s expense;
and provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve
the Indemnifying Party of its obligations under this Section 2.6, to the extent such failure is not prejudicial. No
Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent
to entry of any judgment or enter into any settlement that does not

 

    	-9-

    	 

    

 

include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such
claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying
Party may reasonably request in writing and as shall be reasonably required in connection with defense of such claim and litigation
resulting therefrom.

 

(d)          If the indemnification
provided for in this Section 2.6 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, knowledge, access to information, and opportunity to
correct or prevent such statement or omission. No person or entity guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person or entity who was
not guilty of such fraudulent misrepresentation.

 

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

 

2.7          Information by
Holder.  Each Holder of Registrable Securities shall furnish to the Company such information regarding such Holder and
the distribution proposed by such Holder as the Company may reasonably request in writing and as shall be reasonably required in
connection with any registration, qualification, or compliance referred to in this Section 2.

 

2.8          Restrictions
on Transfer.

 

(a)          The holder of each
certificate representing Registrable Securities by acceptance thereof agrees to comply in all respects with the provisions of this
Section 2.8. Each Holder agrees not to make any sale, assignment, transfer, pledge or other disposition of all or any
portion of the Restricted Securities, or any beneficial interest therein, unless and until the transferee thereof has agreed in
writing for the benefit of the Company to take and hold such Restricted Securities subject to, and to be bound by, the terms and
conditions set forth in this Agreement, including, without limitation, this Section 2.8 and Section 2.10,
and:

 

(i)           There is then in
effect a registration statement under the Securities Act covering such proposed disposition and the disposition is made in accordance
with the registration statement; or

 

(ii)          The Holder shall
have given prior written notice to the Company of the Holder’s intention to make such disposition and shall have furnished
the Company with a detailed description of the manner and circumstances of the proposed disposition, and, if requested by the Company,
the Holder

 

    	-10-

    	 

    

 

shall have furnished the
Company, at its expense, with (i) an opinion of counsel reasonably satisfactory to the Company to the effect that such disposition
will not require registration of such Restricted Securities under the Securities Act or (ii) a “no action” letter
from the Commission to the effect that the transfer of such securities without registration will not result in a recommendation
by the staff of the Commission that action be taken with respect thereto, whereupon the holder of such Restricted Securities shall
be entitled to transfer such Restricted Securities in accordance with the terms of the notice delivered by the Holder to the Company.

 

(b)          Each certificate representing
Registrable Securities shall (unless otherwise permitted by the provisions of this Agreement) be stamped or otherwise imprinted
with a legend substantially similar to the following (in addition to any legend required under applicable state securities laws):

 

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER
THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFROM. THE
ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER,
PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

THE SHARES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, INCLUDING A LOCK-UP PERIOD IN THE EVENT OF A PUBLIC
OFFERING, AS SET FORTH IN AN INVESTORS’ RIGHTS AGREEMENT, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE
COMPANY.

 

The Holders consent to
the Company making a notation on its records and giving instructions to any transfer agent of the Restricted Securities in order
to implement the restrictions on transfer established in this Section 2.8.

 

(c)          The first legend referring
to federal and state securities laws identified in Section 2.8(c) hereof stamped on a certificate evidencing the Restricted
Securities and the stock transfer instructions and record notations with respect to the Restricted Securities shall be removed
and the Company shall issue a certificate without such legend to the holder of Restricted Securities if (i) those securities
are registered under the Securities Act, or (ii) such holder provides the Company with an opinion of counsel reasonably acceptable
to the Company to the effect that a sale or transfer of those securities may be made without registration or qualification.

 

2.9          Rule 144
Reporting.  With a view to making available the benefits of certain rules and regulations of the Commission that may permit
the sale of the Restricted Securities to the public without registration, the Company agrees to use its commercially reasonable
efforts to:

 

(a)          Make and keep adequate
current public information with respect to the Company available in accordance with Rule 144 under the Securities Act, at
all times from and after ninety (90) days

 

    	-11-

    	 

    

 

following the effective date
of the first registration under the Securities Act filed by the Company for an offering of its securities to the general public;

 

(b)          File with the Commission
in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act at any
time after it has become subject to such reporting requirements; and

 

(c)          So long as a Holder
owns any Restricted Securities, furnish to the Holder forthwith upon written request a written statement by the Company as to its
compliance with the reporting requirements of Rule 144 (at any time from and after ninety (90) days following the effective
date of the first registration statement filed by the Company for an offering of its securities to the general public), and of
the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), a copy of the
most recent annual or quarterly report of the Company, and such other reports and documents so filed as a Holder may reasonably
request in availing itself of any rule or regulation of the Commission allowing a Holder to sell any such securities without registration.

 

2.10        Market Stand-Off
Agreement.  Each Holder hereby agrees that such Holder shall not sell or otherwise transfer, make any short sale of, grant
any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, of any
Common Stock (or other securities) of the Company held by such Holder (other than those included in the registration) during the
one hundred eighty (180) day period following the effective date of a registration statement of the Company filed under the Securities
Act (or such other period as may be requested by the Company or an underwriter to accommodate regulatory
restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions,
including, but not limited to, the restrictions contained in NASD Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor
provisions or amendments thereto). The obligations described in this Section 2.10 shall not apply to a registration
relating solely to employee benefit plans on Form S-l or Form S-8 or similar forms that may be promulgated in the future, or a
registration relating solely to a transaction on Form S-4 or similar forms that may be promulgated in the future. The Company may
impose stop-transfer instructions and may stamp each such certificate with the second legend set forth in Section 2.8(c)
hereof with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of such
one hundred eighty (180) day (or other) period. Each Holder agrees to execute a market standoff agreement with said underwriters
in customary form consistent with the provisions of this Section 2.10.

 

2.11        Delay of Registration. 
No Holder shall have any right to take any action to restrain, enjoin, or otherwise delay any registration as the result of any
controversy that might arise with respect to the interpretation or implementation of this Section 2.

 

2.12        Transfer or
Assignment of Registration Rights.  The rights to cause the Company to register securities granted to a Holder by the
Company under this Section 2 may be transferred or assigned by a Holder only to a transferee or assignee of not less
than 100,000 shares of Registrable Securities (as presently constituted and subject to subsequent adjustments for stock splits,
stock dividends, reverse stock splits, and the like); provided that (i) such transfer or assignment of Registrable
Securities is effected in accordance with the terms of Section 2.8 hereof, and applicable securities laws, (ii) the
Company is given written notice prior to said transfer or assignment, stating the name and address of the transferee or assignee
and identifying the securities with respect to which such registration rights are intended to be transferred or assigned, and (iii) the
transferee or assignee of such rights assumes in writing the obligations of such Holder under this Agreement, including without
limitation the obligations set forth in Section 2.10.

 

    	-12-

    	 

    

 

2.13        Termination
of Registration Rights.  The right of any Holder to request registration or inclusion in any registration pursuant to
Section 2.1, 2.2 or 2.3 shall terminate on the earlier of (i) such date, on or after the closing
of the Company’s first registered public offering of Common Stock, on which all shares of Registrable Securities held or
entitled to be held upon conversion by such Holder may immediately be sold under Rule 144 during any ninety (90) day period,
and (ii) five (5) years after the closing of the Company’s Initial Public Offering.

 

Section 3

Additional Covenants
of the Company

 

The Company hereby covenants
and agrees, as follows:

 

3.1          Basic Financial
Information and Inspection Rights. The Company will furnish the following reports to each Holder who owns at least 10,000 Shares
and/or Conversion Stock (as presently constituted and subject to subsequent adjustments for stock splits, stock dividends, reverse
stock splits, and the like):

 

(a)          as soon as practicable
after the end of each fiscal year of the Company, and in any event within ninety (90) days after the end of each fiscal year of
the Company (the “Audit Period”), a consolidated balance sheet of the Company and its subsidiaries, if any,
as at the end of such fiscal year, and consolidated statements of income and cash flows of the Company and its subsidiaries, if
any, for such year, prepared in accordance with U.S. generally accepted accounting principles consistently applied and compared
against the Company’s operating plan for such year, and which, if requested in writing, not more than ninety (90) days before
and not more than thirty (30) days after the end of the previous fiscal year, by those Investors holding at least 50% of the then
outstanding Shares and/or Conversion Shares, shall be audited by a nationally recognized accounting firm (and, in which case, the
Audit Period shall be extended to 180 days);

 

(b)          As soon as practicable
after the end of the first, second and third quarterly accounting periods in each fiscal year of the Company, and in any event
within forty-five (45) days after the end of the first, second, and third quarterly accounting periods in each fiscal year of the
Company, an unaudited consolidated balance sheet of the Company and its subsidiaries, if any, as of the end of each such quarterly
period, and unaudited consolidated statements of income and cash flows of the Company and its subsidiaries, if any, for such period,
prepared in accordance with U.S. generally accepted accounting principles consistently applied, subject to changes resulting from
normal year-end audit adjustments; and

 

(c)          not more than ninety
(90) days and not less than thirty (30) days prior to the end of the previous fiscal year, an annual operating plan of the Company
and its subsidiaries, if any.

 

3.2          Actions Requiring
Board Consent and Consent of Holders. For so long as at least twenty-five percent (25%) of the shares of Series A Preferred
Stock originally issued by the Company remain outstanding, the Company shall not, without first obtaining the consent of at least
a majority of its Board of Directors and each Holder (as defined below):

 

(a)          repurchase or redeem
any securities or debt of the Company other than (i) pursuant to the exercise of redemption rights set forth in the Company’s
articles of incorporation, (ii) to the extent such debt is due in accordance with its terms, or (iii) in connection with repurchases
at cost or less pursuant to employment or consulting agreements approved by the Board;

 

    	-13-

    	 

    

 

(b)          liquidate, dissolve,
or wind up the Company, or enter into any merger or other corporate reorganization that results in a change of control of the Company,
or any transaction in which all or substantially all of the significant assets of the Company are sold;

 

(c)          amend or waive any
provision of the Company’s Certificate of Incorporation or Bylaws;

 

(d)          increase or decrease
the authorized size of the Board

 

(e)          effect a reclassification,
reorganization or recapitalization of the outstanding capital stock of the Company;

 

(f)           pay or declare any
dividend on any shares of Common or Preferred Stock;

 

(g)          acquire another company
or the assets of another company;

 

(h)          incurr any indebtedness,
or permit any liens or encumbrances in connection with any indebtedness, in excess of $100,000 to be placed on the assets of the
Company;

 

(i)           issue any Common Stock
or Preferred Stock except pursuant to any employee stock or option plan;

 

(j)           approve the Company’s
annual operating budget;

 

(k)          enter into or amend
any material contract which creates payment obligations of the Company exceeding $100,000;

 

(l)           increase the number
of shares reserved for issuance pursuant to any employee stock or option plan;

 

(m)         intentionally deviate
from the expense levels included in the Approved Operating Plan by more than 20% for any material line item;

 

(n)          enter into or be a
party to any transaction with any director, officer or employee of the Company or any “associate” (as defined in Rule
12b-2 promulgated under the Exchange Act) of any such person except transactions made in the ordinary course of business and pursuant
to reasonable requirements of the Company’s business and upon fair and reasonable terms that are approved by a majority of
the Board of Directors, or transactions resulting in payments to or by the Company in an amount less than $10,000 per year; or

 

(o)          materially change
the salary or compensation of any officer of the Company;

 

(p)          make any capital expenditures
in excess of 110% of budgeted capital expenditures;

 

(q)          change the Company’s
independent public accountants;

 

(r)           adopt or amend any
employment contract with Company officers and senior executive managers with authority equivalent to that of officers (“Senior
Management”), or make any material change in salary or other compensation of Senior Management;

 

    	-14-

    	 

    

 

(s)          enter into any joint
venture or partnership, or otherwise establish any non-wholly owned subsidiaries;

 

(t)          expand into any business
not related to the Company’s then current business.

 

3.3          D&O Insurance. 
As soon as practicable following the date hereof, the Company will obtain Directors & Officers’ liability insurance with
terms and policy limits satisfactory to the Board.

 

3.4          Key Person Life
Insurance.  As soon as practicable following the date hereof, the Company will obtain customary Key Person Life Insurance
on Bob McRae, payable to the Company, with terms and policy limits satisfactory to the Board but not less than $3,000,000.

 

3.5          Confidentiality. 
Anything in this Agreement to the contrary notwithstanding, no Holder by reason of this Agreement shall have access to any trade
secrets or classified information of the Company. The Company shall not be required to comply with any information rights of Section 3
in respect of any Holder whom the Company reasonably determines to be a competitor or an officer, employee, director or holder
of more than ten percent (10%) of a competitor. Each Holder acknowledges that the information received by them pursuant to this
Agreement may be confidential and for its use only, and it will not use such confidential information in violation of the Exchange
Act or reproduce, disclose or disseminate such information to any other person (other than its employees or agents having a need
to know the contents of such information, and its attorneys), except in connection with the exercise of rights under this Agreement,
unless the Company has made such information available to the public generally.

 

3.6          Termination of
Covenants.  The Company’s obligations set forth in this Section 3 shall terminate and be of no further
force and effect after the closing of the Company’s Initial Public Offering.

 

Section 4

Right of First Refusal

 

4.1          Right of First
Refusal to Holders.  The Company hereby grants to each Holder the right of first refusal to purchase its pro rata share
of New Securities (as defined in this Section 4.1(a)) which the Company may, from time to time, propose to sell and
issue after the date of this Agreement. A Holder’s pro rata share, for purposes of this right of first refusal, is equal
to the ratio of (a) the number of shares of Common Stock owned by such Holder immediately prior to the issuance of New Securities
(assuming full conversion of the Shares and exercise of all outstanding convertible securities, rights, options and warrants, directly
or indirectly, into Common Stock held by said Holder) to (b) the total number of shares of Common Stock outstanding immediately
prior to the issuance of New Securities (assuming full conversion of the Shares and exercise of all outstanding convertible securities,
rights, options and warrants, directly or indirectly, held by all of the Holders).

 

(a)          “New Securities”
shall mean any capital stock (including Common Stock and/or Preferred Stock) of the Company whether now authorized or not, and
rights, convertible securities, options or warrants to purchase such capital stock, and securities of any type whatsoever that
are, or may become, exercisable or convertible into capital stock; provided that the term “New Securities”
does not include:

 

(i)           the Shares and
the Conversion Stock;

 

(ii)          Common Stock issued
or issuable to officers, employees, directors, consultants, placement agents, and other service providers of the Company (or any
subsidiary) pursuant to

 

    	-15-

    	 

    

 

stock grants, option plans,
purchase plans, agreements or other employee stock incentive programs or arrangements approved by the Board of Directors of the
Company;

 

(iii)         securities issued
pursuant to the conversion or exercise of any outstanding convertible or exercisable securities as of this date of this Agreement;

 

(iv)         securities issued
or issuable as a dividend or distribution on Preferred Stock of the Company or pursuant to any event for which adjustment is made
pursuant to paragraph 4(e), 4(f) or 4(g) of the Articles of Incorporation of the Company;

 

(v)          securities offered
pursuant to a registered public offering under the Securities Act;

 

(vi)         securities issued
or issuable pursuant to the acquisition of another corporation by the Company by merger, purchase of substantially all of the assets
or other reorganization or to a joint venture agreement, provided, that such issuances are approved by the Board of Directors
of the Company;

 

(vii)        securities issued
or issuable to banks, equipment lessors or other financial institutions pursuant to a commercial leasing or debt financing transaction
approved by the Board of Directors of the Company;

 

(viii)       shares of Common
Stock issued or issuable in connection with any settlement of any action, suit, proceeding or litigation approved by the Board
of Directors;

 

(ix)          securities issued
or issuable in connection with sponsored research, collaboration, technology license, development, OEM, marketing or other similar
agreements or strategic partnerships approved by the Board of Directors of the Company;

 

(x)          securities issued
to suppliers or third party service providers in connection with the provision of goods or services pursuant to transactions approved
by the Board of Directors of the Company;

 

(xi)         shares of Series
A Preferred Stock and warrants exercisable therefor (and the shares issued and issuable upon exercise of such warrants (the “Warrant
Shares”), and the Common Stock issuable upon conversion of the Shares and the Warrant Shares) issued pursuant to the
Subscription Agreements, whether entered into prior to or after the date hereof; and

 

(xii)         any right, option
or warrant to acquire any security convertible into the securities excluded from the definition of New Securities pursuant to subsections (i)
through (x) above.

 

(b)          In the event the Company
proposes to undertake an issuance of New Securities, it shall give each Holder written notice of its intention, describing the
type of New Securities, and their price and the general terms upon which the Company proposes to issue the same. Each Holder shall
have ten (10) business days after any such notice is mailed or delivered to agree to purchase such Holder’s pro rata share
of such New Securities for the price and upon the terms specified in the notice by giving written notice to the Company, in substantially
the form attached hereto as Schedule 1, and stating therein the quantity of New Securities to be purchased.

 

    	-16-

    	 

    

 

(c)          In the event the Holders
fail to exercise fully the right of first refusal within said ten (10) day period (the “Election Period”),
the Company shall have ninety (90) days thereafter to sell or enter into an agreement (pursuant to which the sale of New Securities
covered thereby shall be closed, if at all, within ninety (90) days from the date of said agreement) to sell that portion of the
New Securities with respect to which the Holders’ right of first refusal option set forth in this Section 4.1
was not exercised, at a price and upon terms no more favorable to the purchasers thereof than specified in the Company’s
notice to Holders delivered pursuant to Section 4.1(b). In the event the Company has not sold within such ninety (90)
day period following the Election Period, or such ninety (90) day period following the date of said agreement, the Company shall
not thereafter issue or sell any New Securities, without first again offering such securities to the Holders in the manner provided
in this Section 4.1.

 

(d)          The right of first
refusal granted under this Agreement shall expire upon, and shall not be applicable to the first to occur of (x) the Company’s
Initial Public Offering, or (y) five years after the date of this Agreement.

 

Section 5

Miscellaneous

 

5.1          Amendment. 
Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated
other than by a written instrument referencing this Agreement and signed by the Company, each of the Holders, and the Holders holding
at least a majority of the Registrable Securities (excluding any of such shares that have been sold to the public or pursuant to
Rule 144); provided, however, that any Investor purchasing Shares of Series A Preferred Stock pursuant to a Subscription
Agreement entered into after the date hereof may become a party to this Agreement by executing a counterpart of this Agreement,
without any amendment of this Agreement, pursuant to this paragraph or any consent or approval of any other Investor. Any such
amendment, waiver, discharge or termination effected in accordance with this paragraph shall be binding upon each Holder and each
future holder of all such securities of Holder. Each Holder acknowledges that by the operation of this paragraph, the Holders and
the holders of a majority of the Registrable Securities (excluding any of such shares that have been sold to the public or pursuant
to Rule 144) will have the right and power to diminish or eliminate all rights of such Holder under this Agreement.

 

5.2          Notices. 
All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified
mail, postage prepaid, sent by facsimile or electronic mail or otherwise delivered by hand or by messenger addressed:

 

(a)          if to an Investor,
at the Investor’s address, facsimile number or electronic mail address as shown in the Company’s records, as may be
updated in accordance with the provisions hereof;

 

(b)          if to any Holder,
at such address, facsimile number or electronic mail address as shown in the Company’s records, or, until any such holder
so furnishes an address, facsimile number or electronic mail address to the Company, then to and at the address of the last holder
of such shares for which the Company has contact information in its records; or

 

(c)          if to the Company,
one copy should be sent to 256 Palm Valley Blvd, #109, San Jose, CA 95123, Attn: Chief Executive Officer, or at such other address
as the Company shall have furnished to the Investors, with a copy to J. Casey McGlynn, WSGR, 650 Page Mill Road, Palo Alto, California
94304.

 

    	-17-

    	 

    

 

Each such notice or other
communication shall for all purposes of this Agreement be treated as effective or having been given when delivered if delivered
personally, or, if sent by mail, at the earlier of its receipt or 72 hours after the same has been deposited in a regularly maintained
receptacle for the deposit of the United States mail, addressed and mailed as aforesaid or, if sent by facsimile, upon confirmation
of facsimile transfer or, if sent by electronic mail, when directed to the electronic mail address set forth on the Schedule of
Investors.

 

5.3          Governing Law. 
This Agreement shall be governed in all respects by the internal laws of the State of Oregon as applied to agreements entered into
among Oregon residents to be performed entirely within Oregon, without regard to principles of conflicts of law.

 

5.4          Successors and
Assigns.  This Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned, transferred,
delegated or sublicensed by any Investor without the prior written consent of the Company. Any attempt by an Investor without such
permission to assign, transfer, delegate or sublicense any rights, duties or obligations that arise under this Agreement shall
be void. Subject to the foregoing and except as otherwise provided herein, the provisions of this Agreement shall inure to the
benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.

 

5.5          Entire Agreement. 
This Agreement and the exhibits hereto constitute the full and entire understanding and agreement between the parties with regard
to the subjects hereof. No party hereto shall be liable or bound to any other party in any manner with regard to the subjects hereof
or thereof by any warranties, representations or covenants except as specifically set forth herein.

 

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

 

5.7          Severability. 
If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement,
and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision
that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable
provision. The balance of this Agreement shall be enforceable in accordance with its terms.

 

5.8          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. All references in this Agreement to sections, paragraphs and exhibits shall, unless otherwise provided, refer to
sections and paragraphs hereof and exhibits attached hereto.

 

    	-18-

    	 

    

 

5.9          Counterparts. 
This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties that execute
such counterparts, and all of which together shall constitute one instrument.

 

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

 

5.11        Jurisdiction;
Venue.  With respect to any disputes arising out of or related to this Agreement, the parties consent to the exclusive
jurisdiction of, and venue in, the state and federal courts in Multanomah County in the State of Oregon.

 

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

 

5.13        Termination
Upon Change of Control.  Notwithstanding anything to the contrary herein, this Agreement (excluding any then-existing
obligations) shall terminate upon (a) the acquisition of the Company by another entity by means of any transaction or series
of related transactions to which the Company is party (including, without limitation, any stock acquisition, reorganization, merger
or consolidation but excluding any sale of stock for capital raising purposes) other than a transaction or series of transactions
in which the holders of the voting securities of the Company outstanding immediately prior to such transaction continue to retain
(either by such voting securities remaining outstanding or by such voting securities being converted into voting securities of
the surviving entity), as a result of shares in the Company held by such holders prior to such transaction, at least fifty percent
(50%) of the total voting power represented by the voting securities of the Corporation or such surviving entity outstanding immediately
after such transaction or series of transactions; or (b) a sale, lease or other conveyance of all substantially all of the
assets of the Company.

 

5.14        Conflict. 
In the event of any conflict between the terms of this Agreement and the Company’s Articles of Incorporation or its Bylaws,
the terms of the Company’s Articles of Incorporation or its Bylaws, as the case may be, will control.

 

5.15        Attorneys’
Fees.  In the event that any suit or action is instituted to enforce any provision in this Agreement, the prevailing party
in such dispute shall be entitled to recover from the losing party such reasonable fees and expenses of attorneys and accountants,
which shall include, without limitation, all fees, costs and expenses of appeals.

 

5.16        Aggregation
of Stock.  All securities held or acquired by affiliated entities (including affiliated venture capital funds) or persons
shall be aggregated together for purposes of determining the availability of any rights under this Agreement.

 

(signature page follows)

 

    	-19-

    	 

    

 

The parties hereto have
executed this Investors’ Rights Agreement effective as of the day and year first above written.

 

	 	SEMLER SCIENTIFIC, INC.
	 	an Oregon corporation
	 	 	 
	 	By:	 

 

	 	Name: 	 
	 	 	 
	 	Title: 	 

 

(Signature Page to Semler Scientific,
Inc. Series A Preferred Stock Financing Investors’ Rights Agreement)

 

    	 

    	 

    

 

	 	INVESTOR:
	 	 
	 	 
	 	(Print investor name)
	 	 
	 	 
	 	(Signature)
	 	 
	 	 
	 	(Print name of signatory, if signing for an entity)
	 	 
	 	 
	 	(Print title of signatory, if signing for an entity)

 

(Signature Page to Semler Scientific, Inc.
Series A Preferred Stock Financing Investors’ Rights Agreement)

 

    	 

    	 

    

 

EXHIBIT A

 

INVESTORS

 

Herbert J. Semler and Shirley L. Semler, as co-trustees
of the Semler Trust

Eric Semler

Chang Family Trust, William H.C. Chang and Diana
S. Chang Trustors and Trustees

Irrevocable Trust for Kimberly E. Chang, Betty
C. Shon, Trustee, Dated June 12, 2006

Irrevocable Trust for Kristina C. Chang, Betty
C. Shon, Trustee, Dated June 12, 2006

Irrevocable Trust for Kelly L. Chang, Betty C.
Shon, Trustee, Dated June 12, 2006

William G. Marr Trust Dtd 10/90

Mark Tanoury

Paul Scott

Rob Chess

Ehrenberg Chesler Capital Partners Ltd

Dalal Revocable Trust UA 7/31/1990

Douglas Murphy-Chutorian

Patricia Tanoury

Jean-Jacques Bienaime

Anthony Sun

Cindy Guinasso

Wesley D. Sterman

 

    	 

    	 

    

 

SCHEDULE 1

 

NOTICE AND WAIVER/ELECTION OF

RIGHT OF FIRST REFUSAL

 

I do hereby waive or
exercise, as indicated below, my rights of first refusal under the Investors’ Rights Agreement dated as of June 7, 2012 (the
“Agreement”):

 

	1.	Waiver of 10 days notice period in which to exercise right of first refusal: (please check only
one)

 

	 	(   )	WAIVE in full, on behalf of all Holders, the 10 day notice period provided
to exercise my right of first refusal granted under the Agreement.

 

	 	(   )	DO NOT WAIVE the notice period described above.

 

	2.	Issuance and Sale of New Securities: (please check only one)

 

	 	(   )	WAIVE in full the right of first refusal granted under the Agreement with respect
to the issuance of the New Securities.

 

	 	(   )	ELECT TO PARTICIPATE in $__________ (please provide amount) in New Securities
proposed to be issued by Semler Scientific, Inc., an Oregon corporation, representing LESS than my pro rata portion of the aggregate
of $[_______] in New Securities being offered in the financing.

 

	 	(   )	ELECT TO PARTICIPATE in $__________ in New Securities proposed to be issued
by Semler Scientific, Inc., an Oregon corporation, representing my FULL pro rata portion of the aggregate of $[_______] in New
Securities being offered in the financing.

 

	 	(   )	ELECT TO PARTICIPATE in my full pro rata portion of the aggregate of $[_______]
in New Securities being made available in the financing AND, to the extent available, an additional $__________ (please provide
amount) in New Securities being offered in the financing.

 

Date: ________________

	 	 
	 	(Print investor name)
	 	 
	 	 
	 	(Signature)
	 	 
	 	 
	 	(Print name of signatory, if signing for an entity)
	 	 
	 	 
	 	(Print title of signatory, if signing for an entity)

 

This is neither a commitment to purchase
nor a commitment to issue the New Securities described above. Such issuance can only be made by way of definitive documentation
related to such issuance. The company will supply you with such definitive documentation upon request or if you indicate that you
would like to exercise your first offer rights in whole or in part.

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