Document:

EXHIBIT 10.4

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (the “Agreement”)
made as of May 29, 2013 between Lansal, Inc. d/b/a Hot Mama’s , a Delaware corporation (the “Company”)
with a principal place of business at of 134 Avocado Street, Springfield, Massachusetts, and Matthew Morse (hereinafter
“Morse”), an individual residing at 51 Hop Brook Road, Amherst, Massachusetts.

 

WHEREAS, the
Company is engaged in the business of food manufacturing and distribution under the trade name Hot Mama’s;

 

WHEREAS, the
Company is desirous of employing Morse as its Chairman and Chief Executive Officer; and

 

WHEREAS, Morse
desires to become an employee of the Company subject to terms as set forth herein.

 

NOW, THEREFORE,
in consideration of the promises, the mutual covenants and agreements hereinafter set forth and other good and valuable consideration,
the receipt, adequacy and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.          Employment.

 

(a)          Office
and Duties.   Morse shall have the title of Chairman and Chief Executive Officer of the Company, and shall perform
duties of substantially the same character as those ordinarily performed by executives in similar positions.  Morse agrees he
will travel to the extent reasonably necessary to perform the tasks assigned to him pursuant to this Agreement.

 

(b)          Time
and Efforts.      Morse shall diligently and conscientiously devote his full time and attention and
best efforts in discharging his duties as Chairman and Chief Executive Officer of the Company. Morse hereby confirms that he is
under no contractual commitments inconsistent with this Agreement, and that during the term of this Agreement, he will not render
services directly or indirectly for any other company, firm, entity or person which are inconsistent with this Agreement. Morse
agrees that in the rendering of all services to the Company and in all aspects of his employment hereunder, he will comply in all
material respects with all directives, policies and standards from time to time established by the Company, to the extent they
are not in conflict with this Agreement.

 

2.          Term.
 This Agreement shall be effective as of May 29, 2013 (the “Effective Date”).

 

Unless Morse’s
employment hereunder is terminated earlier pursuant to Section 7, the Initial Term of this Agreement shall be for three
(3) years from the Effective Date and shall automatically renew for additional consecutive Renewal Terms of one (1) year each
unless either party provides notice of termination to the other party at least six (6) months prior to the end of the then-current
term.

 

3.          Compensation.

 

	 	a.	Base Salary. The Company agrees to pay Morse during the Term a base salary at the initial annualized rate of  $ 319,000, subject to all authorized deductions and all withholdings required by federal and state law (the “Base Salary”). The Base Salary will be payable in equal weekly installments via direct deposit to Morse’s bank account or at such times as may be determined by the Company or as may be required by law. Such base salary may be adjusted from time to time based on the performance of Morse, at the sole discretion of the Board of Directors.

 

4.          Expenses.

 

(a)          Reimbursable
Expenses. The Company shall reimburse Morse’s reasonable travel expenses incurred in performing services pursuant to
this Agreement, including meals, lodging, airfare, rental car, bus, train, taxi cab, tolls, fuel and parking. Cell phone expenses
incurred in performing services pursuant to this Agreement will be reimbursed as well, provided that the Company gives prior approval
of the cell phone plan. The Company may, at its option, agree to reimburse Morse for additional reasonable business expenses upon
prior approval by the Company, but is not obligated to do so. Reimbursement will be made only upon presentation by Morse to the
Company of itemized receipts for expenses included with the weekly report described in Section 4(b) .

 

(b)          Weekly
Reporting. For all weeks during which Morse incurs reimbursable expenses pursuant to this Agreement, he shall provide to the
Company on a weekly basis a written report of all such reimbursable expenses incurred (including receipts). Morse’s reimbursement
is payable within seven (7) days after the end of every month following the Company’s receipt of Morse’s weekly report.

 

    	 

    	 

    

 

5.          Vacation
and Sick Time During Employment. Morse shall be entitled to “paid time off” days pursuant to written policies duly
adopted and implemented by the Company.

 

6.          Benefits.
Nothing herein contained shall preclude Morse, to the extent he is otherwise eligible, from participation in all group insurance,
pension, medical expense reimbursement or other fringe benefit plans or programs which the Company may hereafter in its sole and
absolute discretion make available to its Morse, but the Company shall not be required to establish, maintain or continue any such
program or plan. As of the date hereof, and by way of example only, the Company offers Medical and Dental Insurance, Life Insurance
and Long-Term Disability Insurance to its employees, including Morse. Morse will also have the option, at additional cost to him,
to include his spouse and dependent children if any, under the Medical and Dental coverages, and may also elect, at additional
expense, to participate in the Short Term Disability Insurance plan of the Company. This is not meant to be an exhaustive description
of these plans and benefits, which Morse may obtain from the Company human resources administrator for these plans. Further, the
plans and the coverage thereunder is subject to change each benefit year. If any of the plans or benefits described above are terminated
or reduced by the Company as a whole to all of its Morse, such termination or reduction shall not be considered a breach under
this Agreement.

 

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7.         Termination
of Employment. Notwithstanding any other provision of this Agreement, Morse’s employment may be terminated:

 

(a)          For
Cause: At any time by the Company in the event of (i) Morse’s conviction of a felony or a crime involving moral turpitude;
or (ii) the commission of Morse of any act of fraud or intentional misrepresentation. (b)       
By Disability : By the Company upon ten (10) days’ notice to Morse if he should be prevented by illness, accident or
other disability (mental or physical) from discharging duties hereunder for one or more periods totaling six (6) months during
any consecutive twelve (12) month period.

 

(b)          Without
Cause: By the Company at any time without cause, upon two (2) weeks written notice.

 

(c)          By
Morse: By Morse at any time and for any reason, including no reason at all, upon four weeks written notice to the Company.
If Morse provides the Company with advance notice of his intent to terminate, the Company shall have the option, at its sole discretion,
to make Morse’s termination effective at any time prior to the end of such notice period, and will pay Morse his regular
compensation through the end of the four week notice period regardless of the number of days actually worked. Morse expressly acknowledges
and agrees that his termination in such case shall be deemed a termination by Morse of his own accord, rather than a termination
by the Company.

 

(d)          Severance
Benefits. If Morse is terminated by the Company without cause, Morse will be entitled to receive severance benefits equal to
Morse’s regular monthly salary for one (1) year, less applicable withholdings, provided that Morse agrees to release the
Company from any and all claims arising from or related to Morse’s employment relationship with the Company, or such termination,
and executes and does not revoke a release agreement as requested by the Company at the time of such termination. Such payments
shall be made to Morse ratably according to the Company’s standard payroll schedule. Morse shall not be entitled to any severance
benefits in the event of termination for cause, termination by disability, or termination by Morse.

 

8.         Company
Policies. Morse shall abide by the Company’s policies as set forth in this Section 8, and shall sign and abide
by any of the Company’s other standard policies or procedures (including but not limited to its harassment policy) as the
Company deems appropriate, to the extent such policies are consistent with the terms and conditions of continued employment under
this Agreement.

 

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(a)        Proprietary
Information.

 

i.            Definition
of Proprietary Information. Morse acknowledges that, in connection with his services for the Company, Morse has, and shall
continue to acquire, certain information, the preservation and protection of which the Company considers vital to successful operation
of the Company’s business (“Proprietary Information”). Proprietary Information includes, but is not limited to:
all business, marketing or product plans; methods of doing business; financial data; customer, advertiser or supplier lists or
data; customer training methods, information and materials (including without limitation presentations, training materials, white
papers, and training templates); technical or production know-how; patents, trademarks, developments, inventions, and licenses;
information with respect to the needs of the customers served by the Company; trade secrets, processes or procedures; copyrighted
materials (whether by operation of law or through formal filing or registration); and all other types of information possessed
by Morse relative to the activities of the Company which is of a secret or confidential nature. Morse agrees to the terms in this
 Section 8 as a condition of his employment with the Company, whether or not he is expected to create products of value
for the Company.

 

ii.         Covenants
Not to Disclose. All Proprietary Information shall be and remain the exclusive property of the Company and is for the exclusive
use and benefit of the Company. Morse hereby agrees to regard and preserve Proprietary Information as sensitive and confidential,
both during the Term and the Restricted Time (as defined in  Section 8(c) below). Morse agrees that it will not, at any
time, disclose to any unauthorized persons or entities or use for its own account, or for the benefit of any third party, any Proprietary
Information, whether Morse has such information in its memory or embodied in writing or other physical form, without the Company’s
prior written consent, unless and to the extent that the Proprietary Information is or becomes generally known to and available
for use by the public other than as a result of Morse’s fault or the fault of any other person or entity bound by a duty
of confidentiality to the Company. Morse shall, immediately following the effective date of termination of his employment by the
Company, and at any other time the Company may request, return to the Company all Proprietary Information then in Morse’s
possession or under its control, without retaining any copies or notes thereof.

 

(b)       Work
Product Ownership.

 

(i) Work Product
the Property of the Company. As set forth in this section, any and all works, ideas, discoveries, inventions, patents, products,
designs, business methods or other information (collectively, the “Work Product”) which Morse may conceive or make
during the Term, developed in whole or part in connection with Morse’s services to the Company, shall be the sole and exclusive
property of the Company. Morse acknowledges and agrees that any copyrightable works he prepares within the scope of his employment
are “works for hire” under the Copyright Act and that the Company will be considered the author and owner of such works.
Morse also acknowledges and agrees that all works that are (i) developed using the equipment, supplies, facilities and/or trade
secrets of the Company, (ii) result from work performed by Morse for the Company, or (iii) relate to the Company’s business
or current or anticipated research and development, will be the sole and exclusive property of the Company and are hereby irrevocably
assigned by Morse to the Company from the moment of their creation and fixation in tangible media. Morse also hereby irrevocably
transfers and assigns to the Company all worldwide patents, patent applications, copyrights, trade marks, trade secrets and other
intellectual property rights in any Work Product made, conceived, first reduced to practice, or created, either alone or with others,
during the Term. Morse hereby irrevocably transfers and assigns to the Company any and all “Moral Rights” (as defined
herein) that Morse may have in or with respect to any Work Product, and forever waives and agrees never to assert such Moral Rights,
even after the termination of Morse’s work on behalf of the Company. “Moral Rights” are any rights to claim authorship
of any Work Product, or to object to the use or modification of any Work Product, or to withdraw from circulation or control the
publication or distribution of any Work Product, and any similar right, existing under judicial or statutory law of any country
in the world, or under any treaty, regardless of whether or not such right is denominated or generally referred to as a “moral
right.”

 

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(ii) Disclosure
and Cooperation by Morse. Morse shall promptly disclose in confidence to the Company all Work Product that Morse makes, conceives,
first reduces to practice or creates, either alone or jointly with others, during the Term, whether or not in the course of Morse’s
employment, and whether or not such Work Product is patentable, copyrightable, or protectable as trade secrets. Morse will, upon
request by the Company, execute and assign any and all applications, assignments, and other instruments which the Company shall
deem necessary in order to apply for and obtain Copyrights or Letters Patent of the United States or foreign countries for any
Work Product and in order to document the assignment and conveyance to the Company of the sole and exclusive right, title and interest
in and to any Work Product, applications, copyrights and patents. Morse’s obligation to execute such papers and to cooperate
with the Company shall continue beyond the Term with respect to any and all Work Product conceived or made by Morse during the
Term. The Company shall not be required to pay royalties to Morse for the Work Product of Morse because Morse shall be receiving
adequate compensation for its services in accordance with the terms and conditions of this Agreement.

 

(c)        Non-Competition.
Morse agrees that both during the term of this Agreement and for a period of one (1) year following the effective date of termination
of Morse’s employment by the Company (the “Restricted Time”) Morse will not in any way directly or indirectly,
either for itself or any other person or entity, manage, operate, assist, advise, or invest or in any other way further any enterprise
that competes or shall compete with the present or prospective businesses, operations, services, or products of the Company, as
the same may exist from time to time during the Term (except Morse may purchase up to 4.99% of the equity security of a NYSE or
NASDAQ listed company). This restriction is intended to apply solely to other companies that directly compete against the Company
for business. The geographical area regarding this covenant shall be the states in which any customer of the Company has operations
during the Term and/or the Restricted Time. In the event of a breach of the covenants in this  Section 8(c) , the term of
such covenant will be extended by the period of the duration of such breach. Notwithstanding the foregoing, the restrictive covenant
not to compete as set forth above shall be considered waived by the Company in the event Morse’s employment is terminated
by the Company.

 

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(d)          Restrictive
Covenants Regarding Morse. Morse agrees that both during the Term and during the “Restricted Time”, Morse will
not directly or indirectly induce or attempt to induce any employee or independent contractors of the Company to leave the employment
of the Company or terminate the independent contractor relationship; provided, however, that the foregoing shall not prevent Morse
from soliciting or actively seeking to hire any such Morse who is not employed by the Company on the date Morse first solicits
such Morse.

 

(e)          Non-Solicitation
of Company Customers. Morse agrees that, during the Term and the Restricted Time, Morse will not take any action that might
divert or impede the Company from any opportunity that would be in the scope of the Company’s business, and will not directly
or indirectly solicit any of the Company’s then-current customers or discuss or pursue business or professional opportunities
with such customers within the scope of the goods or services provided by the Company.

 

(f)           Judicial
Revisions. If a court of competent jurisdiction should refuse to enforce any of the covenants contained herein because the
geographic area is too extensive, then it is intended to reduce the geographic area to a size which would permit the covenant in
question to be enforced in such proceeding. If a court of competent jurisdiction should refuse to enforce any of the covenants
contained herein because it covers too long a time period, then it is intended to shorten the time period of any such covenant
but only to the extent absolutely necessary to enforce such covenant in such proceeding.

 

(g)          Remedies.
The Parties hereto agree that the remedy at law for breach of the covenants contained in this Section 8 will be inadequate
and that the Company, in addition to any other relief available to it, shall be entitled to temporary and permanent injunctive
relief without the necessity of proving actual damage and to enforce its rights by an action for specific performance to the extent
permitted by law. Morse also acknowledges and agrees that his right to receive severance benefits under  Section 7(e) shall
be conditioned upon his compliance with the terms of this  Section 8 , and that upon any breach of this Section all severance
payments pursuant to this Agreement shall immediately cease. In the event that the provisions of this Section 8 should ever
be deemed to exceed the limitations provided by applicable law or shall otherwise be held unenforceable to the fullest extent provided
herein, then the Parties hereto agree that such provisions shall be reformed to set forth the maximum limitations permitted. The
obligations set forth in this  Section 8 are in addition to, and not in limitation of, any other remedy afforded to the
Company under this Agreement, at law, or in equity.

 

9.         General
Provisions.

 

(a)          As a continued condition of employment, Morse agrees that the provisions of Section 8 apply to all periods of Morse’s
employment by the Company, including periods prior to the Effective Date.

 

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(b)          Morse
represents and warrants to the Company that he neither is nor expects to be under any obligations to any person, firm or corporation,
including without limitation obligations under confidentiality or non-competition agreements with current or previous employers
of Morse, and has no other interest which is inconsistent or in conflict with this Agreement, or which would in any way prevent,
limit or impair the performance by him of any of the covenants or his duties in his said employment.

 

(c)          Morse
represents that he will not bring with him to the Company or use in the performance of his duties for the Company any material,
products, information or processes, whether tangible or intangible, written or otherwise, that belongs to, is claimed by, or is
protected by any former employer of Morse, any third party, or Morse himself, except to the extent (i) it is generally available
to the public, or (ii) it has been legally transferred or assigned to the Company. Morse shall obtain prior written authorization
from the Company prior to bringing to the Company or using in his employment any such material, products, information or processes.

 

(d)          Morse
acknowledges that the covenants contained in this Agreement are fully understood by him and will not preclude him from becoming
gainfully employed in any manner that does not conflict with this Agreement. Morse agrees he has read, understood and had an opportunity
to consult with counsel regarding this Agreement and that he executes same as his free and voluntary act.

 

10.        Records
and Property. All records created or maintained by Morse during the course of its employment by the Company shall be and remain
the property of the Company, and, upon termination of this Agreement for any reason, (a) all such Company property in any form
whatsoever, and any copies of such property, shall be returned immediately to the Company, and (b) to the extent Company property
is installed, stored, maintained, or resides in or on personal property belonging to Morse, Morse agrees to assist the Company
in locating, deleting, and/or otherwise removing completely therefrom all Company property.

 

11.        Expense.
Each party shall pay its own expenses incident to the performance or enforcement of this Agreement, including all fees and expenses
of its counsel for all activities of such counsel undertaken pursuant to this Agreement, except as otherwise herein specifically
provided. Notwithstanding the foregoing, the Company shall reimburse Morse for reasonable legal fees associated with the review
and negotiation of this Agreement by and between the parties.

 

12.        Miscellaneous.

 

(a)          Entire
Agreement. This Agreement constitutes the entire Agreement between the Company and Morse regarding Morse’s employment
by the Company, replacing all other written and/or previous agreements except those attached hereto or herein incorporated by reference.

 

(b)          Severability.
Nothing contained in this Agreement shall be construed to require the commission of any act contrary to law, and wherever there
is any conflict between any provision of this Agreement and any statute, law, ordinance, order or regulation, the latter shall
prevail. If any provision of this Agreement shall be declared to be invalid in whole or part by a court of competent jurisdiction,
it shall not affect the remaining provisions, which shall remain in full force and effect.

 

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(c)          Section
Headings. Section headings are inserted for convenience only and shall not be used in any way to construe the terms of this
Agreement.

 

(d)          Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts. Any
action to enforce, arising out of, or relating in any way to, any of the provisions of this Agreement may be brought and prosecuted
in such court or courts located in The Commonwealth of Massachusetts as is provided by law; and the parties consent to the jurisdiction
of said court or courts located in The Commonwealth of Massachusetts and to service of process by registered mail, return receipt
requested, or by any other manner provided by law.

 

(e)          Notice.
All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall
be deemed to have been duly given when personally delivered, sent by registered or certified mail, return receipt requested, postage
prepaid, or by private overnight mail service (e.g., Federal Express) to the party at the address set forth in the first paragraph
of this Agreement, or to such other address as either party may hereafter give notice of in accordance with the provisions hereof.
Notices shall be deemed given on the sooner of the dates actually received or the third business day after sending.

 

(f)           Waiver.
The waiver of any breach or violation of any provision or condition hereof shall not affect the validity or enforceability of any
other provision or condition, nor shall it be deemed a waiver of any subsequent breach or violation of the same provision or condition.
No waiver of any right or remedy under this Agreement shall be effective unless made in writing and executed by the Party so to
be charged. The rights and remedies of the Parties to this Agreement are cumulative and not alternative.

 

(g)          Amendment.
This Agreement shall not be modified or amended except in a writing signed by a duly authorized representative of both Parties.

 

(h)          Successors
and Assignment. This Agreement shall be binding upon and shall inure to the benefit of the Parties, their respective successors
and assigns, provided that neither Party may assign any of its rights or delegate or subcontract any of its duties hereunder without
the prior written consent of the other Party; provided further, that the Company may assign its rights and duties hereunder to
a party acquiring a controlling interest in the Company without obtaining Morse’s consent, and the Company may assign this
Agreement to any parent or affiliate.

 

(i)           Gender.
Whenever used herein, the singular number shall indicate the plural, the plural shall include the singular, and the use of any
gender shall include all genders.

 

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(j)           Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument, and in pleading or proving any provision of this Agreement, it shall not be necessary
to produce more than one of such counterparts.

 

(k)          Further
Assurances. Each of the parties hereto shall, at any time and from time to time hereafter, upon the reasonable request of the
other party, take such further actions and execute, acknowledge and deliver all such instruments of further assurance as necessary
to carry out the provisions of this Agreement.

 

(l)           Survival
of Obligations. Except for those provisions that by their terms expire at or before the end of the Term, the obligations and
covenants set forth in this Agreement survive the termination of Morse’s employment by the Company.

 

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

 

	/s/	 	/s/ Matthew Morse
	Witness	 	MATTHEW MORSE
	 	 	 
	 	 	LANSAL INC.
	 	 	 
	/s/	 	By:	/s/ Joseph D. Ward
	Witness	 	 	Joseph D. Ward, COO

 

    	9Exhibit 10.1

  

November 7, 2013

 

Incyte Corporation

Experimental Station

Route 141 & Henry Clay Road

Building E336

Wilmington, DE 19880

 

Ladies and Gentlemen:

 

Reference is hereby made to the $250,000,000
aggregate principal amount of the 0.375% Convertible Senior Notes due 2018 and $250,000,000 aggregate principal amount of the 1.25%
Convertible Senior Notes due 2020 (collectively, the “Notes”) of Incyte Corporation (the “Company”)
which 667, L.P., Baker Brothers Life Sciences, L.P. and 14159, L.P. (collectively, the “BBA
Funds”) have agreed to purchase. Capitalized terms used herein and not otherwise defined shall have the meaning
set forth in the indentures relating to the Notes by and between the Company and U.S. Bank National Association, as trustee, to
be dated as of closing date of the sale and issuance the Notes (the “Indentures”). In consideration of the mutual
covenants and agreements of the parties herein, the BBA Funds and the Company agree as follows:

 

		1.	Transfer Restrictions. The BBA Funds, on behalf of themselves and each affiliate or other person subject to aggregation
with any of the BBA Funds under Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) and
the rules promulgated thereunder (“Section 13(d)”) or any person who may form a “group” with the
BBA Funds within the meaning of Section 13(d) (collectively, the “BBA Group”) agrees that, so long as any of
the BBA Funds or any member of the BBA Group is an “affiliate” of the Company as such term is defined in Rule 144
of the Securities Act of 1933, as amended (the “Securities Act”) no member of the BBA Group shall sell any Notes
or shares of the Company’s common stock (“Common Stock”) issuable upon conversion of the Notes that constitute
“restricted securities” under Rule 144 prior to the date that is the later of (i) the later of (x) the date that
is one year after the last date of original issuance of the Notes or such shorter period of time as permitted by Rule 144 or any
successor provision thereto and (y) 90 days after the relevant BBA Funds entity ceases to be an “affiliate” (within
the meaning of Rule 144 under the Securities Act) of the Company and (ii) such later date, if any, as may be required by applicable
law, except:

 

		(i)	to the Company or one of the Company’s subsidiaries;

 

		(ii)	under a registration statement that has been declared effective under the Securities Act;

 

		(iii)	to a person the relevant BBA Funds entity reasonably believes is a qualified institutional buyer that is purchasing for its
own account or for the account of another qualified institutional buyer and to whom notice is given that the transfer is being
made in reliance on Rule 144A, all in compliance with Rule 144A (if available);

 

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		(iv)	pursuant to the exemption from registration provided by Rule 144 (if available) or any other available exemption from the registration
requirements of the Securities Act; or

 

		(v)	a pledge to an affiliate of the relevant BBA Funds entity so long as such pledgee agrees in writing to be bound by the transfer
restrictions set forth herein.

 

		2.	Registration Rights. Following the closing of the sale and issuance of the Notes to the BBA Funds, the Company agrees
to provide the registration rights as set forth below in this Section 2, subject to the terms and conditions contained herein.

 

		A.	Shelf Registration. The Company agrees that, upon written request by the BBA Funds, it shall,
as soon as reasonably practicable, prepare and file with the Securities and Exchange Commission (“SEC”) a
registration statement for an offering to be made on a delayed or continuous basis pursuant to Rule 415 of the Securities Act registering
the resale from time to time by the BBA Funds of all of the Registrable Securities (a “Shelf Registration Statement”);
provided, however, that the Company will have the right to postpone the effectiveness of any such Shelf Registration
Statement in accordance with Section 2(C) below. Upon filing of the Shelf Registration Statement,
the Company shall use commercially reasonable efforts to cause such Shelf Registration Statement to
be declared effective under the Securities Act as soon as reasonably practicable, but in no event earlier than the date that is
six (6) months following the last date of the original issuance of the Notes, and to keep such Shelf Registration Statement continuously
effective during the Effectiveness Period as defined in Section 2(B) below. For purposes of this letter agreement, “Registrable
Securities” shall mean the Notes and any shares of the Company’s common stock issued upon conversion thereof, and
any security issued with respect thereto upon any stock dividend, split or similar event, that are held by the BBA Funds or any
member of the BBA Group. The Shelf Registration Statement shall be on Form S-3 or another appropriate form permitting registration
of the Registrable Securities for resale in accordance with the methods of distribution elected by the BBA Funds and set forth
in the Shelf Registration Statement; provided, however that in no event shall such method of distribution take the form
of an underwritten offering of the Registrable Securities without the prior written consent of the Company, which consent shall
not be unreasonably withheld.  If a Shelf Registration Statement covering resales of the Registrable
Securities ceases to be effective for any reason at any time during the Effectiveness Period (other than because all securities
registered thereunder shall have been resold pursuant thereto), the Company shall use its commercially reasonable efforts to obtain
the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall within thirty (30) days of such
cessation of effectiveness amend the Shelf Registration Statement in a manner reasonably expected to obtain the withdrawal of the
order suspending the effectiveness thereof, or file an additional Shelf Registration Statement so that all Registrable Securities
outstanding as of the date of such filing are covered by a Shelf Registration Statement. If a new Shelf Registration Statement
is filed pursuant to this Section 2(A), the Company shall use its commercially reasonable efforts to cause the new Shelf Registration
Statement to become effective as soon as reasonably practicable after such filing and to keep the new Shelf Registration Statement
continuously effective until the end of the Effectiveness Period.

 

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		B.	Effectiveness Period. Subject to the limitations set forth in section 2(C) below, the Company
shall be obligated to use its commercially reasonable efforts to keep a Shelf Registration Statement filed pursuant Section 2(A)
effective until the earlier to occur of the following: (i) at such time as all Registrable Securities held by the BBA Funds
have been sold pursuant to a Shelf Registration Statement or other effective registration statement or Rule 144 or (ii) at
such time as all Registrable Securities held by the BBA Funds are eligible to be sold without any volume or manner of sale restrictions
pursuant to Rule 144 (the “Effectiveness Period”). 

 

		C.	Suspension Period. Notwithstanding anything to the contrary in this Section 2, upon notice to the BBA Funds, the Company
may suspend the use or the effectiveness of the Shelf Registration Statement for a period of up to thirty (30) days in any three
(3) month period or ninety (90) days in any in any twelve (12) month period (the “Suspension Period”) if the
Board of Directors of the Company determines that there is a valid business purpose for suspension of the Shelf Registration Statement;
provided, that in the case of a probable financing, acquisition, recapitalization, business combination or other similar
transaction, the Company shall have the right to extend the Suspension Period by up to an additional fifteen (15) days in any three
(3) month period. In the event the Company exercises its rights under the preceding sentence, the BBA Funds agree to suspend, immediately
upon their receipt of the notice referred to above, their use of any preliminary prospectus, prospectus or any amendment or supplement
thereto in connection with any sale or offer to sell Registrable Securities. The Company shall promptly notify the BBA Funds when
the Registration Statement may once again be used or is effective. In addition to restrictions on resales during the Suspension
Period as described above, for so long as any member of the BBA Group is an affiliate of the Company, no member of the BBA Group
shall be allowed to transfer or sell any of its Registrable Securities pursuant to the Shelf Registration Statement at any time
when either (i) any blackout period under the Company’s insider trading policy is in effect or (ii) any member
of the BBA Group is in possession of any material non-public information with respect to the Company.

 

		D.	Expenses. The Company shall bear all fees and expenses incurred in connection with the performance by the Company of
its obligations under Section 2 of this letter agreement. Such fees and expenses shall include, without limitation, (i) all registration
and filing fees (including, without limitation, fees and expenses (x) with respect to filings required to be made with the Financial
Industry Regulatory Authority, Inc. and the SEC and (y) of compliance with federal and state securities or Blue Sky laws), (ii)
printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities in a form eligible
for deposit with The Depository Trust Company), (iii) all expenses of any Persons in preparing or assisting in preparing, word
processing, printing and distributing any Shelf Registration Statement, any preliminary prospectus, prospectus or any amendments
or supplements thereto, any, securities sales agreements and other documents relating to the performance of and compliance with
this Section 2, (iv) all fees and disbursements relating to the qualification of the Indenture under applicable securities laws,
(v) the fees and disbursements of counsel for the Company in connection with any Shelf Registration Statement and the consummation
of any transactions contemplated by the Shelf Registration Statement or this Agreement, (vi) fees and disbursements of the Trustee
and its counsel and of the registrar and transfer agent for the Common Stock, (vii) Securities Act liability insurance obtained
by the Company in its sole discretion and (viii) the fees and disbursements of the independent registered public accounting firm
of the Company and of any other Person or business whose financial statements are included or incorporated or deemed to be incorporated
by reference in a Shelf Registration Statement and in connection with the consummation of any transactions contemplated by the
Shelf Registration Statement or this Agreement. Notwithstanding the provisions of this Section 2(D), the BBA Funds shall pay any
broker’s commission, agency fee or underwriter’s discount or commission in connection with the sale of the Registrable
Securities under a Shelf Registration Statement.

 

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		E.	Indemnification.

 

		(a)	The Company agrees to indemnify, to the extent permitted by law, the BBA Funds and each of their
officers, directors, managers, members, partners and each other Person who controls any of the BBA Funds (within the meaning of
the Securities Act), as applicable, against all losses, claims, damages, liabilities and expenses caused by any untrue or alleged
untrue statement of material fact contained in any Shelf Registration Statement, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading, except insofar as the same are caused by or contained in any information furnished
in writing to the Company by the BBA Funds expressly for use therein or by the BBA Funds’ failure to deliver a copy of the
Shelf Registration Statement or any preliminary prospectus, prospectus or any amendments or supplements thereto after the Company
has furnished the BBA Funds with a sufficient number of copies of the same.

 

		(b)	The BBA Funds agree to indemnify, to the extent permitted by law, the Company and its officers and
directors, as applicable, against all losses, claims, damages, liabilities and expenses caused by any untrue or alleged untrue
statement of material fact contained in any Shelf Registration Statement, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading, solely to the extent the same are caused by or contained in any information furnished
in writing to the Company by the BBA Funds expressly for use therein.

 

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		(c)	A person entitled to indemnification hereunder (the “indemnified party”) shall (A) give prompt written notice
to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to give prompt
notice shall not impair any indemnified party’s right to indemnification hereunder to the extent such failure has not prejudiced
the indemnifying party) and (B) unless in such indemnified party’s reasonable judgment a conflict of interest between
such indemnified party and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume
the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying
party shall not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent
shall not be unreasonably withheld). An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim
shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party
with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between
such indemnified party and any other of such indemnified parties with respect to such claim.

 

		(d)	The indemnification provided for under this agreement shall remain in full force and effect regardless of any investigation
made by or on behalf of the indemnified party or any officer, director, manager, member, partner or controlling person of such
indemnified party and shall survive the transfer of securities. The Company also agrees to make such provisions, as are reasonably
requested by any indemnified party, for contribution to such party in the event the Company’s indemnification is unavailable
for any reason. Such provisions shall provide that the liability amongst the various persons shall be allocated in such proportion
as is appropriate to reflect the relative fault of the such persons in connection with the statements or omissions which resulted
in losses (the relative fault being determined by reference to, among other things, which person supplied the information giving
rise to untrue statement or omission and each person’s relative intent, knowledge, access to information and opportunity
to correct or prevent such untrue statement or omission) and, only if such allocation is not respected at law, would other equitable
considerations, such as the relative benefit received by each person from the sale of the securities, be taken into consideration.

 

		F.	Underwritten Public Offerings. Upon any underwritten public offering pursuant to a Shelf Registration Statement, the
Company agrees to enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the
lead underwriter(s) of such offering. In addition, the Company agrees to furnish, on the date that securities are delivered to
the underwriters in connection with any underwritten public offering pursuant to a Shelf Registration Statement:

 

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		(i)	copies of an opinion or opinions, dated such date, of the counsel representing the Company for the purposes of such registration,
in form and substance as is customarily given by company counsel to the underwriters in an underwritten public offering, addressed
to the underwriters; and

 

		(ii)	copies of a letter dated such date, from the auditors of the Company, in form and substance as is customarily given by auditors
to underwriters in an underwritten public offering, addressed to the underwriters.

 

		3.	Blocker Provisions.

 

		A.	Notwithstanding any provision of the Notes or the Indenture to the contrary, any Conversion Notice with respect to the Notes
delivered by or on behalf of the BBA Funds or any member of the BBA Group shall be deemed automatically not to have been so delivered
by such person to the extent, but only to the extent, the delivery of any shares of Common Stock or any other security otherwise
deliverable upon such conversion would result in the BBA Group having “beneficial ownership” as determined in accordance
with Section 13(d) of the Exchange Act and the rules thereunder (“Beneficial Ownership”) of Common Stock or
any other class of any equity security (other than an exempted security) that is registered pursuant to Section 12 of the Exchange
Act (a “Class”) in excess of 19.999% of the number of outstanding shares of the Common Stock or such Class (the
“19.999% Ownership Limitation”). Any purported delivery to any member of the BBA Group of a number of shares
of Common Stock or any other security upon conversion of the Notes shall be void and have no effect to the extent, but only to
the extent, that after such delivery, the BBA Group would have Beneficial Ownership of Common Stock or any such Class in excess
of the 19.999% Ownership Limitation.

 

		B.	Notwithstanding Section 3(A) or any provision of the Notes or the Indenture to the contrary, during any period of time in which
the BBA Group’s Beneficial Ownership of Common Stock or any other Class (without reference to the Notes held by the BBA Group)
is less than 10%, any purported delivery to any member of the BBA Group of a number of shares of Common Stock or any other security
upon conversion of the Notes shall be void and have no effect to the extent, but only to the extent, that after such delivery,
the BBA Group would have Beneficial Ownership of Common Stock or any such Class in excess of 9.999% of the number of outstanding
shares of the Common Stock or such Class (the “9.999% Ownership Limitation”). For purposes of calculating Beneficial
Ownership for this Section 3(B) or for Section 3(C) below, the aggregate number of shares of Common Stock beneficially owned by
the BBA Group shall include the number of shares of Common Stock issuable upon conversion of the Notes with respect to which the
determination of such sentence is being made, but shall exclude the number of shares of Common Stock which are issuable upon (i)
conversion of the remaining, unconverted Notes beneficially owned by the BBA Group, and (ii) exercise or conversion of the unexercised
or unconverted portion of any other securities of the Company beneficially owned by the BBA Group (including, without limitation,
any convertible notes, convertible stock or warrants) that are subject to a limitation on conversion or exercise analogous to the
limitation contained herein.

 

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		C.	Notwithstanding Section 3(A) and 3(B) or any provision of the Notes or the Indenture to the contrary, during any period of
time in which the BBA Group’s Beneficial Ownership of Common Stock or any other Class is less than 5%, any purported delivery
to any member of the BBA Group of a number of shares of Common Stock or any other security upon conversion of the Notes shall be
void and have no effect to the extent, but only to the extent, that after such delivery, the BBA Group would have Beneficial Ownership
of Common Stock or any such Class in excess of 4.999% of the number of outstanding shares of the Common Stock or such Class (the
“4.999% Ownership Limitation”).

 

		D.	The BBA Funds, on behalf of the BBA Group, shall inform the Company on or prior to the date that any member of the BBA Group
delivers any Conversion Notice with respect to the Notes of the number of shares of Common Stock or any other relevant Class then
beneficially owned by the BBA Group.

 

		E.	The Company agrees to instruct the Trustee to take such steps as may be reasonably necessary to effectuate the foregoing arrangements
in this Section 3.

 

		F.	By written notice to the Company, the BBA Group or BBA Funds may from time to time increase or decrease either or both of the
9.999% Ownership Limitation or the 4.999% Ownership Limitation to any other percentage not in excess of 19.999% specified in such
notice; provided that (i) any such increase will not be effective until the sixty-fifth (65th) day after such notice is delivered
to the Company.

 

		G.	The provisions of this Section 3 shall be construed, corrected and implemented in a manner so as to effectuate the intended
beneficial ownership limitation herein contained and the shares of Common Stock underlying the Notes in excess of the 9.999% Ownership
Limitation or the 4.999% Ownership Limitation shall not be deemed to be beneficially owned by the Purchaser for any purpose including
for purposes of Section 13(d) or Rule 16a-1(a)(1) of the Exchange Act.

 

		4.	The rights provided to the BBA Funds and any other member of the BBA Group and its or their affiliates as contained in this
letter agreement may not be assigned without the prior consent of the Company. This letter agreement shall be binding upon and
shall be inure to the benefit of the parties hereto and their respective permitted assigns, and no other person shall have any
rights or obligations hereunder.

 

		5.	This letter agreement constitutes the full and entire understanding of the agreement between the parties hereto with regard
to the subject matter contained herein and supersedes all prior oral or written agreements to understandings with respect to the
subject matter hereof.

 

		6.	This letter agreement and construed in accordance with the laws of the State of New York.

 

    	7

    	 

    

 

This letter agreement may be executed in multiple
counterpart copies, each of which shall be considered an original and all of which shall constitute one and the same instrument
binding on all parties.

 

	 	Very truly yours,
	 	 	 
	 	667, L.P. (account #1),
	 	 	 
	 	By:  Baker Bros. Advisors LP, management company and investment adviser to 667, L.P., pursuant to authority granted to it by Baker Biotech Capital, L.P., general partner  to 667, L.P., and not as the general partner.
	 	 	 
	 	By: 	/s/ Scott Lessing
	 	 	Scott Lessing
	 	 	President
	 	 	 
	 	667, L.P. (account #2),
	 	 	 
	 	By:  Baker Bros. Advisors LP, management company and investment adviser to 667, L.P., pursuant to authority granted to it by Baker Biotech Capital, L.P., general partner  to 667, L.P., and not as the general partner.
	 	 	 
	 	By: 	/s/ Scott Lessing
	 	 	Scott Lessing
	 	 	President

 

    	8

    	 

    

 

	 	BAKER BROTHERS LIFE SCIENCES, L.P.
	 	 	 
	 	By:  BAKER BROS. ADVISORS LP, , management company and investment adviser to Baker Brothers Life Sciences, L.P., pursuant to authority granted to it by Baker Brothers Life Sciences Capital, L.P., general partner  to Baker Brothers Life Sciences, L.P., and not as the general partner. 
	 	 	 
	 	By: 	/s/ Scott Lessing
	 	 	Scott Lessing
	 	 	President
	 	 	 
	 	14159, L.P.,
	 	 	 
	 	By:  Baker Bros. Advisors LP, management company and investment adviser to 14159, L.P., pursuant to authority granted to it by 14159 Capital, L.P., general partner  to 14159, L.P., and not as the general partner. 
	 	 	 
	 	By:	/s/ Scott Lessing
	 	 	Scott Lessing
	 	 	President
	 	 	 
	Agreed to as of the date set forth above by:	 	 
	 	 	 
	INCYTE CORPORATION	 	 

 

	By: 	/s/ David C. Hastings	 	 
	Name:	David C. Hastings	 
	Title:	Executive Vice President, Chief Financial Officer	 

 

    	9

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