Document:

Exhibit 10.2

 

 

GI
DYNAMICS, INC.

 

RIGHT
OF FIRST REFUSAL AND CO-SALE AGREEMENT

 

 

 

     

     

    

 

TABLE
OF CONTENTS

 

	 	Page
	1.
    Definitions	1
	 	 
	2.
    Agreement Among the Company, the Investors and the Key Holders	3
	2.1
    Right of First Refusal	3
	2.2
    Right of Co-Sale	5
	2.3
    Effect of Failure to Comply	7
	 	 
	3.
    Exempt Transfers	7
	3.1
    Exempted Transfers	7
	3.2
    Exempted Offerings	8
	3.3
    Prohibited Transferees	8
	 	 
	4.
    Legend	8
	 	 
	5.
    Lock-Up	9
	5.1
    Agreement to Lock-Up	9
	5.2
    Stop Transfer Instructions	9
	 	 
	6.
    Miscellaneous	9
	6.1
    Term	9
	6.2
    Stock Split	9
	6.3
    Ownership	9
	6.4
    Dispute Resolution	10
	6.5
    Notices	10
	6.6
    Entire Agreement	11
	6.7
    Delays or Omissions	11
	6.8
    Amendment; Waiver and Termination	11
	6.9
    Assignment of Rights	12
	6.10
    Severability	12
	6.11
    Additional Stockholders	12
	6.12
    Governing Law	13
	6.13
    Titles and Subtitles	13
	6.14
    Counterparts	13
	6.15
    Aggregation of Stock	13
	6.16
    Specific Performance	13
	6.17
    Consent of Spouse	13

 

Schedule
A - Investors

 

Schedule
B - Key Holders

 

Exhibit
A - Consent of Spouse

 

    i

     

    

 

RIGHT
OF FIRST REFUSAL

AND CO-SALE AGREEMENT

 

THIS
RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT (this “Agreement”), is made as of the 4th day of September,
2020, by and among GI Dynamics, Inc., a Delaware corporation (the “Company”), the Investors (as defined below)
listed on Schedule A and the Key Holders (as defined below) listed on Schedule B.

 

WHEREAS,
each Key Holder is the beneficial owner of the number of shares of Capital Stock set forth opposite the name of such Key Holder
on Schedule B;

 

WHEREAS,
the Company and the Investors are parties to that certain Series A Preferred Stock Purchase Agreement, dated as of August
10, 2020 (the “Purchase Agreement”), pursuant to which the Investors have agreed to purchase shares of the
Series A Preferred Stock of the Company, par value $0.01 per share (“Series A Preferred Stock”); and

 

WHEREAS,
the Key Holders and the Company desire to further induce the Investors to purchase the Series A Preferred Stock.

 

NOW,
THEREFORE, the Company, the Key Holders and the Investors agree as follows:

 

1. Definitions.

 

1.1
“Affiliate” means, with respect to any specified Investor, any other Investor who directly or indirectly, controls,
is controlled by or is under common control with such Investor, including, without limitation, any general partner, managing member,
officer, director or trustee of such Investor, or any venture capital fund or registered investment company now or hereafter existing
which is controlled by one or more general partners, managing members or investment advisers of, or shares the same management
company or investment adviser with, such Investor.

 

1.2
“Board of Directors” means the board of directors of the Company.

 

1.3
“Capital Stock” means (a) shares of Common Stock and Series A Preferred Stock (whether now outstanding or hereafter
issued in any context), (b) shares of Common Stock issued or issuable upon conversion of Series A Preferred Stock, and (c) shares
of Common Stock issued or issuable upon exercise or conversion, as applicable, of stock options, warrants or other convertible
securities of the Company, in each case now owned or subsequently acquired by any Key Holder, any Investor, or their respective
successors or permitted transferees or assigns. For purposes of the number of shares of Capital Stock held by an Investor or Key
Holder (or any other calculation based thereon), all shares of Series A Preferred Stock shall be deemed to have been converted
into Common Stock at the then-applicable conversion ratio.

 

1.4
“Change of Control” means a transaction or series of related transactions in which a person, or a group of
related persons, acquires from stockholders of the Company shares representing more than fifty percent (50%) of the outstanding
voting power of the Company.

 

1.5
“Common Stock” means shares of Common Stock of the Company, $0.01 par value per share.

 

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1.6
“Company Notice” means written notice from the Company notifying the selling Key Holders and each Investor
that the Company intends to exercise its Right of First Refusal as to some or all of the Transfer Stock with respect to any Proposed
Key Holder Transfer.

 

1.7
“Investor Notice” means written notice from any Investor notifying the Company and the selling Key Holder(s)
that such Investor intends to exercise its Secondary Refusal Right as to a portion of the Transfer Stock with respect to any Proposed
Key Holder Transfer.

 

1.8
“Investors” means the persons named on Schedule A hereto, each person to whom the rights of an
Investor are assigned pursuant to Subsection 6.9, each person who hereafter becomes a signatory to this Agreement pursuant
to Subsection 6.11 and any one of them, as the context may require; provided, however, that any such person
shall cease to be considered an Investor for purposes of this Agreement at any time such person and his, her or its Affiliates
collectively hold fewer than 1,000,000 shares of Common Stock, on an as converted basis (as adjusted for any stock combination,
stock split, stock dividend, recapitalization or other similar transaction).

 

1.9
“Key Holders” means the persons named on Schedule B hereto, each person to whom the rights of a
Key Holder are assigned pursuant to Subsection 3.1, each person who hereafter becomes a signatory to this Agreement pursuant
to Subsection 6.9 or Subsection 6.17 and any one of them, as the context may require; provided, however,
that any such person shall cease to be considered a Key Holder for purposes of this Agreement at any time such person and his,
her or its Affiliates collectively hold less than one percent (1%) of the Company’s then outstanding shares of Common Stock
(as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction).

 

1.10
“Proposed Key Holder Transfer” means any assignment, sale, offer to sell, pledge, mortgage, hypothecation,
encumbrance, disposition of or any other like transfer or encumbering of any Transfer Stock (or any interest therein) proposed
by any of the Key Holders.

 

1.11
“Proposed Transfer Notice” means written notice from a Key Holder setting forth the terms and conditions of
a Proposed Key Holder Transfer.

 

1.12
“Prospective Transferee” means any person to whom a Key Holder proposes to make a Proposed Key Holder Transfer.

 

1.13
“Restated Certificate” means the Company’s Seventh Amended and Restated Certificate of Incorporation,
as amended and/or restated from time to time.

 

1.14
“Right of Co-Sale” means the right, but not an obligation, of an Investor to participate in a Proposed Key
Holder Transfer on the terms and conditions specified in the Proposed Transfer Notice.

 

1.15
“Right of First Refusal” means the right, but not an obligation, of the Company, or its permitted transferees
or assigns, to purchase some or all of the Transfer Stock with respect to a Proposed Key Holder Transfer, on the terms and conditions
specified in the Proposed Transfer Notice.

 

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1.16
“Secondary Notice” means written notice from the Company notifying the Investors and the selling Key Holder
that the Company does not intend to exercise its Right of First Refusal as to all shares of any Transfer Stock with respect to
a Proposed Key Holder Transfer, on the terms and conditions specified in the Proposed Transfer Notice.

 

1.17
“Secondary Refusal Right” means the right, but not an obligation, of each Investor to purchase up to its pro
rata portion (based upon the total number of shares of Capital Stock then held by all Investors) of any Transfer Stock not purchased
pursuant to the Right of First Refusal, on the terms and conditions specified in the Proposed Transfer Notice.

 

1.18
“Transfer Stock” means shares of Capital Stock owned by a Key Holder, or issued to a Key Holder after the date
hereof (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization, or
the like), but does not include any shares of Series A Preferred Stock or of Common Stock that are issued or issuable upon conversion
of Series A Preferred Stock.

 

1.19
“Undersubscription Notice” means written notice from an Investor notifying the Company and the selling Key
Holder that such Investor intends to exercise its option to purchase its pro rata portion of the number of shares of Transfer
Stock not purchased pursuant to the Right of First Refusal or the Secondary Refusal Right.

 

2.
Agreement Among the Company, the Investors and the Key Holders.

 

2.1
Right of First Refusal.

 

(a)
Grant. Subject to the terms of Section 3 below, each Key Holder hereby unconditionally and irrevocably grants to
the Company a Right of First Refusal to purchase all or any portion of Transfer Stock that such Key Holder may propose to transfer
in a Proposed Key Holder Transfer, at the same price and on the same terms and conditions as those offered to the Prospective
Transferee.

 

(b)
Notice. Each Key Holder proposing to make a Proposed Key Holder Transfer must deliver a Proposed Transfer Notice to the
Company and each Investor not later than forty-five (45) days prior to the consummation of such Proposed Key
Holder Transfer. Such Proposed Transfer Notice shall contain the material terms and conditions (including price and form of consideration)
of the Proposed Key Holder Transfer, the identity of the Prospective Transferee and the intended date of the Proposed Key Holder
Transfer. To exercise its Right of First Refusal under this Subsection 2.1, the Company must deliver a Company Notice to
the selling Key Holder and the Investors within fifteen (15) days after delivery of the Proposed Transfer Notice specifying the
number of shares of Transfer Stock to be purchased by the Company. In the event of a conflict between this Agreement and any other
agreement that may have been entered into by a Key Holder with the Company that contains a preexisting right of first refusal,
the Company and the Key Holder acknowledge and agree that the terms of this Agreement shall control and the preexisting right
of first refusal shall be deemed satisfied by compliance with Subsection 2.1(a) and this Subsection 2.1(b).

 

(c)
Grant of Secondary Refusal Right to the Investors. Subject to the terms of Section 3 below, each Key Holder hereby
unconditionally and irrevocably grants to the Investors a Secondary Refusal Right to purchase all or any portion of the Transfer
Stock not purchased by the Company pursuant to the Right of First Refusal, as provided in this Subsection 2.1(c).
In the event there are two (2) or more such Investors that choose to exercise the Secondary Refusal Right for a total number of
remaining shares in excess of the number available, the Transfer Stock available for purchase under this Subsection 2.1(c)
shall be allocated to such Investors pro rata based on the number of shares of Series A Preferred Stock held by such Investors.
If the Company does not provide the Company Notice exercising its Right of First Refusal with respect to all Transfer Stock subject
to a Proposed Key Holder Transfer, the Company must deliver a Secondary Notice to the selling Key Holder and to each Investor
to that effect no later than fifteen (15) days after the selling Key Holder delivers the Proposed Transfer Notice to the Company.
To exercise its Secondary Refusal Right, an Investor must deliver an Investor Notice to the selling Key Holder and the Company
within ten (10) days after the Company’s deadline for its delivery of the Secondary Notice as provided in the preceding
sentence.

 

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(d)
Undersubscription of Transfer Stock. If options to purchase have been exercised by the Company and the Investors pursuant
to Subsections 2.1(b) and (c) with respect to some but not all of the Transfer Stock by the end of the ten (10)
day period specified in the last sentence of Subsection 2.1(c) (the “Investor Notice Period”), then
the Company shall, within five (5) days after the expiration of the Investor Notice Period, send written notice (the “Company
Undersubscription Notice”) to those Investors who fully exercised their Secondary Refusal Right within the Investor
Notice Period (the “Exercising Investors”). Each Exercising Investor shall, subject to the provisions of this
Subsection 2.1(d), have an additional option to purchase all or any part of the balance of any such remaining unsubscribed
shares of Transfer Stock on the terms and conditions set forth in the Proposed Transfer Notice. To exercise such option, an Exercising
Investor must deliver an Undersubscription Notice to the selling Key Holder and the Company within ten (10) days after the expiration
of the Investor Notice Period. In the event there are two (2) or more such Exercising Investors that choose to exercise the last-mentioned
option for a total number of remaining shares in excess of the number available, the remaining shares available for purchase under
this Subsection 2.1(d) shall be allocated to such Exercising Investors pro rata based on the number of shares of Transfer
Stock such Exercising Investors have elected to purchase pursuant to the Secondary Refusal Right (without giving effect to any
shares of Transfer Stock that any such Exercising Investor has elected to purchase pursuant to the Company Undersubscription Notice).
If the options to purchase the remaining shares are exercised in full by the Exercising Investors, the Company shall immediately
notify all of the Exercising Investors and the selling Key Holder of that fact.

 

(e)
Consideration; Closing. If the consideration proposed to be paid for the Transfer Stock is in property, services or other
non-cash consideration, the fair market value of the consideration shall be as determined in good faith by the Board of Directors
and as set forth in the Company Notice. If the Company or any Investor cannot for any reason pay for the Transfer Stock in the
same form of non-cash consideration, the Company or such Investor may pay the cash value equivalent thereof, as determined in
good faith by the Board of Directors and as set forth in the Company Notice. The closing of the purchase of Transfer Stock by
the Company and the Investors shall take place, and all payments from the Company and the Investors shall have been delivered
to the selling Key Holder, by the later of (i) the date specified in the Proposed Transfer Notice as the intended date of the
Proposed Key Holder Transfer and (ii) forty-five (45) days after delivery of the Proposed Transfer Notice.

 

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2.2
Right of Co-Sale.

 

(a)
Exercise of Right. If any Transfer Stock subject to a Proposed Key Holder Transfer is not purchased pursuant to Subsection
2.1 above and thereafter is to be sold to a Prospective Transferee, each respective Investor may elect to exercise its Right
of Co-Sale and participate on a pro rata basis in the Proposed Key Holder Transfer as set forth in Subsection 2.2(b) below
and, subject to Subsection 2.2(d), otherwise on the same terms and conditions specified in the Proposed Transfer Notice.
Each Investor who desires to exercise its Right of Co-Sale (each, a “Participating Investor”) must give the
selling Key Holder written notice to that effect within fifteen (15) days after the deadline for delivery of the Secondary Notice
described above, and upon giving such notice such Participating Investor shall be deemed to have effectively exercised the Right
of Co-Sale.

 

(b)
Shares Includable. Each Participating Investor may include in the Proposed Key Holder Transfer all or any part of such
Participating Investor’s Capital Stock equal to the product obtained by multiplying (i) the aggregate number of shares
of Transfer Stock subject to the Proposed Key Holder Transfer (excluding shares purchased by the Company or the Participating
Investors pursuant to the Right of First Refusal or the Secondary Refusal Right) by (ii) a fraction, the numerator of which is
the number of shares of Capital Stock owned by such Participating Investor immediately before consummation of the Proposed Key
Holder Transfer (including any shares that such Participating Investor has agreed to purchase pursuant to the Secondary Refusal
Right) and the denominator of which is the total number of shares of Capital Stock owned, in the aggregate, by all Participating
Investors immediately prior to the consummation of the Proposed Key Holder Transfer (including any shares that all Participating
Investors have collectively agreed to purchase pursuant to the Secondary Refusal Right), plus the number of shares of Transfer
Stock held by the selling Key Holder. To the extent one (1) or more of the Participating Investors exercise such right of participation
in accordance with the terms and conditions set forth herein, the number of shares of Transfer Stock that the selling Key Holder
may sell in the Proposed Key Holder Transfer shall be correspondingly reduced.

 

(c)
Purchase and Sale Agreement. The Participating Investors and the selling Key Holder agree that the terms and conditions
of any Proposed Key Holder Transfer in accordance with this Subsection 2.2 will be memorialized in, and governed by, a
written purchase and sale agreement with the Prospective Transferee (the “Purchase and Sale Agreement”) with
customary terms and provisions for such a transaction, and the Participating Investors and the selling Key Holder further covenant
and agree to enter into such Purchase and Sale Agreement as a condition precedent to any sale or other transfer in accordance
with this Subsection 2.2.

 

(d)
Allocation of Consideration.

 

(i)
Subject to Subsection 2.2(d)(ii), the aggregate consideration payable to the Participating Investors and the selling Key
Holder shall be allocated based on the number of shares of Capital Stock sold to the Prospective Transferee by each Participating
Investor and the selling Key Holder as provided in Subsection 2.2(b); provided, however, if a Participating
Investor wishes to sell Series A Preferred Stock, the price set forth in the Proposed Transfer Notice shall be appropriately adjusted
based on the conversion ratio of the Series A Preferred Stock into Common Stock.

 

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(ii)
In the event that the Proposed Key Holder Transfer constitutes a Change of Control, the terms of the Purchase and Sale Agreement
shall provide that the aggregate consideration from such transfer shall be allocated to the Participating Investors and the selling
Key Holder in accordance with Sections 2.1 and 2.2 of Article IV(B) of the Restated Certificate and, if applicable, the next sentence
as if (A) such transfer were a Deemed Liquidation Event (as defined in the Restated Certificate), and (B) the Capital Stock sold
in accordance with the Purchase and Sale Agreement were the only Capital Stock outstanding. In the event that a portion of the
aggregate consideration payable to the Participating Investor(s) and selling Key Holder is placed into escrow and/or is payable
only upon satisfaction of contingencies, the Purchase and Sale Agreement shall provide that (x) the portion of such consideration
that is not placed in escrow and is not subject to contingencies (the “Initial Consideration”) shall be allocated
in accordance with Sections 2.1 and 2.2 of Article IV(B) of the Restated Certificate as if the Initial Consideration were the
only consideration payable in connection with such transfer, and (y) any additional consideration which becomes payable to the
Participating Investor(s) and selling Key Holder upon release from escrow or satisfaction of such contingencies shall be allocated
in accordance with Sections 2.1 and 2.2 of Article IV(B) of the Restated Certificate after taking into account the previous payment
of the Initial Consideration as part of the same transfer.

 

(e)
Purchase by Selling Key Holder; Deliveries. Notwithstanding Subsection 2.2(c) above, if any Prospective Transferee
or Transferees refuse(s) to purchase securities subject to the Right of Co-Sale from any Participating Investor or Investors or
upon the failure to negotiate in good faith a Purchase and Sale Agreement reasonably satisfactory to the Participating Investors,
no Key Holder may sell any Transfer Stock to such Prospective Transferee or Transferees unless and until, simultaneously with
such sale, such Key Holder purchases all securities subject to the Right of Co-Sale from such Participating Investor or Investors
on the same terms and conditions (including the proposed purchase price) as set forth in the Proposed Transfer Notice and as provided
in Subsection 2.2(d)(i); provided, however, if such sale constitutes a Change of Control, the portion
of the aggregate consideration paid by the selling Key Holder to such Participating Investor or Investors shall be made in accordance
with the first sentence of Subsection 2.2(d)(ii). In connection with such purchase by the selling Key Holder, such Participating
Investor or Investors shall deliver to the selling Key Holder any stock certificate or certificates, properly endorsed for transfer,
representing the Capital Stock being purchased by the selling Key Holder (or request that the Company effect such transfer in
the name of the selling Key Holder). Any such shares transferred to the selling Key Holder will be transferred to the Prospective
Transferee against payment therefor in consummation of the sale of the Transfer Stock pursuant to the terms and conditions specified
in the Proposed Transfer Notice, and the selling Key Holder shall concurrently therewith remit or direct payment to each such
Participating Investor the portion of the aggregate consideration to which each such Participating Investor is entitled by reason
of its participation in such sale as provided in this Subsection 2.2(e).

 

(f)
Additional Compliance. If any Proposed Key Holder Transfer is not consummated within sixty (60) days after receipt of the
Proposed Transfer Notice by the Company, the Key Holders proposing the Proposed Key Holder Transfer may not sell any Transfer
Stock unless they first comply in full with each provision of this Section 2. The exercise or election not to exercise
any right by any Investor hereunder shall not adversely affect its right to participate in any other sales of Transfer Stock subject
to this Subsection 2.2.

 

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2.3
Effect of Failure to Comply.

 

(a)
Transfer Void; Equitable Relief. Any Proposed Key Holder Transfer not made in compliance with the requirements of this
Agreement shall be null and void ab initio, shall not be recorded on the books of the Company or its transfer agent and shall
not be recognized by the Company. Each party hereto acknowledges and agrees that any breach of this Agreement would result in
substantial harm to the other parties hereto for which monetary damages alone could not adequately compensate. Therefore, the
parties hereto unconditionally and irrevocably agree that any non-breaching party hereto shall be entitled to seek protective
orders, injunctive relief and other remedies available at law or in equity (including, without limitation, seeking specific performance
or the rescission of purchases, sales and other transfers of Transfer Stock not made in strict compliance with this Agreement).

 

(b)
Violation of First Refusal Right. If any Key Holder becomes obligated to sell any Transfer Stock to the Company or any
Investor under this Agreement and fails to deliver such Transfer Stock in accordance with the terms of this Agreement, the Company
and/or such Investor may, at its option, in addition to all other remedies it may have, send to such Key Holder the purchase price
for such Transfer Stock as is herein specified and transfer to the name of the Company or such Investor (or request that the Company
effect such transfer in the name of an Investor) on the Company’s books any certificates, instruments, or book entry representing
the Transfer Stock to be sold.

 

(c)
Violation of Co-Sale Right. If any Key Holder purports to sell any Transfer Stock in contravention of the Right of Co-Sale
(a “Prohibited Transfer”), each Participating Investor who desires to exercise its Right of Co-Sale under Subsection
2.2 may, in addition to such remedies as may be available by law, in equity or hereunder, require such Key Holder to purchase
from such Participating Investor the type and number of shares of Capital Stock that such Participating Investor would have been
entitled to sell to the Prospective Transferee had the Prohibited Transfer been effected in compliance with the terms of Subsection
2.2. The sale will be made on the same terms, including, without limitation, as provided in Subsection 2.2(d)(i) and
the first sentence of Subsection 2.2(d)(ii), as applicable, and subject to the same conditions as would have applied had
the Key Holder not made the Prohibited Transfer, except that the sale (including, without limitation, the delivery of the purchase
price) must be made within ninety (90) days after the Participating Investor learns of the Prohibited Transfer, as opposed to
the timeframe proscribed in Subsection 2.2. Such Key Holder shall also reimburse each Participating Investor for any
and all reasonable and documented out-of-pocket fees and expenses, including reasonable legal fees and expenses, incurred pursuant
to the exercise or the attempted exercise of the Participating Investor’s rights under Subsection 2.2.

 

3.
Exempt Transfers.

 

3.1
Exempted Transfers. Notwithstanding the foregoing or anything to the contrary herein, the provisions of Subsections
2.1 and 2.2 shall not apply (a) to a repurchase of Transfer Stock from a Key Holder by the Company at a price no greater
than that originally paid by such Key Holder for such Transfer Stock and pursuant to an agreement containing vesting and/or repurchase
provisions approved by a majority of the Board of Directors, (b) in the case of a Key Holder that is a natural person, upon a
transfer of Transfer Stock by such Key Holder made for bona fide estate planning purposes, either during his or her lifetime or
on death by will or intestacy to his or her spouse, child (natural or adopted), or any other direct lineal descendant of such
Key Holder (or his or her spouse) (all of the foregoing collectively referred to as “family members”), or any other
relative approved by the Board of Directors, or any custodian or trustee of any trust, partnership or limited liability company
for the benefit of, or the ownership interests of which are owned wholly by such Key Holder or any such family members, or (c)
upon a transfer to a charitable institution for philanthropic purposes; provided that in the case of clause(s) (b), (c),
or (d), the Key Holder shall deliver prior written notice to the Investors of such pledge, gift or transfer and such shares of
Transfer Stock shall at all times remain subject to the terms and restrictions set forth in this Agreement and such transferee
shall, as a condition to such Transfer, deliver a counterpart signature page to this Agreement as confirmation that such transferee
shall be bound by all the terms and conditions of this Agreement as a Key Holder (but only with respect to the securities so transferred
to the transferee), including the obligations of a Key Holder with respect to Proposed Key Holder Transfers of such Transfer Stock
pursuant to Section 2; and provided further in the case of any transfer pursuant to clauses (b), (c) or (d) above,
that such transfer is made pursuant to a transaction in which there is no consideration actually paid for such transfer.

 

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3.2
Exempted Offerings. Notwithstanding the foregoing or anything to the contrary herein, the provisions of Section 2
shall not apply to the sale of any Transfer Stock (a) to the public in an offering pursuant to an effective registration statement
under the Securities Act of 1933, as amended (a “Public Offering”); or (b) pursuant to a Deemed Liquidation
Event (as defined in the Restated Certificate).

 

3.3
Prohibited Transferees. Notwithstanding the foregoing, no Key Holder shall transfer any Transfer Stock to (a) any entity
which, in the determination of the Board of Directors, directly or indirectly competes with the Company; or (b) any customer,
distributor or supplier of the Company, if the Board of Directors should determine that such transfer would result in such customer,
distributor or supplier receiving information that would place the Company at a competitive disadvantage with respect to such
customer, distributor or supplier.

 

4.
Legend. Each certificate, instrument, or book entry representing shares of Transfer Stock held by the Key Holders or issued
to any permitted transferee in connection with a transfer permitted by Subsection 3.1 hereof shall be notated with
the following legend:

 

THE
SALE, PLEDGE, HYPOTHECATION, OR TRANSFER OF THE SECURITIES REPRESENTED HEREBY IS SUBJECT TO, AND IN CERTAIN CASES PROHIBITED BY,
THE TERMS AND CONDITIONS OF A CERTAIN RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT BY AND AMONG THE STOCKHOLDER, THE CORPORATION
AND CERTAIN OTHER HOLDERS OF STOCK OF THE CORPORATION. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY
OF THE CORPORATION.

 

Each
Key Holder agrees that the Company may instruct its transfer agent to impose transfer restrictions on the shares notated with
the legend referred to in this Section 4 above to enforce the provisions of this Agreement, and the Company agrees to promptly
do so. The legend shall be removed upon termination of this Agreement at the request of the holder.

 

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5. Lock-Up.

 

5.1
Agreement to Lock-Up. Each Key Holder hereby agrees that it will not, without the prior written consent of the managing
underwriter, during the period commencing on the date of the final prospectus relating to the Company’s initial public offering
resulting in gross proceeds in excess of $100,000,000 (the “IPO”) and ending on the date specified by the Company
and the managing underwriter (such period not to exceed one hundred eighty (l80) days), or such other period as may be requested
by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research
reports; and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in applicable
FINRA rules, or any successor provisions or amendments thereto), (a) lend, offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise
transfer or dispose of, directly or indirectly, any shares of Capital Stock held immediately prior to the effectiveness of the
registration statement for the IPO; or (b) enter into any swap or other arrangement that transfers to another, in whole or
in part, any of the economic consequences of ownership of the Capital Stock, whether any such transaction described in clause (a)
or (b) above is to be settled by delivery of Capital Stock or other securities, in cash or otherwise. The foregoing provisions
of this Section 5 shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, and
shall only be applicable to the Key Holders if all officers, directors and holders of more than one percent (1%) of the outstanding
Common Stock (after giving effect to the conversion into Common Stock of all outstanding Series A Preferred Stock) enter into
similar agreements. The underwriters in connection with the IPO are intended third-party beneficiaries of this Section 5
and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Key Holder
further agrees to execute such agreements as may be reasonably requested by the underwriters in the IPO that are consistent with
this Section 5 or that are necessary to give further effect thereto.

 

5.2
Stop Transfer Instructions. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions
with respect to the shares of Capital Stock of each Key Holder (and transferees and assignees thereof) until the end of such restricted
period.

 

6. Miscellaneous.

 

6.1
Term. This Agreement shall automatically terminate upon the earlier of (a) immediately prior to the consummation of the
Company’s IPO; and (b) the consummation of a Deemed Liquidation Event (as defined in the Restated Certificate).

 

6.2
Stock Split. All references to numbers of shares in this Agreement shall be appropriately adjusted to reflect any stock
dividend, split, combination or other recapitalization affecting the Capital Stock occurring after the date of this Agreement.

 

6.3
Ownership. Each Key Holder represents and warrants that such Key Holder is the sole legal and beneficial owner of the shares
of Transfer Stock subject to this Agreement and that no other person or entity has any interest in such shares (other than a community
property interest as to which the holder thereof has acknowledged and agreed in writing to the restrictions and obligations hereunder).

 

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6.4
Dispute Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts
of Delaware and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit,
action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding
arising out of or based upon this Agreement except in the state courts of Delaware or the United States District Court for the
District of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such
suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its
property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum,
that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced
in or by such court. 

 

Waiver
of Jury Trial: EACH PARTY HEREBY WAIVES ITS RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS,
THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND
ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION,
CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS
SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH
PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

6.5
Notices. 

 

(a)
All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively
given upon the earlier of actual receipt or (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic
mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s
next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage
prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying
next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at
their address as set forth on Schedule A or Schedule B hereof, as the case may be, or to such email address, facsimile
number or address as subsequently modified by written notice given in accordance with this Section 6.5. If notice is given
to the Company, it shall be sent to GI Dynamics, Inc., 320 Congress Avenue, Floor 3, Boston, MA 02205, Attention: Chief
Executive Officer; and a copy (which shall not constitute notice) shall also be sent to Mitchell Silberberg & Knupp, LLP,
437 Madison Avenue, 25th Floor, New York, NY 10022, Attention: Blake Baron, Esq., email: bjb@msk.com; and if notice
is given to the Investors, a copy shall also be given to Wilson Sonsini Goodrich & Rosati PC, 650 Page Mill Road, Palo Alto,
CA 94304, Attention: Elton Satusky, Esq., email: esatusky@wsgr.com.

 

    10

     

    

 

(b)
Consent to Electronic Notice. Each Investor and Key Holder consents to the delivery of any stockholder notice pursuant
to the Delaware General Corporation Law (the “DGCL”), as amended or superseded from time to time, by electronic
transmission pursuant to Section 232 of the DGCL (or any successor thereto) at the electronic mail address or the facsimile number
set forth below such Investor’s or Key Holder’s name on the Schedules hereto, as updated from time to time by notice
to the Company, or as on the books of the Company. Each Investor and Key Holder agrees to promptly notify the Company of any change
in its electronic mail address, and that failure to do so shall not affect the foregoing.

 

6.6
Entire Agreement. This Agreement (including, the Exhibits and Schedules hereto) constitutes the full and entire understanding
and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating
to the subject matter hereof existing between the parties are expressly canceled.

 

6.7
Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement,
upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching
or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence 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, shall be cumulative
and not alternative.

 

6.8
Amendment; Waiver and Termination. This Agreement may be amended, modified or terminated (other than pursuant to Section
6.1 above) and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively
or prospectively) only by a written instrument executed by (a) the Company, (b) the Key Holders holding a majority of the shares
of Transfer Stock then held by all of the Key Holders provided that such consent shall not be required if the Key Holders
do not then own shares of Capital Stock representing at least 1% of the outstanding Capital Stock of the Company, and (c) the
holders of a majority of the shares of Common Stock issued or issuable upon conversion of the then outstanding shares of Series
A Preferred Stock held by the Investors (voting as a single separate class and on an as-converted basis). Any amendment, modification,
termination or waiver so effected shall be binding upon the Company, the Investors, the Key Holders and all of their respective
successors and permitted assigns whether or not such party, assignee or other shareholder entered into or approved such amendment,
modification, termination or waiver. The Company shall give prompt written notice of any amendment, modification or termination
hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, modification, termination or
waiver. No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances, shall
be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

 

    11

     

    

 

6.9
Assignment of Rights.

 

(a)
The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and permitted
assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and permitted assigns any rights, remedies, obligations, or liabilities under or by
reason of this Agreement, except as expressly provided in this Agreement.

 

(b)
Any successor or permitted assignee of any Key Holder, including any Prospective Transferee who purchases shares of Transfer Stock
in accordance with the terms hereof, shall deliver to the Company and the Investors, as a condition to any transfer or assignment,
a counterpart signature page hereto pursuant to which such successor or permitted assignee shall confirm their agreement to be
subject to and bound by all of the provisions set forth in this Agreement that were applicable to the predecessor or assignor
of such successor or permitted assignee.

 

(c)
The rights of the Investors hereunder are not assignable without the Company’s written consent (which shall not be unreasonably
withheld, delayed or conditioned), except (i) by an Investor to any Affiliate, or (ii) to an assignee or transferee who acquires
at least 500,000 shares of Capital Stock (as adjusted for any stock combination, stock split, stock dividend, recapitalization
or other similar transaction), it being acknowledged and agreed that any such assignment, including an assignment contemplated
by the preceding clauses (i) or (ii) shall be subject to and conditioned upon any such assignee’s delivery to the Company
and the other Investors of a counterpart signature page hereto pursuant to which such assignee shall confirm their agreement to
be subject to and bound by all of the provisions set forth in this Agreement that were applicable to the assignor of such assignee.

 

(d)
Except in connection with an assignment by the Company by operation of law to the acquirer of the Company, the rights and obligations
of the Company hereunder may not be assigned under any circumstances.

 

6.10
Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability
of any other provision.

 

6.11
Additional Stockholders. 

 

(a)
Additional Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares
of the Company’s Series A Preferred Stock after the date hereof, any purchaser of such shares of Series A Preferred Stock
may become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement and
thereafter shall be deemed an “Investor” for all purposes hereunder.

 

(b)
Additional Key Holders. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares
of Common Stock to a purchaser after the date hereof, which shares (together with any other shares of Common Stock held by such
purchaser) would constitute with respect to such purchaser more than one percent (1%) of the Company’s then outstanding
shares of Common Stock, then such purchaser may become a party to this Agreement by executing and delivering an additional counterpart
signature page to this Agreement and thereafter shall be deemed a “Key Holder” for all purposes hereunder.

 

    12

     

    

 

(c)
The Company shall use its commercially reasonable efforts to obtain any additional counterpart signature pages in the case of
clauses (a) and (b) above.

 

6.12
Governing Law. This Agreement shall be governed by the internal law of the State of Delaware, without regard to conflict
of law principles that would result in the application of any law other than the law of the State of Delaware.

 

6.13
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.

 

6.14
Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic
mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com)
or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid
and effective for all purposes. 

 

6.15
Aggregation of Stock. All shares of Capital Stock held or acquired by Affiliated entities or persons shall be aggregated
together for the purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion
such rights as among themselves in any manner they deem appropriate.

 

6.16
Specific Performance. In addition to any and all other remedies that may be available at law in the event of any breach
of this Agreement, each Investor shall be entitled to specific performance of the agreements and obligations of the Company and
the Key Holders hereunder and to such other injunction or other equitable relief as may be granted by a court of competent jurisdiction.

 

6.17
Consent of Spouse. If any Key Holder is married on the date of this Agreement, such Key Holder’s spouse shall execute
and deliver to the Company a Consent of Spouse in the form of Exhibit A hereto (“Consent of Spouse”),
effective on the date hereof. Notwithstanding the execution and delivery thereof, such consent shall not be deemed to confer or
convey to the spouse any rights in such Key Holder’s shares of Transfer Stock that do not otherwise exist by operation of
law or the agreement of the parties. If any Key Holder should marry or remarry subsequent to the date of this Agreement, such
Key Holder shall within thirty (30) days thereafter obtain his/her new spouse’s acknowledgement of and consent to the existence
and binding effect of all restrictions contained in this Agreement by causing such spouse to execute and deliver a Consent of
Spouse acknowledging the restrictions and obligations contained in this Agreement and agreeing and consenting to the same.

 

[Remainder
of Page Intentionally Left Blank]

 

    13

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

 

	 	GI
    DYNAMICS, INC.
	 	 	 
	 	By:	/s/
    Scott Schorer 
	 	Name: 	Scott Schorer
	 	Title:	Chief Executive
    Officer
	 	 	 
	 	KEY
    HOLDERS:
	 	 	 
	 	Signature: 	/s/
                                         Richard Cashin

	 	 	 
	 	Name:	Richard
                                         Cashin

	 	 	 
	 	INVESTORS:
	 	 	 
	 	CRYSTAL
    AMBER FUND LIMITED
	 	 	 
	 	By:	/s/
                                         Mark Huntley

	 	Name:  	Mark
                                         Huntley

	 	Title: 	Director

	 	Executed
                                         by Crystal Amber Asset Management (Guernsey) Ltd. as Investment Manager of Crystal Amber
                                         Fund Limited

  

Signature
Page To Right Of First Refusal And Co-Sale Agreement

 

    

     

    

 

SCHEDULE
A

 

INVESTORS

 

	Name
    and Address
	 

Crystal
Amber Fund Limited

PO
Box 286, Floor 2 

Trafalgar
Court 

St.Peter
Port 

GY1
4LY 

Guernsey 

 

    

     

    

 

SCHEDULE
B

 

KEY HOLDERS

  

	Name
    and Address	 
		 
	Richard Cashin 	 

 

    

     

    

 

EXHIBIT
A

CONSENT OF SPOUSE

 

I,
[____________________], spouse of [______________], acknowledge that I have read the Right of First Refusal and Co-Sale Agreement,
dated as of [_____ __,] 2020, to which this Consent is attached as Exhibit A (the “Agreement”), and
that I know the contents of the Agreement. I am aware that the Agreement contains provisions regarding certain rights to certain
other holders of Capital Stock of the Company upon a Proposed Key Holder Transfer of shares of Transfer Stock of the Company which
my spouse may own including any interest I might have therein.

 

I
hereby agree that my interest, if any, in any shares of Transfer Stock of the Company subject to the Agreement shall be irrevocably
bound by the Agreement and further understand and agree that any community property interest I may have in such shares of Transfer
Stock of the Company shall be similarly bound by the Agreement.

 

I
am aware that the legal, financial and related matters contained in the Agreement are complex and that I am free to seek independent
professional guidance or counsel with respect to this Consent. I have either sought such guidance or counsel or determined after
reviewing the Agreement carefully that I will waive such right.

 

Dated
as of the [__] day of [__________, _____].

 

	 	 
	 	Signature
	 	 
	 	 
	 	Print NameExhibit 10.3

 

 

 

 

GI DYNAMICS, INC.

 

INVESTORS’ RIGHTS AGREEMENT

 

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	1.   Definitions	1
	 	 
	2.   Registration Rights	4
	2.1   Demand Registration	4
	2.2   Company Registration	5
	2.3   Underwriting Requirements	6
	2.4   Obligations of the Company	7
	2.5   Furnish Information	9
	2.6   Expenses of Registration	9
	2.7   Delay of Registration	9
	2.8   Indemnification	9
	2.9   Reports Under Exchange Act	12
	2.10   Limitations on Subsequent Registration Rights	12
	2.11   “Market Stand-off” Agreement	13
	2.12   Restrictions on Transfer	13
	2.13   Termination of Registration Rights	15
	 	 
	3.   Information Rights	15
	3.1   Delivery of Financial Statements	15
	3.2   Inspection	16
	3.3   Termination of Information and Inspection Rights	16
	3.4   Confidentiality	17
	 	 
	4.   Rights to Future Stock Issuances	17
	4.1   Right of First Offer	17
	4.2   Termination	18
	 	 
	5.   Additional Covenants	19
	5.1   Board Matters	19
	5.2   Successor Indemnification	19
	5.3   Termination of Covenants	19
	 	 
	6.   Miscellaneous	19
	6.1   Successors and Assigns	19
	6.2   Governing Law	20
	6.3   Counterparts	20
	6.4   Titles and Subtitles	20
	6.5   Notices	20
	6.6   Amendments and Waivers	21
	6.7   Severability	21
	6.8   Aggregation of Stock	22
	6.9   Additional Investors	22
	6.10   Entire Agreement	22
	6.11   Dispute Resolution	22
	6.12   Delays or Omissions	23

 

Schedule A-Schedule of Investors

 

    i

     

    

  

INVESTORS’
RIGHTS AGREEMENT

 

THIS
INVESTORS’ RIGHTS AGREEMENT (this “Agreement”), is made as of the 4th day of September, 2020, by and
among GI Dynamics, Inc., a Delaware corporation (the “Company”), each of the investors listed on Schedule
A hereto and any Additional Purchaser (as defined in the Purchase Agreement) that becomes a party to this Agreement in accordance
with Subsection 6.9 hereof, which are referred to in this Agreement collectively as the “Investors”
and individually as an “Investor.”

 

RECITALS

 

WHEREAS,
the Company and the Investors are parties to that certain Series A Preferred Stock Purchase Agreement, dated as of August 10,
2020 (the “Purchase Agreement”); and

 

WHEREAS,
in order to induce the Company to enter into the Purchase Agreement and to induce the Investors to invest funds in the Company
pursuant to the Purchase Agreement, the Investors and the Company hereby agree that this Agreement shall govern the rights of
the Investors to cause the Company to register shares of Common Stock issuable to the Investors, to receive certain information
from the Company, and to participate in future equity offerings by the Company, and shall govern certain other matters as set
forth in this Agreement.

 

NOW,
THEREFORE, the parties hereby agree as follows:

 

 1. Definitions. For purposes of this Agreement:

 

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

 

 1.2 “Board of Directors” means the board of directors of the Company.

 

1.3 “Certificate
of Incorporation” means the Company’s Seventh Amended and Restated Certificate of Incorporation, as amended and/or
restated from time to time.

 

1.4 “Common
Stock” means shares of the Company’s common stock, par value $0.01 per share.

 

1.5 “Damages”
means any loss, damage, claim or liability (joint or several) to which a party hereto may become subject under the Securities
Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability (or any action in
respect thereof) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material fact
contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto; (ii) an 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 indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state
securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities
law.

 

    1

     

    

 

1.6 “Derivative
Securities” means any securities or rights convertible into, or exercisable or exchangeable for (in each case, directly
or indirectly), Common Stock, including options and warrants.

 

1.7 “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

1.8 “Excluded
Registration” means (i) a registration relating to the sale or grant of securities to employees of the Company or a
subsidiary pursuant to a stock option, stock purchase, equity incentive or similar plan; (ii) a registration relating to an SEC
Rule 145 transaction; (iii) a registration on any form that does not include substantially the same information as would be required
to be included in a registration statement covering the sale of the Registrable Securities; or (iv) a registration in which the
only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered.

 

1.9 “FOIA
Party” means a Person that, in the reasonable determination of the Board of Directors, may be subject to, and thereby
required to disclose non-public information furnished by or relating to the Company under, the Freedom of Information Act, 5 U.S.C.
552 (“FOIA”), any state public records access law, any state or other jurisdiction’s laws similar in
intent or effect to FOIA, or any other similar statutory or regulatory requirement.

 

1.10 “Form
S-1” means such form under the Securities Act as in effect on the date hereof or any successor registration form under
the Securities Act subsequently adopted by the SEC.

 

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

 

1.12 “GAAP”
means generally accepted accounting principles in the United States as in effect from time to time.

 

1.13 “Holder”
means any holder of Registrable Securities who is a party to this Agreement.

 

    2

     

    

 

1.14 “Immediate
Family Member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including, adoptive relationships, of a natural
person referred to herein.

 

1.15 “Initiating
Holders” means, collectively, Holders who properly initiate a registration request under this Agreement.

 

1.16
“IPO” means the Qualified IPO, as defined in the Certificate of Incorporation.

 

1.17
“Major Investor” means any Investor that, individually or together with such Investor’s Affiliates,
holds at least 1,000,000 shares of Registrable Securities (as adjusted for any stock split, stock dividend, combination,
recapitalization or other similar transaction effected after the date hereof).

 

1.18 “New
Securities” means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights,
options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible
or exchangeable into or exercisable for such equity securities.

 

1.19 “Person”
means any individual, corporation, partnership, trust, limited liability company, association or other entity.

 

1.20 “Registrable
Securities” means (i) the Common Stock issuable or issued upon conversion of the Series A Preferred Stock, and
(ii) any Common Stock, or any Common Stock issued or issuable (directly or indirectly) upon conversion and/or exercise of any
securities of the Company, acquired by the Investors after the date hereof, excluding, in all cases, however, any Registrable
Securities sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to
Subsection 6.1, and excluding for purposes of Section 2 any shares for which registration rights have terminated
pursuant to Subsection 2.13 of this Agreement.

 

1.21 “Registrable
Securities then outstanding” means the number of shares determined by adding the number of shares of outstanding Common
Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly) pursuant to the
then exercisable and/or convertible securities that are Registrable Securities.

 

1.22 “Restricted
Securities” means the securities of the Company required to be notated with the legend set forth in Subsection 2.12(b)
hereof.

 

 1.23 “SEC” means the Securities and Exchange Commission.

 

1.24 “SEC
Rule 144” means Rule 144 promulgated by the SEC under the Securities Act.

 

    3

     

    

 

1.25 “SEC
Rule 145” means Rule 145 promulgated by the SEC under the Securities Act.

 

1.26 “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

1.27 “Selling
Expenses” means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of
Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of the Selling
Holder Counsel borne and paid by the Company as provided in Subsection 2.6.

 

1.28 “Series
A Preferred Stock” means shares of the Company’s Series A Preferred Stock, par value $0.01 per share.

 

 2. Registration Rights. The Company covenants and agrees as follows:

 

 2.1 Demand Registration.

 

(a) Form
S-1 Demand. If at any time after the earlier of (i) three (3) years after the date of this Agreement or (ii) one hundred eighty
(180) days after the effective date of the registration statement for the IPO, the Company receives a request from Holders of
at least fifty percent (50%) of the Registrable Securities then outstanding that the Company file a Form S- 1 registration statement
with respect to at least fifty percent (50%) of the Registrable Securities then outstanding, then the Company shall (x) within
ten (10) days after the date such request is given, give notice thereof (the “Demand Notice”) to all Holders
other than the Initiating Holders; and (y) as soon as practicable, and in any event within sixty (60) days after the date such
request is given by the Initiating Holders, file a Form S-1 registration statement under the Securities Act covering all Registrable
Securities that the Initiating Holders requested to be registered and any additional Registrable Securities requested to be included
in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20)
days of the date the Demand Notice is given, and in each case, subject to the limitations of Subsections 2.1(c) and 2.3.

 

(b) Form
S-3 Demand. If at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request
from Holders of at least thirty percent (30%) of the Registrable Securities then outstanding that the Company file a Form S-3
registration statement with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate
offering price, net of Selling Expenses, of at least $5 million, then the Company shall (i) within ten (10) days after the
date such request is given, give a Demand Notice to all Holders other than the Initiating Holders; and (ii) as soon as
practicable, and in any event within forty-five (45) days after the date such request is given by the Initiating Holders,
file a Form S-3 registration statement under the Securities Act covering all Registrable Securities requested to be included
in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20)
days of the date the Demand Notice is given, and in each case, subject to the limitations of Subsections 2.1(c) and 2.3.

 

    4

     

    

 

(c) Notwithstanding
the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this Subsection 2.1
a certificate signed by the Company’s chief executive officer stating that in the good faith judgment of the Board of Directors
it would be materially detrimental to the Company and its stockholders for such registration statement to be filed and it is therefore
necessary to defer the filing of such registration statement, then the Company shall have the right to defer taking action with
respect to such filing, and any time periods with respect to filing or effectiveness thereof shall be tolled correspondingly,
for a period of not more than ninety (90) days after the request of the Initiating Holders is given; provided, however,
that the Company may not invoke this right more than once in any twelve (12) month period; and provided further that the
Company shall not register any securities for its own account or that of any other stockholder during such ninety (90) day period
other than an Excluded Registration.

 

(d) The
Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Subsection 2.1(a)(i)
during the period that is sixty (60) days before the Company’s good faith estimate of the date of filing of, and ending
on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration, provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become
effective; (ii) after the Company has effected two registrations pursuant to Subsection 2.1(a); or (iii) if the Initiating
Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request
made pursuant to Subsection 2.1(b). The Company shall not be obligated to effect, or to take any action to effect, any
registration pursuant to Subsection 2.1(b) (i) during the period that is thirty (30) days before the Company’s good
faith estimate of the date of filing of, and ending on a date that is ninety (90) days after the effective date of, a Company-initiated
registration, provided that the Company is actively employing in good faith commercially reasonable efforts to cause such
registration statement to become effective; or (ii) if the Company has effected two registrations pursuant to Subsection 2.1(b)
within the twelve (12) month period immediately preceding the date of such request. A registration shall not be counted as
“effected” for purposes of this Subsection 2.1(d) until such time as the applicable registration statement
has been declared effective by the SEC, unless the Initiating Holders withdraw their request for such registration, elect not
to pay the registration expenses therefor, and forfeit their right to one demand registration statement pursuant to Subsection
2.6, in which case such withdrawn registration statement shall be counted as “effected” for purposes of this Subsection
2.1(d); provided, that if such withdrawal is during a period the Company has deferred taking action pursuant to Subsection
2.1(c), then the Initiating Holders may withdraw their request for registration and such registration will not be counted
as “effected” for purposes of this Subsection 2.1(d).

 

2.2 Company
Registration. If the Company proposes to register (including, for this purpose, a registration effected by the Company
for stockholders other than the Holders) any of its securities under the Securities Act in connection with the public
offering of such securities solely for cash (other than in an Excluded Registration), the Company shall, at such time,
promptly give each Holder notice of such registration. Upon the request of each Holder given within twenty (20) days after
such notice is given by the Company, the Company shall, subject to the provisions of Subsection 2.3, cause to be
registered all of the Registrable Securities that each such Holder has requested to be included in such registration. The
Company shall have the right to terminate or withdraw any registration initiated by it under this Subsection 2.2
before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in
such registration. The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in
accordance with Subsection 2.6.

 

    5

     

    

 

2.3 Underwriting Requirements.

 

(a) If,
pursuant to Subsection 2.1, the Initiating Holders intend to distribute the Registrable Securities covered by their request
by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to Subsection 2.1,
and the Company shall include such information in the Demand Notice. The underwriter(s) will be selected by the Company and shall
be reasonably acceptable to a majority in interest of the Initiating Holders. In such event, the right of any Holder to include
such Holder’s Registrable Securities in such registration shall be conditioned upon such Holder’s participation in
such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein.
All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in
Subsection 2.4(e)) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting.
Notwithstanding any other provision of this Subsection 2.3, if the managing underwriter(s) advise(s) the Initiating Holders
in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders
shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of
Registrable Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities,
including the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each
Holder or in such other proportion as shall mutually be agreed to by all such selling Holders; provided, however,
that the number of Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless
all other securities are first entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with
the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one
hundred (100) shares.

 

(b) In
connection with any offering involving an underwriting of shares of the Company’s capital stock pursuant to Subsection
2.2, the Company shall not be required to include any of the Holders’ Registrable Securities in such underwriting
unless the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then
only in such quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering
by the Company. If the total number of securities, including Registrable Securities, requested by stockholders to be included
in such offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their
reasonable discretion determine is compatible with the success of the offering, then the Company shall be required to include
in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company
in their sole discretion determine will not jeopardize the success of the offering. If the underwriters determine that less
than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable
Securities that are included in such offering shall be allocated among the selling Holders in proportion (as nearly as
practicable to) the number of Registrable Securities owned by each selling Holder or in such other proportions as shall
mutually be agreed to by all such selling Holders. To facilitate the allocation of shares in accordance with the above
provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred
(100) shares. Notwithstanding the foregoing, in no event shall (i) the number of Registrable Securities included in the
offering be reduced unless all other securities (other than securities to be sold by the Company) are first entirely excluded
from the offering, or (ii) the number of Registrable Securities included in the offering be reduced below twenty-five percent
(25%) of the total number of securities included in such offering, unless such offering is the IPO, in which case the selling
Holders may be excluded further if the underwriters make the determination described above and no other stockholder’s
securities are included in such offering. For purposes of the provision in this Subsection 2.3(b) concerning
apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners,
members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate Family
Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the
foregoing Persons, shall be deemed to be a single “selling Holder,” and any pro rata reduction with respect to
such “selling Holder” shall be based upon the aggregate number of Registrable Securities owned by all Persons
included in such “selling Holder,” as defined in this sentence.

 

    6

     

    

 

2.4 Obligations
of the Company. Whenever required under this Section 2 to effect the registration of any Registrable Securities, the
Company shall, as expeditiously as reasonably possible:

 

(a) prepare
and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable
efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable
Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days
or, if earlier, until the distribution contemplated in the registration statement has been completed; provided, however,
that (i) such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains,
at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in
such registration, and (ii) in the case of any registration of Registrable Securities on Form S-3 that are intended to be offered
on a continuous or delayed basis, subject to compliance with applicable SEC rules, such one hundred twenty (120) day period shall
be extended for up to ninety (90) days, if necessary, to keep the registration statement effective until all such Registrable
Securities are sold;

 

(b) prepare
and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with
such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities
covered by such registration statement;

 

(c) furnish
to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the
Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of
their Registrable Securities;

 

    7

     

    

 

(d) use
its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other
securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided  that
the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states
or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities
Act;

 

(e) in
the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual
and customary form, with the underwriter(s) of such offering;

 

(f) use
its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed
on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar
securities issued by the Company are then listed;

 

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

 

(h) promptly
make available for inspection by the selling Holders, any managing underwriter(s) participating in any disposition pursuant to
such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the
selling Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the
Company’s officers, directors, employees, and independent accountants to supply all information reasonably requested by
any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of
the information in such registration statement and to conduct appropriate due diligence in connection therewith;

 

(i) notify
each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been
declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; and

 

(j) after
such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or
supplement such registration statement or prospectus.

 

In
addition, the Company shall ensure that, at all times after any registration statement covering a public offering of securities
of the Company under the Securities Act shall have become effective, its insider trading policy shall provide that the Company’s
directors may implement a trading program under Rule 10b5-1 of the Exchange Act.

 

    8

     

    

 

2.5 Furnish
Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section
2 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information
regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably
required to effect the registration of such Holder’s Registrable Securities.

 

2.6 Expenses
of Registration. All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications
pursuant to Section 2, including all registration, filing, and qualification fees; printers’ and accounting fees;
fees and disbursements of counsel for the Company; and the reasonable fees and disbursements, not to exceed $10,000, of one counsel
for the selling Holders (“Selling Holder Counsel”), shall be borne and paid by the Company; provided,
however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to
Subsection 2.1 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the
Registrable Securities to be registered (in which case all selling Holders shall bear such expenses pro rata based upon the number
of Registrable Securities that were to be included in the withdrawn registration), unless the Holders of a majority of the Registrable
Securities agree to forfeit their right to one registration pursuant to Subsections 2.1(a) or 2.1(b), as the case
may be; provided further that if, at the time of such withdrawal, the Holders shall have learned of a material adverse
change in the condition, business, or prospects of the Company from that known to the Holders at the time of their request and
have withdrawn the request within three (3) business days after learning of such information then the Holders shall not be required
to pay any of such expenses and shall not forfeit their right to one registration pursuant to Subsections 2.1(a) or 2.1(b).
All Selling Expenses relating to Registrable Securities registered pursuant to this Section 2 shall be borne and paid by
the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf. All Selling Expenses relating
to Registrable Securities registered pursuant to this Section 2 shall be borne and paid by the Holders pro rata on the
basis of the number of Registrable Securities registered on their behalf.

 

2.7 Delay
of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration
pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation
of this Section 2.

 

2.8 Indemnification.
If any Registrable Securities are included in a registration statement under this Section 2:

 

(a) To
the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members,
officers, directors, and stockholders of each such Holder; legal counsel and accountants for each such Holder; any
underwriter (as defined in the Securities Act) for each such Holder; and each Person, if any, who controls such Holder or
underwriter within the meaning of the Securities Act or the Exchange Act, against any Damages, and the Company will pay to
each such Holder, underwriter, controlling Person, or other aforementioned Person any legal or other expenses reasonably
incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such
expenses are incurred; provided, however, that the indemnity agreement contained in this Subsection
2.8(a) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected
without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable for any
Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity
with written information furnished by or on behalf of any such Holder, underwriter, controlling Person, or other
aforementioned Person expressly for use in connection with such registration.

 

    9

     

    

 

(b) To
the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and
each of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the
Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined in
the Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such
underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based
upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling
Holder expressly for use in connection with such registration; and each such selling Holder will pay to the Company and each other
aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any
claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity
agreement contained in this Subsection 2.8(b) shall not apply to amounts paid in settlement of any such claim or proceeding
if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided
further that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution under Subsections
2.8(b) and 2.8(d) exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by
such Holder), except in the case of fraud or willful misconduct by such Holder.

 

(c) Promptly
after receipt by an indemnified party under this Subsection 2.8 of notice of the commencement of any action (including
any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under this Subsection 2.8, give the indemnifying
party notice of the commencement thereof. The indemnifying party shall have the right to participate in such action and, to
the extent the indemnifying party so desires, participate jointly with any other indemnifying party to which notice has been
given, and to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however,
that an indemnified party (together with all other indemnified parties that may be represented without conflict by one
counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying
party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate
due to actual or potential differing interests between such indemnified party and any other party represented by such counsel
in such action. The failure to give notice to the indemnifying party within a reasonable time of the commencement of any such
action shall relieve such indemnifying party of any liability to the indemnified party under this Subsection 2.8, to
the extent that such failure materially prejudices the indemnifying party’s ability to defend such action. The failure
to give notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Subsection 2.8.

 

    10

     

    

 

(d) To
provide for just and equitable contribution to joint liability under the Securities Act in any case in which either: (i) any party
otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Subsection 2.8 but it
is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of
time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding
the fact that this Subsection 2.8 provides for indemnification in such case, or (ii) contribution under the Securities
Act may be required on the part of any party hereto for which indemnification is provided under this Subsection 2.8, then,
and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which
they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each
of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted
in such loss, claim, damage, liability, or expense, as well as to reflect 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 allegedly untrue statement of a material fact, or the omission or alleged omission of 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; provided, however, that,
in any such case (x) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable
Securities offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty
of such fraudulent misrepresentation; and provided further that in no event shall a Holder’s liability pursuant to
this Subsection 2.8(d), when combined with the amounts paid or payable by such Holder pursuant to Subsection 2.8(b),
exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the
case of willful misconduct or fraud by such Holder.

 

(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.

 

(f) Unless
otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations
of the Company and Holders under this Subsection 2.8 shall survive the completion of any offering of Registrable Securities
in a registration under this Section 2, and otherwise shall survive the termination of this Agreement.

 

    11

     

    

 

2.9 Reports
Under Exchange Act. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or
regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without
registration or pursuant to a registration on Form S-3, the Company shall:

 

(a) make
and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times
after the effective date of the registration statement filed by the Company for the IPO;

 

(b) use
commercially reasonable efforts to file with the SEC 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 the Company has become subject to such reporting requirements);
and

 

(c) furnish
to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a written
statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days
after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange
Act (at any time after the Company has become subject to such reporting requirements following the effectiveness of the registration
statement filed by the Company for the IPO), or that it qualifies as a registrant whose securities may be resold pursuant to Form
S-3 (at any time after the Company so qualifies) and (ii) such other information as may be reasonably requested in availing any
Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration (at any time
after the Company has become subject to such reporting requirements following the effectiveness of the registration statement
filed by the Company for the IPO) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

 

2.10 Limitations
on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior written
consent of the Holders of a majority of the Registrable Securities then outstanding, enter into any agreement with any holder
or prospective holder of any securities of the Company that would allow such holder or prospective holder to include such securities
in any registration unless, under the terms of such agreement, such holder or prospective holder may include such securities in
any such registration only to the extent that the inclusion of such securities will not reduce the number of the Registrable Securities
of the Holders that are included; provided  that this limitation shall not apply to Registrable Securities acquired by any
additional Investor that becomes a party to this Agreement in accordance with Subsection 6.9.

 

    12

     

    

 

2.11 “Market
Stand-off” Agreement. Each Holder hereby agrees that it will not, without the prior written consent of the managing
underwriter, during the period commencing on the date of the final prospectus relating to the registration by the Company of shares
of its Common Stock or any other equity securities under the Securities Act on a registration statement on Form S-1 or Form S-3,
and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180)
days in the case of the IPO , or such other period as may be requested by the Company or an underwriter to accommodate regulatory
restrictions on (1) the publication or other distribution of research reports, and (2) analyst recommendations and opinions, including,
but not limited to, the restrictions contained in applicable FINRA rules, or any successor provisions or amendments thereto),
or ninety (90) days in the case of any registration other than the IPO , or such other period as may be requested by the Company
or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports and
(2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in applicable FINRA rules,
or any successor provisions or amendments thereto), (i) lend; offer; pledge; sell; contract to sell; sell any option or contract
to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or
dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable
(directly or indirectly) for Common Stock (whether such shares or any such securities are then owned by the Holder or are thereafter
acquired) or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled
by delivery of Common Stock or other securities, in cash, or otherwise. The foregoing provisions of this Subsection 2.11
shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, or the transfer of any shares
to any trust for the direct or indirect benefit of the Holder or the immediate family of the Holder, provided  that the
trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further that
any such transfer shall not involve a disposition for value, and shall be applicable to the Holders only if all officers and directors
are subject to the same restrictions. The underwriters in connection with such registration are intended third-party beneficiaries
of this Subsection 2.11 and shall have the right, power and authority to enforce the provisions hereof as though they were
a party hereto. Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection
with such registration that are consistent with this Subsection 2.11 or that are necessary to give further effect thereto.

 

 2.12 Restrictions on Transfer.

 

(a) The
Series A Preferred Stock and the Registrable Securities shall not be sold, pledged, or otherwise transferred, and the Company
shall not recognize and shall issue stop-transfer instructions to its transfer agent with respect to any such sale, pledge, or
transfer, except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance with the
provisions of the Securities Act. A transferring Holder will cause any proposed purchaser, pledgee, or transferee of the Series
A Preferred Stock and the Registrable Securities held by such Holder to agree to take and hold such securities subject to the
provisions and upon the conditions specified in this Agreement.

 

    13

     

    

 

(b) Each
certificate, instrument, or book entry representing (i) the Series A Preferred Stock, (ii) the Registrable Securities, and (iii)
any other securities issued in respect of the securities referenced in the foregoing clauses (i) and (ii), upon any stock split,
stock dividend, recapitalization, merger, consolidation, or similar event, shall (unless otherwise permitted by the provisions
of Subsection 2.12(c)) be notated with a legend substantially in the following form:

 

THE
SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.

 

THE
SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE
STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 

The
Holders consent to the Company making a notation in its records and giving instructions to any transfer agent of the Restricted
Securities in order to implement the restrictions on transfer set forth in this Subsection 2.12.

 

(c) The
holder of such Restricted Securities, by acceptance of ownership thereof, agrees to comply in all respects with the provisions
of this Section 2. Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect
a registration statement under the Securities Act covering the proposed transaction, the Holder thereof shall give notice to the
Company of such Holder’s intention to effect such sale, pledge, or transfer. Each such notice shall describe the manner
and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company,
shall be accompanied at such Holder’s expense by either (i) a written opinion of legal counsel who shall, and whose legal
opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction
may be effected without registration under the Securities Act; (ii) a “no action” letter from the SEC to the effect
that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation
by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel
to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without
registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or
transfer such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company. The Company
will not require such a legal opinion or “no action” letter (x) in any transaction in compliance with SEC Rule 144;
or (y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no consideration;
provided  that each transferee agrees in writing to be subject to the terms of this Subsection 2.12. Each certificate,
instrument, or book entry representing the Restricted Securities transferred as above provided shall be notated with, except if
such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in Subsection 2.12(b), except
that such certificate instrument, or book entry shall not be notated with such restrictive legend if, in the opinion of counsel
for such Holder and the Company, such legend is not required in order to establish compliance with any provisions of the Securities
Act.

 

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2.13 Termination
of Registration Rights. The right of any Holder to request registration or inclusion of Registrable Securities in any registration
pursuant to Subsections 2.1 or 2.2 shall terminate upon the earliest to occur of:

 

(a) the
closing of a Deemed Liquidation Event, as such term is defined in the Certificate of Incorporation;

 

(b) such
time after consummation of the IPO as Rule 144 or another similar exemption under the Securities Act is available for the sale
of all of such Holder’s shares without limitation during a three-month period without registration; or

 

 (c) the five (5) year anniversary of the date of this Agreement.

 

 3. Information Rights.

 

3.1 Delivery
of Financial Statements. The Company shall deliver to each Major Investor, provided  that the Board of Directors has
not reasonably determined that such Major Investor is a competitor of the Company:

 

(a) as
soon as practicable, but in any event within ninety (90) days after the end of each fiscal year of the Company (i) a balance sheet
as of the end of such year, (ii) statements of income and of cash flows for such year, and (iii) a statement of stockholders’
equity as of the end of such year, all of which shall be audited and certified by independent public accountants of nationally
recognized standing selected by the Company, which initially shall be Wolf & Company, P.C.;

 

(b) as
soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of each
fiscal year of the Company, unaudited statements of income and cash flows for such fiscal quarter, and an unaudited balance sheet
as of the end of such fiscal quarter, all prepared in accordance with GAAP (except that such financial statements may (i) be subject
to normal year-end audit adjustments; and (ii) not contain all notes thereto that may be required in accordance with GAAP);

 

(c) to
the extent requested by a Major Investor, as soon as practicable, but in any event within thirty (30) days of the end of each
month, an unaudited income statement for such month, and an unaudited balance sheet as of the end of such month, all prepared
in accordance with GAAP (except that such financial statements (i) may be subject to normal year- end audit adjustments and (ii)
may not contain all notes thereto that may be required in accordance with GAAP);

 

(d) as
soon as practicable, but in any event before the end of each fiscal year, an annual budget and business plan for the next fiscal
year (collectively, the “Budget”);

 

provided, however,
that the Company shall not be obligated under this Subsection 3.1 to provide information (i) that the Company
reasonably determines in good faith to be a trade secret or confidential information (unless covered by an enforceable
confidentiality agreement, in a form acceptable to the Company); or (ii) the disclosure of which would adversely affect the
attorney-client privilege between the Company and its counsel.

 

    15

     

    

 

If,
for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect of such
period the financial statements delivered pursuant to the foregoing sections shall be the consolidated and consolidating financial
statements of the Company and all such consolidated subsidiaries.

 

Notwithstanding
anything else in this Subsection 3.1 to the contrary, the Company may cease providing the information set forth in this
Subsection 3.1 during the period starting with the date sixty (60) days before the Company’s good-faith estimate
of the date of filing of a registration statement if it reasonably concludes it must do so to comply with the SEC rules applicable
to such registration statement and related offering; provided  that the Company’s covenants under this Subsection
3.1 shall be reinstated at such time as the Company is no longer actively employing its commercially reasonable efforts to
cause such registration statement to become effective.

 

3.2 Inspection.
The Company shall permit each Major Investor (provided  that the Board of Directors has not reasonably determined that such
Major Investor is a competitor of the Company), at such Major Investor’s expense, to (i) visit and inspect the Company’s
properties; (ii) examine its books of account and records; and (iii) discuss the Company’s affairs, finances, and accounts
with its officers, during normal business hours of the Company as may be reasonably requested by the Major Investor; provided,
however, that the Company shall not be obligated pursuant to this Subsection 3.2 to provide access to any information
that it reasonably and in good faith considers to be a trade secret or confidential information (unless covered by an enforceable
confidentiality agreement, in form acceptable to the Company) or the disclosure of which would adversely affect the attorney-client
privilege between the Company and its counsel.

 

3.3 Termination
of Information and Inspection Rights. The covenants set forth in Subsection 3.1 and Subsection 3.2 shall terminate
and be of no further force or effect (i) immediately before the consummation of the IPO, (ii) when the Company becomes subject
to the periodic reporting requirements of Section 12(b), 12(g) or 15(d) of the Exchange Act following the date on which the Company
deregisters or is otherwise no longer subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange
Act, or (iii) upon the closing of a Deemed Liquidation Event, as such term is defined in the Certificate of Incorporation, whichever
event occurs first.

 

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3.4 Confidentiality.
Each Investor agrees that such Investor will keep confidential and will not disclose, divulge, or use for any purpose (other
than to monitor its investment in the Company) any confidential information obtained from the Company pursuant to the terms
of this Agreement (including notice of the Company’s intention to file a registration statement), unless such
confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this Subsection
3.4 by such Investor), (b) is or has been independently developed or conceived by such Investor without use of the
Company’s confidential information, or (c) is or has been made known or disclosed to such Investor by a third party
without a breach of any obligation of confidentiality such third party may have to the Company; provided, however,
that an Investor may disclose confidential information (i) to its attorneys, accountants, consultants, and other
professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company;
(ii) to any prospective purchaser of any Registrable Securities from such Investor, if such prospective purchaser agrees to
be bound by the provisions of this Subsection 3.4; (iii) to any Affiliate, partner, member, stockholder, or wholly
owned subsidiary of such Investor in the ordinary course of business, provided  that such Investor informs such Person
that such information is confidential and directs such Person to maintain the confidentiality of such information; or (iv) as
may otherwise be required by law, regulation, rule, court order or subpoena, provided that such Investor promptly
notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required
disclosure.

 

 4. Rights to Future Stock Issuances.

 

4.1 Right
of First Offer. Subject to the terms and conditions of this Subsection 4.1 and applicable securities laws, if the
Company proposes to offer or sell any New Securities, the Company shall first offer such New Securities to each Major
Investor. A Major Investor shall be entitled to apportion the right of first offer hereby granted to it in such proportions
as it deems appropriate, among (i) itself, (ii) its Affiliates and (iii) its beneficial interest holders, such as limited
partners, members or any other Person having “beneficial ownership,” as such term is defined in Rule 13d-3
promulgated under the Exchange Act, of such Major Investor (“Investor Beneficial Owners”); provided
that each such Affiliate or Investor Beneficial Owner (x) is not a competitor of the Company or FOIA Party, unless such
party’s purchase of New Securities is otherwise consented to by the Board of Directors, (y) agrees to enter into this
Agreement and each of the Voting Agreement and the Right of First Refusal and Co-Sale Agreement of even date herewith among
the Company, one or more Investors and the other parties named therein, as an “Investor” under each such
agreement (provided  that any competitor of the Company or FOIA Party shall not be entitled to any rights as a Major
Investor under Subsections 3.1, 3.2 and 4.1 hereof), and (z) agrees
to purchase at least such number of New Securities as are allocable hereunder to the Major Investor holding the fewest number
of Series A Preferred Stock and any other Derivative Securities.

 

(a) The
Company shall give notice (the “Offer Notice”) to each Major Investor, stating (i) its bona fide intention
to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon
which it proposes to offer such New Securities.

 

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(b) By
notification to the Company within twenty (20) days after the Offer Notice is given, each Major Investor may elect to
purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New
Securities which equals the proportion that the Common Stock then held by such Major Investor (including all shares of Common
Stock then issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Series A Preferred Stock
and any other Derivative Securities then held by such Major Investor) bears to the total Common Stock of the Company then
outstanding (assuming full conversion and/or exercise, as applicable, of all Series A Preferred Stock and any other
Derivative Securities then outstanding). At the expiration of such twenty (20) day period, the Company shall promptly notify
each Major Investor that elects to purchase or acquire all the shares available to it (each, a “Fully Exercising
Investor”) of any other Major Investor’s failure to do likewise. During the ten (10) day period commencing
after the Company has given such notice, each Fully Exercising Investor may, by giving notice to the Company, elect to
purchase or acquire, in addition to the number of shares specified above, up to that portion of the New Securities for which
Major Investors were entitled to subscribe but that were not subscribed for by the Major Investors which is equal to the
proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as
applicable, of Series A Preferred Stock and any other Derivative Securities then held, by such Fully Exercising Investor
bears to the Common Stock issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as
applicable, of the Series A Preferred Stock and any other Derivative Securities then held, by all Fully Exercising Investors
who wish to purchase such unsubscribed shares. The closing of any sale pursuant to this Subsection 4.1(b) shall occur
within the later of one hundred and twenty (120) days of the date that the Offer Notice is given and the date of initial sale
of New Securities pursuant to Subsection 4.1(c).

 

(c) If
all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Subsection 4.1(b),
the Company may, during the ninety (90) day period following the expiration of the periods provided in Subsection 4.1(b),
offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and
upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement
for the sale of the New Securities within such period, or if such agreement is not consummated within thirty (30) days of the
execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless
first reoffered to the Major Investors in accordance with this Subsection 4.1.

 

(d) The
right of first offer in this Subsection 4.1 shall not be applicable to (i) Exempted Securities (as defined in the Certificate
of Incorporation); (ii) shares of Common Stock issued in the IPO; and (iii) the issuance of shares of Series A Preferred Stock
to Additional Purchasers pursuant to Subsection 1.3 of the Purchase Agreement.

 

4.2 Termination.
The covenants set forth in Subsection 4.1 shall terminate and be of no further force or effect (i) immediately before the
consummation of the IPO, (ii) when the Company becomes subject to the periodic reporting requirements of Section 12(b), 12(g)
or 15(d) of the Exchange Act following the date on which the Company deregisters or is otherwise no longer subject to the periodic
reporting requirements of Section 12(g) or 15(d) of the Exchange Act, or (iii) upon the closing of a Deemed Liquidation Event,
as such term is defined in the Certificate of Incorporation, whichever event occurs first.

 

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 5. Additional Covenants.

 

5.1 Board
Matters. Unless otherwise determined by the vote of a majority of the directors then in office, the Board of Directors shall
meet at least quarterly in accordance with an agreed-upon schedule. The Company shall reimburse the directors and nonvoting observers
for all reasonable out-of-pocket travel expenses incurred (consistent with the Company’s travel policy) in connection with
attending meetings of the Board of Directors.

 

5.2 Successor
Indemnification. If the Company or any of its successors or assignees consolidates with or merges into any other Person and
is not the continuing or surviving corporation or entity of such consolidation or merger, then to the extent necessary, proper
provision shall be made so that the successors and assignees of the Company assume the obligations of the Company with respect
to indemnification of members of the Board of Directors as in effect immediately before such transaction, whether such obligations
are contained in the Company’s Amended and Restated Bylaws, the Certificate of Incorporation, or elsewhere, as the case
may be.

 

5.3 Termination
of Covenants. The covenants set forth in this Section 5, except for Subsection 5.2, shall terminate and be of
no further force or effect (i) immediately before the consummation of the IPO, (ii) when the Company becomes subject to the periodic
reporting requirements of Section 12(b), 12(g) or 15(d) of the Exchange Act following the date on which the Company deregisters
or is otherwise no longer subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Exchange Act, or (iii)
upon a Deemed Liquidation Event, as such term is defined in the Certificate of Incorporation, whichever event occurs first.

 

6.
Miscellaneous.

 

6.1 Successors
and Assigns. The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee
of Registrable Securities that (i) is an Affiliate of a Holder; or (ii) is a Holder’s Immediate Family Member or trust for
the benefit of an individual Holder or one or more of such Holder’s Immediate Family Members; provided, however,
that (x) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of
such transferee and the Registrable Securities with respect to which such rights are being transferred; and (y) such transferee
agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement,
including the provisions of Subsection 2.11. For the purposes of determining the number of shares of Registrable Securities
held by a transferee, the holdings of a transferee (1) that is an Affiliate or stockholder of a Holder; (2) who is a Holder’s
Immediate Family Member; or (3) that is a trust for the benefit of an individual Holder or such Holder’s Immediate Family
Member shall be aggregated together and with those of the transferring Holder; provided further that all transferees who
would not qualify individually for assignment of rights shall, as a condition to the applicable transfer, establish a single attorney-in-fact
for the purpose of exercising any rights, receiving notices, or taking any action under this Agreement. The terms and conditions
of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties.
Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective
successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except
as expressly provided herein.

 

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6.2 Governing
Law. This Agreement shall be governed by the internal law of the State of Delaware, without regard to conflict of law principles
that would result in the application of any law other than the law of the State of Delaware.

 

6.3 Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any
electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and
any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

6.4 Titles
and Subtitles. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing
or interpreting this Agreement.

 

6.5 Notices.

 

(a) All
notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively
given upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic
mail or facsimile during the recipient’s normal business hours, and if not sent during normal business hours, then on the
recipient’s next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt
requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight
courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All communications shall be sent
to the respective parties at their addresses as set forth on Schedule A hereto, or to the principal office of the Company
and to the attention of the Chief Executive Officer, in the case of the Company, or to such email address, facsimile number, or
address as subsequently modified by written notice given in accordance with this Subsection 6.5. If notice is given to
the Company, a copy shall also be sent to Mitchell Silberberg & Knupp LLP, 437 Madison Avenue, 25th Floor, New York, NY 10022,
Attention: Blake Baron, Esq., email: bjb@msk.com; and if notice is given to the Investors, a copy shall also be given to Wilson
Sonsini Goodrich & Rosati, P.C.s, 650 Page Mill Road, Palo Alto, CA 94304, Attention: Elton Satusky, Esq., email: esatusky@wsgr.com.

 

(b) Consent
to Electronic Notice. Each Investor consents to the delivery of any stockholder notice pursuant to the Delaware General
Corporation Law (the “DGCL”), as amended or superseded from time to time, by electronic transmission
pursuant to Section 232 of the DGCL (or any successor thereto) at the electronic mail address or the facsimile number set
forth below such Investor’s name on Schedule A hereto, as updated from time to time by notice to the Company, or
as on the books of the Company. Each Investor agrees to promptly notify the Company of any change in such Investor’s
electronic mail address, and that failure to do so shall not affect the foregoing.

 

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6.6 Amendments
and Waivers. Any term of this Agreement may be amended, modified or terminated and the observance of any term of this Agreement
may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written
consent of the Company and the holders of at least a majority of the Registrable Securities then outstanding; provided that
the Company may in its sole discretion waive compliance with Subsection 2.12(c) (and the Company’s failure to
object promptly in writing after notification of a proposed assignment allegedly in violation of Subsection 2.12(c) shall
be deemed to be a waiver); and provided further that any provision hereof may be waived by any waiving party on such party’s
own behalf, without the consent of any other party. Notwithstanding the foregoing, (a) this Agreement may not be amended, modified
or terminated and the observance of any term hereof may not be waived with respect to any Investor without the written consent
of such Investor, unless such amendment, modification, termination, or waiver applies to all Investors in the same fashion (it
being agreed that a waiver of the provisions of Section 4 with respect to a particular transaction shall be deemed to apply
to all Investors in the same fashion if such waiver does so by its terms, notwithstanding the fact that certain Investors may
nonetheless, by agreement with the Company, purchase securities in such transaction) and (b) Subsections 3.1 and 3.2,
Section 4 and any other section of this Agreement applicable to the Major Investors (including this clause (b) of this
Subsection 6.6) may not be amended, modified, terminated or waived without the written consent of the holders of at least
a majority of the Registrable Securities then outstanding and held by the Major Investors. Notwithstanding the foregoing, Schedule
A hereto may be amended by the Company from time to time to add transferees of any Registrable Securities in compliance with
the terms of this Agreement without the consent of the other parties; and Schedule A hereto may also be amended by the
Company after the date of this Agreement without the consent of the other parties to add information regarding any additional
Investor who becomes a party to this Agreement in accordance with Subsection 6.9. The Company shall give prompt notice
of any amendment, modification or termination hereof or waiver hereunder to any party hereto that did not consent in writing to
such amendment, modification, termination, or waiver. Any amendment, modification, termination, or waiver effected in accordance
with this Subsection 6.6 shall be binding on all parties hereto, regardless of whether any such party has consented thereto.
No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed
to be or construed as a further or continuing waiver of any such term, condition, or provision.

 

6.7 Severability.
In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such
invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable
to the maximum extent permitted by law.

 

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6.8 Aggregation
of Stock. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the purpose
of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such rights as among
themselves in any manner they deem appropriate.

 

6.9 Additional
Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of the Company’s
Series A Preferred Stock after the date hereof, whether pursuant to the Purchase Agreement or otherwise, any purchaser of such
shares of Series A Preferred Stock may become a party to this Agreement by executing and delivering an additional counterpart
signature page to this Agreement, and thereafter shall be deemed an “Investor” for all purposes hereunder. No action
or consent by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long as such
additional Investor has agreed in writing to be bound by all of the obligations as an “Investor” hereunder.

 

6.10 Entire
Agreement. This Agreement (including any Schedules and Exhibits hereto) constitutes the full and entire understanding and
agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the
subject matter hereof existing between the parties is expressly canceled.

 

6.11 Dispute
Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware
and to the jurisdiction of the United States District Court for the District of Delaware for the purpose of any suit, action or
other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising
out of or based upon this Agreement except in the state courts of Delaware or the United States District Court for the District
of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action
or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is
exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the
venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in
or by such court.

 

WAIVER
OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS
WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE
SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE),
BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE
PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND
REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

    22

     

    

 

6.12 Delays
or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon
any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching
or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to 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. All remedies, whether under this Agreement or by law or otherwise afforded to
any party, shall be cumulative and not alternative.

 

[Remainder
of Page Intentionally Left Blank]

 

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

 

	 	COMPANY:
	 	 	 
	 	GI DYNAMICS, INC.
	 	 	 
	 	By:	/s/ Scott Schorer

	 	Name:  	Scott Schorer
	 	Title:	Chief Executive
    Officer
	 	 	 
	 	INVESTORS:
	 	 	 
	 	CRYSTAL AMBER FUND LIMITED
	 	 	 
	 	By:	/s/ Mark Huntley

	 	Name:  	Mark Huntley

	 	Title: 	Director

	 	Executed by Crystal Amber Asset Management (Guernsey) Ltd. as
Investment Manager of Crystal Amber Fund Limited

 

Signature Page to Investors’
Rights Agreement 

 

     

     

    

 

SCHEDULE
A

 

Investors

 

Crystal
Amber Fund Limited

PO
Box 286, Floor 2

Trafalgar Court

St.Peter Port

GY1
4LY

Guernsey

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