Document:

Exhibit 10.2

 

[FORM OF]

 

INDEMNIFICATION AGREEMENT

 

THIS
INDEMNIFICATION AGREEMENT (this “Agreement”) is entered into as of the [●] day of [●],
20[●], by and between Texas Pacific Land Corporation, a Delaware corporation (the “Company”), and [●]
(“Indemnitee”).

 

RECITALS

 

A. The Company
is aware that competent and experienced persons are increasingly reluctant to serve or continue serving as directors or officers
of companies and other entities unless they are protected by comprehensive liability insurance and adequate indemnification due
to the increased exposure to litigation costs and risks resulting from service to such companies that often bear no relationship
to the compensation of such directors or officers.

 

B. The statutes
and judicial decisions regarding the duties of directors and officers are often insufficient to provide directors and officers
with adequate, reliable knowledge of the legal risks to which they are exposed or the manner in which they are expected to execute
their fiduciary duties and responsibilities.

 

C. The Company
and Indemnitee recognize that plaintiffs often seek damages in such large amounts, and the costs of litigation may be so great
(whether or not the claims are meritorious), that the defense and/or settlement of such litigation can create an extraordinary
burden on the personal resources of directors and officers.

 

D.  The board
of directors of the Company has concluded that, to attract and retain competent and experienced persons to serve as directors and
officers of the Company, it is not only reasonable and prudent but necessary to promote the best interests of the Company and its
stockholders for the Company to contractually indemnify its directors and certain of its officers in the manner set forth herein,
and to assume for itself liability for expenses and damages in connection with claims against such directors and officers in connection
with their service to the Company as provided herein. 

 

E.  The law of
the State of Delaware permits the Company to indemnify and advance defense costs to its officers and directors and to indemnify
and advance expenses to persons who serve at the request of the Company as directors, officers, employees, or agents of other corporations
or enterprises.

 

F. The Company
desires and has requested Indemnitee to serve or continue to serve as a director and/or officer of the Company, and Indemnitee
is willing to serve, or to continue to serve, as a director and/or officer of the Company if Indemnitee is furnished the indemnity
provided for herein by the Company.

 

     

     

    

 

NOW, THEREFORE,
in consideration of the foregoing premises and the mutual covenants and agreements set forth below, the parties hereto, intending
to be legally bound, hereby agree as follows:

 

1. Definitions.
For purposes of this Agreement, the following terms shall have the corresponding meanings set forth below.

 

“Change in Control”
means the occurrence of any of the following events:

 

(a) any Person becomes the “beneficial
owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing
30% or more of the total voting power represented by the Company’s then outstanding voting securities;

 

(b) the sale or disposition by the Company of all
or substantially all of the Company’s assets;

 

(c) the directors comprising the Incumbent Board and
any successor director (or directors) whose appointment as a director (or directors) is endorsed by the Incumbent Board or any
such duly endorsed successor director (or directors) cease to constitute a majority of the board of directors of the Company; or

 

(d) a merger or consolidation of the Company with
any other company, other than a merger or consolidation which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities
of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation;

 

The Reviewing Party shall have
full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change in Control of
the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change in Control and any incidental
matters relating thereto.

 

“Claim”
means a claim or action asserted by a Person in a Proceeding or any other written demand for relief in connection with or arising
from an Indemnification Event.

 

“Covered Entity”
means (i) the Company, (ii) any Person that was a predecessor in interest to the assets of the Company, (iii) any subsidiary of
the Company or the Trust or (iv) any other Person for which Indemnitee is or was or may be deemed to be serving at the request
of the Company or any subsidiary of the Company, as a director, officer, trustee, employee, controlling person, agent or fiduciary.

 

    2

     

    

 

“Disinterested
Director” means, with respect to any determination contemplated by this Agreement, any Person who, as of the time of
such determination, is a member of the Company’s board of directors but is not a party to any Proceeding then pending with
respect to any Indemnification Event.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Expenses”
means any and all direct and indirect fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees,
travel expenses, duplicating, printing and binding costs, telephone charges, postage and delivery service fees and all other disbursements
or expenses of any type or nature whatsoever reasonably incurred by Indemnitee (including, subject to the limitations set forth
in Section 3(c), reasonable attorneys’ fees and other professionals’ fees and expenses) in connection with
or arising from an Indemnification Event, including, without limitation: (i) the investigation or defense of a Claim; (ii) being,
or preparing to be, a witness or otherwise participating, or preparing to participate, in any Proceeding; (iii) furnishing, or
preparing to furnish, documents in response to a subpoena or otherwise in connection with any Proceeding; (iv) any appeal of any
judgment, outcome or determination in any Proceeding (including, without limitation, any premium, security for and other costs
relating to any cost bond, supersedeas bond or any other appeal bond or its equivalent); (v) establishing or enforcing any right
to indemnification under this Agreement (including, without limitation, pursuant to Section 2(c)), applicable law or
otherwise, regardless of whether Indemnitee is ultimately successful in such action, unless as a part of such action, a court of
competent jurisdiction over such action determines that each of the material assertions made by Indemnitee as a basis for such
action was not made in good faith or was frivolous; (vi) Indemnitee’s defense of any Proceeding instituted by or in
the name of the Company under this Agreement to enforce or interpret any of the terms of this Agreement (including, without limitation,
costs and expenses incurred with respect to Indemnitee’s counterclaims and cross-claims made in such action); and (vii) any
Federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under
this Agreement, including all interest, assessments and other charges paid or payable with respect to such payments. For purposes
of clarification, Expenses shall not include Losses.

 

“Incumbent
Board” means the directors comprising the board of directors of the Company as of the effective date of this Agreement.

 

An “Indemnification
Event” shall be deemed to have occurred if Indemnitee was or is or becomes, or is threatened to be made, a party to or
witness or other participant in, or was or is or becomes obligated to furnish or furnishes documents in response to a subpoena
or otherwise in connection with, any Proceeding by reason of the fact that Indemnitee is, was, may be deemed, or may be deemed
to have been a director, officer, trustee, employee, controlling person, agent or fiduciary of any Covered Entity, or by reason
of any action or inaction on the part of Indemnitee, related to his service in any such capacity, whether or not so serving at
the time any Loss or Expense is incurred.

 

    3

     

    

 

“Independent
Legal Counsel” means an attorney or firm of attorneys that is experienced in matters of applicable law and neither presently
is, nor in the thirty-six (36) months prior to such designation has been, retained to represent: (i) the Company or Indemnitee
in any matter material to either such party, or (ii) any other party to the Proceeding giving rise to a claim for indemnification
hereunder. Notwithstanding the foregoing, the term “Independent Legal Counsel” shall not include any person who, under
the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

“Losses”
means any and all losses, claims, damages, liabilities, judgments, fines, penalties, settlement payments, awards and amounts of
any type whatsoever incurred by Indemnitee in connection with or arising from an Indemnification Event. For purposes of clarification,
Losses shall not include Expenses.

 

“Organizational
Documents” means any and all organizational documents, charters or similar agreements or governing documents, including,
without limitation, (i) with respect to a corporation, its certificate of incorporation and bylaws, (ii) with respect to the
Trust, its Declaration of Trust, dated February 1, 1888, (iii) with respect to a limited liability company, its certificate of
formation and operating agreement, and (iv) with respect to a limited partnership, its partnership agreement.

 

“Permitted Courts”
means (a) the United States District Court for the Northern District of Texas in Dallas, Texas or, if such court does not have
subject matter jurisdiction, any district court of Dallas County in the State of Texas, and any appellate court from any such Federal
or state court, or (b) the Court of Chancery of the State of Delaware or, if such court does not have subject matter jurisdiction,
the Superior Court of the State of Delaware or, if jurisdiction is vested exclusively in the Federal courts of the United States,
the Federal courts of the United States sitting in the State of Delaware, and any appellate court from any such Federal or state
court.

 

“Person”
means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization or other entity or government or agency or political subdivision thereof and includes
the meaning set forth in Sections 13(d) and 14(d) of the Exchange Act.

 

“Proceeding”
means any threatened, pending or completed claim, action, suit, proceeding, arbitration or alternative dispute resolution mechanism,
investigation, inquiry, administrative hearing or appeal or any other actual, threatened or completed proceeding, whether brought
in the right of a Covered Entity or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal,
administrative, internal or investigative nature and whether made pursuant to federal, state or other law.

 

    4

     

    

 

“Reviewing Party”
means, with respect to determinations contemplated by this Agreement, any one of the following: (i) a majority of the Disinterested
Directors, even if such Persons would not constitute a quorum of the Company’s board of directors; (ii) a committee
consisting solely of Disinterested Directors, even if such Persons would not constitute a quorum of the Company’s board of
directors, so long as such committee was designated by a majority of the Disinterested Directors; or (iii) subject to Section 4(d),
Independent Legal Counsel designated by the Disinterested Directors (or, if there are no Disinterested Directors, the Company’s
board of directors) (in which case, any determination shall be evidenced by the rendering of a written opinion); provided, that,
in the event that a Change in Control has occurred, the Reviewing Party shall be Independent Legal Counsel (selected by Indemnitee)
in a written opinion to the board of directors of the Company, a copy of which shall be delivered to Indemnitee.

 

“SEC”
means the Securities and Exchange Commission.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Trust”
means Texas Pacific Land Trust (whether existing or non-existing under the laws of any jurisdiction of any state of the United
States).

 

“Trustees”
means John R. Norris III and David E. Barry.

 

2. Indemnification.

 

(a) Indemnification
of Losses and Expenses. If an Indemnification Event has occurred, then, subject to Section 9, the Company shall
indemnify, defend and hold harmless Indemnitee, to the fullest extent permitted by applicable law, as such law may be amended or
changed from time to time (but in the case of any such amendment or change, only to the extent that such amendment or change permits
the Company to provide broader indemnification rights than were permitted prior thereto), against any and all Losses and Expenses;
provided that the Company’s commitment set forth in this Section 2(a) to indemnify Indemnitee shall be subject
to the limitations and procedural requirements set forth in this Agreement.

 

(b) Partial Indemnification.
If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Losses
or Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion
thereof to which Indemnitee is entitled.

 

(c) Advancement
of Expenses. The Company shall advance Expenses to or on behalf of Indemnitee to the fullest extent permitted by applicable
law, as such law may be amended or changed from time to time (but in the case of any such amendment or change, only to the extent
that such amendment or change permits the Company to provide broader indemnification rights than were permitted prior thereto),
as soon as practicable, but in any event not later than 30 days after written request therefor by Indemnitee, which request shall
be accompanied by vouchers, invoices or similar evidence documenting in reasonable detail the Expenses incurred or to be incurred
by Indemnitee; provided, however, that Indemnitee need not submit to the Company any information that counsel for Indemnitee reasonably
deems is privileged and exempt from compulsory disclosure in any Proceeding. Execution and delivery of this Agreement by Indemnitee
constitutes an undertaking to repay such amounts advanced only if, and to the extent that, it shall ultimately be determined that
Indemnitee is not entitled to be indemnified by the Company as authorized by this Agreement. No other form of undertaking shall
be required other than the execution of this Agreement.

 

    5

     

    

 

(d) Contribution.
To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to
Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred
by Indemnitee, whether for Losses or Expenses, in connection with any Proceeding relating to an Indemnification Event under this
Agreement, in such proportion as is deemed fair and reasonable by the Reviewing Party in light of all of the circumstances of such
Proceeding in order to reflect (1) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or
transaction(s) giving rise to such Proceeding; and (2) the relative fault of the Company (and its directors, officers, employees
and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

 

3. Indemnification
Procedures.

 

(a) Notice of
Indemnification Event. Indemnitee shall give the Company notice as soon as practicable of any Indemnification Event of which
Indemnitee becomes aware and of any request for indemnification hereunder, provided that any failure to so notify the Company shall
not relieve the Company of any of its obligations under this Agreement, except if, and then only to the extent that, such failure
increases the liability of the Company under this Agreement.

 

(b) Notice to
Insurers. The Company shall give prompt written notice of any Indemnification Event which may be covered by the Company’s
liability insurance to the insurers in accordance with the procedures set forth in each of the applicable policies of insurance.
The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all
amounts payable as a result of such Indemnification Event in accordance with the terms of such policies; provided that nothing
in this Section 3(b) shall affect the Company’s obligations under this Agreement or the Company’s obligations
to comply with the provisions of this Agreement in a timely manner as provided.

 

(c) Selection
of Counsel. If the Company shall be obligated hereunder to pay or advance Expenses or indemnify Indemnitee with respect to
any Losses, the Company shall be entitled to assume the defense of any related Claims, with counsel selected by the Company. After
the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of
counsel subsequently incurred by Indemnitee with respect to the defense of such Claims; provided that: (i) Indemnitee shall have
the right to employ counsel in connection with any such Claim at Indemnitee’s expense; and (ii) if (A) the employment of
counsel by Indemnitee has been previously authorized by the Company, (B) counsel for Indemnitee shall have provided the Company
with written advice that there is a conflict of interest between the Company and Indemnitee in the conduct of any such defense,
or (C) the Company shall not continue to retain such counsel to defend such Claim, then the fees and expenses of Indemnitee’s
counsel shall be at the expense of the Company.

 

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4. Determination
of Right to Indemnification.

 

(a) Successful
Proceeding. To the extent Indemnitee has been successful, on the merits or otherwise, in defense of any Proceeding referred
to in Section 2(a), the Company shall indemnify Indemnitee against Losses and Expenses incurred by him in connection
therewith. If Indemnitee is not wholly successful in such Proceeding, but is successful, on the merits or otherwise, as to one
or more but less than all Claims in such Proceeding, the Company shall indemnify Indemnitee against all Losses and Expenses actually
or reasonably incurred by Indemnitee in connection with each successfully resolved Claim.

 

(b) Other Proceedings.
In the event that Section 4(a) is inapplicable, the Company shall nevertheless indemnify Indemnitee as provided in
Section 2(a) or 2(b), as applicable, or provide a contribution payment to Indemnitee as provided in Section 2(d),
to the extent determined by the Reviewing Party.

 

(c) Determination
by Reviewing Party. A Reviewing Party shall determine whether Indemnitee is entitled to indemnification, subject to the following:

 

(i) a
Reviewing Party shall act in the utmost good faith to assure Indemnitee a complete opportunity to present to such Reviewing Party
Indemnitee’s case that Indemnitee has met the applicable standard of conduct;

 

(ii) Indemnitee
shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of a Covered
Entity, including, without limitation, its financial statements, or on information supplied to Indemnitee by the officers or employees
of a Covered Entity in the course of their duties, or on the advice of legal counsel for a Covered Entity or on information or
records given, or reports made, to a Covered Entity by an independent certified public accountant or by an appraiser or other expert
selected with reasonable care by a Covered Entity. In addition, the knowledge and/or actions, or failure to act, of any director,
trustee, officer, agent or employee of a Covered Entity shall not be imputed to Indemnitee for purposes of determining the right
to indemnification under this Agreement. Whether or not the foregoing provisions of this Section 4(c)(ii) are satisfied,
it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner Indemnitee reasonably believed
to be in or not opposed to the best interests of the Company. Any Person seeking to overcome this presumption shall have the burden
of proof and the burden of persuasion, by clear and convincing evidence; and

 

(iii) if
a Reviewing Party shall not have made a determination whether Indemnitee is entitled to indemnification within thirty (30) days
after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed
to have been made and Indemnitee shall be entitled to such indemnification, absent (A) a misstatement by Indemnitee of a material
fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection
with the request for indemnification, or (B) a prohibition of such indemnification under applicable law; provided, however, that
such 30 day period may be extended by the Reviewing Party for a reasonable time, not to exceed an additional fifteen (15) days,
if the Reviewing Party in good faith requires such additional time for obtaining or evaluating documentation and/or information
relating thereto.

 

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(d) Selection
of Independent Legal Counsel. If Independent Legal Counsel is to serve as the Reviewing Party, the Company shall give written
notice to Indemnitee advising Indemnitee of the identity of the Independent Legal Counsel so selected. Indemnitee may, within fifteen
(15) days after receiving written notice of selection from the Company, deliver to the Company a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that the Independent Legal Counsel so selected does not
satisfy the criteria set forth in the definition of “Independent Legal Counsel” in Section 1, and the objection
shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the Person or Persons
so selected shall act as Independent Legal Counsel. If such written objection is properly and timely made and substantiated, then:
(i) the Independent Legal Counsel so selected may not serve as Independent Legal Counsel unless and until such objection is withdrawn
or a court has determined that such objection is without merit; and (ii) Indemnitee may, at its option, recommend to the Company
alternative Independent Legal Counsel and give written notice to the Company advising the Company of the identity of any alternative
Independent Legal Counsel so recommended, in which case the Company may select such Person or Persons to act as the Independent
Legal Counsel and the procedures required by this Section 4(d) shall apply as to such subsequent selection and notice.
If no Independent Legal Counsel that is permitted under the foregoing provisions of this Section 4(d) shall have been
selected within forty-five (45) days after the Company gives its initial notice pursuant to the first sentence of this Section 4(d),
either the Company or Indemnitee may petition a Permitted Court to resolve any objection which shall have been made by the Company
or Indemnitee to the other’s selection or recommendation of Independent Legal Counsel and/or to appoint as Independent Legal
Counsel a person to be selected by the court or such other person as the court shall designate, and the Person or Persons with
respect to whom all objections are so resolved or the Person or Persons so appointed will act as Independent Legal Counsel. In
all events, the Company shall pay all of the reasonable fees and expenses of the Independent Legal Counsel incurred in connection
with the Independent Legal Counsel’s determination as the Reviewing Party.

 

(e) Appeal to
Court. Notwithstanding a determination by a Reviewing Party that Indemnitee is not entitled to indemnification with respect
to a specific Claim or Proceeding (an “Adverse Determination”), Indemnitee shall have the right to apply to
the court in which that Claim or Proceeding is or was pending or any other court of competent jurisdiction for the purpose of enforcing
Indemnitee’s right to indemnification pursuant to this Agreement, provided that Indemnitee shall commence any such Proceeding
seeking to enforce Indemnitee’s right to indemnification within one (1) year following the date upon which Indemnitee is
notified in writing by the Company of the Adverse Determination. In the event of any dispute between the parties concerning their
respective rights and obligations hereunder, the Company shall have the burden of proving that the Company is not obligated to
make the payment or advance claimed by Indemnitee.

 

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(f) Presumption
of Success. The Company acknowledges that a settlement or other disposition short of final judgment shall be deemed a successful
resolution for purposes of Section 4(a) if it permits a party to avoid expense, delay, distraction, disruption or uncertainty.
In the event that any Proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against
Indemnitee (including, without limitation, settlement of such Proceeding with or without payment of money or other consideration),
it shall be presumed that Indemnitee has been successful on the merits or otherwise in such Proceeding. Anyone seeking to overcome
this presumption shall have the burden of proof and the burden of persuasion, by clear and convincing evidence.

 

(g) Settlement
of Claims. The Company shall not be liable to indemnify Indemnitee under this Agreement or otherwise for any amounts paid in
settlement of any Proceeding effected without the Company’s written consent. The Company shall indemnify Indemnitee under
this Agreement or otherwise for any amounts paid in the reasonable settlement of any Indemnification Event. The Company shall not
settle any Proceeding in any manner that would impose any penalty or limitation on Indemnitee without Indemnitee’s written
consent. Further, the Company shall not agree to a settlement of any Proceeding without Indemnitee’s written consent unless
a full release is provided to Indemnitee as a condition of settlement. Neither the Company nor Indemnitee will unreasonably withhold
their consent to any proposed settlement. The Company shall not be liable to indemnify Indemnitee under this Agreement with regard
to any judicial award if the Company was not given a reasonable and timely opportunity, at its expense, to participate in the defense
of such action; the Company’s liability hereunder shall not be excused if participation in the Proceeding by the Company
was barred by this Agreement.

 

5. Additional
Indemnification Rights; Non-exclusivity.

 

(a) Scope.
The Company hereby agrees to indemnify Indemnitee to the fullest extent permitted by law, even if such indemnification is not specifically
authorized by the other provisions of this Agreement or any other agreement, the Organizational Documents of any Covered Entity
or by applicable law. In the event of any change after the date of this Agreement in any applicable law (including common law),
statute or rule that expands the right of a Delaware corporation to indemnify a member of its board of directors or an officer,
trustee, employee, controlling person, agent or fiduciary, it is the intent of the parties hereto that Indemnitee shall enjoy by
this Agreement the greater benefits afforded by such change. In the event of any change in any applicable law (including common
law), statute or rule that narrows the right of a Delaware corporation to indemnify a member of its board of directors or an officer,
employee, controlling person, agent or fiduciary, such change, to the extent not otherwise required by such law, statute or rule
to be applied to this Agreement, shall have no effect on this Agreement or the parties rights and obligations hereunder except
as set forth in Section 9(a) hereof.

 

(b) Non-exclusivity.
The rights to indemnification, contribution and advancement of Expenses provided in this Agreement shall not be deemed exclusive
of, but shall be in addition to, any other rights to which Indemnitee may at any time be entitled under the Organizational Documents
of any Covered Entity, any other agreement, any vote of stockholders or Disinterested Directors, applicable law or otherwise. Furthermore,
no right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy
shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity
or otherwise. The assertion of any right or remedy hereunder or otherwise shall not prevent the concurrent assertion of any other
right or remedy. The rights to indemnification, contribution and advancement of Expenses provided in this Agreement shall continue
as to Indemnitee for any action Indemnitee took or did not take while serving in an indemnified capacity even though Indemnitee
may have ceased to serve in such capacity at the time of any Claim or Proceeding.

 

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6. No
Duplication of Payments. The Company shall not be liable under this Agreement to make any payment of any amount otherwise
indemnifiable hereunder, or for which advancement is provided hereunder, if and to the extent Indemnitee has otherwise actually
received such payment, whether pursuant to any insurance policy, the Organizational Documents of any Covered Entity or otherwise.

 

7. Mutual
Acknowledgment. Both the Company and Indemnitee acknowledge that, in certain instances, Federal law or public policy may
override applicable state law and prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise.
For example, the Company and Indemnitee acknowledge that the SEC has taken the position that indemnification is not permissible
for liabilities arising under certain Federal securities laws, and Federal legislation prohibits indemnification for certain violations
of the Employee Retirement Income Security Act of 1979, as amended. Indemnitee understands and acknowledges that the Company has
undertaken, or may be required in the future to undertake, with the SEC to submit the question of indemnification to a court in
certain circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee, and any right
to indemnification hereunder shall be subject to, and conditioned upon, any such required court determination.

 

8. Liability
Insurance. The Company shall maintain liability insurance applicable to directors and officers of the Company and former
trustees, officers, employees and agents of the Trust and shall cause Indemnitee to be named as an insured in such a manner as
to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s officers
and directors (other than in the case of an independent director liability insurance policy if Indemnitee is not an independent
or outside director). For the duration of Indemnitee’s service as a director or officer of the Company, and thereafter for
so long as Indemnitee shall be subject to any pending Claim relating to an Indemnification Event, the Company shall use commercially
reasonable efforts (taking into account the scope and amount of coverage available relative to the cost thereof) to continue to
maintain in effect policies of directors’ and officers’ liability insurance providing coverage that is at least substantially
comparable in scope and amount to that provided by the Company’s current policies of directors’ and officers’
liability insurance. The Company shall advise Indemnitee as to the general terms of, and the amounts of coverage provide by, any
liability insurance policy described in this Section 8 and shall promptly notify Indemnitee if, at any time, any such
insurance policy is terminated or expired without renewal or if the amount of coverage under any such insurance policy will be
decreased.

 

9. Exceptions.
Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement
to indemnify Indemnitee:

 

(a) against any
Losses or Expenses, or advance Expenses to Indemnitee, with respect to Claims initiated or brought voluntarily by Indemnitee, and
not by way of defense (including, without limitation, affirmative defenses and counter-claims), except (i) Claims to establish
or enforce a right to indemnification, contribution or advancement with respect to an Indemnification Event, whether under this
Agreement, any other agreement or insurance policy, the Company’s Organizational Documents or those of any Covered Entity,
applicable law or otherwise, or (ii) if the Company’s board of directors has approved specifically the initiation or bringing
of such Claim;

 

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(b) against any
Losses or Expenses, or advance Expenses to Indemnitee, with respect to Claims arising (i) with respect to an accounting of profits
made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b)
of the Exchange Act or any similar successor statute or (ii) pursuant to Sections 304 or 306 of the Sarbanes-Oxley Act of
2002, as amended, or any rule or regulation promulgated pursuant thereto; or

 

(c) if, and to the
extent, that a court of competent jurisdiction renders a final, unappealable decision that such indemnification is not lawful.

 

10. Notices.
All notices, demands and other communications to be given or delivered under or by reason of the provisions of this Agreement shall
be in writing and shall be deemed to have been given (a) when delivered by hand, with written confirmation of receipt; (b) upon
sending if sent by electronic mail to the electronic mail addresses below, with confirmation of receipt from the receiving party
by electronic mail; (c) one (1) business day after being sent by a nationally recognized overnight carrier to the addresses set
forth below; or (d) when actually delivered if sent by any other method that results in delivery, with written confirmation of
receipt:

 

If to TPL Corporation:

Texas Pacific Land Trust

1700 Pacific Avenue, Suite 2770

Dallas, TX 75201

Attn: Robert Packer

Email: robert@tpltrust.com

 

If to Indemnitee:

[●]

[●]

[●]

Email: [●] 

 

11. Miscellaneous.

 

(a) Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall constitute an original.

 

(b) Binding Effect;
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective successors and assigns (including with respect to the Company, any direct or indirect successor by
purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company) and with
respect to Indemnitee, his or her spouse, heirs, legatees, devisees, successors, assigns, executors, administrators, trustees and
personal and legal representatives. The Company shall require and cause any successor or assign (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of
the Company, to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be
required to perform if no such succession or assignment had taken place. This Agreement shall continue in effect with respect to
Claims relating to Indemnification Events regardless of whether Indemnitee continues to serve as a director, officer, employee,
controlling person, agent or fiduciary of any Covered Entity.

 

    11

     

    

 

(c) Enforceability.
This Agreement is a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its
terms.

 

(d) Consent to
Jurisdiction. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction and venue of the Permitted Courts
for all purposes in connection with any Proceeding which arises out of or relates to this Agreement, and agree that any Proceeding
instituted under this Agreement shall be commenced, prosecuted and continued only in the Permitted Courts.

 

(e) Severability.
The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any provision within
a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable,
and the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent
possible, the provisions of this Agreement (including, without limitation, each portion of this Agreement containing any provision
held to be invalid, void or otherwise unenforceable that is not itself invalid, void or unenforceable) shall be construed so as
to give effect to the extent manifested by the provision held invalid, illegal or unenforceable.

 

(f) Choice of
Law. This Agreement shall be governed by and its provisions shall be construed and enforced in accordance with, the laws of
the State of Delaware, without regard to the conflict of laws principles thereof.

 

(g) Subrogation.
In the event of payment to Indemnitee under this Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of Indemnitee who shall execute all documents required and shall do all acts that may be necessary to
secure such rights and to enable the Company effectively to bring suit to enforce such rights.

 

(h) Amendment
and Termination. No amendment, modification, termination or cancellation of this Agreement shall be effective unless it is
in a writing signed by the parties to be bound thereby. Notice of same shall be provided to all parties hereto. No waiver of any
of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not
similar) nor shall such waiver constitute a continuing waiver.

 

(i) No Construction
as Employment Agreement. This Agreement is not an employment agreement between the Company and Indemnitee and nothing contained
in this Agreement shall be construed as giving Indemnitee any right to be retained or continue in the employ or service of any
Covered Entity.

 

[Remainder of Page Intentionally Left
Blank; Signature Page Follows]

 

    12

     

    

 

In
Witness Whereof, the parties hereto have executed this Agreement on and as of the day and year first above written.

 

	 	COMPANY
	 	 
	 	  	                   
	 	 	 
	 	By:	 
	 	Name: 	 
	 	Title:	 

 

	 	INDEMNITEE
	 	 
	 	 

 

 

13EX-10.1

 Exhibit 10.1 

SUBSCRIPTION AGREEMENT 

This Subscription Agreement (this “Agreement”) is made and entered into as of December 14, 2020 (the
“Effective Date”) by and among Proteostasis Therapeutics, Inc., a Delaware corporation (the “Company”), and each of the purchasers listed on the signature pages hereto, severally and not jointly (each
a “Purchaser” and together the “Purchasers”). Certain terms used and not otherwise defined in the text of this Agreement are defined in Section 9 hereof. 

RECITALS 
 WHEREAS, the
Company is party to that certain Agreement and Plan of Merger and Reorganization by and among the Company, Pangolin Merger Sub, Inc., Yumanity Holdings, LLC and Yumanity Therapeutics, Inc. (“Yumanity”), dated as of
August 22, 2020 (the “Merger Agreement”), pursuant to which Yumanity will become a wholly-owned subsidiary of the Company; 

WHEREAS, in connection with the Merger (as defined in the Merger Agreement), the Company will effect a reverse split in the range of 1-for-20 to 1-for-30 (the “Reverse Stock Split”) of shares of its
Common Stock, par value $0.001 (the “Common Stock”); 
 WHEREAS, following the Merger, the Company will change its
name to Yumanity Therapeutics, Inc.; 
 WHEREAS, the Company desires to sell to the Purchasers, and the Purchasers desire to purchase from
the Company, $33.6 million of shares of Common Stock at a purchase price equal to the Purchase Price (defined below), in accordance with the terms and provisions of this Agreement; and 

WHEREAS, the Company and the Purchasers are executing and delivering this Agreement in reliance upon the exemption from securities
registration afforded by Section 4(a)(2) of the 1933 Act, and Rule 506 of Regulation D promulgated by the United States Securities and Exchange Commission (the “Commission”) under the 1933 Act; 

WHEREAS, the Company has engaged Jefferies LLC as its exclusive placement agent (the “Placement Agent”) for the
offering of the Securities (as defined below) on a “best efforts” basis. 
 NOW, THEREFORE, in consideration of the foregoing and
the mutual representations, warranties and covenants herein contained, the parties hereto hereby agree as follows: 

SECTION 1.        Authorization of Securities. 

1.01        The Company has authorized the sale and issuance of shares of Common Stock on the terms
and subject to the conditions set forth in this Agreement. The shares of Common Stock sold hereunder at the Closing (as defined below) shall be referred to as the “Securities.” 

SECTION 2.        Sale and Purchase of the Securities. 

2.01        Upon the terms and subject to the conditions herein contained, the Company agrees to sell
to each Purchaser, and each Purchaser agrees, severally and not jointly, to purchase from the Company, at a closing to take place remotely via exchange of executed documents (the “Closing” and the date of the Closing, the
“Closing Date”) to occur immediately following the Effective Time (as such term is defined in the Merger Agreement), that number of Securities (the “Closing Shares”) equal to the dollar amount set
forth opposite such Purchaser’s name on the Schedule of Purchasers under the heading “Subscription Amount” divided by the Purchase Price, rounded down to the nearest whole share. 

2.02        At or prior to the Closing, each Purchaser will pay the Subscription Amount set forth
opposite such Purchaser’s name on the Schedule of Purchasers by wire transfer of immediately available funds in accordance with wire instructions provided by the Company to the Purchasers prior to the Closing. On the Closing Date, the Company
will deliver, against payment of the aggregate Purchase Price, the Closing Shares in book-entry form, free and clear of all restrictive and other legends (except as expressly provided in Section 7 hereof) and shall

  
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provide evidence of such issuance from the Transfer Agent as of the Closing Date to each Purchaser. Notwithstanding anything to the contrary in this Agreement and as may be agreed to among the
Company and one or more Purchasers, a Purchaser shall not be required to fund its applicable aggregate Purchase Price until it confirms receipt of evidence of the issuance of its Closing Shares from the Transfer Agent on and as of the Closing Date.

 SECTION 3.        Representations and Warranties of the Purchasers. Each Purchaser,
severally and not jointly, represents and warrants to the Company and the Placement Agent that the statements contained in this Section 3 are true and correct as of the Effective Date, and will be true and correct as of the
Closing Date: 
 3.01        Validity. The execution, delivery and performance of this
Agreement and the consummation by the Purchaser of the transactions contemplated hereby have been duly authorized by all necessary corporate, partnership, limited liability or similar actions, as applicable, on the part of such Purchaser. This
Agreement has been duly executed and delivered by the Purchaser and constitutes a valid and binding obligation of the Purchaser, enforceable against it in accordance with its terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement of creditors’ rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief,
or other equitable remedies. 
 3.02        Brokers. There is no broker, investment banker,
financial advisor, finder or other person which has been retained by or is authorized to act on behalf of the Purchaser who might be entitled to any fee or commission for which the Company will be liable in connection with the execution of this
Agreement and the consummation of the transactions contemplated hereby. 

3.03        Investment Representations and Warranties. The Purchaser understands and agrees
that the offering and sale of the Securities has not been registered under the 1933 Act or any applicable state securities laws and is being made in reliance upon federal and state exemptions for transactions not involving a public offering which
depend upon, among other things, the bona fide nature of the investment intent and the accuracy of the Purchaser’s representations as expressed herein. 

3.04        Acquisition for Own Account. The Purchaser is acquiring the Securities for its own
account for investment and not with a view towards distribution in a manner which would violate the 1933 Act or any applicable state or other securities laws. The Purchaser is not party to any agreement providing for or contemplating the
distribution of any of the Securities. 
 3.05        No General Solicitation. The Purchaser
is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television, radio or the internet or presented
at any seminar or any other general solicitation or general advertisement. The purchase of the Securities has not been solicited by or through anyone other than the Company or the Placement Agent. 

3.06        Ability to Protect Its Own Interests and Bear Economic Risks. The Purchaser has
the capacity to protect its own interests in connection with the transactions contemplated by this Agreement and is capable of evaluating the merits and risks of the investment in the Securities. The Purchaser is able to bear the economic risk of an
investment in the Securities and is able to sustain a loss of all of its investment in the Securities without economic hardship, if such a loss should occur. 

3.07        Accredited Investor. The Purchaser is an “accredited investor” as that
term is defined in Rule 501(a) under the 1933 Act. 
 3.08        Access to
Information. The Purchaser has been given access to Company documents, records, and other information, and has had adequate opportunity to ask questions of, and receive answers from, the Company’s officers, employees, agents, accountants
and representatives concerning the Company’s business, operations, financial condition, assets, liabilities and all other matters relevant to its investment in the Securities. Purchaser understands that an investment in the Securities bears
significant risk and represents that it has reviewed the SEC Reports (as defined below), which serve to qualify certain of the Company representations set forth below. 

  
 2 

 3.09        Restricted Securities. The
Purchaser understands that the Securities will be characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company in a private placement under Section 4(a)(2) of the
1933 Act and that under such laws and applicable regulations such Securities may be resold without registration under the 1933 Act only in certain limited circumstances. 

3.10        Short Sales. Between the time the Purchaser learned about the offering
contemplated by this Agreement and the public announcement of the offering, the Purchaser has not engaged in any short sales (as defined in Rule 200 of Regulation SHO under the 1934 Act (“Short Sales”)) or similar
transactions with respect to the Common Stock or any securities exchangeable or convertible for Common Stock, nor has the Purchaser, directly or indirectly, caused any person to engage in any Short Sales or similar transactions with respect to the
Common Stock. 
 3.11        Tax Advisors. The Purchaser has had the opportunity to review
with the Purchaser’s own tax advisors the federal, state and local tax consequences of its purchase of the Securities set forth opposite such Purchaser’s name on the Schedule of Purchasers, where applicable, and the transactions
contemplated by this Agreement. The Purchaser is relying solely on the Purchaser’s own determination as to tax consequences or the advice of such tax advisors and not on any statements or representations of the Company or any of its agents and
understands that the Purchaser (and not the Company) shall be responsible for the Purchaser’s own tax liability that may arise as a result of the transactions contemplated by this Agreement. 

3.12        Residency. Such Purchaser’s residence (if an individual) or offices in which
its investment decision with respect to the Securities was made (if an entity) are located at the address immediately below such Purchaser’s name on the Schedule of Purchasers. 

SECTION 4.        Representations and Warranties by the Company. The Company represents
and warrants to the Purchasers and the Placement Agent that the statements contained in this Section 4 are true and correct as of the Effective Date, and will be true and correct as the Closing Date: 

4.01        SEC Reports. All material SEC Reports have been so filed on a timely basis. As of
the time it was filed with the Commission (or, if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing), each of the SEC Reports complied in all material respects with the applicable requirements of
the 1933 Act or the 1934 Act (as the case may be) and, as of the time they were filed, none of the SEC Reports contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading, except to the extent that the information in such SEC Report has been amended or superseded by a later SEC Report filed prior to the date
hereof. 
 4.02        Independent Accountants. The Company’s auditor has at all times
since the date of enactment of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) been: (i) a registered public accounting firm (as defined in Section 2(a)(12) of the Sarbanes-Oxley Act); (ii) to the
knowledge of the Company, “independent” with respect to the Company within the meaning of Regulation S-X under the 1934 Act; and (iii) to the knowledge of Company, in compliance with subsections
(g) through (l) of Section 10A of the 1934 Act and the rules and regulations promulgated by the Commission and the Public Company Accounting Oversight Board thereunder. 

4.03        Financial Statements. As of their respective filing dates, the financial
statements (including any related notes) contained or incorporated by reference in the SEC Reports: (i) complied as to form in all material respects with the published rules and regulations of the SEC applicable thereto; (ii) were prepared
in accordance with U.S. generally accepted accounting principles (“GAAP”) (except as may be indicated in the notes to such financial statements or, in the case of unaudited financial statements, as permitted by Form 10-Q of the Commission, and except that the unaudited financial statements may not contain footnotes and are subject to normal and recurring year-end adjustments that are not
reasonably expected to be material in amount) applied on a consistent basis unless otherwise noted therein throughout the periods indicated; and (iii) fairly present in all material respects the consolidated financial position of the Company as
of the respective dates thereof and the results of operations and cash flows of the Company for the periods covered thereby. Other than as expressly disclosed in 

  
 3 

 
the SEC Reports filed prior to the date hereof, there has been no material change in the Company’s accounting methods or principles that would be required to be disclosed in the
Company’s financial statements in accordance with GAAP. The books of account and other financial records of Company and each of its subsidiaries are true and complete in all material respects. 

4.04        No Material Adverse Change in Business. Except as otherwise stated or disclosed in
the SEC Reports, since September 30, 2020, (i) there has been no effect, change, condition, event, circumstance, occurrence, result, state of facts or development that has or would reasonably be expected to be materially adverse to the
business, financial condition, assets, operations or financial performance of the Company and its subsidiaries, taken as a whole (a “Material Adverse Effect”), other than any such change arising from steps taken by the
Company after September 30, 2020 to terminate personnel, to amend or terminate contracts, and to discontinue or wind-down certain business activities, (ii) there have been no transactions entered into by the Company or any of its
subsidiaries, other than those in the ordinary course of business and except as contemplated in this Agreement and the Merger Agreement, which are material with respect to the Company and its subsidiaries considered as one enterprise, and
(iii) there has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its capital stock. 

4.05        Good Standing of the Company. The Company has been duly incorporated and is
validly existing as a corporation in good standing under the laws of the State of Delaware and has corporate power and authority to own, lease and operate its properties and to conduct its business as disclosed in the SEC Reports and to enter into
and perform its obligations under this Agreement; and the Company is duly qualified as a foreign corporation to transact business and is in good standing in each other jurisdiction in which such qualification is required, whether by reason of the
ownership or leasing of property or the conduct of business, except where the failure so to qualify or to be in good standing would not result in a Material Adverse Effect. 

4.06        Good Standing of Subsidiaries. Each subsidiary of the Company has been duly
incorporated or organized and is validly existing in good standing under the laws of the jurisdiction of its incorporation or organization, has corporate or similar power and authority to own, lease and operate its properties and to conduct its
business as described in the SEC Reports and is duly qualified to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of
business, except where the failure to so qualify or to be in good standing would not result in a Material Adverse Effect. All of the issued and outstanding capital stock of each subsidiary has been duly authorized and validly issued, is fully paid
and non-assessable and is owned by the Company, directly or through subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance, claim or equity. None of the outstanding shares
of capital stock of any subsidiary were issued in violation of the preemptive or similar rights of any securityholder of such subsidiary. For the avoidance of doubt, the term “subsidiary” and “subsidiaries” shall
include Yumanity from and after the Effective Time. 
 4.07        Capitalization. As of the
date hereof, the Company has an authorized capitalization as set forth in the SEC Reports and, as of immediately prior to the Closing, the Company will have an authorized capitalization as disclosed in the registration statement on Form S-4 filed with the Commission registering the shares of the Company’s capital stock to be issued pursuant to the Merger Agreement (in the form declared effective by the Commission, the “S-4 Registration Statement”). The outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and
non-assessable. None of the outstanding shares of capital stock of the Company were issued in violation of the preemptive or other similar rights of any securityholder of the Company which have not been
waived. 
 4.08        Validity. This Agreement has been duly authorized, executed and
delivered by the Company and constitutes a valid and binding obligation of the Company, enforceable against it in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance,
and any other laws of general application affecting enforcement of creditors’ rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies. 

4.09        Absence of Violations, Defaults and Conflicts. Neither the Company nor any of its
subsidiaries is (i) in violation of its charter, bylaws or similar organizational document, (ii) in default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture,

  
 4 

 
mortgage, deed of trust, loan or credit agreement, note, lease or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which it or any of them may be
bound or to which any of the properties or assets of the Company or any subsidiary is subject (collectively, “Agreements and Instruments”), except for such defaults that would not, singly or in the aggregate, result in a
Material Adverse Effect, or (iii) in violation of any law, statute, rule, regulation, judgment, order, writ or decree of any arbitrator, court, governmental body, regulatory body, administrative agency or other authority, body or agency having
jurisdiction over the Company or any of its subsidiaries or any of their respective properties, assets or operations (each, a “Governmental Entity”), except for such violations that would not, singly or in the aggregate,
result in a Material Adverse Effect. The execution, delivery and the performance of this Agreement and the consummation of the transactions contemplated herein (including the issuance and sale of the Securities) and compliance by the Company with
its obligations hereunder do not and will not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default under, or result in the creation or imposition of any lien, charge or
encumbrance upon any properties or assets of the Company or any subsidiary pursuant to, the Agreements and Instruments (except for such conflicts, breaches, defaults or liens, charges or encumbrances that would not, singly or in the aggregate,
result in a Material Adverse Effect), nor will such action result in any violation of (1) the provisions of the certificate of incorporation, by-laws or similar organizational document of the Company or
any of its subsidiaries or (2) any applicable law, statute, rule, regulation, judgment, order, writ or decree of any Governmental Entity, except in the case of clause (2) for such violations as would not, singly or in the aggregate, result
in a Material Adverse Effect. 
 4.10        Absence of Proceedings. Except as disclosed in
the SEC Reports, there is no action, suit, proceeding, inquiry or investigation before or brought by any Governmental Entity now pending or, to the knowledge of the Company, threatened, against or affecting the Company or any of its subsidiaries,
which would reasonably be expected to result in a Material Adverse Effect, or which would reasonably be expected to materially and adversely affect the consummation of the transactions contemplated in this Agreement or the Merger Agreement or the
performance by the Company of its obligations hereunder and thereunder. 
 4.11        Absence
of Further Requirements. No filing with, or authorization, approval, consent, license, order, registration, qualification or decree of, any Governmental Entity is necessary or required for the performance by the Company of its obligations
hereunder, in connection with the offering, issuance, or sale of the Securities hereunder or the consummation of the transactions contemplated by this Agreement, except such as have been already obtained or as may be required to list the
Company’s common stock on any National Exchange, as may be required under state securities laws or the filings required pursuant to Section 5.02 of this Agreement. “National Exchange” means any
of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question, together with any successor thereto: the NYSE American, The New York Stock Exchange, the Nasdaq Global Market, the Nasdaq Global
Select Market and the Nasdaq Capital Market. 
 4.12        Possession of Licenses and
Permits. The Company and its subsidiaries possess such permits, licenses, approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate Governmental Entities necessary to
conduct the business now operated by them, except where the failure so to possess would not, singly or in the aggregate, result in a Material Adverse Effect. The Company and its subsidiaries are in compliance with the terms and conditions of all
Governmental Licenses, except where the failure so to comply would not, singly or in the aggregate, result in a Material Adverse Effect. All of the Governmental Licenses are valid and in full force and effect, except when the invalidity of such
Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not, singly or in the aggregate, result in a Material Adverse Effect. Neither the Company nor any of its subsidiaries has received any notice of
proceedings relating to the revocation or modification of any Governmental Licenses which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would result in a Material Adverse Effect. 

4.13        Title to Property. The Company and its subsidiaries do not own any real property.
The Company and its subsidiaries have title to all tangible personal property owned by them, in each case, free and clear of all mortgages, pledges, liens, security interests, claims, restrictions or encumbrances of any kind except such as
(i) are described in the SEC Reports or (ii) do not, singly or in the aggregate, materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company or any
of its subsidiaries; and all of the leases and subleases material to the business of the Company and its subsidiaries, considered as one enterprise, and under which the Company or any of its subsidiaries holds

  
 5 

 
properties described in the SEC Reports, are in full force and effect, and neither the Company nor any such subsidiary has any notice of any material claim of any sort that has been asserted by
anyone adverse to the rights of the Company or any subsidiary under any of the leases or subleases mentioned above, or affecting or questioning the rights of the Company or such subsidiary to the continued possession of the leased or subleased
premises under any such lease or sublease. 
 4.14        Intellectual Property. The Company
and its subsidiaries own or possess the right to use all patents, patent applications, inventions, licenses, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or
confidential information or procedures), trademarks, service marks, trade names, domain names, copyrights, and other intellectual property, and registrations and applications for registration of any of the foregoing (collectively,
“Intellectual Property”) necessary to conduct their business as presently conducted and currently contemplated to be conducted in the future as described in the SEC Reports and S-4
Registration Statement and, to the knowledge of the Company, neither the Company nor any of its subsidiaries, whether through their respective products and services or the conduct of their respective businesses, has infringed, misappropriated,
conflicted with or otherwise violated, or is currently infringing, misappropriating, conflicting with or otherwise violating, and none of the Company or its subsidiaries have received any heretofore unresolved communication or notice of infringement
of, misappropriation of, conflict with or violation of, any Intellectual Property of any other person or entity, other than as described in the SEC Reports or S-4 Registration Statement. Neither the Company
nor any of its subsidiaries has received any communication or notice (in each case that has not been resolved) alleging that by conducting their business as described in the SEC Reports or S-4 Registration
Statement, such parties would infringe, misappropriate, conflict with, or violate, any of the Intellectual Property of any other person or entity. The Company knows of no infringement, misappropriation or violation by others of Intellectual Property
owned by or licensed to the Company or its subsidiaries which would reasonably be expected to result in a Material Adverse Effect. The Company and its subsidiaries have taken all reasonable steps necessary to secure their interests in such
Intellectual Property from their employees and contractors and to protect the confidentiality of all of their confidential information and trade secrets. None of the Intellectual Property employed by the Company or its subsidiaries has been obtained
or is being used by the Company or its subsidiaries in violation of any contractual obligation binding on the Company or any of its subsidiaries or, to the knowledge of the Company, any of their respective officers, directors or employees, except as
would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. All Intellectual Property owned or exclusively licensed by the Company or its subsidiaries is free and clear of all liens, encumbrances, defects
or other restrictions (other than non-exclusive licenses granted in the ordinary course of business), except those that would not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect. The Company and its subsidiaries are not subject to any judgment, order, writ, injunction or decree of any court or any Governmental Entity, nor has the Company or any of its subsidiaries entered into or become a party to any
agreement made in settlement of any pending or threatened litigation, which materially restricts or impairs their use of any Intellectual Property. 

4.15        Company IT Systems. The Company and its subsidiaries own or have a valid right to
access and use all computer systems, networks, hardware, software, databases, websites, and equipment used to process, store, maintain and operate data, information, and functions used in connection with the business of the Company and its
subsidiaries (the “Company IT Systems”), except as would not, individually or in the aggregate, have a Material Adverse Effect. The Company IT Systems are adequate for, and operate and perform in all material respects as
required in connection with, the operation of the business of the Company and its subsidiaries as currently conducted. The Company and its subsidiaries have implemented commercially reasonable backup, security and disaster recovery technology
consistent in all material respects with applicable regulatory standards and customary industry practices. 

4.16        Cybersecurity. Except as would not reasonably be expected to have a Material
Adverse Effect, (i) there has been no security breach or other compromise of or relating to the Company IT Systems; (ii) the Company has not been notified of, and has no knowledge of any event or condition that would reasonably be expected
to result in, any such security breach or other compromise of the Company IT Systems; (iii) the Company and its subsidiaries have implemented policies and procedures with respect to the Company IT Systems that are reasonably consistent with
industry standards and practices, or as required by applicable regulatory standards; and (iv) the Company and its subsidiaries are presently in material compliance with all applicable laws or statutes, judgments, orders, rules and
regulations of any court or arbitrator or governmental or regulatory authority and contractual obligations relating to the privacy and security of the Company IT Systems and to the protection of the Company IT Systems from unauthorized use, access,
misappropriation or modification. 

  
 6 

 4.17        Environmental Laws. The Company
and each of its subsidiaries are in material compliance with all applicable Environmental Laws, which compliance includes the possession by the Company of all permits and other Governmental Authorizations required under applicable Environmental Laws
and compliance with the terms and conditions thereof, except for any failure to be in such compliance that, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. Neither the Company nor any
of its subsidiaries has received since January 1, 2018 (or prior to that time, which is pending and unresolved), any written notice or other communication (in writing or otherwise), whether from a Governmental Entity or other Person, that
alleges that the Company or any of its subsidiaries is not in compliance with or has liability pursuant to any Environmental Law and, to the knowledge of the Company, there are no circumstances that would reasonably be expected to prevent or
interfere with the Company’s or any of its subsidiaries’ compliance in any material respects with any Environmental Law, except where such failure to comply or such liability would not reasonably be expected to have a Material Adverse
Effect. No current or (during the time a prior property was leased or controlled by the Company or any of its subsidiaries) prior property leased or controlled by the Company or any of its subsidiaries has had a release of or exposure to
Hazardous Materials in violation of Environmental Law, except as would not reasonably be expected to have a Material Adverse Effect. 

4.18        Accounting Controls and Disclosure Controls. The Company maintains a system of
internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the 1934 Act) that is sufficient to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP, including policies and procedures sufficient to provide reasonable assurance (i) that the Company maintains records
that in reasonable detail accurately and fairly reflect the Company’s transactions and dispositions of assets, (ii) that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP,
(iii) that receipts and expenditures are made only in accordance with authorizations of management and the Company’s Board of Directors, and (iv) regarding prevention or timely detection of the unauthorized acquisition, use or
disposition of the Company’s assets that could have a material effect on the Company’s financial statements. The Company has evaluated the effectiveness of its internal control over financial reporting and, to the extent required by
applicable law, presented in any applicable SEC Report that is a report on Form 10-K or Form 10-Q (or any amendment thereto) its conclusions about the effectiveness of
the internal control over financial reporting as of the end of the period covered by such report or amendment based on such evaluation. The Company has disclosed to its auditors and the Audit Committee of the Company’s Board of Directors
(A) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report
financial information and (B) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting. Except as disclosed in the SEC Reports
filed prior to the date hereof, the Company has not identified any material weaknesses in the design or operation of the Company’s internal control over financial reporting. Since March 31, 2018, there have been no material changes in the
Company’s internal control over financial reporting. 
 The Company’s “disclosure controls and procedures” (as defined
in Rules 13a-15(e) and 15d-15(e) of the 1934 Act) are reasonably designed to ensure that all information (both financial and
non-financial) required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported within the time periods specified in the rules
and forms of the Commission, and that all such information is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure. 

4.19        Compliance with the Sarbanes-Oxley Act. The Company is in compliance in all
material respects with all provisions of the Sarbanes-Oxley Act of 2002 and all rules and regulations promulgated thereunder or implementing the provisions thereof that are in effect and with which the Company is required to comply. 

4.20        Payment of Taxes. All United States federal income tax returns of the Company and
its subsidiaries required by law to be filed have been filed and all taxes shown by such returns or otherwise assessed, which are due and payable, have been paid, except assessments against which appeals have been or will be promptly

  
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taken and as to which adequate reserves have been provided. No assessment in connection with United States federal tax returns has been made against the Company. The Company and its subsidiaries
have filed all other tax returns that are required to have been filed by them through the date hereof or have timely requested extensions thereof pursuant to applicable foreign state, local or other law except insofar as the failure to file such
returns would not result in a Material Adverse Effect, and has paid all taxes due pursuant to such returns or all taxes due and payable pursuant to any assessment received by the Company and its subsidiaries, except for such taxes, if any, as are
being contested in good faith and as to which adequate reserves have been established by the Company or its subsidiaries and except where the failure to pay such taxes would not result in a Material Adverse Effect. The charges, accruals and reserves
on the books of the Company in respect of any income and corporation tax liability for any years not finally determined are adequate to meet any assessments or reassessments for additional income tax for any years not finally determined, except to
the extent of any inadequacy that would not result in a Material Adverse Effect. 

4.21        ERISA. Except as would not reasonably be expected to have a Material Adverse
Effect: (i) at no time in the past six years has the Company or any ERISA Affiliate maintained, sponsored, participated in, contributed to or had any liability or obligation in respect of any Employee Benefit Plan subject to Title IV of ERISA
or Section 412 of the Code, any “multiemployer plan” as defined in Section 3(37) of ERISA or any multiple employer plan for which the Company or any ERISA Affiliate has incurred or could incur material liability under
Section 4063 or 4064 of ERISA, (ii) no “welfare benefit plan” as defined in Section 3(1) of ERISA provides or promises, or at any time provided or promised, retiree health, or other post-termination benefits except to
the extent such benefit is fully insured or as may be required by the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, or similar state law and (iii) each Employee Benefit Plan is and has been operated in compliance with its
terms and all applicable laws, including but not limited to ERISA and the Code. Each Employee Benefit Plan intended to be qualified under Code Section 401(a) has a favorable determination or opinion letter from the Internal Revenue Service
upon which it can rely, and any such determination or opinion letter remains in effect and has not been revoked and no event has occurred and no facts or circumstances exist that could reasonably be expected to result in the loss of qualification or
tax exemption of any such Employee Benefit Plan. The Company does not have any obligations under any collective bargaining agreement with any union. As used in this Section 4.21, “Code” means the
Internal Revenue Code of 1986, as amended; “Employee Benefit Plan” means any “employee benefit plan” within the meaning of Section 3(3) of ERISA, including, without limitation, all equity and equity-based,
severance, employment, change-in-control, medical, disability, fringe benefit, bonus, incentive, deferred compensation, employee loan and all other employee benefit
plans, agreements, programs, policies or other arrangements, whether or not subject to ERISA, under which (x) any current or former employee, director, independent contractor or other service provider of the Company or its subsidiaries has any
present or future right to benefits and which are contributed to, sponsored by or maintained by the Company or any of the subsidiaries or (y) the Company or any of the subsidiaries has had or has any present or future direct or contingent
obligation or liability; “ERISA” means the Employee Retirement Income Security Act of 1974, as amended; and “ERISA Affiliate” means any member of the company’s controlled group as determined
pursuant to Code Section 414(b), (c), (m) or (o), with respect to any Person, each business or entity under “common control” with such Person within the meaning of Section 4001(a)(14) of ERISA. 

4.22        Insurance. The Company and the subsidiaries carry or are entitled to the benefits
of insurance, with what the Company reasonably believes to be financially sound and reputable insurers, in such amounts and covering such risks as is adequate for the conduct of their respective businesses and the value of their respective
properties and assets, and all such insurance is in full force and effect. The Company has no reason to believe that it or any of the subsidiaries will not be able (i) to renew its existing insurance coverage as and when such policies expire or
(ii) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not result in a Material Adverse Effect.

4.23        Investment Company Act. The Company is not required, and upon the issuance and
sale of the Securities will not be required, to register as an “investment company” under the Investment Company Act of 1940, as amended. 

4.24        No Unlawful Payments. None of the Company, any of its subsidiaries or, to the
knowledge of the Company, any director, officer, agent, employee, Affiliate or other person acting on behalf of the Company or any of its subsidiaries has taken any action, directly or indirectly, that would result in a violation by

  
 8 

 
such persons of any applicable anti-corruption laws, including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an
offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “government official” (including any officer or employee of a
government or government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political
office) in violation of any applicable anti-corruption laws, and the Company and its subsidiaries have conducted their businesses in compliance with applicable anti-corruption laws and have instituted and maintain policies and procedures designed to
ensure continued compliance therewith. 
 4.25        Compliance with Anti-Money Laundering
Laws. The operations of the Company and its subsidiaries are and have been conducted at all times in compliance in all material respects with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any
Governmental Entity (collectively, the “Anti-Money Laundering Laws”); and no action, suit or proceeding by or before any Governmental Entity involving the Company or any of its subsidiaries with respect to the Anti-Money
Laundering Laws is pending or, to the knowledge of the Company, threatened. 
 4.26        No
Conflicts with Sanctions Laws. None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee, Affiliate or other person acting on behalf of the Company or any of its subsidiaries is an
individual or entity currently the subject or target of any sanctions administered or enforced by the United States Government, including, without limitation, the U.S. Department of the Treasury’s Office of Foreign Assets Control, the United
Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”), nor is the Company or any of its subsidiaries located, organized or resident in a
country or territory that is the subject of Sanctions; and the Company will not knowingly directly or indirectly use the proceeds of the sale of the Securities, or lend, contribute or otherwise make available such proceeds to any subsidiaries, joint
venture partners or other Person, to fund any activities of or the business with any Person, or in any country or territory, that, at the time of such funding, is the subject of Sanctions or in any other manner that will result in violation by any
Person of Sanctions. 
 4.27        Regulatory Matters. Except as would not, singly or
in the aggregate, result in a Material Adverse Effect: (i) neither the Company nor any of its subsidiaries has received any FDA Form 483, notice of adverse finding, warning letter or other correspondence or notice from the U.S. Food and
Drug Administration (“FDA”) or any other Governmental Entity alleging or asserting noncompliance with any Applicable Laws (as defined in clause (ii) below) or Authorizations (as defined in clause (iii) below);
(ii) the Company and each of its subsidiaries is and has been in compliance with statutes, laws, ordinances, rules and regulations applicable to the Company and its subsidiaries for the ownership, testing, development, manufacture,
packaging, processing, use, distribution, marketing, labeling, promotion, sale, offer for sale, storage, import, export or disposal of any product manufactured or distributed by the Company, including without limitation, the Federal Food, Drug, and
Cosmetic Act, 21 U.S.C. § 301, et seq., similar laws of other Governmental Entities and the regulations promulgated pursuant to such laws (collectively, “Applicable Laws”); (iii) the Company and each of its
subsidiaries possesses all licenses, certificates, approvals, clearances, authorizations, permits and supplements or amendments thereto required by any such Applicable Laws and/or to carry on its businesses as now conducted
(“Authorizations”) and such Authorizations are valid and in full force and effect and the Company is not in violation of any term of any such Authorizations; (iv) neither the Company nor any of its subsidiaries has
received notice of any ongoing claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any Governmental Entity or third party alleging that any product, operation or activity is in violation of any
Applicable Laws or Authorizations or has any knowledge that any such Governmental Entity or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding, nor, to the Company’s knowledge, has
there been any noncompliance with or violation of any Applicable Laws by the Company or any of its subsidiaries that could reasonably be expected to require the issuance of any such communication or result in an investigation, corrective action, or
enforcement action by FDA or similar Governmental Entity; (v) neither the Company nor any of its subsidiaries has received notice that any Governmental Entity has taken, is taking or intends to take action to limit, suspend, modify or revoke
any Authorizations or has any knowledge that any such Governmental Entity is threatening or is considering such action; and (vi) the Company and each of its subsidiaries has filed, obtained, 

  
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maintained or submitted all reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required by any Applicable Laws or Authorizations and
that all such reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments were complete, correct and not misleading on the date filed (or were corrected or supplemented by a subsequent submission).
Neither the Company, any subsidiary nor, to the Company’s knowledge, any of their respective directors, officers, employees or agents has been convicted of any crime under any Applicable Laws or has been the subject of an FDA debarment
proceeding. Neither the Company nor any subsidiary has been nor is now subject to FDA’s Application Integrity Policy. To the Company’s knowledge, neither the Company, any subsidiary nor any of its directors, officers, employees or agents,
has made, or caused the making of, any false statements on, or material omissions from, any other records or documentation prepared or maintained to comply with the requirements of the FDA or any other Governmental Entity. Neither the Company, any
subsidiary nor, to the Company’s knowledge, any of their respective directors, officers, employees or agents, have with respect to each of the following statutes, or regulations promulgated thereto, as applicable: (1) engaged in activities
under 42 U.S.C. §§ 1320a-7b or 1395nn; (2) knowingly engaged in any activities under 42 U.S.C. § 1320a-7b or the Federal False Claims Act, 31 U.S.C.
§ 3729; or (3) knowingly and willfully engaged in any activities under 42 U. S.C.§ 1320a-7b, which are prohibited, cause for civil penalties, or constitute a mandatory or permissive exclusion
from Medicare, Medicaid, or any other State Health Care Program or Federal Health Care Program. 

4.28        Research, Studies and Tests. The research, nonclinical and clinical studies and
tests conducted by, or to the knowledge of the Company, or on behalf of the Company and its subsidiaries have been and, if still pending, are being conducted with reasonable care and in all material respects in accordance with experimental
protocols, procedures and controls pursuant to all Applicable Laws and Authorizations; the descriptions of the results of such research, nonclinical and clinical studies and tests contained in the SEC Reports are accurate and complete in all
material respects and fairly present in all material respects the data derived from such research, nonclinical and clinical studies, and tests; the Company is not aware of any research, nonclinical or clinical studies or tests, the results of which
the Company believes reasonably call into question the research, nonclinical or clinical study or test results described or referred to in the SEC Reports when viewed in the context in which such results are described; and neither the Company nor,
to the knowledge of the Company, any of its subsidiaries has received any notices or correspondence from any Governmental Entity that will require the termination, suspension or material modification of any research, nonclinical or clinical study or
test conducted by or on behalf of the Company or its subsidiaries, as applicable. 

4.29        Employment Matters. The Company and its subsidiaries are in compliance in all
material respects with all applicable laws relating to the employment of labor, including but not limited to those related to wages, hours, collective bargaining, equal employment opportunity, occupational health and safety, immigration, individual
and collective consultation, notice of termination, and redundancy, and are not liable for any arrears of wages, taxes, penalties or other sums for failure to comply with any of the foregoing. 

4.30        Private Placement. Neither the Company nor its subsidiaries, nor any person acting
on its or their behalf, has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security under any circumstances that would require registration under the 1933 Act of the Securities being sold
pursuant to this Agreement. Assuming the accuracy of the representations and warranties of the Purchasers contained in Section 3 hereof, the issuance of the Securities is exempt from registration under the 1933 Act. 

4.31        Registration Rights. Except as required pursuant to the Registration Rights
Agreement (as defined below) or as disclosed in the SEC Reports or S-4 Registration Statement, the Company is presently not under any obligation, and has not granted any rights, to register under the 1933 Act
any of the Company’s presently outstanding securities or any of its securities that may hereafter be issued that have not expired or been satisfied. 

4.32        No Disqualification Events. No “bad actor” disqualifying event described
in Rule 506(d)(1)(i)-(viii) of the 1933 Act (a “Disqualification Event”) is applicable to the Company or, to the Company’s knowledge, any Company Covered Person (as defined below), except for a Disqualification Event as
to which Rule 506(d)(2)(ii–iv) or (d)(3) is applicable. “Company Covered Person” means, with respect to the Company as an “issuer” for purposes of Rule 506 promulgated under the 1933 Act, any person listed in
the first paragraph of Rule 506(d)(1). Other than the Placement Agent, the Company is not aware of any Person (other than any Company Covered Person) that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers
in connection with the sale of the Securities pursuant to this Agreement. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Placement Agent a copy of any disclosures
provided thereunder. 

  
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 4.33        No General Solicitation. Neither
the Company nor, to the Company’s knowledge, any person acting on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising. 

4.34        Certain Fees. No person or entity will have, as a result of the transactions
contemplated by this Agreement, any valid right, interest or claim against or upon the Company or a Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the
Company, other than the Placement Agent with respect to the offer and sale of the Securities (which placement agent fees are being paid by the Company). The Purchasers shall have no obligation with respect to any fees or with respect to any claims
made by or on behalf of other Persons for fees of a type contemplated in this Section 4.34 that may be due in connection with the transactions contemplated by the Transaction Documents. The Company shall indemnify, pay, and hold each Purchaser
harmless against, any liability, loss or expense (including, without limitation, attorneys’ fees and out-of-pocket expenses) arising in connection with any such
right, interest or claim. 
 4.35        No Integrated Offering. Assuming the accuracy of
the Purchasers’ representations and warranties set forth in Section 3, and except with respect to the capital stock to be issued pursuant to the Merger Agreement, none of the Company, its subsidiaries nor, to the Company’s knowledge,
any of its Affiliates or any Person acting on its behalf has, directly or indirectly, at any time within the past six (6) months, made any offers or sales of any Company security or solicited any offers to buy any security under circumstances
that would (i) eliminate the availability of the exemption from registration under Regulation D under the 1933 Act in connection with the offer and sale by the Company of the Securities as contemplated hereby or (ii) cause the offering of
the Securities pursuant to the Transaction Documents to be integrated with prior offerings by the Company for purposes of any applicable law, regulation or stockholder approval provisions, including, without limitation, under the rules and
regulations of any National Exchange on which any of the securities of the Company are listed or designated. 

4.36        Shell Company Status. The Company is not, and has never been, an issuer identified
in Rule 144(i)(1). 
 4.37        No Additional Agreements. The Company does not have any
agreement or understanding with any Purchaser with respect to the transactions contemplated by the Transaction Documents other than as specified in the Transaction Documents. 

SECTION 5.        Covenants. 

5.01        Reasonable Best Efforts. Each party shall use its reasonable best efforts to
timely satisfy each of the conditions to be satisfied by it as provided in Section 6 of this Agreement. 

5.02        Disclosure of Transactions and Other Material Information. On or before 9:00 a.m.,
New York City time, on the Business Day immediately following the date hereof, the Company shall issue a press release and/or a Current Report on Form 8-K (the “Disclosure Document”)
disclosing all material terms of the transactions contemplated hereby and any other material, nonpublic information that the Company may have provided the Purchasers at any time prior to the issuance of the Disclosure Document. The Company shall
provide the Purchasers with a reasonable opportunity to review and provide comments on the draft of such Disclosure Document. Subject to the foregoing, and other than the S-4 Registration Statement, the SEC
Reports, and any other filings required under the 1934 Act, neither the Company nor any Purchaser shall issue any press releases or any other public statements with respect to the transactions contemplated hereby. Notwithstanding the foregoing, the
Company shall not publicly disclose the name of any Purchaser or any of its affiliates or advisers, or include the name of any Purchaser or any of its affiliates or advisers in any press release or, unless otherwise required by applicable law, any
filing with the Commission or any regulatory agency or the National Exchange, without the prior written consent of such Purchaser. 

  
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 5.03        Pledge of Securities. The
Company acknowledges and agrees that the Securities may be pledged by a Purchaser in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. The pledge of Securities shall not be deemed
to be a transfer, sale or assignment of the Securities hereunder, and no Purchaser effecting a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this
Agreement, including, without limitation, Section 7.01 of this Agreement; provided that a Purchaser and its pledgee shall be required to comply with the provisions of Section 7.01
of this Agreement in order to effect a sale, transfer or assignment of Securities to such pledgee. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge
of the Securities to such pledgee by a Purchaser; provided that any and all costs to effect the pledge of the Securities are borne by the pledgor and/or pledgee and not the Company. 

5.04        Expenses. The Company and each Purchaser is liable for, and will pay, its own
expenses incurred in connection with the negotiation, preparation, execution and delivery of this Agreement, including, without limitation, attorneys’ and consultants’ fees and expenses. 

5.05        Listing. The Company shall use its reasonable best efforts to take all steps
necessary to maintain the listing of its Common Stock on a National Exchange. 

5.06        Integration. The Company shall not, and shall use its commercially reasonable
efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the 1933 Act) that will be integrated with the offer or sale
of the Securities in a manner that would require the registration under the 1933 Act of the sale of the Securities to the Purchasers, or that will be integrated with the offer or sale of the Securities for purposes of the rules and regulations of
any National Exchange such that it would require stockholder approval prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent transaction; provided, however, that
this Section 5.06 shall not limit the Company’s right to issue shares of capital stock pursuant to the Merger Agreement. 

5.07        Subsequent Equity Sales. From the date hereof until 45 days after the Closing
Date, without the consent of the Placement Agent, the Company shall not (a) issue shares of Common Stock or Common Stock Equivalents, or (b) file with the Commission a registration statement under the 1933 Act relating to any shares of
Common Stock or Common Stock Equivalents. Notwithstanding the foregoing, the provisions of this Section 5.07 shall not apply to (i) the issuance of the Securities hereunder, (ii) the issuance of Common Stock pursuant to the Merger
Agreement, (iii) the transactions contemplated by the Registration Rights Agreement, (iv) the issuance of Common Stock upon the exercise of any options or warrants outstanding on the date hereof, (v) the issuance of Common Stock or
Common Stock Equivalents to employees, directors or consultants pursuant to any stock option or equity incentive or employee stock purchase plan in effect on the date hereof, (vi) the issuance of Common Stock in connection with acquisitions or
strategic transactions, provided that any such issuance shall only be to a Person which is, itself or through its subsidiaries, an operating company in a business synergistic with the business of the Company, but shall not include a transaction in
which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities and (vii) the filing of a registration statement on Form
S-8; provided that the aggregate number of shares of Common Stock issued in accordance with clause (vi) of this Section 5.07 do not exceed 5% of the number of shares of Common Stock
outstanding immediately after the issuance and sale of the Securities. 

SECTION 6.        Conditions of Closing. 

6.01         Conditions of the Purchasers’ Obligations at the Closing. The obligations of
each Purchaser under Section 2 hereof are subject to the fulfillment, at or prior to the Closing, of all of the following conditions. 

(a)        Representations and Warranties. The representations and warranties of the Company
contained in this Agreement shall be true and correct on and as of the Closing Date with the same effect as though such representations and warranties had been made on and as of the Closing Date (except to the extent expressly made as of an earlier
date in which case as of such earlier date). 

  
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 (b)        Performance. The Company shall
have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or prior to the Closing Date. 

(c)        Opinion of Company Counsel. The Company shall have delivered to the Purchasers and
the Placement Agent the opinion of Goodwin Procter LLP, dated as of the Closing Date in form and substance reasonably satisfactory to the Purchasers and the Placement Agent. 

(d)        Compliance Certificate. The Chief Executive Officer of the Company shall have
delivered to the Purchasers at the Closing Date a certificate certifying that the conditions specified in Sections 6.01(a) and 6.01(b) of this Agreement have been fulfilled. 

(e)        Secretary’s Certificate. The Secretary of the Company shall have delivered to
the Purchasers at the Closing Date a certificate certifying (i) the Certificate of Incorporation, as amended, of the Company; (ii) the Bylaws of the Company; and (iii) resolutions of the Company’s Board of Directors (or an
authorized committee thereof) approving this Agreement and the transactions contemplated by this Agreement. 

(f)        Listing Requirements. The Company’s Common Stock shall be listed on a National
Exchange and shall not have been suspended, as of the Closing Date, by the Commission or the National Exchange from trading thereon nor shall suspension by the Commission or the National Exchange have been threatened, as of the Closing Date, either
(i) in writing by the Commission or the National Exchange or (ii) by falling below the minimum listing maintenance requirements of the National Exchange; and the Company shall have filed with Nasdaq a Notification Form: Listing of
Additional Shares for the listing of the Securities and shall have received confirmation from Nasdaq that it has completed its review of such form with no objections to the transactions contemplated herein. 

(g)        Qualification under State Securities Laws. All registrations, qualifications,
permits and approvals, if any, required under applicable state securities laws shall have been obtained for the lawful execution, delivery and performance of this Agreement. 

(h)        Closing of Merger. The Merger shall have become effective, and
the Company shall not have amended the Merger Agreement in a manner that resulted in a Material Adverse Effect that is continuing. 

(i)        Registration Rights Agreement. The Company shall have delivered the Registration
Rights Agreement in the form attached hereto as Exhibit A (the “Registration Rights Agreement”), executed by the parties thereto, to the Purchasers. 

(j)        No Injunction. No statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by any Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents. 

6.02        Conditions of the Company’s Obligations. The obligations of the Company under
Section 2 hereof are subject to the fulfillment, at or prior to the Closing, of all of the following conditions, any of which may be waived in whole or in part by the Company in its absolute discretion. 

(a)        Representations and Warranties. The representations and warranties of the
Purchasers contained in this Agreement shall be true and correct on and as of the Closing Date with the same effect as though such representations and warranties had been made on and as of the Closing Date (except to the extent expressly made as of
an earlier date in which case as of such earlier date). 
 (b)        Performance. Each
Purchaser shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or prior to the Closing Date. 

  
 13 

 (c)        Qualification under State Securities
Laws. All registrations, qualifications, permits and approvals, if any, required under applicable state securities laws shall have been obtained for the lawful execution, delivery and performance of this Agreement. 

(d)        Closing of Merger. The Merger shall have become effective. 

SECTION 7.        Transfer Restrictions; Restrictive Legend. 

7.01        Transfer Restrictions. The Purchasers understand that the Company may, as a
condition to the transfer of any of the Securities, require that the request for transfer be accompanied by a certificate and/or an opinion of counsel reasonably satisfactory to the Company, to the effect that the proposed transfer does not result
in a violation of the 1933 Act, unless such transfer is covered by an effective registration statement or is exempt from the registration requirements of the 1933 Act, including under by Rule 144. It is understood that the certificates
evidencing the Securities may bear substantially the following legend: 
 “THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR APPLICABLE STATE
SECURITIES LAWS OR A CERTIFICATE AND/OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.” 

SECTION 8.        [Reserved]. 

SECTION 9.        Definitions. Unless the context otherwise requires, the terms
defined in this Section 9 shall have the meanings specified for all purposes of this Agreement. All accounting terms used in this Agreement, whether or not defined in this Section 9, shall be
construed in accordance with GAAP and such accounting terms shall be determined on a consolidated basis for the Company and each of its subsidiaries. 

“1933 Act” means the Securities Act of 1933, as amended. 

“1934 Act” means the Securities Exchange Act of 1934, as amended. 

“Affiliate” shall have the meaning ascribed to such term in Rule 12b-2 of
the General Rules and Regulations under the 1934 Act. 
 “Business Day” means any day other than Saturday,
Sunday or other day on which commercial banks in the City of New York are authorized or required by law to remain closed. 

“Common Stock Equivalents” means any securities of the Company which would entitle the holder thereof to acquire at
any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock. 
 “Environmental Law” means any federal, state, local or foreign law relating to pollution or protection of
human health or the environment (including ambient air, surface water, ground water, land surface or subsurface strata), including any law or regulation relating to emissions, discharges, releases or threatened releases of Hazardous Materials, or
otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials. 

“Governmental Authorization” means any: (a) permit, license, certificate, certification, franchise, permission,
approval, exemption, variance, exception, order, clearance, registration, qualification or authorization issued, granted, given or otherwise made available by or under the authority of any Governmental Entity or pursuant to any law; or
(b) right under any contract with any Governmental Entity. 

  
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 “Hazardous Materials” means any pollutant, chemical, substance and
any toxic, infectious, carcinogenic, reactive, corrosive, ignitable or flammable chemical, or chemical compound, or hazardous substance, material or waste, whether solid, liquid or gas, that is subject to regulation, control or remediation under any
Environmental Law, including without limitation, crude oil or any fraction thereof, and petroleum products or by-products. 

“Nasdaq” means The Nasdaq Stock Market. 

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint
venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

“Purchase Price” means $1.15 per share, subject to proportional adjustment for the Reverse Stock Split. 

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the 1933
Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 

“SEC Reports” means all registration statements, proxy statements, reports, schedules, forms and other documents filed
by the Company with the Commission since January 1, 2018, together with any exhibits and schedules thereto and other information incorporated therein, and as they have been supplemented, modified or amended since the time of filing. 

“Transaction Documents” means this Agreement, the Registration Rights Agreement and any other documents or agreements
explicitly contemplated hereunder. 
 SECTION 10.        Miscellaneous. 

10.01        Waivers and Amendments. Neither this Agreement, nor any provision hereof,
may be changed, waived, amended or modified orally or by course of dealing, but only by an instrument in writing executed by the Company and each Purchaser. 

10.02        Notices. All notices, requests, consents, and other communications under this
Agreement shall be in writing and shall be deemed delivered: (a) when delivered, if delivered personally, (b) four Business Days after being sent by registered or certified mail, return receipt requested, postage prepaid, (c) one
Business Day after being sent via a reputable nationwide overnight courier service guaranteeing next Business Day delivery, or (d) when receipt is acknowledged, in the case of email, in each case to the intended recipient as set forth below,
with respect to the Company, and to the addresses set forth on the Schedule of Purchasers with respect to the Purchasers. 

    If to the Company (on or prior to the Closing Date): 

    Proteostasis Therapeutics, Inc. 

    80 Guest Street, Suite 500 

    Boston, Massachusetts 02135 

    Attention: Meenu Chhabra 

    Email: Meenu.Chhabra@proteostasis.com 

    with a copy (which shall not constitute notice) to: 

    Cooley LLP 

    500 Boylston Street 

    Boston, Massachusetts 02116

    Attention: Marc Recht 

    Email: mrecht@cooley.com 

    If to the Company (following the Closing Date): 

  
 15 

     Yumanity Therapeutics, Inc. 

    40 Guest Street, Suite 4410 

    Boston, Massachusetts 02135 

    Attention: Paulash Mohsen 

    Email: pmohsen@yumanity.com 

    with a copy (which shall not constitute notice) to: 

    Goodwin Procter LLP 

    100 Northern Avenue 

    Boston, Massachusetts 02210 

    Attention: Stuart Cable 

    Email: scable@goodwinlaw.com 

or at such other address as the Company or each Purchaser may specify by written notice to the other parties hereto in accordance with this
Section 10.02. 
 10.03        Cumulative Remedies. None of the
rights, powers or remedies conferred upon the Purchasers on the one hand or the Company on the other hand shall be mutually exclusive, and each such right, power or remedy shall be cumulative and in addition to every other right, power or remedy,
whether conferred by this Agreement or now or hereafter available at law, in equity, by statute or otherwise. 

10.04        Successors and Assigns. All the terms and provisions of this Agreement shall be
binding upon and inure to the benefit of and be enforceable by the respective parties hereto, the successors and permitted assigns of each Purchaser and the successors of the Company, whether so expressed or not. None of the parties hereto may
assign its rights or obligations hereof without the prior written consent of the Company, except that a Purchaser may, without the prior consent of the Company, assign its rights to purchase the Securities hereunder to any of its affiliates or to
any other investment funds or accounts managed or advised by the investment manager who acts on behalf of Purchaser (provided each such assignee agrees to be bound by the terms of this Agreement and makes the same representations and warranties set
forth in Section 3 hereof). This Agreement shall not inure to the benefit of or be enforceable by any other person. 

10.05        Headings. The headings of the Sections and paragraphs of this Agreement have been
inserted for convenience of reference only and do not constitute a part of this Agreement. 

10.06        Governing Law; Jurisdiction. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York without regard to its conflict of law principles. Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or
the transactions contemplated hereby may be brought in any federal or state court located in the City of New York and State of New York, and each of the parties hereby consents to the jurisdiction of such courts (and of the appropriate appellate
courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such
court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or
without the jurisdiction of any such court. 
 10.07        Survival. The representations
and warranties of the Company and the Purchasers contained in Sections 3 and 4, and the agreements and covenants set forth in Sections 5 and 10 shall survive the Closing in accordance with their respective terms. Each
Purchaser shall be responsible only for its own representations, warranties, agreements and covenants hereunder. 

10.08        Counterparts; Effectiveness. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, with the same effect as if all parties had signed the same document. All such counterparts (including counterparts delivered by facsimile or other electronic format) shall be
deemed an original, shall be construed together and shall constitute one and the same instrument. This Agreement shall become effective when each party hereto shall have received counterparts hereof signed by all of the other parties hereto. 

  
 16 

 10.09        Entire Agreement. This
Agreement contains the entire agreement among the parties hereto with respect to the subject matter hereof and, except as set forth below, this agreement supersedes and replaces all other prior agreements, written or oral, among the parties hereto
with respect to the subject matter hereof. Notwithstanding the foregoing or anything to the contrary in this Agreement, this Agreement shall not supersede any confidentiality or other non-disclosure agreements
that may be in place between the Company and any Purchaser. 
 10.10        Severability. If
any provision of this Agreement shall be found by any court of competent jurisdiction to be invalid or unenforceable, the parties hereby waive such provision to the extent that it is found to be invalid or unenforceable. Such provision shall, to the
maximum extent allowable by law, be modified by such court so that it becomes enforceable, and, as modified, shall be enforced as any other provision hereof, all the other provisions hereof continuing in full force and effect. 

10.11        Independent Nature of Purchasers’ Obligations and Rights. The obligations of
each Purchaser under this Agreement are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under this Agreement. Nothing
contained herein, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as, and the Company acknowledges that the Purchasers do not so constitute, a partnership, an association, a joint venture
or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group, and the Company will not assert any such claim with respect to such obligations or the transactions contemplated by this
Agreement and the Company acknowledges that the Purchasers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement. The Company acknowledges and each Purchaser confirms that it has
independently participated in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation,
the rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. For reasons of administrative convenience only, Purchasers and their respective
counsels have chosen to communicate with the Company through Wilmer Cutler Pickering Hale and Dorr LLP, counsel to the Placement Agent. Each Purchaser acknowledges that Wilmer Cutler Pickering Hale and Dorr LLP has rendered legal advice to the
Placement Agent and not to such Purchaser in connection with the transactions contemplated hereby, and that each such Purchaser has relied for such matters on the advice of its own respective counsel. The Company has elected to provide all
Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any Purchaser. 

10.12        Termination. This Agreement shall terminate and be void and of no further force
and effect, and all obligations of the parties hereunder shall terminate without any further liability on the part of any party in respect thereof, upon the earlier to occur of (a) such date and time that the Merger Agreement is terminated in
accordance with its terms, (b) upon the mutual written agreement of the Company and the Purchaser, (c) if, on the Closing Date, any of the conditions of Closing set forth in Section 6 have not been satisfied as of the time required
hereunder to be so satisfied or waived by the party entitled to grant such waiver and, as a result thereof, the transactions contemplated by this Agreement are not consummated, or (d) if the Closing has not occurred on or before the thirtieth
day following the date of this Agreement, other than as a result of a Willful Breach of a Purchaser’s obligations hereunder; provided, however, that nothing herein shall not relieve any party to this Agreement of any liability for common
law fraud or for any Willful Breach of any representation, warranty, covenant, obligation or other provision contained in this Agreement. “Willful Breach” means a deliberate act or deliberate failure to act, taken with the
actual knowledge that such act or failure to act would result in or constitute a material breach of this Agreement. 

10.13        No Third-Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except the Placement Agent is an intended third-party beneficiary of Section 3,
Section 4 and Section 5 hereof. 

  
 17 

 10.14        Exculpation of the Placement
Agent. Each party acknowledges that it has read the notice attached hereto as Exhibit B and hereto agrees for the express benefit of the Placement Agent, its affiliates and its representatives that: 

(a)        Neither the Placement Agent nor any of its affiliates or any of its representatives
(1) has any duties or obligations other than those specifically set forth herein or in the engagement letter, dated as of September 29, 2020, between Yumanity Therapeutics, Inc. and Jefferies LLC (the “Engagement
Letter”); (2) shall be liable for any improper payment made in accordance with the information provided by the Company; (3) makes any representation or warranty, or has any responsibilities as to the validity, accuracy, value or
genuineness of any information, certificates or documentation delivered by or on behalf of the Company pursuant to this Agreement or the Transaction Documents or in connection with any of the transactions contemplated hereby and thereby; or
(4) shall be liable (x) for any action taken, suffered or omitted by any of them in good faith and reasonably believed to be authorized or within the discretion or rights or powers conferred upon it by this Agreement or any Transaction
Document or (y) for anything which any of them may do or refrain from doing in connection with this Agreement or any Transaction Document, except for such party’s own gross negligence or willful misconduct. 

(b)        The Placement Agent, its affiliates and its representatives shall be entitled to
(1) rely on, and shall be protected in acting upon, any certificate, instrument, opinion, notice, letter or any other document or security delivered to any of them by or on behalf of the Company, including the representations made by the
Company and the Purchasers herein, and (2) be indemnified by the Company for acting as the Placement Agent hereunder pursuant to the indemnification provisions set forth in the Engagement Letter. 

[Signature page follows] 

  
 18 

 IN WITNESS WHEREOF, the parties hereto have caused this Subscription Agreement to be duly
executed as of the Effective Date. 
  

			
	PROTEOSTASIS THERAPEUTICS, INC.
		
	By:	 	/s/ Meenu Chhabra
	Name:	 	Meenu Chhabra
	 Title:
	 	Chief Executive Officer

 [Signature Page to Subscription Agreement] 

 Schedule I 

SCHEDULE OF PURCHASERS 
  

			
	Name and Address of Purchaser	  	 Subscription Amount

 Exhibit A 

REGISTRATION RIGHTS AGREEMENT 

 Exhibit B 

Jefferies Required Disclosure 
 On
February 2, 2016, pursuant to an offer of settlement by Jefferies LLC, the Commission entered an administrative order, pursuant to its Municipalities Continuing Disclosure Cooperation (“MCDC”) initiative, finding that Jefferies LLC,
in connection with its underwriting of certain municipal securities offerings, willfully violated Section 17(a)(2) of the Securities Act of 1933. The administrative order requires Jefferies LLC to cease and desist from committing or causing any
violations or any future violations of Section 17(a)(2), to pay a civil penalty, and to complete certain undertakings. Jefferies LLC received waivers from the SEC of any disqualifications under Regulations A (Rule 262), D (Rule 505 and 506),
and E arising from the settlement, effective as of February 2, 2016. The Commission Order is available at https://www.sec.gov/rules/other/2016/33-10030.pdf.

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