Document:

Exhibit 10.1

 

SUBSCRIPTION AGREEMENT

 

This SUBSCRIPTION AGREEMENT
(this “Subscription Agreement”) is entered into this day of November, 2022, by and between Lakeshore Acquisition I
Corp., a Cayman Islands exempted company (the “Company”), ProSomnus Holdings, Inc., a Delaware corporation (“ProSomnus”),
and the undersigned (“Subscriber” or “you”). Defined terms used but not otherwise defined herein
shall have the respective meanings ascribed thereto in the Transaction Agreement (as defined below).

 

WHEREAS, the Company, ProSomnus,
and the other parties named therein entered into an agreement and plan of merger (as it may be amended, the “Transaction Agreement”),
pursuant to which, among other things, a wholly-owned subsidiary of the Company will merge with and into ProSomnus, and ProSomnus will
continue as the surviving corporation and as a wholly-owned subsidiary of the Company (the “Transaction”);

 

WHEREAS, in connection with
and contingent on the closing of the Transaction (the “Transaction Closing”), as contemplated in Section 5.20 of the
Transaction Agreement, and pursuant to the terms and conditions hereof, Subscriber desires to subscribe for and purchase from the Company
that number of the Company’s ordinary shares, par value $0.0001 per share (the “Common Stock”), set forth on
the signature page hereto for a purchase price of $10.00 per share (the “Per Share Price”), or the aggregate purchase
price set forth on the signature page hereto (the “Purchase Price”), and the Company desires to issue and sell to Subscriber
at the Closing the Securities (as defined below) in consideration of the payment of the Purchase Price by or on behalf of Subscriber to
the Company on or prior to the Closing (as defined below);

 

WHEREAS, the initial shareholders
of the Company will cancel 410,025 founder shares that they received prior to the closing of the Company’s initial public offering
at the Transaction Closing; and

 

WHEREAS, in connection with
the Transaction, certain other institutional “accredited investors” (within the meaning of Rule 501(a) under the Securities
Act of 1933, as amended (the “Securities Act”)) or “qualified institutional buyers” (within the meaning
of Rule 144A under the Securities Act) (the “Other Subscribers”) are entering into separate subscription agreements
with the Company (“Other Subscription Agreements”) substantially similar to this Subscription Agreement, pursuant to
which such Other Subscribers, and Subscriber pursuant to this Subscription Agreement, have agreed, severally and not jointly, to purchase
on the closing date of the Transaction (the “Closing Date”) an aggregate of up to 1,000,000 shares of Common Stock
at the Per Share Price (the “Offering”).

 

NOW, THEREFORE, in consideration
of the foregoing and the mutual representations, warranties and covenants, and pursuant to the terms and subject to the conditions, herein
contained, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

 

1.                 
Subscription.

 

1.1              Subject
to the terms and conditions hereof, Subscriber hereby subscribes for and agrees to purchase from the Company at the Closing, and the
Company hereby agrees to issue and sell to Subscriber, at the Closing, upon the payment of the Purchase Price, that number of shares
of Common Stock set forth on the signature page hereto (the “Securities”) on the terms and conditions set forth
herein (such subscription and issuance, the “Subscription”). Prior to the Transaction closing, at the discretion
of the Subscriber, as requested by ProSomnus, the Subscriber may advance to ProSomnus all or any portion of the Subscription amount
for the Securities (without interest) (such amounts, the “Forwarded Payment”) and will receive the Securities at
the Closing. In the event that the Transaction does not close, the Subscriber shall receive from ProSomnus one share of Series B
Preferred Stock, par value $0.0001 per share, of ProSomnus (the “ProSomnus Securities”) for every $1.80 of
Forwarded Payment pursuant to the immediately preceding sentence.

 

     

     

    

 

1.2             
At the Closing, the Equity Investors (as defined in the Transaction Agreement, and which includes the Subscriber), will
receive an additional 8.2005 shares of Common Stock from the Company for every $100.00 invested pursuant to this Agreement.

 

2.                 
Representations, Warranties and Agreements.

 

2.1             
Subscriber’s Representations, Warranties and Agreements. To induce the Company to issue the Securities to Subscriber,
Subscriber hereby represents and warrants to the Company and ProSomnus and agrees with the Company and ProSomnus as follows:

 

2.1.1       
Subscriber has been duly formed or incorporated and is validly existing and in good standing under the laws of its jurisdiction
of incorporation or formation, with power and authority to enter into, deliver and perform its obligations under this Subscription Agreement.
If Subscriber is an individual, Subscriber has the authority to enter into, deliver and perform Subscriber’s obligations under this
Subscription Agreement.

 

2.1.2       
This Subscription Agreement has been duly authorized, executed and delivered by Subscriber. If Subscriber is an individual,
the signature on this Subscription Agreement is genuine, and Subscriber has legal competence and capacity to execute the same. This Subscription
Agreement constitutes a valid and binding obligation of Subscriber, enforceable against Subscriber in accordance with its terms, except
as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other
laws relating to or affecting the rights of creditors generally, and (ii) principles of equity, whether considered at law or equity.

 

2.1.3        Assuming
the accuracy of the Company’s representations and warranties as set forth in Section 2.2 hereof, the execution, delivery and
performance by Subscriber of this Subscription Agreement and the consummation of the transactions contemplated herein do not and
will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default
under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of Subscriber
or any of its subsidiaries pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, lease, license or other
agreement or instrument to which Subscriber is a party or by which Subscriber is bound or to which any of the property or assets of
Subscriber is subject, which would reasonably be expected to have a material adverse effect on the business, properties, financial
condition, stockholders’ equity or results of operations of Subscriber and its subsidiaries, taken as a whole, or materially
and adversely affect the legal authority or ability of Subscriber to comply in all material respects with the terms of this
Subscription Agreement (a “Subscriber Material Adverse Effect”); (ii) if Subscriber is not an individual,
result in any violation of the provisions of the organizational documents of Subscriber or any of its subsidiaries in any material
respect; or (iii) result in any violation of any statute or any judgment, order, rule or regulation of any court or government
or governmental, tribunal, judicial, administrative federal, state, local, or foreign or any agency, bureau, board, commission
instrumentality or authority thereof, including any state’s attorney general or any court or arbitrator (public or private)
(“Authority”), having jurisdiction over Subscriber or any of its subsidiaries or any of their respective
properties that would reasonably be expected to have a Subscriber Material Adverse Effect.

 

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2.1.4       
The Subscriber (i) is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) or
an “accredited investor” (within the meaning of Rule 501(a) under the Securities Act), in each case, satisfying the applicable
requirements set forth on Schedule A, (ii) is acquiring all of the Securities only for his, her or its own account and not for
the account of others, or if the Subscriber, or the investment advisor to which Subscriber has delegated decision making authority over
its investments, is subscribing for the Securities as a fiduciary or agent for one or more investment accounts, the Subscriber has full
investment discretion with respect to each such account, and the full power and authority to make the acknowledgements, representations
and agreements herein on behalf of each owner of each such account, and (iii) is acquiring the Securities for investment purposes only
and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act or the laws
of any jurisdiction (and shall provide the requested information set forth on Schedule A). If the Subscriber is an entity, the
Subscriber is not an entity formed for the specific purpose of acquiring the Securities.

 

2.1.5       
Subscriber understands and agrees that the Securities are being offered in a transaction not involving any public offering
within the meaning of the Securities Act and that the Securities have not been registered under the Securities Act. Subscriber understands
and agrees that the Securities may not be resold, transferred, pledged or otherwise disposed of by Subscriber absent an effective registration
statement under the Securities Act with respect to the Securities except (i) to the Company or a subsidiary thereof, or (ii) pursuant
to another applicable exemption from the registration requirements of the Securities Act that is available and that any book entries representing
the Securities shall contain a restrictive legend to such effect. Subscriber understands and agrees that the Securities will not be eligible
for resale pursuant to Rule 144A promulgated under the Securities Act. Subscriber understands and agrees that the Securities will be subject
to the foregoing transfer restrictions and, as a result of these transfer restrictions, Subscriber may not be able to readily resell the
Securities and may be required to bear the financial risk of an investment in the Securities for an indefinite period of time. Subscriber
understands that it has been advised to consult legal, tax and accounting counsel prior to making any offer, resale, transfer, pledge
or other disposition of any of the Securities.

 

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2.1.6       
 Subscriber understands and agrees that Subscriber is purchasing the Securities directly from the Company. Subscriber further
acknowledges that there have been no representations, warranties, covenants and agreements made to Subscriber by the Company or any of
its officers or directors, expressly or by implication, other than those representations, warranties, covenants and agreements included
in this Subscription Agreement, and Subscriber is not relying on any representations, warranties or covenants other than those expressly
set forth in this Subscription Agreement.

 

2.1.7       
Subscriber represents and warrants that (i) it is not a Benefit Plan Subscriber as contemplated by the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), or (ii) its acquisition and holding of the Securities will not constitute
or result in a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Internal Revenue Code of 1986,
as amended, or any applicable similar law.

 

2.1.8       
In making its decision to purchase the Securities, Subscriber represents that it has relied solely upon independent investigation
made by Subscriber and the representations, warranties, and covenants of the Company contained in this Subscription Agreement. Subscriber
acknowledges and agrees that Subscriber has received and has had an adequate opportunity to review, such financial and other information
as Subscriber deems necessary in order to make an investment decision with respect to the Securities and made its own assessment and is
satisfied concerning the relevant tax and other economic considerations relevant to Subscriber’s investment in the Securities. Without
limiting the generality of the foregoing, Subscriber acknowledges that it has had the opportunity to review the documents provided to
Subscriber by the Company, including (collectively, the “Disclosure Documents”): (i) the final prospectus of the Company,
dated as of June 10, 2021 and filed with the Securities and Exchange Commission (the “Commission”) (File Nos. 333-255174)
(the “Prospectus”), (ii) each SEC Document (as defined below) through the date of this Subscription Agreement, (iii)
the Transaction Agreement, a copy of which will be filed by the Company with the Commission and (iv) the investor presentation by the
Company and ProSomnus (the “Investor Presentation”), a copy of which was furnished by the Company to the Commission.
Subscriber represents and agrees that Subscriber and its professional advisor(s), if any, have had the full opportunity to ask the Company’s
management questions, receive such answers and obtain such information as Subscriber and its professional advisor(s), if any, have deemed
necessary to make an investment decision with respect to the Securities. The Subscriber further acknowledges that the information contained
in the Disclosure Documents is subject to change, and that any changes to the information contained in the Disclosure Documents, including
any changes based on updated information or changes in terms of the Transaction, shall in no way affect Subscriber’s obligation
to purchase the Securities hereunder, except as otherwise provided herein, and that, in purchasing the Securities, Subscriber is not relying
upon any projections contained in the Investor Presentation.

 

2.1.9        Subscriber
became aware of this offering of the Securities solely (a) by means of direct contact from the Company, ProSomnus, or a
representative of the Company or ProSomnus, or (b) directly from the Company as a result of a pre-existing, substantial relationship
with the Company, and the Securities were offered to Subscriber solely by direct contact between Subscriber and either the Company
or ProSomnus. Subscriber did not become aware of this offering of the Securities, nor were the Securities offered to Subscriber, by
any other means. Subscriber acknowledges that the Company represents and warrants that the Securities (i) were not offered by
any form of general solicitation or general advertising and (ii) are not being offered in a manner involving a public offering
under, or in a distribution in violation of, the Securities Act, or any state securities laws.

 

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2.1.10   
Subscriber acknowledges that it is aware that there are substantial risks incident to the purchase and ownership of the
Securities. Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and
risks of an investment in the Securities, and Subscriber has sought such accounting, legal and tax advice as Subscriber has considered
necessary to make an informed investment decision. Subscriber understands and acknowledges that it (i) is a sophisticated investor, experienced
in investing in private equity transactions and capable of evaluating investment risks independently, both in general and with regard
to all transactions and investment strategies involving a security or securities and (ii) has exercised independent judgment in evaluating
its participation in the purchase of the Securities.

 

2.1.11   
Subscriber represents and acknowledges that Subscriber has such knowledge and experience in financial and business matters
as to be capable of evaluating the merits and risks of the investment in the Securities, has analyzed and fully considered the risks of
an investment in the Securities and determined that the Securities are a suitable investment for Subscriber and that Subscriber is able
at this time and in the foreseeable future to bear the economic risk of a total loss of Subscriber’s investment in the Company.
Subscriber further acknowledges specifically that a possibility of total loss of investment exists.

 

2.1.12   
Subscriber understands and agrees that no federal or state agency has passed upon or endorsed the merits of the offering
of the Securities or made any findings or determination as to the fairness of this investment.

 

2.1.13    Subscriber
represents and warrants that Subscriber is not (i) a person or entity named on the List of Specially Designated Nationals and
Blocked Persons, the Executive Order 13599 List, the Foreign Sanctions Evaders List, or the Sectoral Sanctions Identification List,
each of which is administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”)
or in any Executive Order issued by the President of the United States and administered by OFAC (“OFAC List”), or
a person or entity prohibited by any OFAC sanctions program, (ii) owned or controlled by, or acting on behalf of, a person, that is
named on an OFAC List; (iii) organized, incorporated, established, located, resident or born in, or a citizen, national, or the
government, including any political subdivision, agency, or instrumentality thereof, of any country or territory embargoed or
subject to substantial trade restrictions by the United States; (iv) a Designated National as defined in the Cuban Assets
Control Regulations, 31 C.F.R. Part 515, or (v) a non-U.S. shell bank or providing banking services indirectly to a non-U.S.
shell bank (collectively, a “Prohibited  Investor”). Subscriber agrees to provide law enforcement
agencies, if requested thereby, such records as required by applicable law, provided that Subscriber is permitted to do so under
applicable law. Subscriber represents that if it is a financial institution subject to the Bank Secrecy Act (31 U.S.C.
Section 5311 et seq.) (the “BSA”), as amended by the USA PATRIOT Act of 2001 (the “PATRIOT
Act”), and its implementing regulations (collectively, the “BSA/PATRIOT Act”), that Subscriber,
directly or indirectly through a third party administrator, maintains policies and procedures reasonably designed to comply with
applicable obligations under the BSA/PATRIOT Act. Subscriber also represents that, to the extent required, it, directly or
indirectly through a third party administrator, maintains policies and procedures reasonably designed for the screening of its
investors against the OFAC sanctions programs, including the OFAC List, and to otherwise ensure compliance with OFAC-administered
sanctions programs. Subscriber further represents and warrants that, to the extent required, it, directly or indirectly through a
third-party administrator, maintains policies and procedures reasonably designed to ensure that the funds held by Subscriber and
used to purchase the Securities were legally derived.

 

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2.1.14   
On the date the Purchase Price will be required to be funded pursuant to Section 3.1, Subscriber will have sufficient
immediately available funds to pay the Purchase Price pursuant to Section 3.1.

 

2.1.15   
Subscriber represents that no disqualifying event described in Rule 506(d)(1)(i)-(viii) under the Securities Act (a “Disqualification
Event”) is applicable to Subscriber or any of its Rule 506(d) Related Parties (as defined below), except, if applicable, for
a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable. Subscriber hereby agrees that it shall notify
the Company promptly in writing in the event a Disqualification Event becomes applicable to Subscriber or any of its Rule 506(d) Related
Parties, except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable. For purposes
of this Section 2.1.15, “Rule 506(d) Related Party” shall mean a person or entity that is a direct beneficial owner of Subscriber’s
securities for purposes of Rule 506(d) under the Securities Act.

 

2.1.16   
No broker, finder or other financial consultant has acted on behalf of Subscriber in connection with this Subscription Agreement
or the transactions contemplated hereby in such a way as to create any liability on the Company.

 

2.1.17   
Except as expressly disclosed in a Schedule 13D or Schedule 13G (or amendments thereto) filed by such Subscriber with the
Commission with respect to the beneficial ownership of the Company’s Common Stock prior to the date hereof, Subscriber is not currently
(and at all times through Closing will refrain from being or becoming) a member of a “group” (within the meaning of Section
13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any successor
provision) acting for the purpose of acquiring, holding or disposing of equity securities of the Company (within the meaning of Rule 13d-5(b)(1)
under the Exchange Act).

 

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2.1.18   
 No foreign person (as defined in 31 C.F.R. Part 800.224) in which the national or subnational governments of a single foreign
state have a substantial interest (as defined in 31 C.F.R. Part 800.244) will acquire a substantial interest in the Company as a result
of the purchase by such Subscriber and sale of the Securities hereunder such that a declaration to the Committee on Foreign Investment
in the United States would be mandatory under 31 C.F.R. Part 800.401, and no foreign person will have control (as defined in 31 C.F.R.
Part 800.208) over the Company from and after the Closing as a result of the purchase by such Subscriber and sale of the Securities hereunder.

 

2.2             
Company’s Representations, Warranties and Agreements. To induce Subscriber to purchase the Securities, the
Company hereby represents and warrants to Subscriber and agrees with Subscriber as follows:

 

2.2.1       
The Company is an exempted company duly organized, validly existing and in good standing under the Laws of the Cayman Islands,
with the requisite corporate power and authority to own, lease and operate its properties and conduct its business as presently conducted
and to enter into, deliver and perform its obligations under this Subscription Agreement.

 

2.2.2       
The Securities have been duly authorized and, when issued and delivered to Subscriber against full payment for the Securities
in accordance with the terms of this Subscription Agreement, and registered with the Company’s transfer agent, the Securities will
be validly issued, fully paid, non-assessable and free and clear of any liens or other restrictions whatsoever (other than those arising
under state or federal securities laws or as set forth herein), and will not be issued in violation of or subject to any preemptive or
similar rights created under the Company’s organizational documents or any agreement or other instrument to which the Company is
a party or by which it is otherwise bound.

 

2.2.3       
This Subscription Agreement has been duly authorized, executed and delivered by the Company and is a valid and binding obligation
of the Company, enforceable against it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally,
and (ii) principles of equity, whether considered at law or equity.

 

2.2.4        The
execution, delivery and performance of this Subscription Agreement (including compliance by the Company with all of the provisions
hereof), the issuance and sale of the Securities and the consummation of the certain other transactions contemplated herein will not
(i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result
in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of the Company pursuant to the
terms of any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which the
Company is a party or by which the Company is bound or to which any of the property or assets of the Company is subject, which
would, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, properties,
assets, liabilities, operations, financial condition, stockholders’ equity or results of operations of the Company or
materially and adversely affect the validity of the Securities or the legal authority or ability of the Company to comply in all
material respects with the terms of this Subscription Agreement (a “Material Adverse Effect”); (ii) result
in any violation of the provisions of the organizational documents of the Company in any material respect; or (iii) result in
any violation of any statute or any judgment, order, rule or regulation of any Authority having jurisdiction over the Company or any
of its properties that would reasonably be expected to have a Material Adverse Effect.

 

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2.2.5       
Neither the Company, nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any Company
security or solicited any offers to buy any security, under circumstances that would adversely affect reliance by the Company on Section 4(a)(2)
of the Securities Act for the exemption from registration for the transactions contemplated hereby or would require registration of the
issuance or sale of the Securities under the Securities Act.

 

2.2.6       
Neither the Company nor any person acting on its behalf has conducted any general solicitation or general advertising (as
those terms are used in Regulation D under the Securities Act) in connection with the offer or sale of any of the Securities and neither
the Company, nor any person acting on its behalf has offered any of the Securities in a manner involving any public offering under, or
in a distribution in violation of, the Securities Act or any state securities laws.

 

2.2.7       
The Company has not taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency,
reorganization, receivership, liquidation, administration or winding up or failed to pay its debts when due, nor does the Company have
any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or seek
to commence an administration.

 

2.2.8       
As of the date hereof, except as set forth in the SEC Documents (as defined below), the Other Subscription Agreements, the
Transaction Agreement and any promissory notes issued by the Company’s sponsor or its affiliate to the Company for working capital
purposes as described in the SEC Documents (“Sponsor Loans”), there are no outstanding options, warrants or other rights
to subscribe for, purchase or acquire from the Company any Purchaser Ordinary Shares or other equity interests in the Company, or securities
convertible into or exchangeable or exercisable for such equity interests. As of the date hereof, other than any subsidiary created for
purposes of the Transaction, the Company has no subsidiaries and does not own, directly or indirectly, interests or investments (whether
equity or debt) in any person, whether incorporated or unincorporated. There are no stockholder agreements, voting trusts or other agreements
or understandings to which the Company is a party or by which it is bound relating to the voting of any securities of the Company, other
than (A) as set forth in the Company’s filings with the Commission, together with any amendments, restatements or supplements thereto
(the “SEC Documents”) and (B) as contemplated by the Transaction Agreement. Except as disclosed in the SEC Documents,
the Company has no outstanding indebtedness and will not have any outstanding long-term indebtedness as of immediately prior to the Closing
(excluding any Sponsor Loans).

 

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2.2.9       
 Assuming the accuracy of Subscriber’s representations and warranties set forth in this Subscription Agreement, no
registration under the Securities Act is required for the offer and sale of the Common Stock by the Company to Subscriber and the Common
Stock is not being offered in a manner involving a public offering under, or in a distribution in violation of, the Securities Act or
any state securities laws.

 

2.2.10   
Except as disclosed in the SEC Documents, the Company has made all filings required to be filed by it with the Commission
and, as of their respective dates, each of the SEC Documents complied in all material respects with the requirements of the Securities
Act and the Exchange Act, and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Documents, when
filed, 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; provided, that
the Company makes no such representation or warranty with respect to any information relating to ProSomnus or any of its affiliates included
in any SEC Document or filed as an exhibit thereto. Except as to the accounting relating to the Warrants, each of the financial statements
of the Company included in the SEC Documents comply in all material respects with applicable accounting requirements and the rules and
regulations of the Commission with respect thereto as in effect at the time of filing and fairly present in all material respects the
financial position of the Company as of and for the dates thereof and the results of operations and cash flows for the periods then ended,
subject, in the case of unaudited statements, to normal, year-end audit adjustments. As of the date hereof, there are no outstanding or
unresolved comments in comment letters from the Staff of the Commission with respect to any of the SEC Documents.

 

2.2.11   
Other than the Other Subscription Agreements, the Transaction Agreement and any other agreement expressly contemplated by
the Transaction Agreement, the Company has not entered into any side letter or similar agreement with any Other Subscriber or any other
investor in connection with such Other Subscriber’s or investor’s investment in the Company. No Other Subscription Agreement
includes a price per Security different from this Subscription Agreement or other terms, rights or conditions that are more advantageous
(economically or otherwise) in any material respect to any such Other Subscriber than Subscriber hereunder, and such Other Subscription
Agreements have not been amended or modified in any material respect following the date of this Subscription Agreement in any manner that
materially benefits the Other Subscriber thereunder unless Subscriber has been granted the same benefits.

 

2.2.12   
The Company is not, and immediately after receipt of payment for the Securities will not be, an “investment company”
within the meaning of the Investment Company Act of 1940, as amended.

 

2.2.13   
As of the date of this Agreement the Company has not received any written communication from a governmental entity that
alleges that the Company is not in compliance with or is in default or violation of any applicable law, except where such non-compliance,
default or violation would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.

 

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2.2.14   
 Except for such matters as have not had and would not be reasonably expected to have, individually or in the aggregate,
a Material Adverse Effect, as of the date of this Subscription Agreement, there is no (i) action, claim, inquiry, arbitration, investigation,
litigation or other proceeding pending, or, to the knowledge of the Company, threatened against the Company or (ii) judgment, decree,
injunction, ruling or order of any governmental entity or arbitrator outstanding against the Company.

 

2.2.15   
Except for discussions specifically regarding the offer and sale of the Securities, the Company confirms that neither it
nor any other person acting on its behalf has provided Subscriber or its agents or counsel with any information that constitutes or could
reasonably be expected to constitute material, nonpublic information concerning the Company or any of its subsidiaries, other than with
respect to the Transaction and the transactions contemplated by this Subscription Agreement or the Other Subscription Agreements. Except
with respect to the Transaction and the transactions contemplated by this Subscription Agreement and the Other Subscription Agreements,
no event or circumstance has occurred which, under applicable law, rule or regulation, requires public disclosure at or before the date
hereof or announcement by the Company but which has not been so publicly disclosed.

 

2.3             
ProSomnus’s Representations, Warranties and Agreements. To induce Subscriber to purchase the Securities, ProSomnus
hereby represents and warrants to Subscriber and agrees with Subscriber as follows:

 

2.3.1       
ProSomnus has been duly incorporated and is validly existing as a corporation in good standing under the Delaware General
Corporation Law, with the requisite corporate power and authority to own, lease and operate its properties and conduct its business as
presently conducted and to enter into, deliver and perform its obligations under this Subscription Agreement.

 

2.3.2       
This Subscription Agreement has been duly authorized, executed and delivered by ProSomnus and is a valid and binding obligation
of ProSomnus, enforceable against it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally,
and (ii) principles of equity, whether considered at law or equity.

 

2.3.3        The
execution, delivery and performance of this Subscription Agreement (including compliance by ProSomnus with all of the provisions
hereof), the issuance and sale of the Securities and the consummation of the certain other transactions contemplated herein will not
(i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result
in the creation or imposition of any lien, charge or encumbrance upon any of the property or assets of ProSomnus pursuant to the
terms of any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which ProSomnus
is a party or by which ProSomnus is bound or to which any of the property or assets of ProSomnus is subject, which would,
individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, properties, assets,
liabilities, operations, financial condition, stockholders’ equity or results of operations of ProSomnus or materially and
adversely affect the validity of the Securities or the legal authority or ability of ProSomnus to comply in all material respects
with the terms of this Subscription Agreement (a “Material Adverse Effect”); (ii) result in any violation of
the provisions of the organizational documents of ProSomnus in any material respect; or (iii) result in any violation of any
statute or any judgment, order, rule or regulation of any Authority having jurisdiction over ProSomnus or any of its properties that
would reasonably be expected to have a Material Adverse Effect.

 

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2.3.4       
Neither ProSomnus, nor any person acting on its behalf has, directly or indirectly, made any offers or sales of any Company
security or solicited any offers to buy any security, under circumstances that would adversely affect reliance by ProSomnus on Section 4(a)(2)
of the Securities Act for the exemption from registration for the transactions contemplated hereby or would require registration of the
issuance or sale of the Securities under the Securities Act.

 

2.3.5       
Neither ProSomnus nor any person acting on its behalf has conducted any general solicitation or general advertising (as
those terms are used in Regulation D under the Securities Act) in connection with the offer or sale of any of the Securities and neither
ProSomnus, nor any person acting on its behalf has offered any of the Securities in a manner involving any public offering under, or in
a distribution in violation of, the Securities Act or any state securities laws.

 

2.3.6       
ProSomnus has not taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency,
reorganization, receivership, liquidation, administration or winding up or failed to pay its debts when due, nor does ProSomnus have any
knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or seek to
commence an administration.

 

2.3.7       
Assuming the accuracy of Subscriber’s representations and warranties set forth in this Subscription Agreement, no
registration under the Securities Act is required for the offer and sale of common stock by ProSomnus to Subscriber and the ProSomnus
common stock is not being offered in a manner involving a public offering under, or in a distribution in violation of, the Securities
Act or any state securities laws.

 

2.3.8       
Other than the Other Subscription Agreements, the Transaction Agreement and any other agreement expressly contemplated by
the Transaction Agreement, ProSomnus has not entered into any side letter or similar agreement with any Other Subscriber or any other
investor in connection with such Other Subscriber’s or investor’s investment in ProSomnus. No Other Subscription Agreement
includes a price per Security different from this Subscription Agreement or other terms, rights or conditions that are more advantageous
(economically or otherwise) in any material respect to any such Other Subscriber than Subscriber hereunder, and such Other Subscription
Agreements have not been amended or modified in any material respect following the date of this Subscription Agreement in any manner that
materially benefits the Other Subscriber thereunder unless Subscriber has been granted the same benefits.

 

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2.3.9       
 ProSomnus is not, and immediately after receipt of payment for the Securities will not be, an “investment company”
within the meaning of the Investment Company Act of 1940, as amended.

 

2.3.10   
As of the date of this Agreement ProSomnus has not received any written communication from a governmental entity that alleges
that ProSomnus is not in compliance with or is in default or violation of any applicable law, except where such non-compliance, default
or violation would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.

 

2.3.11   
Except for such matters as have not had and would not be reasonably expected to have, individually or in the aggregate,
a Material Adverse Effect, as of the date of this Subscription Agreement, there is no (i) action, claim, inquiry, arbitration, investigation,
litigation or other proceeding pending, or, to the knowledge of ProSomnus, threatened against ProSomnus or (ii) judgment, decree, injunction,
ruling or order of any governmental entity or arbitrator outstanding against ProSomnus.

 

2.3.12   
Except for discussions specifically regarding the offer and sale of the Securities, ProSomnus confirms that neither it nor
any other person acting on its behalf has provided Subscriber or its agents or counsel with any information that constitutes or could
reasonably be expected to constitute material, nonpublic information concerning ProSomnus or any of its subsidiaries, other than with
respect to the Transaction and the transactions contemplated by this Subscription Agreement or the Other Subscription Agreements. Except
with respect to the Transaction and the transactions contemplated by this Subscription Agreement and the Other Subscription Agreements,
no event or circumstance has occurred which, under applicable law, rule or regulation, requires public disclosure at or before the date
hereof or announcement by ProSomnus but which has not been so publicly disclosed.

 

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3.                 
Settlement Date and Delivery.

 

3.1              Closing.
The closing of the Subscription contemplated hereby (the “Closing”) is contingent upon the substantially
concurrent consummation of the Transaction, as provided for by the Transaction Agreement. The Closing shall occur on the closing
date of, and immediately prior to, or simultaneously with, the consummation of the Transaction. Upon written notice from (or on
behalf of) the Company to Subscriber (the “Closing Notice”) that the Company reasonably expects all conditions to
the Transaction Closing to be satisfied on a date that is not less than five (5) business days from the date of the Closing
Notice, Subscriber shall deliver to the Company, at least two (2) business day prior to the scheduled closing date specified in
the Closing Notice (the “Scheduled Closing Date”), to be held in escrow until the Closing, the Purchase Price for
the Securities less the Forwarded Payment, if any, by wire transfer of United States dollars in immediately available funds to the
account specified by the Company in the Closing Notice, which at the Closing will be released to the Company against delivery by the
Company promptly after the Closing to Subscriber of the Securities in book-entry form (or in certificated form if indicated by
Subscriber on Subscriber’s signature page hereto), free and clear of any liens or other restrictions (other than those arising
under this Subscription Agreement or applicable securities laws). Not later than one (1) business day after the Closing, the Company
shall deliver to Subscriber the Securities in book entry form, in the name of Subscriber (or its nominee in accordance with its
delivery instructions) or to a custodian designated by Subscriber, as applicable. In the event the Closing does not occur within
three (3) business days of the Scheduled Closing Date, the Company shall promptly (but not later than two (2) business days
thereafter) return the Purchase Price less any Forwarded Payment to Subscriber by wire transfer of U.S. dollars in immediately
available funds to the account specified by the Subscriber, and any book-entries for the Securities shall be deemed repurchased and
cancelled. Unless this Subscription Agreement is terminated pursuant to Section 5 below, the failure of the Closing to occur on the
Scheduled Closing Date shall not terminate this Subscription Agreement or otherwise relieve any party of any of its obligations
hereunder. For purposes of this Subscription Agreement, “business day” means any day that, in New York, New York, is
neither a legal holiday nor a day on which commercial banking institutions are generally authorized or required by law or regulation
to close (excluding as a result of “stay at home”, “shelter-in-place”, “non-essential employee”
or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental
authority so long as the electronic funds transfer systems, including for wire transfers, of commercial banking institutions in New
York, New York are generally open for use by customers on such day).

 

3.2             
Conditions to Closing.

 

3.2.1       
The Closing shall be subject to the satisfaction or valid waiver by the Company, on the one hand, or Subscriber, on the
other, of the conditions that, on the Closing Date:

 

(i)                
No suspension of the qualification of the Securities for offering or sale or trading of the Common Stock on the Nasdaq Capital
Market (“Nasdaq”) shall have occurred and be continuing.

 

(ii)             
No Authority shall have enacted, issued, promulgated, enforced or entered any law, rule, regulation, judgment, decree, executive
order or award (whether temporary preliminary or permanent) which is then in effect and has the effect of making the transactions contemplated
hereby illegal or otherwise prohibiting or enjoining the consummation of the transactions contemplated hereby.

 

(iii)           
All conditions precedent to the consummation of the Transaction set forth in the Transaction Agreement, as determined by
the parties to the Transaction Agreement, shall have been satisfied or waived by the party entitled to the benefit thereof (other than
those conditions that, by their nature, may only be satisfied at the consummation of the Transaction, but subject to satisfaction of such
conditions as of the consummation of the Transaction), and the Transaction Closing shall be substantially concurrent with the Closing.

 

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3.2.2       
The Closing shall also be subject to the satisfaction or valid waiver by the Subscriber of the conditions that, on the Closing
Date:

 

(i)                
 The Company shall have performed, satisfied and complied in all material respects with all agreements, conditions and covenants
required by this Subscription Agreement to be performed by the Company at or prior to the Closing.

 

(ii)             
The representations and warranties of the Company contained in this Subscription Agreement shall be true and correct in
all material respects (other than representations and warranties that are qualified as to materiality or Material Adverse Effect (as defined
herein), which representations and warranties shall be true in all respects) at and as of the Closing Date (except for representations
and warranties made as of a specific date, which shall be true and correct in all material respects (other than representations and warranties
that are qualified as to materiality or Material Adverse Effect, which representations and warranties shall be true in all respects) as
of such date), and consummation of the Closing, shall constitute a reaffirmation by the Company of each of the representations, warranties
and agreements of the Company contained in this Subscription Agreement as of the Closing Date.

 

(iii)           
No amendment, waiver or modification of the Transaction Agreement shall have occurred that would reasonably be expected
to materially and adversely affect the economic benefits that Subscriber would reasonably expect to receive under this Subscription Agreement,
unless Subscriber has previously consented in writing to such amendment, waiver or modification.

 

(iv)            
Company shall have filed with Nasdaq an application or supplemental listing application for the listing of the Securities
and Nasdaq shall have raised no objection with respect thereto, subject to official notice of issuance.

 

(v)              
There shall have been no amendment, waiver or modification to the Other Subscription Agreements that materially benefits
(economically or otherwise) the Other Subscribers thereunder unless this Subscription Agreement shall have been amended to reflect the
same terms.

 

(vi)            
From and after the date hereof, there shall have not occurred a Material Adverse Effect which is continuing and uncured.

 

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3.2.3       
The Closing shall also be subject to the satisfaction or valid waiver by the Company of the conditions that, on the Closing
Date:

 

(i)                
Subscriber shall have performed, satisfied and complied in all material respects with all agreements, conditions and covenants
required by this Subscription Agreement to be performed by Subscriber at or prior to the Closing.

 

(ii)             
All representations and warranties of Subscriber contained in this Subscription Agreement shall be true and correct in
all material respects (other than representations and warranties that are qualified as to materiality or Subscriber Material Adverse
Effect, which representations and warranties shall be true in all respects) at and as of the Closing Date (except for representations
and warranties made as of a specific date, which shall be true and correct in all material respects (other than representations and warranties
that are qualified as to materiality or Subscriber Material Adverse Effect, which representations and warranties shall be true in all
respects) as of such date), and consummation of the Closing, shall constitute a reaffirmation by the Subscriber of each of the representations,
warranties and agreements of the Subscriber contained in this Subscription Agreement as of the Closing Date.

 

4.                 
Transfer Restrictions.

 

4.1             
After the Closing, the Securities and, if applicable, the ProSomnus Securities, may only be resold, transferred, pledged
or otherwise disposed of in compliance with state and federal securities laws and pursuant to an effective registration statement, Rule
144 under the Securities Act (“Rule 144”) or pursuant to another applicable exemption from the registration requirements
of the Securities Act, to the Company or to an affiliate of Subscriber. As a condition of transfer (other than pursuant to an effective
registration statement pursuant to Rule 144 or pursuant to another applicable exemption from the registration requirements of the Securities
Act), any such transferee shall agree in writing to be bound by the terms of this Subscription Agreement and shall have the rights and
obligations of Subscriber under this Agreement.

 

4.2             
The Company acknowledges that the Securities may be pledged by Subscriber in connection with a bona fide margin agreement,
provided that such pledge shall be pursuant to an available exemption from the registration requirements of the Securities Act or pursuant
to, and in accordance with, a registration statement that is effective under the Securities Act at the time of such pledge, and Subscriber
effecting a pledge of the Securities shall not be required to provide the Company with any notice thereof; provided, however, that neither
the Company nor its counsel shall be required to take any action (or refrain from taking any action) in connection with any such pledge,
other than providing any such lender of such margin agreement with an acknowledgment that the Securities are not subject to any contractual
lock up or prohibition on pledging, the form of such acknowledgment to be subject to review and comment by the Company in all respects.

 

4.3             
Subject to applicable requirements of the Securities Act and the interpretations of the Commission thereunder and any requirements
of the Company’s transfer agent, the Company shall use commercially reasonable efforts to ensure that instruments, whether certificated
or uncertificated, evidencing the Securities shall not contain any legend (including the legend set forth in Section 4.4 below) (i) following
any sale of such Securities pursuant to Rule 144, (ii) if such Securities are eligible for sale under Rule 144 without the requirement
for the Company to be in compliance with the current public information required under Rule 144 and without volume or manner-of-sale restrictions,
and in each case, Subscriber provides the Company with an undertaking to effect any sales or other transfers in accordance with the Securities
Act, or (iii) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and
pronouncements issued by the staff of the Commission).

 

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4.4             
 Subscriber agrees to the imprinting, so long as is required by this Section 4, of a legend on any of the Securities
and, if applicable, the ProSomnus Securities, in the following form:

 

THIS SECURITY HAS NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

4.5             
Subscriber hereby acknowledges and agrees that it will not, and will cause each person acting at Subscriber’s direction
or pursuant to any understanding with Subscriber to not, directly or indirectly offer, sell, pledge, contract to sell or sell any option
to purchase, or engage in hedging activities or execute any “short sales” as defined in Rule 200 of Regulation SHO under the
Exchange Act, in each case that result in Subscriber having a net short cash position in respect of the Securities until the Closing (or
such earlier termination of this Subscription Agreement in accordance with its terms). For the avoidance of doubt, nothing contained herein
shall prohibit Subscriber from (i) any purchase of securities by Subscriber, its controlled affiliates or any person or entity acting
on behalf of Subscriber or any of its controlled affiliates in an open market transaction after the execution of this Subscription Agreement,
or (ii) any sale (including the exercise of any redemption right) of securities of the Company (A) held by Subscriber, its controlled
affiliates or any person or entity acting on behalf of Subscriber or any of its controlled affiliates prior to the execution of this Subscription
Agreement or (B) purchased by Subscriber, its controlled affiliates or any person or entity acting on behalf of Subscriber or any of its
controlled affiliates in an open market transaction after the execution of this Subscription Agreement. Notwithstanding the foregoing,
(i) nothing herein shall prohibit other entities under common management with Subscriber that have no knowledge of this Subscription Agreement
or of Subscriber’s participation in the Transaction (including Subscriber’s controlled affiliates and/or affiliates) from
entering into any “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act and (ii) in the case of a
Subscriber that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Subscriber’s
assets and the portfolio managers have no knowledge of the investment decisions made by the portfolio managers managing other portions
of such Subscriber’s assets, the representation set forth above shall only apply with respect to the portion of assets managed by
the portfolio manager that made the investment decision to purchase the Securities covered by this Subscription Agreement.

 

4.6             
The Company will use its commercially reasonable efforts to make all Securities eligible on the Direct Registration System
of the Depository Trust Company so that Subscriber can move shares to respective prime broker accounts and sell without restriction.

 

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5.                  Termination.
Except for the provisions of Sections 5, 7, 8 and 9 and the provisions of this Agreement providing for the return of funds
previously delivered other than the Forwarded Payments in the event the Closing does not occur, all of which shall survive any
termination hereunder, this Subscription Agreement shall terminate and be void and of no further force and effect, and all rights
and obligations of the parties hereunder shall terminate without any further liability on the part of any party in respect thereof,
upon the earliest to occur of (i) such date and time as the Transaction Agreement is terminated in accordance with its terms,
(ii) upon the mutual written agreement of each of the parties hereto to terminate this Subscription Agreement, (iii) at the
election of the Subscriber, if the Closing shall not have occurred on or before the Outside Date (as defined in the Transaction
Agreement), or (iv) if any of the conditions to Closing set forth in Section 3.2 are not satisfied on or prior to the Closing Date
and, as a result thereof, the transactions contemplated by this Subscription Agreement are not consummated at the Closing; provided,
that, subject to the limitations set forth in Section 8, nothing herein will relieve any party from liability for any willful
breach hereof prior to the time of termination, and each party will be entitled to any remedies at law or in equity to recover
losses, liabilities or damages arising from such breach; and further provided, that for the avoidance of doubt, the Forwarded
Payment and issuance of ProSomnus Securities is intended to be final, and no Forwarded Payments made or ProSomnus Securities issued
shall be subject to refund or rescission. The Company shall notify Subscriber of the termination of the Transaction Agreement
promptly after the termination of such agreement. Upon the termination hereof in accordance with this Section 5, any monies paid by
Subscriber to the Company in connection herewith shall promptly (and in any event within two (2) Business Days) be returned in full
to Subscriber by wire transfer of U.S. dollars in immediately available funds to the account specified by Subscriber.

 

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6.                 
Registration Rights.

 

6.1              The
Company agrees that within thirty (30) days after the Closing Date, the Company will file with the Commission (at the
Company’s sole cost and expense) a registration statement to register under and in accordance with the provisions of the
Securities Act, the resale of all of the Registrable Securities (as defined below) on Form S-3 or Form S-1 (which in either case
shall be filed pursuant to Rule 415 under the Securities Act as a secondary-only registration statement), which shall be on Form S-3
if the Company is then eligible for such short form, or any similar or successor short form registration or, if the Company is not
then eligible for such short form registration or would not be able to register for resale all of the Registrable Securities on Form
S-3, on Form S-1 or any similar or successor long form registration (the “Registration Statement”). The Company
will provide a draft of the Registration Statement to Subscriber for review at least two (2) business days in advance of the filing
the Registration Statement, and shall advise Subscriber promptly upon the Registration Statement being declared effective by the
Commission. The Company shall use its commercially reasonable efforts to have the Registration Statement declared effective by the
Commission as soon as practicable after the filing thereof, but no later than the earlier of (i) sixty (60) calendar days (or ninety
(90) calendar days if the Commission notifies the Company that it will “review” the Registration Statement) following
the Closing Date and (ii) the fifth (5th) business day after the date the Company is notified in writing by the
Commission that the Registration Statement will not be “reviewed” or will not be subject to further review (such earlier
date, the “Effectiveness Deadline”); provided, however, that the Company’s obligations to include the
Registrable Securities of Subscriber in the Registration Statement are contingent upon Subscriber furnishing in writing to the
Company such information regarding Subscriber, the securities of the Company held by Subscriber and the intended method of
disposition of the Registrable Securities as shall be reasonably requested by the Company to effect the registration of the
Registrable Securities, and Subscriber shall execute such documents in connection with such registration as the Company may
reasonably request that are customary of a selling shareholder in similar situations. Notwithstanding the foregoing, if the
Commission prevents the Company from including any or all of the Common Stock proposed to be registered under the Registration
Statement due to limitations on the use of Rule 415 under the Securities Act for the resale of the Registrable Securities by the
Subscribers or otherwise, the Company shall use its best efforts to ensure that the Commission determines that (1) the offering
contemplated by the Registration Statement is a bona fide secondary offering and not an offering “by or on behalf of the
issuer” as defined in Rule 415 of the Securities Act and (2) Subscriber is not a statutory underwriter. If the Company is
unsuccessful in the efforts described in the preceding sentence then (i) the Company shall cause such Registration Statement to
register for resale such number of Common Stock which is equal to the maximum number of Common Stock as is permitted by the
Commission and (ii) Subscriber shall have an opportunity to withdraw its Registrable Securities. In such event, the number of Common
Stock to be registered for each selling shareholder named in the Registration Statement shall be reduced pro rata among all such
selling shareholders. The Company will use its commercially reasonable efforts to maintain the continuous effectiveness of the
Registration Statement until the earliest of (x) such time as when all of Subscriber’s securities included therein cease to be
Registrable Securities, (y) such time as when all of Subscriber’s Registrable Securities included in such Registration
Statement have actually been sold and (z) three years from the Closing Date. The Company will use its commercially reasonable
efforts to cause the removal of all restrictive legends from any Registrable Securities being sold under the Registration Statement
at the time of sale of such Registrable Securities upon the receipt from the Subscriber of such supporting documentation, if any, as
requested by the Company. The Company will use commercially reasonable efforts to file all reports, and provide all customary and
reasonable cooperation, reasonably necessary to enable Subscriber to resell Registrable Securities pursuant to the Registration
Statement and Rule 144, qualify the Registrable Securities for listing on the applicable stock exchange and update or amend the
Registration Statement as necessary to include Registrable Securities. “Registrable Securities” shall mean, as of
any date of determination, the Securities and any other equity security issued or issuable with respect to the Securities by way of
share split, dividend, distribution, recapitalization, merger, exchange, replacement or similar event, provided, however, that such
securities shall cease to be Registrable Securities at the earliest of (A) three (3) years after the Closing Date, (B) the date all
Securities held by Subscriber may be sold by Subscriber without volume or manner of sale limitations pursuant to Rule 144 and
without the requirement for the Company to be in compliance with the current public information required under Rule 144(c)(1) (or
Rule 144(i)(2), if applicable), (C) the date on which such securities have actually been sold by Subscriber, or (D) when such
securities shall have ceased to be outstanding. Notwithstanding the foregoing, Subscriber shall not be required to sign any form of
lock-up agreement in connection with the Registration Statement. Subscriber may deliver written notice (an “Opt-Out
Notice”) to the Company requesting that Subscriber not receive notices from the Company otherwise required by this Section
6.1; provided, however, that Subscriber may later revoke any such Opt-Out Notice in writing. Following receipt of an Opt-Out Notice
from Subscriber (unless subsequently revoked), (i) the Company shall not deliver any such notices to Subscriber and Subscriber shall
no longer be entitled to the rights associated with any such notice and (ii) Subscriber will notify the Company in writing at least
three (3) business days in advance of each intended use of an effective Registration Statement, and if a notice of a Suspension
Event (as defined below) was previously delivered (or would have been delivered but for the provisions of this Section 6.1) and the
related suspension period remains in effect, the Company will so notify Subscriber, within two (2) business days after
Subscriber’s notification to the Company, by delivering to Subscriber a copy of such previous notice of Suspension Event, and
thereafter will provide Subscriber with the related notice of the conclusion of such Suspension Event promptly following its
availability.

 

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6.2             
At its expense the Company shall:

 

6.2.1       
except for such times as the Company is permitted hereunder to suspend the use of the prospectus forming part of a Registration
Statement, use its commercially reasonable efforts to keep such registration, and any qualification, exemption or compliance under state
securities laws that the Company determines to obtain in connection with such registration, continuously effective with respect to Subscriber,
and to keep the applicable Registration Statement or any subsequent shelf registration statement free of any material misstatements or
omissions, until all Securities acquired by Subscriber hereunder cease to be Registrable Securities or such shorter period upon which
Subscriber has notified the Company that such Registrable Securities have actually been sold, or otherwise when such Registration Statement
is no longer required to be effective under this Section 6;

 

6.2.2       
subject to an Opt-Out Notice, advise Subscriber within three (3) business days: (A) of the issuance by the Commission of
any stop order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for such purpose; (B) of
the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities included
therein for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and (C) subject to the provisions
in this Subscription Agreement, of the occurrence of any event that requires the making of any changes in any Registration Statement or
prospectus included therein so that, as of such date, the statements therein are not misleading and do not omit to state a material fact
required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in the light of the circumstances
under which they were made) not misleading. Notwithstanding anything to the contrary set forth herein, the Company shall not, when so
advising Subscriber of such events, provide Subscriber with any material, nonpublic information regarding the Company other than to the
extent that providing notice to Subscriber of the occurrence of the events listed in (A) through (C) above constitutes material, nonpublic
information regarding the Company;

 

6.2.3       
use its commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of any Registration
Statement as promptly as reasonably practicable;

 

6.2.4        upon
the occurrence of any event contemplated in Section 6.2.2, except for such times as the Company is permitted hereunder to suspend,
and has suspended, the use of a prospectus forming part of a Registration Statement, the Company shall use its commercially
reasonable efforts to as promptly as reasonably practicable prepare a post-effective amendment to such Registration Statement or a
supplement to the related prospectus, or file any other required document so that, as thereafter delivered to purchasers of the
Registrable Securities included therein, such prospectus will not include any untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading;

 

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6.2.5       
use its commercially reasonable efforts to cause all Securities to be listed on each securities exchange or market, if any,
on which the Common Stock issued by the Company have been listed; and

 

6.2.6       
use its commercially reasonable efforts to take all other steps necessary to effect the registration of the Registrable
Securities contemplated hereby.

 

6.3              Notwithstanding
anything to the contrary in this Subscription Agreement, the Company shall be entitled to delay or postpone the effectiveness of the
Registration Statement, and from time to time to require Subscriber not to sell under the Registration Statement or to suspend the
effectiveness thereof, (i) if any information (e.g., compensation data) is not readily available and the non-disclosure of which in
the Registration Statement would be expected, in the reasonable determination of the Company’s board of directors, upon the
advice of external legal counsel, to cause the Registration Statement to fail to comply with applicable disclosure requirements,
(ii) at any time the Company is required to file a post-effective amendment to the Registration Statement and the Commission has not
declared such amendment effective or (iii) if the negotiation or consummation of a transaction by the Company or its subsidiaries is
pending or an event has occurred, which negotiation, consummation or event, the Company’s board of directors reasonably
believes, upon the advice of external legal counsel, would require additional disclosure by the Company in the Registration
Statement of material non-public information that the Company has a bona fide business purpose for keeping confidential and the
non-disclosure of which in the Registration Statement would be expected, in the reasonable determination of the Company’s
board of directors, upon the advice of external legal counsel, to cause the Registration Statement to fail to comply with applicable
disclosure requirements (each such circumstance, a “Suspension Event”); provided, however, the Company shall not
so delay filing or so suspend the use of the Registration Statement on more than two (2) occasions or for a period of more than
sixty (60) consecutive days or more than a total of ninety (90) calendar days, in each case in any three hundred sixty (360) day
period. Upon receipt of any written notice from the Company of the happening of any Suspension Event during the period that the
Registration Statement is effective or if as a result of a Suspension Event the Registration Statement or related prospectus
contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made (in the case of the prospectus) not
misleading, Subscriber agrees that (i) it will immediately discontinue offers and sales of the Registrable Securities under the
Registration Statement (excluding, for the avoidance of doubt, sales conducted pursuant to Rule 144) until such Subscriber receives
copies of a supplemental or amended prospectus (which the Company agrees to promptly prepare after the completion of the Suspension
Event) that corrects the misstatement(s) or omission(s) referred to above and receives notice that any post-effective amendment has
become effective or unless otherwise notified by the Company that it may resume such offers and sales, and (ii) it will maintain the
confidentiality of any information included in such written notice delivered by the Company unless otherwise required by law or
subpoena. If so directed by the Company, Subscriber will deliver to the Company or, in such Subscriber’s sole discretion
destroy, all copies of the prospectus covering the Registrable Securities in such Subscriber’s possession; provided, however,
that this obligation to deliver or destroy all copies of the prospectus covering the Registrable Securities shall not apply (i) to
the extent such Subscriber is required to retain a copy of such prospectus (a) in order to comply with applicable legal, regulatory,
self-regulatory or professional requirements or (b) in accordance with a bona fide pre-existing document retention policy or (ii) to
copies stored electronically on archival servers as a result of automatic data back-up.

 

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6.4              The
Company shall indemnify, defend and hold harmless Subscriber (to the extent a seller under the Registration Statement), and any of
its officers, directors, agents, partners, members, stockholders, affiliates, managers, investment advisers and employees, and each
person who controls Subscriber (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), to the
fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including
reasonable out-of-pocket external attorneys’ fees and expenses incurred in connection with defending or investigating any such
action or claim) and expenses (collectively, “Losses”), as incurred, that arise out of or are based upon (i) any
untrue or alleged untrue statement of a material fact contained in the Registration Statement, any prospectus included in the
Registration Statement or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or
arising out of or relating to any omission or alleged omission to state a material fact required to be stated therein or necessary
to make the statements therein (in the case of any prospectus or form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading or (ii) any violation or alleged violation by the Company of the Securities
Act, Exchange Act or any state securities law or any rule or regulation thereunder, in connection with the performance of its
obligations under this Section 6, except insofar as and to the extent, but only to the extent, that such untrue statements, alleged
untrue statements, omissions or alleged omissions are based upon information regarding Subscriber furnished in writing to the
Company by such Subscriber expressly for use therein or such Subscriber has omitted a material fact from such information or
otherwise violated the Securities Act, the Exchange Act or any state securities law or any rule or regulation thereunder, in each
case, in connection with the registration of the Common Stock; provided, however, that the indemnification contained in this Section
6 shall not apply to amounts paid in settlement of any Losses if such settlement is effected without the consent of the Company
(which consent shall not be unreasonably withheld, conditioned or delayed), nor shall the Company be liable for any Losses to the
extent they arise out of or are based upon a violation which occurs (A) in reliance upon and in conformity with written information
furnished by such Subscriber, (B) in connection with any failure of such person to deliver or cause to be delivered a prospectus
made available by the Company in a timely manner, (C) as a result of offers or sales effected by or on behalf of any person by means
of a “free writing prospectus” (as defined in Rule 405 under the Securities Act) that was not authorized in writing by
the Company, or (D) in connection with any offers or sales effected by or on behalf of such Subscriber in violation of Section 6.3
hereof. Subscriber shall notify the Company promptly of the institution of any proceeding arising from or in connection with the
transactions contemplated by this Section 6 of which Subscriber becomes aware, provided that a failure by Subscriber to provide such
notice shall not impact Subscriber’s right to be indemnified hereunder unless the Company is actually prejudiced thereby. Such
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of an indemnified party and
shall survive the transfer of the Securities by Subscriber.

 

    21

     

    

 

6.5             
Subscriber shall (severally and not jointly with any Other Subscriber) indemnify and hold harmless the Company, its directors,
officers, agents and employees, and each person who controls the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising out of or
are based upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any prospectus included
in the Registration Statement, or any form of prospectus, or in any amendment or supplement thereto or in any preliminary prospectus,
or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make
the statements therein (in the case of any prospectus, or any form of prospectus or supplement thereto, in light of the circumstances
under which they were made) not misleading to the extent, but only to the extent, that such untrue statements or omissions are based solely
upon information regarding Subscriber furnished in writing to the Company by Subscriber expressly for use therein; provided, however,
that the indemnification contained in this Section 6 shall not apply to amounts paid in settlement of any Losses if such settlement is
effected without the consent of Subscriber (which consent shall not be unreasonably withheld, conditioned or delayed). In no event shall
the liability of Subscriber be greater in amount than the dollar amount of the net proceeds received by Subscriber upon the sale of the
Registrable Securities giving rise to such indemnification obligation. The Company shall notify Subscriber promptly of the institution
of any proceeding arising from or in connection with the transactions contemplated by this Section 6 of which the Company becomes aware,
provided that a failure by the Company to provide such notice shall not impact the Company’s right to be indemnified hereunder unless
Subscriber is actually prejudiced thereby. Such indemnity shall remain in full force and effect regardless of any investigation made by
or on behalf of an indemnified party and shall survive the transfer of the Securities by Subscriber.

 

6.6              If
the indemnification provided under this Section 6 from the indemnifying party is unavailable or insufficient to hold harmless an
indemnified party in respect of any losses, claims, damages, liabilities and expenses referred to herein, then the indemnifying
party, in lieu of indemnifying the indemnified party, shall contribute to the amount paid or payable by the indemnified party as a
result of such losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault
of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The relative fault of
the indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact, was made by, or relates to information supplied by, such indemnifying party or indemnified party, and the indemnifying
party’s and indemnified party’s relative intent, knowledge, access to information and opportunity to correct or prevent
such action. The amount paid or payable by a party as a result of the losses or other liabilities referred to above shall be deemed
to include, subject to the limitations set forth in this Section 6, any legal or other fees, charges or expenses reasonably incurred
by such party in connection with any investigation or proceeding. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution pursuant to this Section 6 from any person who was
not guilty of such fraudulent misrepresentation. Each indemnifying party’s obligation to make a contribution pursuant to this
Section 6.6 shall be individual, not joint and several, and in no event shall the liability of Subscriber hereunder be greater in
amount than the dollar amount of the net proceeds received by Subscriber upon the sale of the Registrable Securities giving rise to
such indemnification obligation.

 

    22

     

    

 

7.                 
Miscellaneous.

 

7.1             
Further Assurances. At the Closing, the parties hereto shall execute and deliver such additional documents and take
such additional actions as the parties reasonably may deem to be practical and necessary in order to consummate the Subscription as contemplated
by this Subscription Agreement.

 

7.1.1       
Subscriber acknowledges that the Company, ProSomnus and others will rely on the acknowledgments, understandings, agreements,
representations and warranties contained in this Subscription Agreement. Subscriber agrees to promptly notify the Company and ProSomnus
if any of the acknowledgments, understandings, agreements, representations and warranties made by Subscriber set forth herein are no longer
accurate in all material respects.

 

7.1.2       
Each of the Company, ProSomnus and Subscriber is entitled to rely upon this Subscription Agreement and is irrevocably authorized
to produce this Subscription Agreement or a copy hereof to any interested party in any administrative or legal proceeding or official
inquiry with respect to the matters covered hereby, in each case, to the extent required by applicable law.

 

7.1.3       
The Company may request from Subscriber such additional information as the Company may deem reasonably necessary to evaluate
the eligibility of Subscriber to acquire the Securities, and Subscriber shall use reasonable best efforts to promptly provide such information
as may be reasonably requested, to the extent readily available and to the extent consistent with its internal policies and procedures,
provided that the Company agrees to keep confidential any such information provided by Subscriber.

 

7.2             
Notices. Any notice or communication required or permitted hereunder shall be in writing and either delivered personally,
emailed or sent by overnight mail via a reputable overnight carrier, or sent by certified or registered mail, postage prepaid, and shall
be deemed to be given and received (a) when so delivered personally, (b) when sent, with affirmative confirmation of receipt, if sent
by email, (c) one (1) business day after being sent, if sent by reputable, internationally recognized overnight courier service or (d)
three (3) business days after the date of mailing by registered or certified mail (prepaid and return receipt requested), in any case,
to the address below or to such other address or addresses as such person may hereafter designate by notice given hereunder:

 

(i)                
if to Subscriber, to such address or addresses set forth on the signature page hereto;

 

    23

     

    

 

(ii)             
if to the Company (prior to the Closing), to:

 

Lakeshore Acquisition I
Corp.

667 Madison Avenue

New York, NY 10065

Attn: Bill Chen

Telephone No.: (917) 327-9933

E-mail: bchen65@126.com

 

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

 

Loeb & Loeb LLP

345 Park Avenue, 19th Floor

New York, NY 10154

Attention: Giovanni Caruso

E-mail: gcaruso@loeb.com

 

(iii)           
if to ProSomnus, to:

 

ProSomnus Holdings Inc.

5860 W Las Positas Blvd., Suite 25

Pleasanton, CA 94588

Attn: Len Liptak

Telephone No.: (925) 353-7904

E-mail: lliptak@ProSomnus.com

 

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

 

Nelson Mullins Riley &
Scarborough LLP

101 Constitution Avenue
NW, Suite 900

Washington, DC 20001

Attn: Peter Strand, Esq.

Facsimile No.: (202) 689-2952

Telephone No.: (202) 689-2983

E-mail: peter.strand@nelsonmullins.com

 

(iv)            
if to the Company (following the Closing), to:

 

ProSomnus Holdings Inc.

5860 W Las Positas Blvd., Suite 25

Pleasanton, CA 94588

Attn: Len Liptak

Telephone No.: (925) 353-7904

E-mail: lliptak@ProSomnus.com

 

    24

     

    

 

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

 

Nelson Mullins Riley &
Scarborough LLP

101 Constitution Avenue
NW, Suite 900

Washington, DC 20001

Attn: Peter Strand, Esq.

Facsimile No.: (202) 689-2952

Telephone No.: (202) 689-2983

E-mail: peter.strand@nelsonmullins.com

 

7.3             
Entire Agreement. This Subscription Agreement constitutes the entire agreement, and supersedes all other prior agreements,
understandings, representations and warranties, both written and oral, among the parties, with respect to the subject matter hereof (other
than any confidentiality agreement entered into by the Company and Subscriber in connection with the Offering).

 

7.4             
Modifications and Amendments. This Subscription Agreement may not be modified, waived or terminated except by an
instrument in writing, signed by the parties hereto.

 

7.5             
Waivers and Consents. The terms and provisions of this Subscription Agreement may be waived, or consent for the departure
therefrom granted, only by a written document executed by the party against whom enforcement of such waiver or consent is sought. No such
waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this
Subscription Agreement, whether or not similar. Each such waiver or consent shall be effective only in the specific instance and for the
purpose for which it was given, and shall not constitute a continuing waiver or consent. No failure or delay by a party hereto in exercising
any right, power or remedy under this Subscription Agreement, and no course of dealing between the parties hereto, shall operate as a
waiver of any such right, power or remedy of such party. No single or partial exercise of any right, power or remedy under this Subscription
Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall preclude
such party from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any
remedy by a party hereto shall not constitute a waiver of the right of such party to pursue other available remedies. No notice to or
demand on a party not expressly required under this Subscription Agreement shall entitle the party receiving such notice or demand to
any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the party giving such
notice or demand to any other or further action in any circumstances without such notice or demand.

 

7.6              Assignment.
Neither this Subscription Agreement nor any rights, interests or obligations that may accrue to the Subscriber hereunder (other than
the Securities acquired hereunder by Subscriber, if any, after the Closing and Subscriber’s rights under Section 6 above) may
be transferred or assigned without the prior written consent of the Company, and any purported transfer or assignment without such
consent shall be null and void ab initio; provided, however, Subscriber may transfer or assign its rights, interests
and obligations hereunder to a controlled affiliate of Subscriber or another investment fund or account managed or advised by the
same manager as Subscriber (or a related party or affiliate) that can satisfy the requirements of Section 2.1.4 and the other
representations and warranties in Section 2.1, provided, further, that no such transfer or assignment without the prior
express written consent of the Company shall release Subscriber of its obligations hereunder and such transferee(s) or assignee(s),
as applicable, agrees in writing to be bound by the terms hereof as if it were the original Subscriber party hereto.

 

    25

     

    

 

7.7             
Benefit. Except as otherwise provided herein, this Subscription Agreement shall be binding upon, and inure to the
benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives, and permitted assigns, and
the agreements, representations, warranties, covenants and acknowledgments contained herein shall be deemed to be made by, and be binding
upon, such heirs, executors, administrators, successors, legal representatives and permitted assigns. Except as expressly provided for
herein, this Subscription Agreement shall not confer rights or remedies upon any person other than the parties hereto and their respective
successors and permitted assigns.

 

7.8             
Governing Law. This Subscription Agreement, and any claim or cause of action hereunder based upon, arising out of
or related to this Subscription Agreement (whether based on law, in equity, in contract, in tort or any other theory) or the negotiation,
execution, performance or enforcement of this Subscription Agreement, shall be governed by and construed in accordance with the laws of
the State of New York, without giving effect to the principles of conflicts of law thereof.

 

7.9             
Consent to Jurisdiction; Waiver of Jury Trial. The parties hereto agree to submit any matter or dispute resulting
from or arising out of the execution, performance, interpretation, breach or termination of this Agreement to the exclusive jurisdiction
of federal or state courts within the County of New York, State of New York (and any appellate courts thereof) (the “Specified
Courts”). Each of the parties agrees that service of any process, summons, notice or document in the manner set forth in Section
7.2 hereof or in such other manner as may be permitted by applicable law, shall be effective service of process for any proceeding with
respect to any matters to which it has submitted to jurisdiction in this Section 7.9. Each of the parties hereto irrevocably and unconditionally
agrees that it is subject to, and hereby submits to, the personal jurisdiction of the Specified Courts for any action, suit or proceeding
arising out of this Subscription Agreement or the transactions contemplated hereunder and waives any objection to the laying of venue
in the Specified Courts (the United States District Court for the Southern District of New York, or the applicable New York state courts
if the federal jurisdictional standards are not satisfied), and hereby further irrevocably and unconditionally waives and agrees not to
plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient
forum. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ITS RIGHTS TO A TRIAL BY JURY.

 

7.10          Non-Reliance
and Exculpation. Subscriber acknowledges that it is not relying upon, and has not relied upon, any statement, representation or
warranty made by any person other than the statements, representations and warranties of the Company expressly contained in Section
2.2 of this Subscription Agreement, in making its investment or decision to invest in the Company. Subscriber further acknowledges
and agrees that no Other Subscriber pursuant to Other Subscription Agreements (including the controlling persons, members, officers,
directors, partners, agents, employees or other representatives of any such Other Subscriber) shall be liable to Subscriber pursuant
to this Subscription Agreement for any action heretofore or hereafter taken or omitted to be taken by any of them in connection with
the purchase of the Securities.

 

    26

     

    

 

7.11         
Severability. If any provision of this Subscription Agreement shall be invalid, illegal or unenforceable, the validity,
legality or enforceability of the remaining provisions of this Subscription Agreement shall not in any way be affected or impaired thereby
and shall continue in full force and effect. Upon such determination that any provision is invalid, illegal or unenforceable, the parties
will substitute for any invalid, illegal or unenforceable provision a suitable and equitable provision that carries out so far as may
be valid, legal and enforceable, the intent and purpose of such invalid, illegal or unenforceable provision.

 

7.12         
Survival of Representations and Warranties. All representations and warranties made by the parties hereto in this
Subscription Agreement or in any other agreement, certificate or instrument provided for or contemplated hereby, shall survive the Closing
until the expiration of any statute of limitations under applicable law.

 

7.13         
Expenses. The Subscriber shall pay all of its own expenses in connection with this Subscription Agreement and the
transactions contemplated herein.

 

7.14         
Headings and Captions. The headings and captions of the various subdivisions of this Subscription Agreement are for
convenience of reference only and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

 

7.15         
Counterparts. This Subscription Agreement may be executed in one or more counterparts (including by facsimile or
electronic mail or in .pdf), all of which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign
the same counterpart. In the event that any signature is delivered by facsimile transmission or any other form of electronic delivery,
such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with
the same force and effect as if such signature page were an original thereof.

 

7.16          Construction.
The words “include,” “includes,” and “including” will be deemed to be
followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to
include any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context
otherwise requires. The words “this Subscription Agreement,” “herein,”
 “hereof,” “hereby,” “hereunder,” and words of similar import refer to this
Subscription Agreement as a whole and not to any particular subdivision unless expressly so limited. The parties hereto intend that
each representation, warranty, and covenant contained herein will have independent significance. If any party hereto has breached
any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation,
warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which such party hereto
has not breached will not detract from or mitigate the fact that such party hereto is in breach of the first representation,
warranty, or covenant. All references in this Subscription Agreement to numbers of shares, per share amounts and purchase prices
shall be appropriately adjusted to reflect any stock split, stock dividend, stock combination, recapitalization or the like
occurring after the date hereof. As used in this Subscription Agreement, the term: (x) “person” shall refer to any
individual, corporation, partnership, trust, limited liability company or other entity or association, including any governmental or
regulatory body, whether acting in an individual, fiduciary or any other capacity; and (y) “affiliate” shall mean, with
respect to any specified person, any other person or group of persons acting together that, directly or indirectly, through one or
more intermediaries controls, is controlled by or is under common control with such specified person (where the term
 “control” (and any correlative terms) means the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of such person, whether through the ownership of voting securities, by contract or
otherwise).

 

    27

     

    

 

7.17         
Mutual Drafting. This Subscription Agreement is the joint product of Subscriber and the Company and each provision
hereof has been subject to the mutual consultation, negotiation and agreement of such parties and shall not be construed for or against
any party hereto.

 

7.18         
Remedies.

 

7.18.1   
The parties agree that the irreparable damage would occur if this Subscription Agreement was not performed in accordance
with its specific terms or was otherwise breached and that money damages or other legal remedies would not be an adequate remedy for any
such damage. It is accordingly agreed that the parties hereto shall be entitled to equitable relief, including in the form of an injunction
or injunctions, to prevent breaches or threatened breaches of this Subscription Agreement and to enforce specifically the terms and provisions
of this Subscription Agreement in an appropriate court of competent jurisdiction as set forth in Section 7.9, this being in addition to
any other remedy to which any party is entitled at law or in equity, including money damages. The right to specific enforcement shall
include the right of the parties hereto to cause to cause the other parties hereto to cause the transactions contemplated hereby to be
consummated on the terms and subject to the conditions and limitations set forth in this Subscription Agreement. The parties hereto further
agree (i) to waive any requirement for the security or posting of any bond in connection with any such equitable remedy, (ii) not to assert
that a remedy of specific enforcement pursuant to this Section 7.18 is unenforceable, invalid, contrary to applicable law or inequitable
for any reason and (iii) to waive any defenses in any action for specific performance, including the defense that a remedy at law would
be adequate.

 

7.18.2   
The parties acknowledge and agree that this Section 7.18 is an integral part of the transactions contemplated hereby and
without that right, the parties hereto would not have entered into this Subscription Agreement.

 

7.18.3    In
any dispute arising out of or related to this Subscription Agreement, or any other agreement, document, instrument or certificate
contemplated hereby, or any transactions contemplated hereby or thereby, the applicable adjudicating body shall award to the
prevailing party, if any, the documented and out-of-pocket costs and external attorneys’ fees reasonably incurred by the
prevailing party in connection with the dispute and the enforcement of its rights under this Subscription Agreement or any other
agreement, document, instrument or certificate contemplated hereby and, if the adjudicating body determines a party to be the
prevailing party under circumstances where the prevailing party won on some but not all of the claims and counterclaims, the
adjudicating body may award the prevailing party an appropriate percentage of the documented out-of-pocket costs and external
attorneys’ fees reasonably incurred by the prevailing party in connection with the adjudication and the enforcement of its
rights under this Subscription Agreement or any other agreement, document, instrument or certificate contemplated hereby or
thereby.

 

    28

     

    

 

8.                 
Disclosure.

 

8.1             
The Company shall, by 5:30 p.m., New York City time, on the first (1st ) business day immediately following the
date of this Subscription Agreement file a Current Report on Form 8-K with the Commission (the time of such filing, “Disclosure
Time”) disclosing and describing all material terms of the transactions contemplated hereby and the Merger, and a form of this
Subscription Agreement will be filed with the Commission as an exhibit thereto. From and after the Disclosure Time, the Company represents
to Subscriber that it shall have publicly disclosed all material, non-public information delivered to Subscriber by the Company, ProSomnus
or any of their officers, directors, employees or agents in connection with the transactions contemplated by the Subscription Agreement
and the Transaction Agreement, and Subscriber shall no longer be subject to any confidentiality or similar obligations under any current
agreement, whether written or oral with Company or any of their affiliates, relating to the transactions contemplated by this Subscription
Agreement.

 

8.2             
Notwithstanding anything in this Subscription Agreement to the contrary, the Company shall not publicly disclose the name
of Subscriber or any of its affiliates, or include the name of Subscriber or any of its affiliates in any press release or in any filing
with the Commission or any regulatory agency or trading market, without the prior written consent of Subscriber, except (i) as required
by the federal securities law in connection with the Registration Statement, (ii) in a press release or marketing materials of the Company
in connection with the Merger to the extent any such disclosure is substantially equivalent to the information that has previously been
made public without breach of the obligation under this Section 8.2 and (iii) to the extent such disclosure is required by law, at the
request of the Staff of the Commission or regulatory agency or under the regulations of Nasdaq, in which case the Company shall provide
Subscriber with prior written notice of such disclosure, and shall reasonably consult with the Subscriber regarding such disclosure.

 

9.                  Trust
Account Waiver. Subscriber acknowledges that the Company is a blank check company with the powers and privileges to effect a
merger, asset acquisition, reorganization or similar business combination involving the Company and one or more businesses or
assets. Subscriber further acknowledges that, as described in the Prospectus available at www.sec.gov, substantially all of the
Company’s assets consist of the cash proceeds of Company’s initial public offering (including overallotment securities
sold by the Company’s underwriter thereafter) and private placements of its securities, and substantially all of those
proceeds have been deposited in a trust account (the “Trust Account”) for the benefit of Company, its public
shareholders and the underwriters of Company’s initial public offering. Except with respect to interest earned on the funds
held in the Trust Account that may be released to Company to pay its tax obligations, if any, the cash in the Trust Account may be
disbursed only for the purposes set forth in the Prospectus. For and in consideration of the Company entering into this Subscription
Agreement, the receipt and sufficiency of which are hereby acknowledged, Subscriber, on behalf of itself and its representatives,
hereby irrevocably waives any and all right, title and interest, or any claim of any kind they now have or may have in the future,
in or to any monies held in the Trust Account or distributions therefrom to the Company’s public stockholders, and agrees not
to seek recourse against the Trust Account for any claims in connection with, as a result of, or arising out of, this Subscription
Agreement or the transactions contemplated hereby; provided, however, that nothing in this Section 9 (x) shall
serve to limit or prohibit Subscriber’s right to pursue a claim against Company for legal relief against assets held outside
the Trust Account (other than distributions to the Company’s public stockholders), for specific performance or other equitable
relief, (y) shall serve to limit or prohibit any claims that Subscriber may have in the future against Company’s assets
or funds that are not held in the Trust Account (including any funds that have been released from the Trust Account (other than
distributions to the Company’s public stockholders) and any assets that have been purchased or acquired with any such funds)
or (z) shall be deemed to limit any Subscriber’s right, title, interest or claim to the Trust Account by virtue of such
Subscriber’s record or beneficial ownership of securities of the Company acquired by any means other than pursuant to this
Subscription Agreement, including but not limited to any redemption right with respect to any such securities of the Company.

 

[Signature Pages Follow]

 

    29

     

    

 

IN WITNESS WHEREOF,
each of the Company and Subscriber has executed or caused this Subscription Agreement to be executed by its duly authorized representative
as of the date first set forth above.

 

	LAKESHORE ACQUISITION I CORP.	 
	 	 
	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 
	 	 
	PROSOMNUS HOLDINGS INC.	 
	 	 
	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

[Signature page to Subscription Agreement]

 

     

     

    

 

Accepted and agreed as of the date first set forth
above.

 

SUBSCRIBER:

 

	Name of Subscriber:	 	Name of Joint Subscriber, if applicable
	 	 	 
	 	 	 
	 	 	 
	{Please print}	 	{Please print}
	 	 	 
	Signature of Subscriber:	 	Signature of Joint Subscriber, if applicable:
	 	 	 
	 	 	 
	By:	 	 	By:	 
	 	Name:	 	 	Name:
	 	Title:	 	 	Title:

 

	If there are joint investors, please check one:	 	 
	 ̈   Joint
Tenants with Rights of Survivorship	 	 
	 ̈   Community Property	 	 
	 ̈   Tenants-in-Common	 	 
	 	 	 
	Subscriber’s EIN:	 	 	Joint Subscriber’s EIN: 
	 	 	 
	Business Address-Street:	 	Mailing Address-Street (if different):
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 	 
	City, State, Zip: 	                           	 	City, State, Zip: 	                             
	 	 	 	 	 
	Attn:	 	 	Attn:	 
	 	 	 
	Telephone No.:	 	 	Telephone No.:	 
	 	 	 	 	 
	Facsimile No:	 	 	Facsimile No:	 
	 	 	 	 	 
	Email Address:	 	 	Email Address:	 

 

 

	Aggregate Number of shares of Common Stock subscribed for:                                                                                            
	 	 
	                                    Aggregate Purchase Price: $________________________	 

 

Subscriber must pay the Purchase Price by wire
transfer of U.S. dollars in immediately available funds to the account specified by the Company in the Closing Notice.

 

If Subscriber wants certificated Securities rather
than book-entry form, indicate here: ________

 

[Signature page to Subscription Agreement]

 

     

     

    

 

SCHEDULE A

ELIGIBILITY REPRESENTATIONS OF SUBSCRIBER

 

This Schedule A should be completed by
Subscriber

and constitutes a part of the Subscription Agreement.

 

		A.	QUALIFIED INSTITUTIONAL BUYER STATUS

 

(Please check the applicable subparagraphs):

 

		1.	 ̈	Subscriber is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933, as amended (the
 “Securities Act”) (a “QIB”)).

 

		2.	 ̈	Subscriber is subscribing for the Securities as a fiduciary or agent for one or more investor accounts, and each owner of such account
is a QIB.

 

*** OR ***

 

		B.	INSTITUTIONAL ACCREDITED INVESTOR STATUS

 

(Pleasecheck the applicable subparagraphs):

 

		1.	 ̈	Subscriber is an institutional “accredited investor” (within the meaning of Rule 501(a) under the Securities Act), and have
marked and initialed the appropriate box on the following page indicating the provision under which we qualify as an institutional “accredited
investor.”

 

		2.	 ̈	Subscriber is not a natural person.

 

*** AND ***

		C.	AFFILIATE STATUS

 

(Please check the applicable box) SUBSCRIBER:

 

		 ̈	is:

		 ̈	is not

 

an “affiliate” (as defined in Rule 144 under
the Securities Act) of the Company or acting on behalf of an affiliate of the Company.

 

Rule 501(a), in relevant part, states that an
 “accredited investor” shall mean any person who comes within any of the below listed categories, or who the issuer reasonably
believes comes within any of the below listed categories, at the time of the sale of the securities to that person. Subscriber has indicated,
by marking and initialing the appropriate box below, the provision(s) below which apply to Subscriber and under which Subscriber accordingly
qualifies as an “accredited investor.”

 

    Sch. A-1

     

    

 

		 ̈	Any bank as defined in section 3(a)(2) of the Securities Act, or any savings and loan association or other
institution as defined in section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;

 

		 ̈	Any broker or dealer registered pursuant to section 15 of the Exchange Act;

 

		 ̈	Any investment adviser registered pursuant to section 203 of the Investment Advisers Act of 1940 or registered
pursuant to the laws of a state;

 

		 ̈	Any investment adviser relying on the exemption from registering with the Commission under section 203(l)
or (m) of the Investment Advisers Act of 1940;

 

		 ̈	Any insurance company as defined in section 2(a)(13) of the Securities Act;

 

		 ̈	Any investment company registered under the Investment Company Act or a business development company as
defined in section 2(a) (48) of the Investment Company Act;

 

		 ̈	Any Small Business Investment Company licensed by the U.S. Small Business Administration under section
301(c) or (d) of the Small Business Investment Act of 1958;

 

		 ̈	Any Rural Business Investment Company as defined in section 384A of the Consolidated Farm and Rural Development
Act;

 

		 ̈	Any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality
of a state or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000;

 

		 ̈	Any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 (“ERISA”),
if (i) the investment decision is made by a plan fiduciary, as defined in section 3(21) of ERISA, which is either a bank, a savings and
loan association, an insurance company, or a registered investment adviser, (ii) the employee benefit plan has total assets in excess
of $5,000,000 or, (iii) the plan is a self-directed plan, with investment decisions made solely by persons that are “accredited
investors”;

 

		 ̈	Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act
of 1940;

 

		 ̈	Any (i) corporation, limited liability company or partnership, (ii) Massachusetts or similar business
trust, or (iii) organization described in section 501(c)(3) of the Internal Revenue Code, in each case that was not formed for the specific
purpose of acquiring the securities offered and that has total assets in excess of $5,000,000;

 

    Sch. A-2

     

    

 

		 ̈	Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring
the securities offered, whose purchase is directed by a sophisticated person as described in section 230.506(b)(2)(ii) of Regulation D
under the Securities Act;

 

		 ̈	Any entity, other than an entity described in the categories of “accredited investors” above,
not formed for the specific purpose of acquiring the securities offered, owning investments in excess of $5,000,000;

 

		 ̈	Any “family office,” as defined under the Investment Advisers Act that satisfies all of the
following conditions: (i) with assets under management in excess of $5,000,000, (ii) that is not formed for the specific purpose of acquiring
the securities offered and (iii) whose prospective investment is directed by a person who has such knowledge and experience in financial
and business matters that such family office is capable of evaluating the merits and risks of the prospective investment;

 

		 ̈	Any “family client,” as defined under the Investment Advisers Act, of a family office meeting
the requirements in the previous paragraph and whose prospective investment in the issuer is directed by such family office pursuant to
the previous paragraph; or

 

		 ̈	Any entity in which all of the equity owners are accredited investors.

 

		 ̈	I have an individual net worth, or joint net worth with my spouse or spousal equivalent, of more than $1,000,000 exclusive of the
value of my primary residence.

 

(For purposes of determining net worth, exclude
the value of your primary residence as well as the amount of indebtedness secured by your primary residence, up to the fair market value.
Any amount in excess of the fair market value of your primary residence must be included as a liability. In the event the indebtedness
on your primary residence was increased in the 60 days preceding the completion of this Agreement, the amount of the increase must be
included as a liability in the net worth calculation. For this purpose, “joint net worth” can be the aggregate net worth of
the investor and spouse or spousal equivalent; assets need not be held jointly to be included in the calculation. Reliance on the joint
net worth standard described herein does not require that the securities be purchased jointly. For this purpose, “spousal equivalent”
means a cohabitant occupying a relationship generally equivalent to that of a spouse.)

 

		 ̈	I have an individual income in excess of $200,000, or joint income with my spouse or spousal equivalent in excess of $300,000, in
each of the 2 most recent years and I have a reasonable expectation of reaching the same income level in the current year.

 

		 ̈	I hold, in good standing, 1 or more professional certifications or designations or credentials from an accredited educational institution
that the SEC has designated as qualifying an individual for accredited investor status and which the SEC has posted as qualifying. (For
this purpose, the SEC has posted the following qualifying professional certifications: holders in good standing of FINRA Series 7, Series
65, and Series 82 licenses.)

 

    Sch. A-3Exhibit 10.2

 

PROSOMNUS, INC.

 

2022 EQUITY INCENTIVE PLAN

 

	 	1.	DEFINITIONS.

 

Unless otherwise specified
or unless the context otherwise requires, the following terms, as used in this ProSomnus, Inc. 2022 Equity Incentive Plan, have the
following meanings:

 

Administrator means the Board of Directors,
unless it has delegated power to act on its behalf to the Committee, in which case the term “Administrator” means the Committee.

 

Affiliate means a corporation or other
entity, which, for purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.

 

Agreement means a written or electronic
document setting forth the terms of a Stock Right delivered pursuant to the Plan, in such form as the Administrator shall approve.

 

Board of Directors means
the Board of Directors of the Company.

 

Business Combination Agreement means
that certain Business Combination Agreement, dated as of May 9, 2022 by and among Lakeshore Acquisition I Corp., LAAA Merger Sub
Inc., RedOne Investment Limited, HGP II, LLC and ProSomnus Holdings Inc.

 

Cause means, with respect to a Participant
(a) dishonesty with respect to the Company or any Affiliate, (b) insubordination, substantial malfeasance or non-feasance of
duty, (c) unauthorized disclosure of confidential information, (d) breach by a Participant of any provision of any employment,
consulting, advisory, nondisclosure, non-competition or similar agreement between the Participant and the Company or any Affiliate or
any material written policy of the Company or any Affiliate, and (e) conduct substantially prejudicial to the business of the Company
or any Affiliate; provided, however, that any provision in an agreement between a Participant and the Company or an Affiliate, which contains
a conflicting definition of Cause for termination and which is in effect at the time of such termination, shall supersede this definition
with respect to that Participant. The determination of the Administrator as to the existence of Cause will be conclusive on the Participant
and the Company.

 

Closing means the date on which the
transactions contemplated by the Business Combination Agreement are consummated.

 

Code means the United States Internal
Revenue Code of 1986, as amended including any successor statute, regulation and guidance thereto.

 

Committee means the committee of the
Board of Directors, if any, to which the Board of Directors has delegated power to act under or pursuant to the provisions of the Plan.

 

Common Stock means shares of the Company’s
common stock, $0.0001 par value per share.

 

Company means ProSomnus, Inc.,
a Delaware corporation.

 

Consultant means any natural person who is an advisor or
consultant who provides bona fide services to the Company or its Affiliates, provided that such services are not in connection with the
offer or sale of securities in a capital raising transaction, and do not directly or indirectly promote or maintain a market for the Company’s
or its Affiliates’ securities.

 

Corporate Transaction means a merger,
consolidation, or sale of all or substantially all of the Company’s assets or the acquisition of all of the outstanding voting stock
of the Company (or similar transaction) in a single transaction or a series of related transactions by a single entity, other than a transaction
to merely change the state of incorporation or in which the Company is the surviving corporation. Where a Corporate Transaction involves
a tender offer that is reasonably expected to be followed by a merger (as determined by the Administrator), the Corporate Transaction
will be deemed to have occurred upon consummation of the tender offer.

 

     

     

    

 

Disability or Disabled means
permanent and total disability as defined in Section 22(e)(3) of the Code.

 

Employee means any employee of the
Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or director of the Company or
of an Affiliate), designated by the Administrator to be eligible to be granted one or more Stock Rights under the Plan.

 

Exchange Act means
the United States Securities Exchange Act of 1934, as amended.

 

Fair Market Value of
a Share of Common Stock means:

 

If the Common Stock is listed on a national securities
exchange or traded in the over-the-counter market and sales prices are regularly reported for the Common Stock, the closing or, if not
applicable, the last price of the Common Stock on the composite tape or other comparable reporting system for the trading day on the applicable
date and if such applicable date is not a trading day, the last market trading day prior to such date;

 

If the Common Stock is not traded on a national
securities exchange but is traded on the over-the-counter market, if sales prices are not regularly reported for the Common Stock for
the trading day referred to in clause (1), and if bid and asked prices for the Common Stock are regularly reported, the mean between
the bid and the asked price for the Common Stock at the close of trading in the over-the-counter market for the most recent trading day
on which Common Stock was traded on the applicable date and if such applicable date is not a trading day, the last market trading day
prior to such date; and

 

If the Common Stock is neither listed on a national
securities exchange nor traded in the over-the-counter market, such value as the Administrator, in good faith, shall determine in compliance
with applicable laws.

 

ISO means a stock option intended
to qualify as an incentive stock option under Section 422.

 

Non-Qualified Option means
a stock option which is not intended to qualify as an ISO.

 

Option means an ISO or Non-Qualified
Option granted under the Plan.

 

Participant means an Employee, director
or Consultant of the Company or an Affiliate to whom one or more Stock Rights are granted under the Plan. As used herein, “Participant”
shall include “Participant’s Survivors” where the context requires.

 

Performance-Based Award means a Stock
Grant or Stock-Based Award which vests based on the attainment of written Performance Goals as set forth in Paragraph 9 hereof.

 

Performance Goals means performance
goals determined by the Committee in its sole discretion and set forth in an Agreement. The satisfaction of Performance Goals shall be
subject to certification by the Committee. The Committee has the authority to take appropriate action with respect to the Performance
Goals (including, without limitation, making adjustments to the Performance Goals or determining the satisfaction of the Performance Goals
in connection with a Corporate Transaction) provided that any such action does not otherwise violate the terms of the Plan.

 

Plan means
this ProSomnus, Inc. 2022 Equity Incentive Plan.

 

SAR means
a stock appreciation right.

 

Section 409A means
Section 409A of the Code.

 

Section 422 means
Section 422 of the Code.

 

Securities Act means
the United States Securities Act of 1933, as amended.

 

     

     

    

 

Shares means shares of the Common
Stock as to which Stock Rights have been or may be granted under the Plan or any shares of capital stock into which the Shares are changed
or for which they are exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued under the Plan may be authorized
and unissued shares or shares held by the Company in its treasury, or both.

 

Stock-Based Award means a grant by
the Company under the Plan of an equity award or an equity based award, which is not an Option, or a Stock Grant.

 

Stock Grant means
a grant by the Company of Shares under the Plan.

 

Stock Right means an ISO, a Non-Qualified
Option, a Stock Grant or a Stock-Based Award or a right to Shares or the value of Shares of the Company granted pursuant to the Plan.

 

Substitute Award means an award issued
under the Plan in substitution for one or more equity awards of an acquired company that are converted, replaced or adjusted in connection
with the acquisition.

 

Survivor means a deceased Participant’s
legal representatives and/or any person or persons who acquired the Participant’s rights to a Stock Right by will or by the laws
of descent and distribution.

 

	 	2.	PURPOSES OF THE PLAN.

 

The Plan is intended to encourage
ownership of Shares by Employees and directors of and certain Consultants to the Company and its Affiliates in order to attract and retain
such people, to induce them to work for the benefit of the Company or of an Affiliate and to provide additional incentive for them to
promote the success of the Company or of an Affiliate. The Plan provides for the granting of ISOs, Non-Qualified Options, Stock Grants
and Stock-Based Awards.

 

	 	3.	SHARES SUBJECT TO THE PLAN.

 

(a)            The
number of Shares that may be issued from time to time pursuant to this Plan shall be equal to the sum of (i) fifteen percent (15%)
of the outstanding shares of Common Stock issued and outstanding immediately after the Closing (giving effect to the Redemption (as defined
in the Business Combination Agreement)), (ii) that number of shares remaining available for issuance under the Company Equity Plan
(as defined in the Business Combination Agreement), determined immediately prior to the Closing, divided by the Redemption Price (as defined
in the Business Combination Agreement), such number not to exceed 321,496 shares divided by the Redemption Price, and (iii) that
number of shares attributable to awards granted under the Company Equity Plan that are forfeited, expire or are cancelled without delivery
of shares of Common Stock or which result in the forfeiture of shares of Common Stock back to the Company on or after the Closing, which
number shall not exceed 2,411,283.

 

(b)            Notwithstanding
Subparagraph (a) above, on the first day of each fiscal year of the Company during the period beginning in fiscal year 2023 and ending
on the second day of fiscal year 2032, the number of Shares that may be issued from time to time pursuant to the Plan, shall be increased
automatically by an amount equal to the lesser of (i) 4% of the number of outstanding shares of Common Stock on such date and (ii) an
amount determined by the Administrator.

 

(c)            If
an Option ceases to be “outstanding”, in whole or in part (other than by exercise), or if the Company shall reacquire (at
not more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock Right expires
or is forfeited, cancelled, or otherwise terminated or results in any Shares not being issued, the unissued or reacquired Shares which
were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan; provided, however, that
the number of Shares underlying any awards under the Plan that are retained or repurchased on the exercise of an Option or the vesting
or issuance of any Stock Right to cover the exercise price and/or tax withholding required by the Company in connection with vesting shall
not be added back to the Shares available for issuance under the Plan; and provided, further that, in the case of ISOs, the foregoing
provisions shall be subject to any limitations under the Code. In addition, any Shares repurchased using exercise price proceeds will
not be available for issuance under the Plan.

 

     

     

    

 

(d)            The
maximum number of Shares available for grant under the Plan as ISOs will be equal to 250,000,000. The limits set forth in this Paragraph
3 will be construed to comply with the applicable requirements of Section 422.

 

(e)            The
Administrator may grant Substitute Awards under the Plan. To the extent consistent with the requirements of Section 422 and the regulations
thereunder and other applicable legal requirements (including applicable stock exchange requirements), Shares issued in respect of Substitute
Awards will be in addition to and will not reduce the shares available under the Plan. Notwithstanding the foregoing, if any Substitute
Award is settled in cash or expires, becomes unexercisable, terminates or is forfeited to or repurchased by the Company without the issuance
or retention of Shares, the Shares previously subject to such award will not be available for future issuance under the Plan. The Administrator
will determine the extent to which the terms and conditions of the Plan apply to Substitute Awards, if at all; provided, however, that
Substitute Awards will not be subject to the limits described in Paragraph 4(c) below.

 

	 	4.	ADMINISTRATION OF THE PLAN.

 

The Administrator of the Plan
will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee, in which case the
Committee shall be the Administrator. Subject to the provisions of the Plan, the Administrator is authorized to:

 

(a)           Interpret
the provisions of the Plan and all Stock Rights and to make all rules and determinations which it deems necessary or advisable for
the administration of the Plan;

 

(b)           Determine
which Employees, directors and Consultants shall be granted Stock Rights;

 

(c)           Determine
the number of Shares for which a Stock Right or Stock Rights shall be granted; provided, however, that in no event shall the aggregate
grant date fair value (determined in accordance with ASC 718) of Stock Rights to be granted and any other cash compensation paid to any
non-employee director in any calendar year, exceed $750,000, increased to $1,000,000 in the year in which such non-employee director initially
joins the Board of Directors.

 

(d)           Specify
the terms and conditions upon which a Stock Right or Stock Rights may be granted provided that no dividends or dividend equivalents shall
be paid on any Stock Right prior to the vesting of the underlying Shares.

 

(e)           Amend
any term or condition of any outstanding Stock Right, provided that (i) such term or condition as amended is not prohibited by the
Plan and (ii) any such amendment shall not impair the rights of a Participant under any Stock Right previously granted without such
Participant’s consent or in the event of death of the Participant the Participant’s Survivors.

 

(f)            Determine
and make any adjustments in the Performance Goals included in any Performance-Based Awards; and

 

(g)           Adopt
any sub-plans applicable to residents of any specified jurisdiction as it deems necessary or appropriate in order to comply with or take
advantage of any tax or other laws applicable to the Company, any Affiliate or to Participants or to otherwise facilitate the administration
of the Plan, which sub-plans may include additional restrictions or conditions applicable to Stock Rights or Shares issuable pursuant
to a Stock Right;

 

Subject to the foregoing, the interpretation and
construction by the Administrator of any provisions of the Plan or of any Stock Right granted under it shall be final, unless otherwise
determined by the Board of Directors, if the Administrator is the Committee. In addition, if the Administrator is the Committee, the Board
of Directors may take any action under the Plan that would otherwise be the responsibility of the Committee.

 

To the extent permitted under
applicable law, the Board of Directors or the Committee may allocate all or any portion of its responsibilities and powers to any one
or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected by it. The
Board of Directors or the Committee may revoke any such allocation or delegation at any time. Notwithstanding the foregoing, only the
Board of Directors or the Committee shall be authorized to grant a Stock Right to any director of the Company or to any “officer”
of the Company as defined by Rule 16a-1 under the Exchange Act.

 

     

     

    

 

	 	5.	ELIGIBILITY FOR PARTICIPATION.

 

The Administrator will, in
its sole discretion, name the Participants in the Plan; provided, however, that each Participant must be an Employee, director or Consultant
of the Company or of an Affiliate at the time a Stock Right is granted. Notwithstanding the foregoing, the Administrator may authorize
the grant of a Stock Right to a person in anticipation of such person becoming an Employee, director or Consultant of the Company or of
an Affiliate, provided, that the actual grant of such Stock Right shall be conditioned upon such person becoming eligible to become a
Participant at or prior to the time of the execution of the Agreement evidencing such Stock Right. ISOs may be granted only to Employees.
Non-Qualified Options, Stock Grants and Stock-Based Awards may be granted to any Employee, director or Consultant of the Company or an
Affiliate. The granting of any Stock Right to any individual shall neither entitle that individual to, nor disqualify that individual
from, participation in any other grant of Stock Rights or any grant under any other benefit plan established by the Company or any Affiliate
for Employees, directors or Consultants.

 

	 	6.	TERMS AND CONDITIONS OF OPTIONS.

 

Each Option shall be set forth
in an Option Agreement duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant.
The Administrator may provide that Options be granted subject to such terms and conditions, consistent with the terms and conditions specifically
required under this Plan, as the Administrator may deem appropriate including, without limitation, subsequent approval by the shareholders
of the Company of this Plan or any amendments thereto. The Option Agreements shall be subject to at least the following terms and conditions:

 

(a)            Non-Qualified
Options: Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator determines
to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such Non-Qualified Option:

 

(i)            Exercise
Price: Each Option Agreement shall state the exercise price (per share) of the Shares covered by each Option which exercise price
shall be determined by the Administrator and shall be at least equal to the Fair Market Value per share of the Common Stock on the date
of grant of the Option.

 

(ii)            Number
of Shares: Each Option Agreement shall state the number of Shares to which it pertains.

 

(iii)            Vesting:
Each Option Agreement shall state the date or dates on which it first is exercisable and the date after which it may no longer be exercised,
and may provide that the Option rights accrue or become exercisable in installments over a period of months or years, or upon the occurrence
of certain performance conditions or the attainment of stated goals or events.

 

(iv)            Term
of Option: Each Option shall terminate not more than ten years from the date of the grant or at such earlier time as the Option Agreement
may provide.

 

(b)            ISOs:
Each Option intended to be an ISO shall be issued only to an Employee who is deemed to be a resident of the United States for tax purposes,
and shall be subject to the following terms and conditions, with such additional restrictions or changes as the Administrator determines
are appropriate but not in conflict with Section 422 and relevant regulations and rulings of the Internal Revenue Service:

 

(i)            Minimum
Standards: The ISO shall meet the minimum standards required of Non-Qualified Options, as described in Paragraph 6(a) above,
except clause (i) and (iv) thereunder.

 

(ii)            Exercise
Price: Immediately before the ISO is granted, if the Participant owns, directly or by reason of the applicable attribution rules in
Section 424(d) of the Code:

 

     

     

    

 

	 	A.	10% or less of the total combined voting power of all classes of stock of the Company or an Affiliate, the exercise price per share of the Shares covered by each ISO shall not be less than 100% of the Fair Market Value per share of the Common Stock on the date of grant of the Option; or

 

	 	B.	More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, the exercise price per share of the Shares covered by each ISO shall not be less than 110% of the Fair Market Value per share of the Common Stock on the date of grant of the Option.

 

	 	(iii)	Term of Option: For Participants who own:

 

	 	A.	10% or less of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not more than ten years from the date of the grant or at such earlier time as the Option Agreement may provide; or

 

	 	B.	More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not more than five years from the date of the grant or at such earlier time as the Option Agreement may provide.

 

	 	(iv)	Limitation on Yearly Exercise: To the extent that aggregate Fair Market Value (determined on the date each ISO is granted) of the Shares with respect to which ISOs are exercisable for the first time by the Participant in any calendar year exceeds $100,000, such Options shall be treated as Non-Qualified Options even if denominated ISOs at grant.

 

(c)            Except
in connection with a corporate transaction involving the Company (which term includes, without limitation, any stock dividend, stock split,
extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares)
or as otherwise contemplated by Paragraph 24 below, the Company may not, without obtaining stockholder approval, (i) amend the terms
of outstanding Options to reduce the exercise price of such Options, (ii) cancel outstanding Options in exchange for Options that
have an exercise price that is less than the exercise price value of the original Options, or (iii) cancel outstanding Options that
have an exercise price greater than the Fair Market Value of a Share on the date of such cancellation in exchange for cash or other consideration.

 

	 	7.	TERMS AND CONDITIONS OF STOCK GRANTS.

 

Each Stock Grant to a Participant
shall state the principal terms in an Agreement duly executed by the Company and, to the extent required by law or requested by the Company,
by the Participant. The Agreement shall be in a form approved by the Administrator and shall contain terms and conditions which the Administrator
determines to be appropriate and in the best interest of the Company, subject to the following minimum standards:

 

(a)            Each
Agreement shall state the purchase price per Share, if any, of the Shares covered by each Stock Grant, which purchase price shall be determined
by the Administrator on the date of the grant of the Stock Grant;

 

(b)            Each
Agreement shall state the number of Shares to which the Stock Grant pertains;

 

(c)            Each
Agreement shall include the terms of any right of the Company to restrict or reacquire the Shares subject to the Stock Grant, including
the time period or attainment of Performance Goals or such other performance criteria upon which such rights shall accrue and the purchase
price therefor, if any; and

 

(d)            Dividends
(other than stock dividends to be issued pursuant to Paragraph 24 of the Plan) may accrue but shall not be paid prior to the time, and
may be paid only to the extent that, the restrictions or rights to reacquire the Shares subject to the Stock Grant lapse. Any entitlement
to dividend equivalents or similar entitlements will be established and administered either consistent with an exemption from, or in compliance
with the applicable requirements of Section 409A.

 

     

     

    

 

	 	8.	TERMS AND CONDITIONS OF OTHER STOCK-BASED AWARDS.

 

The Administrator shall have
the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the Administrator may determine,
including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible into Shares and
the grant of SARs, phantom stock awards or stock units. The principal terms of each Stock-Based Award shall be set forth in an Agreement,
duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant. The Agreement shall be
in a form approved by the Administrator and shall contain terms and conditions which the Administrator determines to be appropriate and
in the best interest of the Company. Each Agreement shall include the terms of any right of the Company including the right to terminate
the Stock-Based Award without the issuance of Shares, the terms of any vesting conditions, Performance Goals or events upon which Shares
shall be issued, provided that dividends (other than stock dividends to be issued pursuant to Paragraph 24 of the Plan) or dividend equivalents
may accrue but shall not be paid prior to and may be paid only to the extent that the Shares subject to the Stock-Based Award vest. Under
no circumstances may the Agreement covering SARs (a) have an exercise or base price (per share) that is less than the Fair Market
Value per share of Common Stock on the date of grant or (b) expire more than ten years following the date of grant.

 

	 	9.	PERFORMANCE-BASED AWARDS.

 

The Committee shall determine
whether, with respect to a performance period, the applicable Performance Goals have been met with respect to a given Participant and,
if they have, to so certify and ascertain the amount of the applicable Performance-Based Award. No Performance-Based Awards will be issued
for such performance period until such certification is made by the Committee. The number of Shares issued in respect of a Performance-Based
Award determined by the Committee for a performance period shall be paid to the Participant at such time as determined by the Committee
in its sole discretion after the end of such performance period, and any dividends (other than stock dividends to be issued pursuant to
Paragraph 24 of the Plan) or dividend equivalents that accrue shall only be paid in respect of the number of Shares earned in respect
of such Performance-Based Award.

 

	 	10.	EXERCISE OF OPTIONS AND ISSUE OF SHARES.

 

An Option (or any part or
installment thereof) shall be exercised by giving written notice to the Company or its designee (in a form acceptable to the Administrator,
which may include electronic notice), together with provision for payment of the aggregate exercise price in accordance with this Paragraph
for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set forth in the Option
Agreement. Such notice shall be signed by the person exercising the Option (which signature may be provided electronically in a form acceptable
to the Administrator), shall state the number of Shares with respect to which the Option is being exercised and shall contain any representation
required by the Plan or the Option Agreement. Payment of the exercise price for the Shares as to which such Option is being exercised
shall be made (a) in United States dollars in cash or by check; or (b) at the discretion of the Administrator, through delivery
of shares of Common Stock held for at least six months (if required to avoid negative accounting treatment) having a Fair Market Value
equal as of the date of the exercise to the aggregate cash exercise price for the number of Shares as to which the Option is being exercised;
or (c) at the discretion of the Administrator, by having the Company retain from the Shares otherwise issuable upon exercise of the
Option, a number of Shares having a Fair Market Value equal as of the date of exercise to the aggregate exercise price for the number
of Shares as to which the Option is being exercised; or (d) at the discretion of the Administrator, in accordance with a cashless
exercise program established with a securities brokerage firm, and approved by the Administrator; or (e) at the discretion of the
Administrator, by any combination of (a), (b), (c) and (d) above or (f) at the discretion of the Administrator, by payment
of such other lawful consideration as the Administrator may determine. Notwithstanding the foregoing, the Administrator shall accept only
such payment on exercise of an ISO as is permitted by Section 422.

 

The Company shall then reasonably
promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s Survivors, as the
case may be). In determining what constitutes “reasonably promptly,” it is expressly understood that the issuance and delivery
of the Shares may be delayed by the Company if the Administrator determines it is necessary to comply with any law or regulation (including,
without limitation, federal securities laws) that requires the Company to take any action with respect to the Shares prior to their issuance.
The Shares shall, upon delivery, be fully paid, non-assessable Shares.

 

     

     

    

 

	 	11.	PAYMENT IN CONNECTION WITH THE ISSUANCE OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

 

Any Stock Grant or Stock-Based
Award requiring payment of a purchase price for the Shares as to which such Stock Grant or Stock-Based Award is being granted shall be
made (a) in United States dollars in cash or by check; or (b) at the discretion of the Administrator, through delivery of shares
of Common Stock held for at least six months (if required to avoid negative accounting treatment) and having a Fair Market Value equal
as of the date of payment to the purchase price of the Stock Grant or Stock-Based Award; or (c) by delivery of a promissory note,
if the Board of Directors has expressly authorized the loan of funds to the Participant for the purpose of enabling or assisting the Participant
to effect such purchase; (d) at the discretion of the Administrator, by any combination of (a) through (c) above; or (e) at
the discretion of the Administrator, by payment of such other lawful consideration as the Administrator may determine.

 

The Company shall when required
by the applicable Agreement, reasonably promptly deliver the Shares as to which such Stock Grant or Stock-Based Award was made to the
Participant (or to the Participant’s Survivors, as the case may be), subject to any escrow provision set forth in the applicable
Agreement. In determining what constitutes “reasonably promptly,” it is expressly understood that the issuance and delivery
of the Shares may be delayed by the Company if the Administrator determines it is necessary to comply with any law or regulation (including,
without limitation, federal securities laws) which requires the Company to take any action with respect to the Shares prior to their issuance.

 

	 	12.	RIGHTS AS A SHAREHOLDER.

 

No Participant to whom a Stock
Right has been granted shall have rights as a shareholder with respect to any Shares covered by such Stock Right except after due exercise
of an Option or issuance of Shares as set forth in any Agreement, tender of the aggregate exercise or purchase price, if any, for the
Shares being purchased and registration of the Shares in the Company’s share register in the name of the Participant.

 

	 	13.	ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS.

 

By its terms, a Stock Right
granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of descent and distribution,
or (ii) as approved by the Administrator in its discretion and set forth in the applicable Agreement provided that no Stock Right
may be transferred by a Participant for value. Notwithstanding the foregoing, an ISO transferred except in compliance with clause (i) above
shall no longer qualify as an ISO. The designation of a beneficiary of a Stock Right by a Participant, with the prior approval of the
Administrator and in such form as the Administrator shall prescribe, shall not be deemed a transfer prohibited by this Paragraph. Except
as provided above during the Participant’s lifetime a Stock Right shall only be exercisable by or issued to such Participant (or
his or her legal representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise)
and shall not be subject to execution, attachment or similar process. Any attempted transfer, assignment, pledge, hypothecation or other
disposition of any Stock Right or of any rights granted thereunder contrary to the provisions of this Plan, or the levy of any attachment
or similar process upon a Stock Right, shall be null and void.

 

	 	14.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE OR DEATH OR DISABILITY.

 

Except as otherwise provided
in a Participant’s Option Agreement in the event of a termination of service (whether as an Employee, director or Consultant) with
the Company or an Affiliate before the Participant has exercised an Option, the following rules apply:

 

(a)            A
Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate (for any reason other than termination
for Cause, Disability, or death for which events there are special rules in Paragraphs 15, 16, and 17, respectively), may exercise
any Option granted to such Participant to the extent that the Option is exercisable on the date of such termination of service, but only
within such term as the Administrator has designated in a Participant’s Option Agreement.

 

     

     

    

 

(b)            Except
as provided in Subparagraph (c) below, or Paragraph 16 or 17, in no event may an Option intended to be an ISO, be exercised later
than three months after the Participant’s termination of employment.

 

(c)            The
provisions of this Paragraph, and not the provisions of Paragraph 16 or 17, shall apply to a Participant who subsequently becomes Disabled
or dies after the termination of employment, director status or consultancy; provided, however, in the case of a Participant’s Disability
or death within three months after the termination of employment, director status or consultancy, the Participant or the Participant’s
Survivors may exercise the Option within one year after the date of the Participant’s termination of service, but in no event after
the date of expiration of the term of the Option.

 

(d)            Notwithstanding
anything herein to the contrary, if subsequent to a Participant’s termination of employment, termination of director status or termination
of consultancy, but prior to the exercise of an Option, the Administrator determines that, either prior or subsequent to the Participant’s
termination, the Participant engaged in conduct which would constitute Cause, then such Participant shall forthwith cease to have any
right to exercise any Option.

 

(e)            A
Participant to whom an Option has been granted under the Plan who is absent from the Company or an Affiliate because of temporary disability
(any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during
the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant’s employment, director
status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide; provided,
however, that, for ISOs, any leave of absence granted by the Administrator of greater than three months, unless pursuant to a contract
or statute that guarantees the right to reemployment, shall cause such ISO to become a Non-Qualified Option on the date that is six months
following the commencement of such leave of absence.

 

(f)            Except
as required by law or as set forth in a Participant’s Option Agreement, Options granted under the Plan shall not be affected by
any change of a Participant’s status within or among the Company and any Affiliates, so long as the Participant continues to be
an Employee, director or Consultant of the Company or any Affiliate.

 

	 	15.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR CAUSE.

 

Except as otherwise provided
in a Participant’s Option Agreement, the following rules apply if the Participant’s service (whether as an Employee,
director or Consultant) with the Company or an Affiliate is terminated for Cause prior to the time that all his or her outstanding Options
have been exercised:

 

(a)            All
outstanding and unexercised Options as of the time the Participant is notified his or her service is terminated for Cause will immediately
be forfeited.

 

(b)            Cause
is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the Administrator’s
finding of Cause occur prior to termination. If the Administrator determines, subsequent to a Participant’s termination of service
but prior to the exercise of an Option, that either prior or subsequent to the Participant’s termination the Participant engaged
in conduct which would constitute Cause, then the right to exercise any Option is forfeited.

 

	 	16.	EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as otherwise provided
in a Participant’s Option Agreement:

 

(a)            A
Participant who ceases to be an Employee, director or Consultant of the Company or of an Affiliate by reason of Disability may exercise
any Option granted to such Participant to the extent that the Option has become exercisable but has not been exercised on the date of
the Participant’s termination of service due to Disability; and in the event rights to exercise the Option accrue periodically,
to the extent of a pro rata portion through the date of the Participant’s termination of service due to Disability of any additional
vesting rights that would have accrued on the next vesting date had the Participant not become Disabled. The proration shall be based
upon the number of days accrued in the current vesting period prior to the date of the Participant’s termination of service due
to Disability.

 

     

     

    

 

(b)            A
Disabled Participant may exercise the Option only within the period ending one year after the date of the Participant’s termination
of service due to Disability, notwithstanding that the Participant might have been able to exercise the Option as to some or all of the
Shares on a later date if the Participant had not been terminated due to Disability and had continued to be an Employee, director or Consultant
or, if earlier, within the originally prescribed term of the Option.

 

(c)            The
Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure
for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall
be used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator,
the cost of which examination shall be paid for by the Company.

 

	 	17.	EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as otherwise provided
in a Participant’s Option Agreement:

 

(a)            In
the event of the death of a Participant while the Participant is an Employee, director or Consultant of the Company or of an Affiliate,
such Option may be exercised by the Participant’s Survivors to the extent that the Option has become exercisable but has not been
exercised on the date of death; and in the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion
through the date of death of any additional vesting rights that would have accrued on the next vesting date had the Participant not died.
The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant’s date of death.

 

(b)            If
the Participant’s Survivors wish to exercise the Option, they must take all necessary steps to exercise the Option within one year
after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option as to some
or all of the Shares on a later date if he or she had not died and had continued to be an Employee, director or Consultant or, if earlier,
within the originally prescribed term of the Option.

 

	 	18.	EFFECT OF TERMINATION OF SERVICE ON UNACCEPTED STOCK GRANTS AND STOCK-BASED AWARDS.

 

In the event of a termination
of service (whether as an Employee, director or Consultant) with the Company or an Affiliate for any reason before the Participant has
accepted a Stock Grant or a Stock-Based Award and paid the purchase price, if required, such grant shall terminate.

 

For purposes of this Paragraph
18 and Paragraph 19 below, a Participant to whom a Stock Grant or a Stock-Based Award has been issued under the Plan who is absent from
work with the Company or with an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph
1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of such
absence alone, to have terminated such Participant’s employment, director status or consultancy with the Company or with an Affiliate,
except as the Administrator may otherwise expressly provide.

 

In addition, for purposes
of this Paragraph 18 and Paragraph 19 below, any change of employment or other service within or among the Company and any Affiliates
shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be an Employee,
director or Consultant of the Company or any Affiliate.

 

     

     

    

 

	 	19.	EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE OTHER THAN FOR CAUSE, DEATH OR DISABILITY.

 

Except as otherwise provided
in a Participant’s Agreement, in the event of a termination of service for any reason (whether as an Employee, director or Consultant),
other than termination for Cause, death or Disability for which there are special rules in Paragraphs 20, 21, and 22 below, before
all forfeiture provisions or Company rights of repurchase shall have lapsed, then the Company shall have the right to cancel or repurchase
that number of Shares subject to a Stock Grant or Stock-Based Award as to which the Company’s forfeiture or repurchase rights have
not lapsed.

 

	 	20.	EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE FOR CAUSE.

 

Except as otherwise provided
in a Participant’s Agreement, the following rules apply if the Participant’s service (whether as an Employee, director
or Consultant) with the Company or an Affiliate is terminated for Cause:

 

(a)            All
Shares subject to any Stock Grant or Stock-Based Award that remain subject to forfeiture provisions or as to which the Company shall have
a repurchase right shall be immediately forfeited to the Company as of the time the Participant is notified his or her service is terminated
for Cause.

 

(b)            Cause
is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the Administrator’s
finding of Cause occur prior to termination. If the Administrator determines, subsequent to a Participant’s termination of service,
that either prior or subsequent to the Participant’s termination the Participant engaged in conduct which would constitute Cause,
then all Shares subject to any Stock Grant or Stock-Based Award that remained subject to forfeiture provisions or as to which the Company
had a repurchase right on the date of termination shall be immediately forfeited to the Company.

 

	 	21.	EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as otherwise provided
in a Participant’s Agreement, the following rules apply if a Participant ceases to be an Employee, director or Consultant of
the Company or of an Affiliate by reason of Disability: to the extent the forfeiture provisions or the Company’s rights of repurchase
have not lapsed on the date of Disability, they shall be exercisable; provided, however, that in the event such forfeiture provisions
or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject
to such Stock Grant or Stock-Based Award through the date of Disability as would have lapsed had the Participant not become Disabled.
The proration shall be based upon the number of days accrued prior to the date of Disability.

 

The Administrator shall make
the determination both as to whether Disability has occurred and the date of its occurrence (unless a procedure for such determination
is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination).
If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination
shall be paid for by the Company.

 

	 	22.	EFFECT ON STOCK GRANTS AND STOCK-BASED AWARDS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

 

Except as otherwise provided
in a Participant’s Agreement, the following rules apply in the event of the death of a Participant while the Participant is
an Employee, director or Consultant of the Company or of an Affiliate:

 

(a)       To
the extent the forfeiture provisions or the Company’s rights of repurchase have not lapsed on the date of death, they shall be exercisable;
provided, however, that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights
shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant or Stock-Based Award through the date of death
as would have lapsed had the Participant not died. The proration shall be based upon the number of days accrued prior to the Participant’s
date of death.

 

(b)        At
the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued in compliance
with the Securities Act without registration thereunder.

 

     

     

    

 

	 	23.	DISSOLUTION OR LIQUIDATION OF THE COMPANY.

 

Upon the dissolution or liquidation
of the Company, all Options granted under this Plan which as of such date shall not have been exercised and all Stock Grants and Stock-Based
Awards which have not been accepted, to the extent required under the applicable Agreement, will terminate and become null and void; provided,
however, that if the rights of a Participant or a Participant’s Survivors have not otherwise terminated and expired, the Participant
or the Participant’s Survivors will have the right immediately prior to such dissolution or liquidation to exercise or accept any
Stock Right to the extent that the Stock Right is exercisable or subject to acceptance as of the date immediately prior to such dissolution
or liquidation. Upon the dissolution or liquidation of the Company, any outstanding Stock-Based Awards shall immediately terminate unless
otherwise determined by the Administrator or specifically provided in the applicable Agreement.

 

	 	24.	ADJUSTMENTS.

 

Upon the occurrence of any
of the following events, a Participant’s rights with respect to any Stock Right granted to such Participant hereunder shall be adjusted
as hereinafter provided, unless otherwise specifically provided in a Participant’s Agreement.

 

(a)            Changes
with respect to Shares of Common Stock.

 

(i)            If
(1) the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall
issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, or (2) additional shares or new or different
shares or other securities of the Company or other non-cash assets are distributed with respect to such shares of Common Stock, each Stock
Right and the number of shares of Common Stock deliverable thereunder shall be appropriately increased or decreased proportionately, and
appropriate adjustments shall be made including, in the exercise, base or purchase price per share and in the Performance Goals applicable
to outstanding Performance-Based Awards to reflect such events. The number of Shares subject to the limitations in Paragraphs 3(a), 3(b),
3(d) and 4(c) shall also be proportionately adjusted upon the occurrence of such events.

 

(ii)            The
Administrator may also make adjustments of the type described in Paragraph 24(a) above to take into account distributions to stockholders
other than those provided for in Paragraphs 24(b) below, or any other event, if the Administrator determines that adjustments are
appropriate to avoid distortion in the operation of the Plan or any award, having due regard for the qualification of ISOs under Section 422,
the requirements of Section 409A, to the extent applicable.

 

(ii)            References
in the Plan to Shares will be construed to include any stock or securities resulting from an adjustment pursuant to this Paragraph 24(a).

 

(b)            Corporate
Transactions. If the Company is to be consolidated with or acquired by another entity in a Corporate Transaction, the Administrator
or the board of directors of any entity assuming the obligations of the Company hereunder (the “Successor Board”), may, as
to outstanding Options, take any of the following actions: (i) make appropriate provision for the continuation of such Options by
substituting on an equitable basis for the Shares then subject to such Options either the consideration payable with respect to the
outstanding shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity; or
(ii) upon written notice to the Participants, provide that such Options must be exercised (either (A) to the extent then exercisable
or (B) at the discretion of the Administrator, any such Options being made partially or fully exercisable for purposes of this Subparagraph),
within a specified number of days of the date of such notice, at the end of which period such Options which have not been exercised shall
terminate; or (iii) terminate such Options in exchange for payment of an amount equal to the consideration payable upon consummation
of such Corporate Transaction to a holder of the number of shares of Common Stock into which such Option would have been exercisable (either
(A) to the extent then exercisable or, (B) at the discretion of the Administrator, any such Options being made partially or
fully exercisable for purposes of this Subparagraph) less the aggregate exercise price thereof. For purposes of determining
the payments to be made pursuant to Subclause (iii) above, in the case of a Corporate Transaction the consideration for which, in
whole or in part, is other than cash, the consideration other than cash shall be valued at the fair value thereof as determined in good
faith by the Board of Directors. For the avoidance of doubt, if the per share exercise price of an Option or portion thereof is equal
to or greater than the Fair Market Value of one Share of Common Stock, such Option may be cancelled with no payment due hereunder or otherwise
in respect thereof.

 

     

     

    

 

With respect to outstanding
Stock Grants or Stock-Based Awards, the Administrator or the Successor Board, shall make appropriate provision for the continuation of
such Stock Grants or Stock-Based Awards on the same terms and conditions by substituting on an equitable basis for the Shares then subject
to such Stock Grants or Stock-Based Awards either the consideration payable with respect to the outstanding Shares of Common Stock in
connection with the Corporate Transaction or securities of any successor or acquiring entity. In lieu of the foregoing, in connection
with any Corporate Transaction, the Administrator may provide that each outstanding Stock Grant or Stock-Based Award shall be terminated
in exchange for payment of an amount equal to the consideration payable upon consummation of such Corporate Transaction to a holder of
the number of shares of Common Stock comprising such Stock Grant or Stock-Based Award (to the extent such Stock Grant or Stock-Based Award
is no longer subject to any forfeiture or repurchase rights then in effect or, at the discretion of the Administrator, all forfeiture
and repurchase rights being waived). For the avoidance of doubt, if the purchase or base price of a Stock Grant or Stock-Based Award or
portion thereof is equal to or greater than the Fair Market Value of one Share of Common Stock, such Stock Grant or Stock-Based Award,
as applicable, may be cancelled with no payment due hereunder or otherwise in respect thereof.

 

In taking any of the actions
permitted under this Paragraph 24(b), the Administrator shall not be obligated by the Plan to treat all Stock Rights, all Stock Rights
held by a Participant, or all Stock Rights of the same type, identically.

 

(c)            Recapitalization
or Reorganization. In the event of a recapitalization or reorganization of the Company other than a Corporate Transaction pursuant
to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock, a Participant
upon exercising an Option or accepting a Stock Grant after the recapitalization or reorganization shall be entitled to receive for the
price paid upon such exercise or acceptance if any, the number of replacement securities which would have been received if such Option
had been exercised or Stock Grant accepted prior to such recapitalization or reorganization.

 

(d)            Adjustments
to Stock-Based Awards. Upon the happening of any of the events described in Subparagraphs (a), (b) or (c) above, any outstanding
Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs. The Administrator or the Successor
Board shall determine the specific adjustments to be made under this Paragraph 24, including, but not limited to the effect of any, Corporate
Transaction and, subject to Paragraph 4, its determination shall be conclusive.

 

(e)            Termination
of Awards upon Consummation of a Corporate Transaction. Except as the Administrator may otherwise determine, each Stock Right will
automatically terminate (and in the case of outstanding Shares of restricted Common Stock, will automatically be forfeited) immediately
upon the consummation of a Corporate Transaction, other than (i) any award that is assumed, continued or substituted pursuant to
Paragraph 24(b) above, and (ii) any cash award that by its terms, or as a result of action taken by the Administrator, continues
following the consummation of the Corporate Transaction.

 

	 	25.	ISSUANCES OF SECURITIES.

 

(a)            Except
as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock
of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to
Stock Rights. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in property (including without
limitation, securities) of the Company prior to any issuance of Shares pursuant to a Stock Right.

 

(b)            The
Company will not be obligated to issue any Shares pursuant to the Plan or to remove any restriction from Shares previously issued under
the Plan until: (i) the Company is satisfied that all legal matters in connection with the issuance of such Shares have been addressed
and resolved; (ii) if the outstanding Shares is at the time of issuance listed on any stock exchange or national market system, the
Shares to be issued have been listed or authorized to be listed on such exchange or system upon official notice of issuance; and (iii) all
conditions of the award have been satisfied or waived. The Company may require, as a condition to the exercise of an award or the issuance
of Shares under an award, such representations or agreements as counsel for the Company may consider appropriate to avoid violation of
the Securities Act of 1933, as amended, or any applicable state or non-U.S. securities law. Any Shares issued under the Plan will be evidenced
in such manner as the Administrator determines appropriate, including book-entry registration or delivery of stock certificates. In the
event that the Administrator determines that stock certificates will be issued in connection with Shares issued under the Plan, the Administrator
may require that such certificates bear an appropriate legend reflecting any restriction on transfer applicable to such Stock, and the
Company may hold the certificates pending the lapse of the applicable restrictions.

 

     

     

    

 

	 	26.	FRACTIONAL SHARES.

 

No fractional shares shall
be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of such fractional shares
equal to the Fair Market Value thereof.

 

	 	27.	WITHHOLDING.

 

In the event that any federal,
state, or local income taxes, employment taxes, Federal Insurance Contributions Act withholdings or other amounts are required by applicable
law or governmental regulation to be withheld from the Participant’s salary, wages or other remuneration in connection with the
issuance of a Stock Right or Shares under the Plan or for any other reason required by law, the Company may withhold from the Participant’s
compensation, if any, or may require that the Participant advance in cash to the Company, or to any Affiliate of the Company which employs
or employed the Participant, the statutory minimum amount of such withholdings unless a different withholding arrangement, including the
use of shares of the Company’s Common Stock or a promissory note, is authorized by the Administrator (and permitted by law). For
purposes hereof, the fair market value of the shares withheld for purposes of payroll withholding shall be determined in the manner set
forth under the definition of Fair Market Value provided in Paragraph 1 above, as of the most recent practicable date. If the Fair Market
Value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance the
difference in cash to the Company or the Affiliate employer.

 

	 	28.	TERMINATION OF THE PLAN.

 

The Plan will terminate on
December 2, 2032, the date which is ten years from the earlier of the date of its adoption by the Board of Directors
and the date of its approval by the shareholders of the Company. The Plan may be terminated at an earlier date by vote of the shareholders
or the Board of Directors of the Company; provided, however, that any such earlier termination shall not affect any Agreements executed
prior to the effective date of such termination. Termination of the Plan shall not affect any Stock Rights theretofore granted.

 

	 	29.	AMENDMENT OF THE PLAN AND AGREEMENTS.

 

The Plan may be amended by
the shareholders of the Company. The Plan may also be amended by the Administrator; provided that any amendment approved by the Administrator
which the Administrator determines is of a scope that requires shareholder approval shall be subject to obtaining such shareholder approval
including, without limitation, to the extent necessary to qualify any or all outstanding Stock Rights granted under the Plan or Stock
Rights to be granted under the Plan for favorable federal income tax treatment as may be afforded ISOs under Section 422 and to the
extent necessary to qualify the Shares issuable under the Plan for listing on any national securities exchange or quotation in any national
automated quotation system of securities dealers. Any modification or amendment of the Plan shall not, without the consent of a Participant,
adversely affect his or her rights under a Stock Right previously granted to such Participant, unless such amendment is required by applicable
law or necessary to preserve the economic value of such Stock Right. With the consent of the Participant affected, the Administrator may
amend outstanding Agreements in a manner which may be adverse to the Participant but which is not inconsistent with the Plan. In the discretion
of the Administrator, outstanding Agreements may be amended by the Administrator in a manner which is not adverse to the Participant.
Nothing in this Paragraph 30 shall limit the Administrator’s authority to take any action permitted pursuant to Paragraph 24.

 

	 	30.	EMPLOYMENT OR OTHER RELATIONSHIP.

 

Nothing in this Plan or any
Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or director status of a
Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status or to give any Participant
a right to be retained in employment or other service by the Company or any Affiliate for any period of time.

 

     

     

    

 

	 	31.	SECTION 409A AND SECTION 422.

 

The Company intends that the
Plan and any awards granted hereunder be exempt from or comply with Section 409A, to the extent applicable. The Company intends that
ISOs comply with Section 422, to the extent applicable. Any ambiguities in the Plan or any award shall be construed to effect the
intent as described in this Paragraph 31.

 

If a Participant is a “specified
employee” as defined in Section 409A (and as applied according to procedures of the Company and its Affiliates) as of his or
her separation from service, to the extent any payment under this Plan or pursuant to an award constitutes non-exempt deferred compensation
under Section 409A that is being paid by reason of separation from service, no payments due under this Plan or pursuant to an award
may be made until the earlier of: (i) the first day of the seventh month following the Participant’s separation from service,
or (ii) the Participant’s date of death; provided, however, that any payments delayed during this six-month period shall be
paid in the aggregate in a lump sum, without interest, on the first day of the seventh month following the Participant’s separation
from service.

 

The Administrator shall administer
the Plan with a view toward ensuring that awards under the Plan that are subject to Section 409A or Section 422, as applicable,
comply with the requirements thereof and that Options under the Plan be exempt from the requirements of Section 409A or compliant
with Section 422, as applicable, but neither the Administrator nor any member of the Board of Directors, nor the Company nor any
of its Affiliates, nor any other person acting hereunder on behalf of the Company, the Administrator or the Board of Directors shall be
liable to a Participant or any Survivor by reason of the acceleration of any income, or the imposition of any additional tax or penalty,
with respect to any award, whether by reason of a failure to satisfy the requirements of Section 409A or Section 422 or otherwise.

 

	 	32.	INDEMNITY.

 

Neither the Board of Directors
nor the Administrator, nor any members of either, nor any employees of the Company or any parent, subsidiary, or other Affiliate, shall
be liable for any act, omission, interpretation, construction or determination made in good faith in connection with their responsibilities
with respect to this Plan, and the Company hereby agrees to indemnify the members of the Board or Directors, the members of the Committee,
and the employees of the Company and its parent or subsidiaries in respect of any claim, loss, damage, or expense (including reasonable
counsel fees) arising from any such act, omission, interpretation, construction or determination to the full extent permitted by law.

 

	 	33.	CLAWBACK.

 

Notwithstanding anything to
the contrary contained in this Plan, the Company may recover from a Participant any compensation received from any Stock Right (whether
or not settled) or cause a Participant to forfeit any Stock Right (whether or not vested) in the event that the Company’s Clawback
Policy as then in effect is triggered.

 

	 	34.	WAIVER OF JURY TRIAL.

 

By accepting or being deemed to have accepted an
award under the Plan, each Participant waives (or will be deemed to have waived), to the maximum extent permitted under applicable law,
any right to a trial by jury in any action, proceeding or counterclaim concerning any rights under the Plan or any award, or under any
amendment, waiver, consent, instrument, document or other agreement delivered or which in the future may be delivered in connection therewith,
and agrees (or will be deemed to have agreed) that any such action, proceedings or counterclaim will be tried before a court and not before
a jury. By accepting or being deemed to have accepted an award under the Plan, each Participant certifies that no officer, representative,
or attorney of the Company has represented, expressly or otherwise, that the Company would not, in the event of any action, proceeding
or counterclaim, seek to enforce the foregoing waivers. Notwithstanding anything to the contrary in the Plan, nothing herein is to be
construed as limiting the ability of the Company and a Participant to agree to submit any dispute arising under the terms of the Plan
or any ward to binding arbitration or as limiting the ability of the Company to require any individual to agree to submit such disputes
to binding arbitration as a condition of receiving an award hereunder.

 

	 	35.	UNFUNDED OBLIGATIONS.

 

The Company’s obligations under the Plan
are unfunded, and no Participant will have any right to specific assets of the Company in respect of any award under the Plan. Participants
will be general unsecured creditors of the Company with respect to any amounts due or payable under the Plan.

 

	 	36.	GOVERNING LAW.

 

This Plan shall be construed
and enforced in accordance with the law of the State of Delaware.

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