Document:

Exhibit 10.2

 

SHARE PURCHASE AGREEMENT

 

This
Share Purchase Agreement (this “Agreement”) is entered into as
of December 21, 2022 (the “Execution Date”),
by and between ProQR Therapeutics N.V., a public company with limited liability (naamloze
vennootschap) incorporated under the laws of The Netherlands (“ProQR”), and Eli
Lilly and Company, a corporation organized and existing under the laws of Indiana, with its principal business office located
at Lilly Corporate Center, Indianapolis, Indiana 46285, U.S.A. (“Lilly”). ProQR and Lilly are each hereafter
referred to individually as a “Party” and together as the “Parties.” The capitalized terms used
herein and not otherwise defined have the meanings given to them in Appendix 1 attached hereto or the Amended and Restated Collaboration
Agreement.

 

RECITALS

 

Whereas,
the Parties entered into that certain Research and Collaboration Agreement of dated September 3, 2021 (the “Collaboration
Agreement”);

 

Whereas,
in connection with the Collaboration Agreement, the Parties entered into that certain Share Purchase Agreement dated September 3,
2021 (the “Prior Agreement”);

 

Whereas,
the Parties are amending and restating the Collaboration Agreement (the “Amended and Restated Collaboration Agreement”)
on December 21, 2022;

 

Whereas,
pursuant to the Amended and Restated Collaboration Agreement and subject to the terms and the conditions set forth in this Agreement,
ProQR desires to issue and sell to Lilly, and Lilly desires to purchase from ProQR, ProQR’s ordinary shares, nominal value €
0.04 per share (“Ordinary Shares”); and

 

Whereas,
the Parties agree that this Agreement is not intended to replace or terminate the Prior Agreement, which remains in full force and effect
in accordance with its terms.

 

Now,
Therefore, in consideration of the following mutual promises and obligations, and for good and valuable consideration, the
adequacy and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

Article 1

 

SALE AND PURCHASE OF SHARES

 

1.1            Purchase
of Shares. Subject to the terms and conditions of this Agreement, at the Closing, ProQR will
issue and sell to Lilly, and Lilly will purchase from ProQR, 9,381,586 Ordinary Shares (the “Shares”) for an aggregate
purchase price of $15,000,000.29 (the “Purchase Price”).

 

1.2            Payment.
At the Closing, Lilly will pay the Purchase Price by wire transfer or electronic funds transfer of immediately available funds to an account
designated by ProQR, which account ProQR shall designate to Lilly no less than four (4) Business Days prior to the Closing Date (or
on such later date as may be permitted by Lilly). ProQR consents to payment of the Purchase Price in United States dollars.

 

     

     

    

 

1.3            Closing.
(a) The closing of the purchase and sale of the Shares hereunder (the “Closing”)
shall be held on the second (2nd) Business Day after
the satisfaction or waiver of the conditions to Closing set forth in Article 5 (other than those conditions that by their
nature are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions at the Closing), at 10:00 a.m. Eastern
Time, remotely via the exchange of documents and signatures, or at such other time, date and location as the Parties may agree orally
or in writing. The date the Closing occurs is hereinafter referred to as the “Closing Date.”

 

(b)            ProQR
shall instruct its transfer agent at the Closing to register the Shares in book-entry in the name of Lilly, and ProQR shall cause its
transfer agent to deliver written confirmation of the book-entry delivery of the Shares to Lilly. ProQR will also deliver to Lilly at
the Closing a certificate in form and substance reasonably satisfactory to Lilly and duly executed on behalf of ProQR by an authorized
officer of ProQR, certifying that the conditions to the Closing set forth in Section 5.3 of this Agreement have been satisfied;

 

(c)            At
Closing, Lilly shall deliver to ProQR a certificate in form and substance reasonably satisfactory to ProQR and duly executed on behalf
of Lilly by an authorized officer of Lilly, certifying that the conditions to Closing set forth in Section 5.2 of this Agreement
have been satisfied; and

 

(d)            At
the Closing, subject to receipt by ProQR of the Purchase Price from Lilly as contemplated by Section 1.2, ProQR shall deliver
or cause to be delivered to Lilly a true and correct copy of the irrevocable instructions to the Transfer Agent instructing the Transfer
Agent to deliver the Shares to Lilly on an expedited basis and record the Shares in the register of the Transfer Agent in book entry form.

 

Article 2

 

REPRESENTATIONS AND WARRANTIES OF PROQR

 

Except as otherwise specifically
contemplated by this Agreement, ProQR hereby represents and warrants as of the Execution Date and the Closing Date to Lilly that:

 

2.1            Private
Placement. Subject to the accuracy of the representations and warranties made by Lilly in
Article 3, the Shares will be issued and sold to Lilly in compliance with applicable exemptions from the registration and
prospectus delivery requirements of the Securities Act and the registration and qualification requirements of all applicable securities
laws of the states of the United States.

 

2.2            Organization
and Qualification. ProQR is an entity duly incorporated and validly existing as a public
company with limited liability (naamloze vennootschap) under the laws of The Netherlands, with the requisite corporate power and
authority to own or lease and use its properties and assets, to execute and deliver the Transaction Documents, to carry out the provisions
of the Transaction Documents and to issue and sell the Shares. True and correct copies of ProQR’s Amended Articles of Association
(the “Organizational Documents”), as amended and in effect on the Effective Date, are filed or incorporated by reference
as exhibits to the SEC Documents (defined below).

 

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2.3            Authorization.
ProQR has the requisite corporate power and authority and has taken all requisite corporate action necessary for, and no further action
on the part of ProQR, its officers, directors or shareholders is necessary for, (i) the authorization, execution and delivery of
the Transaction Documents, (ii) the authorization of the performance of all obligations of ProQR hereunder or thereunder, and (iii) the
sale, issuance and delivery of the Shares. Each of the Transaction Documents, upon execution and delivery by ProQR, assuming due authorization,
execution and delivery by Lilly, constitute valid and binding obligations of ProQR, enforceable in accordance with their terms, except
(a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement
of creditors’ rights and (b) general principles of equity that restrict the availability of equitable remedies.

 

2.4            Issuance
of Shares. When issued, the Shares will be duly and validly issued and, when paid for in
accordance with this Agreement, will be fully paid and non-assessable, and, when delivered to Lilly at the Closing, shall be free and
clear of all encumbrances and restrictions including, but not limited to, liens, encumbrances or restrictions on transfer, including preemptive
rights, rights of first refusal, purchase options, call options, subscription rights or other similar rights of shareholders of ProQR,
except for restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities laws. Assuming the accuracy
of the representations and warranties of Lilly in this Agreement, the Shares will be issued in compliance with all applicable federal
and state securities laws of Indiana, the state in which Lilly’s principal place of business is located. No stop order or suspension
of trading of the Ordinary Shares has been imposed by Nasdaq or the SEC and remains in effect.

 

2.5            SEC
Documents, Financial Statements. (a) ProQR has (i) timely filed or furnished, as
applicable, all reports, schedules, forms, statements and other documents required to be filed or furnished by it with the United States
Securities and Exchange Commission (the “SEC”) since January 1, 2020, pursuant to the reporting requirements of
the Exchange Act (all of the foregoing and all exhibits included therein and financial statements and schedules thereto and documents
incorporated by reference therein, collectively, the “SEC Documents”) and (ii) delivered or made available (by
filing on the SEC’s electronic data gathering and retrieval system (EDGAR)) to Lilly complete copies of the SEC Documents, including,
but not limited to, its Annual Report on Form 20-F for the year ended December 31, 2021 (the “Form 20-F”).
As of its date, or if amended, as of the date of the last such amendment, each SEC Document complied in all material respects with the
requirements of the Exchange Act applicable to such SEC Documents, and, as of its date, or if amended, as of the date of the last such
amendment, such SEC Document did not contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(b)            (i) As
of the respective dates and for the respective periods indicated, the audited consolidated financial statements (including the notes thereto)
of ProQR included in the Form 20-F comply as to form in all material respects with the published rules and regulations of the
SEC with respect thereto, have been prepared in accordance with IFRS applied on a consistent basis during the periods involved (except
as may be indicated in the notes thereto) and fairly present in all material respects, in accordance with IFRS, the consolidated financial
position of ProQR as of the dates thereof and the consolidated results of its operations and cash flows for the periods then ended.

 

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(ii)            As
of the respective dates and for the respective periods indicated, the unaudited consolidated financial statements (including the notes
thereto) of ProQR included in the Form 6-K filed on November 9, 2022 with the SEC comply as to form in all material respects
with the published rules and regulations of the SEC with respect thereto, have been prepared in accordance with IFRS applied on a
consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present in all material respects,
in accordance with IFRS, the consolidated financial position of ProQR as of the dates thereof and the consolidated results of its operations
and cash flows for the periods then ended.

 

(c)            The
Ordinary Shares are listed on Nasdaq and registered pursuant to Section 12(b) of the Exchange Act, and ProQR has taken no action
designed to or reasonably likely to have the effect of terminating the registration of the Ordinary Shares under the Exchange Act or delisting
the Ordinary Shares from Nasdaq. As of the Execution Date, ProQR has not received any written notification that, and has no Knowledge
that, the SEC or Nasdaq is contemplating terminating such registration or listing. ProQR is in compliance in all material respects with
the requirements of Nasdaq for continued listing of the Ordinary Shares thereon.

 

2.6            Internal
Controls; Disclosure Controls and Procedures. ProQR has established and maintains internal
control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. ProQR has implemented the “disclosure
controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that (a) are required
in order for the principal executive officer and principal financial officer of ProQR to engage in the review and evaluation process mandated
by the Exchange Act, (b) have been evaluated by management of ProQR for effectiveness as of December 31, 2020 and (c) are,
to the Knowledge of ProQR, effective at a reasonable assurance level. To the Knowledge of ProQR, as of the Execution Date, ProQR is in
compliance with such disclosure controls and procedures in all material respects. Each of the principal executive officer and the principal
financial officer of ProQR has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 with respect
to all reports, schedules, forms, statements and other documents required to be filed by ProQR with the SEC. From January 1, 2020
through the Execution Date, to the Knowledge of ProQR, there have been no (a) significant deficiencies or material weaknesses in
ProQR’s internal control over financial reporting (whether or not remediated), (b) change in ProQR’s internal control
over financial reporting that has materially affected, or is reasonably likely to materially affect, ProQR’s internal control over
financial reporting and (c) fraud that involves management or other employees who have a significant role in ProQR’s internal
control over financial reporting.

 

2.7            Capitalization
and Voting Rights.

 

(a)            The
authorized share capital of the Company amounting to €13,600,000 consists of 170,000,000 Ordinary Shares and 170,000,000 preference
shares with a par value of € 0.04 per share. There are 74,865,381 issued Ordinary Shares of which 71,434,624 are outstanding and
no preference shares have been issued or are outstanding. All of the issued and outstanding Ordinary Shares (A) have been duly authorized
and validly issued, (B) are fully paid and nonassessable and (C) were issued in material compliance with applicable federal
and state securities laws and not in violation of any preemptive rights.

 

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(b)            All
of the issued and outstanding Ordinary Shares are entitled to one (1) vote per share.

 

(c)            Except
as disclosed in the SEC Documents, there are no (i) outstanding equity securities, options, warrants, rights (including conversion
or preemptive rights, rights of first refusal, rights of first purchase, purchase options, call options or subscription rights) or other
agreements pursuant to which ProQR is or may become obligated to issue or sell, any of its share capital or any other securities of ProQR
other than equity securities that may have been granted pursuant to its share incentive plans, which plans are described in the SEC Documents,
(ii) restrictions on the transfer of share capital of ProQR other than pursuant to federal or state securities laws or as set forth
in this Agreement or (iii) obligation (contingent or otherwise) on the part of ProQR to repurchase, redeem or otherwise acquire any
of its equity securities or any interests therein or to pay any dividend or make any distribution in respect thereof.

 

(d)            Except
as disclosed in the SEC Documents, ProQR is not a party to or subject to any agreement or understanding relating to the voting of the
share capital of ProQR or the giving of written consents by a shareholder or director of ProQR or relating to the registration of the
share capital of ProQR under the Securities Act.

 

(e)            Except
as disclosed in the SEC Documents, ProQR does not have outstanding any shareholder rights plans or “poison pill” or any similar
arrangement in effect giving any Person the right to purchase any equity interest in ProQR upon the occurrence of certain events.

 

2.8            No
Conflicts; Government Consents and Permits. (a) The execution, delivery and performance
of the Transaction Documents by ProQR and the consummation by ProQR of the transactions contemplated thereby (including the issuance of
the Shares) will not (i) conflict with or result in a violation of any provision of ProQR’s Organizational Documents, (ii) result
in any encumbrance upon any of the Shares, other than restrictions on resale pursuant to securities laws or as set forth in this Agreement,
(iii) materially violate or conflict with, or result in a material breach, default, modification, acceleration of payment or termination
under of any provision of, or constitute a default under, any Material Contract, or (iv) result in a material violation of any law,
rule, regulation, order, judgment or decree (including United States federal and state securities laws and regulations and regulations
of any self-regulatory organizations) applicable to ProQR as of the Execution Date.

 

(b)            ProQR
is not required to obtain any consent, authorization or order of, or make any filing or registration with, any Governmental Authority
in order for it to execute, deliver and perform its obligations under this Agreement in accordance with the terms hereof, or to issue
and sell the Shares in accordance with the terms hereof, other than such as have been made or obtained, and except for (i) any post-Closing
filings required to be made under federal or state “blue sky” or securities laws or (ii) any required filings or notifications
regarding the issuance or listing of additional shares with Nasdaq.

 

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2.9            Litigation.
Other than as set forth in the SEC Documents, there is no material action, suit, proceeding or investigation pending (of which ProQR has
received written notice or otherwise has Knowledge) or, to ProQR’s Knowledge, threatened, against ProQR or which ProQR intends to
initiate.

 

2.10            Licenses
and Other Rights; Compliance with Laws. Each of ProQR and its subsidiaries possesses such
valid and current certificates, authorizations or permits required by state, federal, provincial or foreign regulatory agencies or bodies
to conduct its business as currently conducted and as described in the SEC Documents, except where the failure to so possess would not
reasonably be expected to be materially adverse to ProQR and its subsidiaries, taken as a whole (“Permits”). Each of
ProQR and its subsidiaries is not in violation of, or in default under, any of the Permits, except for such violations or defaults that
would not reasonably be expected to be materially adverse to ProQR and its subsidiaries, taken as a whole. Neither ProQR nor any of its
subsidiaries has received any notice of proceedings relating to the revocation or modification of, or non-compliance with, any such Permits,
which if the subject of an unfavorable decision, ruling, or finding would reasonably be expected to be materially adverse to ProQR and
its subsidiaries, taken as a whole.

 

2.11            Intellectual
Property. The representations and warranties of ProQR contained in Section 10.2 of the
Amended and Restated Collaboration Agreement are, subject to the exceptions and qualifications contained therein and disclosures related
thereto, true, correct and complete.

 

2.12            Taxes
and Tax Returns. Each of ProQR and each of its subsidiaries has timely filed (taking into
account all applicable extensions) all material Tax Returns required to be filed by it; all such Tax Returns were correct and complete
in all material respects; and each of ProQR and each of its subsidiaries has paid (or has had paid on its behalf) to the appropriate Governmental
Authority all material Taxes that have been required to be paid by it; except, in each case, with respect to matters contested (or that
could be contested) in good faith or for which adequate reserves have been established in accordance with the requirements of IFRS, if
any. There are no disputes pending or, to the Knowledge of ProQR, claims asserted in writing in respect of Taxes of ProQR or any of its
subsidiaries for which reserves that are required to be established under IFRS have not been established.

 

2.13            Absence
of Certain Changes. Since December 31, 2021 through the Execution Date, except as set
forth in the SEC Documents or as contemplated by this Agreement or the Amended and Restated Collaboration Agreement, there has not been:

 

(a)            Any
change, development, occurrence or event that has had or would reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on ProQR;

 

(b)            any
declaration, setting aside or payment of any dividends, or authorization or making of any distribution upon or with respect to any class
or series of ProQR’s share capital, (ii) sale, exchange or other disposition of any material assets or rights outside the ordinary
course of business of ProQR or its subsidiaries, or (iii) repurchase, redemption or other acquisition of any outstanding share capital
of ProQR;

 

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(c)            any
admission by ProQR in writing of its inability to pay its debts generally as they become due, filing or consent to the filing against
it of a petition in bankruptcy or a petition to take advantage of any insolvency act, made an assignment for the benefit of creditors,
consent to the appointment of a receiver for itself or for the whole or any substantial part of its property, or any petition in bankruptcy
filed against it, been adjudicated a bankrupt or filed a petition or answer seeking reorganization or arrangement under the federal bankruptcy
laws or any other laws of the United States or any other jurisdiction;

 

(d)            any
material Tax election made or changed, any audit settled or any amended Tax Returns filed of ProQR;

 

(e)            any
material damage, destruction or loss (whether or not covered by insurance) involving any material asset or right of ProQR and its subsidiaries;

 

(f)            any
sale, assignment or transfer, or any agreement to sell, assign or transfer, any material asset, liability, property, obligation or right
of ProQR or any of its subsidiaries to any Person, in each case, other than in the ordinary course of business;

 

(g)            any
material obligation or liability incurred, or any material loans or advances made, by ProQR or any of its subsidiaries to any of its or
their other Affiliates, other than in the ordinary course of business;

 

(h)            any
purchase or acquisition, or agreement, plan or arrangement to purchase or acquire, any material property, rights or assets other than
in the ordinary course of business by ProQR or any of its subsidiaries;

 

(i)            any
material waiver of any material rights or claims of ProQR or any of its subsidiaries;

 

(j)            any
material lien upon, or adversely affecting, any material property or other material assets of ProQR or any of its subsidiaries; or

 

(k)            any
Contract entered into by ProQR or any of its subsidiaries to do any of the foregoing.

 

2.14            No
Undisclosed Material Liabilities. ProQR and its subsidiaries do not have any liabilities
or obligations of any nature (whether accrued, absolute, contingent or otherwise), except for liabilities or obligations (a) reflected
or reserved against on the most recent consolidated balance sheet of ProQR included in the SEC Documents or the notes thereto, (b) incurred
since the latest date of such balance sheet in the ordinary course of business or (c) that are not material to ProQR.

 

2.15            Material
Contracts. Each Material Contract is included as an exhibit in the SEC Documents. Each Material
Contract is the legal, valid and binding obligation of ProQR, enforceable against ProQR in accordance with its terms, and, to the Knowledge
of ProQR, is the legal, valid and binding obligation of the other party thereto, enforceable against each other party thereto in accordance
with its terms, except in each case to the extent that (a) enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally and by general equitable principles and (b) the indemnification
provisions of certain agreements may be limited by federal or state securities laws or public policy considerations in respect thereof.
ProQR is not in material breach, violation or default under any such Material Contract or, to ProQR’s Knowledge, is any other Person
counterparty to such Material Contract. ProQR has not been notified in writing that any Third Party to any Material Contract has indicated
that such Third Party intends to cancel, terminate or not renew any Material Contract.

 

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2.16            Brokers’
or Finders’ Fees. No broker, finder, investment banker, or other Person is entitled
to any brokerage, finder’s or other similar fee or commission from ProQR in connection with the transactions contemplated by this
Agreement or the Amended and Restated Collaboration Agreement.

 

2.17            Not
an Investment Company. ProQR is not, and solely after receipt of the Purchase Price, will
not be, required to register as an “investment company” as defined in the Investment Company Act of 1940, as amended.

 

2.18            No
Integration. Assuming the accuracy of the representations and warranties of Lilly, the offer,
sale and issuance of the Shares will be exempt from the registration requirements of the Securities Act, and will have been registered
or qualified (or are exempt from registration and qualification) under the registration, permit or qualification requirements of all applicable
state securities laws of Indiana, the state in which Lilly’s principal place of business is located. Neither ProQR nor any of its
Affiliates or any Person or agent on its or their behalf has engaged in any form of general solicitation or general advertising with respect
to the Shares nor have any of such Person or agent sold, offered for sale, solicited offers to sell or will solicit any offers to sell
or has offered to sell or will offer to sell all or any part of the Shares to any Person or Persons so as to (a) bring the sale of
such Shares by ProQR within the registration requirements of the Securities Act or the securities laws of the Netherlands or (b) cause
this offering of Shares to be integrated with any prior offering of securities of ProQR for purposes of the Securities Act or any applicable
shareholder approval provision of Nasdaq, nor will ProQR take any actions or steps that would cause the offering or issuance of the Shares
to be integrated with other offerings.

 

2.19            Foreign
Corrupt Practices Act. Neither ProQR nor any of its subsidiaries nor, to ProQR’s Knowledge,
any director, officer, agent, employee or other Person acting on behalf of ProQR or any of its subsidiaries has, in the course of its
actions for, or on behalf of, ProQR or any of its subsidiaries (a) used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expenses relating to political activity; (b) made any direct or indirect unlawful payment to any
domestic government official, “foreign official” (as defined in the U.S. Foreign Corrupt Practices Act of 1977, as amended,
and the rules and regulations thereunder (collectively, the “FCPA”)) or employee from corporate funds; (c) violated
or is in violation of any provision of the FCPA or, to ProQR’s Knowledge, any applicable non-U.S. anti-bribery statute or regulation;
or (d) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any domestic government
official, such foreign official or employee. ProQR and its subsidiaries have conducted their respective businesses in compliance with
the FCPA and have instituted and maintain policies and procedures designed to ensure continued compliance therewith.

 

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2.20            Money
Laundering Laws. The operations of ProQR and its subsidiaries are, and have been conducted
at all times, in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970, as amended, and to ProQR’s Knowledge, the money laundering statutes of all applicable jurisdictions, the
rules and regulations thereunder and any related or similar applicable rules, regulations or guidelines, issued, administered or
enforced by any Governmental Authority.

 

2.21            OFAC.
Neither ProQR nor any of its subsidiaries nor, to ProQR’s Knowledge, any director, officer, agent, employee or Person acting on
behalf of ProQR or any of its subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control
of the U.S. Treasury Department (“OFAC”); and ProQR will not directly or indirectly use the proceeds from the sale
of the Shares, or lend, contribute or otherwise make available such proceeds to any subsidiary or any joint venture partner or other Person,
for the purpose of financing the activities of or business with any Person, or in any country or territory, that currently is subject
to any U.S. sanctions administered by OFAC or in any other manner that will result in a violation by ProQR or any of its subsidiaries
of U.S. sanctions administered by OFAC.

 

2.22            Preclinical
and Clinical Data and Regulatory Compliance. Except as set forth in the SEC Documents (excluding
any forward-looking disclosures set forth in any “risk factors” section or “forward-looking statements” section
thereof), as of the Execution Date, the preclinical tests and clinical trials (collectively, “Studies”) that are described
in, or the results of which are referred to in, the SEC Documents were and, if still pending, are being conducted in all material respects
in accordance with the protocols, procedures and controls designed and approved for such Studies, except in each case as would not, individually
or in the aggregate, reasonably be expected to be materially adverse to ProQR. Except as set forth in the SEC Documents, as of the Execution
Date, neither ProQR nor any of its subsidiaries has received any written notice of, or correspondence from, any Regulatory Authority (as
defined below) or institutional review board requiring the termination, suspension or material modification of any Studies that are described
or referred to in the SEC Documents and ProQR and each such subsidiary have operated and currently are in compliance in all material respects
with applicable laws, rules, regulations and policies of the federal, state, local or foreign agencies or bodies engaged in the regulation
of pharmaceuticals and biological products such as those being developed by ProQR (collectively, “Regulatory Authorities”),
including current Good Laboratory Practices and current Good Clinical Practices, except in each case as would not, individually or in
the aggregate, reasonably be expected to be materially adverse to ProQR and such subsidiaries, taken as a whole.

 

2.23            Regulatory
Permits. Except as set forth in the SEC Documents, (a) ProQR and each of its subsidiaries
have such material permits, licenses, certificates, approvals, clearances, authorizations or amendments thereto (the “Regulatory
Permits”) issued by the appropriate federal, state, local or foreign regulatory agencies or bodies necessary to conduct the
business of ProQR as currently conducted and as described in the SEC Documents, including, without limitation, any Investigational New
Drug Application as required by the United States Food and Drug Administration (“FDA”) or authorizations issued by
Regulatory Authorities; (b) ProQR and each such subsidiary are in compliance in all material respects with the requirements of the
Regulatory Permits, and all of the Regulatory Permits are valid and in full force and effect, in each case in all material respects; (c) ProQR
has not received any notice of proceedings relating to the revocation, termination, modification or impairment of any of the Regulatory
Permits; (d) neither ProQR nor any such subsidiary has failed to file with the FDA or any other Regulatory Authority any material
required application, submission, report, document, notice, supplement or amendment, and all such filings were in material compliance
with applicable laws when filed and have been supplemented as necessary to remain in material compliance with applicable laws; and (e) no
material deficiencies have been asserted by the FDA or any other Regulatory Authority with respect to any such filings; except, in each
case ((a)-(e)), as would not, individually or in the aggregate, reasonably be expected to be material to ProQR.

 

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2.24            Related-Party
Transactions. The SEC Documents disclose all transactions between ProQR and any related parties
as required to be disclosed in the Form 20-F.

 

2.25            Subsidiaries.
All of the issued and outstanding share capital of each Person, of which ProQR owns a majority of its outstanding voting equity securities
are, where applicable, validly issued, fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase
securities. Other than the Persons listed on Exhibit 8.1 to the Form 20-F, ProQR does not currently own or control, directly
or indirectly, any interest in any other corporation, partnership, trust, joint venture, limited liability company, association, or other
business entity. Except as disclosed in the SEC Documents, ProQR is not a participant in any material joint venture, partnership or similar
arrangement.

 

Article 3

 

REPRESENTATIONS AND WARRANTIES OF LILLY

 

Except as otherwise specifically
contemplated by this Agreement, Lilly hereby represents and warrants as of the Execution Date and Closing Date to ProQR that:

 

3.1            Authorization;
Enforcement. Lilly is a corporation duly organized, validly existing and in good standing
under the laws of Indiana. Lilly has all requisite corporate power and authority to enter into this Agreement and to consummate the transactions
contemplated hereby. Lilly has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement.
Upon the execution and delivery of this Agreement, this Agreement will constitute a valid and binding obligation of Lilly, enforceable
against Lilly in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium
or other laws of general application affecting enforcement of creditors’ rights and (b) general principles of equity that restrict
the availability of equitable remedies.

 

3.2            No
Conflicts; Government Consents. (a) The execution, delivery and performance of this
Agreement by Lilly and the consummation by Lilly of the transactions contemplated hereby (including the purchase of the Shares) will not
(i) conflict with or result in a violation of any provision of Lilly’s amended articles of incorporation or amended bylaws,
(ii) materially violate or conflict with, or result in a material breach of any provision of, or constitute a default under, any
agreement, indenture or instrument to which Lilly is a party, or (iii) result in a material violation of any law, rule, regulation,
order, judgment or decree (including United States federal and state securities laws and regulations and regulations of any self-regulatory
organizations) applicable to Lilly.

 

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(b)            Lilly
is not required to obtain any consent, authorization or order of, or make any filing or registration with, any Governmental Authority
in order for it to execute, deliver or perform any of its obligations under this Agreement in accordance with the terms hereof, or to
purchase the Shares in accordance with the terms hereof.

 

3.3            Investment
Purpose; Investment Experience. Lilly is purchasing the Shares for its own account and not
with a present view toward the public distribution thereof and has no arrangement or understanding with any other Persons regarding the
distribution of the Shares. Lilly will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit
any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Shares except in accordance with the Securities Act and
to the extent permitted by Sections 4.2 and 4.3 of this Agreement. Lilly is an “accredited investor” (as defined
in Regulation D under the Securities Act). Lilly has conducted its own due diligence on ProQR to its satisfaction and has such knowledge
and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Shares
to be purchased hereunder.

 

3.4            Reliance
on Exemptions. Lilly has not taken any of the actions set forth in, and is not subject to,
the disqualification provisions of Rule 506(d)(1) under the Securities Act and did not learn of the investment in the Shares
as a result of any general solicitation or advertising. Except for the Ordinary Shares acquired pursuant to the Prior Agreement, as of
the Execution Date and immediately prior to the Closing, neither Lilly nor any of its controlled Affiliates beneficially owns, or will
beneficially own any securities of ProQR. Lilly understands that ProQR intends for the Shares to be offered and sold to it in reliance
upon specific exemptions from the registration requirements of United States federal and state securities laws and that ProQR is relying
upon the truth and accuracy of, and Lilly’s compliance with, the representations, warranties, agreements, acknowledgments and understandings
of Lilly set forth herein (including in this Section 3.4) in order to determine the availability of such exemptions and the
eligibility of Lilly to acquire the Shares. For the avoidance of doubt, the representation and warranty set forth in the second sentence
of this Section 3.4 shall be deemed not to apply to (i) investment funds or (ii) pension or other employee benefit
plan administrator for any pension or other employee benefit plan for Lilly’s or its Affiliates’ employees that, in the case
of (i) and (ii) are not directed by Lilly, are conducted without the intent or objective of effecting a change of control of
ProQR or otherwise influencing the management or policy of ProQR.

 

3.5            Governmental
Review. Lilly understands that no United States federal or state agency or any other Governmental
Authority has passed upon or made any recommendation or endorsement of the Shares or an investment therein.

 

Article 4

 

COVENANTS AND AGREEMENTS

 

4.1            Market
Listing. From the Execution Date through the Closing, ProQR shall use best efforts to (i) maintain
the listing and trading of the Ordinary Shares on Nasdaq and (ii) effect the listing of the Shares on Nasdaq.

 

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4.2            Transfer
or Resale. Lilly understands that:

 

(a)            the
Shares have not been and are not being registered under the Securities Act or any applicable state securities laws and, consequently,
Lilly may have to bear the risk of owning the Shares for an indefinite period of time because the Shares may not be transferred unless
(i) the resale of the Shares is registered pursuant to an effective registration statement under the Securities Act; (ii) Lilly
has delivered to ProQR an opinion of counsel (in form, substance and scope customary for opinions of counsel in comparable transactions)
to the effect that the Shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration; or
(iii) the Shares are sold or transferred pursuant to Rule 144 (provided, that Lilly provides ProQR with reasonable assurances
(including in the form of seller and broker representation letters) that the Shares may be sold pursuant to such rule).

 

(b)            any
sale of the Shares made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and, if Rule 144
is not applicable, any resale of the Shares under circumstances in which the seller (or the Person through whom the sale is made) may
be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under
the Securities Act.

 

(c)            For
as long as Lilly or any of its Affiliates beneficially owns any Shares, to the extent it shall be required to do so under the Exchange
Act, ProQR shall use reasonably best efforts to timely file the reports required to be filed by it under the Exchange Act or the Securities
Act (including reports under Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144),
and shall use reasonable efforts to take such further necessary action as Lilly may reasonably request in connection with the removal
of any restrictive legend on the Shares being sold, all to the extent required from time to time to enable Lilly to sell the Shares without
registration under the Securities Act within the limitations of the exemption provided by Rule 144.

 

4.3            Legends.
Lilly understands that the Shares will bear restrictive legends in substantially the following form (and a stop-transfer order may be
placed against transfer of the Shares):

 

THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER THE SECURITIES
ACT OR AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE REASONABLY SATISFACTORY TO PROQR THERAPEUTICS N.V.) THAT SUCH REGISTRATION IS NOT
REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF THE SECURITIES ACT.

 

If such Shares are transferred
pursuant to Section 4.2 of this Agreement, Lilly may request that ProQR remove, and if so requested, ProQR shall agree to
authorize and instruct (including by causing any required legal opinion to be provided) the removal of any legend from the Shares, if
permitted by applicable securities law, within two (2) Business Days of any such request; provided, however, each Party
will be responsible for any fees it incurs in connection with such request and removal.

 

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4.4            Registration
Rights. ProQR hereby provides Lilly with the registration rights set forth on Appendix
2 attached hereto, which is hereby incorporated in and made a part of this Agreement as if set forth in full herein.

 

4.5            Information
Rights.

 

(a)            The
rights and obligations set forth in Section 4.5 of the Prior Agreement shall continue in effect in accordance with the Prior Agreement,
with the Shares to be purchased hereunder to be taken into consideration in determining whether Lilly meets the ownership threshold set
forth in such Section 4.5.

 

(b)            Until
Lilly no longer holds Shares representing beneficial ownership of at least five percent (5%) of the outstanding Ordinary Shares, ProQR
shall provide to Lilly:

 

(i)            as
soon as practicable, but in any event within 120 days after the end of each fiscal year of ProQR (A) a balance sheet as of the end
of such year, (B) statements of income and of cash flows for such year, and (C) a statement of shareholders’ equity as
of the end of such year, all such financial statements audited and certified by independent public accountants of internationally recognized
standing selected by ProQR;

 

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

 

(iii)            within
sixty (60) days after the end of each fiscal year, (A) unaudited financial statements of ProQR that contain the financial information
necessary in order for Lilly to prepare and file IRS Form 5471 with respect to ProQR, (B) a “PFIC Annual Information Statement”
for the prior fiscal year containing the information required under Treasury Regulation 1.1295-1(g)(1), and (C) such other information
reasonably requested in writing as is reasonably necessary to allow Lilly to complete its respective tax filings in the United States.

 

4.6            Right
to Conduct Activities. ProQR hereby agrees and acknowledges that Lilly is a public company
with numerous business lines (the “Existing Lilly Business”) and an active investment and acquisition program. ProQR
hereby agrees that none of Lilly or any of its Affiliates (together, the “Lilly Group”) shall be liable to ProQR or
any of its Affiliates for any claim arising out of, or based upon, (a) the investment by the Lilly Group in any entity competitive
with ProQR, (b) actions taken by any partner, officer or other representative of the Lilly Group to assist any such competitive company,
whether or not such action was taken as a member of the board of directors of such competitive company or otherwise, and whether or not
such action has a detrimental effect on ProQR, or (c) with respect to the Lilly Group, the Lilly Group engaging in Existing Lilly
Business; provided, however, that the foregoing shall not limit any of Lilly’s or any of its Affiliates’ obligations
under this Agreement or the Amended and Restated Collaboration Agreement or otherwise relieve Lilly or any Affiliate of Lilly from liability
associated with the breach by Lilly of any representation, warranty, covenant, agreement or obligation set forth in this Agreement or
the Amended and Restated Collaboration Agreement, including (for the avoidance of doubt) Lilly’s obligations of confidentiality
and non-use under this Agreement and the Amended and Restated Collaboration Agreement.

 

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4.7            Securities
Law Disclosure; Publicity. No public release, public disclosure or announcement concerning
the transactions contemplated hereby shall be made by either Party without the consent of the other Party (which consent shall not be
unreasonably withheld, conditioned or delayed), except as provided for in the Amended and Restated Collaboration Agreement.

 

4.8            Use
of Proceeds. The proceeds to be received by ProQR at the Closing shall be used for general
corporate purposes at the direction of the Board.

 

4.9            Participation
in Future Financings. For so long as Lilly holds at least ten percent (10%) of ProQR’s
outstanding Ordinary Shares, ProQR will use its commercially reasonable efforts to allow Lilly to participate (pro rata with its percentage
ownership of the outstanding Ordinary Shares) in public offerings or private placements of its Ordinary Shares to financial, non-strategic
institutional investors primarily for capital raising purposes, subject to any limitations (a) imposed by ProQR’s underwriters
or investment bankers or (b) arising under securities or other applicable laws, including, for the avoidance of doubt, the laws of
the Netherlands. ProQR may undertake such commercially reasonable efforts by notifying Lilly of the proposed financing transaction or
instructing its underwriters, investment bankers or other financial advisors (as applicable) to do so. If such participation is in the
form of a public offering, Lilly understands and acknowledges that ProQR and/or its underwriters or investment bankers may utilize customary
 “wall-cross” procedures to notify Lilly of such opportunity to participate in such offering, or alternatively notify Lilly
after initiation of such offering has been publicly disclosed. If such offering is in the form of a private placement, ProQR may notify
Lilly prior to the public disclosure of such private placement utilizing customary “wall-cross” procedures of such opportunity
to participate in such private placement. Notwithstanding the foregoing, in the event, despite ProQR’s commercially reasonable efforts,
such as in the event Lilly declines to receive such information on a “wall-cross” basis, and Lilly is not provided the opportunity
to participate in private placements referenced in this Section 4.9, ProQR will arrange, as promptly as possible thereafter,
to permit Lilly to participate in a separate and subsequent private placement on substantially the same terms. Notwithstanding the foregoing,
the opportunity for Lilly to participate in the financings described in this Section 4.9 shall not apply to (i) “at-the-market”
offerings as defined in Rule 415(a)(4) promulgated under the Securities Act; (ii) commercial debt in the form of customary
credit facilities, convertible debt, venture debt or similar transactions, provided that such transactions are primarily structured and
issued as debt instruments (regardless of whether such transactions include equity or equity-linked features such as warrants or units
to purchase Ordinary Shares or other instruments exercisable for or convertible into Ordinary Shares); and provided, further, the exception
in this clause (ii) shall not apply to public offerings of debt conducted by ProQR, for which offerings ProQR may utilize the procedures
described in the second and third sentences of this Section 4.9 above to invite Lilly’s participation on the same terms
and conditions as the other purchasers in such public debt offerings; or (iii) strategic partnerships, joint ventures, licenses,
collaborations or similar transactions.

 

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4.10            Lockup.
During the period commencing on the Closing Date and until the earlier of (a) the date that is six (6) months after the Closing
Date and (b) the date that the Amended and Restated Collaboration Agreement is terminated as provided in Article 13 thereof
(collectively, the “Lockup Period”), without the prior approval of ProQR, Lilly shall not Dispose of (x) any of
the Shares, together with any Ordinary Shares issued in respect thereof as a result of any stock split, stock dividend, share exchange,
merger, consolidation or similar recapitalization, and (y) any Ordinary Shares issued as (or issuable upon the exercise of any warrant,
right or other security that is issued as) a dividend or other distribution with respect to, or in exchange or in replacement of, the
Ordinary Shares described in clause (x) of this sentence (collectively, “Lockup Shares”); provided, however, that
the foregoing shall not prohibit (a) Lilly from transferring any Lockup Shares to (i) a Permitted Transferee (provided, that
the Permitted Transferee agrees to be bound in writing by the restrictions set forth herein), or (ii) to ProQR; (b) the Disposition
of Lockup Shares with the prior written consent of ProQR; and (c) the Disposition of Lockup Shares pursuant to a Third Party Tender/Exchange
Offer, and any Disposition effected pursuant to any business combination, merger, consolidation or similar transaction consummated by
ProQR; provided, further, that, in the event ProQR enters into any definitive agreement with a Third Party during the Lock-Up Period contemplating
(x) a Third Party Tender/Exchange Offer or (y) a business combination, merger, consolidation or similar transaction to which
ProQR is a constituent corporation, then the restrictions on the Lock-Up Shares automatically shall be terminated and of no further force
or effect.

 

4.11            Notice
on Sale. Prior to the proposed sale of any Shares by Lilly in open market transactions that
exceed 20% of the daily average trading volume of the Ordinary Shares over the 30 trading days immediately preceding such sale, Lilly
agrees to use commercially reasonable efforts to notify ProQR of such proposed sale.

 

4.12            Standstill
Provisions.

 

(a)            For
the period of time commencing on the date hereof and ending on the six-month anniversary of the Closing Date, Lilly will not, directly
or indirectly, except as expressly approved or invited by ProQR in writing:

 

(i)            acquire
any securities of ProQR such that, following any such acquisition, Lilly would be the beneficial owner (as determined pursuant to Rule 13d-3
of the Exchange Act) of more than 20% of the voting power of the capital stock of ProQR then outstanding;

 

(ii)            propose
to ProQR or to the ProQR securityholders any merger or other transaction that would constitute a Change of Control;

 

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(iii)            publicly
support or endorse a Third Party Tender / Exchange Offer to purchase securities of ProQR that represent a majority of the voting power
of the capital stock of ProQR then outstanding; or

 

(iv)            submit
matters to, or request the convening of, a general meeting of shareholders of ProQR.

 

(b)            Notwithstanding
the provisions set forth in Section 4.12(a) (the “Standstill Provisions”):

 

(i)            If
at any time (w) a Third Party enters into a definitive agreement with ProQR providing for a Change of Control, (x) a Third Party
commences a Third Party Tender / Exchange Offer that, if consummated, would result in a Change of Control, (y) ProQR publicly announces
its support of, or intention to enter into, a Change of Control transaction with a Third Party, or (z) ProQR engages a financial
advisor for the purpose of soliciting indications of interest or proposals regarding a Change of Control transaction and Lilly is not
requested to participate in such process, then, in each case, the Standstill Provisions shall automatically be terminated and of no force
or effect.

 

(ii)            The
Standstill Provisions do not preclude Lilly from:

 

(A)            making
confidential offers or proposals to ProQR’s Chief Executive Officer or Board; or

 

(B)            (i) entering
into a negotiated business arrangement with ProQR as contemplated by this Agreement; or (ii) otherwise acquiring (or privately proposing
the acquisition thereof via a Lilly business development professional employee or other employees related thereto) assets of ProQR in
the ordinary course of business via license, collaborative arrangement or otherwise (an “Ordinary Course Transaction”)
provided that in no event shall assets involved in such Ordinary Course Transaction represent a material portion of the assets of ProQR
or any of its Affiliates or require public disclosure thereof (other than if a definitive agreement for such transaction is entered into
between Lilly and ProQR and disclosure thereof is required by law).

 

(iii)            For
the avoidance of doubt, nothing contained in the Standstill Provisions shall be deemed to prevent any (i) investment funds from acquiring
Ordinary Shares or (ii) pension or other employee benefit plan administrator for any pension or other employee benefit plan for Lilly’s
or its Affiliates’ employees from engaging in investment operations (including trading and owning Ordinary Shares) that, in the
case of (i) and (ii) are not directed by Lilly, and are conducted without the intent or objective of effecting a Change of Control.

 

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Article 5

 

CONDITIONS TO CLOSING

 

5.1            Mutual
Conditions to Closing. The obligations of ProQR and Lilly to consummate the Closing are subject
to the satisfaction or waiver of the following conditions at or prior to the Closing:

 

(a)            Absence
of Litigation. No proceeding challenging this Agreement or the transactions contemplated hereby, or seeking to prohibit, alter, prevent
or materially delay the Closing, will have been instituted or be pending before any Governmental Authority.

 

(b)            No
Governmental Prohibition. The sale of the Shares by ProQR and the purchase of the Shares by Lilly will not be prohibited by any applicable
law or Governmental Authority.

 

(c)            Amended
and Restated Collaboration Agreement. The Amended and Restated Collaboration Agreement shall be in full force and effect.

 

5.2            Conditions
to Obligations of ProQR to Close. ProQR’s obligation to complete the purchase and sale
of the Shares and deliver the Shares to Lilly is subject to the satisfaction or waiver of the following conditions at or prior to the
Closing:

 

(a)            Receipt
of Funds. ProQR will have received immediately available funds in the full amount of the Purchase Price for the Shares.

 

(b)            Representations
and Warranties. The representations and warranties made by Lilly in Article 3 will be true and correct as of the Closing
Date, except to the extent such representations and warranties are specifically made as of a particular date, in which case such representations
and warranties will be true and correct as of such other date, except in each case where the failure of such representations and warranties
to be so true and correct (without giving effect to any limitation as to “materiality” set forth therein) would not reasonably
be expected to have a material adverse effect on Lilly’s ability to perform its obligations
hereunder or consummate the transactions contemplated hereby.

 

(c)            Covenants.
All covenants and agreements contained in this Agreement to be performed or complied with by Lilly on or prior to the Closing Date shall
have been performed or complied with in all material respects.

 

(d)            Closing
Deliverables. All Closing deliverables required to be delivered by Lilly to ProQR under Section 1.3(c) of this Agreement
shall have been so delivered.

 

5.3            Conditions
to Lilly’s Obligations to Close. Lilly’s obligation to complete the purchase
and sale of the Shares is subject to the satisfaction or waiver of the following conditions at or prior to the Closing:

 

(a)            Representations
and Warranties. The representations and warranties made by ProQR in Article 2 of this Agreement will be true and correct
as of the Closing Date, except to the extent such representations and warranties are specifically made as of a particular date, in which
case such representations and warranties will be true and correct as of such other date, except in each case where the failure of such
representations and warranties to be so true and correct (without giving effect to any limitation as to “materiality” set
forth therein) would not reasonably be expected to have a material adverse effect on ProQR’s ability to perform its obligations
hereunder or consummate the transactions contemplated hereby.

 

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(b)            Covenants.
All covenants and agreements contained in this Agreement to be performed or complied with by ProQR on or prior to the Closing Date shall
have been performed or complied with in all material respects.

 

(c)            Closing
Deliverables. All Closing deliverables as required to be delivered by ProQR to Lilly under Section 1.3(b) and Section 1.3(d) of
this Agreement shall have been so delivered.

 

(d)            Nasdaq
Matters.

 

(i)            Prior
to the Closing, ProQR shall have taken all actions that are reasonably necessary, including providing appropriate notice to Nasdaq of
the transactions contemplated by this Agreement, for the Shares to be listed on Nasdaq and shall have complied with all listing, reporting,
filing and other obligations under the rules of Nasdaq and of the SEC with respect to the matters contemplated by this Agreement.

 

(ii)            The
Ordinary Shares shall not have been suspended, as of the Closing Date, by the SEC or Nasdaq from trading on Nasdaq nor shall any such
suspension by the SEC or Nasdaq have been threatened, as of the Closing Date, in writing by the SEC or Nasdaq.

 

(e)            No
Material Adverse Effect. Since the Execution Date, there shall not have been any change, development, occurrence or event that has
had or would reasonably be expected to have a Material Adverse Effect on ProQR.

 

Article 6

 

TERMINATION

 

6.1            Ability
to Terminate. This Agreement may be terminated prior to the Closing by:

 

(a)            mutual
written consent of ProQR and Lilly;

 

(b)            either
ProQR or Lilly, upon written notice to the other, if the Closing does not occur by January 20, 2023 (the “Termination Date”);
provided, however, that the right to terminate this Agreement under this Section 6.1(b) shall not be available
to any Party whose failure to fulfill any obligation under this Agreement or the Amended and Restated Collaboration Agreement has been
the cause of, or resulted in, the failure to consummate the transactions contemplated hereby prior to the Termination Date;

 

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(c)            ProQR,
upon written notice to Lilly, so long as ProQR is not then in breach of its representations, warranties, covenants or agreements under
this Agreement such that any of the conditions set forth in Section 5.3(a) or (b), as applicable, could not be
satisfied by the Termination Date, (i) upon a breach of any covenant or agreement on the part of Lilly set forth in this Agreement
or (ii) if any representation or warranty of Lilly shall have been or become untrue, in each case such that any of the conditions
set forth in Section 5.2(b) or (c), as applicable, could not be satisfied by the Termination Date; and

 

(d)            Lilly,
upon written notice to ProQR, so long as Lilly is not then in breach of its representations, warranties, covenants or agreements under
this Agreement such that any of the conditions set forth in Section 5.2(b) or (c), as applicable, could not be
satisfied by the Termination Date, (i) upon a breach of any covenant or agreement on the part of ProQR set forth in this Agreement
or (ii) if any representation or warranty of ProQR shall have been or become untrue, in each case such that any of the conditions
set forth in Section 5.3(a) or (b), as applicable, could not be satisfied by the Termination Date.

 

6.2            Effect
of Termination. In the event of the termination of this Agreement pursuant to Section 6.1,
(a) this Agreement (except for this Section 6.2 and Article 7, and any definitions set forth in this Agreement
and used in this Section 6.2 or Article 7) shall forthwith become void and have no effect, without any liability
on the part of either Party, and (b) all filings, applications and other submissions made pursuant to this Agreement, to the extent
practicable, shall be withdrawn from the agency or other Person to which they were made or appropriately amended to reflect the termination
of the transactions contemplated hereby; provided, however, that nothing contained in this Section 6.2 shall
relieve either Party from liability for fraud or any intentional or willful breach of this Agreement or the Amended and Restated Collaboration
Agreement.

 

Article 7

 

MISCELLANEOUS

 

7.1            Entire
Agreement; Amendment. This Agreement, together with the Amended and Restated Collaboration
Agreement, sets forth the complete, final and exclusive agreement and all the covenants, promises, agreements, warranties, representations,
conditions and understandings between the Parties with respect to the subject matter hereof and supersedes, as of the Execution Date,
all prior and contemporaneous agreements and understandings between the Parties with respect to the subject matter hereof. No subsequent
alteration, amendment, change or addition to this Agreement shall be binding upon the Parties unless reduced to writing and signed by
an authorized officer of each Party.

 

7.2            Survival.
The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing of the transactions contemplated
by this Agreement.

 

7.3            Notice.
Any notice required or permitted to be given by this Agreement must be in writing, in English. Any and all notices or other communications
or deliveries required or permitted to be provided hereunder must be in writing and will be deemed given and effective if (a) delivered
by hand or by overnight courier with tracking capabilities; (b) mailed postage prepaid by first class, registered or certified mail;
or (c) delivered by electronic mail, in each case, addressed as set forth below unless changed by notice so given:

 

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If to ProQR:

 

ProQR
Therapeutics N.V.

Zernikedreef 9

2333 CK Leiden, The Netherlands

Attn: Business Development

[***]

 

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

 

ProQR Therapeutics N.V.

Zernikedreef 9

2333 CK Leiden, the Netherlands

Attn: Legal Department

[***]

 

If to Lilly:

 

Eli Lilly and Company

Lilly Corporate Center

Indianapolis, Indiana 46285

Attn: Senior Vice President, Corporate Business Development

 

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

 

Eli Lilly and Company

Lilly Corporate Center

Indianapolis, IN 46285

Attn: General Counsel

 

7.4            Severability.
If, for any reason, any part of this Agreement is adjudicated invalid, unenforceable or illegal by a court of competent jurisdiction,
(a) such adjudication shall not, to the extent feasible, affect or impair, in whole or in part, the validity, enforceability or legality
of any remaining portions of this Agreement, (b) this Agreement shall be construed and enforced as if such invalid, unenforceable
or illegal provision had never comprised a part hereof, (c) all remaining portions will remain in full force and effect and shall
not be affected by the invalid, unenforceable or illegal provision or by its severance herefrom, and (d) in lieu of such invalid,
unenforceable or illegal provision, the Parties shall use reasonable efforts to seek and agree on an alternative valid and enforceable
provision that preserves the original purpose and intent of this Agreement.

 

7.5            Successors
and Assigns. This Agreement is binding upon and inures to the benefit of the Parties and
their respective successors and permitted assigns. Except for an assignment by Lilly of this Agreement or any rights hereunder to a Permitted
Transferee (which assignment will not relieve Lilly of any obligation hereunder), neither Party may assign this Agreement or any rights
or obligations hereunder without the prior written consent of the other Party.

 

7.6            Waivers.
The failure of a Party to insist upon strict performance of any provision of this Agreement or to exercise any right arising out of this
Agreement shall neither impair that provision or right nor constitute a waiver of that provision or right, in whole or in part, in that
instance or in any other instance. Any waiver by a Party of a particular provision or right shall be in writing, shall be as to a particular
matter and, if applicable, for a particular period of time and shall be signed by such Party.

 

7.7            Interpretation.
The captions and headings to this Agreement are for convenience only and are to be of no force or effect in construing or interpreting
any of the provisions of this Agreement. Unless specified to the contrary, references to Articles, Sections or Appendices mean the particular
Articles, Sections or Appendices to this Agreement. Unless the context otherwise clearly requires, whenever used in this Agreement: (a) the
words “include” or “including” shall be construed as incorporating, also, “but not limited to” or
 “without limitation”; (b) the word “day” or “year” means a calendar day or year unless otherwise
specified; (c) the word “notice” means notice in writing (whether or not specifically stated) and shall include notices,
consents, approvals and other written communications contemplated under this Agreement; (d) the words “hereof,” “herein,”
 “hereby” and derivative or similar words refer to this Agreement as a whole and not merely to the particular provision in
which such words appear; (e) the words “shall” and “will” have interchangeable meanings for purposes of this
Agreement; (f) provisions that require that a Party or the Parties “agree,” “consent” or “approve”
or the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved
minutes or otherwise; (g) words of any gender include the other gender; (h) words using the singular or plural number also include
the plural or singular number, respectively; (i) references to any specific law, rule or regulation, or article, section or
other division thereof, shall be deemed to include the then-current amendments thereto or any replacement law, rule or regulation
thereof; and (j) neither Party shall be deemed to be acting on behalf of the other Party.

 

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7.8            Counterparts;
Electronic Signatures. This Agreement may be executed in any number of counterparts, each
of which is deemed an original, but all of which together constitute one instrument. This Agreement may be executed and delivered electronically
and upon such delivery such electronic signature will be deemed to have the same effect as if the original signature had been delivered
to the other Party.

 

7.9            Expenses.
Each Party shall pay its own costs, charges and expenses incurred in connection with the negotiation, preparation, execution and performance
of this Agreement.

 

7.10            Further
Assurances. The Parties hereby covenant and agree, without the necessity of any further consideration,
to execute, acknowledge and deliver any and all documents and take any action as may be reasonably necessary to carry out the intent and
purposes of this Agreement.

 

7.11            No
Third Party Beneficiary Rights. This Agreement is not intended to and shall not be construed
to give any Third Party any interest or rights (including any Third Party beneficiary rights) with respect to or in connection with any
agreement or provision contained herein or contemplated hereby.

 

7.12            Construction.
The Parties acknowledge and agree that (a) each Party and its counsel reviewed and negotiated the terms and provisions of this Agreement
and have contributed to its revision; (b) the rule of construction to the effect that any ambiguities are resolved against the
drafting Party shall not be employed in the interpretation of this Agreement; and (c) the terms and provisions of this Agreement
shall be construed fairly as to each Party and not in a favor of or against either Party, regardless of which Party was generally responsible
for the preparation of this Agreement.

 

7.13            Governing
Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof that would require the
application of the laws of any other jurisdiction. Any action brought under or arising out of this Agreement shall be brought in the federal
courts of the United States of America located in the City and County of New York, Borough of Manhattan or (ii) the courts of the
State of New York located in the City and County of New York, Borough of Manhattan (collectively, the “Specified Courts”).
Each Party hereby irrevocably submits to the exclusive jurisdiction of such Specified Courts in respect of any claim relating to the validity,
interpretation and enforcement of this Agreement and hereby waives, and agrees not to assert, as a defense in any action, suit or proceeding
in which any such claim is made that it is not subject to the jurisdiction of such court or that such action, suit or proceeding may not
be brought or is not maintainable in such court, or that the venue thereof may not be appropriate or that this agreement may not be enforced
in or by such court. Each Party hereby consents to and grants the Specified Courts jurisdiction over such Party and over the subject matter
of any such claim and agree that mailing of process or other papers in connection with any such action, suit or proceeding in the manner
provided in Section 7.3 of this Agreement or in such other manner as may be permitted by law, shall be valid and sufficient.
Each of ProQR and Lilly hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury
in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

    22

     

    

 

7.14            Equitable
Relief. Each Party acknowledges and agrees that if it fails to perform any of its covenants
or agreements or discharge any of its obligations under this Agreement, irreparable damage could occur and any remedy at law may prove
to be inadequate relief for the other Party. Accordingly, notwithstanding anything herein to the contrary, each Party shall be entitled
(without any requirement to post bond) to seek injunctive relief and specific performance (including any relief or recovery under this
Agreement) in any court of competent jurisdiction anywhere in the world (including the court designated in Section 7.13 of
this Agreement).

 

7.15            Cumulative
Remedies. No remedy referred to in this Agreement is intended to be exclusive unless explicitly
stated to be so, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available
under law.

 

[Remainder of page intentionally left blank.]

 

    23

     

    

 

In
Witness Whereof, the Parties have caused this Agreement to be executed as of the Execution Date by their duly authorized representatives.

 

	 	PROQR THERAPEUTICS N.V.
	 	 	 
	 	By:	/s/ Daniel de Boer
	 	 	Name: Daniel de Boer
	 	 	Title: Chief Executive Officer
	 	 	 
	 	ELI LILLY AND COMPANY
	 	 	 
	 	By:	/s/ David A. Ricks
	 	 	Name: David A. Ricks
	 	 	Title: Chair and Chief Executive Officer

 

[Signature
page to Share Purchase Agreement]

 

     

     

    

 

APPENDIX 1

 

DEFINED TERMS

 

“Affiliate”
means, with respect to any Person, any entity that, at the relevant time (whether as of the Execution Date or thereafter), directly or
indirectly through one or more intermediaries, controls, is controlled by, or is under common control with such Person, for so long as
such control exists. For purposes of this definition, “control” means (i) to possess, directly or indirectly, the power
to direct or cause the direction of the management or policies of an entity, whether through ownership of voting securities or by contract
relating to voting rights or corporate governance, or (ii) direct or indirect ownership of 50% (or such lesser percentage that is
the maximum allowed to be owned by a foreign entity in a particular jurisdiction) or more of the voting share capital or other equity
interest in such entity.

 

“Board”
means the supervisory board of directors of ProQR.

 

“Business Day”
means any day, other than any Saturday, Sunday or any day that banks are authorized or required to be closed in Amsterdam, The Netherlands
or Indianapolis, Indiana.

 

“Change of Control”
means, with respect to ProQR, (i) the acquisition by a Third Party, in one transaction or a series of related transactions, of direct
or indirect beneficial ownership of more than fifty percent (50%) of the outstanding voting equity securities of ProQR (excluding, for
clarity, an acquisition by a Third Party where the equity holders of ProQR immediately prior to such transaction hold a majority of the
outstanding voting equity securities of the Third Party acquiror immediately following such transaction); (ii) a merger or consolidation
to which ProQR is a party as a result of which (A) the ProQR capital stock is converted to cash or (B) the equityholders of
ProQR immediately prior to such transaction own less than 50% of the combined voting power of the surviving entity or the parent of the
surviving entity immediately following such merger or consolidation; or (iii) a sale, exclusive license or other transfer of all
or substantially all of the assets of ProQR in one transaction or a series of related transactions to a Third Party.

 

“Contract”
means, with respect to any Person, any legally binding written or oral contracts, agreements, indentures, bonds, loans, leases, subleases,
licenses, sublicenses, instruments, notes and arrangements to which such Person is a party or by which any of its properties or assets
are subject.

 

“Disposition”
or “Dispose of” means (a) pledge, sale, contract to sell, sale of any option or Contract to purchase, purchase
of any option or Contract to sell, grant of any option, right or warrant for the sale of, or other disposition of or transfer of any Ordinary
Shares, or any options, warrants or other securities or rights convertible into or exercisable or exchangeable for, Ordinary Shares, including,
without limitation, any “short sale” or similar arrangement, or (b) swap, hedge, derivative instrument or any other agreement
or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Ordinary
Shares, whether any such swap or transaction is to be settled by delivery of securities, in cash or otherwise.

 

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

 

    Appendix 1-1

     

    

 

“Governmental Authority”
means any national, international, federal, state, provincial or local government, or political subdivision thereof, or any multinational
organization or any authority, agency or commission entitled to exercise any administrative, executive, judicial, legislative, police,
regulatory or taxing authority or power, and any court or tribunal (or any department, bureau or division thereof, or any governmental
arbitrator or arbitral body).

 

“IFRS”
means International Financial Reporting Standards.

 

“Material
Adverse Effect” means any change, event or occurrence that, individually or in the aggregate with any other changes, events
or circumstances, has had or would reasonably be expected to have (i) a material adverse effect on the business, financial condition,
assets or results of operations of ProQR or its subsidiaries, taken as a whole, or (ii) a material adverse effect on ProQR’s
ability to perform its obligations hereunder or consummate the transactions contemplated hereby; provided, however, that in no
event shall any of the following occurring after the date hereof, alone or in combination, be deemed to constitute, or be taken into account
in determining whether a Material Adverse Effect has occurred: (a) changes in ProQR’s industry generally or in conditions in
the United States or global economy or capital or financial markets generally, including changes in interest or exchange rates, (b) any
change, event or occurrence caused by the announcement or pendency of the transactions contemplated hereby or by the Amended and Restated
Collaboration Agreement (c) the performance of this Agreement, the Amended and Restated Collaboration Agreement and the transactions
contemplated hereby and thereby, or any action taken or omitted to be taken by ProQR at the request or with the prior consent of Lilly,
(d) changes in general legal, regulatory, political, economic or business conditions occurring after the date hereof that, in each
case, generally affect the biotechnology or biopharmaceutical industries, (e) acts of war, sabotage or terrorism occurring after
the date hereof, or any escalation or worsening of any such acts of war, sabotage or terrorism, or (f) earthquakes, hurricanes, floods
or other natural disasters occurring after the date hereof; provided, however, that with respect to clauses (a), (d), (e) and (f),
such effects, alone or in combination, may be deemed to constitute, or be taken into account in determining whether a Material Adverse
Effect has occurred, but only to the extent such effects disproportionately affect ProQR compared to other companies in the biotechnology
or biopharmaceutical industries.

 

“Material Contract”
means all Contracts in effect as of the Execution Date that are required to be filed as exhibits to ProQR’s annual report on Form 20-F.

 

“Nasdaq”
means The Nasdaq Stock Market LLC.

 

“Permitted Transferee”
means an Affiliate of Lilly; provided, however, that no such Person shall be deemed a Permitted Transferee for any purpose
under this Agreement unless: (a) the Permitted Transferee shall have agreed in writing to be subject to and bound by the terms of
this Agreement as though it were “Lilly” hereunder, and (b) Lilly acknowledges that it continues to be bound by the terms
of this Agreement.

 

“Person”
means any corporation, limited or general partnership, limited liability company, joint venture, trust, unincorporated association, governmental
body, authority, bureau or agency, any other entity or body, or an individual.

 

    Appendix 1-2

     

    

 

“Registrable Securities”
means the Shares; provided, that any Shares will cease to be Registrable Securities when such Shares have been sold or otherwise Disposed
of pursuant to an effective Registration Statement or otherwise.

 

“Register,”
 “Registered” and “Registration” means a registration effected by preparing and filing (a) a
Registration Statement in compliance with the Securities Act (and any post effective amendments filed or required to be filed) and the
declaration or ordering of effectiveness of such Registration Statement, or (b) a Prospectus and/or Prospectus supplement in respect
of an appropriate effective Registration Statement.

 

“Registration Statement”
means a registration statement of ProQR that covers the resale of any Registrable Securities pursuant to the provisions of Appendix 2
filed with, or to be filed with, the SEC under the rules and regulations promulgated under the Securities Act, including the related
Prospectus, amendments and supplements to each such registration statement or Prospectus, including pre- and post-effective amendments,
all exhibits thereto, financial information and all other material incorporated by reference or deemed to be incorporated by reference
in such registration statement.

 

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

 

“Shelf Registration
Statement” means a “shelf” registration statement of ProQR that covers all Registrable Securities on Form F-3
and under Rule 415 under the Securities Act or, if ProQR is not then eligible to file on Form F-3, on another eligible form
under the Securities Act, or any successor rule that may be adopted by the SEC, including without limitation any such registration
statement filed pursuant to Appendix 2 and all amendments and supplements to such “shelf” registration statement, including,
post-effective amendments, in each case, including the Prospectus contained therein, all exhibits thereto and any document incorporated
by reference therein.

 

“Tax” or
 “Taxes” shall mean all federal, state, local, and foreign income, excise, gross receipts, gross income, ad valorem,
profits, gains, property, capital, sales, transfer, use, payroll, employment, severance, withholding, duties, intangibles, franchise,
backup withholding, value- added, and other taxes imposed by a Governmental Authority, together with all interest, penalties and additions
to tax imposed with respect thereto.

 

“Tax Return”
shall mean a report, return or other document (including any amendments thereto) required to be supplied to a Governmental Authority with
respect to Taxes.

 

“Third Party”
means any Person other than Lilly or ProQR (or its respective Affiliates).

 

“Third Party Tender/Exchange
Offer” means any tender or exchange offer made to all of the holders of Ordinary Shares by a Third Party (other than a Third
Party acting on behalf of or as part of a group or in concert with Lilly).

 

“Transaction Documents”
means this Agreement and the Amended and Restated Collaboration Agreement.

 

    Appendix 1-3

     

    

 

“Underwriter”
means, with respect any Underwritten Offering, a securities dealer who purchases any Registrable Securities as a principal in connection
with a distribution of such Registrable Securities.

 

“Underwritten Offering”
means a public offering of securities Registered under the Securities Act in which an Underwriter participates in the distribution of
such securities, including on a firm commitment basis for reoffer and resale to the public, including any such offering that is a “bought
deal” or a block trade.

 

    Appendix 1-4

     

    

 

APPENDIX 2

 

Registration
Rights

 

1.            Resale
Registration.

 

1.1            On
or prior to the first (1st) Business Day following the expiration of the Lockup Period, ProQR will file a Shelf Registration Statement
registering for resale the Registrable Securities under the Securities Act. The Company shall use its commercially reasonable efforts
to cause such Shelf Registration Statement to become effective as promptly as practicable after filing. Until the earlier of such time
as (i) all Registrable Securities cease to be Registrable Securities or (ii) ProQR is no longer eligible to maintain a Shelf
Registration Statement, ProQR will keep current and effective such Shelf Registration Statement and file such supplements or amendments
to such Shelf Registration Statement (or file a new Shelf Registration Statement when such preceding Shelf Registration Statement expires
pursuant to the rules of the SEC) as may be necessary or appropriate in order to keep such Shelf Registration Statement continuously
effective and useable for the resale of Registrable Securities under the Securities Act in order to fulfill a Shelf Underwritten Offering
Request (as defined below). The Shelf Registration Statement shall include the Plan of Distribution attached hereto as Annex A.

 

1.2            Lilly
may use the Shelf Registration Statement to dispose of Registrable Securities pursuant to an Underwritten Offering from which it reasonably
expects to receive gross proceeds of at least $15.0 million in the aggregate from such Underwritten Offering. Upon written notice from
Lilly to ProQR of Lilly’s intention to sell Registrable Securities in such manner, ProQR shall, at Lilly’s request (a “Shelf
Underwritten Offering Request”), enter into an underwriting agreement in a form as is customary in Underwritten Offerings of
securities by ProQR with the underwriter or underwriters selected by Lilly and reasonably acceptable to ProQR and shall take all such
other reasonable actions as are requested by the managing underwriter of such Underwritten Offering and/or Lilly in order to expedite
or facilitate the disposition of such Registrable Securities (“Shelf Underwritten Offering”); provided, that in no
event shall ProQR have any obligation to facilitate or participate in more than two (2) Shelf Underwritten Offerings.

 

1.3            If
the filing, initial effectiveness or use of the Shelf Registration Statement at any time would require ProQR to make a public disclosure
of material non-public information that ProQR has a bona fide business purpose, in good faith, for not disclosing publicly at such time,
ProQR may, upon giving prompt written notice of such action to Lilly, delay the filing or initial effectiveness of, or suspend use of,
the Shelf Registration Statement (a “Suspension”). ProQR shall use commercially reasonable efforts to make routine
public disclosures about its business in the ordinary course consistent with past practice and subject to and in compliance with applicable
law. In the case of a Suspension, Lilly agrees to suspend use of the applicable Prospectus in connection with any sale or purchase, or
offer to sell or purchase, Shares, upon receipt of the notice referred to above. The Company shall immediately notify Lilly in writing
upon the termination of any Suspension, amend or supplement the Prospectus, if necessary, so it does not contain any untrue statement
or omission and furnish to Lilly such numbers of copies of the Prospectus as so amended or supplemented as Lilly may reasonably request.
The Company shall, if necessary, supplement or amend the Shelf Registration Statement, if required by law or as may reasonably be requested
by Lilly.

 

     

     

    

 

2.            Information.
The Company may require Lilly to furnish to ProQR such information regarding the distribution of the Shares and such other information
relating to Lilly and its ownership of Shares as ProQR may from time to time reasonably request in writing to the extent that such information
is required to be included in the Shelf Registration Statement.

 

3.            Expenses.
All expenses incurred by the parties with respect to each Shelf Underwritten Offering (including, for the avoidance of doubt, expenses
relating to the preparation, filing and effectiveness of the Shelf Registration Statement) shall be borne 50% by ProQR on the one hand
and 50% by Lilly on the other hand, and each party shall account for its own expenses and promptly submit to the other one or more requests
for reimbursement in accordance with such cost-sharing arrangement; provided that in the event that ProQR incurs reasonable and documented
expenses in excess of $75,000, Lilly shall promptly, upon written notice by ProQR, reimburse ProQR for any such excess amounts. The expenses
described in the foregoing sentence shall include (a) all registration and filing fees, and any other fees and expenses associated
with filings required to be made with the SEC or Financial Industry Regulatory Authority, (b) all fees and expenses in connection
with compliance with any securities or “Blue Sky” laws (including reasonable fees and disbursements of counsel for the Underwriters
in connection with blue sky qualifications of the Shares), (c) all printing, duplicating, word processing, messenger, telephone,
facsimile and delivery expenses (including expenses of printing certificates for the Shares in a form eligible for deposit with The Depository
Trust Company and of printing Prospectuses), (d) all fees and disbursements of counsels (including non-U.S. counsels) for ProQR and
of all independent certified public accountants or independent auditors of ProQR and any of its Subsidiaries (including the expenses of
any special audit and comfort letters required by or incident to such performance), (e) Securities Act liability insurance or similar
insurance if ProQR so desires, (f) all fees and expenses incurred in connection with the listing of the Shares on any securities
exchange or quotation of the Shares on any inter-dealer quotation system, and (g) all fees and expenses of any special experts or
other Persons retained by ProQR in connection with any registration. In addition, notwithstanding the foregoing, ProQR shall not be required
to pay any underwriting discounts and commissions and transfer Taxes, if any, attributable to the sale of the Shares.

 

4.            Notice.
The Company shall notify Lilly immediately upon (a) any request by the SEC or any other Federal or state Governmental Authority for
amendments or supplements to a Shelf Registration Statement or for additional information that pertains to Lilly as a selling stockholder;
(b) the issuance by the SEC of any stop order suspending the effectiveness of the Shelf Registration Statement or any order by the
SEC or any other regulatory authority preventing or suspending the use of any Prospectus or the initiation or threatening of any proceedings
for such purposes, (c) receipt by ProQR of any notification with respect to the suspension of the qualification of the Shares for
offering or sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, or (d) ProQR becoming aware
that the Shelf Registration Statement or the related Prospectus contains any untrue statement of a material fact or omits to state a material
fact necessary to make the statements therein (in the case of such Prospectus, in light of the circumstances under which they were made)
not misleading.

 

     

     

    

 

5.            Indemnification.

 

5.1            To
the extent permitted by Law, ProQR will indemnify and hold harmless Lilly, its officers, directors, agents, partners, members, stockholders
and employees, as applicable, and each Person who controls Lilly (within the meaning of the Securities Act or the Exchange Act), and the
officers, directors, agents, partners, members, stockholders and employees of each such controlling Person, from and against any and all
losses, claims, liabilities, damages, deficiencies, assessments, fines, judgments, fees, costs (including, without limitation, reasonable
costs of preparation and reasonable attorneys’ fees) and expenses (collectively “Losses”) (joint or several),
as incurred, to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such
Losses (or actions in respect thereof) arise out of, relate to, or are based upon any of the following statements, omissions or violations
(collectively a “Violation”) by ProQR: (a) any untrue statement or alleged untrue statement of a material
fact contained in the Shelf Registration Statement or incorporated by reference therein, including any Prospectus contained therein or
any amendments or supplements thereto, (b) the omission or alleged omission to state therein a material fact required to be stated
therein, or necessary to make the statements therein not misleading, or (c) any violation or alleged violation by ProQR of the Securities
Act, the Exchange Act, any state securities Law, or any rule or regulation promulgated under the Securities Act, the Exchange Act
or any state securities Law in connection with the Shelf Registration Statement; and ProQR will reimburse each such indemnified party
for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such Loss or action; provided,
however, that the indemnity agreement contained in this Section 5.1 will not apply to amounts paid in settlement of any
such Loss or action if such settlement is effected without ProQR’s consent, nor will ProQR be liable in any such case for any such
Loss to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information
furnished by Lilly and stated to be expressly for use in connection with the Shelf Registration Statement or an applicable Prospectus.

 

5.2            To
the extent permitted by Law, Lilly will indemnify and hold harmless ProQR and each of its directors and its officers against any Losses
(joint or several) to which ProQR or any such director, officer, controlling Person, Underwriter or other Third Party who may become subject
under the Securities Act, the Exchange Act or other federal or state law, insofar as such Losses (or actions in respect thereto) arise
out of or are based upon any of the following statements: (a) any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement or any other document incorporated reference therein, including any preliminary Prospectus or
final Prospectus contained therein or any amendments or supplements thereto, or (b) the omission or alleged omission to state therein
a material fact required to be stated therein, or necessary to make the statements therein not misleading (collectively, a “Lilly
Violation”), in each case to the extent (and only to the extent) that such Lilly Violation occurs in reliance upon and in
conformity with written information furnished by Lilly under an instrument duly executed by Lilly, or written information furnished by
Lilly and stated to be expressly for use in connection with the Shelf Registration Statement or an applicable Prospectus; and Lilly will
reimburse any legal or other expenses reasonably incurred by ProQR or any such director, officer, controlling Person, Underwriter or other
Third Party in connection with investigating or defending any such Loss or action if it is judicially determined that there was such a
Lilly Violation; provided, however, that the indemnity agreement contained in this Section 5.2 will not apply
to amounts paid in settlement of any such Loss or action if such settlement is effected without Lilly’s consent; provided,
further, that the obligations of Lilly hereunder shall be limited to an amount equal to the net proceeds it receives in such Registration.

 

     

     

    

 

5.3            Promptly
after receipt by an indemnified party under this Section 5 of notice of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 5,
deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party will have the right to participate
in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party will have the right
to retain its own counsel, with the fees and expenses thereof to be paid by the indemnifying party, if representation of such indemnified
party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between
such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such action will relieve such indemnifying party of any liability
to the indemnified party under this Section 5 to the extent, and only to the extent, prejudicial to its ability to defend
such action, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may
have to any indemnified party otherwise than under this Section 5.

 

5.4            If
the indemnification provided for in this Section 5 is held by a court of competent jurisdiction to be unavailable to an indemnified
party with respect to any Losses referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party thereunder,
will to the extent permitted by applicable Law contribute to the amount paid or payable by such indemnified party as a result of such
Loss in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and of the indemnified
party, on the other, in connection with the Violation(s) or Lilly Violation(s), as applicable, that resulted in such Loss, as well
as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party will be determined
by a court of law by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission
to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided, however,
that the obligations of Lilly hereunder shall be limited to an amount equal to the net proceeds it receives in such Registration; and
provided, further, that no Person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

5.5            The
obligations of ProQR and Lilly under this Section 5 will survive termination of this Agreement and the expiration or withdrawal
of the Shelf Registration Statement. No indemnifying party, in the defense of any such claim or litigation, will, except with the consent
of each indemnified party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or
litigation.

 

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ANNEX A

 

PLAN OF DISTRIBUTION

 

The selling securityholders,
including their pledgees, donees, transferees, distributees, beneficiaries or other successors in interest, may from time to time offer
some or all of the ordinary shares (collectively, “Securities”) covered by this prospectus. To the extent required,
this prospectus may be amended and supplemented from time to time to describe a specific plan of distribution.

 

The selling securityholders
may sell the Securities covered by this prospectus from time to time, and may also decide not to sell all or any of the Securities that
they are allowed to sell under this prospectus. We will not receive any proceeds from the sale of Securities. The selling securityholders
will act independently of us in making decisions regarding the timing, manner and size of each sale. These dispositions may be at fixed
prices, at market prices prevailing at the time of sale, at prices related to such prevailing market prices, at varying prices determined
at the time of sale, or at privately negotiated prices. Sales may be made by the selling securityholders in one or more types of transactions,
which may include:

 

		·	purchases by underwriters, dealers and agents who may receive compensation in the form of underwriting discounts, concessions or commissions
from the selling securityholders and/or the purchasers of the Securities for whom they may act as agent;

 

		·	one or more block transactions, including transactions in which the broker or dealer so engaged will attempt to sell the Securities
as agent but may position and resell a portion of the block as principal to facilitate the transaction, or in crosses, in which the same
broker acts as an agent on both sides of the trade;

 

		·	ordinary brokerage transactions or transactions in which a broker solicits purchases;

 

		·	purchases by a broker-dealer or market maker, as principal, and resale by the broker-dealer for its account;

 

		·	the pledge of Securities for any loan or obligation, including pledges to brokers or dealers who may from time to time effect distributions
of Securities, and, in the case of any collateral call or default on such loan or obligation, pledges or sales of Securities by such pledgees
or secured parties;

 

		·	short sales or transactions to cover short sales relating to the Securities;

 

		·	one or more exchanges or over the counter market transactions;

 

		·	through distribution by a selling securityholder or its successor in interest to its members, general or limited partners or shareholders
(or their respective members, general or limited partners or shareholders);

 

     

     

    

 

		·	privately negotiated transactions;

 

		·	the writing of options, whether the options are listed on an options exchange or otherwise;

 

		·	distributions to creditors and equity holders of the selling securityholders; and

 

		·	any combination of the foregoing, or any other available means allowable under applicable law.

 

A selling securityholder may
also resell all or a portion of its Securities in open market transactions in reliance upon Rule 144 under the Securities Act of
1933, as amended (the “Securities Act”) provided it meets the criteria and conforms to the requirements of Rule 144
under the Securities Act and all applicable laws and regulations.

 

The selling securityholders
may enter into sale, forward sale and derivative transactions with third parties, or may sell securities not covered by this prospectus
to third parties in privately negotiated transactions. In connection with those sale, forward sale or derivative transactions, the third
parties may sell Securities covered by this prospectus, including in short sale transactions and by issuing securities that are not covered
by this prospectus but are exchangeable for or represent beneficial interests in the ordinary shares. The third parties also may use ordinary
shares received under those sale, forward sale or derivative arrangements or ordinary shares pledged by the selling securityholder or
borrowed from the selling securityholders or others to settle such third-party sales or to close out any related open borrowings of ordinary
shares. The third parties may deliver this prospectus in connection with any such transactions. Any third party in such sale transactions
will be an underwriter and will be identified in a supplement or a post- effective amendment to the registration statement of which this
prospectus is a part, as may be required.

 

In addition, the selling securityholders
may engage in hedging transactions with broker- dealers in connection with distributions of Securities or otherwise. In those transactions,
broker- dealers may engage in short sales of securities in the course of hedging the positions they assume with selling securityholders.
The selling securityholders may also sell securities short and redeliver securities to close out such short positions. The selling securityholders
may also enter into option or other transactions with broker-dealers which require the delivery of securities to the broker-dealer. The
broker-dealer may then resell or otherwise transfer such securities pursuant to this prospectus. The selling securityholders also may
loan or pledge Securities, and the borrower or pledgee may sell or otherwise transfer the Securities so loaned or pledged pursuant to
this prospectus. Such borrower or pledgee also may transfer those Securities to investors in our securities or the selling securityholders’
securities in connection with the offering of other securities not covered by this prospectus.

 

To the extent necessary, the
specific terms of the offering of Securities, including the specific Securities to be sold, the names of the selling securityholders,
the respective purchase prices and public offering prices, the names of any underwriter, broker-dealer or agent, if any, and any applicable
compensation in the form of discounts, concessions or commissions paid to underwriters or agents or paid or allowed to dealers will be
set forth in a supplement to this prospectus or a post-effective amendment to this registration statement of which this prospectus forms
a part. The selling securityholders may, or may authorize underwriters, dealers and agents to, solicit offers from specified institutions
to purchase Securities from the selling securityholders. These sales may be made under “delayed delivery contracts” or other
purchase contracts that provide for payment and delivery on a specified future date. If necessary, any such contracts will be described
and be subject to the conditions set forth in a supplement to this prospectus or a post- effective amendment to this registration statement
of which this prospectus forms a part.

 

     

     

    

 

Broker-dealers or agents may
receive compensation in the form of commissions, discounts or concessions from the selling securityholders. Broker-dealers or agents may
also receive compensation from the purchasers of Securities for whom they act as agents or to whom they sell as principals, or both. Compensation
to a particular broker-dealer might be in excess of customary commissions and will be in amounts to be negotiated in connection with transactions
involving securities. In effecting sales, broker-dealers engaged by the selling securityholders may arrange for other broker-dealers to
participate in the resales.

 

In connection with sales of
Securities covered hereby, the selling securityholders and any underwriter, broker-dealer or agent and any other participating broker-dealer
that executes sales for the selling securityholders may be deemed to be an “underwriter” within the meaning of the Securities
Act. Accordingly, any profits realized by the selling securityholders and any compensation earned by such underwriter, broker-dealer or
agent may be deemed to be underwriting discounts and commissions. Selling securityholders who are “underwriters” under the
Securities Act must deliver this prospectus in the manner required by the Securities Act. This prospectus delivery requirement may be
satisfied through the facilities of the national exchange on which the Securities are then traded in accordance with Rule 153 under
the Securities Act or satisfied in accordance with Rule 174 under the Securities Act.

 

We and the selling securityholders
have agreed to indemnify each other against certain liabilities, including liabilities under the Securities Act. In addition, we or the
selling securityholders may agree to indemnify any underwriters, broker-dealers and agents against or contribute to any payments the underwriters,
broker-dealers or agents may be required to make with respect to, civil liabilities, including liabilities under the Securities Act. Underwriters,
broker- dealers and agents and their affiliates are permitted to be customers of, engage in transactions with, or perform services for
us and our affiliates or the selling securityholders or their affiliates in the ordinary course of business.

 

In order to comply with applicable
securities laws of some states or countries, the Securities may only be sold in those jurisdictions through registered or licensed brokers
or dealers and in compliance with applicable laws and regulations. In addition, in certain states or countries the Securities may not
be sold unless they have been registered or qualified for sale in the applicable state or country or an exemption from the registration
or qualification requirements is available. In addition, any Securities of a selling securityholder covered by this prospectus that qualify
for sale pursuant to Rule 144 under the Securities Act may be sold in open market transactions under Rule 144 rather than pursuant
to this prospectus.

 

In connection with an offering
of Securities under this prospectus, the underwriters may purchase and sell securities in the open market. These transactions may include
short sales, stabilizing transactions and purchases to cover positions created by short sales. Short sales involve the sale by the underwriters
of a greater number of securities than they are required to purchase in an offering. Stabilizing transactions consist of certain bids
or purchases made for the purpose of preventing or retarding a decline in the market price of the securities while an offering is in progress.

 

     

     

    

 

The underwriters also may
impose a penalty bid. This occurs when a particular underwriter repays to the underwriters a portion of the underwriting discount received
by it because the underwriters have repurchased securities sold by or for the account of that underwriter in stabilizing or short-covering
transactions.

 

These activities by the underwriters
may stabilize, maintain or otherwise affect the market price of the Securities offered under this prospectus. As a result, the price of
the Securities may be higher than the price that otherwise might exist in the open market. If these activities are commenced, they may
be discontinued by the underwriters at any time. These transactions may be effected on the Nasdaq Stock Market or another securities exchange
or automated quotation system, or in the over-the-counter market or otherwise.

 

[Remainder of page intentionally left blank]Document

Exhibit 10.1

[Insert Date]

Re: Employment Agreement

Dear [_____]:

This letter agreement (“Agreement”) will set forth the terms of your employment with indie Semiconductor, Inc. (the “Company”) as its [insert title], reporting to the [For CEO: Board of Directors of the Company (the “Board”) or Chief Executive/Financial Officer], effective January 1, 2023 (the “Employment Date”).  [For executives who are members of the Board: During your employment as Chief Executive Officer/President you will continue to serve on the Board.] You will be expected to diligently perform various duties consistent with your position. You will work at our headquarters office, which is located at 32 Journey, Aliso Viejo, California 92656 [or from your home office].

1.Cash Compensation.
Commencing on your Employment Date, your base salary will be $[____] per year (to be paid according to the Company’s regular payroll schedule less payroll deductions and all required withholdings), subject to periodic review and adjustment by the Compensation Committee of the Board (the “Compensation Committee”). Beginning with the Company’s fiscal year ending December 31, 2023, and subject to your continued employment with the Company through such date (except as provided in Section 4), you will also be eligible for an annual target bonus of [__________________ percent (____%)] of your base salary based upon achievement of target performance objectives determined by the Compensation Committee after consultation with you.  Such bonus will be payable either in cash or Company stock at the Company’s discretion.  You will receive a bonus for the Company’s fiscal year ended December 31, 2022 (“Fiscal 2022”), based on the terms applicable to you in your existing role with the Company, payable at the same time the Company pays annual bonuses to other executive officers for Fiscal 2022.

2.Equity Compensation. 
You will be eligible to receive equity compensation as approved by the Compensation Committee.

3.Other Employee Benefits.
You shall be entitled to participate in the Company’s medical, dental, and vision plans, as in effect from time to time, on the same basis as those benefits are generally made available to other senior executives of the Company.  The Company reserves the right to change or eliminate its benefit plans at any time. 

4.Termination of Employment.
a.Your employment with the Company is not for a guaranteed or definite period of time. Rather, the employment relationship is “at will.” This means that you may terminate your employment with the Company at any time and for any reason whatsoever simply by notifying the Company. Likewise, the Company may terminate your employment at any time and for any reason whatsoever, with or without Cause (as defined below) or advance notice.
b.If (i) the Company terminates your employment at any time with Cause (as defined below), (ii) your employment terminates as a result of your death, or (iii) you voluntarily resign from your employment with the Company other than for Good Reason (as defined below), you will be entitled to your base salary accrued through your date of termination of employment, such employee benefits you may be entitled to under the employee benefit plans or programs of the Company and its affiliates, paid in accordance with the terms of the applicable plans or programs, and any expense reimbursement due to you for expenses reasonably incurred by you before the date of your termination of employment.  [For executives who are members of the Board: Additionally, if requested, you will be required to tender your resignation as a member of the Board.]
c.If (i) the Company terminates your employment at any time (A) other than for Cause (as defined below) or (B) due to a Disability, or (ii) you voluntarily terminate your employment for Good Reason 
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(as defined below), then, subject to your execution of a release of claims in favor of the Company in the form attached hereto as Exhibit A, which release becomes effective in accordance with its terms on or before the thirtieth (30th) day following your termination of employment, then you shall be entitled to:
(x) a lump sum payment equal to the sum of [________ (__)] months of your base salary plus [____] years of your target bonus (both at the rate in effect on your termination of employment), together with any base salary accrued through your termination date payable on the thirtieth (30th) day following such termination of employment,
(y) at your election, either a lump sum payment equal to the value of [________ (__)] months of COBRA coverage payable on the thirtieth (30th) day following your termination of employment or direct payment of your premiums for health care continuation coverage under the applicable provisions of COBRA, provided that you elect to continue and remain eligible for these benefits under COBRA, and do not become covered through another employer’s health plan during this period, and provided further the election as to lump sum payment or direct payments of COBRA premiums pursuant to this subsection (x) must be made at the time of termination,
(z) [________ (__)] months accelerated vesting of  all outstanding equity awards (including, without limitation, restricted stock units, stock options, performance based awards, stock price target based awards, and earn-out milestone shares pursuant to the Company’s Master Transactions Agreement dated December 14, 2020 as amended on May 3 , 2021) that you received from the Company prior to such termination of employment, provided that with respect to (i) any outstanding awards subject to performance-based vesting (including, without limitation, performance based awards, stock price target based awards, and earn-out milestone shares pursuant to the Company’s Master Transactions Agreement dated December 14, 2020 as amended on May 3 , 2021) for which the number of earned awards has not been determined as of the date of termination, the number of performance-based awards that will become earned for purposes of vesting shall be equal to the target number of shares subject to the award, and (ii) any awards that are subject to time-based vesting (including any performance-based awards for which the performance conditions have already been satisfied) on one or more anniversaries of the date of grant, solely for purposes of determining the number of earned awards that shall vest upon termination, the time-based awards shall be treated as instead being subject to monthly vesting in equal installments from the applicable date of grant and you shall become vested in that number of earned awards that would have vested during the period commencing from the date of grant and continuing up to your termination date and during an additional [________ (__)] month period following your termination date.  

Notwithstanding the foregoing provisions of this Section 4(c), if termination of employment occurs within ninety (90) days prior to, or two years following, the consummation of a Change of Control (as such term is defined below), (1) the lump sum payment in (w), above, shall be increased to [________ (__)] months of your base salary plus [____] years of your target bonus; (2) you shall receive 100% accelerated vesting of all of your equity awards (including, without limitation, restricted stock units, stock options, performance based awards, stock price target based awards, and earn-out milestone shares pursuant to the Company’s Master Transactions Agreement dated December 14, 2020 as amended on May 3 , 2021), that are unvested and outstanding as of your termination of employment and which would otherwise become vested based solely on the passage of time and performance of services (and not in whole or in part on the future attainment of performance targets); (3) unless otherwise specified in a specific grant agreement, any equity awards (including, without limitation, performance based awards, stock price target based awards, and earn-out milestone shares pursuant to the Company’s Master Transactions Agreement dated December 14, 2020 as amended on May 3 , 2021) held by you at the time of your termination of employment the earning or vesting of which is dependent in whole or in part on the attainment of performance targets shall become vested with respect to the greater of (A) 100% of the target number of shares subject to the award and (B) 
2

the number of shares subject to the award that would be earned based on actual performance through the time of your termination of employment; (4) for the avoidance of doubt, you will remain eligible for the lump sum payment or direct payment of continuation coverage for a period of eighteen (18) months under COBRA, in accordance with (y), above and (5) you shall be paid a pro rata portion of your bonus for the fiscal year of such termination of employment, payable at the same time the Company pays annual bonuses to other executive officers for such fiscal year (but no later than two and a half (2 1⁄2) months after the fiscal year in which the termination date occurs) based on (i) your termination date, (ii) the determination by the Compensation Committee whether company performance objectives have been met, and (iii) an assumption that any individual performance metrics have been achieved at 100%. [For executives who are members of the Board: Additionally, if requested, you will be required to tender your resignation as a member of the Board.]

For purposes of this Agreement, Change of Control shall have the same meaning as in the Company’s 2021 Omnibus Equity Incentive Plan.

d. Your employment will be deemed to be terminated for “Good Reason” if you voluntarily terminate your employment within six (6) months following the first occurrence of any of the following conditions: (i) a reduction of $25,000 or more in your base compensation or your target bonus opportunity; (ii) a material change in your title, authority, duties or responsibilities; (iii) a material breach by the Company of this agreement or any other agreement you are party to with the Company; or (iv) [a relocation of the Company’s headquarters outside of the Orange County, California area; or for remote employees: a relocation to an office 30 miles outside your current location]; provided that you have given written notice to the Board of the first to occur of any of the foregoing events within ninety (90) days following the first occurrence of such event and the Company has failed to remedy the event within thirty (30) days of such notice. Should you elect to voluntarily terminate your employment for any other reason, such termination will not constitute Good Reason and you will not be entitled to any severance or additional vesting.
e.Your employment shall be deemed to be terminated for “Cause” only if you have engaged in (i) continued neglect of or willful failure in the performance of your duties, which, if curable, continues for a period of twenty (20) days following written notice by the Company; (ii) a material breach of the Company’s Proprietary Information and Inventions Agreement, (iii) a material breach of the Company’s Code of Conduct or other Company policies, which, if curable, continues for a period of twenty (20) days following written notice by the Company; (iv) fraud against or embezzlement or material misappropriation from the Company or its affiliates; (v) conviction of, or entering a plea of no contest or nolocontendere to a charge of, a crime constituting a felony; (vi) willful malfeasance or willful misconduct in connection with your duties, which, if curable, continues for a period of twenty (20) days following written notice by the Company; or (vii) any willful and wrongful act or omission which is materially injurious to the financial condition or business reputation of the Company and its subsidiaries, which, if curable, continues for a period of twenty (20) days following written notice by the Company.
f.“Disability” means (i) you have been incapacitated by bodily injury, illness or disease so as to be prevented thereby from engaging in the performance of your duties (provided, however, that the Company acknowledges its obligations to provide reasonable accommodation to the extent required by applicable law); (ii) such total incapacity shall have continued for a period of twelve (12) consecutive months or twelve (12) non-consecutive months in any eighteen (18) month period; and (iii) such incapacity will, in the opinion of a qualified physician, be permanent and continuous during the remainder of your life.
g.In the event that it is determined that payments pursuant to this Agreement constitute non-qualified deferred compensation subject to Section 409A, then, solely to the extent required in order to avoid taxation and/or tax penalties under Section 409A (i) no such amounts shall be paid unless and until you have experienced a separation from service within the meaning of Section 409A and (ii) if you are deemed to be a “specified employee” within the meaning of Section 409A, any such amount that would be paid to you within six (6) months following your separation of service shall be accumulated 
3

and paid to you on the first business day following such six (6) month period, provided that in the event of your death following your separation from service, but prior to the six-month anniversary of your separation from service, then any payments delayed in accordance with this Section 4(g) will be payable in a lump sum as soon as administratively practicable after the date of your death and all other payments will be payable in accordance with the payment schedule applicable to each payment or benefit. Each installment of the payments and benefits provided for in this Agreement shall be treated as a separate payment for purposes of 26 C.F.R. 1.409A-2(b)(2)(i). With respect to expenses eligible for reimbursement under the terms of this Agreement: (i) the amount of such expenses eligible for reimbursement in any taxable year shall not affect the expenses eligible for reimbursement in another taxable year; (ii) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit; and (iii) any reimbursements of such expenses shall be made no later than the end of the calendar year following the calendar year in which the related expenses were incurred, except, in each case, to the extent that the right to reimbursement does not provide for a “deferral of compensation” within the meaning of Section 409A. The parties hereto intend that this Agreement comply, to the extent applicable, with the provisions of Section 409A and related regulations and Treasury pronouncements. If the parties determine in good faith that any provision provided herein would result in the imposition of an excise tax under the provisions of Section 409A, the parties hereby agree to use good faith efforts to reform any such provision to avoid imposition of any such excise tax in such manner that the parties mutually determine is appropriate to comply with Section 409A.
h.If your severance and other benefits provided for in this Section 4 constitute “parachute payments” within the meaning of Section 280G of the Code and, but for this subsection, would be subject to the excise tax imposed by Section 4999 of the Code, then your severance and other benefits under this Section 4 will be payable, either in full or in such lesser amount as would result, after taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, in your receipt on an after-tax basis of the greatest amount of severance and other benefits. Unless the Company and you otherwise agree in writing, any determination required under this Section 4 shall be made in writing in good faith by the accounting firm serving as the Company’s independent public accountants immediately prior to the Change of Control (the “Accountants”). For purposes of making the calculations required by this Section 4, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and you shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 4. If the Accountants determine that reduction of your severance benefits is required by this Section 4 such that no portion of your severance benefits will be subject to the excise tax imposed by Section 4999 of the Code, the severance benefits shall be reduced in the following order: (i) cash severance pay that is exempt from Section 409A, (ii) any other cash severance pay, (iii) any other cash payable that is a severance benefit other than stock appreciation rights, (iv) any stock appreciation rights, (v) any restricted stock and/or restricted stock units, and (vi) stock options. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 4.
i.No payments due you hereunder shall be subject to mitigation or offset, except as set forth herein.

5.Proprietary Information and Inventions Agreement.
As a Company employee, you will be expected to abide by the Company’s Proprietary Information and Inventions Agreement attached hereto as Exhibit B and the Company rules and regulations and acknowledge in writing that you have read the Company’s Code of Conduct, which will govern the terms and conditions of your employment. The Company’s Code of Conduct, may be modified from time to time at the sole discretion of the Company with the current copy posted on the Company’s website.

6.Stock Ownership Requirements.
4

As an executive of the Company, you are expected to comply with the Company’s Stock Ownership Guidelines, as may be modified from time to time. 

7.Indemnification Agreement.
The Company has provided or will provide you with the Company’s standard form of indemnification agreement for officers and directors to indemnify you against certain liabilities you may incur as an officer or director of the Company.

8.Arbitration and Fees.
We expressly agree that, to the extent permitted by law and to the extent that the enforceability of this Agreement is not thereby impaired, any and all disputes, controversies or claims regarding this Agreement shall be determined exclusively by final and binding arbitration under the rules and procedures of JAMS, Orange County. A neutral arbitrator from JAMS shall be mutually selected by the parties. If the parties fail to reach a consensus, then JAMS will select the arbitrator. All disputes will be governed in accordance with the laws of the State of California. The Company shall pay for all arbitration expenses, including without limitation, the arbitrators fees, forum costs, and any other expenses which are unique to the arbitration proceedings (“Arbitration Costs”), but will not be responsible to pay your attorney fees. The parties intend this arbitration provision to be valid, enforceable, irrevocable and construed as broadly as possible.

9.Miscellaneous.
a.You represent that upon the Employment Date your performance of your duties under this Agreement will not breach any other agreement as to which you are a party. In addition, the Company has a policy prohibiting your disclosure, to anyone within the Company, of any confidential and/or proprietary information pertaining to your former employers or any entity with whom you have a non-disclosure agreement. Accordingly, please do not use or disclose to the Company any proprietary information belonging to your former employers or any other person or company with which you have signed such an agreement.
b.Pursuant to the Defend Trade Secrets Act (18 U.S.C. § 1833(b)), you understand that you will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret of the Company or its affiliates that (i) is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to your attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. You understand that if you file a lawsuit for retaliation for reporting a suspected violation of law, you may disclose the trade secret to your attorney and use the trade secret information in the court proceeding if you (x) file any document containing the trade secret under seal, and (y) do not disclose the trade secret, except pursuant to court order. Nothing in this Agreement, or any other agreement with or policy of the Company or its affiliates, is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section. Further, nothing in this Agreement or any other agreement that you have with the Company or its affiliates shall prohibit or restrict you from making any voluntary disclosure of information or documents concerning possible violations of law to, or seek a whistleblower award from, any governmental agency or legislative body, or any self-regulatory organization, in each case, and you may do so without notifying the Company.
c.You acknowledge and agree that any compensation payable to you by the Company shall be subject to the terms of any compensation “clawback” or recoupment policy or provision adopted by the Company (as such policies or provisions may be amended), as well as subject to any clawback or recoupment obligations required under applicable law.
d.Notwithstanding any other provision of this Agreement, the Company may withhold from amounts payable hereunder all federal, state, local and foreign taxes and other amounts that are required to be withheld by applicable laws or regulations, and the withholding of any amount shall be treated as payment thereof for purposes of determining whether you have been paid amounts to which you are entitled.
5

e.During the term of your employment with the Company and for one year thereafter, you will not, on behalf of yourself or any third party, solicit or attempt to induce any employee of the Company to terminate his or her employment with the Company.
f.This Agreement is binding on and may be enforced by the Company and its successors and assigns and is binding on and may be enforced by you and your heirs and legal representatives. Any successor to the Company or substantially all of its business (whether by purchase, merger, consolidation or otherwise) will in advance assume in writing and be bound by all of the Company’s obligations under the Agreement.
g.Notices under this Agreement must be in writing and will be deemed to have been given when personally delivered or two days after mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. Mailed notices to you will be addressed to you at the home address which you have most recently communicated to the Company in writing. Notices to the Company will be addressed to its General Counsel at the Company’s corporate headquarters.
h.This Agreement, together with your Proprietary Information and Inventions Agreement and, the Company’s Code of Conduct forms the complete and exclusive statement of the terms of your employment with the Company. The employment terms in this Agreement supersede any other agreements or promises made to you by anyone on behalf of the Company, whether oral or written. This Agreement may be amended or modified only with the written consent of the parties hereto. No oral waiver, amendment or modification will be effective under any circumstances whatsoever. This Agreement will be binding and shall inure to the benefit of the Company, its successors, and its assigns.
i.This Agreement will be governed by the laws of the State of California without reference to conflict of laws provisions.
j.In the event any provision of this Agreement is found to be unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.

We are very pleased to extend this Agreement to you. Please indicate your acceptance of the terms of this Agreement by signing in the place indicated below.

Sincerely,

[David Aldrich for CEO; Donald McClymont for others]
[Chairman, indie Board of Directors; Chief Executive Officer]

Accepted and agreed:

Signature:
Name:
Date:
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Exhibit A: Form of Release
Exhibit B: Proprietary Information and Inventions Agreement

7

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