Document:

Exhibit 10.1

 

FOURTH AMENDED SEVERANCE COMPENSATION
AGREEMENT

 

 

This Fourth Amended Severance Compensation
Agreement (this “Agreement”) is made and entered into as of December 21, 2017 (the “Effective Date”)
by and between Eric Alexander (the “Employee”) and Pershing Gold Corporation, a Nevada corporation (the “Company”),
collectively the (“Parties”).

 

RECITALS

 

WHEREAS, Employee is the Vice President
Finance and Controller of the Company.

 

WHEREAS, Employee’s existing Third
Amended Severance Compensation Agreement dated January 11, 2017 expires as of December 31, 2017.

 

WHEREAS, the Parties wish to extend Employee’s
agreement through December 31, 2018.

 

WHEREAS, the Parties agree that this Fourth
Amended Severance Agreement replaces that agreement between the parties dated January 11, 2017.

 

Therefore the Parties agree as follows:

 

WHEREAS, the Company believes that appropriate
steps should be taken to assure the Company and its affiliates of Employee’s continued employment and attention and dedication
to duty, and to ensure the availability of Employee’s continued service, notwithstanding the possibility, threat or occurrence
of a change in control.

 

WHEREAS, it is consistent with the Company’s
employment practices and policies and in the best interests of the Company and its shareholders to treat fairly its executive employees
whose employment terminates without cause (either before or after a change in control) and to establish up front the terms and
conditions of an executive’s separation from employment in such event.

 

WHEREAS, in order to fulfill the above purposes,
the Company and Employee wish to enter into this Agreement, which provides for the payment of severance benefits to Employee under
certain circumstances in exchange for the Employee’s release of claims against the Company and agreement not to compete with
or to solicit the Company’s employees or business opportunities for a period of time post-employment.

 

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AGREEMENT

 

NOW, THEREFORE, in consideration of the
mutual promises, covenants and agreements contained herein, the parties agree as follows:

 

1.       Definitions;
Construction.

 

1.1       Definitions.
As used herein, the following words and phrases shall have the following respective meanings unless the context clearly indicates
otherwise.

 

(a)        
Annual Bonus Amount.  (1) In the event the Date of Termination occurs prior to a Change in Control, the Annual Bonus
Amount shall be the average of the actual regular annual cash bonuses paid or payable to Employee with respect to the two fiscal
years of the Company immediately preceding the fiscal year in which the Date of Termination occurs (or such lesser number of fiscal
years as Employee may have been employed by the Company preceding the fiscal year in which the Date of Termination occurs) (the
“Actual Bonus Amount”); provided, however, that in the event the Employee was not employed with the Company
prior to the fiscal year in which the Date of Termination occurs, the Annual Bonus Amount shall equal the target bonus amount established
for Employee for the fiscal year in which the Date of Termination occurs, or, if none, an amount equal to 80% of Employee’s
Base Salary (the target bonus amount or percent of salary being the “Assumed Bonus Amount”).

 

(2) In the event the Date of Termination
occurs following a Change in Control, the Annual Bonus Amount shall be the greater of (i) the Actual Bonus Amount, or (ii) the
Assumed Bonus Amount.

 

(b)       Base
Salary. The Employee’s highest annual base salary in effect during the two-year period immediately preceding the Date
of Termination.

 

(c)        Board.
 The Board of Directors of the Company.

 

(d)        Cause.
 Any of the following:

 

(i)           conviction
of a felony or a crime involving fraud or moral turpitude; or

 

(ii)           theft,
material act of dishonesty or fraud, intentional falsification of any employment or Company records, or commission of any criminal
act which impairs Employee’s ability to perform appropriate employment duties for the Company; or

 

(iii)           intentional
or reckless conduct or gross negligence materially harmful to the Company or the successor to the Company after a Change in Control,
including violation of a non-competition or confidentiality agreement; or

 

(iv)           willful
failure to follow lawful instructions of the person or body to which Employee reports; or

 

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(v)           gross
negligence or willful misconduct in the performance of Employee’s assigned duties.  Cause shall not include
mere unsatisfactory performance in the achievement of Employee’s job objectives.

 

(e)        Change
in Control.   The occurrence of any one or more of the following: (i) the accumulation (if over time, in any consecutive
twelve (12) month period), whether directly, indirectly, beneficially or of record, by any individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended) of 50.1% or more of the shares
of the outstanding common stock of the Company, whether by merger, consolidation, sale or other transfer of shares of common stock
(other than a merger or consolidation where the stockholders of the Company prior to the merger or consolidation are the holders
of a majority of the voting securities of the entity that survives such merger or consolidation), (ii) a sale of all or substantially
all of the assets of the Company or (iii) during any period of twelve (12) consecutive months, the individuals who, at the beginning
of such period, constitute the Board, and any new director whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors
at the beginning of the 12-month period or whose election or nomination for election was previously so approved, cease for any
reason to constitute at least a majority of the Board; provided, however, that the following acquisitions shall not
constitute a Change in Control for the purposes of this Agreement: (A) any acquisitions of common stock or securities convertible,
exercisable or exchangeable into common stock directly from the Company or from any affiliate of the Company, or (B) any acquisition
of common stock or securities convertible, exercisable or exchangeable into common stock by any employee benefit plan (or related
trust) sponsored by or maintained by the Company.

(f)        Code.
 The Internal Revenue Code of 1986, as amended from time to time.

 

(g)        Date
of Termination.  The date on which the Employee has a Separation from Service from the Company.

 

(h)        Disability.
 A physical or mental illness, injury, or condition that prevents Employee from performing substantially all of Employee’s
duties associated with Employee’s position or title with the Company for at least 90 days in a 12-month period.

 

(i)        Good
Reason.  Without the express written consent of Employee, the occurrence of one of the following arising on or after the
date of this Agreement, as determined in a manner consistent with Treasury Regulation Section 1.409A-1(n)(2)(ii):

 

(i)           a
material reduction or change in Employee’s title or job duties, responsibilities and requirements that is inconsistent with
Employee’s position with the Company and Employee’s prior duties, responsibilities and requirements,

 

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(ii)           a
material reduction in the Employee’s Base Salary or bonus opportunity unless a proportionate reduction is made to the Base
Salary or bonus opportunity of all members of the Company’s senior management;

  

(iii)           a
change of more than 50 miles in the geographic location at which the Employee primarily performs services for the Company; or

 

(iv)           any
material breach of this Agreement by the Company.

 

In the case of Employee’s allegation
of Good Reason, (1) Employee shall provide written notice to the Company of the event alleged to constitute Good Reason within
30 days after the initial occurrence of such event, and (2) the Company shall have the opportunity to remedy the alleged Good Reason
event within 30 days from receipt of notice of such allegation.

 

(j)        Separation
from Service.  A “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code and
Treasury Regulation Section 1.409A-1(h).

 

1.2       Construction.
Wherever appropriate, the singular shall include the plural, the plural shall include the singular, and the masculine shall include
the feminine.

 

2.       Term.
This Agreement shall be effective as of the Effective Date and shall expire on December 31, 2018; provided, however, that the expiration
of this Agreement shall not affect the Employee’s rights to receive any payments or benefits otherwise due as a result of
a Separation from Service occurring prior to the expiration of this Agreement.

 

3.       Entitlement
to Benefits. The Employee shall be entitled to separation benefits as set forth in Section 4 below if the Employee incurs
a Separation from Service from the Company during the term of this Agreement that is (a) initiated by the Company for any reason
other than Cause, death, or Disability or (b) initiated by the Employee for Good Reason and the Date of Termination occurs within
90 days following the expiration of the cure period afforded the Company to rectify the condition giving rise to Good Reason (a
“Qualifying Termination”). If the Employee incurs a Separation from Service for any other reason, or after the
term of this Agreement has expired, the Employee shall not be entitled to any payments or benefits hereunder.

4.       Separation
Benefits. If the Employee incurs a Qualifying Termination, the benefits to which the Employee shall be entitled shall be
determined as follows:

 

4.1       Prior
to Change in Control. If the Qualifying Termination occurs prior to a Change in Control, and the Employee executes the Release
in accordance with Section 4.4 below, the Company shall:

 

(a)        Pay
to Employee on the sixtieth (60th) day following the Date of Termination a lump-sum severance payment equal to one (1.0)
times the sum of:

 

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(i)       the
Employee’s Base Salary, plus

 

(ii)       the
Annual Bonus Amount.

 

(b)        In
addition, provided Employee timely elects continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended (“COBRA”), the Company shall pay for twelve (12) months following the Date of Termination (or such shorter
period as Employee is entitled to COBRA continuation coverage under the terms of the Company’s insurance policies or plans),
the premiums for the coverage elected by Employee.

 

4.2       On
or After a Change in Control. If the Qualifying Termination occurs on or within twelve (12) months following a Change in Control,
and the Employee executes the Release in accordance with Section 4.4 below, the Company shall:

 

(a)        Pay
to Employee on the sixtieth (60th) day following the Date of Termination a lump-sum severance payment equal to one and
one-eighth (1.125) times the sum of:

 

(i)       the
Employee’s Base Salary, plus

 

(ii)       the
Annual Bonus Amount.

 

(b)        In
addition, provided Employee timely elects continuation coverage under COBRA, the Company shall pay for eighteen (18) months following
the Date of Termination (or such shorter period as Employee is entitled to COBRA continuation coverage under the terms of the Company’s
insurance policies or plans), the premiums for the coverage elected by Employee.

 

4.3       Additional
Benefits. Nothing in this Agreement shall be deemed to relieve the Company of its obligations under applicable law to pay Employee
all salary and other compensation accrued as of the Date of Termination, to reimburse Employee for any business expenses properly
incurred by Employee and reimbursable under the Company’s expense reimbursement policies in effect from time to time, and
to otherwise provide Employee with any benefits to which Employee may be due under the terms and conditions of any employee benefit
plans sponsored by the Company.

 

4.4       Release.
As a condition precedent to the payment by the Company of the amounts set forth under the Section 4.1 or 4.2, as applicable, the
Employee must execute a release in substantially the form attached hereto as Exhibit A (the “Release”) within
forty-five (45) days following the Date of Termination and not revoke such Release within the subsequent seven (7) day revocation
period (if applicable).

 

5.       Section 280G.
Notwithstanding any other provision of this Agreement, in the event that it shall be determined that the aggregate payments or
distributions by the Company to or for the benefit of Employee, whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement or otherwise (the “Payments”), constitute “excess parachute payments” (as
such term is defined under Section 280G of the Code or any successor provision, and the regulations promulgated thereunder (collectively,
“Section 280G”)) that would be subject to the excise tax imposed by Section 4999 of the Code or any successor provision
(collectively, “Section 4999”) or any interest or penalties with respect to such excise tax (the total excise tax,
together with any interest and penalties, are hereinafter collectively referred to as the “Excise Tax”)), then the
Payments shall be either (a) delivered in full, or (b) delivered to such lesser extent that would result in no portion of the Payments
being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state or local
income and employment taxes and the Excise Tax, results in the receipt by Employee, on an after-tax basis, of the greatest amount
of benefits, notwithstanding that all or some portion of such benefits may be subject to the Excise Tax.  In the event
that the Payments are to be reduced pursuant to this Section 5, such Payments shall be reduced such that the reduction of compensation
to be provided to Employee as a result of this Section 5 is minimized.  In applying this principle, the reduction shall
be made in a manner consistent with the requirements of Section 409A and where two economically equivalent amounts are subject
to reduction but payable at different times, such amounts shall be reduced on a pro rata basis (but not below zero).  All
calculations required pursuant to this Section 13 shall be performed in good faith by nationally recognized registered public accountants
or tax counsel selected by the Company.

 

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6.       Confidential
Material and Participant Obligations.

 

6.1       Confidential
Material. The Employee shall not, directly or indirectly, either during the term of employment or thereafter, disclose to anyone
(except in the regular course of the Company’s business or as required by law), or use in any manner, any information acquired
by the Employee during employment by the Company with respect to any clients or customers of the Company or any confidential, proprietary
or secret aspect of the Company’s operations or affairs unless such information has become public knowledge other than by
reason of actions, direct or indirect, of the Employee. Information subject to the provisions of this paragraph will include, without
limitation:

 

(1)       Names,
addresses and other information regarding investors in the Company’s or its affiliates’ gold exploration or mining
programs;

(2)       Lists
of or information about personnel seeking employment with or who are currently employed by the Company or its affiliates;

 

(3)       Maps,
logs, due diligence investigations, exploration prospects, geological information, mining reports and any other information regarding
past, planned or possible future leasing, exploration, mining, acquisition or other operations that the Company or its affiliates
have completed or are investigating or have investigated for possible inclusion in future activities; and

 

(4)       Any
other information or contacts relating to the Company’s or its affiliates’ exploration, mining, development, fund-raising,
purchasing, engineering, marketing, merchandising and selling activities.

 

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6.2.       Return
of Confidential Material. All maps, logs, data, drawings and other records and written and digital material prepared or compiled
by the Employee or furnished to the Employee during the term of employment will be the sole and exclusive property of the Company,
and none of such material may be retained by the Employee upon termination of employment. The aforementioned materials include
materials on the Employee’s personal computer. The Employee shall return to the Company or destroy all such materials on
or prior to the Date of Termination. Notwithstanding the foregoing, the Employee will be under no obligation to return or destroy
public information.

 

6.3       Non-Compete.
The Employee shall not directly, either during the term of employment or for a period of one (1) year thereafter, engage in any
Competitive Business (as defined below) within any county or parish or adjacent to any county or parish in which the Company or
an affiliate owns any gold or mining interests; provided, however, that the ownership of less than five percent (5%) of the outstanding
capital stock of a corporation whose shares are traded on a national securities exchange or on the over-the-counter market shall
not be deemed engaging in a Competitive Business. “Competitive Business” shall mean typical gold exploration and mining
activities, including mineral leasing, exploration, mining, or any other business activities that are the same as or similar to
the Company’s or an affiliate’s business operations as its business exists on the Date of Termination.

 

6.4       No
Solicitation. The Employee shall not, directly or indirectly, either during the term of employment or for a period of one (1)
year thereafter, (i) solicit, directly or indirectly, the services of any person who was a full-time employee of the Company, its
subsidiaries, divisions or affiliates, or otherwise induce such employee to terminate or reduce such employment, or (ii) solicit
the business of any person who was a client or customer of the Company, its subsidiaries, divisions or affiliates, in each case
at any time during the last year of the term of employment. For purposes of this Agreement, the term “person” includes
natural persons, corporations, business trusts, associations, sole proprietorships, unincorporated organizations, partnerships,
joint ventures, limited liability companies or partnerships, and governments, or any agencies, instrumentalities or political subdivisions
thereof.

 

6.5.       Remedies.
The Employee acknowledges and agrees that the Company’s remedy at law for a breach or a threatened breach of the provisions
herein would be inadequate, and in recognition of this fact, in the event of a breach or threatened breach by the Employee of any
of the provisions of this Agreement, it is agreed that the Company will be entitled to equitable relief in the form of specific
performance, a temporary restraining order, a temporary or permanent injunction or any other equitable remedy which may then be
available, without posting bond or other security. The Employee acknowledges that the granting of a temporary injunction, a temporary
restraining order or other permanent injunction merely prohibiting the Employee from engaging in any business activities would
not be an adequate remedy upon breach or threatened breach of this Agreement, and consequently agrees upon any such breach or threatened
breach to the granting of injunctive relief prohibiting the Employee from engaging in any activities prohibited by this Agreement.
No remedy herein conferred is intended to be exclusive of any other remedy, and each and every such remedy will be cumulative and
will be in addition to any other remedy given hereunder now or hereinafter existing at law or in equity or by statute or otherwise.
In addition, in the event of any breach or suspected breach of the provisions of this Section 6, the Company shall have the right
to suspend immediately any payments or benefits that may otherwise be due Employee pursuant to this Agreement.

 

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7.       Successor
to Company. This Agreement shall bind any successor of the Company, its assets or its businesses (whether direct or indirect,
by purchase, merger, consolidation or otherwise), in the same manner and to the same extent that the Company would be obligated
under this Agreement if no succession had taken place.  In the case of any transaction in which a successor would not by the
foregoing provision or by operation of law be bound by this Agreement, the Company shall require such successor expressly and unconditionally
to assume and agree to perform the Company’s obligations under this Agreement, in the same manner and to the same extent
that the Company would be required to perform if no such succession had taken place.  The term “Company,” as used
in this Agreement, shall mean the Company as hereinbefore defined and any successor or assignee to the business or assets which
by reason hereof becomes bound by this Agreement.

 

8.       Miscellaneous.

 

8.1        Full
Settlement.  Except as otherwise specifically provided herein, the Company’s obligation to make the payments provided
for under this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have against the Employee.  In no event shall the
Employee be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Employee
under any of the provisions of this Agreement and such amounts shall not be reduced whether or not the Employee obtains other employment.
 

 

8.2        Employment
Status.  This Agreement does not constitute a contract of employment or impose on the Employee or the Company any obligation
for the Employee to remain an employee or change the status of the Employee’s employment or the policies of the Company regarding
termination of employment.

 

8.3        Unfunded
Agreement Status.  All payments pursuant to the Agreement shall be made from the general funds of the Company and no special
or separate fund shall be established or other segregation of assets made to assure payment.  The Employee shall not have
under any circumstances any interest in any particular property or assets of the Company as a result of this Agreement.  Notwithstanding
the foregoing, the Company may (but shall not be obligated to) create one or more grantor trusts, the assets of which are subject
to the claims of the Company’s creditors, to assist it in accumulating funds to pay its obligations under this Agreement.

 

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\

8.5        Section
409A.   

 

(a)       General.
The payments and benefits provided hereunder are intended to be exempt from or compliant with the requirements of Section 409A
of the Code.  Notwithstanding any provision of this Agreement to the contrary, in the event that the Company reasonably determines
that any payments or benefits hereunder are not either exempt from or compliant with the requirements of Section 409A of the Code,
the Company shall have the right to adopt such amendments to this Agreement or adopt such other policies and procedures (including
amendments, policies and procedures with retroactive effect), or take any other actions, that are necessary or appropriate (i)
to preserve the intended tax treatment of the payments and benefits provided hereunder, to preserve the economic benefits with
respect to such payments and benefits, and/or (ii) to exempt such payments and benefits from Section 409A of the Code or to comply
with the requirements of Section 409A of the Code and thereby avoid the application of penalty taxes or interest thereunder; provided,
however, that this Section 8.5(a) does not, and shall not be construed so as to, create any obligation on the part of the Company
to adopt any such amendments, policies or procedures or to take any other such actions or to indemnify the Employee for any failure
to do so. Employee shall, at the request of the Company, take any action (or refrain from taking any action) required to comply
with any correction procedure promulgated pursuant to Section 409A of the Code.

 

(b)        Exceptions
to Apply. The Company shall apply the exceptions provided in Treasury Regulation Section 1.409A-1(b)(4), Treasury Regulation
Section 1.409A-1(b)(9) and all other applicable exceptions or provisions of Section 409A of the Code to the payments and benefits
provided under this Agreement so that, to the maximum extent possible such payments and benefits are not “nonqualified deferred
compensation” subject to Section 409A of the Code.  All payments and benefits provided under this Agreement shall be
deemed to be separate payments (and any payments made in installments shall be deemed a series of separate payments) and a separately
identifiable or designated amount for purposes of Section 409A of the Code.

 

(c)        Taxable
Reimbursements. To the extent that any payments or reimbursements provided to the Employee are deemed to constitute “nonqualified
deferred compensation” subject to Section 409A of the Code, such amounts shall be paid or reimbursed reasonably promptly,
but not later than December 31 of the year following the year in which the expense was incurred.  The amount of any payments
or expense reimbursements that constitute compensation in one year shall not affect the amount of payments or expense reimbursements
constituting compensation that are eligible for payment or reimbursement in any subsequent year, and the Employee’s right
to such payments or reimbursement of any such expenses shall not be subject to liquidation or exchange for any other benefit.

 

(d)       Specified
Employee. Notwithstanding anything to the contrary in this Agreement, no compensation or benefits that are “nonqualified
deferred compensation” subject to Section 409A of the Code shall be paid to Employee during the 6-month period following
his Separation from Service to the extent that the Company determines that the Employee is a “specified employee” and
that paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i)
of the Code.  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business
day following the end of such 6-month period (or such earlier date upon which such amount can be paid under Section 409A of the
Code without being subject to such additional taxes, including as a result of the Employee’s death), the Company shall pay
to the Employee a lump-sum amount equal to the cumulative amount that would have otherwise been payable to the Employee during
such 6-month period.

 

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8.7        Validity
and Severability.  The invalidity or unenforceability of any provision of the Agreement shall not affect the validity
or enforceability of any other provision of the Agreement, which shall remain in full force and effect, and any prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

8.8        Governing
Law.  The validity, interpretation, construction and performance of the Agreement shall in all respects be governed by
the laws of Colorado, without reference to principles of conflict of law, except to the extent pre-empted by federal law.

 

8.9        Withholding.
 All payments to the Employee made in accordance with the provisions of this Agreement shall be subject to applicable withholding
of local, state, federal and foreign taxes and other deductions required or permitted to be made by law, as determined in the sole
discretion of the Company.

 

8.10       Clawback.
Employee agrees to be bound by the provisions of any recoupment or “clawback” policy that the Company may adopt from
time to time that by its terms is applicable to Employee, or by any recoupment or “clawback” that is otherwise required
by law or the listing standards of any exchange on which the Company’s common stock is then traded, including the “clawback”
required by Section 954 of the Dodd-Frank Act.

 

8.11       Indemnification.

 

(a)       Corporate
Acts. In Employee’s capacity as a director, manager, officer, or employee of the Company or serving or having served
any other entity as a director, manager, officer, or employee at the Company’s request, Employee shall be indemnified and
held harmless by the Company to the fullest extent allowed by law, the Company’s Certificate of Incorporation and Bylaws,
from and against any and all losses, claims, damages, liabilities, expenses (including legal fees and expenses), judgments, fines,
settlements and other amounts arising from any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative
or investigative, in which Employee may be involved, or threatened to be involved, as a party or otherwise by reason of Employee’s
status, which relate to or arise out of the Company, their assets, business or affairs, if in each of the foregoing cases, (i)
Employee acted in good faith and in a manner Employee believed to be in the best interests of the Company, and, with respect to
any criminal proceeding, had no reasonable cause to believe Employee’s conduct was unlawful, and (ii) Employee’s conduct
did not constitute gross negligence or willful or wanton misconduct. The Company shall advance all reasonable expenses incurred
by Employee in connection with the investigation, defense, settlement or appeal of any civil or criminal action or proceeding referenced
in this Section, including but not necessarily limited to, reasonable fees of legal counsel, expert witnesses or other litigation-related
expenses.

 

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(b)       Directors
& Officers Insurance. During the Employee’s term of employment and thereafter for six years after the Employee’s
employment terminates, Employee shall be entitled to coverage under the Company’s directors and officers liability insurance
policy and any other insurance policy providing coverage to directors or officers of the Company, subject to the terms of such
policies, in effect at any time in the future to no lesser extent than any other officers or directors of the Company.

 

8.12       Survival
of Provisions. Notwithstanding anything herein to the contrary, the provisions of Sections 4, 5, 6, 7 and 8 of this Agreement
shall survive the expiration of this Agreement and the termination of the employment Term for any reason.

 

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

 

 

	 	PERSHING GOLD CORPORATION
	 	 
	 	By:	 
	 	 	Name: Stephen Alfers
	 	 	Title: Chief Executive Officer, President and Chairman
	 	 	 
	 	 	 
	 	ERIC ALEXANDER
	 	 
	 	 

 

 

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EXHIBIT A

 

GENERAL RELEASE OF CLAIMS

 

This General Release (this “Release”) is entered
into as of this ____ day of ____________, 20__, by and between Pershing Gold Corporation (the “Company”) and _____________________
(the “Employee”) (collectively, the “Parties”).

 

WHEREAS, the Employee is a party to that certain Severance Compensation
Agreement, dated __________________, 2012 (the “Agreement”), governing the terms and conditions applicable to the Employee’s
termination of employment under certain circumstances;

 

WHEREAS, pursuant to the terms of the Agreement, the Company
has agreed to provide the Employee certain benefits and payments under the terms and conditions specified therein, provided that
the Employee has executed and not revoked a general release of claims in favor of the Company;

 

WHEREAS, the Employee’s employment with the Company is
being terminated effective __________ __, 20__; and

 

WHEREAS, the Parties wish to terminate their relationship amicably
and to resolve, fully and finally, all actual and potential claims and disputes relating to the Employee’s employment with
and termination from the Company and all other relationships between the Employee and the Company, up to and including the date
of execution of this Release.

 

NOW, THEREFORE, in consideration of these recitals above and
the promises and mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency
of which are expressly acknowledged, the Parties, intending to be legally bound, agree as follows:

 

		1.	Termination of Employee. The Employee’s employment with the Company shall terminate on __________ __, 20__ (the
“Termination Date”).

 

		2.	Severance Benefits. Pursuant to the terms of the Agreement, and in consideration of the Employee’s release of
claims and the other covenants and agreements contained herein and therein, and provided that the Employee has signed this Release
and delivered it to the Company and has not exercised any revocation rights as provided in Section 6 below, the Company shall provide
the severance benefits described in Section 4 of the Agreement (the “ Benefits ”) in the time and manner provided therein;
provided, however, that the Company’s obligations will be excused if the Employee breaches any of the provisions of the Agreement,
including, without limitation, Section 6 thereof. The Employee acknowledges and agrees that the Benefits constitute consideration
beyond that which, but for the mutual covenants set forth in this Release and the covenants contained in the Agreement, the Company
otherwise would not be obligated to provide, nor would the Employee otherwise be entitled to receive.

 

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		3.	Effective Date. Provided that it has not been revoked pursuant to Section 6 hereof, this Release will become effective
on the eighth (8th) day after the date of its execution by the Employee (the “Effective Date”).

 

		4.	Effect of Revocation. The Employee acknowledges and agrees that if the Employee revokes this Release pursuant to Section
6 hereof, the Employee will have no right to receive the Benefits.

 

		5.	General Release. In consideration of the Company’s obligations, the Employee hereby releases, acquits and forever
discharges the Company and each of its subsidiaries and affiliates and each of their respective officers, employees, directors,
successors and assigns (collectively, the “Released Parties”) from any and all claims, actions or causes of action
in any way related to his employment with the Company or the termination thereof, whether arising from tort, statute or contract,
including, but not limited to, claims of defamation, claims arising under the Employee Retirement Income Security Act of 1974,
as amended, the Age Discrimination in Employment Act of 1967, as amended by the Older Workers Benefit Protection Act of 1990, Title
VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, the Family and Medical Leave Act, the discrimination
and wage payment laws of any state, and any other federal, state or local statutes or ordinances of the United States, it being
the Employee’s intention and the intention of the Company to make this release as broad and as general as the law permits.
The Employee understands that this Release does not waive any rights or claims that may arise after his execution of it and does
not apply to claims arising under the terms of the Agreement with respect to payments the Employee may be owed pursuant to the
terms thereof.

 

		6.	Review and Revocation Period. The Employee acknowledges that the Company has advised the Employee that the Employee
may consult with an attorney of the Employee’s own choosing (and at the Employee’s expense) prior to signing this Release
and that the Employee has been given at least forty-five (45) days during which to consider the provisions of this Release, although
the Employee may sign and return it sooner. The Employee further acknowledges that the Employee has been advised by the Company
that after executing this Release, the Employee will have seven (7) days to revoke this Release, and that this Release shall not
become effective or enforceable until such seven (7) day revocation period has expired. The Employee acknowledges and agrees that
if the Employee wishes to revoke this Release, the Employee must do so in writing, and that such revocation must be signed by the
Employee and received by the Chairman of the Board of the Company (the “Board”) (or the Chair of the Compensation Committee)
no later than 5:00 p.m. Mountain Time on the seventh (7th) day after the Employee has executed this Release. The Employee further
acknowledges and agrees that, in the event that the Employee revokes this Release, the Employee will have no right to receive any
benefits hereunder, including the Benefits. The Employee represents that the Employee has read this Release and understands
its terms and enters into this Release freely, voluntarily and without coercion.

 

    	 	2	 

     

    

 

		7.	Confidentiality, Non-Compete and Non-Solicitation. The Employee reaffirms Employee’s commitments in Section 6
of the Agreement.

 

		8.	Cooperation in Litigation. At the Company’s reasonable request, the Employee shall use good faith efforts to cooperate
with the Company, its affiliates, and each of its and their respective attorneys or other legal representatives (“Attorneys
”) in connection with any claim, litigation or judicial or arbitral proceeding which is material to the Company or its affiliates
and is now pending or may hereinafter be brought against the Released Parties by any third party; provided, that, the Employee’s
cooperation is essential to the Company’s case. The Employee’s duty of cooperation will include, but not be limited
to: (a) meeting with the Company’s and/or its affiliates’ Attorneys by telephone or in person at mutually convenient
times and places in order to state truthfully the Employee’s knowledge of matters at issue and recollection of events; (b)
appearing at the Company’s, its affiliates’ and/or their Attorneys’ request (and, to the extent possible, at
a time convenient to the Employee that does not conflict with the needs or requirements of the Employee’s then-current employer)
as a witness at depositions or trials, without necessity of a subpoena, in order to state truthfully the Employee’s knowledge
of matters at issue; and (c) signing at the Company’s, its affiliates’ and/or their Attorneys’ request, declarations
or affidavits that truthfully state matters of which the Employee has knowledge. The Company shall reimburse the Employee for the
reasonable expenses incurred by him in the course of his cooperation hereunder and shall pay to the Employee per diem compensation
in an amount equal to the daily prorated portion of the Employee’s base salary immediately prior to the Termination Date.
The obligations set forth in this Section 8 shall survive any termination or revocation of this Release.

 

		9.	Non-Admission of Liability. Nothing in this Release will be construed as an admission of liability by the Employee or
the Released Parties; rather, the Employee and the Released Parties are resolving all matters arising out of the employer-employee
relationship between the Employee and the Company and all other relationships between the Employee and the Released Parties.

 

		10.	Nondisparagement. The Employee agrees not to make negative comments or otherwise disparage the Company or its officers,
directors, employees, shareholders or agents, in any manner likely to be harmful to them or their business, business reputation
or personal reputation. The Company agrees that the members of the Board and officers of the Company as of the date hereof will
not, while employed by the Company or serving as a director of the Company, as the case may be, make negative comments about the
Employee or otherwise disparage the Employee in any manner that is likely to be harmful to the Employee’s business or personal
reputation. The foregoing shall not be violated by truthful statements in response to legal process or required governmental testimony
or filings, and the foregoing limitation on the Company’s directors and officers will not be violated by statements that
they in good faith believe are necessary or appropriate to make in connection with performing their duties for or on behalf of
the Company.

 

		11.	Binding Effect. This Release will be binding upon the Parties and their respective heirs, administrators, representatives,
executors, successors and assigns, and will inure to the benefit of the Parties and their respective heirs, administrators, representatives,
executors, successors and assigns.

 

    	 	3	 

     

    

 

		12.	Governing Law. This Release will be governed by and construed and enforced in accordance with the laws of the State
of Colorado applicable to agreements negotiated, entered into and wholly to be performed therein, without regard to its conflicts
of law or choice of law provisions which would result in the application of the law of any other jurisdiction.

 

		13.	Severability. Each of the respective rights and obligations of the Parties hereunder will be deemed independent and
may be enforced independently irrespective of any of the other rights and obligations set forth herein. If any provision of this
Release should be held illegal or invalid, such illegality or invalidity will not affect in any way other provisions hereof, all
of which will continue, nevertheless, in full force and effect.

 

		14.	Counterparts. This Release may be signed in counterparts. Each counterpart will be deemed to be an original, but together
all such counterparts will be deemed a single agreement.

 

		15.	Entire Agreement; Modification. This Release constitutes the entire understanding between the Parties with respect to
the subject matter hereof and may not be modified without the express written consent of both Parties. This Release supersedes
all prior written and/or oral and all contemporaneous oral agreements, understandings and negotiations regarding its subject matter.
This Release may not be modified or canceled in any manner except by a writing signed by both Parties.

 

		16.	Acceptance. The Employee may confirm acceptance of the terms and conditions of this Release by signing and returning
two (2) original copies of this Release to the Chairman of the Board, no later than 5:00 p.m. Mountain Time forty five (45) days
after the Employee’s Termination Date.

 

THE EMPLOYEE ACKNOWLEDGES AND REPRESENTS THAT THE EMPLOYEE HAS
FULLY AND CAREFULLY READ THIS RELEASE PRIOR TO SIGNING IT AND UNDERSTANDS ITS TERMS. THE EMPLOYEE FURTHER ACKNOWLEDGES AND AGREES
THAT THE EMPLOYEE HAS BEEN, OR HAS HAD THE OPPORTUNITY TO BE, ADVISED BY INDEPENDENT LEGAL COUNSEL OF THE EMPLOYEE’S OWN
CHOICE AS TO THE LEGAL EFFECT AND MEANING OF EACH OF THE TERMS AND CONDITIONS OF THIS RELEASE, AND IS ENTERING INTO THIS RELEASE
FREELY AND VOLUNTARILY AND NOT IN RELIANCE ON ANY PROMISES OR REPRESENTATIONS OTHER THAN AS SET FORTH IN THIS RELEASE.

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF, the Company and the Employee have duly executed
this Release as of the date first above written.

 

	 	PERSHING GOLD CORPORATION
	 	 
	 	By:	 
	 	 	Name: Stephen Alfers
	 	 	Title: Chief Executive Officer, President and Chairman
	 	 	 
	 	 	 
	 	ERIC ALEXANDER
	 	 
	 	 

 

 

    	 	5Exhibit

Exhibit 4.3

MENLO THERAPEUTICS INC.
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT
THIS SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (this “Agreement”) is made as of June 28, 2017, by and among Menlo Therapeutics Inc., a Delaware corporation (the “Company”) and the investors listed on Schedule A hereto (each an “Investor” and collectively the “Investors”).
RECITALS
Certain of the Investors are existing stockholders of the Company (the “Prior Investors”) and hold shares of Series A Preferred Stock of the Company (the “Series A Preferred Stock”) and/or shares of Series B Preferred Stock of the Company (the “Series B Preferred Stock”) and/or shares of Common Stock of the Company and are parties to that certain Amended and Restated Investors’ Rights Agreement, dated as of November 30, 2015, by and among the Company and such Prior Investors (the “Prior Agreement”) and constitute the Requisite Majority (as defined in the Prior Agreement).
Certain of the Investors and the Company are parties to that certain Series C Preferred Stock Purchase Agreement, dated as of the date hereof (the “Series C Purchase Agreement”) relating to the issue and sale of shares of Series C Preferred Stock of the Company (the “Series C Preferred Stock,” and together with the Series A Preferred Stock and the Series B Preferred Stock, the “Preferred Stock”).
The obligations of the Company and such Investors under the Series C Purchase Agreement are conditioned, among other things, upon the execution and delivery of this Agreement by such Investors, the Prior Investors and the Company and the Prior Investors and the Company desire to amend the restate the Prior Agreement as provided herein.
NOW, THEREFORE, in consideration of the mutual premises and covenants set forth herein, the Company and the Prior Investors hereby agree to amend and restate the Prior Agreement as set forth herein, and the parties hereto agree as follows:
1.Registration Rights. The Company covenants and agrees as follows:
1.1    Definitions. For purposes of this Agreement:
(a)    The term “Act” means the Securities Act of 1933, as amended.
(a)    The term “Affiliate” means, with respect to any specified Person, any other Person who or which, directly or indirectly, controls, is controlled by, or is under common control with such specified Person, including, without limitation, any general partner, limited partner, member, managing member, officer, director, employee or manager of such Person and any venture capital fund or limited liability company now or hereafter existing that is controlled by one or more general partners or managing members of, or is under common investment management with, such Person.  For purposes of the definition, (a) the term 

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“control” when used with respect to any Person shall mean the power to direct the management or policies of such Person, directly or indirectly, whether through ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” shall have meanings correlative to the foregoing, and (b) the term “Person” means any individual, partnership, limited liability company, joint venture, corporation, association, trust or any other entity or organization.
(b)    The term “Free Writing Prospectus” means a free-writing prospectus, as defined in Rule 405.
(c)    The term “Form S‐3” means such form under the Act as in effect on the date hereof or any registration form under the Act subsequently adopted by the SEC that permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC.
(d)    The term “Holder” means any person owning or having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 1.11 hereof.
(e)    The term “Initial Offering” means the Company’s first firm commitment underwritten public offering of its Common Stock under the Act.
(f)    The term “1934 Act” means the Securities Exchange Act of 1934, as amended.
(g)    The term “Qualified Public Offering” shall mean the first firm commitment underwritten public offering of securities of the Company pursuant to an effective registration statement under the Act (other than a registration statement relating either to the sale of securities to employees of the Company pursuant to a stock option, stock purchase or similar plan or an SEC (as defined below) Rule 145 transaction) at a price per share of not less than $6.38 (appropriately adjusted for recapitalizations, stock splits, stock dividends, combinations and the like (“Recapitalizations”) effected after the date hereof) and with gross proceeds (before deduction of commissions and expenses) to the Company of more than $40,000,000.
(h)    The terms “register,” “registered,” and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Act, and the declaration or ordering of effectiveness of such registration statement or document.
(i)    The term “Registrable Securities” means (i) the Common Stock issuable or issued upon conversion of the Company’s Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, (ii) the Common Stock held by the Investors who are holders of Series A Preferred Stock and (iii) any Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security that is issued as) a dividend or other distribution with respect to, or in exchange for, or in replacement of, the shares referenced in (i) (ii) and (iii) above, excluding in all cases, however, any Registrable 

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Securities sold by a person in a transaction in which his rights under this Section 1 are not assigned.
(j)    The number of shares of Registrable Securities outstanding shall be determined by the number of shares of Common Stock outstanding that are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities that are, Registrable Securities.
(k)    The term “Certificate of Incorporation” shall mean the Company’s Certificate of Incorporation, as amended and/or restated from time to time.
(l)    The term “Rule 144” shall mean Rule 144 under the Act.
(m)    The term “Rule 145” shall mean Rule 145 under the Act.
(n)    The term “SEC” shall mean the Securities and Exchange Commission.
1.2    Request for Registration.
(a)    Subject to the conditions of this Section 1.2, if the Company shall receive at any time after the earlier of (i) four (4) years after the date of this Agreement or (ii) six (6) months after the effective date of the Initial Offering, a written request from the Holders of at least fifty percent (50%) of the Registrable Securities outstanding (for purposes of this Section 1.2, the “Initiating Holders”) that the Company file a registration statement under the Act covering the registration of Registrable Securities with an anticipated aggregate offering price of at least $10,000,000, then the Company shall, within twenty (20) days of the receipt thereof, give written notice of such request to all Holders, and subject to the limitations of this Section 1.2, use its reasonable best efforts to, as soon as practicable, file a registration statement under the Act with respect to all of the Registrable Securities that the Holders request to be registered in a written request received by the Company within twenty (20) days of the mailing of the Company’s notice pursuant to this Section 1.2(a), and use reasonable best efforts to cause such registration statement to be declared effective by the SEC as soon as practicable.
(b)    If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 1.2 and the Company shall include such information in the written notice referred to in Section 1.2(a).  In such event the right of any Holder to include its Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein.  All Holders proposing to distribute their securities through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by the Company (which underwriter or underwriters shall be reasonably acceptable to a majority in interest of the Initiating Holders).  Notwithstanding any other provision of this Section 1.2, if 

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the underwriter advises the Company that marketing factors require a limitation on the number of securities underwritten (including Registrable Securities), then the Company shall so advise all Holders of Registrable Securities that would otherwise be underwritten pursuant hereto, and the number of shares that may be included in the underwriting shall be allocated to the Holders of such Registrable Securities pro rata based on the number of Registrable Securities held by all such Holders (including the Initiating Holders).  In no event shall any Registrable Securities be excluded from such underwriting unless all other securities are first excluded.  Any Registrable Securities excluded or withdrawn from such underwriting shall be withdrawn from the registration.
(c)    Notwithstanding the foregoing, the Company shall not be required to effect a registration pursuant to this Section 1.2:
(i)    in any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, unless the Company is already subject to service in such jurisdiction and except as may be required under the Act; or
(ii)    after the Company has effected two (2) registrations pursuant to this Section 1.2, and such registrations have been declared or ordered effective; or
(iii)    during the period starting with the date of the filing of and ending on a date one hundred eighty (180) days following the effective date of a Company‐initiated registration subject to Section 1.3 below, provided that the Company is actively employing in good faith reasonable best efforts to cause such registration statement to become effective; or
(iv)    if the Initiating Holders propose to dispose of Registrable Securities that may be registered on Form S‐3 pursuant to Section 1.4 hereof; or 
(v)    if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 1.2 a certificate signed by the Company’s Chief Executive Officer or Chairman of the Board stating (A) that the Company intends to file a registration statement for its Initial Offering within one hundred twenty (120) days following the date of the initial request for registration made by the Initiating Holders pursuant to this Section 1.2 or (B) that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such registration statement to be effected at such time, in which event the Company shall have the right to defer such filing for a period of not more than one hundred twenty (120) days after receipt of the request of the Initiating Holders, provided that such right shall be exercised by the Company not more than once in any twelve (12)‐month period and provided further that the Company shall not register any securities for the account of itself or any other stockholder during such one hundred twenty (120) day period (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate reorganization or transaction under Rule 145 of the Act, a registration on any form that does not include substantially the same information as would be required to be included in a registration statement 

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covering the sale of the Registrable Securities, or a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered).
1.3    Company Registration.
(a)    If (but without any obligation to do so) the Company proposes to register (including for this purpose a registration effected by the Company for stockholders other than the Holders that has been expressly approved by the Holders pursuant to Section 1.12) any of its stock or other securities under the Act in connection with the public offering of such securities (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate reorganization or transaction under Rule 145 of the Act, a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities, or a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered), the Company shall, at such time, promptly give each Holder written notice of such registration.  Upon the written request of each Holder given within twenty (20) days after mailing of such notice by the Company in accordance with Section 1.3(c), the Company shall, subject to the provisions of Section 1.3(c), use reasonable best efforts to cause to be registered under the Act all of the Registrable Securities that each such Holder requests to be registered.
(b)    Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 1.3 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration.  The expenses of such withdrawn registration shall be borne by the Company in accordance with Section 1.7 hereof.
(c)    Underwriting Requirements. In connection with any offering involving an underwriting of shares of the Company’s capital stock, the Company shall not be required under this Section 1.3 to include any of the Holders’ securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters selected by the Company (or by other persons entitled to select the underwriters) and enter into an underwriting agreement in customary form with such underwriters, and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company.  If the total amount of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the amount of securities sold other than by the Company that the underwriters determine in their sole discretion is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, that the underwriters determine in their sole discretion will not jeopardize the success of the offering.  The Company shall not, without the prior written consent of the holders of at least a majority of the Registrable Securities then held by the Investors exclude any Registrable Securities from such offering unless all other stockholders’ securities have been first excluded.  In the event that the underwriters determine that less than all of the Registrable Securities requested to be 

5

registered can be included in such offering, then the Registrable Securities that are included in such offering shall be apportioned first, to the Company; second, to the Investors on a pro rata basis based on the total number of Registrable Securities held by such Investors; and third, to any stockholder of the Company (other than a Holder) on a pro rata basis so long as the number of Registrable Securities held by the Holders is not reduced.  Notwithstanding the foregoing, in no event shall the amount of securities of the selling Investors included in the offering be reduced below thirty percent (30%) of the total amount of securities included in such offering, unless such offering is the initial public offering of the Company’s securities, in which case the selling Holders may be excluded if the underwriters make the determination described above and no other stockholder’s securities are included in such offering.  For purposes of the preceding sentence concerning apportionment, for any selling stockholder that is a Holder of Registrable Securities and that is a venture capital fund, limited liability company, partnership or corporation, the affiliated venture capital funds, members, partners, retired partners and stockholders of such Holder together with any Affiliates of such Holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling Holder,” and any pro rata reduction with respect to such “selling Holder” shall be based upon the aggregate amount of Registrable Securities owned by all such related entities and individuals.
1.4    Form S‐3 Registration. In case the Company shall receive from the Holders (for purposes of this Section 1.4, the “Initiating Holders”) a written request or requests that the Company effect a registration on Form S‐3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Initiating Holder or Initiating Holders, the Company shall:
(a)    promptly give written notice of the proposed registration, and any related qualification or compliance, to all other Holders; and
(b)    use reasonable best efforts to effect, as soon as practicable, such registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other Holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice from the Company, provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to this Section 1.4:  
(i)    if Form S‐3 is not available for such offering by the Holders;
(ii)    if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public (net of any underwriters’ discounts or commissions) of less than $1,000,000;

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(iii)    if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 1.4 a certificate signed by the Company’s Chief Executive Officer or Chairman of the Board stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such registration statement to be effected at such time, in which event the Company shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of the request of the Initiating Holders, provided that such right shall be exercised by the Company not more than once in any twelve (12)‐month period and provided further that the Company shall not register any securities for the account of itself or any other stockholder during such ninety (90) day period (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate reorganization or transaction under Rule 145 of the Act, a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities, or a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered);
(iv)    if the Company has, within the twelve (12) month period preceding the date of such request, already effected two registrations on Form S‐3 for the Holders pursuant to this Section 1.4; or
(v)    in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance.
(c)    If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 1.4 and the Company shall include such information in the written notice referred to in Section 1.4(a).  The provisions of Section 1.2(b) shall be applicable to such request (with the substitution of Section 1.4 for references to Section 1.2). 
(d)    Subject to the foregoing, the Company shall use reasonable best efforts to file a registration statement covering the Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the request or requests of the Initiating Holders.  Registrations effected pursuant to this Section 1.4 shall not be counted as requests for registration effected pursuant to Sections 1.2.
1.5    Obligations of the Company.  Whenever required under this Section 1 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:
(a)    prepare and file with the SEC a registration statement with respect to such Registrable Securities and use reasonable best efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to 

7

ninety (90) days or, if earlier, until the distribution contemplated in the Registration Statement has been completed;
(b)    prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Act with respect to the disposition of all securities covered by such registration statement;
(c)    furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus and any Free Writing Prospectus, in conformity with the requirements of the Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them;
(d)    use reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions;
(e)    in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering;
(f)    notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus or Free Writing Prospectus (to the extent prepared by or on behalf of the Company) relating thereto is required to be delivered under the Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, and, at the request of any such Holder, the Company will, as soon as reasonably practicable, file and furnish to all such Holders a supplement or amendment to such prospectus or Free Writing Prospectus (to the extent prepared by or on behalf of the Company) so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading in light of the circumstances under which they were made;
(g)    cause all such Registrable Securities registered pursuant to this Section 1 to be listed on a national exchange or trading system and on each securities exchange and trading system on which similar securities issued by the Company are then listed;
(h)    provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration; and 

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(i)    use reasonable best efforts to furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this Section 1, on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 1, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, (i) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, and (ii) a “comfort” letter, dated as of such date, from the independent certified public accountants of the Company, in each case in form and substance as is customarily given to underwriters in an underwritten public offering and reasonably satisfactory to a majority in interest of the Holders requesting registration, addressed to the underwriters and to the Holders requesting registration of Registrable Securities. 
Notwithstanding the provisions of this Section 1, the Company shall be entitled to postpone or suspend, for a reasonable period of time, the filing, effectiveness or use of, or trading under, any registration statement if the Company shall determine that any such filing or the sale of any securities pursuant to such registration statement would in the good faith unanimous judgment of the Board of Directors of the Company:
(i)    materially impede, delay or interfere with any material pending or proposed financing, acquisition, corporate reorganization or other similar transaction involving the Company for which the Board of Directors of the Company has authorized negotiations;
(ii)    materially adversely impair the consummation of any pending or proposed material offering or sale of any class of securities by the Company; or
(iii)    require disclosure of material nonpublic information that, if disclosed at such time, would be materially harmful to the interests of the Company and its stockholders; provided, however, that during any such period all executive officers and directors of the Company are also prohibited from selling securities of the Company (or any security of any of the Company’s subsidiaries or affiliates).
In the event of the suspension of effectiveness of any registration statement pursuant to this Section 1.5, the applicable time period during which such registration statement is to remain effective shall be extended by that number of days equal to the number of days the effectiveness of such registration statement was suspended.
1.6    Information from Holder.  It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be reasonably required to effect the registration of such Holder’s Registrable Securities.
1.7    Expenses of Registration.  All expenses other than underwriting discounts and commissions incurred in connection with registrations, filings or qualifications pursuant to 

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Sections 1.2, 1.3 and 1.4, including (without limitation) all registration, filing and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company and the reasonable fees and disbursements not to exceed $35,000 of one counsel for the selling Holders shall be borne by the Company.  Notwithstanding the foregoing, the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 1.2 or Section 1.4 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all participating Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless, in the case of a registration requested under Section 1.2 or Section 1.4, the Holders of at least a majority of the Registrable Securities then held by the Investors agree to forfeit their right to one demand registration pursuant to Section 1.2 or Section 1.4 and provided, however, that if at the time of such withdrawal, the Holders have learned of a material adverse change in the condition, business or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness following disclosure by the Company of such material adverse change, then the Holders shall not be required to pay any of such expenses and shall retain their rights pursuant to Section 1.2 and 1.4.  
1.8    Delay of Registration.  No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 1.
1.9    Indemnification.  In the event any Registrable Securities are included in a registration statement under this Section 1:
(a)    To the extent permitted by law, the Company will indemnify and hold harmless each Holder, the partners, members, officers, directors and stockholders of each Holder, legal counsel and accountants for each Holder, any underwriter (as defined in the Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Act or the 1934 Act, against any losses, claims, damages or liabilities (joint or several) to which they may become subject under the Act, the 1934 Act, any state securities laws or any rule or regulation promulgated under the Act, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”):  (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus, final prospectus or Free Writing Prospectus contained therein or any amendments or supplements thereto, any issuer information (as defined in Rule 433 of the Act) filed or required to be filed pursuant to Rule 433(d) under the Act or any other document incident to such registration prepared by or on behalf of the Company or used or referred to by the Company, (ii) the omission or alleged omission to state in such registration statement a material fact required to be stated therein, or necessary to make the statements therein not misleading or (iii) any violation or alleged violation by the Company of the Act, the 1934 Act, any state securities laws or any rule or regulation promulgated under the Act, the 1934 Act or any state securities laws,  and the Company will reimburse each such Holder, underwriter, controlling person or other aforementioned person for any legal or other expenses reasonably incurred by 

10

them in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the indemnity agreement contained in this subsection 1.9(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case with respect to a specific Holder for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation that occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder, underwriter, controlling person or other aforementioned person.
(b)    To the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Act, legal counsel and accountants for the Company, any underwriter, any other Holder selling securities in such registration statement and any controlling person of any such underwriter or other Holder, against any losses, claims, damages or liabilities (joint or several) to which any of the foregoing persons may become subject, under the Act, the 1934 Act, any state securities laws or any rule or regulation promulgated under the Act, the 1934 Act or any state securities laws, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such Holder will reimburse any person intended to be indemnified pursuant to this subsection 1.9(b) for any legal or other expenses reasonably incurred by such person in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the indemnity agreement contained in this subsection 1.9(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder (which consent shall not be unreasonably withheld), and provided that in no event shall any indemnity under this subsection 1.9(b), when aggregated with any contribution obligation under Section 1.9(d), exceed the net proceeds from the offering received by such Holder.
(c)    Promptly after receipt by an indemnified party under this Section 1.9 of notice of the commencement of any action (including any governmental action) for which a party may be entitled to indemnification, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.9, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall 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 (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding.  The 

11

failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of liability to the indemnified party under this Section 1.9 to the extent of such prejudice, but the omission to so 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 1.9.
(d)    If the indemnification provided for in this Section 1.9 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and the indemnified party on the other hand in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations; provided, however, that no contribution by any Holder, when combined with any amounts paid by such Holder pursuant to Section 1.9(b), shall exceed the net proceeds from the offering received by such Holder.  The relative fault of the indemnifying party and the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged 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.
(e)    Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.
(f)    The obligations of the Company and Holders under this Section 1.9 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1 and otherwise.
1.10    Reports Under the 1934 Act. With a view to making available to the Holders the benefits of Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S‐3, the Company agrees to:
(a)    make and keep public information available, as those terms are understood and defined in Rule 144, at all times after the effective date of the Initial Offering;
(b)    file with the SEC in a timely manner all reports and other documents required of the Company under the Act and the 1934 Act; and
(c)    furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied 

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with the reporting requirements of Rule 144 (at any time after ninety (90) days after the effective date of the first registration statement filed by the Company), the Act and the 1934 Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S‐3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to avail any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration or pursuant to such form.
1.11    Assignment of Registration Rights. The rights to cause the Company to register Registrable Securities pursuant to this Section 1 may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of such securities that (i) is an Affiliate, member, subsidiary, parent, partner, limited partner, retired partner or stockholder of a Holder, (ii) is a Holder’s family member or trust for the benefit of an individual Holder, or (iii) after such assignment or transfer, holds at least 350,000 shares of Registrable Securities (subject to appropriate adjustment for Recapitalizations), provided:  (a) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned; (b) such transferee or assignee agrees in writing to be bound by and subject to the terms and conditions of this Agreement, including, without limitation, the provisions of Section 2 below; and (c) such assignment shall be effective only if immediately following such transfer the further disposition of such securities by the transferee or assignee is restricted under the Act.
1.12    Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior written consent of the Investors holding at least a majority of the then outstanding Registrable Securities, enter into any agreement with any holder or prospective holder of any securities of the Company that would allow such holder or prospective holder (a) to include any of such securities in any registration filed under Section 1.2, 1.3 or 1.4 hereof, unless under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of such securities will not reduce the amount of the Registrable Securities of the Holders that are included, (b) to demand registration of their securities or (c) to exercise other registration rights that are pari passu or senior to those granted to the Holders hereunder. 
1.13    Termination of Registration Rights. No Holder shall be entitled to exercise any right provided for in this Section 1 (a) after five (5) years following the consummation of the Qualified Public Offering, (b) as to any Holder, such earlier time after the Qualified Public Offering at which all Registrable Securities held by such Holder (together with any Affiliate of the Holder with whom such Holder must aggregate its sales under Rule 144) can be sold in any ninety (90) day period without registration in compliance with Rule 144 or (c) upon the consummation of a transaction or series of related transactions which are deemed to be a liquidation, dissolution or winding up of the Company pursuant to the Certificate of Incorporation.

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2.    “Market Stand-Off” Agreement.
2.1    Each Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the Company’s Initial Offering and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (l80) days plus such additional period as may reasonably be requested by the Company or such underwriter to accommodate regulatory restrictions on (i) the publication or other distribution of research reports or (ii) analyst recommendations and opinions, including (without limitation) the restrictions set forth in FINRA Rule 2241 or any similar successor rules) (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock held immediately prior to the effectiveness of the Registration Statement for such offering, or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash or otherwise.  The foregoing provisions of this Section 2.1 shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, and shall only be applicable to the Holders if all officers, directors and greater than one percent (1%) stockholders of the Company enter into similar agreements.  The underwriters in connection with the Company’s Initial Offering are intended third party beneficiaries of this Section 2.1 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto.  Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in the Company’s Initial Offering that are consistent with this Section 2.1 or that are necessary to give further effect thereto.
In order to enforce the foregoing covenant, the Company may impose stop transfer instructions with respect to the Registrable Securities of each Holder (and the shares or securities of every other person subject to the foregoing restriction) until the end of such period.  
2.2    Each Holder agrees that a legend reading substantially as follows shall be placed on all certificates representing all Registrable Securities of each Holder (and the shares or securities of every other person subject to the restriction contained in this Section 2):
THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP PERIOD OF UP TO 180 DAYS AFTER THE EFFECTIVE DATE OF THE ISSUER’S REGISTRATION STATEMENT FILED UNDER THE ACT, AS AMENDED, AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE SECURITIES, A COPY OF WHICH MAY BE OBTAINED AT THE ISSUER’S PRINCIPAL OFFICE.  SUCH LOCK-UP PERIOD IS BINDING ON TRANSFEREES OF THESE SHARES.

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3.    Covenants of the Company.
3.1    Delivery of Financial Statements.  The Company shall deliver to each Investor that continues to hold at least 20,000 shares of Registrable Securities (each a “Major Investor”) (appropriately adjusted for any Recapitalizations):
(a)    as soon as practicable, but in any event within one hundred twenty (120) days after the end of each fiscal year of the Company, or such longer time as approved by the Board of Directors of the Company, an audited income statement for such fiscal year, an audited balance sheet of the Company and statement of stockholder’s equity as of the end of such year, and an audited statement of cash flows for such year, all such financial statements audited and certified by independent public accountants of nationally recognized standing selected by the Company;
(b)    as soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of each fiscal year of the Company, an unaudited income statement, statement of cash flows for such fiscal quarter and an unaudited balance sheet as of the end of such fiscal quarter, all prepared in accordance with generally accepted accounting principles in the United Stated (“GAAP”) (except that such financial statements may (i) be subject to normal year-end audit adjustments; and (ii) not contain all notes thereto that may be required in accordance with GAAP);
(c)    within thirty (30) days prior to the beginning of each fiscal year, a budget and business plan for the next fiscal year, prepared on a monthly basis, including balance sheets, income statements and statements of cash flows for such months and, as soon as prepared, any other budgets or revised budgets prepared by the Company;
(d)    as soon as practicable, but in any event within forty-five (45) days after the end of each of the first three (3) quarters of each fiscal year of the Company, a statement showing the number of shares of each class and series of capital stock and securities convertible into or exercisable for shares of capital stock outstanding at the end of the period (including a description of such capital stock and exchange ratio or exercise price applicable thereto) and the number of shares of issued options and options not yet issued but reserved for issuance, if any, all in sufficient detail as to permit the Major Investors to calculate their respective percentage equity ownership in the Company;
(e)    as soon as practicable, but in any event thirty (30) days before the end of each fiscal year (or at such other time as approved by the Board of Directors), a budget and business plan for the next fiscal year (collectively, the “Budget”), approved by the Board of Directors and prepared on a monthly basis, including balance sheets, income statements, and statements of cash flow for such months and, promptly after prepared, any other budgets or revised budgets prepared by the Company; and
(f)    such other information relating to the financial condition, business, prospects, or corporate affairs of the Company as any Major Investor may from time to time reasonably request; provided, however, that the Company shall not be obligated under this 

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Section 3.1 to provide information (i) that the Company reasonably determines in good faith to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in a form acceptable to the Company); or (ii) the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.
3.2    Inspection.  The Company shall permit each Investor that continues to hold shares of capital stock of the Company, at such Investor’s expense, and upon reasonable notice, during normal business hours, to visit and inspect the Company’s properties, to examine its books of account and records and to discuss the Company’s affairs, finances and accounts with its officers, all at such reasonable times as may be reasonably requested by the Investor; provided, however, that the Company shall not be obligated pursuant to this Section 3.2 to provide access to any information that it reasonably and in good faith considers to be a trade secret or similar confidential information or the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.
3.3    Confidentiality.  Each Investor acknowledges that the information received by them pursuant to this Agreement may be confidential and for its use only, and it will not use such confidential information in violation of the Exchange Act or reproduce, disclose or disseminate such information to any other person (other than its employees or agents having a need to know the contents of such information, and its attorneys), except in connection with the exercise of rights under this Agreement; provided however, such Investor may disclose such proprietary or confidential information (i) to its attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company, (ii) to any existing or prospective partner, affiliate, member, employee, stockholder or subsidiary or parent of such Investor as long as such partner, member, employee, stockholder, subsidiary or parent is advised of and agrees or has agreed to be bound by the confidentiality provisions of this Section 3.3 or comparable restrictions; (iii) at such time as it enters the public domain through no fault of such Investor; (iv) that is communicated to it free of any obligation of confidentiality; (v) that is developed by Investor or its agents independently of and without reference to any confidential information communicated by the Company; or (vi) as required by applicable law.
3.4    Right of First Offer.  Subject to the terms and conditions specified in this Section 3.4, the Company hereby grants to each Investor holding at least 705,300 shares of Series B Preferred Stock or 350,000 shares of Series C Preferred Stock (each as appropriately adjusted for any Recapitalizations) (an “Eligible Investor”) a right of first offer with respect to future sales by the Company of its Shares (as hereinafter defined).  For purposes of this Section 3.4, Eligible Investor includes any general partners, members and Affiliates of an Eligible Investor.  An Eligible Investor shall be entitled to apportion the right of first offer hereby granted it among itself and its partners, members and Affiliates in such proportions as it deems appropriate, so long as such apportionment does not cause the loss of the exemption under Section 4(2) of the Act or any similar exemption under applicable state securities laws in connection with such sale of Shares by the Company.

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Each time the Company proposes to offer any shares of, or securities convertible into or exchangeable or exercisable for any shares of, any class of its capital stock (the “Shares”), the Company shall first make an offering of such Shares to each Eligible Investor in accordance with the following provisions:
(a)    The Company shall deliver a notice in accordance with Section 5.6 (the “Notice”) to the Eligible Investors stating (i) its bona fide intention to offer such Shares, (ii) the number of such Shares to be offered, and (iii) the price, terms and conditions upon which it proposes to offer such Shares.
(b)    By written notification received by the Company, within twenty-five (25) calendar days after receipt of the Notice, each Eligible Investor may elect to purchase or obtain, at the price and on the terms specified in the Notice, up to that portion of such Shares that equals the proportion that the number of shares of Common Stock issued and held, or issuable upon conversion of the Preferred Stock held by such Eligible Investor bears to the total number of shares of Common Stock of the Company then outstanding (assuming full conversion and exercise of all outstanding convertible and exercisable securities).  The Company shall promptly, in writing, inform each Eligible Investor which purchases all the shares available to it (“Fully-Exercising Eligible Investor”) of any other Investor’s failure to do likewise.  During the ten (10) day period commencing after receipt of such information, each Fully-Exercising Eligible Investor shall be entitled to obtain that portion of the Shares for which Eligible Investors were entitled to subscribe but which were not subscribed for by the Eligible Investors that is equal to the proportion that the number of shares of Common Stock issued and held, or issuable upon the conversion of Preferred Stock then held, by such Fully-Exercising Eligible Investor bears to the total number of shares of Common Stock issued and held, or issuable upon conversion of Preferred Stock then held, by all Fully-Exercising Eligible Investors who wish to purchase some of the unsubscribed shares.
(c)    If all Shares that Eligible Investors are entitled to obtain pursuant to Section 3.4(b) are not elected to be obtained as provided in Section 3.4(b) hereof, the Company may, during the ninety (90) day period following the expiration of the period provided in Section 3.4(b) hereof, offer the remaining unsubscribed portion of such Shares to any person or persons at a price not less than, and upon terms no more favorable to the offeree than those specified in the Notice.  If the Company does not enter into an agreement for the sale of the Shares within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such Shares shall not be offered unless first reoffered to the Eligible Investors in accordance herewith.
(d)    The right of first offer in this Section 3.4 shall not be applicable to (i) the issuance or sale of Series C Shares to Series C Investors in accordance with the Series C Purchase Agreement, (ii) Exempted Securities (as defined in the Certificate of Incorporation), and (iii) shares of Common Stock issued in the Initial Offering; 
In addition to the foregoing, the right of first offer in this Section 3.4 shall not be applicable with respect to any Eligible Investor and any subsequent securities issuance, if (i) at the time of such subsequent securities issuance, the Eligible Investor is not an “accredited investor,” as that term 

17

is then defined in Rule 501(a) under the Act, and (ii) such subsequent securities issuance is otherwise being offered only to accredited investors.
(e)    The right of first offer set forth in this Section 3.4 may not be assigned or transferred, except that such right may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of such securities that (i) is an Affiliate, subsidiary, parent, partner, limited partner, retired partner, member or stockholder of a Holder, (ii) is a Holder’s family member or trust for the benefit of an individual Holder, or (iii) after such assignment or transfer, holds at least 350,000 shares of Registrable Securities (subject to appropriate adjustment for Recapitalizations).
3.5    Proprietary Information and Inventions Agreements.  The Company shall require all of its employees and consultants to enter into the Company’s standard form of proprietary information and inventions agreement.
3.6    Expenses of Board Members.  The Company shall reimburse all non-employee directors for their reasonable out of pocket expenses related to (i) attending meetings of the Board of Directors of the Company and any committees thereof, and (ii) attending any other events at the express request of the Company, in each case in accordance with the Company’s travel policy.
3.7    Observer Rights.  The Company shall invite one representative of Vivo Capital Fund VIII, L.P. or its Affiliates (collectively, “Vivo”) and one representative of Merck Sharp & Dohme Corp. to attend all meetings of its Board of Directors in a nonvoting observer capacity and, in this respect, shall give each such representative copies of all notices, minutes, consents, and other materials that it provides to its directors at the same time and in the same manner as provided to such directors; provided, however, that each such representative shall agree to hold in confidence and trust and to act in a fiduciary manner with respect to all information so provided; and provided further, that the Company reserves the right to withhold any information and to exclude any such representative from any meeting or portion thereof if access to such information or attendance at such meeting could adversely affect the attorney-client privilege between the Company and its counsel or result in a conflict of interest.
3.8    Termination of Certain Covenants.  The covenants set forth in this Section 3 (other than Section 3.3) shall terminate and be of no further force or effect upon the consummation of the Initial Offering or at such time as the Company is required to file reports pursuant to Section 13 or 15(d) of the 1934 Act.  This Agreement shall terminate and be of no further force or effect upon the consummation of a transaction or series of related transactions which are deemed to be “Liquidation Event” pursuant to the Certificate of Incorporation.
4.    Additional Covenants.Insurance.  The Company shall use its commercially reasonable efforts to obtain, within ninety (90) days of the date hereof, from financially sound and reputable insurers Directors and Officers liability insurance, in an amount and on terms and conditions satisfactory to the Board of Directors, including a majority of the Preferred Directors (as defined in the Certificate of Incorporation), and will use commercially reasonable efforts to cause such insurance policies to be maintained until such time as the Board of Directors, 

18

including a majority of the Preferred Directors, determines that such insurance should be discontinued.
4.3    Employee Stock.  Unless otherwise approved by the Board of Directors, including a majority of the Preferred Directors, all future employees and consultants of the Company who purchase, receive options to purchase, or receive awards of shares of the Company’s capital stock after the date hereof shall be required to execute restricted stock or option agreements, as applicable, providing for (i) vesting of shares over a four (4) year period, with the first twenty-five percent (25%) of such shares vesting following twelve (12) months of continued employment or service, and the remaining shares vesting in equal monthly installments over the following thirty-six (36) months, and (ii) a market stand-off provision substantially similar to that in Section 2.1.  In addition, unless otherwise approved by the Board of Directors, including a majority of the Preferred Directors, the Company shall retain a “right of first refusal” on employee transfers until the Company’s Initial Offering and shall have the right to repurchase unvested shares at cost upon termination of employment of a holder of restricted stock.Qualified Small Business Stock.  The Company shall use commercially reasonable efforts to cause the shares of Series C Preferred Stock issued pursuant to the Series C Purchase Agreement, as well as any shares into which such shares are converted, within the meaning of Section 1202(f) of the Internal Revenue Code (the “Code”), to constitute “qualified small business stock” as defined in Section 1202(c) of the Code; provided, however, that such requirement shall not be applicable if the Board of Directors of the Company determines, in its good-faith business judgment, that such qualification is inconsistent with the best interests of the Company.  The Company shall submit to its stockholders (including the Investors) and to the Internal Revenue Service any reports that may be required under Section 1202(d)(1)(C) of the Code and the regulations promulgated thereunder.  In addition, within twenty (20) business days after any Investor’s written request therefor, the Company shall, at its option, either (i) deliver to such Investor a written statement indicating whether (and what portion of) such Investor’s interest in the Company constitutes “qualified small business stock” as defined in Section 1202(c) of the Code or (ii) deliver to such Investor such factual information in the Company’s possession as is reasonably necessary to enable such Investor to determine whether (and what portion of) such Investor’s interest in the Company constitutes “qualified small business stock” as defined in Section 1202(c) of the Code.
5.    Miscellaneous.
5.1    Successors and Assigns.  Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties (including transferees of any shares of Registrable Securities).  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.
5.2    Governing Law; Venue.  This Agreement is to be construed in accordance with and governed by the internal laws of the State of Delaware without giving effect to any 

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choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Delaware to the rights and duties of the parties.  All disputes and controversies arising out of or in connection with this Agreement shall be resolved exclusively by the state and federal courts located in San Francisco County in the State of California, and each party hereto agrees to submit to the jurisdiction of said courts and agrees that venue shall lie exclusively with such courts.
5.3    Specific Enforcement.  Each party hereto agrees that its obligations hereunder are necessary and reasonable in order to protect the other parties to this Agreement, and each party expressly agrees and understands that monetary damages would inadequately compensate an injured party for the breach of this Agreement by any party, that this Agreement shall be specifically enforceable, and that, in addition to any other remedies that may be available at law, in equity or otherwise, any breach or threatened breach of this Agreement shall be the proper subject of a temporary or permanent injunction or restraining order, without the necessity of proving actual damages.  Further, each party hereto waives any claim or defense that there is an adequate remedy at law for such breach or threatened breach.
5.4    Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
5.5    Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
5.6    Notices.  Except as may be otherwise provided herein, all notices, requests, waivers and other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (a) when hand delivered to the other party; (b) when sent by facsimile to the number set forth below if sent between 8:00 a.m. and 5:00 p.m. recipient’s local time on a business day, or on the next business day if sent by facsimile to the number set forth below if sent other than between 8:00 a.m. and 5:00 p.m. recipient’s local time on a business day, or when sent by electronic mail to the address set forth below if sent between 8:00 am and 5:00 pm recipient’s local time on a business day, or on the next business day if sent by electronic mail other than between 8:00 am and 5:00 pm recipient’s local time; (c) three business days after deposit in the U.S. mail with first class or certified mail receipt requested postage prepaid and addressed to the other party at the address set forth below; or (d) the next business day after deposit with a national overnight delivery service, postage prepaid, addressed to the parties as set forth below with next business day delivery guaranteed, provided that the sending party receives a confirmation of delivery from the delivery service provider.  Subject to the limitations set forth in Delaware General Corporation Law §232(e), each Investor that is party hereto consents to the delivery of any notice to stockholders given by the Company under the Delaware General Corporation Law or the Certificate of Incorporation or bylaws (as amended from time to time) by (i) facsimile telecommunication to the facsimile number set forth below (or to any other facsimile number for such stockholder in the Company’s records), (ii) electronic mail to the electronic mail address set forth below (or to any other 

20

electronic mail address for such Investor in the Company’s records), (iii) posting on an electronic network together with separate notice to the stockholder of such specific posting, or (iv) any other form of “electronic transmission” (as defined in the Delaware General Corporation Law) directed to the Investor.  This consent may be revoked by an Investor by written notice to the Company and may be deemed revoked in the circumstances specified in Delaware General Corporation Law §232.  Each person making a communication hereunder by facsimile or electronic mail shall promptly attempt to confirm by telephone to the person to whom such communication was addressed each communication made by it by facsimile or electronic mail pursuant hereto but the absence of such confirmation shall not affect the validity of any such communication.  A party may change or supplement the addresses given above, or designate additional addresses, for purposes of this Section 5.6 by giving the other party written notice of the new address in the manner set forth above.
5.7    Expenses.  If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.
5.8    Amendments and Waivers.  Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Requisite Majority (as defined in the Certificate of Incorporation); provided, however, that if any amendment or waiver operates in a manner that treats any Investor differently from other Investors, the consent of such Investor shall also be required for such amendment or waiver, and provided further, that additional parties who are purchasers of Common Stock or Preferred Stock of the Company may become parties to this Agreement by executing a counterpart signature page hereto, without any amendment of this Agreement.  Any amendment or waiver effected in accordance with this paragraph shall be binding upon each Investor and the Company.  Notwithstanding anything to the contrary herein, any amendment, waiver or termination of Section 3.7 that affects Vivo shall require the prior consent of Vivo.
5.9    Future Stockholders.  The Company may at its option permit future holders of at least two percent (2%) of the Company’s Common Stock (assuming full conversion and exercise of all convertible and exercisable securities then outstanding) to enter into this Agreement and be subject to the terms and conditions hereof as an Investor.  The parties hereby agree that such future holders may become parties to this Agreement by executing a counterpart of this Agreement, without any amendment of this Agreement.
5.10    Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.
5.11    Aggregation of Stock.  All shares of Registrable Securities held or acquired by entities advised by the same investment adviser and affiliated entities or persons 

21

shall be aggregated together for the purpose of determining the availability of any rights under this Agreement.
5.12    Entire Agreement.  This Agreement and the documents referred to herein constitute the entire agreement among the parties with respect to the subject matter hereof and no party shall be liable or bound to any other party in any manner by any warranties, representations or covenants except as specifically set forth herein or therein.
5.13    Waiver of Right of First Offer.  Solely for purposes of the transactions contemplated by the Series C Purchase Agreement, the right of first offer set forth in Section 3.4 of the Prior Agreement is hereby waived in its entirety, except to the extent of the Prior Investors’ purchases, if any, of Series C Preferred Stock pursuant to the Series C Purchase Agreement.

*          *          *

22

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

	 
	 
	 

	MENLO THERAPEUTICS INC.

	 
	 
	 

	 
	 
	 

	By:
	 
	/s/ Steven L. Basta

	 
	Name:
	Steven L. Basta

	 
	Title:
	Chief Executive Officer

	 
	 
	 

	Address:
	[***]

	 
	 
	 

	 
	 
	 

	 
	 
	 

	Facsimile:
	 

	Email:
	[***]

SIGNATURE PAGE TO
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

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

	 
	 
	 

	PRESIDIO PARTNERS 2007, L.P.

	 
	 
	 

	By:
	Presidio Partners 2007 GP, L.P.

	Its:
	General Partner

	 
	 
	 

	By:
	/s/ David Collier

	 
	 
	 

	Name:
	David Collier

	 
	 
	 

	Title:
	General Partner

	 
	 
	 

	Address:
	[***]

	 
	 
	 

	 
	 
	 

	 
	 
	 

	Facsimile:
	[***]

	Email:
	[***]

SIGNATURE PAGE TO
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

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

	 
	 
	 

	PRESIDIO PARTNERS 2007 (PARALLEL) , L.P.

	 
	 
	 

	By:
	Presidio Partners 2007 GP, L.P.

	Its:
	General Partner

	 
	 
	 

	By:
	/s/ David Collier

	 
	 
	 

	Name:
	David Collier

	 
	 
	 

	Title:
	General Partner

	 
	 
	 

	Address:
	[***]

	 
	 
	 

	 
	 
	 

	 
	 
	 

	Facsimile:
	[***]

	Email:
	[***]

SIGNATURE PAGE TO
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

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

	 
	 
	 

	REMEDITEX VENTURES, LLC

	 
	 
	 

	By:
	/s/ John W. Creecy

	 
	 
	 

	Name:
	John W. Creecy

	 
	 
	 

	Title:
	CEO

	 
	 
	 

	Address:
	[***]

	 
	 
	 

	 
	 
	 

	Facsimile:
	[***]

	Email:
	[***]

SIGNATURE PAGE TO
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

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

	 
	 
	 

	VIVO CAPITAL FUND VIII, L.P.

	 
	 
	 

	By:
	Vivo Capital VIII, LLC

	Its:
	General Partner

	 
	 
	 

	By:
	/s/ Albert Cha

	 
	 
	 

	Name:
	Albert Cha

	 
	 
	 

	Title:
	Managing Member

	 
	 
	 

	Address:
	[***]

	 
	 
	 

	 
	 
	 

	Facsimile:
	[***]

	Email:
	[***]

SIGNATURE PAGE TO
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

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

	 
	 
	 

	VIVO CAPITAL FUND VIII, L.P.

	 
	 
	 

	By:
	Vivo Capital VIII, LLC

	Its:
	General Partner

	 
	 
	 

	By:
	/s/ Albert Cha

	 
	 
	 

	Name:
	Albert Cha

	 
	 
	 

	Title:
	Managing Member

	 
	 
	 

	Address:
	[***]

	 
	 
	 

	 
	 
	 

	Facsimile:
	[***]

	Email:
	[***]

SIGNATURE PAGE TO
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

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

	 
	 
	 

	F-PRIME CAPITAL PARTNERS HEALTHCARE
FUND IV LP

	 
	 
	 

	By:
	F-Prime Capital Partners Healthcare Advisors
Fund IV LP

	Its:
	General Partner

	 
	 
	 

	By:
	Impresa Holdings LLC

	Its:
	General Partner

	 
	 
	 

	By:
	Impresa Management LLC

	Its:
	Managing Member

	 
	 
	 

	By:
	/s/ Mary Bevelock Pendergast

	 
	 
	 

	Name:
	Mary Bevelock Pendergast

	 
	 
	 

	Title:
	Vice President

	 
	 
	 

	Address:
	[***]

	 
	 
	 

	 
	 
	 

	Facsimile:
	[***]

	Email:
	[***]

SIGNATURE PAGE TO
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

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

	 
	 
	 

	VENBIO GLOBAL STRATEGIC FUND II, L.P.

	 
	 
	 

	By:
	venBio Global Strategic GP II, L.P.

	Its:
	General Partner

	 
	 
	 

	By:
	venBio Global Strategic GP II, Ltd.

	Its:
	General Partner

	 
	 
	 

	By:
	/s/ Rob Adelman

	 
	 
	 

	Name:
	Rob Adelman

	 
	 
	 

	Title:
	Director

	 
	 
	 

	Address:
	[***]

	 
	 
	 

	 
	 
	 

	Facsimile:
	[***]

	Email:
	[***]

SIGNATURE PAGE TO
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

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

	 
	 
	 

	NOVO HOLDINGS A/S (FKA NOVO A/S)

	 
	 
	 

	By:
	/s/ Thomas Dyrberg by specific power of attorney

	 
	 
	 

	Name:
	Thomas Dyrberg by specific power of attorney

	 
	 
	 

	Title:
	Managing Partner Novo Ventures

	 
	 
	 

	Address:
	[***]

	 
	 
	 

	 
	 
	 

	Facsimile:
	 

	Email:
	[***]

SIGNATURE PAGE TO
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

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

	 
	 
	 

	ROCK SPRINGS CAPITAL MASTER FUND LP

	 
	 
	 

	By:
	Rock Springs General Partner LLC

	 
	 
	 

	By:
	/s/ Mark Bussard

	 
	 
	 

	Name:
	Mark Bussard

	 
	 
	 

	Title:
	Managing Member

	 
	 
	 

	Address:
	[***]

	 
	 
	 

	 
	 
	 

	Facsimile:
	[***]

	Email:
	[***]

	 
	 
	[***]

SIGNATURE PAGE TO
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

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

	 
	 
	 

	ROCK SPRINGS CAPITAL MASTER FUND LP

	 
	 
	 

	By:
	Bay City Capital GF XINDE Investment
Management Co.

	Its:
	General Partner

	 
	 
	 

	By:
	/s/ Fred Craves

	 
	 
	 

	Name:
	Fred Craves

	 
	 
	 

	Title:
	Director

	 
	 
	 

	Address:
	[***]

	 
	 
	 

	 
	 
	 

	 
	 
	 

	Facsimile:
	[***]

	Email:
	[***]

SIGNATURE PAGE TO
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

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

	 
	 
	 

	AISLING CAPITAL IV, L.P.

	 
	 
	 

	By:
	/s/ Robert Wenzel

	 
	 
	 

	Name:
	Robert Wenzel

	 
	 
	 

	Title:
	CFO

	 
	 
	 

	Address:
	[***]

	 
	 
	 

	 
	 
	 

	Facsimile:
	[***]

	Email:
	 

SIGNATURE PAGE TO
SECOND AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

SCHEDULE A
SCHEDULE OF INVESTORS
	
	
	Presidio Partners 2007, L.P.

	

Presidio Partners 2007 (Parallel), L.P.

	

Velocity Pharmaceutical Development, LLC

	

Remeditex Ventures, LLC

	

Merck Sharp & Dohme Corp.

	

Vivo Capital Fund VIII, L.P.

	

Vivo Capital Surplus Fund VIII, L.P.

	

F-Prime Capital Partners Healthcare Fund IV LP 

	

venBio Global Strategic Fund II, L.P.

	

Novo Holdings A/S (fka Novo A/S)

	

Rock Springs Capital Master Fund LP

	

Bay City Capital GF Xinde International Life Sciences USD Fund

	

Aisling Capital IV, L.P.

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