Document:

PROVENTION
BIO, INC.

 

RIGHT
OF FIRST REFUSAL AND CO-SALE AGREEMENT

 

This
RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT (the “Agreement”) is made and entered into as of April 25, 2017,
by and among PROVENTION BIO, INC., a Delaware corporation (the “Company”), the Investors (as defined
below) and the Key Holders (as defined below) (the Investors and the Key Holders are sometimes referred to herein collectively
as the “Shareholders”).

 

RECITALS

 

WHEREAS,
the Company and the Shareholders are parties to the Securities Purchase Agreement, of even date herewith (the “Purchase
Agreement”), pursuant to which the Investors have agreed to purchase shares of the Company’s Series A Preferred
Stock, par value $0.0001 per share (the “Preferred Stock”); and

 

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

 

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

 

1.
Definitions. In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement,
the following terms shall have the meanings set forth below:

 

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

 

1.2
“Capital Stock” means (a) shares of Common Stock and Preferred Stock (whether now outstanding or hereafter
issued in any context), (b) shares of Common Stock issued or issuable upon conversion of Preferred Stock, and (c) shares of Common
Stock issued or issuable upon exercise or conversion, as applicable, of stock options, warrants or other convertible securities
of the Company, in each case now owned or subsequently acquired by any Shareholder, or their respective successors or permitted
transferees or assigns. For purposes of the number of shares of Capital Stock held by a Shareholder (or any other calculation
based thereon), all shares of Preferred Stock shall be deemed to have been converted into Common Stock at the then-applicable
conversion ratio.

 

1.3
“Change of Control” means a transaction or series of related transactions in which a person, or a group of
related persons, acquires from stockholders of the Company shares representing more than fifty percent (50%) of the outstanding
voting power of the Company.

 

    	 

     

    

 

1.4
“Common Stock” means shares of the Company’s Common Stock, $0.0001 par value per share.

 

1.5
“Company Notice” means written notice from the Company notifying the Selling Shareholder that the Company intends
to exercise its Right of First Refusal as to some or all of the Transfer Stock with respect to any Proposed Shareholder Transfer.

 

1.6
“Investor Notice” means written notice from an Investor notifying the Company and the Selling Shareholder that
such Investor intends to exercise its Secondary Refusal Right as to a portion of the Transfer Stock with respect to any Proposed
Shareholder Transfer.

 

1.7
“Investors” means the persons named on Schedule A hereto, each person to whom the rights of an Investor
are assigned pursuant to Subsection 6.9, each person who hereafter becomes a signatory to this Agreement pursuant to Subsection
6.11 and any one of them, as the context may require.

 

1.8
“Key Holders” means the persons named on Schedule B hereto, each person to whom the rights of a Key
Holder are assigned pursuant to Subsection 3.1, each person who hereafter becomes a signatory to this Agreement pursuant
to Subsection 6.9 or 6.16 and any one of them, as the context may require.

 

1.9
“Proposed Shareholder Transfer” means any assignment, sale, offer to sell, pledge, mortgage, hypothecation,
encumbrance, disposition of or any other like transfer or encumbering of any Transfer Stock (or any interest therein) proposed
by any of the Shareholders.

 

1.10
“Proposed Transfer Notice” means written notice from a Shareholder setting forth the terms and conditions of
a Proposed Shareholder Transfer.

 

1.11
“Prospective Transferee” means any person to whom a Shareholder proposes to make a Proposed Shareholder Transfer.

 

1.12
“Restated Certificate” means the Company’s Amended and Restated Certificate of Incorporation, as amended
and/or restated from time to time.

 

1.13
“Right of Co-Sale” means the right, but not an obligation, of an Investor to participate in a Proposed Shareholder
Transfer on the terms and conditions specified in the Proposed Transfer Notice.

 

1.14
“Right of First Refusal” means the right, but not an obligation, of the Company, or its permitted transferees
or assigns, to purchase some or all of the Transfer Stock with respect to a Proposed Shareholder Transfer, on the terms and conditions
specified in the Proposed Transfer Notice.

 

1.15
“Secondary Notice” means written notice from the Company notifying the Shareholders and the Selling Shareholder
that the Company does not intend to exercise its Right of First Refusal as to all shares of Transfer Stock with respect to any
Proposed Shareholder Transfer.

 

    	 	 2	 

     

    

 

1.16
“Secondary Refusal Right” means the right, but not an obligation, of each Investor to purchase up to its pro
rata portion (based upon the total number of shares of Capital Stock then held by all Investors) of any Transfer Stock not purchased
pursuant to the Right of First Refusal, on the terms and conditions specified in the Proposed Transfer Notice.

 

1.17
“Transfer Stock” means shares of Capital Stock owned by a Shareholder, or issued to a Shareholder after the
date hereof (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization,
or the like).

 

1.18
“Undersubscription Notice” means written notice from a Shareholder notifying the Company and the Selling Shareholder
that such Shareholder intends to exercise its option to purchase all or any portion of the Transfer Stock not purchased pursuant
to the Right of First Refusal or the Secondary Refusal Right.

 

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

 

2.1
Right of First Refusal.

 

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

 

(b)
Notice. Each Shareholder proposing to make a Proposed Shareholder Transfer (a “Selling Shareholder”)
must deliver a Proposed Transfer Notice to the Company and each Shareholder not later than forty-five (45) days prior to the consummation
of such Proposed Shareholder Transfer. Such Proposed Transfer Notice shall contain the material terms and conditions (including
price and form of consideration) of the Proposed Shareholder Transfer, the identity of the Prospective Transferee and the intended
date of the Proposed Shareholder Transfer. To exercise its Right of First Refusal under this Section 2, the Company must
deliver a Company Notice to the Selling Shareholder within fifteen (15) days after delivery of the Proposed Transfer Notice. In
the event of a conflict between this Agreement and any other agreement that may have been entered into by a Shareholder with the
Company that contains a preexisting right of first refusal, the Company and the Shareholder acknowledge and agree that the terms
of this Agreement shall control and the preexisting right of first refusal shall be deemed satisfied by compliance with Subsection
2.1(a) and this Subsection 2.1(b).

 

(c)
Grant of Secondary Refusal Right to Shareholders. Subject to the terms of Section 3 below, each Shareholder hereby
unconditionally and irrevocably grants to the Investors a Secondary Refusal Right to purchase all or any portion of the Transfer
Stock not purchased by the Company pursuant to the Right of First Refusal, as provided in this Subsection 2.1(c). If the
Company does not intend to exercise its Right of First Refusal with respect to all Transfer Stock subject to a Proposed Shareholder
Transfer, the Company must deliver a Secondary Notice to the Selling Shareholder and to each Investor to that effect no later
than fifteen (15) days after the Selling Shareholder delivers the Proposed Transfer Notice to the Company. To exercise its Secondary
Refusal Right, an Investor must deliver an Investor Notice to the Selling Shareholder and the Company within ten (10) days after
the Company’s deadline for its delivery of the Secondary Notice as provided in the preceding sentence.

 

    	 	 3	 

     

    

 

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

 

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

 

2.2
Right of Co-Sale.

 

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

 

    	 	 4	 

     

    

 

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

 

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

 

(d)
Allocation of Consideration.

 

(i)
The aggregate consideration payable to the Participating Investors and the Selling Shareholder shall be allocated based on the
number of shares of Capital Stock sold to the Prospective Transferee by each Participating Investor and the Selling Shareholder
as provided in Subsection 2.2(b), provided that if a Participating Investor wishes to sell Preferred Stock, the
price set forth in the Proposed Transfer Notice shall be appropriately adjusted based on the conversion ratio of the Preferred
Stock into Common Stock.

 

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

 

    	 	 5	 

     

    

 

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

 

(f)
Additional Compliance. If any Proposed Shareholder Transfer is not consummated within forty-five (45) days after receipt
of the Proposed Transfer Notice by the Company, the Shareholder proposing the Proposed Shareholder Transfer may not sell any Transfer
Stock unless they first comply in full with each provision of this Section 2. The exercise or election not to exercise
any right by any Shareholder hereunder shall not adversely affect its right to participate in any other sales of Transfer Stock
subject to this Subsection 2.2.

 

2.3
Effect of Failure to Comply

 

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

 

    	 	 6	 

     

    

 

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

 

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

 

3.
Exempt Transfers.

 

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

 

    	 	 7	 

     

    

 

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

 

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

 

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

 

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

 

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

 

    	 	 8	 

     

    

 

5.
Covenants.

 

5.1
Agreement to Lock-Up. Each Key Holder hereby agrees that it will not, until the later of (a) the date that is 12 months
following the date of the final prospectus relating to the Company’s initial public offering (the “IPO”)
and (b) the listing of the Company’s Common Stock on an exchange or any tier of The NASDAQ Stock Market or New York Stock
Exchange, (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, Preferred Stock or any other securities convertible into or exercisable or exchangeable (directly or indirectly)
for Common Stock (whether such shares or any such securities are then owned by the Key Holder or are thereafter acquired) or (ii)
enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership
of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common
Stock, Preferred Stock or other securities, in cash, or otherwise. The foregoing provisions of this Section 5 shall not apply
to the sale of any shares to an underwriter pursuant to an underwriting agreement, or the transfer of any shares to any trust
for the direct or indirect benefit of the Key Holder or the immediate family of the Key Holder, provided that the trustee of the
trust agrees to be bound in writing by the restrictions set forth herein, and provided further that any such transfer shall not
involve a disposition for value, and shall be applicable to the Key Holder only if all officers and directors of the Company are
subject to the same restrictions and the Company uses commercially reasonable efforts to obtain a similar agreement from all stockholders
individually owning more than one percent (1%) of the Company’s outstanding Common Stock (after giving effect to the conversion
into Common Stock of all outstanding Preferred Stock). The underwriters in connection with the IPO are intended third-party beneficiaries
of this Section 5 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto.
Each Key Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in the IPO that are
consistent with this Section 5 or that are necessary to give further effect thereto.

 

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

 

5.3
Confidentiality. To the extent that any Shareholder is not already subject to confidentiality obligations pursuant to an
employment, consulting, advisor, or other agreement, any such Shareholder agrees that it will keep confidential and will not disclose,
divulge, or use for any purpose (other than to monitor its investment in the Company) any confidential information obtained from
the Company by virtue of its status as a stockholder of the Company (including notice of the Company’s intention to file
a registration statement), unless such confidential information (a) is known or becomes known to the public in general (other
than as a result of a breach of this Subsection 5.3 by such Shareholder), (b) is or has been independently developed or
conceived by the Shareholder without use of the Company’s confidential information, or (c) is or has been made known or
disclosed to the Shareholder by a third party without a breach of any obligation of confidentiality such third party may have
to the Company; provided, however, that a Shareholder may disclose confidential information (i) to its attorneys,
accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with monitoring
its investment in the Company; (ii) to any prospective purchaser of any Capital Stock from such Shareholder, if such prospective
purchaser agrees to be bound by the provisions of this Subsection 5.3; (iii) to any existing Affiliate, partner, director,
officer, member, stockholder, or wholly owned subsidiary of such Shareholder in the ordinary course of business, provided that
such Shareholder informs such person that such information is confidential and directs such person to maintain the confidentiality
of such information; or (iv) as may otherwise be required by law, provided that the Shareholder promptly notifies the Company
of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure.

 

    	 	 9	 

     

    

 

6.
Miscellaneous.

 

6.1
Term. This Agreement shall terminate and be of no further force or effect upon the earliest to occur of: (a) the consummation
of the Company’s sale of its Common Stock or other securities in a firm commitment or best efforts underwritten public offering
pursuant to a registration statement under the Act (other than a registration statement relating either to sale of securities
to employees of the Company pursuant to its stock option, stock purchase or similar plan or a SEC Rule 145 transaction), or (b)
the consummation of a Deemed Liquidation Event (as defined in the Restated Certificate).

 

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

 

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

 

6.4
Governing Law; Choice of Venue. This Agreement shall be governed by, and construed in accordance with, the internal laws
of the State of Delaware without regard to the choice of law principles thereof. Each of the parties hereto irrevocably submits
to the exclusive jurisdiction of the courts of the State of Delaware and the United States District Court for the District of
Delaware for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions
contemplated hereby. Service of process in connection with any such suit, action or proceeding may be served on each party hereto
anywhere in the world by the same methods as are specified for the giving of notices under this Agreement. Each of the parties
hereto irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of
venue in such court. Each party hereto irrevocably waives any objection to the laying of venue of any such suit, action or proceeding
brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has
been brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION
WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

    	 	 10	 

     

    

 

6.5
Notices. Any notices required or permitted to be given under the terms of this Agreement shall be sent by certified or
registered mail (return receipt requested) or delivered personally or by courier (including a recognized overnight delivery service)
or by facsimile transmission and shall be effective five (5) days after being placed in the mail, if mailed by regular United
States mail, or upon receipt, if delivered personally or by courier (including a recognized overnight delivery service) or by
facsimile transmission, with printed confirmation of receipt, in each case addressed to a party. The addresses for such communications
shall be:

 

If
to the Company:

 

Provention
Bio, Inc.

110
Old Driftway Lane

Lebanon,
NJ 08833

Attention:
Mr. Ashleigh Palmer

Telephone:
(908) 428-9136

Facsimile:
(908) 428-9136

With
a copy (for informational purposes only) to:

Lowenstein
Sandler LLP,

1251
Avenue of the Americas

New
York, NY 10020,

Telephone:
(973) 597-6394

Facsimile:
(973) 597-6395

email:
mlerner@lowenstein.com.

Attention:
Michael Lerner, Esq.

 

And

If
to any Shareholder, at the address for such Shareholder on the records of the Company, which may include the address and fax number
set forth immediately below such Shareholder’s name on the counterpart signature pages hereto, or to such other address
and/or facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given
to each other party five (5) days prior to the effectiveness of such change.

 

Written
confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an
image of the first page of such transmission or (C) provided by a courier or overnight courier service shall be rebuttable evidence
of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service.

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

 

    	 	 11	 

     

    

 

6.7
Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement,
upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching
or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or
of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a
waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind
or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of
any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set
forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative
and not alternative.

 

6.8
Amendment; Waiver and Termination. This Agreement may be amended, modified or terminated (other than pursuant to Section
6.1 above) and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively
or prospectively) only by a written instrument executed by (a) the Company, (b) the holders of a majority of the shares of Transfer
Stock then held by all of the Key Holders, and (c) the holders of a majority of the shares of Common Stock issued or issuable
upon conversion of the then outstanding shares of Preferred Stock held by the Investors (voting as a single class and on an as-converted
basis). Any amendment, modification, termination or waiver so effected shall be binding upon the Company, the Shareholders and
all of their respective successors and permitted assigns whether or not such party, assignee or other shareholder entered into
or approved such amendment, modification, termination or waiver. Notwithstanding the foregoing, (i) this Agreement may not be
amended, modified or terminated and the observance of any term hereunder may not be waived with respect to any Investor or Key
Holder without the written consent of such Investor or Key Holder unless such amendment, modification, termination or waiver applies
to all Investors or Key Holders, respectively, in the same fashion, (ii) the consent of the Key Holders shall not be required
for any amendment, modification, termination or waiver if such amendment, modification, termination or waiver does not apply to
the Key Holders, and (iii) Schedule A and Schedule B hereto may be amended by the Company from time to time without the consent
of the other parties hereto pursuant to Sections 3.1, 6.9, 6.11 and 6.16. The Company shall give prompt
written notice of any amendment, modification or termination hereof or waiver hereunder to any party hereto that did not consent
in writing to such amendment, modification, termination or waiver. No waivers of or exceptions to any term, condition or provision
of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any
such term, condition or provision.

 

6.9
Assignment of Rights.

 

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

 

    	 	 12	 

     

    

 

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

 

(c)
The rights of the Investors hereunder are not assignable without the Company’s written consent (which shall not be unreasonably
withheld, delayed or conditioned), except by an Investor to any Affiliate, it being acknowledged and agreed that any such assignment,
including an assignment contemplated by the preceding clause shall be subject to and conditioned upon any such assignee’s
delivery to the Company and the other Shareholders of a counterpart signature page hereto pursuant to which such assignee shall
confirm their agreement to be subject to and bound by all of the provisions set forth in this Agreement that were applicable to
the assignor of such assignee.

 

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

 

6.10
Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such
provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified
continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the
prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective
expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred
upon the parties. The parties hereto will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable
provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

6.11
Additional Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares
of Preferred Stock after the date hereof, any purchaser of such shares of Preferred Stock may become a party to this Agreement
by executing and delivering an additional counterpart signature page to this Agreement and thereafter shall be deemed an “Investor”
for all purposes hereunder.

 

6.12
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.

 

    	 	 13	 

     

    

 

6.13 Counterparts;
Facsimile. This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of
which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other
party hereto by facsimile transmission or other electronic transmission (such as but not limited to an email attachment in
PDF format) of a copy of this Agreement bearing the signature of the party so delivering this Agreement. This Agreement
may also be executed by electronic or facsimile signature

 

6.14
Aggregation of Stock. All shares of Capital Stock held or acquired by Affiliated entities or persons shall be aggregated
together for the purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion
such rights as among themselves in any manner they deem appropriate.

 

6.15
Specific Performance. In addition to any and all other remedies that may be available at law in the event of any breach
of this Agreement, each Shareholder shall be entitled to specific performance of the agreements and obligations of the Company
and the Shareholders hereunder and to such other injunction or other equitable relief as may be granted by a court of competent
jurisdiction.

 

6.16
Additional Key Holders. In the event that after the date of this Agreement, the Company issues shares of Common Stock or
options to purchase Common Stock, to any employee, director, advisor, or consultant (a “Service Provider”),
which shares or options would collectively constitute with respect to such employee or consultant (taking into account all shares
of Common Stock, options and other purchase rights held by such employee or consultant) one percent (1%) or more of the Company’s
then outstanding Common Stock (treating for this purpose all shares of Common Stock issuable upon exercise of or conversion of
outstanding options, warrants or convertible securities, as if exercised or converted), the Company shall, as a condition to such
issuance, cause such Service Provider to execute a counterpart signature page hereto as a Key Holder, and such person shall thereby
be bound by, and subject to, all the terms and provisions of this Agreement applicable to a Key Holder.

 

[Signature
Pages to Follow]

 

    	 	 14	 

     

    

 

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

 

	 	PROVENTION
    BIO, INC.
	 	 	 
	 	By:
    	 
	 	Name:
    	Ashleigh
    Palmer
	 	Title:
    	President
    & Chief Executive Officer

 

[SIGNATURE PAGE TO
RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT FOR PROVENTION BIO, INC.]

 

    	 

     

    

 

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

 

	 	SHAREHOLDER:
	 	 	 
	 	[Name]
	 	 	 
	 	By:
    	           
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address:
    	 

 

[SIGNATURE
PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT FOR PROVENTION BIO, INC.]

 

    	 

     

    

 

SCHEDULE
A

 

SCHEDULE
OF INVESTORS

 

    	 

     

    

 

SCHEDULE
B

 

SCHEDULE
OF KEY HOLDERS

 

MDB
Capital Group, LLC

Ashleigh
Palmer

Francisco
Leon

Vactech
OYEMPLOYMENT
AGREEMENT

 

This
EMPLOYMENT AGREEMENT (this “Agreement”), dated April 25, 2017 and effective on the date of consummation of
the initial closing of the private placement offering of the Company’s Series A Preferred Stock, par value $0.0001 per share
(the “Effective Date”), is by and between PROVENTION BIO, Inc.,
a Delaware corporation (the “Company”) and ASHLEIGH PALMER (the “Executive”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Company desires to employ the Executive as its President and Chief Executive Officer (“CEO”), and the Executive
desires to accept such employment, on the terms and conditions set forth in this Agreement; and

 

WHEREAS,
the Company and the Executive have mutually agreed that, as of the Effective Date, this Agreement shall govern the terms of employment
between the Executive and the Company.

 

NOW,
THEREFORE, in consideration of the promises and the mutual covenants and agreements contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound
hereby, agree as follows:

 

ARTICLE
1

Employment;
TERM OF AGREEMENT

 

Section
1.1. Employment and Acceptance. During the Term (as defined in Section 1.2), the Company shall employ the Executive,
and the Executive shall accept such employment and serve the Company, in each case, subject to the terms and conditions of this
Agreement.

 

Section
1.2. Term. The employment relationship hereunder shall be for the period commencing on the Effective Date and, subject
to earlier termination as provided in ARTICLE 4, ending on the third (3rd) anniversary of the Effective Date
(the “Term”). In the event that the Executive’s employment with the Company terminates, the Company’s
obligation to continue to pay, after the Termination Date (as defined in Section 4.2(b)), Base Salary (as defined in Section
3.1(a)), Annual Bonus (as defined in Section 3.1(c)) and other unaccrued benefits shall terminate, except as may be
provided for in ARTICLE 4.

 

ARTICLE
2

TITLE; DUTIES AND OBLIGATIONS; LOCATION

 

Section
2.1. Title. The Company shall employ the Executive to render full-time services to the Company on the terms and conditions
hereinafter set forth. The Executive shall serve in the capacity of President and CEO. The Executive also initially shall serve
as Chairman of the Board.

 

Section
2.2. Duties. The Executive shall report to the Company’s Board of Directors (the “Board”) and
be subject to the lawful direction of the Board. The Executive agrees to perform to the best of his ability, experience and talent
those acts and duties, consistent with the position of President and CEO as the Board shall from time to time direct. During the
Term, the Executive also shall serve in such other executive-level positions or capacities as may, from time to time, be reasonably
requested by the Board, including, without limitation (subject to election, appointment, re-election or re-appointment, as applicable)
as (a) a member of the Board and/or as a member of the board of directors or similar governing body of any of the Company’s
subsidiaries or other Affiliates (as defined below), (b) an officer of any of the Company’s subsidiaries or other Affiliates,
and/or (c) a member of any committee of the Company and/or any of its subsidiaries or other Affiliates, in each case, for no additional
compensation. As used in this Agreement, “Affiliate” of any individual or entity means any other individual
or entity that directly or individual controls, is controlled by, or is under common control with, the individual or entity.

 

    	 

     

    

 

Section
2.3. Compliance with Policies, etc. During the Term, the Executive shall be bound by, and comply fully with, all of the
Company’s policies and procedures for employees and officers in place from time to time, including, but not limited to,
all terms and conditions set forth in the Company’s employee handbook, compliance manual, codes of conduct and any other
memoranda and communications applicable to the Executive pertaining to the policies, procedures, rules and regulations, as currently
in effect and as may be amended from time to time. These policies and procedures include, among other things and without limitation,
the Executive’s obligations to comply with the Company’s rules regarding confidential and proprietary information
and trade secrets.

 

Section
2.4. Time Commitment. During the Term, the Executive shall use his best efforts to promote the interests of the Company
(including its subsidiaries and other Affiliates) and shall devote substantially all of his business time, ability and attention
to the performance of his duties for the Company and shall not, directly or indirectly, render any services to any other person
or organization, whether for compensation or otherwise, except with the Board’s prior written consent, except that, without
such written consent, the Executive may (i) participate in charitable, civic, educational, professional, community or industry
affairs; (ii) manage the Executive’s passive personal investments; (iii) maintain his position and perform his duties on
the board of directors of the inhaled nitric oxide company, “Third Pole”, and receive appropriate compensation for
doing so; (iv) maintain his position and perform his duties as Chairman of the anti-IL-15 therapeutic company, “Celimmune
LLC”, and receive appropriate compensation for doing so; and (v) maintain his position and perform his duties as President
of the biopharmaceutical advisory firm, “Creative BioVentures Corp”, and the biopharmaceutical technology and development
company, “Adoption Pharma LLC”, and receive appropriate compensation for doing so.

 

Section
2.5. Location. The Executive’s principal place of business for the performance of his duties under this Agreement
shall be at the principal executive office of the Company, or such other place as permitted by the Board of Directors. Notwithstanding,
the foregoing, the Executive shall be required to travel as necessary to perform his duties hereunder.

 

    	 	-2-	 

     

    

 

ARTICLE
3

COMPENSATION AND BENEFITS; EXPENSES

 

Section
3.1. Compensation and Benefits. For all services rendered by the Executive in any capacity during the Term (including,
without limitation, serving as an officer, director or member of any committee of the Company or any of its subsidiaries or other
Affiliates), the Executive shall be compensated as follows (subject, in each case, to the provisions of Article
4 below):

 

(a)
Base Salary. During the Term, the Company shall pay the Executive a base salary (the “Base Salary”)
at the annualized rate of $425,000, which shall be subject to customary withholdings and authorized deductions and be payable
in equal installments in accordance with the Company’s customary payroll practices in place from time to time. The Executive’s
Base salary shall be subject to periodic adjustments as the Board and/or the Compensation Committee of the Board (the “Compensation
Committee”) shall in its/their discretion deem appropriate.

 

(b)
Sign-On Bonus. Executive shall be eligible for a sign-on bonus of $35,000 (the “Sign-On Bonus”). The Sign-On
Bonus is payable thirty (30) days following the Effective Date, subject to Executive’s continued employment with the Company
at the time of payment.

 

(c)
Annual Bonus. For each calendar year ending during the Term (beginning with the calendar year ending December 31, 2017),
the Executive shall be eligible to receive an annual bonus (the “Annual Bonus”) with a target amount equal
to twenty-five percent (25%) of the Base Salary earned by the Executive for such calendar year (the “Target Annual Bonus”).
The actual amount of each Annual Bonus will be based upon the level of achievement of the Company’s corporate objectives
and the Executive’s individual objectives, in each case, as established by the Board or the Compensation Committee for the
calendar year with respect to which such Annual Bonus relates. The determination of the level of achievement of the corporate
objectives and the Executive’s individual performance objectives for a year shall be made by the Board or the Compensation
Committee, in its reasonable discretion. Each Annual Bonus for a calendar year, to the extent earned, will be paid in a lump sum
in the following calendar year, within the first 75 days of such following year. In order for the Executive to receive an Annual
Bonus, the Executive must be actively employed by the Company as of January 1, in the calendar year in which the Annual Bonus
is paid.

 

(d)
Equity Compensation. Subject to the terms of the Company’s 2017 Equity Incentive Plan (the “Plan”)
and approval of the Board or Compensation Committee, upon or immediately following the final closing of the private placement
offering of the Company’s common stock (the “Grant Date”), the Executive will be granted options to purchase
773,885 shares of the Company’s common stock, on the terms and conditions determined by the Board or the Compensation Committee,
with an exercise price of $2.50 per share (provided that the Board or the Compensation Committee determines that such exercise
price represents no less than fair market value per share on the Grant Date in accordance with the Plan), which shall vest in
equal installments on each of the first eight (8) six (6) month anniversaries of the Grant Date (such that the option shall be
fully vested on the four (4) year anniversary of the Grant Date), subject to the terms of Article 4. During the Term, subject
to the terms and conditions established within the Plan or any successor equity compensation plan as may be in place from time
to time and separate award agreements, the Executive also shall be eligible to receive awards from time to time (as permitted
by the Plan), in amounts, if any, to be approved by the Board or the Compensation Committee in its discretion, and in particular,
performance-based stock options, the amount and vesting criteria of which shall be determined at the discretion of the Board or
the Compensation Committee.

 

    	 	-3-	 

     

    

 

(e)
Benefit Plans. The Executive shall be entitled to participate in all employee benefit plans and programs (excluding severance
plans, if any) generally made available by the Company to senior executives of the Company, to the extent permissible under the
general terms and provisions of such plans or programs and in accordance with the provisions thereof. The Company may amend, modify
or rescind any employee benefit plan or program and/or change employee contribution amounts to benefit costs upon notice to the
Executive and in its discretion.

 

(f)
Paid Vacation. The Executive shall be entitled to paid vacation days in accordance with the Company’s vacation policies
in effect from time to time for its executive team; provided, however, that the Executive shall be entitled to no
less than fifteen (15) paid vacation days per calendar year during the Term.

 

Section
3.2. Expense Reimbursement. The Company shall reimburse the Executive during the Term, in accordance with the Company’s
expense reimbursement policies in place from time to time, for all reasonable out-of-pocket business and travel expenses incurred
by the Executive in the performance of his duties hereunder. In order to receive such reimbursement, the Executive shall furnish
to the Company documentary evidence of each such expense in the form required to comply with the Company’s policies in place
from time to time.

 

ARTICLE
4

TERMINATION OF EMPLOYMENT

 

Section
4.1. Termination Without Cause or Resignation for Good Reason.

 

(a)
The Company may terminate the Executive’s employment hereunder at any time without Cause (other than by reason of death
or Disability) upon sixty (60) days prior written notice to the Executive. Executive may terminate his employment hereunder for
Good Reason upon written notice to the Company in accordance with the provisions set forth in Section 4.1(c).

 

(b)
As used in this Agreement, “Cause” means: (i) a material act, or act of fraud, committed by the Executive that
is intended to result in the Executive’s personal enrichment to the detriment or at the expense of the Company or any of
its Affiliates; (ii) the Executive is convicted of a felony; (iii) gross negligence or willful misconduct by the Executive, or
failure by the Executive to perform the duties or obligations reasonably assigned to the Executive by the Board from time to time,
which is not cured upon at least thirty (30) days prior written notice (unless such negligence, misconduct or failure is not susceptible
to cure, as determined in the reasonable discretion of the Board); or (iv) the Executive violates the Covenants Agreement (as
defined in Section 5.1 below).

 

    	 	-4-	 

     

    

 

(c)
As used in this Agreement, “Good Reason” means the occurrence of any of the following: (1) a material breach
by the Company of the terms of this Agreement; (2) a material reduction in the Executive’s Base Salary (other than pursuant
to a reduction uniformly applicable to all senior executives of the Company); (3) a material diminution in the Executive’s
authority, duties or responsibilities; or (4) a change in the geographic location at which the Executive performs services for
the Company of more than fifty (50) miles; provided, however, that the Executive must notify the Company within
ninety (90) days of the occurrence of any of the foregoing conditions that he considers it to be a “Good Reason” condition
and provide the Company with at least thirty (30) days in which to cure the condition. If the Executive fails to provide this
notice and cure period prior to his resignation, or resigns more than six (6) months after the initial existence of the condition,
his resignation will not be deemed to be for “Good Reason.” It is an express condition of this Agreement that an acquiring
entity in a Change in Control assume this Agreement; if this Agreement is not so assumed, it shall constitute a material breach
by the Company of the terms of the Agreement.

 

(d)
If the Executive’s employment is terminated pursuant to Section 4.1(a), other than during the Post-Change in Control
Period (as defined in Section 4.1(e)), the Executive shall, in full discharge of all of the Company’s obligations
to the Executive, be entitled to receive, and the Company’s sole obligation to the Executive under this Agreement or otherwise
shall be to pay or provide to the Executive, the following:

 

(i)
the Accrued Obligations (as defined in Section 4.2(b))

 

(ii)
for each outstanding stock option held by the Executive under the Plan for which vesting is time-based, accelerated vesting upon
the Termination Date as if the Executive had provided service to the Company for an additional twelve (12) months, and all of
the Executive’s outstanding vested stock options shall remain exercisable for a period of twelve (12) months, measured from
the Termination Date (but in no event later than the expiration date of their term); and

 

(iii)
subject to Section 4.4 and Section 4.5:

 

(A)
payments equal to twelve (12) months of Executive’s Base Salary at the rate in effect immediately prior to the Termination
Date (provided that if such salary has been reduced, the pre-reduction Base Salary) (less applicable withholdings and authorized
deductions), (the “Pre-CIC Severance Payments”), to be paid (subject to Section 5.16) in six (6) equal
installments bimonthly in accordance with the Company’s regular payroll practices, commencing on the next regular payroll
date that occurs on or after the sixtieth (60th) day following the Termination Date; and

 

(B)
monthly payments equal to the monthly cost to Executive of healthcare coverage for Executive and his dependents at such rate as
is in effect the time of termination, for the period beginning on the day following the Termination Date and ending on the
earlier of: (A) the twelve (12) month anniversary of the Termination Date; and (B) the date the Executive becomes eligible
to obtain substantially similar alternate healthcare coverage from a new employer. Notwithstanding anything set forth in this
Section 4.1(d)(iii)(B), if and to the extent that the Company may not provide such healthcare coverage assistance without
incurring tax penalties or violating any requirement of the law, the Company shall use its commercially reasonable best efforts
to provide substantially similar assistance in an alternative manner provided that the cost of doing so does not exceed the cost
that the Company would have incurred had the healthcare coverage assistance been provided in the manner described above or cause
a violation of Section 409A (as defined in Section 5.16).

 

    	 	-5-	 

     

    

 

(e)
If the Executive’s employment is terminated pursuant to Section 4.1(a) within twenty-four (24) months following a
Change in Control (as defined below) (the “Post-Change in Control Period”), the Executive shall, in full discharge
of all of the Company’s obligations to the Executive (and in lieu of any payments and benefits set forth in Section 4.1(d)),
be entitled to receive, and the Company’s sole obligation to the Executive under this Agreement or otherwise shall be to
pay or provide to the Executive, the following:

 

(i)
the Accrued Obligations;

 

(ii)
for each outstanding stock option held by the Executive under the Plan for which vesting is time-based, accelerated vesting upon
the Termination Date as if the Executive had provided service to the Company for an additional eighteen (18) months, and all of
the Executive’s outstanding vested stock options shall remain exercisable for a period of eighteen (18) months, measured
from the Termination Date (but in no event later than the expiration date of their term); and

 

(iii)
subject to Section 4.4, Section 4.5, Section 4.6 and Section 4.7:

 

(A)
payments equal to eighteen (18) months of Executive’s Base Salary at the rate in effect immediately prior to the Termination
Date (provided that if such salary has been reduced, the pre-reduction Base Salary) (less applicable withholdings and authorized
deductions), (the “Post-CIC Severance Payments”), to be paid (subject to Section 5.16) in nine (9) equal
installments bimonthly in accordance with the Company’s regular payroll schedule, commencing on the next regular payroll
date that occurs on or after the sixtieth (60th) day following the Termination Date; and

 

(B)
the payments for healthcare coverage pursuant to Section 4.1(d)(iii)(B).

 

Section
4.2. Termination for Cause; Voluntary Termination; Expiration of Term.

 

(a)
The Company may terminate the Executive’s employment hereunder at any time for Cause upon written notice to the Executive.
The Executive may voluntarily terminate his employment hereunder at any time without Good Reason upon sixty (60) days prior written
notice to the Company; provided, however, the Company reserves the right, upon written notice to the Executive,
to accept the Executive’s notice of resignation and to accelerate such notice and make the Executive’s resignation
effective immediately, or on such other date prior to Executive’s intended last day of work as the Company deems appropriate.
It is understood and agreed that the Company’s election to accelerate Executive’s notice of resignation shall not
be deemed a termination by the Company without Cause for purposes of Section 4.1 of this Agreement or otherwise or constitute
Good Reason (as defined in Section 4.1) for purposes of Section 4.1 of this Agreement or otherwise. The Executive’s
employment shall automatically terminate upon the expiration of the Term in accordance with Section 1.2.

 

    	 	-6-	 

     

    

 

(b)
If the Executive’s employment is terminated pursuant to Section 4.2(a), the Executive shall, in full discharge of
all of the Company’s obligations to the Executive, be entitled to receive, and the Company’s sole obligation under
this Agreement or otherwise shall be to pay or provide to the Executive, the following (collectively, the “Accrued Obligations”):

 

(i)
the Executive’s earned, but unpaid, Base Salary through the final date of the Executive’s employment by the Company
(the “Termination Date”), payable in accordance with the Company’s standard payroll practices;

 

(ii)
the Executive’s accrued, but unused, vacation (in accordance with the Company’s policies);

 

(iii)
expenses reimbursable under Section 3.2 above incurred on or prior to the Termination Date but not yet reimbursed; and

 

(iv)
any amounts or benefits that are vested amounts or vested benefits or that the Executive is otherwise entitled to receive under
any Company plan, program, policy or practice (with the exception of those, if any, relating to severance) on the Termination
Date, in accordance with such plan, program, policy, or practice.

 

Section
4.3. Termination Resulting from Death or Disability.

 

(a)
As the result of any Disability suffered by the Executive, the Company may, upon five (5) days prior notice to the Executive,
terminate the Executive’s employment under this Agreement. The Executive’s employment shall automatically terminate
upon his death.

 

(b)
“Disability” means a determination by the Company in accordance with applicable law that as a result of a physical
or mental injury or illness, the Executive is unable to perform the essential functions of his job with or without reasonable
accommodation for a period of (i) ninety (90) consecutive days; or (ii) one hundred twenty (120) days during any twelve (12) month
period.

 

(c)
If the Executive’s employment is terminated pursuant to Section 4.3(a), the Executive or the Executive’s estate,
as the case may be, shall be entitled to receive, and the Company’s sole obligation under this Agreement or otherwise shall
be to pay or provide to the Executive or the Executive’s estate, as the case may be, the Accrued Obligations.

 

Section
4.4. Release Agreement. In order to receive the Pre-CIC Severance Payments, the Post-CIC Severance Payments, or the healthcare
coverage assistance set forth in Section 4.1 (if eligible), the Executive must timely execute (and not revoke) a mutual
separation agreement and mutual general release (the “Release Agreement”) in a customary form as is determined
to be reasonably necessary and mutually agreeable to the parties. If the Executive is eligible for Severance Payments and healthcare
coverage assistance pursuant to Section 4.1, the Company will deliver the Release Agreement to the Executive within seven
(7) calendar days following the Termination Date. The Severance Payments and healthcare coverage assistance are subject to the
Executive’s execution of such Release Agreement within 45 days of the Executive’s receipt of the Release Agreement
and the Executive’s non-revocation of such Release Agreement.

 

    	 	-7-	 

     

    

 

Section
4.5. Post-Termination Breach. Notwithstanding anything to the contrary contained in this Agreement, the Company’s
obligations to provide the Severance Payments and the healthcare coverage assistance will immediately cease if the Executive breaches
any of the provisions of the Covenants Agreement, the Release Agreement or any other agreement the Executive has with the Company.

 

Section
4.6. Removal from any Boards and Position. If the Executive’s employment is terminated for any reason under this
Agreement, he shall be deemed (without further action, deed or notice) to resign (i) if a member, from the board of directors
(or similar governing body) of any Affiliate of the Company or any other board to which he has been appointed or nominated by
or on behalf of the Company and (ii) from all other positions as an employee of the Company or any subsidiary or other Affiliate
of the Company.

 

Section
4.7 Covenants Regarding Other Employees. During the term of this Agreement, and for a period of twelve (12) months following
the Executive’s termination of employment for any reason, the Executive agrees not to actively solicit any employee of the
Company to terminate his or her employment with the Company or to interfere in a similar manner with the business of the Company.

 

Section
4.8. Noncompete Following a Termination of Employment. From the Effective Date of this Agreement until twelve (12) months
following the Termination Date for any reason pursuant to Section 4.2 (other than as a result of the expiration of the
Term pursuant to Section 1.2) the Executive will not: (a) directly or indirectly own any equity or proprietary interest in (except
for ownership of shares in a publicly traded company not exceeding three percent (3%) of any class of outstanding securities),
or be an employee, agent, director, advisor, or consultant to or for any Competitor of the Company, whether on his own behalf
or on behalf of any person; or (b) undertake any action to induce or cause any customer or client to discontinue any part of its
business with the Company.

 

“Competitor”
shall mean any entity that is engaged, directly or indirectly, in the business of developing and/or commercializing an enteroviral
vaccine to prevent the onset of type one diabetes and/or a CSF1R or TLR3 targeted therapeutic interception. In the event Company
in-licenses or acquires other assets while the Executive is still employed by the Company, the definition of Competitor, subject
to prior notice and the mutual written agreement of the parties, will be expanded to include the specific mechanisms of action
against which the in-licensed or acquired assets are at that time known to be targeted.

 

ARTICLE
5

GENERAL PROVISIONS

 

Section
5.1. Company Non-Disclosure and Invention Assignment Agreement. Concurrent with the execution of this Agreement, Executive
shall enter into an Employee Non-Disclosure and Invention Assignment Agreement (“Covenants Agreement”), the
terms of which are incorporated herein by reference. The Covenants Agreement shall survive the termination of this Agreement and
the Executive’s employment by the Company for the applicable period(s) set forth therein.

 

    	 	-8-	 

     

    

 

Section
5.2. Expenses. Each of the Company and the Executive shall bear its/his own costs, fees and expenses in connection with
the negotiation, preparation and execution of this Agreement.

 

Section
5.3. Entire Agreement. This Agreement and the Covenants Agreement contain the entire agreement of the parties hereto with
respect to the terms and conditions of the Executive’s employment during the Term and activities following termination of
this Agreement and the Executive’s employment with the Company and supersede any and all prior agreements and understandings,
whether written or oral, between the parties hereto with respect to the subject matter of this Agreement or the Covenants Agreement.
Each party hereto acknowledges that no representations, inducements, promises or agreements, whether oral or in writing, have
been made by any party, or on behalf of any party, which are not embodied herein or in the Covenants Agreement. The Executive
acknowledges and agrees that the Company has fully satisfied, and has no further, obligations to the Executive arising under,
or relating to, any other employment or consulting arrangement or understanding (including, without limitation, any claims for
compensation or benefits of any kind) or otherwise. No agreement, promise or statement not contained in this Agreement or the
Covenants Agreement shall be valid and binding, unless agreed to in writing and signed by the parties sought to be bound thereby.

 

Section
5.4. No Other Contracts. The Executive represents and warrants to the Company that neither the execution and delivery of
this Agreement by the Executive nor the performance by the Executive of the Executive’s obligations hereunder, shall constitute
a default under or a breach of the terms of any other agreement, contract or other arrangement, whether written or oral, to which
the Executive is a party or by which the Executive is bound, nor shall the execution and delivery of this Agreement by the Executive
nor the performance by the Executive of his duties and obligations hereunder give rise to any claim or charge against either the
Executive, the Company or any Affiliate, based upon any other contract or other arrangement, whether written or oral, to which
the Executive is a party or by which the Executive is bound. The Executive further represents and warrants to the Company that
he is not a party to or subject to any restrictive covenants, legal restrictions or other agreement, contract or arrangement,
whether written or oral, in favor of any entity or person which would in any way preclude, inhibit, impair or limit the Executive’s
ability to perform his obligations under this Agreement or the Covenants Agreement, including, but not limited to, non-competition
agreements, non-solicitation agreements or confidentiality agreements. The Executive shall defend, indemnify and hold the Company
harmless from and against all claims, actions, losses, liabilities, damages, costs and expenses (including reasonable attorney’s
fees and amounts paid in settlement in good faith) arising from or relating to any breach of the representations and warranties
made by the Executive in this Section 5.4.

 

Section
5.5. Notices. Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered
personally or sent by nationally recognized overnight courier service (with next business day delivery requested). Any such notice
or communication shall be deemed given and effective, in the case of personal delivery, upon receipt by the other party, and in
the case of a courier service, upon the next business day, after dispatch of the notice or communication. Any such notice or communication
shall be addressed as follows:

 

    	 	-9-	 

     

    

 

If
to the Company, to:

 

Provention
Bio, Inc.

110
Old Driftway Lane

Lebanon,
NJ 08833

Attn:
Board of Directors

 

With
a copy to: 

 

Lowenstein
Sandler LLP

1251
Avenue of the Americas

New
York, New York 10020

Attn:
Michael J. Lerner, Esq.

 

If
to the Executive, to:

 

Ashleigh
Palmer

110
Old Driftway Lane

Lebanon,
NJ 08833

 

Any
person named above may designate another or an additional notification address and contact person by giving notice in accordance
with this Section to the other persons named above.

 

Section
5.6. Governing Law; Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New Jersey, without regard to principles of conflicts of law. Any and all actions arising out of this Agreement or Employee’s
employment by Company or termination therefrom shall be brought and heard in the state and federal courts of the State of New
Jersey and the parties hereto hereby irrevocably submit to the exclusive jurisdiction of any such courts. The
Company and the Executive HEREBY WAIVE THEIR RESPECTIVE RIGHT TO TRIAL BY JURY IN ANY ACTION CONCERNING THIS AGREEMENT
OR ANY AND ALL MATTERS ARISING DIRECTLY OR INDIRECTLY HEREFROM AND REPRESENT THAT THEY HAVE CONSULTED WITH COUNSEL OF THEIR CHOICE
OR HAVE CHOSEN VOLUNTARILY NOT TO DO SO SPECIFICALLY WITH RESPECT TO THIS WAIVER.

 

Section
5.7. Waiver. Either party hereto may waive compliance by the other party with any provision of this Agreement. The failure
of a party to insist on strict adherence to any term of this Agreement on any occasion shall not be considered a waiver or deprive
that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. No waiver
of any provision shall be construed as a waiver of any other provision. Any waiver must be in writing.

 

    	 	-10-	 

     

    

 

Section
5.8. Severability. If any one or more of the terms, provisions, covenants and restrictions of this Agreement shall be determined
by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated
and the parties will attempt to agree upon a valid and enforceable provision which shall be a reasonable substitute for such invalid
and unenforceable provision in light of the tenor of this Agreement, and, upon so agreeing, shall incorporate such substitute
provision in this Agreement. In addition, if any one or more of the provisions contained in this Agreement shall for any reason
be determined by a court of competent jurisdiction to be excessively broad as to duration, geographical scope, activity or subject,
it shall be construed, by limiting or reducing it, so as to be enforceable to the extent compatible with then applicable law.

 

Section
5.9. Counterparts. This Agreement may be executed in any number of counterparts and each such duplicate counterpart shall
constitute an original, any one of which may be introduced in evidence or used for any other purpose without the production of
its duplicate counterpart. Moreover, notwithstanding that any of the parties did not execute the same counterpart, each counterpart
shall be deemed for all purposes to be an original, and all such counterparts shall constitute one and the same instrument, binding
on all of the parties hereto.

 

Section
5.10. Advice of Counsel. This Agreement was prepared by Lowenstein Sandler LLP in its capacity as legal counsel to the
Company. Both parties hereto acknowledge that they have had the opportunity to seek and obtain the advice of counsel before entering
into this Agreement and have done so to the extent desired, and have fully read the Agreement and understand the meaning and import
of all the terms hereof.

 

Section
5.11. Assignment. This Agreement shall inure to the benefit of the Company and its successors and assigns (including, without
limitation, the purchaser of all or substantially all of its assets) and shall be binding upon the Company and its successors
and assigns. This Agreement is personal to the Executive, and the Executive shall not assign or delegate his rights or duties
under this Agreement, and any such assignment or delegation shall be null and void.

 

Section
5.12. Agreement to Take Actions. Each party to this Agreement shall execute and deliver such documents, certificates, agreements
and other instruments, and shall take all other actions, as may be reasonably necessary or desirable in order to perform his or
its obligations under this Agreement.

 

Section
5.13. No Attachment. Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation,
commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation or to execution, attachment, levy or
similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall
be null, void and of no effect; provided, however, that nothing in this Section 5.13 shall
preclude the assumption of such rights by executors, administrators or other legal representatives of the Executive or the Executive’s
estate and their assigning any rights hereunder to the person or persons entitled thereto.

 

    	 	-11-	 

     

    

 

Section
5.14. Source of Payment. Except as otherwise provided under the terms of any applicable employee benefit plan, all payments
provided for under this Agreement shall be paid in cash from the general funds of Company. The Company shall not be required to
establish a special or separate fund or other segregation of assets to assure such payments, and, if the Company shall make any
investments to aid it in meeting its obligations hereunder, the Executive shall have no right, title or interest whatever in or
to any such investments except as may otherwise be expressly provided in a separate written instrument relating to such investments.
Nothing contained in this Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a
trust of any kind, or a fiduciary relationship, between the Company and the Executive or any other person. To the extent that
any person acquires a right to receive payments from the Company hereunder, such right, without prejudice to rights which employees
may have, shall be no greater than the right of an unsecured creditor of the Company. The Executive shall not look to the owners
of the Company for the satisfaction of any obligations of the Company under this Agreement.

 

Section
5.15. Tax Withholding. The Company or other payor is authorized to withhold from any benefit provided or payment due hereunder,
the amount of withholding taxes due any federal, state or local authority in respect of such benefit or payment and to take such
other action as may be necessary in the opinion of the Board to satisfy all obligations for the payment of such withholding taxes.
The Executive will be solely responsible for all taxes assessed against him with respect to the compensation and benefits described
in this Agreement, other than typical employer-paid taxes such as FICA, and the Company makes no representations as to the tax
treatment of such compensation and benefits.

 

Section
5.16. 409A Compliance. All payments under this Agreement are intended to comply with or be exempt from the requirements
of Section 409A of the Code and regulations promulgated thereunder (“Section 409A”). As used in this Agreement,
the “Code” means the Internal Revenue Code of 1986, as amended. To the extent permitted under applicable regulations
and/or other guidance of general applicability issued pursuant to Section 409A, the Company reserves the right to modify this
Agreement to conform with any or all relevant provisions regarding compensation and/or benefits so that such compensation and
benefits are exempt from the provisions of 409A and/or otherwise comply with such provisions so as to avoid the tax consequences
set forth in Section 409A and to assure that no payment or benefit shall be subject to an “additional tax” under Section
409A. To the extent that any provision in this Agreement is ambiguous as to its compliance with Section 409A, or to the extent
any provision in this Agreement must be modified to comply with Section 409A, such provision shall be read in such a manner so
that no payment due to the Executive shall be subject to an “additional tax” within the meaning of Section 409A(a)(1)(B)
of the Code. If necessary to comply with the restriction in Section 409A(a)(2)(B) of the Code concerning payments to “specified
employees,” any payment on account of the Executive’s separation from service that would otherwise be due hereunder
within six (6) months after such separation shall be delayed until the first business day of the seventh month following the Termination
Date and the first such payment shall include the cumulative amount of any payments (without interest) that would have been paid
prior to such date if not for such restriction. Each payment in a series of payments hereunder shall be deemed to be a separate
payment for purposes of Section 409A. In no event may the Executive, directly or indirectly, designate the calendar year of payment.
All reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A,
including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the Executive’s
lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement
during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement
of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is
incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit. Notwithstanding anything
contained herein to the contrary, the Executive shall not be considered to have terminated employment with the Company for purposes
of Section 4.1 unless the Executive would be considered to have incurred a “termination of employment” from
the Company within the meaning of Treasury Regulation §1.409A-1(h)(1)(ii). In no event whatsoever shall the Company be liable
for any additional tax, interest or penalty that may be imposed on the Executive by Section 409A or damages for failing to comply
with Section 409A.

 

    	 	-12-	 

     

    

 

Section
5.17. 280G Modified Cutback.

 

(a)
If any payment, benefit or distribution of any type to or for the benefit of the Executive, whether paid or payable, provided
or to be provided, or distributed or distributable pursuant to the terms of this Agreement or otherwise (collectively, the “Parachute
Payments”) would subject the Executive to the excise tax imposed under Section 4999 of the Code (the “Excise
Tax”), the Parachute Payments shall be reduced so that the maximum amount of the Parachute Payments (after reduction)
shall be one dollar ($1.00) less than the amount which would cause the Parachute Payments to be subject to the Excise Tax; provided
that the Parachute Payments shall only be reduced to the extent the after-tax value of amounts received by the Executive after
application of the above reduction would exceed the after-tax value of the amounts received without application of such reduction.
For this purpose, the after-tax value of an amount shall be determined taking into account all federal, state, and local income,
employment and excise taxes applicable to such amount. Unless the Executive shall have given prior written notice to the Company
to effectuate a reduction in the Parachute Payments if such a reduction is required, which notice shall be consistent with the
requirements of Section 409A to avoid the imputation of any tax, penalty or interest thereunder, then the Company shall reduce
or eliminate the Parachute Payments by first reducing or eliminating any cash payments (with the payments to be made furthest
in the future being reduced first), then by reducing or eliminating accelerated vesting of stock options or similar awards, and
then by reducing or eliminating any other remaining Parachute Payments; provided, that no such reduction or elimination shall
apply to any non-qualified deferred compensation amounts (within the meaning of Section 409A) to the extent such reduction or
elimination would accelerate or defer the timing of such payment in manner that does not comply with Section 409A.

 

(b)
An initial determination as to whether (x) any of the Parachute Payments received by the Executive in connection with the occurrence
of a change in the ownership or control of the Company or in the ownership of a substantial portion of the assets of the Company
shall be subject to the Excise Tax, and (y) the amount of any reduction, if any, that may be required pursuant to the previous
paragraph, shall be made by an independent accounting firm selected by the Company (the “Accounting Firm”)
prior to the consummation of such change in the ownership or effective control of the Company or in the ownership of a substantial
portion of the assets of the Company. The Executive shall be furnished with notice of all determinations made as to the Excise
Tax payable with respect to the Executive’s Parachute Payments, together with the related calculations of the Accounting
Firm, promptly after such determinations and calculations have been received by the Company.

 

    	 	-13-	 

     

    

 

(c)
For purposes of this Section 5.17, (i) no portion of the Parachute Payments the receipt or enjoyment of which the Executive
shall have effectively waived in writing prior to the date of payment of the Parachute Payments shall be taken into account; (ii)
no portion of the Parachute Payments shall be taken into account which in the opinion of the Accounting Firm does not constitute
a “parachute payment” within the meaning of Section 280G(b)(2) of the Code; (iii) the Parachute Payments shall be
reduced only to the extent necessary so that the Parachute Payments (other than those referred to in the immediately preceding
clause (i) or (ii)) in their entirety constitute reasonable compensation for services actually rendered within the meaning of
Section 280G(b)(4) of the Code or are otherwise not subject to disallowance as deductions, in the opinion of the auditor or tax
counsel referred to in such clause (ii); and (iv) the value of any non-cash benefit or any deferred payment or benefit included
in the Parachute Payments shall be determined by the Company’s independent auditors based on Sections 280G and 4999 of the
Code and the regulations for applying those sections of the Code, or on substantial authority within the meaning of Section 6662
of the Code.

 

Section
5.18. Recoupment of Erroneously Awarded Compensation. Any incentive-based or other compensation paid to the Executive under
this Agreement or any other agreement or arrangement with the Company which is subject to recovery under any law, government regulation,
stock exchange listing requirement or any clawback policy adopted by the Company from time to time will be subject to the deductions
and clawback as may be required by such law, government regulation, stock exchange listing requirement or clawback policy. In
addition, if the executive is or becomes an executive officer subject to the incentive compensation repayment requirements of
the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), then if required by the
Dodd-Frank Act or any of its regulations he will enter into an amendment to this Agreement or a separate written agreement with
the Company to comply with the Dodd-Frank Act and any of its regulations.

 

Section
5.19. Certain Definitions. As used in this Agreement, “Change in Control” means (x) a change in ownership
of the Company under clause (i) below or (y) a change in the ownership of a substantial portion of the assets of the Company under
clause (ii) below:

 

(i)
Change in the Ownership of the Company. A change in the ownership of the Company shall occur on the date that any one person,
or more than one person acting as a group (as defined in clause (iii) below), acquires ownership of capital stock of the Company
that, together with capital stock held by such person or group, constitutes more than 50 percent of the total fair market value
or total voting power of the capital stock of the Company. However, if any one person or more than one person acting as a group,
is considered to own more than 50 percent of the total fair market value or total voting power of the capital stock of the Company,
the acquisition of additional capital stock by the same person or persons shall not be considered to be a change in the ownership
of the Company. An increase in the percentage of capital stock owned by any one person, or persons acting as a group, as a result
of a transaction in which the Company acquires capital stock in the Company in exchange for property will be treated as an acquisition
of stock for purposes of this paragraph.

 

    	 	-14-	 

     

    

 

(ii)
Change in the Ownership of a Substantial Portion of the Company’s Assets. A change in the ownership of a substantial
portion of the Company’s assets shall occur on the date that any one person, or more than one person acting as a group (as
defined in clause (iii) below), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition
by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 80 percent
of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions.
For this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed
of, determined without regard to any liabilities associated with such assets. There is no Change in Control under this clause
(ii) when there is a transfer to an entity that is controlled by the shareholders of the Company immediately after the transfer,
as provided below in this clause (ii). A transfer of assets by the Company is not treated as a change in the ownership of such
assets if the assets are transferred to (a) a shareholder of the Company (immediately before the asset transfer) in exchange for
or with respect to its capital stock, (b) an entity, 50 percent or more of the total value or voting power of which is owned,
directly or indirectly, by the Company, (c) a person, or more than one person acting as a group, that owns, directly or indirectly,
50 percent or more of the total value or voting power of all the outstanding capital stock of the Company, or (d) an entity, at
least 50 percent of the total value or voting power of which is owned, directly or indirectly, by a person described in clause
(ii)(c) of this paragraph. For purposes of this clause (ii), a person’s status is determined immediately after the transfer
of the assets.

 

(iii)
Persons Acting as a Group. For purposes of clauses (i) and (ii) above, persons will not be considered to be acting as a
group solely because they purchase or own capital stock or purchase assets of the Company at the same time. However, persons will
be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or
acquisition of assets or capital stock, or similar business transaction with the Company. If a person, including an entity, owns
stock in both corporations that enter into a merger, consolidation, purchase or acquisition of assets or capital stock, or similar
transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation only with respect
to the ownership in that corporation before the transaction giving rise to the change and not with respect to the ownership interest
in the other corporation. For purposes of this paragraph, the term “corporation” shall have the meaning assigned such
term under Treasury Regulation section 1.280G-1, Q&A-45.

 

(iv)
Each of clauses (i) through (iii) above shall be construed and interpreted consistent with the requirements of Section 409A and
any Treasury Regulations or other guidance issued thereunder.

 

[Signature
Page Follows]

 

    	 	-15-	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 

	 	COMPANY
	 	 	 
	 	Provention
    bio, Inc.
	 	 	 
	 	By:	/s/ Anthony
    DiGiandomenico
	 	Name:	Anthony DiGiandomenico

	 	Title:	Director

 

	 	EXECUTIVE
	 	 
	 	/s/
    Ashleigh Palmer
	 	Ashleigh
    Palmer

 

[Signature
Page to Employment Agreement - Palmer]

 

    	 	-16-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00283-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00283-of-00352.parquet"}]]