Document:

Document

Exhibit 10.2

EQUITY EXCHANGE RIGHT AGREEMENT
THIS EQUITY EXCHANGE RIGHT AGREEMENT (this “Agreement”) is made and entered into as of April 20, 2021, by and between Recursion Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Christopher Gibson (the “Founder”).
WHEREAS, the Company’s board of directors (the “Board”) has determined that it is in the best interests of the Company and its stockholders to implement a dual class common stock structure in connection with the Company’s initial public offering of its capital stock (the “IPO”) to, among other things, enable the Company to execute its long-term vision; 
WHEREAS, in connection with the IPO, the Board has approved an Amended and Restated Certificate of Incorporation of the Company (the “Amended and Restated Certificate of Incorporation”), which, among other things, if effected, would create two series within a class of common stock of the Company, denominated Class A Common Stock, par value $0.00001 per share (“Class A Common Stock”), entitling holders to one (1) vote for each share thereof held and Class B Common Stock, par value $0.00001 per share (“Class B Common Stock”), entitling holders to ten (10) votes for each share thereof held, unless otherwise required by applicable law; 
WHEREAS, the Amended and Restated Certificate of Incorporation further provides that each share of the Company’s common stock, par value $0.00001 per share (the “Common Stock”) will, upon the effectiveness of the filing of the Amended and Restated Certificate of Incorporation (the “Effective Time”), be reclassified as, and will become, one share of Class A Common Stock;
WHEREAS, Founder holds an award of options to purchase Common Stock that will be outstanding as of immediately prior to the Effective Time as set forth in Exhibit A (the “Founder Equity Award”) and the shares of Common Stock covered by the Founder Equity Award will be reclassified as, and will become, Class A Common Stock at the Effective Time, and the Founder Equity Award has been granted under the Company’s 2016 Equity Incentive Plan, as amended, and the option agreement memorializing the Founder Equity Award (collectively, the “Equity Documents”); and
WHEREAS, as part of the implementation of the dual class common stock structure, the Board has determined that it is advisable and in the best interest of the Company and all of its stockholders, including its stockholders other than Founder, to provide Founder with the right to require the Company to exchange shares of Class A Common Stock that Founder acquires upon the exercise of his Founder Equity Award for a number of shares of Class B Common Stock of equivalent value as determined on the date of the exchange (which is expected to be on a one share-for-one share basis), subject to the terms and conditions set forth in this Agreement; and 
WHEREAS, the parties intend that no gain or loss will be recognized in any Exchange (as defined below) pursuant to Sections 368(a)(1)(E) and/or 1036 of the Internal Revenue Code of 1986, as amended (the “Code”).
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises, representations and covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and accepted, the parties hereto agree as follows:

ARTICLE I.
PUT RIGHT AND EXCHANGE AND ISSUANCE OF CLASS B COMMON STOCK
i.Grant of Put Right. Effective immediately following the Effective Time, and subject to the terms and provisions of this Agreement (including Section 1.2(a) below), the Company hereby irrevocably grants to Founder the right (the “Put Right”) to require the Company to exchange any shares of Class A Common Stock that Founder acquires following the Effective Time as a result of the exercise of his Founder Equity Award (each, a “Put Eligible Share”) for a number of shares of Class B Common Stock of equivalent value as determined on the date of the exchange (which is expected to be on a one share-for-one share basis), subject to the terms and conditions set forth in this Agreement (the “Exchange”).
ii.Exercise of Put Right.  
(1)As a condition precedent to the exercise of the Put Right on any given date, the Company and Founder must mutually agree on the value-for-value exchange ratio and that no gain or loss will be required to be recognized for U.S. federal tax purposes on account of such exercise and related Exchange (the “Put Right Condition”).
(2)If the Put Right Condition is satisfied, the Put Right will be exercisable by Founder by submitting a completed and fully-executed notice in the form attached hereto as Exhibit B (the “Put Right Notice”) to the Company on or prior to the Put Right’s Expiration Date (as defined in Section 1.5 below).  If the Put Right Condition is satisfied, the Put Right will be deemed to have been exercised immediately prior to 5:00 p.m. Mountain Time on the date of timely delivery of a Put Right Notice with respect to the Put Right.  
(3)Failure to satisfy the Put Right Condition or to deliver a Put Right Notice prior to 5:00 p.m. Mountain Time on a Put Right’s Expiration Date will constitute an irrevocable waiver of the Put Right with respect to any shares of Class A Common Stock that remain subject to the Founder Equity Award and any remaining Put Eligible Shares.  
(4)A Put Right cannot be exercised by Founder with respect to any Put Eligible Share more than once.  Further, Founder will have no Put Right pursuant to this Agreement with respect to any share of Class A Common Stock that is acquired by Founder following the Effective Time other than as a result of the exercise of the Founder Equity Award.
iii.Exchange of Shares.  Within ten (10) calendar days after the Company’s receipt of a properly executed Put Right Notice, and provided the Put Right Condition remains satisfied, the Company will complete the Exchange for the specified number of Put Eligible Shares indicated in the Put Right Notice (“Exercised Shares”) by issuing, out of authorized but unissued shares of Class B Common Stock legally available therefor, a number of shares of Class B Common Stock to Founder of equivalent value determined on the date of the Exchange (which is expected to be on a one share-for-one share basis).  Upon the effectiveness of such Exchange, the Company will deliver to Founder such documentation as may be reasonably required to evidence that the shares of Class B Common Stock have been duly issued and transferred to the applicable Founder in exchange for the Exercised Shares.
iv.Rights to Shares of Class A Common Stock Following Exchange.  Upon the Exchange, Founder will no longer have any rights as a holder of the Exercised Shares that are the subject of the Exchange (other than the right to receive the shares of Class B Common Stock in accordance with this Agreement).  Such Exercised Shares will be deemed to have been redeemed by the Company in accordance with the applicable provisions hereof, whether or not the certificate(s) therefor have been delivered to Founder.
-2-

v.Termination of Put Right.  The Put Right will terminate on the following date(s) (the “Expiration Date”):
(1)With respect to any shares of Class A Common Stock subject to the Founder Equity Award that have not become Put Eligible Shares, the Expiration Date will be the date such shares are forfeited pursuant to the applicable Equity Documents; and
(2)With respect to any Put Eligible Shares, the Expiration Date will be the earliest of the date on which:
(a)Founder sells, transfers, or otherwise disposes of such Put Eligible Shares; and
(b)the Final Conversion Date (as defined in the Amended and Restated Certificate of Incorporation).
ARTICLE II.
REPRESENTATIONS AND WARRANTIES OF THE FOUNDER
Founder hereby represents and warrants to the Company, with respect to the transactions contemplated hereby, as follows:
i.Ownership; Authority.  Founder has the full right, power and authority to enter into this Agreement. Assuming the due authorization, execution and delivery by the Company, this Agreement constitutes a valid and binding agreement of Founder, enforceable against Founder in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other laws affecting creditors’ rights generally and general principles of equity).  Upon consummation of an Exchange contemplated hereby, the Company will acquire from Founder good and marketable title to the Exercised Shares subject to such Exchange, free and clear of any and all liens, encumbrances and restrictions (except for restrictions on transfer arising under applicable securities laws or as set forth or contemplated by this Agreement, the Amended and Restated Certificate of Incorporation or any other agreements to which Founder and the Company are a party, and subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other laws affecting creditors’ rights generally and general principles of equity).   
ii.Governmental Authorization. The execution, delivery and performance by Founder of this Agreement and the consummation of the transactions contemplated hereby require no action by or in respect of, or filing with, any governmental authority on the part of Founder (excluding, for the avoidance of doubt (a) the filing by the Company of the Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware and (b) compliance by the Company with any applicable requirements of any applicable state or federal securities laws).  For purposes of this Agreement, “governmental authority” means any transnational, domestic or foreign federal, state or local governmental, regulatory or administrative authority, department, court, agency or official, including any political subdivision thereof.
iii.Noncontravention. The execution, delivery and performance by Founder of this Agreement and the consummation of the transactions contemplated hereby do not and will not (a) violate any governing document, including any trust agreement, applicable to Founder, (b) subject to compliance with Section 2.2, violate any applicable law, (c) assuming the waiver or inapplicability of any and all rights of first refusal or co-sale held by the Company or the Company’s stockholders that are applicable to the 
-3-

transactions contemplated hereby, require any consent or other action under, constitute a default under, or give rise to any right of termination, cancellation or acceleration of any obligation of Founder or to the loss of any benefit to which Founder is entitled under any provision of any agreement or other instrument binding upon Founder or (d) result in the creation or imposition of any lien on Founder’s Founder Equity Award or the shares of Class A Common Stock underlying such awards, other than restrictions on transfer arising under applicable securities laws or as set forth or contemplated by this Agreement, the Amended and Restated Certificate of Incorporation or any other agreements to which Founder and the Company are a party.
ARTICLE III.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
The Company hereby represents and warrants to Founder, with respect to the transactions contemplated hereby, as follows:
i.Corporate Existence and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware.
ii.Corporate Authorization. The execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby, including the issuance and delivery of the shares of Class B Common Stock in connection with each Exchange hereunder (including the conversion of Class B Common Stock into Class A Common Stock upon the terms specified in the Amended and Restated Certificate of Incorporation and the reclassification of Common Stock into Class A Common Stock) in accordance with the Amended and Restated Certificate of Incorporation, are within the corporate powers of the Company and have been duly authorized by all necessary corporate action on the part of the Company and the Company’s stockholders, subject to compliance with Section 3.3 and the approval of and adoption by the Company’s stockholders of the Amended and Restated Certificate of Incorporation.  Any and all rights of first refusal or co-sale held by the Company or the Company’s stockholders that are applicable to the transactions contemplated hereby have been waived or are otherwise inapplicable to the transactions contemplated in this Agreement.  Assuming the due authorization, execution and delivery by Founder, this Agreement constitutes a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other laws affecting creditors’ rights generally and general principles of equity).
iii.Governmental Authorization. The execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby require no action by or in respect of, or filing with, any governmental authority other than (a) the filing by the Company of the Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware and (b) compliance by the Company with any applicable requirements of any applicable state or federal securities laws.
iv.Noncontravention. The execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby do not and will not, assuming compliance with the matters referred to in Section 3.3 and approval of and adoption by the Company’s stockholders of the Amended and Restated Certificate of Incorporation, (a) violate the certificate of incorporation or bylaws of the Company, (b) violate any applicable law, (c) require any consent or other action by any person under, constitute a default under, or give rise to any right of termination, cancellation or acceleration of any right or obligation of the Company or to the loss of any benefit to which the Company 
-4-

is entitled under any provision of any agreement or other instrument binding upon the Company or (d) result in the creation or imposition of any lien on the shares of Class B Common Stock other than as set forth or contemplated by this Agreement or the Amended and Restated Certificate of Incorporation.  
ARTICLE IV.
COVENANTS
i.Market Stand-Off Agreement.  Founder has entered into a lock-up agreement with the underwriters of the IPO with respect to the sale, disposition or transfer of Founder’s securities of the Company and Founder agrees not to revoke such lock-up agreement.  Founder also agrees that any other lock-up or market stand-off agreements applicable to the shares of Common Stock of the Company held by Founder will continue to apply to the shares of the Class B Common Stock in accordance with the terms of such agreements.
ARTICLE V.
GENERAL PROVISIONS
i.Governing Law. This Agreement will be governed in all respects by the internal laws of the State of Delaware as applied to agreements entered into among Delaware residents to be performed entirely within Delaware, without regard to principles of conflicts of law.
ii.Successors and Assigns. Except as otherwise provided herein, the provisions hereof will inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.
iii.Entire Agreement; Amendment. Other than the rights, restrictions and preferences provided for under the Equity Documents with respect to the Founder Equity Award and the Amended and Restated Certificate of Incorporation and bylaws with respect to the shares of Class B Common Stock, this Agreement, including the exhibits attached hereto, constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof.  Neither this Agreement nor any term hereof may be amended or waived other than by a written instrument signed by Founder and the Company.
iv.Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed an original, and all of which together will constitute one and the same instrument.
v.No Guarantee of Continued Service.  Founder acknowledges and agrees that neither the execution of this Agreement nor the existence of the Put Right granted hereunder constitutes an express or implied promise of continuous employment or service with the Company for any period, or at all, and that neither the execution of this Agreement nor the existence of the Put Right granted hereunder will interfere in any way with Founder’s right or the right of the Company to terminate Founder’s employment or service at any time, with or without cause.
vi.Tax Consequences.  The parties intend that no gain or loss will be recognized in any Exchange pursuant to Sections 368(a)(1)(E) and/or 1036 of the Code.  The parties adopt this Agreement as a plan of reorganization within the meaning of Treasury Regulations Sections 1.368-2(g) and 1.368-3(a).  Notwithstanding the foregoing, the Company and Founder each have reviewed with its/his own tax advisors the federal, state, local and foreign tax consequences of the Put Right and the Exchange, the Founder Equity Award and the potential acquisition of shares of Class A Common Stock thereunder, the potential exchange of such shares for shares of Class B Common Stock, and the transactions 
-5-

contemplated by this Agreement. Each party hereto is relying solely on such advisors and not on any statements or representations of the Company or any of its agents, or Founder or any of his agents, as applicable, in connection with the transactions contemplated hereby, except for the representations and warranties of the Company and Founder expressly set forth in Articles II and III.  
[Signature Page Follows]
-6-

IN WITNESS WHEREOF, the undersigned have executed this Agreement to be effective as of the date first above written.
RECURSION PHARMACEUTICALS, INC.

By:  /s/ Louisa Daniels    
Name:    Louisa Daniels    
Title:   Chief Legal Officer    

[Signature Page to Equity Exchange Right Agreement]

IN WITNESS WHEREOF, the undersigned have executed this Agreement to be effective as of the date first above written.

CHRISTOPHER GIBSON

By:   /s/ Christopher Gibson    

    
    
[Signature Page to Equity Exchange Right Agreement]

EXHIBIT A

												
	Grant Date	Expiration Date	Equity Award Type	Number of Shares of Class A Common Stock Subject to Founder Equity Award
	12/31/2020	12/30/2030	ISO/NSO	1,500,000
	Total:			1,500,000

EXHIBIT B
Put Right Notice (the “Notice”)
(To be signed only upon exercise of a Put Right)
To:    Recursion Pharmaceuticals, Inc. 
Attn: Chief Legal Officer
The undersigned (the “Founder”), hereby irrevocably elects to exercise its right under the Put Right pursuant to the Equity Exchange Right Agreement dated as of April 20, 2021 (the “Agreement”), by and between Recursion Pharmaceuticals, Inc. (the “Company”) and Founder, to require the Company to exchange ___________________ Put Eligible Shares (the “Exercised Shares”) for a number of shares of Class B Common Stock of equivalent value as determined on the date of the Exchange, subject to the terms of this Notice and the Agreement.  Capitalized terms not otherwise defined in the Notice will have the meaning ascribed to them in the Agreement.
By executing this Notice, Founder hereby represents and warrants to the Purchaser as follows: 
1.Acknowledgements. Founder acknowledges and affirms that the representations and warranties set forth in Article II of the Agreement as of the date of this Notice are true and correct, and agrees to the covenants set forth in Article IV of the Agreement. 
2.Legends.  It is understood that any certificate or book entry position representing the shares of Class B Common Stock and any securities issued in respect thereof or exchange therefor, will bear legends in substantially the following form (in addition to any legend required under applicable state securities laws or agreements to which Founder is a party):
“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.”
3.Restricted Securities; Rule 144.  Except as otherwise permitted by applicable law, Founder understands that any shares of Class B Common Stock issued to Founder in an Exchange will be characterized as “restricted securities” under the Act because such shares are being acquired from the Company in a transaction not involving a public offering and in exchange for shares acquired from the Company in a transaction not involving a public offering, and that under the Securities Act and the rules and regulations promulgated thereunder the shares of Class B Common Stock may be resold without registration under the Act only in certain limited circumstances, and subject to the restrictions under the Company’s certificate of incorporation.  Founder understands and hereby acknowledges that the shares of Class B Common Stock must be held indefinitely unless subsequently registered under the Act or an exemption from such registration is otherwise available.  Founder is aware of the provisions of Rule 144 promulgated under 

the Act, which permit limited resales of shares purchased in a transaction not involving a public offering, subject to the satisfaction of certain conditions.
4.Tax Matters.  Founder has reviewed with his own tax advisors the federal, state, local and foreign tax consequences of the Put Right and the Exchange, the Founder Equity Award and the potential acquisition of shares of Class A Common Stock thereunder, the potential exchange of such shares for shares of Class B Common Stock, and the transactions contemplated by this Agreement.  Founder is relying solely on such advisors and not on any statements or representations of the Company or any of its agents in connection with the transactions contemplated hereby, except for the representations and warranties of the Company expressly set forth in Article III of the Agreement.  

    Dated:      
    
Christopher Gibson
Address:     
    

[Signature Page to Put Right Notice]Document

Exhibit 10.1

EXICURE, INC.

2017 EQUITY INCENTIVE PLAN

RESTRICTED SHARE UNIT AWARD AGREEMENT

This Restricted Share Unit Award Agreement (this “Agreement”) is made and entered into as of the date set forth on the signature page hereto by and between Exicure, Inc., a Delaware corporation (the “Company”), and «Participant» (“Participant”). Unless otherwise defined herein, capitalized terms used herein shall have the same defined meanings as set forth in the Exicure, Inc. 2017 Equity Incentive Plan attached hereto as Exhibit A (the “Plan”).
I.NOTICE OF RESTRICTED SHARE UNIT AWARD
Participant has been granted a Restricted Share Unit Award, subject to the terms and conditions of the Plan and this Agreement, as follows:
						
	Participant:	As provided on Carta
	Address:	As provided on Carta
	Grant Number:	As provided on Carta
	Grant Date:	As provided on Carta
	Vesting Commencement Date:	As provided on Carta
	Number of Shares Subject to Restricted Share Unit Award:	As provided on Carta

Vesting Schedule; Accelerated Vesting: As provided on Carta
Acceleration for non-executive officer employees: Notwithstanding the preceding paragraph, if Participant’s continuous status as a service provider is terminated by the Company without Cause (as defined below) or by Participant for Good Reason (as defined below), in either case in connection with, or within 12 months after the effective date of, a Change in Control, then all unvested Shares shall vest immediately prior to such termination.
“Cause” means, subject to the last sentence of this paragraph: (A) Participant’s willful failure to perform his or her assigned duties or responsibilities as a service provider (other than a failure resulting from Participant’s disability); (B) Participant’s willful failure to comply with any valid and legal directive of the Board; (C) Participant’s act, or failure to act, that was performed in bad faith and causes material harm to the Company or any of its affiliates; (D) Participant’s violation of any material policy or rule, oral or written, of the Company, but only if such violation causes material harm to the Company or any of its affiliates; (E) Participant’s gross negligence or willful engagement in dishonesty or illegal conduct which is, in each case, materially injurious to the Company or any of its affiliates; (F) Participant’s embezzlement or fraud, whether or not related to Participant’s employment with the Company, or Participant’s misappropriation of any (x) material property of the Company or (y) business opportunity of the Company; (G) Participant’s conviction of, or entering a plea of guilty or nolo contendere to, (x) 

any crime that constitutes a felony (or state law equivalent) or (y) any crime that constitutes a misdemeanor involving moral turpitude but only if such misdemeanor is work related, materially impairs Participant’s ability to perform services for the Company or results in material harm to the Company or any of its affiliates; or (H) Participant’s material breach of any material obligation under any confidentiality agreement or invention assignment agreement between the Company (or any affiliate of the Company) and Participant. For purposes of this definition, no act or failure to act on Participant’s part shall be considered “willful” unless it is done, or omitted to be done, by Participant in bad faith or without reasonable belief that Participant’s action or omission was in the Company’s bests interests. Any act, or failure to act, based upon the advice of the Company’s counsel or authority given pursuant to a resolution duly adopted by the Board shall be conclusively presumed to be done, or omitted to be done, by Participant in good faith and in the Company’s best interests. Except for a failure, violation, breach or refusal which, by its nature cannot reasonably be expected to be cured, Participant shall have ten business days from the delivery of written notice by the Company within which to cure any acts, or failures to act, constituting Cause; provided, however, that, if the Company reasonably expects irreparable injury from such a delay, the Company may give Participant notice of such shorter period within which to cure as is reasonable under the circumstances.
“Good Reason” means the occurrence of any of the following without Participant’s written consent: (A) a material reduction in Participant’s annual/base salary (other than a reduction in connection with substantially proportionate reductions to the annual/base salary of substantially all other similarly situated employees of the Company); (B) a material reduction in Participant’s target bonus opportunity; (C) a material reduction in Participant’s overall compensation and benefits (other than a reduction in connection with substantially proportionate reductions to the compensation or benefits of substantially all other similarly situated employees of the Company); (D) a requirement by the Company that Participant relocate or commute to a location more than 50 miles away from Participant’s work location as of the Agreement Date; (E) a material adverse change in Participant’s title, status, authority or reporting structure or a material diminution in Participant’s duties and responsibilities inconsistent with Participant’s position with the Company and Participant’s duties and responsibilities immediately prior to such material diminution (but excluding (x) any temporary diminution while Participant is physically or mentally incapacitated or as required by applicable law and (y) transfers of duties and responsibilities to one or more employees as a result of the Company’s natural growth, and excluding further any material diminution in Participant’s duties and responsibilities as a result of any corporate transaction (including any Change in Control), so long as Participant has substantially similar duties and responsibilities in a division, subsidiary or other entity that is substantially similar in size to the division, subsidiary or other entity over which Participant had authority and responsibility prior to the relevant corporate transaction); or (F) the Company’s material breach of any material provision of any agreement between the Company and Participant.
In the event of a Change in Control in which this Restricted Share Unit Award will not be Assumed, continued or Replaced, then all the unvested Shares shall vest immediately prior to, and contingent on the consummation of, the Change in Control.
2

II.AGREEMENT
1.Grant of Restricted Share Unit Award. In consideration of the services to be rendered by Participant to the Company or any Affiliate and subject to the terms and conditions of the Plan and this Agreement, the Administrator hereby grants to Participant a Restricted Share Unit Award (this “Award”) in respect of the number of Shares set forth in the Notice of Restricted Share Unit Award in Part I of this Agreement.
2.Rights as a Stockholder. Each Restricted Share Unit shall represent Participant’s right to receive one Share if and to the extent that such Restricted Share Unit becomes vested pursuant to the terms and conditions of this Agreement and the Plan. Participant shall not be entitled to any privileges of ownership with respect to the Shares subject to this Award unless and until, and only to the extent, such Shares are issued pursuant to Section 4 hereof and Participant becomes a stockholder of record with respect to such Shares. Except as otherwise provided in the Plan or Section 7(n) below, Participant shall receive no benefit or adjustment to this Award (including any dividend equivalents) with respect to any cash dividend paid to record owners of Shares; provided, that this sentence shall not apply with respect to any Shares that are issued to Participant in connection with this Award after Participant becomes a stockholder of record with respect to such Shares.
3.Restriction Period. The Restricted Share Units shall vest in accordance with the Vesting Schedule set forth in the Notice of Restricted Share Unit Award in Part I of this Agreement. The period of time prior to vesting shall be referred to herein as the “Restriction Period.”  Except as otherwise provided in the Notice of Restricted Share Unit Award in Part I of this Agreement, if Participant’s continuous status as a service provider to the Company terminates  for any reason prior to the end of the Restriction Period, then the portion of the Restricted Share Units that were not vested immediately prior to such termination shall be immediately forfeited by Participant for no consideration.
4.Issuance. The issuance of Shares in respect of the Restricted Share Units is intended to comply with Treasury Regulations Section 1.409A-1(b)(4) and shall be construed and administered in such a manner.  Subject to the satisfaction of the Required Tax Payments, if any, in the event one or more Restricted Share Units vests, the Company shall issue to Participant one Share for each Restricted Share Unit that vests in accordance with the Vesting Schedule set forth in the Notice of Restricted Share Unit Award in Part I of this Agreement (subject to any adjustment under Section 7(n) below, the Plan and subject to any different provisions in the Notice of Restricted Share Unit Award in Part I of this Agreement), with such Share(s) to be issued to Participant as soon as practicable following the applicable vesting date (but in no event later than the date that is the 15th day of the third calendar month of the applicable year following the year in which such vesting date occurs).
5.Non-Transferability of Award. This Award may not be sold, pledged, assigned, hypothecated or otherwise transferred in any manner, including by entering into any short position, any “put equivalent position” or any “call equivalent position” (as defined in Rule 16a-1(h) and Rule 16a-1(b), respectively, of the Exchange Act), whether by operation of law or otherwise, other than by will or by the laws of descent and distribution, and may be exercised, 
3

during the lifetime of Participant, only by Participant. The terms of the Plan and this Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of Participant.
6.Tax Obligations.
(a)Tax Withholding. The Company shall have the right to require, prior to the issuance or delivery of any Shares, payment by Participant of any federal, state, local, foreign and other taxes (including Participant’s FICA obligation) which may be required to be withheld or paid in connection with this Award (the “Required Tax Payments”). The Company may, in its sole discretion, satisfy any Required Tax Payments by any of the following means or by a combination of such means: (i) withholding a number of whole Shares which would otherwise be delivered to Participant, having an aggregate Fair Market Value determined as of the Tax Date or withhold an amount of cash which would otherwise be payable to Participant, in the amount necessary to satisfy any such obligation or (ii) permitting Participant satisfy any such obligation by any of the following means: (A) a cash payment to the Company, (B) delivery (either actual delivery or by attestation procedures established by the Company) to the Company of previously owned whole Shares having an aggregate Fair Market Value, determined as of the Tax Date, equal to the amount necessary to satisfy any such obligation, (C) authorizing the Company to withhold whole Shares which would otherwise be delivered having an aggregate Fair Market Value, determined as of the Tax Date, or withhold an amount of cash which would otherwise be payable to a holder, equal to the amount necessary to satisfy any such obligation, or (D) any combination of (A), (B) and (C). Shares to be delivered or withheld may not have an aggregate Fair Market Value in excess of the amount determined by applying the minimum statutory withholding rate or such other amount determined by the Committee not to have an adverse accounting impact on the Company. Any fraction of a Share which would be required to satisfy such an obligation shall be disregarded and the remaining amount due shall be paid in cash by Participant.
(b)Section 409A of the Code. This Agreement shall be interpreted in accordance with Section 409A of the Code (“Section 409A”), to the extent applicable, including without limitation any Treasury Regulations or other Department of Treasury guidance that may be issued or amended after the date hereof, and shall not be amended or modified in any manner that would cause this Agreement to violate the requirements of Section 409A. If, following the date hereof, the Committee determines that this Award may be subject to Section 409A, including such Department of Treasury guidance as may be issued after the date hereof, the Committee may, in its discretion, adopt such amendments to this Agreement or adopt such other policies and procedures (including amendments, policies, and procedures with retroactive effect), or take any other actions, as the Committee determines are necessary or appropriate to (i) exempt this Award from Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to this Award, or (ii) comply with the requirements of Section 409A. Notwithstanding anything to the contrary in the Plan or in this Agreement, Participant agrees that Participant (or Participant’s estate or permitted beneficiary(ies)) shall be solely responsible for the satisfaction of all taxes, interest, and penalties that may be imposed on Participant or for Participant’s account in connection with this Award (including, without limitation, any taxes, interest, and penalties under Section 409A), and neither the Company nor its Affiliates shall have 
4

any obligation to reimburse, indemnify, or otherwise hold Participant (or Participant’s estate or permitted beneficiary(ies)) harmless from any or all of such taxes, interest, or penalties.
7.General Provisions.
(a)Power and Authority. Participant hereby represents to the Company that (i) Participant has full power and authority and legal capacity to enter into, execute and deliver this Agreement and to perform fully Participant’s obligations hereunder, (ii) the execution, delivery and performance of this Agreement by Participant does not conflict with, constitute a breach of or violate any arrangement, understanding or agreement to which Participant is a party or by which Participant is bound, and (iii) this Agreement has been duly and validly executed and delivered by Participant and constitutes the legal, valid and binding obligation of Participant, enforceable against Participant in accordance with its terms.
(b)Survival. The representations, warranties, covenants and agreements made in or pursuant to this Agreement shall survive the execution and delivery hereof and shall not be affected by any investigation made by or on behalf of any party hereto.
(c)Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois without regard to conflict-of-law principles.
(d)Entire Agreement. This Agreement, together with the attached Exhibits, sets forth the entire agreement and understanding between the parties hereto relating to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, discussions, representations and warranties, both written and oral, between the parties hereto, including any representations made during any interviews or relocation negotiations, with respect to such subject matter. In the event of a conflict between the terms and conditions of the Plan and this Agreement, the terms and conditions of the Plan shall prevail.
(e)Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be deemed given or delivered (i) when delivered personally, (ii) one business day after being deposited with an overnight courier service (costs prepaid), (iii) when sent by facsimile or e-mail if sent during normal business hours and on the next business day if sent after normal business hours, in each case with confirmation of transmission by the transmitting equipment, or (iv) when received or rejected by the addressee, if sent by certified mail, return receipt requested, postage prepaid, in each case to the addresses, facsimile numbers or e-mail addresses and marked to the attention of the persons designated (by name or title) on the signature page hereto, as applicable, or to such other address, facsimile number, e-mail address or person as such party may designate by a notice delivered to the other party hereto.
(f)Successors and Assigns; Transfers. The Company may assign this Agreement, and its rights and obligations hereunder, in whole or in part, to any successor or assign (whether direct or indirect, by purchase, merger, consolidation, sale of assets or stock or otherwise). Except as set forth herein, (x) neither this Agreement nor any rights, duties and obligations hereunder shall be assigned, transferred, delegated or sublicensed by Participant 
5

without the Company’s prior written consent and (y) any attempt by Participant to assign, transfer, delegate or sublicense this Agreement or any rights, duties or obligations hereunder, without the Company’s prior written consent, shall be void. Subject to any restrictions on transfer set forth herein, this Agreement shall be binding upon, and enforceable against, (i) the Company and its successors and assigns and (ii) Participant and his or her heirs, executors, successors, assigns, administrators and other legal representatives. Except as set forth herein, any transfer in violation of any restriction upon transfer contained in any provision hereof shall be void, unless such restriction is waived in accordance with the terms hereof.
(g)Modification and Waiver. This Agreement may not be amended, modified or supplemented except by a written instrument signed by an authorized representative of each party hereto. Any term or provision hereof may be waived, or the time for its performance may be extended, by the party or parties entitled to the benefit thereof. Any such waiver or extension shall be validly and sufficiently authorized for the purposes hereof if, as to any party, it is authorized in writing by an authorized representative of such party. The failure or delay of any party to enforce at any time any provision hereof shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of any party thereafter to enforce each and every such provision. No waiver of any breach hereof shall be held to constitute a waiver of any other or subsequent breach.
(h)Further Assurances. Participant shall execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may reasonably be necessary or desirable in the view of the Company to carry out the purposes or intent hereof, including the applicable Exhibits attached hereto.
(i)Severability. Should any provision contained herein be held as invalid, illegal or unenforceable, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties with any such modification to become a part hereof and treated as though originally set forth herein.
(j)Interpretation. For purposes of this Agreement, (i) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation,” (i) the word “or” is not exclusive, (iii) the words “herein,” “hereof,” “hereby,” “hereto,” “hereunder” and words of similar import refer to this Agreement as a whole, and (iv) with respect to the determination of any period of time, “from” means “from and including” and “to” means “to but excluding.” Unless the context otherwise requires, references herein: (A) to a Section or an Exhibit mean a Section or an Exhibit of, or attached to, this Agreement; (B) to agreements, instruments and other documents shall be deemed to include all subsequent amendments, supplements and other modifications thereto; (C) to statutes or regulations are to be construed as including all statutory and regulatory provisions consolidating, amending or replacing the statute or regulation referred to; (D) to any Person includes such Person’s successors and assigns, but, if applicable, only if such successors and assigns are not prohibited by this Agreement; and (E) to any gender includes each other gender. The Exhibits attached hereto shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein. The titles, captions and headings herein are for convenience 
6

of reference only and shall not affect the meaning or interpretation hereof. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted.
(k)Counterparts. This Agreement may be executed in counterparts, each of which shall be considered an original, but all of which, when taken together, shall be considered one and the same agreement, and shall become binding when one or more counterparts have been signed by each party hereto and delivered to the other party hereto. Delivery of an executed counterpart of a signature page to this Agreement shall be as effective as delivery of a manually executed counterpart of this Agreement. The exchange of copies of this Agreement and of signature pages hereto by facsimile transmission or e-mail shall constitute effective execution and delivery of this Agreement and may be used in lieu of the original Agreement for all purposes. Signatures transmitted by facsimile or e-mail shall be deemed to be original signatures for all purposes.
(l)Service Relationship At Will. Participant acknowledges and agrees that the vesting of this Award pursuant hereto is earned only by his or her continuing service as a service provider at will (and not through the act of being hired, being granted this Award or acquiring Shares hereunder). Participant further acknowledges and agrees that this Agreement, the transactions contemplated hereby and the vesting schedule set forth herein do not constitute an express or implied promise of continued engagement as a service provider for the vesting period, or for any period at all, and shall not interfere with the right of either the Company or Participant to terminate Participant’s relationship as a service provider at any time, with or without cause or notice.
(m)Third Party Beneficiary Rights. No provisions hereof are intended, nor shall be interpreted, to provide or create any third party beneficiary rights or any other rights of any kind in any client, customer, affiliate, stockholder, partner or employee of any party hereto or any other Person, unless specifically provided otherwise herein.
(n)Adjustments. In the event of any dividend or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization, reincorporation, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, reclassification, repurchase or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares, the Administrator will appropriately adjust the number and class of Shares subject to this Award, with such adjustment to be made in accordance with Section 409A.
(o)No Impact on Other Benefits. The value of this Award is not part of Participant’s normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.
(p)Acceptance. Participant acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof and hereby accepts this Award subject to all of the terms and provisions of the Plan and this Agreement (including all Exhibits attached hereto). Participant has reviewed, and fully understands all provisions of, the 
7

Plan and this Agreement in their entirety (including all Exhibits attached hereto) and has had an opportunity to obtain the advice of his or her own legal counsel, tax advisors and other advisors prior to executing this Agreement. Any questions or disputes regarding the interpretation of the Plan or this Agreement (including all Exhibits attached hereto), or arising hereunder or thereunder, shall be submitted by the Company or Participant to the Administrator, and Participant hereby agrees to accept as final, binding and conclusive all decisions, determinations and interpretations of the Administrator upon any such questions or disputes.
(q)Equitable Relief. In the event of a breach or threatened breach by Participant of any provision hereof, Participant hereby consents and agrees that the Company may seek, in addition to other available remedies, injunctive or other equitable relief from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. Participant understands that any breach or threatened breach of this Agreement will cause irreparable injury and that money damages will not provide an adequate remedy therefor, and Participant hereby consents to the issuance of an injunction or other equitable relief. The aforementioned equitable relief shall be in addition to, and not in lieu of, legal remedies, monetary damages or other available forms of relief.
(signature page follows)

8

IN WITNESS WHEREOF, the undersigned have executed this Restricted Share Unit Award Agreement as of ___________________________, 20______.

COMPANY

Exicure, Inc.

By:
Name: David A. Giljohann, Ph.D
Title: Chief Executive Officer

Notice Address:    2430 N. Halsted St.
    Chicago, IL 60614

Facsimile: (847) 673-1700
E-mail: slongoria@exicuretx.com
Attention: Sarah Longoria

PARTICIPANT

«Participant»

Notice Address:

Facsimile:
E-mail:
Attention:

Exhibits:

A – Exicure, Inc. 2017 Equity Incentive Plan

9

Exhibit A

Exicure, Inc. 2017 Equity Incentive Plan 
10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}]]