Document:

STOCK
OPTION GRANT AGREEMENT

PROVENTION
BIO, INC.

 

This
Stock Option Grant Agreement (the “Grant Agreement”) is made and entered into effective on the Date of Grant
set forth in Exhibit A (the “Date of Grant”) by and between Provention Bio, Inc., a Delaware corporation
(the “Company”), and the individual named in Exhibit A hereto (the “Optionee”). Capitalized
terms used herein but not otherwise defined herein shall have the meanings set forth in the Provention Bio, Inc. 2017 Equity Incentive
Plan (the “Plan”).

 

WHEREAS,
the Company desires to provide the Optionee an incentive to participate in the success and growth of the Company through the opportunity
to earn a proprietary interest in the Company; and

 

WHEREAS,
to give effect to the foregoing intention, the Company desires to grant the Optionee an option pursuant to the Plan to acquire
the Company’s common stock, par value $.0001 per share (the “Common Stock”);

 

NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and for good and valuable consideration, the parties
hereto agree as follows:

 

1.       Grant.
The Company hereby grants the Optionee a Stock Option (the “Option”) to purchase up to the number of shares
of Common Stock (the “Shares”) set forth in Exhibit A hereto at the exercise price per Share (the “Exercise
Price”) set forth in Exhibit A, and on the vesting schedule set forth in Exhibit A, subject to the terms
and conditions set forth herein and the provisions of the Plan, the terms of which are incorporated herein by reference. No portion
of this Option may be exercised until such portion shall have vested and become exercisable. Capitalized terms used but not otherwise
defined in this Grant Agreement shall have the meanings as set forth in the Plan.

 

2.       Incentive
Stock Option. To the extent designated as
an Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive Stock Option under Section
422 of the Code. If the Optionee becomes eligible in any given year to exercise ISOs for
Shares having a Fair Market Value in excess of $100,000, those options representing the excess shall be treated as Non-Qualified
Stock Options. In the previous sentence, “ISOs” include ISOs granted under any plan of the Company or any parent or
any Subsidiary of the Company. For the purpose of deciding which options apply to Shares that “exceed” the $100,000
limit, ISOs shall be taken into account in the same order as granted. The Fair Market Value of the Shares shall be determined
as of the time the Option with respect to such Shares is granted. The Optionee hereby acknowledges that there is no assurance
that the Option will, in fact, be treated as an Incentive Stock Option under Section 422 of Internal Revenue Code (the “Code”).

 

    	 

     

    

 

3.       Exercise
Period Following Termination of Continuous Service. This Option shall terminate and be canceled to the extent not exercised
within three (3) months after the Optionee’s Continuous Service terminates, except that if such termination is due to the
death or permanent and total disability within the meaning of Section 22(e)(3) of the Code
of the Optionee, this Option shall terminate and be canceled one (1) year from the date of termination of Continuous Service.
Notwithstanding the foregoing, in the event that the Optionee’s Continuous Service is terminated for Cause, then the Option
shall immediately terminate on the date of such termination of Continuous Service and shall not be exercisable for any period
following such date. In no event, however, shall this Option be exercised later than the Expiration Date set forth in Exhibit
A and in no event shall this Option be exercised for more Shares than the Shares which otherwise have become exercisable as
of the date of termination.

 

3.       Method
of Exercise. This Option is exercisable by delivery to the Company of an exercise notice (the “Exercise Notice”)
in a form satisfactory to the Committee or by such other form or means as the Committee may permit or require. Any Exercise Notice
shall state or provide the number of Shares with respect to which the Option is being exercised (the “Exercised Shares”),
and include such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan.
The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price for the Exercised Shares in (i) cash; (ii)
check; or (iii) such other manner as is acceptable to the Committee, provided that such form of consideration is permitted by
the Plan and by applicable law. Upon exercise of the Option by the Optionee and prior to the delivery of such Exercised Shares,
the Company shall have the right to require the Optionee to satisfy applicable Federal and state tax income tax withholding requirements
and the Optionee’s share of applicable employment withholding taxes in a method satisfactory to the Company. Notwithstanding
the foregoing, no Exercised Shares shall be issued unless such exercise and issuance complies with the requirements relating to
the administration of stock option plans and other applicable equity plans under U.S. state corporate laws, U.S. federal and state
securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted, and the applicable
laws of any foreign country or jurisdiction where stock grants or other applicable equity grants are made under the Plan; assuming
such compliance, for income tax purposes the Exercised Shares shall be considered transferred to the Optionee on the date the
Option is exercised with respect to such Shares.

 

4.       Covenants
Agreement. This Option shall be subject to forfeiture at the election of the Company in the event that the Optionee breaches
any agreement between the Optionee and the Company with respect to noncompetition, nonsolicitation, assignment of inventions and
contributions and/or nondisclosure obligations of the Optionee.

 

5.       Taxes.
By executing this Grant Agreement, Optionee acknowledges and agrees that Optionee is solely responsible for the satisfaction of
any applicable taxes that may be imposed on Optionee that arise as a result of the grant, vesting or exercise of the Option, including
without limitation any taxes arising under Section 409A of the Code (regarding deferred compensation) or Section 4999 of the Code
(regarding golden parachute excise taxes), and that neither the Company nor the Committee shall have any obligation whatsoever
to pay such taxes or otherwise indemnify or hold Optionee harmless from any or all of such taxes.

 

    	 

     

    

 

6.       Non-Transferability
of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution
and may be exercised during the lifetime of the Optionee only by the Optionee. The terms of the Plan and this Grant Agreement
shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

 

7.       Securities
Matters. All Shares and Exercised Shares shall be subject to the restrictions on sale, encumbrance and other disposition provided
by Federal or state law. The Company shall not be obligated to sell or issue any Shares or Exercised Shares pursuant to this Grant
Agreement unless, on the date of sale and issuance thereof, such Shares are either registered under the Securities Act of 1933,
as amended (the “Securities Act”), and all applicable state securities laws, or are exempt from registration
thereunder. Regardless of whether the offering and sale of Shares under the Plan have been registered under the Securities Act,
or have been registered or qualified under the securities laws of any state, the Company at its discretion may impose restrictions
upon the sale, pledge or other transfer of such Shares (including the placement of appropriate legends on stock certificates or
the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions are necessary in order to
achieve compliance with the Securities Act or the securities laws of any state or any other law.

 

8.       Investment
Purpose. The Optionee represents and warrants that unless the Shares are registered under the Securities Act, any and all
Shares acquired by the Optionee under this Grant Agreement will be acquired for investment for the Optionee’s own account
and not with a view to, for resale in connection with, or with an intent of participating directly or indirectly in, any distribution
of such Shares within the meaning of the Securities Act. The Optionee agrees not to sell, transfer or otherwise dispose of such
Shares unless they are either (1) registered under the Securties Act and all applicable state securities laws, or (2) exempt from
such registration in the opinion of Company counsel.

 

9.       Lock-Up
Agreement. The Optionee hereby agrees that in the event that the Optionee exercises this Option during a period in which any
directors or officers of the Company have agreed with one or more underwriters not to sell securities of the Company, then, as
a condition to such exercise, the Optionee shall enter into an agreement, in form and substance satisfactory to the Company, pursuant
to which the Optionee shall agree to restrictions on transferability of the Shares comparable to the restrictions agreed upon
by such directors or officers of the Company.

 

10.       Other
Plans. No amounts of income received by the Optionee pursuant to this Grant Agreement shall be considered compensation for
purposes of any pension or retirement plan, insurance plan or any other employee benefit plan of the Company or its subsidiaries,
unless otherwise expressly provided in such plan.

 

    	 

     

    

 

11.       No
Guarantee of Continued Service. The Optionee acknowledges and agrees that the right to exercise the Option pursuant to the
exercise schedule hereof is earned only through Continuous Service and such other requirements, if any, as are set forth in Exhibit
A (and not through the act of being hired, being granted an option or purchasing shares hereunder). The Optionee further acknowledges
and agrees that (i) this Grant Agreement, the transactions contemplated hereunder and the exercise schedule set forth herein do
not constitute an express or implied promise of continued employment or service for the exercise period or for any other period,
and shall not interfere with the Optionee’s right or the right of the Company or its Subsidiaries to terminate the employment
or service relationship at any time, with or without cause, subject to the terms of any written employment agreement that the
Optionee may have entered into with the Company or any of its Subsidiaries; and (ii) the Company would not have granted this Option
to the Optionee but for these acknowledgements and agreements.

 

12.       Entire
Agreement; Governing Law. The Plan is incorporated herein by reference. The Plan and this Grant Agreement constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and the Optionee with respect to the subject matter hereof, and may not be modified adversely to the
Optionee’s interest except by means of a writing signed by the Company and the Optionee. In the event of any conflict between
this Grant Agreement and the Plan, the Plan shall be controlling, except as otherwise specifically provided in the Plan. This
Grant Agreement shall be construed under the laws of the State of Delaware, without regard to conflict of laws principles.

 

13.       Opportunity
for Review. Optionee and the Company agree that this Option is granted under and governed by the terms and conditions of the
Plan and this Grant Agreement. The Optionee has reviewed the Plan and this Grant Agreement in their entirety, has had an opportunity
to obtain the advice of counsel prior to executing this Grant Agreement and fully understands all provisions of the Plan and this
Grant Agreement. The Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the
Committee upon any questions relating to the Plan and this Grant Agreement. The Optionee further agrees to notify the Company
upon any change in the residence address indicated herein.

 

14.Section
409A.This Option is intended to be excepted from coverage under Section 409A and shall be administered, interpreted and
construed accordingly. The Company may, in its sole discretion and without the Optionee’s consent, modify or amend the terms
of this Grant Agreement, impose conditions on the timing and effectiveness of the exercise of the Option by Optionee, or take
any other action it deems necessary or advisable, to cause the Option to be excepted from Section 409A (or to comply therewith
to the extent the Company determines it is not excepted).

 

15.       Recoupment.
In the event the Company restates its financial statements due to material noncompliance with any financial reporting requirements
under applicable securities laws, any shares issued pursuant to this Agreement for or in respect of the year that is restated,
or the prior three years, may be recovered to the extent the shares issued exceed the number that would have been issued based
on the restatement. In addition and without limitation of the foregoing, any amounts paid hereunder shall be subject to recoupment
in accordance with The Dodd–Frank Wall Street Reform and Consumer Protection Act and any implementing regulations thereunder,
any clawback policy adopted by the Company or as is otherwise required by applicable law or stock exchange listing conditions.

 

[Signature
Page Follows]

 

    	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Grant Agreement as of the date set forth in Exhibit A.

 

	 	PROVENTION BIO, INC.
	 	 	 
	 	By:	

                                                          

	 	Name:	Ashleigh
Palmer
	 	Title:	Chief
Executive Officer
	 	 	 
	 	OPTIONEE
	 	 	

                                                          

	 	Name:	 

 

    	 

     

    

 

EXHIBIT
A

 

STOCK
OPTION GRANT AGREEMENT

PROVENTION
BIO, INC.

 

	 	(a).	Optionee’s
    Name: ______________________________
	 	 	 
	 	(b).	Date
    of Grant:_________________________
	 	 	 
	 	(c).	Number
    of Shares Subject to the Option: ______________
	 	 	 
	 	(d).	Exercise
    Price: $______ per Share
	 	 	 
	 	(e).	Expiration
    Date: [Insert date one day before 10 year anniversary of grant date.]
	 	 	 
	 	(f).	Vesting
    Schedule:Provention
Bio, Inc.

Lock-Up
AGREEMENT

 

April
25, 2017

 

Provention
Bio, Inc.

110
Old Driftway Lane

Lebanon,
NJ 08833

 

Re:
  Provention Bio, Inc. - Lock-Up Agreement

 

Ladies
and Gentlemen:

 

In
order to induce MDB Capital Group, LLC (“MDB”) to act as the placement agent to locate investors (the “Investors”)
to participate in a private placement (the “Private Placement”) of Provention Bio, Inc.’s, a Delaware
Corporation, (the “Company”) Series A Preferred Stock (the “Preferred Stock”), par value
$0.0001 per share, MDB agrees that, commencing on the earlier of (a) the date of the final prospectus relating to the Company’s
initial public offering of its Common Stock (the “Common Stock”), par value $0.0001 per share (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 and ending on the date that is 12 months thereafter (the “Lock-Up Period”), the undersigned
will not, (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 (w) Preferred Stock, (x) any securities convertible into or exercisable or exchangeable (directly or indirectly)
for the Preferred Stock, or (y) Common Stock issued and outstanding as of the date of the final prospectus relating to the
Company’s IPO, other than shares of Common Stock purchased in the IPO or the public securities markets, and (z) Common Stock
that may be acquired through any warrant issued in connection with the Private Placement (together the “Undersigned’s
Shares”) or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the
economic consequences of ownership of the Undersigned Shares, whether any such transaction described in clause (i) or (ii) above
is to be settled by delivery of Preferred Stock, Common Stock or other securities, in cash, or otherwise. For clarity, the restrictions
of this Lock-Up Agreement do not apply to or in respect of any securities acquired by MDB in the IPO or after the IPO, including
but not limited to securities issued in the IPO and underwriting and market making activities, acting as a placement agent whether
now owned or hereafter acquired, whether held in a trading or investment account and handling customers’ orders on a solicited
and unsolicited basis.

 

The
foregoing restriction is expressly agreed to preclude the undersigned from engaging in any hedging or other transaction which
is designed to or which reasonably could be expected to lead to or result in a sale or disposition of the Undersigned’s
Shares even if the Undersigned’s Shares would be disposed of by someone other than the undersigned. Such prohibited hedging
or other transactions would include, without limitation, any short sale or any purchase, sale or grant of any right (including,
without limitation, any put or call option) with respect to any of the Undersigned’s Shares or with respect to any security
that includes, relates to, or derives any significant part of its value from the Undersigned’s Shares. For clarity, MDB
may engage in hedging and other transactions, such as short sales or purchase, sale or grant of rights with respect to securities
other than the Undersigned’s Shares, in its activities as underwriter, private placement agent, market maker, and handling
customers’ orders on a solicited and unsolicited basis.

 

    	 	 	 

     

    

 

Notwithstanding
the foregoing, the undersigned may transfer the Undersigned’s Shares, provided that in case of items (i) through (v) below,
any such transfer shall not involve a disposition for value, and provided further that any transferee shall agree to be bound
by the terms of this Lock-up Agreement:

 

(i)       bona
fide gift or gifts or by will or intestate succession upon the death of the undersigned; or

 

(ii)       to
any trust for the direct or indirect benefit of the undersigned or the immediate family of the undersigned; or

 

(iii)       if
the undersigned is a trust, any distribution to a beneficiary of the trust or to the estate of a beneficiary of such trust and
such transfer is not for value; or

 

(iv)       as
a distribution or transfer to stockholders, members, limited partners, or other security holders of the undersigned or to regular
employees of the undersigned whether or not for value; or

 

(v)       to
the undersigned’s affiliates or to any investment fund or other entity controlled or managed by or under common control
with the undersigned; or

 

(vi)       any
transfers of the Undersigned’s Shares solely to satisfy (a) the exercise price of any equity awards or options/warrants
outstanding of the Company pursuant to any “net issuance” thereof, through the surrender to the Company of shares
of Common Stock or other securities, provided that any securities received by such person upon such net issuance shall be subject
to the restrictions provided for in this Lock-Up Agreement if the securities are derived from any of the Undersigned’s Shares,
or (b) the partial or full settlement of any withholding tax obligation of the undersigned, through the surrender or forfeiture
to the Company of shares of Common Stock, accruing upon the exercise or vesting of any equity award or options/warrants.

 

For
purposes of this Lock-Up Agreement, “immediate family” shall mean any relationship by blood, marriage or adoption,
not more remote than first cousin.

 

Notwithstanding
anything contrary in this Lock-Up Agreement, (i) the undersigned can enter into a sales plan pursuant to Rule 10b5-1 under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), provided that no sales, dispositions or other
transfers of the Undersigned’s Shares may be made under such plan during the Lock-Up Period and no public announcement or
filing under the Exchange Act regarding the establishment of such plan shall be required of or voluntarily made by or on behalf
of the undersigned or the Company; (ii) nothing in this Lock-Up Agreement shall prevent the undersigned from converting outstanding
convertible securities that are the Undersigned’s Shares into securities of the Company, provided that such securities remain
subject to the terms hereof; (iii) nothing in this Lock-Up Agreement shall prevent the transfer of securities of the Company pursuant
to a bona fide third party tender offer, merger, consolidation or other similar transaction made to all holders of the Preferred
Stock or Common Stock, as the case may be, provided that in the event that the tender offer, merger, consolidation or other such
transaction is not completed, the Undersigned’s Shares shall remain subject to the restrictions contained in this Lock-Up
Agreement, and (iv) nothing in this Lock-Up Agreement shall prevent the transfer of the Undersigned’s Shares with the written
consent of [MDB] and the Company and the agreement of the transferee that it will be subject to the restrictions
contained herein.

 

    	 	 	 

     

    

 

In
order to enforce this covenant, the Company shall impose stop-transfer instructions preventing the Company’s transfer agent
(the “Transfer Agent”) from effecting any actions in violation of this Lock-Up Agreement. The undersigned agrees
and consents to the entry of stop transfer instructions with the Company’s Transfer Agent and registrar against the transfer
of the Undersigned’s Shares except in compliance with the foregoing restrictions. The Company is a third party beneficiary
of this provision.

 

The
undersigned acknowledges that the execution, delivery and performance of this Lock-Up Agreement is a material inducement to MDB
and the Company to complete the transactions contemplated by the Private Placement and that MDB and the Company shall each be
entitled to specific performance of the undersigned’s obligations hereunder. The undersigned hereby represents that the
undersigned has the power and authority to execute, deliver and perform this Lock-Up Agreement, that the undersigned has received
adequate consideration therefor and that the undersigned will indirectly benefit from the closing of the transactions contemplated
by the Subscription Agreement entered into in connection with the Private Placement.

 

The
undersigned understands and agrees that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigned’s
heirs, legal representatives, successors, and assigns.

 

At
the discretion of MDB and the Company acting jointly, some or all of the Undersigned’s Shares may be released from the restrictions
of this Lock-Up Agreement, and the Company shall take the required action to permit the securities so released to be free of the
restrictions of this Lock-Up Agreement.

 

This
Lock-Up Agreement may be executed in two counterparts, each of which shall be deemed an original but both of which shall be considered
one and the same instrument.

 

This
Lock-Up Agreement will be governed by and construed in accordance with the laws of the State of Delaware, without giving effect
to any choice of law or conflicting provision or rule (whether of the State of Delaware or any other jurisdiction) that would
cause the laws of any jurisdiction other than the State of Delaware to be applied. In furtherance of the foregoing, the internal
laws of the State of Delaware will control the interpretation and construction of this Lock-Up Agreement, even if under such jurisdiction’s
choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.

 

[Remainder
of page intentionally left blank. Signature Page to Follow.]

 

    	 	 	 

     

    

 

Very
truly yours,

 

	 	MDB CAPITAL GROUP, LLC
	 	Exact Name of Shareholder
	 	 	 
	 	By:	
	 	 	Authorized
    Signature
	 	Name:	Gary
    A. Schuman
	 	Title:	Chief
    Financial Officer

 

Agreed
to and Acknowledged:

 

ProVENTION
BIO, INC.

 

	By:
    	 	 
	Name:
    	Ashleigh
    Palmer	 
	Title:
    	President
    and Chief Executive Officer	 

 

[Signature
Page to Lock-Up Agreement with MDB Capital Group, LLC – Provention Bio, Inc.]

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