Document:

cbt-ex101_70.htm

Exhibit 10.1

 

 

CABOT

 

 

February 10, 2012

 

 

Mr. Jeff Zhu

 

 

 

Dear Jeff:

 

It is my pleasure to offer you the position of President, Asia Pacific Region for Cabot Corporation reporting to me. This position is based at Cabot's Asia Pacific regional headquarters in Shanghai, China and your actual employer will be Cabot China Limited, our Asia Pacific regional headquarter company.  Your start date will be the day you report to work and will occur on or before June 1,

2012 ("Start Date").

 

 

We will be recommending to the Board of Directors that you be elected a Vice President of Cabot Corporation at the May, 2012 meeting of the Board of Directors.   As an officer of the company, there are certain requirements and obligations that you must meet. These will be reviewed with you by Brian Berube, VP & General Counsel, upon acceptance of this offer.

This offer is contingent upon your agreement to the terms and conditions set forth in this letter. SALARY

Your base salary will be the RMB equivalent of is $330,000 per annum using the exchange rate on in effect on your Start Date.   You will be paid monthly on or around the 1oth of each month.    You will be eligible for a salary review in January 2013.

 

 

 

SIGNING INCENTIVE

Effective your date of hire and subject to the approval of the Compensation Committee of Cabot's Board of Directors, you will receive a grant of time-based stock units ("TSUs") with a value at grant of$200,000. The number of TSUs will be determined using the closing price of Cabot common stock on your Start Date.  The TSUs will vest according to the following schedule: 1/3 on November 13, 2012; 113 on November 12, 2013; final1/3 on November 11,2014, subject to your continued employment by Cabot.

 

VACATION LEAVE AND PUBLIC HOLIDAYS

You will be eligible for 20 working days paid leave every year.

 

 

Cabot Corporation I  Two Seaport Lane  I   Suite 1300 I   Boston, MA 02210 tel (617) 342 6004 I www.cabot-corp.com

 

Exhibit 10.1

 

SHORT TERM INCENTIVE PLAN C"STI" )

You will be eligible to participate in Cabot's Short Term Incentive Plan (STI) beginning with the plan year 2012.  The amount of your individual award, if any, will be based on your target incentive opportunity, achievement of corporate metrics and your overall performance assessment and will be paid to you in RMB.  Should you accept this offer, your full-year STI target will be $160,000.  For FY12, this target amount will be pro-rated. In addition, this amount may be adjusted in future years based on your position and other factors. For more information regarding the Cabot STI Plan please refer to the enclosed STI Plan Overview.

 

 

 

LONG TERM INCENTIVE PLAN ("LTI")

You will also be eligible to participate in the Cabot LTI Program commencing in FY13.  Should you accept this offer, your FY13 LTI target award will be valued in the range of $450,000 to $650,000.   This program provides equity based incentives to employees in a position to significantly contribute to the long-term strategic direction of the company.   Participants receive a grant of 35% stock options, 30% time-based stock units (TSUs) and 35% performance-based stock units (PSUs) which vest three years from the date of grant, subject to your continued employment by Cabot.  Upon vesting, the stock units, adjusted for performance, are converted to actual shares of Cabot common stock on a 1 to 1 basis and distributed to you.  The initial grant value of any LTI award is discretionary and the actual value at the time of vest is subject to various factors including performance against goals and stock price.  For more information regarding the Cabot LTI Plan please refer to the enclosed LTI Plan Overview.

 

 

 

RELOCATION

You are hired from Singapore and will be relocated to Shanghai under the Relocation Policy for New Hire with Work Experience, a copy of which is enclosed.   Any questions regarding your relocation should be directed to Robby D. Sisco, Vice President of Human Resources at (617) 342-6004.

 

 

During the period that your family remains in Singapore and you are in Shanghai (i.e. June, 2012 through December 2012), the Company will cover the cost of a one flight per month to Singapore to visit your family.

 

 

 

TAX EQUALIZATION

While located in Shanghai, you will be covered under the company's tax equalization policy. Under this policy, you will incur personal income taxes equal to the amount of income tax you would have paid on your Cabot compensation had you remained in Singapore.  In addition, Cabot's external tax provider will prepare all applicable tax returns while you are based in Shanghai.

 

Page 2

 
 

Exhibit 10.1

 

HOUSING

You will be provided with furnished rental accommodations in Shanghai.  You will be allotted a maximum housing budget (rental and utilities) of the RMB equivalent of $11,667 per month for rent (using the exchange rate in effect on your Start Date).  Rent will be paid on your behalf directly by Cabot.

 

If you make the personal decision to buy a house rather than occupy rented housing, you will bear all costs of buying and selling the home and the Company does not provide a housing allowance or other reimbursement to assist with the costs of an owned home (e.g. property tax or utilities costs).

 

 

 

SCHOOLING

While based in Shanghai, the company will reimburse the customary schooling charges of the nearest international or private school that provides a home country compatible school curriculum, for children Grades K through 12.  The company will reimburse the cost of tuition, registration fees, books, uniforms and transportation, when necessary.  Costs not covered include meals and extra-curricular activities such as musical instruments and lessons, school trips, sporting events, etc.

 

 

 

AUTOMOBILE

Cabot will provide you with two (2) cars and two (2) drivers while based in Shanghai.

 

 

 

HOME LEAVE

Once each year, Cabot will provide you with home leave for you and your family.  Home leave will be taken as vacation time for you, excluding one day's travel time in each direction.  Home leave is subject to the corporate travel policy guidelines, using direct route airfare.  If home leave is not taken in a particular year, the benefit may not be forfeited for the cash value of ticket(s) or for additional trips in a different year.

 

 

 

MEDICAL COVERAGE

You will be covered under the Aetna International Medical Plan while based in Shanghai. Enrollment information, plan documents and claims filing instructions will be sent to you under separate cover.

 

In the event of serious illness or injury in a host country without adequate hospital or medical facilities, Cabot will reimburse air travel costs for the sick person and, where necessary, an accompanying family member to visit the nearest location equipped to treat the illness or injury. Wherever possible, the approval of management should be obtained before such travel is arranged.

 

Page 3

 
 

Exhibit 10.1

 

SENIOR MANAGEMENT  SEVERANCE PROTECTION PLAN

You will be eligible to participate in the Senior Management Severance Protection Plan (which provides severance in the event of certain terminations of employment following a change of control of Cabot Corporation) as may be in effect from time to time and subject to the terms thereof (including without limitation, the reduction of benefits payable under the plan on account of any other severance benefits that may be payable to you under this letter).  The attached document defines the conditions under which benefits would be payable under this plan.

 

TERMINATION OF EMPLOYMENT

Your employment shall be at-will and shall not be for any specific term.  This means that, if you accept this offer, both you and the Company will retain the right to terminate your employment at any time with or without notice or cause.  Except as expressly provided under the terms of this offer or under the terms of an applicable benefits plan, the company shall have no further obligation to you upon termination of employment, for any reason, other than the payment to you of any base salary earned through the date of termination of employment, pay for accrued, unused vacation time and the satisfaction of any vested rights you may have in any employee benefit plans as of the date of termination.  Upon termination of employment, except as provided under the express terms of this letter, your participation in all benefit plans shall cease in accordance with the terms of the applicable plan document.

 

Voluntary Separation

If termination of employment is initiated by you, the Company will cease immediately to subsidize housing, living, and automobile costs, and all other allowances and reimbursements. Other funds provided to you in advance, may be immediately repayable on a pro-rated basis.  The Company will not be responsible for moving you and your family or personal possessions back to Singapore.

 

Involuntary Termination

If your employment is terminated at Cabot's initiation before June 30, 2013, for any reason other than dismissal due to your violation of law or applicable company policy, you will be paid six months of your base pay as severance payment.

 

In addition, if at any time, your employment is terminated at Cabot's initiation, while based in Shanghai, for any reason other than dismissal due to your violation of law or applicable company policy, the Company will pay the costs to move you and your family, and your personal possessions, back to Singapore.  No relocation allowance will be paid.  The Company will take into consideration schooling issues when timing the move. However, if you elect not to return to your home country within 30 days of separation, the company reimbursement of air travel and shipping costs will no longer be available.

 

 

 

CONFIDENTIALITY AND NON-COMPETE AGREEMENT

You will be required to sign an Employee Proprietary Rights & Confidentiality Agreement (copy enclosed), due to the nature of our business.   A copy of the Cabot Corporation Global Ethics and Compliance Standards is also enclosed.    Please provide Cabot with a copy of any employment I

 

Page 4

 
 

Exhibit 10.1

 

 

confidentiality agreements you have signed with your former employer(s).  You are not being hired to exploit or access any confidential, proprietary or trade secret information belonging to former employers or any third party, and Cabot expects and insists that you will honor all of your legal and contractual obligations to such former employers or third parties.

 

 

 

OTHER EMPLOYMENT INFORMATION AND POLICIES

When you report to work, your HR Department will give you a copy of our employment policy and benefits manual. It is important that you read these materials carefully so that you can understand your rights and obligations when you become an employee of the company.

 

I have enclosed two copies of this letter. Please acknowledge your acceptance of this offer by signing below and returning one copy of this letter to me by February 20, 2012.  You may retain the second copy for your records.

 

Jeff, we believe that you will find Cabot to be an exciting, challenging and rewarding place to work. We look forward to you joining Cabot Corporation.

 

 

Sincerely,

 

/s/Patrick M. Prevost

 

Patrick M. Prevost

President and CEO

 

 

 

Enclosures:

Aetna Summary Grid

Employee Proprietary Rights &Confidentiality Agreement

Global Ethics and Compliance Standards

LTI Plan Overview

Relocation Policy

Severance Protection Plan (to follow in March 2012) STI Plan Overview

 

Page 5

 
 

Exhibit 10.1

 

 

This agreement constitutes the entire agreement between Jeff Zhu and Cabot Corporation and supersedes all communications, oral and written, between the parties on this subject.  It is understood and agreed that employment is at the will of the Company.

 

I understand and accept this offer of employment and agree to the terms outlined in it. I am not relying on any other representations in accepting this offer of employment.

 

 /s/Jeff Zhu_______________  2/14/2012          

Signature - Jeff Zhu Date

 

Page 6

 
 

Exhibit 10.1

 

 

 

 

 

 

CABOT

EMPLOYEE AGREEMENT

 

 

 

In accepting your employment  or continued  employment at Cabot  Corporation, a Delaware  Corporation having its principal offices in Boston,  Massachusetts, or any one of its subsidiaries and affiliates (collectively, referred to as "Cabot") and the compensation and benefits  received and  to  be received by you, training provided  by Cabot, access  to  and   use  of   Cabot's   confidential   information  and   trade  secrets,   and   other   good   and  valuable consideration, the receipt and sufficiency of which is acknowledged, you hereby agree as follows:

 

1.           Diligent Efforts.   During your employment,  you will serve Cabot  faithfully and, to the best of your ability,

will devote your time, energy and diligence to the business and activities of Cabot.

 

	
 
	
2.
	
Cabot  Confidential  Information.  Cabot  and you agree that, in order  to perform  your duties, you will be entrusted  with,  exposed  to,  or  assist  in  developing certain  Cabot  business  or  technical  information  of  a confidential  and/or proprietary  nature  (collectively "Cabot  Confidential  Information").   Cabot  Confidential Information  may include, but is not limited to: technology; inventions (whether or not patentable); trade secrets; ample ; compositions•    techniques   and   equipment;   methods;   manufacturing   processes   and   processing conditions; engineering data; drawing • specifications; formulae• plant design and layout; products and product applications•  development   plans   and   new   business   opportunities;   experimental work;  commercial   and developmental  operations; the identities and requirements  of customers  and prospective  customers; customer lists; suppliets and supplier lists; the identities of other individuals or third parties with whom Cabot has or with which  is seeking  to develop  a  business  relationship  and  the  nature  and  details of  any such  relationship or potential relationship; software and network  ; business and marketing plans and strategies; pricing, raw materials and  cost  information;  financial information;   compensation,   benefits  and  related  incentives;  and  any other information  relating to Cabot and its businesses.
	
 

 

	
 
	
3.
	
Third  Party Confidential lnformation.  Cabot and you agree that  in order to perform your duties  at Cabot, you  will be  entrusted   with  or  e:xposed. to certain  third  party  (e.g.  customers,  suppliers   business  partner business  or  technical  information  of  a  confidential  and/or   proprietary  nature  (collectively,  "Third   Party Confidential Information"). Third Party Confidential information may include, but is not limited to, technology• inventions  (whether or  not  patentable); trade secrets; samples; compositions• performance  targets and criteria; techniques  and  equipment;  methods;  manufacturing processes  and  processing  conditions;  engineering  data; drawings; specification ; plant design and layout; products and product applications; development  plans and new business opportunities; experimental work;  commercial and developmental operations; customers and customer lists; supplier and supplier lists• software and networks; business  marketing and any other plans and strategies; sales, pricing and costs information; financial information; and any other information  relating to such third party and its businesses.
	
 

 

	
 
	
4.
	
Non-Disclosure of Confidential Information. You agree at all times that you will hold Cabot Confidential Information  and Third  Party Confidential  Information  in trust  and confidence. You  further  agree that at all times  you  will  not  disclose  or  disseminate  Cabot  Confidential  Information  or  Third   Party  Confidential Information  to  any  unauthorized   other   party.   You also  agree  that  you  will not  use  Cabot  Confidential Information or Third  Party Confidential  Information, except  (i)  as  may be required in  performance  of your duties as an employee of Cabot; (ii) as otherwise authorized in writing by a duly authorized  officer of Cabot• or (iii) as may be required  by applicable law.   You  further agree that  these obligations  apply both  during your employment with Cabot and after your employment with Cabot has  ended.  You also agree that if you discover an inadvertent disclosure of Cabot Confidential Information  or Third Party Confidential Information, you will
	
 

 

 

RETURN ONE ORIGINAL TO CABOT LAW DEPARTMENT • ONE ORIGINAL TO THE  EMPLOYEE COPY TO FACIUTY HR FOR INCLUSION IN EMPLOYEE PERSONNEL FILE

 

 

Exhibit 10.1

 

immediately  inform   Cabot  so  that  reasonable   measures  may  be taken  to  recapture   the  Cabot  Confidential

Information or Third Party Confidential Information and prevent  further  inadvertent disclosures.

 

	
 
	
5.
	
Intellectual Property.   As used in this Agreement, "Intellectual  Property" means all intellectual property that (i) relates to any aspect of the actual or prospective  business  or activities of Cabot; or (ii) results from any work performed   on  Cabot   premises  or  by  the  use  of  any  of  Cabot's   facilities, equipment,   personnel  or  Cabot Confidential Information.   "Intellectual  Property" includes, but is not limited to, patents, trademarks, copyrights, inventions,   discoveries,  ideas,  designs,  improvements,  technology,  copyrightable  works  including  works  of authorship and  derivative works  (such as presentations, brochures,  manuals, articles and publications,  and  the like), software  and computer code  and models,  trade secrets, process  techniques,  analytical methodologies  and procedures,  apparatuses,  equipment  and manufacturing processes,  operating  conditions,  know-how  and show­ how, test results, data, and all other intellectual property  rights.
	
 

 

(a)  Prompt Disclosure.  You agree to promptly disclose to Cabot all Intellectual Property made, conceived, reduced to  practice or  developed  by you, either  alone or  jointly with  others,  during  your  employment  witl1 Cabot  or within one (1) year after your employment  with Cabot ends.

 

(b) Ownership I!)! Cabot. You agree that all Intellectual  Property  that is made, conceived,  reduced to practice, or developed  by you during your employment  with Cabot or within one (1) year after your employment  with Cabot ends shall be the sole and exclusive property  of Cabot without  the payment of any further  compensation  from Cabot to you.  You further  agree to assign and transfer (and hereby do assign and transfer) your entire right, title and  interest  in  and  to  all such  Intellectual  Property  to  Cabot  or  its nominee.    You  also agree to execute all documents that  may be  necessary  to assign your  entire  right, title and  interest  in and  to all such  Intellectual Property,  and you agree to cooperate  with Cabot or its nominee  in securing, maintaining and enforcing rights in such Intellectual Property.   Your cooperation may include, but is not limited to, assisting in the preparation  and prosecution  of any patent  or  copyright  applications  filed by Cabot  or its nominee  at its discretion,  all without furtl1er compensation  from  Cabot  to  you.   All copyrightable  works  and  other  works  of  authorship  will be "works   made  for  hire"  to  the  extent  allowed  by law.   You  understand   that  your  obligations  to assist and cooperate with Cabot regarding protection  and enforcement of its Intellectual Property  shall continue even after the termination  of your employment  with Cabot.

 

	
 
	
6. 
	
Agreements  with Former  Employers.   You agree and affirm that the performance of your duties for Cabot, or  your employment  with Cabot  will not conflict  with or  result in a breach  of any agreement  you have made with another  party.  You  further  understand  that, in performing your duties for Cabot, you will not disclose to Cabot  or use in any way any confidential information (such as confidential technical information, know-how, techniques, and trade secrets)  or intellectual  property  of any former  employer  or any other  party.
	
 

 

	
 
	
7. 
	
List of Prior Inventions or Discoveries.   You agree that Schedule A attached  to this Agreement is a true and complete  list of all inventions,  discoveries or other  intellectual property  rights relating to, or potentially relating to, the business  or activities of Cabot  which were developed  by you prior to your employment  with Cabot and for which you wish to be exempt  from  the obligations set forth in this Agreement.   If no Schedule A is attached hereto, you agree that  there are no inventions, discoveries or other  intellectual property  rights that you wish to exempt from the obligations set forth in this Agreement.
	
 

 

	
 
	
8.
	
Employment at Will.  You  understand and agree that your employment  with Cabot  may be terminated  at will by either Cabot  or yourself at any time and for any reason, with or without  notice.   This Agreement  does not  create  any  obligation  on  your  part  to  continue  your  employment   with  Cabot,  nor  does  it  create  any obligation on Cabot's  part to continue  your employment.
	
 

 

9.Return  of Cabot  Property.   You agree that on or before  the last day of your employment  with Cabot, you

will return  to Cabot  all badges,  keys, credit and  telephone  cards, cell phones,  notebooks (including laboratory

 

 

RETURN  ONE ORIGINAL TO CABOT LAW DEPARTMENT  • ONE ORIGINAL TO THE  EMPLOYEE

 

COPY TO FACILITY HR FOR INCLUSION  IN EMPLOYEE PERSONNEL FILE

 
 

Exhibit 10.1

 

notebooks),  notes, manuals, drawings, blueprints, letters, files, records,  books  (including library books), reports, publications,  documents, equipment   (including computer equipment),  computer disks,  files or  tapes, and any other  property  prepared  by or on  behalf of Cabot, or purchased  with Cabot  funds, along with any and all copies thereof.

 

	
 
	
10. 
	
Non-Competition.    The   Cabot   Confidential   Information,  Third   Party   Confidential   Information   and Intellectual Property  described  in this agreement has substantial value and your commitment to comply with the restrictions  regarding this information is essential.   In order  to ensure  compliance  with your obligations  under paragraphs  4 and 5 of this agreement,  you agree that, during the period of your employment  at Cabot and for a period  of  one  (1) year thereafter,  you will not,  directly or  indirectly  (either  alone  or  in association  with any person,  firm, corporation, or other  entity) work  for or on behalf of, become  an owner, partner  or investor  in, consult with, or otherwise  provide any services to any third party in any area or activity that is competitive witl1 any business or research and development activity of Cabot  in which you have been involved or to which you have been exposed during your employment  at Cabot.
	
 

 

11.   Non-Solicitation  of Cabot  Customers.   You agree that, during the period of your employment  with Cabot and for one  (1) year after your  employment  with Cabot  ends, you will not directly or indirectly (either alone or in association with any person,  firm, corporation, or other  entity) solicit, contact or call upon, or attempt  to do the same, any customer  of Cabot  witl1 whom  you had material contact  during  your employment  with Cabot in an effort to induce such customer  to purchase goods or services offered  by Cabot from a party other than Cabot.

 

12.   Non-Solicitation  of Cabot  Employees.    You agree that, during the period of your employment  with Cabot and for one  (1) year after your employment  with Cabot  ends, you will not  (other  than in the performance of your duties for Cabot) directly or indirectly (either alone or in association with any person, firm, corporation, or other entity) recruit, solicit, induce, or attempt  to do the same, any employee of Cabot to leave the employ of Cabot or otherwise cease to make his/her services available to Cabot.

 

13.   Notice  of  Election   to  Terminate  and  Permission   to  Communicate.   Should   you  elect  to  terminate   your employment with  Cabot,  you  will use  reasonable  efforts  to  give Cabot  at least  30 days'  advanced  written notice  of such  termination and will identify your  subsequent employer,  if any, and the nature  of the work in which  you expect  to be engaged  therewith,  in such  notice.   In the event that your employment  with Cabot is terminated,  whether  voluntarily  or  involuntarily,  you  agree  that  Cabot  may communicate with  any  new  or prospective  employer  for  the  purpose of  advising such  new or  prospective  employer  of  your obligations  to Cabot under this Agreement.

 

14.   Nature  of  the  Information  and  Restrictive  Covenants.    You  understand  and  agree  that  a violation  of  this Agreement  by you would cause irreparable harm and damage to Cabot.    You further acknowledge that damages would not be an adequate remedy for a breach or threatened  breach by you of the provisions of this Agreement. You  therefore  agree that  Cabot  shall be entitled  to  the enforcement of  this Agreement  by injunction,  specific performance or other  equitable relief, without  need of posting a bond  and without  prejudice to any other rights and remedies that Cabot  may have under  this Agreement or under  applicable law.  It is agreed and understood that the one-year  period of restriction set forth  in paragraphs  10 through  12 of this Agreement shall be tolled, and shall not  run, during  any period  of time in which you are in violation  of the terms  thereof,  in order  that Cabot  shall have the full temporal protection recited  herein.   It is further  agreed and understood that, in the event  of  a violation   of  the  terms  of  this  Agreement, Cabot  shall  be  entitled  to  an  award  of  reasonable attorney's fees incurred in enforcing its rights under  this Agreement.

 

15.  Severability.  In the event  that any provision in this Agreement is held illegal or unenforceable, that provision shall be limited or eliminated  to the minimum  extent  necessary so that this Agreement shall otherwise  remain in full force  and  effect.   The  elimination  of a provision of  this Agreement or  the imposition of limits on  a provision  shall not effect any other  provision  of the Agreement.

 

RETURN  ONE ORIGINAL TO CABOT LAW DEPARTMENT  + ONE ORIGINAL TO THE EMPLOYEE COPY TO FACILITY HR FOR INCLUSION  IN EMPLOYEE PERSONNEL FILE

 
 

Exhibit 10.1

 

16.  Survival; Binding  Effect.    This  Agreement   shall  survive  the  termina tion  of  your  employment   with  Cabot regardless of the manner  of your termination.   This Agreement  shall also be binding upon  your heirs, executors and administrators.

 

17.   Entire  Agreement. Except  as set forth  below, this Agreement covers  the entire  agreement  between  you and Cabot    regarding    your   obligations    with   respect    to   confidentiality,  non-competition,   non-solicitation, assignment of rights to intellectual property or the like. It supersedes all prior and contemporaneous communications, agreements  and  understandings, written  or oral, with respect  to those  matters.    However, this Agreement shall not  terminate or supersede any additional  obligations  you may have to Cabot  pursuant to any applicable  law with respect  to such matters.   In the event of conflict  between  this Agreement  and any prior  agreement between  you and Cabot,  this Agreement shall govern.  This Agreement may not  be modified or  amended, and  no  breach  shall  be deemed  to  be waived,  unless  agreed  to in writing  by you and  a duly authorized officer of Cabot

 

18.   Assignability.  This Agreement  is assignable by Cabot  and is for the benefit of Cabot, its subsidiaries, affiliates, successors  and assigns.  You understand  that this Agreement  is personal  in nature and may not  be assigned or transferred by you to any other person or party.

 

19. Understanding of the Agreement.    YOU  HEREBY CONFIRM:    (I) THAT YOU  HAVE  HAD  A REASONABLE AND SUFFICIENT PERIOD  TO   READ,   UNDERSTAND AND   CONSIDER THIS AGREEMENT; (II) THAT YOU  HAVE  HAD  AN  OPPORTUNITY TO  CONSULT WITH  A LAWYER OF YOUR  OWN  CHOICE IF YOU SO WISHED; (III) THAT YOU  UNDERSTAND THE TERMS AND REPRESENTATIONS MADE BY YOURSELF IN  THIS  AGREEMENT; AND (IV) THAT YOU  ARE ENTERING INTO AND EXECUTING THIS  AGREEMENT KNOWINGLY AND  VOLUNTARILY, AND THAT IN  SO DOING YOU  ARE  NOT RELYING UPON ANY  STATEMENTS OR REPRESENTATIONS  BY  CABOT   OR   ITS  REPRESENTATIVES OTHER  THAN  THE  EXPRESS TERMS  OF THIS  AGREEMENT.

 

 

REST  OF PAGE IS BLANK

 

RETURN  ONE ORIGINAL TO CABOT LAW DEPARTMENT  + ONE ORIGINAL TO THE EMPLOYEE COPY TO FACILITY HR FOR INCLUSION  IN EMPLOYEE PERSONNEL FILE

 
 

Exhibit 10.1

 

If this agreement is acceptable to you, please execute both copies of this Agreement in the space provided below and return one fully executed agreement to us.  This Agreement will be effective on the first day of your employment with Cabot.

 

Very truly yours,

 

CABOT CORPORATION

 

 

/s/Patrick M. Prevost

 

Patrick M. Prevost

President and Chief Executive Officer

 

 

The foregoing agreement is understood and accepted.

 

 

 

 

 

 

 

By:/s/Jeff Zhu                      ____________________________

Employee Signature

 

 

 

Name:Jeff Zhu_________________________________________

Print or Type Full Legal Name

 

 

Date:2/14/2012                       _________________________________________

Date Signed by Employee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RETURN  ONE ORIGINAL TO CABOT LAW DEPARTMENT  t ONE ORIGINAL TO THE  EMPLOYEE

 

Exhibit 10.1

 

 

 

 

 

 

 

 

 

 

February 4, 2021

 

Jeff Zhu

Shanghai Office

 

Dear Jeff,

 

Reference is made to the letter agreement dated February 10, 2012 between Cabot Corporation and you (the “2012 Letter”), setting out certain of the terms and conditions of your employment with Cabot China Limited.  This letter amends and modifies the 2012 Letter to reflect your current compensation and benefits, to the extent such compensation and benefits have changed from those described in the 2012 Letter.   All other terms and conditions of the 2012 Letter remain unchanged and in effect; it being understood that the Board of Directors of Cabot Corporation has sole responsibility for the election of officers of Cabot.

 

Salary; Short Term Incentive Plan; Long Term Incentive Plan.  In your current position as Senior Vice President of Cabot Corporation, President Performance Additives Business and President APAC Region, you remain an employee of Cabot China Limited based in Shanghai, China, and are a member of Cabot’s Management Executive Committee (“ExCo”).  You remain eligible to participate in Cabot’s Short-Term Incentive Plan (“STI”) and Long-Term Incentive Plan (“LTI”).  Your current base salary, target STI award for fiscal 2021 and LTI award for fiscal 2021 are as approved by the Compensation Committee of the Board of Directors (the “Compensation Committee”) at its meeting in November 2020.  As a member of ExCo, you will continue to participate in the annual performance and compensation review cycle, with any changes in your base salary, and any future awards to you under the STI and LTI programs to be made in the sole discretion of the Compensation Committee.

 

Housing: - Your maximum housing budget (rent and utilities) will be 89,500 RMB per month for furnished rental accommodations in Shanghai, China.  Rent will continue to be paid on your behalf directly by Cabot.  This amount will be periodically reviewed against market conditions and modified as Cabot and you agree.

 

Travel Allowance: You will receive a monthly travel allowance of $2,083.33, up to a maximum of $25,000 annually, paid in RMB.

 

Health and Welfare, Life and Disability Coverage:   While you are based in Shanghai, you continue to be covered under the Cigna international benefits program for health and welfare, life and disability that Cabot offers to employees generally who are on an international assignment, as such benefits may be changed or modified from time to time by Cabot in its sole discretion, in addition to the health and welfare benefits offered to our other employees working in China, as such benefits may be changed or modified from time to time by Cabot in its sole discretion. 

 

 

 

Exhibit 10.1

 

China Supplemental Retirement Plan: You remain eligible to participate in the China Supplemental Retirement Plan on the same terms and conditions as other employees of Cabot China Limited. Under the current terms and provisions of the plan, Cabot China makes taxable contribution equal to 5% - 11% of a participant’s monthly base salary (excluding overtime pay, where applicable, and allowances and subsidies) based on years of service and job level. These contributions are allocated to the participant’s account into investment options selected by Cabot China and managed by external managers appointed by Cabot China. Your participation in the plan is subject to the terms and conditions of that plan, including Cabot’s right to amend, including to terminate, the plan at any time in its sole discretion.

 

Additional Information 

 

	
•
	
As a member of ExCo, you are required to obtain pre-clearance from Cabot’s General Counsel, Karen Kalita before any transactions in Cabot stock.

	
•
	
As a member of ExCo, you are subject to Cabot’s Stock Ownership Guidelines.  You are expected to own equity in Cabot with a value of three times your annual salary. Equity that meets the requirements of the Stock Ownership Guidelines are vested and exercisable options, unvested TSUs, Retirement Plan Cabot Stock, and Personal Cabot holdings.

	
•
	
You will be provided with financial planning and tax preparation services.

 

Please acknowledge your acceptance of this amendment by signing below and returning one copy of this letter to me by February 4, 2021.  You may retain the second copy for your records.

 

If you have any questions, please feel free to contact me directly at 617-342-6110.

 

Sincerely,

 

/s/Art Wood

 

Art Wood

SVP & Chief Human Resources Officer

 

 

The 2012 Letter, as amended by this letter agreement dated February 4, 2021, and the Employee Agreement dated February 14, 2012 between Cabot Corporation and you constitute the entire agreement between Jeff Zhu and Cabot Corporation and supersedes all communications, oral and written, between the parties on this subject.  It is understood and agreed that employment is at the will of the Company.

 

I understand and accept this addendum and agree to the terms outlined in it.  I am not relying on any other representations in accepting this offer of employment.

 

 

/s/Jeff Zhu_____________________ ______2/4/2021____________

Signature – Jeff Zhu                                                                       DateExhibit 10.1

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is entered into as of February 5, 2021, by and among FS Development Corp.,
a Delaware corporation (the “Company”), the parties listed as Investors on Schedule I hereto (each, an
“Investor” and collectively, the “Investors”) and Gemini Therapeutics, Inc.,
a Delaware company (“Gemini”).

 

WHEREAS, the Company,
FSG Merger Sub, Inc., a Delaware corporation (“Merger Sub”), Gemini and Shareholder Representative Services
LLC, a Colorado limited liability company, as the Stockholders’ Representative, have entered into that certain Agreement
and Plan of Merger, dated as of October 15, 2020 (as amended or supplemented from time to time, the “Merger Agreement”),
pursuant to which, among other things: (a) Merger Sub will merge with and into Gemini (the “Merger”),
with Gemini surviving the Merger as a wholly-owned subsidiary of Company;

 

WHEREAS, the Company
and the Investors listed as Company Investors on Schedule I hereto (collectively, the “Company Investors”)
are parties to that certain Registration Rights Agreement, dated August 11, 2020 (the “Prior Agreement”);

 

WHEREAS, the Company
and the Company Investors desire to terminate the Prior Agreement in its entirety and to accept the rights created pursuant to
this Agreement in lieu of the rights granted to them under the Prior Agreement;

 

WHEREAS, the Company
Investors and Gemini Investors listed on Schedule I hereto (“Gemini Investors”) have subscribed to purchase
shares of Common Stock in the Private Placement (as defined in the Merger Agreement) in connection with the consummation of the
Merger; and

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1. DEFINITIONS.
The following capitalized terms used herein have the following meanings:

 

“Addendum
Agreement” is defined in Section 7.2.

 

“Agreement”
means this Agreement, as amended, restated, supplemented, or otherwise modified from time to time.

 

“Business
Day” means a day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized
or required by law to close.

 

“Bylaws”
means the bylaws of the Company, as amended, modified, supplemented or restated and in effect from time to time.

 

“Certificate”
means the certificate of incorporation of the Company, as amended, modified, supplemented or restated and in effect from time to
time, including any certificate of designation, correction or amendment filed with the Secretary of State of the State of Delaware.

 

     

     

    

 

“Commission”
means the Securities and Exchange Commission, or any other Federal agency then administering the Securities Act or the Exchange
Act.

 

“Common
Stock” means the common stock, par value $0.0001 per share, of the Company.

 

“Company”
is defined in the preamble to this Agreement.

 

“Company
Investors” is defined in the preamble to this Agreement.

 

“Demand
Registration” is defined in Section 2.2.1.

 

“Demanding
Holder” is defined in Section 2.2.1.

 

“Effectiveness
Period” is defined in Section 3.1.3.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated
thereunder, all as the same shall be in effect at the time.

 

“Form S-1”
means a Registration Statement on Form S-1.

 

“Form S-3”
means a Registration Statement on Form S-3 or any similar short-form registration that may be available at such time.

 

“Gemini”
is defined in the preamble to this Agreement.

 

“Gemini
Investors” is defined in the recitals to this Agreement.

 

“Indemnified
Party” is defined in Section 4.3.

 

“Indemnifying
Party” is defined in Section 4.3.

 

“Investor”
and “Investors” is defined in the preamble to this Agreement.

 

“Investor
Indemnified Party” is defined in Section 4.1.

 

“Maximum
Number of Shares” is defined in Section 2.2.4.

 

“Merger”
is defined in the preamble to this Agreement.

 

“Merger
Agreement” is defined in the preamble to this Agreement.

 

“Merger
Sub” is defined in the preamble to this Agreement.

 

“New Registration
Statement” is defined in Section 2.1.4.

 

“Notices”
is defined in Section 7.3.

 

“Piggy-Back
Registration” is defined in Section 2.3.1.

 

    2

     

    

 

“Prior
Agreement” is defined in the preamble to this Agreement.

 

“Pro Rata”
is defined in Section 2.2.4.

 

“Register,”
“Registered” and “Registration” mean a registration effected by preparing and
filing a registration statement or similar document in compliance with the requirements of the Securities Act, and the applicable
rules and regulations promulgated thereunder, and such registration statement becoming effective.

 

“Registrable
Securities” means (i) the shares of Common Stock issued to the Investors in the Merger (including Escrow Shares (as
defined in the Merger Agreement)), (ii) the shares of Common Stock held by the Company Investors, (iii) the shares of Common Stock
issuable to the Investors in the Private Placement, and (iv) all shares of Common Stock issued to any Investor with respect to
such securities referred to in clauses (i) – (iii) by way of any share split, share dividend or other distribution, recapitalization,
share exchange, share reconstruction, amalgamation, contractual control arrangement or similar event. As to any particular Registrable
Securities, such securities shall cease to be Registrable Securities when: (a) a Registration Statement with respect to the sale
of such securities shall have become effective under the Securities Act and such securities shall have been sold, transferred,
disposed of or exchanged in accordance with such Registration Statement; (b) such securities shall have been otherwise transferred,
new certificates for them not bearing a legend restricting further transfer shall have been delivered by the Company and subsequent
public distribution of them shall not require registration under the Securities Act; or (c) such securities shall have ceased to
be outstanding.

 

“Registration
Statement” means a registration statement filed by the Company with the Commission in compliance with the Securities
Act and the rules and regulations promulgated thereunder for a public offering and sale of equity securities, or securities or
other obligations exercisable or exchangeable for, or convertible into, equity securities (other than a registration statement
on Form S-4 or Form S-8, or their successors, or any registration statement covering only securities proposed to be issued in exchange
for securities or assets of another entity).

 

“Resale
Shelf Registration Statement” is defined in Section 2.1.1.

 

“Requesting
Holder” is defined in Section 2.1.5(a).

 

“SEC Guidance”
is defined in Section 2.1.4.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder,
all as the same shall be in effect at the time.

 

“Selling
Holders” is defined in Section 2.1.5(a)(ii).

 

“Subsequent
Shelf Registration” is defined in Section 2.1.3.

 

“Transfer”
means to (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase, make any short
sale or otherwise dispose of or agree to dispose of, directly or indirectly, or establish or increase a put equivalent position
or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act, and the rules and regulations
of the Commission promulgated thereunder, with respect to any Common Stock, or any options or warrants to purchase any shares of
Common Stock or any securities convertible into, exchangeable for or that represent the right to receive shares of Common Stock,
(ii) enter into any swap or hedging or other arrangement which is designed to or which reasonably could be expected to lead to
or result in a sale or disposition of the shares of Common Stock, or that transfers to another, in whole or in part, any of the
economic consequences of ownership of any Common Stock, whether any such transaction is to be settled by delivery of such securities,
in cash or otherwise, or (iii) publicly announce any intention to effect any transaction, including the filing of a registration
statement specified in clause (i) or (ii). Notwithstanding the foregoing, a Transfer shall not be deemed to include any transfer
for no consideration if the donee, trustee, heir or other transferee has agreed in writing to be bound by the same terms under
this Agreement to the extent and for the duration that such terms remain in effect at the time of the Transfer.

 

    3

     

    

 

“Underwriter”
means a securities dealer who purchases any Registrable Securities as principal in an underwritten offering and not as part of
such dealer’s market-making activities.

 

“Underwritten
Takedown” shall mean an underwritten public offering of Registrable Securities pursuant to the Resale Shelf Registration
Statement, as amended or supplemented.

 

“Underwritten
Demand Registration” shall mean an underwritten public offering of Registrable Securities pursuant to a Demand Registration,
as amended or supplemented.

 

2. REGISTRATION
RIGHTS.

 

2.1 Resale
Shelf Registration Rights.

 

2.1.1 Registration
Statement Covering Resale of Registrable Securities. The Company shall prepare and file or cause to be prepared and filed with
the Commission as soon as practicable after the Closing Date (as such term is defined in the Merger Agreement), but in any event
no later than 30 calendar days after the Closing Date (the “Filing Date”), a Registration Statement for
an offering to be made on a continuous basis pursuant to Rule 415 of the Securities Act registering the resale from time to time
by Investors of all of the Registrable Securities then held by such Investors that are not covered by an effective registration
statement on the Filing Date (the “Resale Shelf Registration Statement”). The Resale Shelf Registration
Statement shall be on Form S-3 or another appropriate form permitting Registration of such Registrable Securities for resale by
such Investors. The Company shall use reasonable best efforts to cause the Resale Shelf Registration Statement to be declared effective
as soon as possible after filing, and once effective, to keep the Resale Shelf Registration Statement continuously effective under
the Securities Act at all times until the expiration of the Effectiveness Period.

 

2.1.2 Notification
and Distribution of Materials. The Company shall notify the Investors in writing of the effectiveness of the Resale Shelf Registration
Statement and shall furnish to them, without charge, such number of copies of the Resale Shelf Registration Statement (including
any amendments, supplements and exhibits), the Prospectus contained therein (including each preliminary prospectus and all related
amendments and supplements) and any documents incorporated by reference in the Resale Shelf Registration Statement or such other
documents as the Investors may reasonably request in order to facilitate the sale of the Registrable Securities in the manner described
in the Resale Shelf Registration Statement.

 

    4

     

    

 

2.1.3 Amendments
and Supplements; Subsequent Shelf Registration. Subject to the provisions of Section 2.1.1 above, the Company shall
promptly prepare and file with the Commission from time to time such amendments and supplements to the Resale Shelf Registration
Statement and Prospectus used in connection therewith as may be necessary to keep the Resale Shelf Registration Statement effective
and to comply with the provisions of the Securities Act with respect to the disposition of all the Registrable Securities during
the Effectiveness Period, or to file an additional Registration Statement as a shelf registration (a “Subsequent Shelf
Registration”) registering the resale of all outstanding Registrable Securities from time to time, and pursuant to any
method or combination of methods legally available to, and requested by, any holder. If a Subsequent Shelf Registration is filed,
the Company shall use its reasonable best efforts to (i) cause such Subsequent Shelf Registration to become effective under the
Securities Act as promptly as is reasonably practicable after the filing thereof and (ii) keep such Subsequent Shelf Registration
continuously effective and to comply with the provisions of the Securities Act with respect to the disposition of all the Registrable
Securities at all times during the Effectiveness Period.

 

2.1.4 Notwithstanding
the registration obligations set forth in this Section 2.1, in the event the Commission informs the Company that all of
the Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering
on a single registration statement, the Company agrees to promptly (i) inform each of the holders thereof and use its commercially
reasonable efforts to file amendments to the Resale Shelf Registration Statement as required by the Commission and/or (ii) withdraw
the Resale Shelf Registration Statement and file a new registration statement (a “New Registration Statement”),
in either case covering the maximum number of Registrable Securities permitted to be registered by the Commission, on Form S-3
or such other form available to register for resale the Registrable Securities as a secondary offering; provided, however, that
prior to filing such amendment or New Registration Statement, the Company shall be obligated to use its commercially reasonable
efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance with any publicly-available
written or oral guidance, comments, requirements or requests of the Commission staff (the “SEC Guidance”),
including without limitation, the Manual of Publicly Available Telephone Interpretations D.29. Notwithstanding any other provision
of this Agreement, if any SEC Guidance sets forth a limitation of the number of Registrable Securities permitted to be registered
on a particular Registration Statement as a secondary offering (and notwithstanding that the Company used commercially reasonable
efforts to advocate with the Commission for the registration of all or a greater number of Registrable Securities), unless otherwise
directed in writing by a holder as to its Registrable Securities, the number of Registrable Securities to be registered on such
Registration Statement will be reduced on a pro rata basis based on the total number of Registrable Securities held by the Investors,
subject to a determination by the Commission that certain Investors must be reduced first based on the number of Registrable Securities
held by such Investors. In the event the Company amends the Resale Shelf Registration Statement or files a New Registration Statement,
as the case may be, under clauses (i) or (ii) above, the Company will use its commercially reasonable efforts to file with the
Commission, as promptly as allowed by Commission or SEC Guidance provided to the Company or to registrants of securities in general,
one or more registration statements on Form S-3 or such other form available to register for resale those Registrable Securities
that were not registered for resale on the Resale Shelf Registration Statement, as amended, or the New Registration Statement.

 

    5

     

    

 

2.1.5 Notice
of Certain Events. The Company shall promptly notify the Investors in writing of any request by the Commission for any amendment
or supplement to, or additional information in connection with, the Resale Shelf Registration Statement required to be prepared
and filed hereunder (or Prospectus relating thereto). The Company shall promptly notify each Investor in writing of the filing
of the Resale Shelf Registration Statement or any Prospectus, amendment or supplement related thereto or any post-effective amendment
to the Resale Shelf Registration Statement and the effectiveness of any post-effective amendment.

 

(a) If
the Company shall receive a request from the holders of Registrable Securities with an estimated market value of at least $5,000,000
(the requesting holder(s) shall be referred to herein as the “Requesting Holder(s)”) that the Company
effect the Underwritten Takedown of all or any portion of the Requesting Holder’s Registrable Securities, and specifying
the intended method of disposition thereof, then the Company shall promptly give notice of such requested Underwritten Takedown
at least ten (10) Business Days prior to the anticipated filing date of the prospectus or supplement relating to such Underwritten
Takedown to the other Investors and thereupon shall use its reasonable best efforts to effect, as expeditiously as possible, the
offering in such Underwritten Takedown of:

 

(i) subject
to the restrictions set forth in Section 2.2.4, all Registrable Securities for which the Requesting Holder has requested
such offering under Section 2.1.5(a), and

 

(ii) subject
to the restrictions set forth in Section 2.2.4, all other Registrable Securities that any holders of Registrable Securities
(all such holders, together with the Requesting Holder, the “Selling Holders”) have requested the Company
to offer by request received by the Company within seven Business Days after such holders receive the Company’s notice of
the Underwritten Takedown, all to the extent necessary to permit the disposition (in accordance with the intended methods thereof
as aforesaid) of the Registrable Securities so to be offered.

 

(b) Promptly
after the expiration of the seven-Business Day-period referred to in Section 2.1.5(a)(ii), the Company will notify
all Selling Holders of the identities of the other Selling Holders and the number of shares of Registrable Securities requested
to be included therein.

 

(c) the
Company shall only be required to effectuate: (i) one Underwritten Takedown within any six-month period; (ii) no more than 2 Underwritten
Takedowns in respect of all Registrable Securities held by the Company Investors after giving effect to Section 2.2.1(c);
and (iii) no more than 2 Underwritten Takedowns in respect of all Registrable Securities held by Gemini Investors after giving
effect to Section 2.2.1(d).

 

(d) If
the managing underwriter in an Underwritten Takedown advises the Company and the Requesting Holder that, in its view, the number
of shares of Registrable Securities requested to be included in such underwritten offering exceeds the largest number of shares
that can be sold without having an adverse effect on such offering, including the price at which such shares can be sold, the shares
included in such Underwritten Takedown will be reduced by the Registrable Securities held by the Selling Holders (applied on a
pro rata basis based on the total number of Registrable Securities held by such Investors, subject to a determination by the Commission
that certain Investors must be reduced first based on the number of Registrable Securities held by such Investors).

 

    6

     

    

 

2.1.6 Selection
of Underwriters. Selling Holders holding a majority in interest of the Registrable Securities requested to be sold in an Underwritten
Takedown shall have the right to select an Underwriter or Underwriters in connection with such Underwritten Takedown, which Underwriter
or Underwriters shall be reasonably acceptable to the Company. In connection with an Underwritten Takedown, the Company shall enter
into customary agreements (including an underwriting agreement in customary form) and take such other actions as are reasonably
required in order to expedite or facilitate the disposition of the Registrable Securities in such Underwritten Takedown, including,
if necessary, the engagement of a “qualified independent underwriter” in connection with the qualification of the underwriting
arrangements with the Financial Industry Regulatory Authority, Inc.

 

2.1.7 Registrations
effected pursuant to this Section 2.1 shall not be counted as Demand Registrations effected pursuant to Section 2.2.

 

2.2 Demand
Registration.

 

2.2.1 Request
for Registration. At any time and from time to time after the expiration of a lock-up to which such shares are subject, if
any, (i) Company Investors who hold a majority in interest of the Registrable Securities held by all Company Investors or (ii)
Gemini Investors who hold at least a majority of the Registrable Securities held by all Gemini Investors, as the case may be, may
make a written demand for Registration under the Securities Act of all or any portion of their Registrable Securities on Form S-1
or any similar long-form Registration or, if then available, on Form S-3. Each registration requested pursuant to this Section
2.2.1 is referred to herein as a “Demand Registration”. Any demand for a Demand Registration shall
specify the number of shares of Registrable Securities proposed to be sold and the intended method(s) of distribution thereof.
The Company will notify all Investors that are holders of Registrable Securities of the demand, and each such holder of Registrable
Securities who wishes to include all or a portion of such holder’s Registrable Securities in the Demand Registration (each
such holder including shares of Registrable Securities in such registration, a “Demanding Holder”) shall
so notify the Company within fifteen (15) days after the receipt by the holder of the notice from the Company. Upon any such request,
the Demanding Holders shall be entitled to have their Registrable Securities included in the Demand Registration, subject to Section
2.2.4 and the provisos set forth in Section 3.1.1. The Company shall not be obligated to effect: (a) more than one (1)
Demand Registration during any six-month period; (b) any Demand Registration at any time there is an effective Resale Shelf Registration
Statement on file with the Commission pursuant to Section 2.1; (c) more than 2 Underwritten Demand Registrations in respect
of all Registrable Securities held by the Company Investors, each of which will also count as an Underwritten Takedown of the Company
Investors under Section 2.1.5(c)(ii); or (d) more than 2 Underwritten Demand Registrations in respect of all Registrable
Securities held by Gemini Investors, each of which will also count as an Underwritten Takedown of Gemini Investors under Section
2.1.5(c)(iii).

 

    7

     

    

 

2.2.2 Effective
Registration. A Registration will not count as a Demand Registration until the Registration Statement filed with the Commission
with respect to such Demand Registration has been declared effective and the Company has complied with all of its obligations under
this Agreement with respect thereto; provided, however, that if, after such Registration Statement has been declared effective,
the offering of Registrable Securities pursuant to a Demand Registration is interfered with by any stop order or injunction of
the Commission or any other governmental agency or court, the Registration Statement with respect to such Demand Registration will
be deemed not to have been declared effective, unless and until, (i) such stop order or injunction is removed, rescinded or otherwise
terminated, and (ii) a majority-in-interest of the Demanding Holders thereafter elect to continue the offering; provided, further,
that the Company shall not be obligated to file a second Registration Statement until a Registration Statement that has been filed
is counted as a Demand Registration or is terminated.

 

2.2.3 Underwritten
Offering. If the Demanding Holders so elect and such holders so advise the Company as part of their written demand for a Demand
Registration, the offering of such Registrable Securities pursuant to such Demand Registration shall be in the form of an underwritten
offering with an estimated market value of at least $10,000,000. In such event, the right of any holder to include its Registrable
Securities in such registration shall be conditioned upon such holder’s participation in such underwriting and the inclusion
of such holder’s Registrable Securities in the underwriting to the extent provided herein. All Demanding Holders proposing
to distribute their Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form
with the Underwriter or Underwriters selected for such underwriting by the holders initiating the Demand Registration, and subject
to the approval of the Company.

 

2.2.4 Reduction
of Offering. If the managing Underwriter or Underwriters for a Demand Registration that is to be an underwritten offering advises
the Company and the Demanding Holders in writing that the dollar amount or number of shares of Registrable Securities which the
Demanding Holders desire to sell, taken together with all other Common Stock or other securities which the Company desires to sell
and the Common Stock, if any, as to which registration has been requested pursuant to written contractual piggy-back registration
rights held by other shareholders of the Company who desire to sell, exceeds the maximum dollar amount or maximum number of shares
that can be sold in such offering without adversely affecting the proposed offering price, the timing, the distribution method,
or the probability of success of such offering (such maximum dollar amount or maximum number of shares, as applicable, the “Maximum
Number of Shares”), then the Company shall include in such registration: (i) first, the Registrable Securities as
to which Demand Registration has been requested by the Demanding Holders (pro rata in accordance with the number of shares that
each such Person has requested be included in such registration, regardless of the number of shares held by each such Person (such
proportion is referred to herein as “Pro Rata”)) that can be sold without exceeding the Maximum Number
of Shares; (ii) second, to the extent that the Maximum Number of Shares has not been reached under the foregoing clause (i), the
Common Stock or other securities that the Company desires to sell that can be sold without exceeding the Maximum Number of Shares;
(iii) third, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (i) and (ii), the
Common Stock or other securities for the account of other persons that the Company is obligated to register pursuant to written
contractual arrangements with such persons, as to which “piggy-back” registration has been requested by the holders
thereof, Pro Rata, that can be sold without exceeding the Maximum Number of Shares.

    8

     

    

 

2.2.5 Withdrawal.
A Demanding Holder shall have the right to withdraw all or any portion of its Registrable Securities included in an Underwritten
Offering pursuant to this Section 2.2 for any reason or no reason whatsoever upon written notice to the Company and the
Underwriter or Underwriters of its intention to withdraw from such Underwritten Offering prior to the pricing of such Underwritten
Offering and such withdrawn amount shall no longer be considered an Underwritten Offering. Notwithstanding anything to the contrary
in this Agreement, the Company shall be responsible for the registration expenses incurred in connection with an Underwritten Offering
prior to its withdrawal under this Section 2.2.5.

 

2.3 Piggy-Back
Registration.

 

2.3.1 Piggy-Back
Rights. If at any time after the first anniversary of the date of this Agreement, the Company proposes to file a Registration
Statement under the Securities Act with respect to an offering of equity securities, or securities or other obligations exercisable
or exchangeable for, or convertible into, equity securities, by the Company for its own account or for shareholders of the Company
for their account (or by the Company and by shareholders of the Company including, without limitation, pursuant to Section 2.1),
other than a Registration Statement (i) filed in connection with any employee stock option or other benefit plan, (ii) for an exchange
offer or offering of securities solely to the Company’s existing shareholders, (iii) for an offering of debt that is convertible
into equity securities of the Company or (iv) for a dividend reinvestment plan, then the Company shall (x) give written notice
of such proposed filing to the holders of Registrable Securities as soon as practicable but in no event less than ten (10) days
before the anticipated filing date, which notice shall describe the amount and type of securities to be included in such offering,
the intended method(s) of distribution, and the name of the proposed managing Underwriter or Underwriters, if any, of the offering,
and (y) offer to the holders of Registrable Securities in such notice the opportunity to register the sale of such number of shares
of Registrable Securities as such holders may request in writing within five (5) days following receipt of such notice (a “Piggy-Back
Registration”). The rights provided under this Section 2.3.1 shall not be available to any Investor at such
time as (i) there is an effective Resale Shelf Registration Statement available for the resale of the Registerable Securities pursuant
to Section 2.1, (ii) such Registration is solely to be used for the offering of securities by the Company for its own account
and (iii) no other shareholder of the Company is entitled to participate in such Registration. The Company shall cause such Registrable
Securities to be included in such registration and shall use its best efforts to cause the managing Underwriter or Underwriters
of a proposed underwritten offering to permit the Registrable Securities requested to be included in a Piggy-Back Registration
on the same terms and conditions as any similar securities of the Company and to permit the sale or other disposition of such Registrable
Securities in accordance with the intended method(s) of distribution thereof. All holders of Registrable Securities proposing to
distribute their securities through a Piggy-Back Registration that involves an Underwriter or Underwriters shall enter into an
underwriting agreement in customary form with the Underwriter or Underwriters selected for such Piggy-Back Registration.

 

    9

     

    

 

2.3.2 Reduction
of Offering. If the managing Underwriter or Underwriters for a Piggy-Back Registration that is to be an underwritten offering
advises the Company and the holders of Registrable Securities in writing that the dollar amount or number of Common Stock which
the Company desires to sell, taken together with Common Stock, if any, as to which registration has been demanded pursuant to written
contractual arrangements with persons other than the holders of Registrable Securities hereunder and the Registrable Securities
as to which registration has been requested under this Section 2.3, exceeds the Maximum Number of Shares, then the Company
shall include in any such registration:

 

(a) If
the registration is undertaken for the Company’s account: (A) first, the Common Stock or other securities that the Company
desires to sell that can be sold without exceeding the Maximum Number of Shares; and (B) second, to the extent that the Maximum
Number of Shares has not been reached under the foregoing clause (A), the Common Stock or other securities, if any, comprised of
Registrable Securities, as to which registration has been requested pursuant to the terms hereof, that can be sold without exceeding
the Maximum Number of Shares, Pro Rata; and (C) third, to the extent that the Maximum Number of shares has not been reached under
the foregoing clauses (A) and (B), the Common Stock or other securities for the account of other persons that the Company is obligated
to register pursuant to written contractual piggy-back registration rights with such persons and that can be sold without exceeding
the Maximum Number of Shares; and

 

(b) If
the registration is a “demand” registration undertaken at the demand of persons other than either the holders of Registrable
Securities, (A) first, the Common Stock or other securities for the account of the demanding persons that can be sold without exceeding
the Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares has not been reached under the foregoing
clause (A), the Common Stock or other securities that the Company desires to sell that can be sold without exceeding the Maximum
Number of Shares; (C) third, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (A)
and (B), the Common Stock or other securities, if any, comprised of Registrable Securities, Pro Rata, as to which registration
has been requested pursuant to the terms hereof, that can be sold without exceeding the Maximum Number of Shares; and (D) fourth,
to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (A), (B) and (C), the Common Stock
or other securities for the account of other persons that the Company is obligated to register pursuant to written contractual
arrangements with such persons, that can be sold without exceeding the Maximum Number of Shares.

 

2.3.3 Withdrawal.
Any holder of Registrable Securities may elect to withdraw such holder’s request for inclusion of Registrable Securities
in any Piggy-Back Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness of
the Registration Statement. The Company (whether on its own determination or as the result of a withdrawal by persons making a
demand pursuant to written contractual obligations) may withdraw a Registration Statement at any time prior to the effectiveness
of such Registration Statement. Notwithstanding any such withdrawal, the Company shall pay all expenses incurred by the holders
of Registrable Securities in connection with such Piggy-Back Registration as provided in Section 3.3.

 

    10

     

    

 

3. REGISTRATION
PROCEDURES.

 

3.1 Filings;
Information. Whenever the Company is required to effect the registration of any Registrable Securities pursuant to Section
2, the Company shall use its commercially reasonable best efforts to effect the registration and sale of such Registrable Securities
in accordance with the intended method(s) of distribution thereof as expeditiously as practicable, and in connection with any such
request:

 

3.1.1 Filing
Registration Statement. The Company shall use its reasonable best efforts to, as expeditiously as possible after receipt of
a request for a Demand Registration pursuant to Section 2.1, prepare and file with the Commission a Registration Statement
on any form for which the Company then qualifies or which counsel for the Company shall deem appropriate and which form shall be
available for the sale of all Registrable Securities to be registered thereunder in accordance with the intended method(s) of distribution
thereof, and shall use its reasonable best efforts to cause such Registration Statement to become effective and use its reasonable
best efforts to keep it effective for the Effectiveness Period; provided, however, that the Company shall have the right to defer
any Demand Registration for up to sixty (60) days, and any Piggy-Back Registration for such period as may be applicable to deferment
of any Demand Registration to which such Piggy-Back Registration relates, in each case if, in the good faith judgment of the Board
of Directors of the Company (the “Company Board”), it would be materially detrimental to the Company
and its shareholders for such Registration Statement to be effected at such time; provided, further, however, that the Company
shall not have the right to exercise the right set forth in the immediately preceding proviso for more than a total of ninety (90)
consecutive calendar days, or more than one hundred twenty (120) total calendar days in any 365-day period.

 

3.1.2 Copies.
The Company shall, prior to filing a Registration Statement or prospectus, or any amendment or supplement thereto, furnish without
charge to the holders of Registrable Securities included in such registration, and such holders’ legal counsel, copies of
such Registration Statement as proposed to be filed, each amendment and supplement to such Registration Statement (in each case
including all exhibits thereto and documents incorporated by reference therein), the prospectus included in such Registration Statement
(including each preliminary prospectus), and such other documents as the holders of Registrable Securities included in such registration
or legal counsel for any such holders may request in order to facilitate the disposition of the Registrable Securities owned by
such holders.

 

3.1.3 Amendments
and Supplements. Until the earlier of (i) the tenth anniversary of the date of this Agreement or (ii) the date as of which
(A) all of the Registrable Securities have been sold pursuant to a Registration Statement (but in no event prior to the applicable
period referred to in Section 4(a)(3) of the Securities Act and Rule 174 thereunder (or any successor rule promulgated thereafter
by the Commission)) or (B) the Holders of all Registrable Securities are permitted to sell the Registrable Securities under Rule
144 (or any similar provision) under the Securities Act without limitation on the amount of securities sold or the manner of sale,
the Company shall prepare and file with the Commission such amendments, including post-effective amendments, and supplements to
such Registration Statement and the prospectus used in connection therewith as may be necessary to keep such Registration Statement
effective and in compliance with the provisions of the Securities Act (the “Effectiveness Period”).

 

    11

     

    

 

3.1.4 Notification.
After the filing of a Registration Statement, the Company shall promptly, and in no event more than two (2) Business Days after
such filing, notify the holders of Registrable Securities included in such Registration Statement of such filing, and shall further
notify such holders promptly and confirm such advice in writing in all events within two (2) Business Days of the occurrence of
any of the following: (i) when such Registration Statement becomes effective; (ii) when any post-effective amendment to such Registration
Statement becomes effective; (iii) the issuance or threatened issuance by the Commission of any stop order (and the Company shall
take all actions required to prevent the entry of such stop order or to remove it if entered); and (iv) any request by the Commission
for any amendment or supplement to such Registration Statement or any prospectus relating thereto or for additional information
or of the occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so that, as thereafter
delivered to the purchasers of the securities covered by such Registration Statement, such prospectus will not contain an untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein not misleading, and promptly make available to the holders of Registrable Securities included in such Registration Statement
any such supplement or amendment; except that before filing with the Commission a Registration Statement or prospectus or any amendment
or supplement thereto, including documents incorporated by reference, the Company shall furnish to the holders of Registrable Securities
included in such Registration Statement and to the legal counsel for any such holders, copies of all such documents proposed to
be filed sufficiently in advance of filing to provide such holders and legal counsel with a reasonable opportunity to review such
documents and comment thereon.

 

3.1.5 Securities
Laws Compliance. The Company shall use its reasonable best efforts to (i) register or qualify the Registrable Securities covered
by the Registration Statement under such securities or “blue sky” laws of such jurisdictions in the United States as
the holders of Registrable Securities included in such Registration Statement (in light of their intended plan of distribution)
may reasonably request and (ii) take such action necessary to cause such Registrable Securities covered by the Registration Statement
to be registered with or approved by such other governmental authorities as may be necessary by virtue of the business and operations
of the Company and do any and all other acts and things that may be necessary or advisable to enable the holders of Registrable
Securities included in such Registration Statement to consummate the disposition of such Registrable Securities in such jurisdictions;
provided, however, that the Company shall not be required to qualify generally to do business in any jurisdiction where it would
not otherwise be required to qualify but for this paragraph or subject itself to taxation in any such jurisdiction.

 

3.1.6 Agreements
for Disposition. The Company shall enter into customary agreements (including, if applicable, an underwriting agreement in
customary form) and take such other actions as are reasonably required in order to expedite or facilitate the disposition of such
Registrable Securities. The representations, warranties and covenants of the Company in any underwriting agreement which are made
to or for the benefit of any Underwriters, to the extent applicable, shall also be made to and for the benefit of the holders of
Registrable Securities included in such registration statement, and the representations, warranties and covenants of the holders
of Registrable Securities included in such registration statement in any underwriting agreement which are made to or for the benefit
of any Underwriters, to the extent applicable, shall also be made to and for the benefit of the Company.

 

    12

     

    

 

3.1.7 Comfort
Letter. The Company shall obtain a “cold comfort” letter from the Company’s independent registered public
accountants in the event of an underwritten offering, in customary form and covering such matters of the type customarily covered
by “cold comfort” letters as the managing Underwriter may reasonably request, and reasonably satisfactory to a majority-in-interest
of the participating holders.

 

3.1.8 Opinions.
On the date the Registrable Securities are delivered for sale pursuant to any Registration, the Company shall obtain an opinion,
dated such date, of one (1) counsel representing the Company for the purposes of such Registration, addressed to the holders, the
placement agent or sales agent, if any, and the Underwriters, if any, covering such legal matters with respect to the Registration
in respect of which such opinion is being given as the holders, placement agent, sales agent, or Underwriter may reasonably request
and as are customarily included in such opinions, and reasonably satisfactory to a majority in interest of the participating holders.

 

3.1.9 Cooperation.
The principal executive officer of the Company, the principal financial officer of the Company, the principal accounting officer
of the Company and all other officers and members of the management of the Company shall cooperate fully in any offering of Registrable
Securities hereunder, which cooperation shall include, without limitation, the preparation of the Registration Statement with respect
to such offering and all other offering materials and related documents, and participation in meetings with Underwriters, attorneys,
accountants and potential investors. If an Underwritten Offering involves Registrable Securities with a total offering price (including
piggyback securities and before deducting underwriting discounts) to exceed $10,000,000, the Company will use its reasonable best
efforts to make available senior executives of the Company to participate in customary “road show” presentations that
may be reasonably requested by the Underwriter in the Underwritten Offering.

 

3.1.10 Records.
Upon execution of confidentiality agreements, the Company shall make available for inspection by the holders of Registrable Securities
included in such Registration Statement, any Underwriter participating in any disposition pursuant to such registration statement
and any attorney, accountant or other professional retained by any holder of Registrable Securities included in such Registration
Statement or any Underwriter, all financial and other records, pertinent corporate documents and properties of the Company, as
shall be necessary to enable them to exercise their due diligence responsibility, and cause the Company’s officers, directors
and employees to supply all information requested by any of them in connection with such Registration Statement.

 

3.1.11 Earnings
Statement. The Company shall comply with all applicable rules and regulations of the Commission and the Securities Act, and
make available to its shareholders, as soon as practicable, an earnings statement covering a period of twelve (12) months, which
earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

 

3.1.12 Listing.
The Company shall use its reasonable best efforts to cause all Registrable Securities included in any Registration Statement to
be listed on such exchanges or otherwise designated for trading in the same manner as similar securities issued by the Company
are then listed or designated.

 

    13

     

    

 

3.2 Obligation
to Suspend Distribution. Upon receipt of any notice from the Company of the happening of any event of the kind described in
Section 3.1.4(iv), or, upon any suspension by the Company, pursuant to a written insider trading compliance program adopted
by the Company Board, of the ability of all “insiders” covered by such program to transact in the Company’s securities
because of the existence of material non-public information, each holder of Registrable Securities included in any registration
shall immediately discontinue disposition of such Registrable Securities pursuant to the Registration Statement covering such Registrable
Securities until such holder receives the supplemented or amended prospectus contemplated by Section 3.1.4(iv) or the restriction
on the ability of “insiders” to transact in the Company’s securities is removed, as applicable, and, if so directed
by the Company, each such holder will deliver to the Company all copies, other than permanent file copies then in such holder’s
possession, of the most recent prospectus covering such Registrable Securities at the time of receipt of such notice.

 

3.3 Registration
Expenses. The Company shall bear all costs and expenses incurred in connection with the Resale Shelf Registration Statement
pursuant to Section 2.1, any Demand Registration pursuant to Section 2.1, any Underwritten Takedown pursuant to Section
2.1.5(a)(i), any Piggy-Back Registration pursuant to Section 2.3, and any registration on Form S-3 effected pursuant
to Section 2.3, and all expenses incurred in performing or complying with its other obligations under this Agreement, whether
or not the Registration Statement becomes effective, including, without limitation: (i) all registration and filing fees; (ii)
fees and expenses of compliance with securities or “blue sky” laws (including fees and disbursements of counsel in
connection with blue sky qualifications of the Registrable Securities); (iii) printing expenses; (iv) the Company’s internal
expenses (including, without limitation, all salaries and expenses of its officers and employees); (v) the fees and expenses incurred
in connection with the listing of the Registrable Securities as required by Section 3.1.10; (vi) Financial Industry Regulatory
Authority fees; (vii) fees and disbursements of counsel for the Company and fees and expenses for independent certified public
accountants retained by the Company; (viii) the fees and expenses of any special experts retained by the Company in connection
with such registration and (ix) the reasonable fees and expenses of one legal counsel selected by the holders of a majority-in-interest
of the Registrable Securities included in such registration not to exceed $25,000. The Company shall have no obligation to pay
any underwriting discounts or selling commissions attributable to the Registrable Securities being sold by the holders thereof,
which underwriting discounts or selling commissions shall be borne by such holders. Additionally, in an Underwritten Offering,
all selling shareholders and the Company shall bear the expenses of the Underwriter’s marketing costs pro rata in proportion
to the respective amount of shares each is selling in such offering.

 

3.4 Information.
The holders of Registrable Securities shall promptly provide such information as may reasonably be requested by the Company, or
the managing Underwriter, if any, in connection with the preparation of any Registration Statement, including amendments and supplements
thereto, in order to effect the registration of any Registrable Securities under the Securities Act and in connection with the
Company’s obligation to comply with Federal and applicable state securities laws.

 

    14

     

    

 

4. INDEMNIFICATION
AND CONTRIBUTION.

 

4.1 Indemnification
by the Company. The Company agrees to indemnify and hold harmless each Investor and each other holder of Registrable Securities,
and each of their respective officers, employees, affiliates, directors, partners, members, attorneys and agents, and each person,
if any, who controls an Investor and each other holder of Registrable Securities (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) (each, an “Investor Indemnified Party”), from and against any
expenses, losses, judgments, claims, damages or liabilities, whether joint or several, arising out of or based upon any untrue
statement (or allegedly untrue statement) of a material fact contained in any Registration Statement under which the sale of such
Registrable Securities was registered under the Securities Act, any preliminary prospectus, final prospectus or summary prospectus
contained in the Registration Statement, or any amendment or supplement to such Registration Statement, or arising out of or based
upon any omission (or alleged omission) to state a material fact required to be stated therein or necessary to make the statements
therein not misleading, or any violation by the Company of the Securities Act or any rule or regulation promulgated thereunder
applicable to the Company and relating to action or inaction required of the Company in connection with any such registration;
and the Company shall promptly reimburse the Investor Indemnified Party for any legal and any other expenses reasonably incurred
by such Investor Indemnified Party in connection with investigating and defending any such expense, loss, judgment, claim, damage,
liability or action; provided, however, that the Company will not be liable in any such case to the extent that any such expense,
loss, claim, damage or liability arises out of or is based upon any untrue statement or allegedly untrue statement or omission
or alleged omission made in such Registration Statement, preliminary prospectus, final prospectus, or summary prospectus, or any
such amendment or supplement, in reliance upon and in conformity with information furnished to the Company, in writing, by such
selling holder expressly for use therein. The Company shall indemnify the Underwriters, their officers, directors and each person
who controls such Underwriters (within the meaning of the Securities Act) to the same extent as provided in the foregoing sentence
with respect to the indemnification of the holders.

 

4.2 Indemnification
by Holders of Registrable Securities. Each selling holder of Registrable Securities will, in the event that any registration
is being effected under the Securities Act pursuant to this Agreement of any Registrable Securities held by such selling holder,
indemnify and hold harmless the Company, each of its directors and officers, and each other selling holder and each other person,
if any, who controls another selling holder within the meaning of the Securities Act, against any losses, claims, judgments, damages
or liabilities, whether joint or several, insofar as such losses, claims, judgments, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or allegedly untrue statement of a material fact contained in any
Registration Statement under which the sale of such Registrable Securities was registered under the Securities Act, any preliminary
prospectus, final prospectus or summary prospectus contained in the Registration Statement, or any amendment or supplement to the
Registration Statement, or arise out of or are based upon any omission or the alleged omission to state a material fact required
to be stated therein or necessary to make the statement therein not misleading, but only to the extent that such untrue statement
or omission was made in reliance upon and in conformity with information furnished in writing to the Company by such selling holder
expressly for use therein, and shall reimburse the Company, its directors and officers, and each other selling holder or controlling
person for any legal or other expenses reasonably incurred by any of them in connection with investigation or defending any such
loss, claim, damage, liability or action. Each selling holder’s indemnification obligations hereunder shall be several and
not joint and shall be limited to the amount of any net proceeds actually received by such selling holder. The selling holders
shall indemnify the Underwriters, their officers, directors and each person who controls such Underwriters (within the meaning
of the Securities Act) to the same extent as provided in the foregoing with respect to the indemnification of the Company.

 

    15

     

    

 

4.3 Conduct
of Indemnification Proceedings. Promptly after receipt by any person of any notice of any loss, claim, damage or liability
or any action in respect of which indemnity may be sought pursuant to Sections 4.1 or 4.2, such person (the “Indemnified
Party”) shall, if a claim in respect thereof is to be made against any other person for indemnification hereunder,
notify such other person (the “Indemnifying Party”) in writing of the loss, claim, judgment, damage,
liability or action; provided, however, that the failure by the Indemnified Party to notify the Indemnifying Party shall not relieve
the Indemnifying Party from any liability which the Indemnifying Party may have to such Indemnified Party hereunder, except and
solely to the extent the Indemnifying Party is actually prejudiced by such failure. If the Indemnified Party is seeking indemnification
with respect to any claim or action brought against the Indemnified Party, then the Indemnifying Party shall be entitled to participate
in such claim or action, and, to the extent that it wishes, jointly with all other Indemnifying Parties, to assume control of the
defense thereof with counsel satisfactory to the Indemnified Party. After notice from the Indemnifying Party to the Indemnified
Party of its election to assume control of the defense of such claim or action, the Indemnifying Party shall not be liable to the
Indemnified Party for any legal or other expenses subsequently incurred by the Indemnified Party in connection with the defense
thereof other than reasonable costs of investigation; provided, however, that in any action in which both the Indemnified Party
and the Indemnifying Party are named as defendants, the Indemnified Party shall have the right to employ separate counsel (but
no more than one such separate counsel, which counsel is reasonably acceptable to the Indemnifying Party) to represent the Indemnified
Party and its controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be
sought by the Indemnified Party against the Indemnifying Party, with the fees and expenses of such counsel to be paid by such Indemnifying
Party if, based upon the written opinion of counsel of such Indemnified Party, representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interests between them. No Indemnifying Party shall, without the prior
written consent of the Indemnified Party, consent to entry of judgment or effect any settlement of any claim or pending or threatened
proceeding in respect of which the Indemnified Party is or could have been a party and indemnity could have been sought hereunder
by such Indemnified Party, unless such judgment or settlement includes an unconditional release of such Indemnified Party from
all liability arising out of such claim or proceeding.

 

4.4 Contribution.

 

4.4.1 If
the indemnification provided for in the foregoing Sections 4.1, 4.2 and 4.3 is unavailable to any Indemnified
Party in respect of any loss, claim, damage, liability or action referred to herein, then each such Indemnifying Party, in lieu
of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of
such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the Indemnified
Parties and the Indemnifying Parties in connection with the actions or omissions which resulted in such loss, claim, damage, liability
or action, as well as any other relevant equitable considerations. The relative fault of any Indemnified Party and any Indemnifying
Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to information supplied by such Indemnified Party or such
Indemnifying Party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

 

    16

     

    

 

4.4.2 The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 4.4.2 were determined
by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred
to in the immediately preceding Section 4.4.1.

 

4.4.3 The
amount paid or payable by an Indemnified Party as a result of any loss, claim, damage, liability or action referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred
by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions
of this Section 4.4, no holder of Registrable Securities shall be required to contribute any amount in excess of the dollar
amount of the net proceeds (after payment of any underwriting fees, discounts, commissions or taxes) actually received by such
holder from the sale of Registrable Securities which gave rise to such contribution obligation. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

 

5. UNDERWRITING
AND DISTRIBUTION.

 

5.1 Rule
144. As long as any holder shall own Registrable Securities, the Company, at all times while it shall be a reporting company
under the Exchange Act, covenants to file timely (or obtain extensions in respect thereof and file within the applicable grace
period) all reports required to be filed by the Company after the date hereof pursuant to Sections 13(a) or 15(d) of the Exchange
Act and to promptly furnish such holders with true and complete copies of all such filings. The Company further covenants that
it shall take such further action as any such holder may reasonably request, all to the extent required from time to time to enable
such holder to sell shares of Common Stock held by such holder without registration under the Securities Act within the limitation
of the exemptions provided by Rule 144 promulgated under the Securities Act (or any successor rule promulgated thereafter by the
Commission), including providing any legal opinions. Upon the request of any holder, the Company shall deliver to such holder a
written certification of a duly authorized officer as to whether it has complied with such requirements.

 

6. LOCK-UP
AGREEMENTS

 

6.1 Investor
Lock-Up. Each Investor agrees that such Investor shall not Transfer any shares of Common Stock or any securities convertible
into or exercisable or exchangeable (directly or indirectly) for Common Stock (whether such shares of Common Stock or any such
securities are held by such Investor as of the date of this Agreement or are thereafter acquired) for one hundred eighty (180)
days following the Closing Date (as such term is defined in the Merger Agreement). The foregoing restriction is expressly agreed
to preclude each Investor during the Lock-up Period 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 such Investor’s shares of Common Stock even
if such shares of Common Stock would be disposed of by someone other than the undersigned. Such prohibited hedging or other transactions
during the Lock-up Period 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 Investor’s shares of Common Stock or with respect
to any security that includes, relates to, or derives any significant part of its value from such shares of Common Stock. The foregoing
notwithstanding, each executive officer and director of the Company shall be permitted to establish a plan to acquire and sell
shares of Common Stock pursuant to Rule 10b5-1 under the Exchange Act; provided, however, no sale of shares under any such plan
shall be made prior to the expiration of the one hundred eighty (180) lock-up period referred to in the first sentence of this
Section 6.1.

 

    17

     

    

 

7. MISCELLANEOUS.

 

7.1 Other
Registration Rights and Arrangements. The Company represents and warrants that no person, other than a holder of the Registrable
Securities has any right to require the Company to register any of the Company’s share capital for sale or to include the
Company’s share capital in any registration filed by the Company for the sale of shares for its own account or for the account
of any other person. Company and the Company Investors hereby terminate the Prior Agreement, which shall be of no further force
and effect and is hereby superseded and replaced in its entirety by this Agreement. The Company shall not hereafter enter into
any agreement with respect to its securities which is inconsistent with or violates the rights granted to the holders of Registrable
Securities in this Agreement and in the event of any conflict between any such agreement or agreements and this Agreement, the
terms of this Agreement shall prevail.

 

7.2 Assignment;
No Third Party Beneficiaries. This Agreement and the rights, duties and obligations of the Company hereunder may not be assigned
or delegated by the Company in whole or in part. This Agreement and the rights, duties and obligations of the holders of Registrable
Securities hereunder may be freely assigned or delegated by such holder of Registrable Securities in conjunction with and to the
extent of any permitted transfer of Registrable Securities by any such holder. This Agreement and the provisions hereof shall be
binding upon and shall inure to the benefit of each of the parties hereto and their respective successors and assigns and the holders
of Registrable Securities and their respective successors and permitted assigns. This Agreement is not intended to confer any rights
or benefits on any persons that are not party hereto other than as expressly set forth in Section 4 and this Section
7.2. The rights of a holder of Registrable Securities under this Agreement may be transferred by such a holder to a transferee
who acquires or holds Registrable Securities; provided, however, that such transferee has executed and delivered to the Company
a properly completed agreement to be bound by the terms of this Agreement substantially in form attached hereto as Exhibit A (an
“Addendum Agreement”), and the transferor shall have delivered to the Company no later than thirty (30)
days following the date of the transfer, written notification of such transfer setting forth the name of the transferor, the name
and address of the transferee, and the number of Registrable Securities so transferred. The execution of an Addendum Agreement
shall constitute a permitted amendment of this Agreement.

 

7.3 Amendments
and Modifications. Upon the written consent of the Company and the Holders of at least a majority in interest of the Registrable
Securities at the time in question, compliance with any of the provisions, covenants and conditions set forth in this Agreement
may be waived, or any of such provisions, covenants or conditions may be amended or modified; provided, however, that notwithstanding
the foregoing, any amendment hereto or waiver hereof that adversely affects one Holder, solely in his, her or its capacity as a
holder of the shares of capital stock of the Company, in a manner that is materially different from the other Holders (in such
capacity) shall require the consent of the Holder so affected. Without limiting the generality of the foregoing, clause “(ii)
of the definition of “Registrable Securities, Section 2.1.5(c)(ii), Section 2.2.1(i), Section 2.2.1(c), Section 6.1 and Section
7.4 shall only be waived, amended and modified by the Company Investors who hold a majority in interest of the Registrable Securities
held by all Company Investors at the time in question. No course of dealing between any Holder or the Company and any other party
hereto or any failure or delay on the part of a Holder or the Company in exercising any rights or remedies under this Agreement
shall operate as a waiver of any rights or remedies of any Holder or the Company. No single or partial exercise of any rights or
remedies under this Agreement by a party shall operate as a waiver or preclude the exercise of any other rights or remedies hereunder
or thereunder by such party.

 

    18

     

    

 

7.4 Term.
This Agreement shall terminate upon the earlier of (i) the tenth anniversary of the date of this Agreement or (ii) the date as
of which (A) all of the Registrable Securities have been sold pursuant to a Registration Statement (but in no event prior to the
applicable period referred to in Section 4(a)(3) of the Securities Act and Rule 174 thereunder (or any successor rule promulgated
thereafter by the Commission)) or (B) the Holders of all Registrable Securities are permitted to sell the Registrable Securities
under Rule 144 (or any similar provision) under the Securities Act without limitation on the amount of securities sold or the manner
of sale; provided further that with respect to any Investor, such Investor will have no rights under this Agreement and all obligations
of the Company to such Investor under this Agreement shall terminate upon the earlier of (x) the date such Investor ceases to hold
at least 1% of the Registrable Securities or (y) if such Investor is an individual and such Investor is a director or an executive
officer of Gemini or the Company as of immediately prior to the consummation of the Merger, the date when such Investor is permitted
to sell the Registrable Securities under Rule 144 (or any similar provision) under the Securities Act without limitation on the
amount of securities sold or the manner of sale; provided, however, that the provisions of Section 4, Section 5.1 and Section 6.1
shall survive such termination.

 

7.5 Notices.
All notices, demands, requests, consents, approvals or other communications (collectively, “Notices”)
required or permitted to be given hereunder or which are given with respect to this Agreement shall be in writing and shall be
personally served, delivered by reputable air courier service with charges prepaid, or transmitted by facsimile or email, addressed
as set forth below, or to such other address as such party shall have specified most recently by written notice. Notice shall be
deemed given (i) on the date of service or transmission if personally served or transmitted by telegram, telex or facsimile; provided,
that if such service or transmission is not on a Business Day or is after normal business hours, then such notice shall be deemed
given on the next Business Day (ii) one Business Day after being deposited with a reputable courier service with an order for next-day
delivery, to the parties as follows:

 

If to Gemini:

 

Gemini Therapeutics, Inc.

300 One Kendall Square, 3rd Floor

Cambridge, MA 02139

Attn:  Jason Meyenburg

Email: JMeyenburg@geminitherapeutics.com

 

    19

     

    

 

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

 

Goodwin Procter LLP

100 Northern Avenue

Boston, MA 02210

		Attn:	Mitchell S. Bloom

Jocelyn M. Arel

Daniel J. Espinoza

		Email:	mbloom@goodwinlaw.com

jarel@goodwinlaw.com

despinoza@goodwinlaw.com

 

If to the Company:

 

FS Development Corp.

600 Montgomery Street, Suite 4500

San Francisco, California 94111

Attn: Dennis Ryan

e-mail: docs-Investments@foresitecapital.com

 

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

 

White & Case LLP

1221 Avenue of the Americas

New York, New York 10020

Attention: Joel L. Rubinstein, Esq.

e-mail: joel.rubinstein@whitecase.com

 

If to an Investor,
to the address set forth under such Investor’s signature to this Agreement or to such Investor’s address as found in
the Company’s books and records.

 

7.6 Severability.
This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect
the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision
as similar in terms to such invalid or unenforceable provision as may be possible that is valid and enforceable.

 

7.7 Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which taken together
shall constitute one and the same instrument.

 

7.8 Entire
Agreement. This Agreement (including all agreements entered into pursuant hereto and all certificates and instruments delivered
pursuant hereto and thereto) constitute the entire agreement of the parties with respect to the subject matter hereof and supersede
all prior and contemporaneous agreements, representations, understandings, negotiations and discussions between the parties, whether
oral or written, including without limitation the Prior Agreement.

 

[Signature Page Follows]

 

    20

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Registration Rights Agreement to be executed and delivered by their duly authorized representatives
as of the date first written above.

 

	
         

         
	
        FS DEVELOPMENT CORP.,

        a Delaware Corporation

	 	 	 
	 	By:	/s/ Jim Tananbaum
	 	Name: 	Jim Tananbaum
	 	Title:	Chief Executive Officer

 

     

     

    

 

IN WITNESS WHEREOF, the
parties have caused this Registration Rights Agreement to be executed and delivered by their duly authorized representatives as
of the date first written above.

 

	 	FS DEVELOPMENT HOLDINGS, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Dennis D. Ryan
	 	Name: 	Dennis D. Ryan
	 	Title:	Chief Financial Officer

 

     

     

    

 

IN WITNESS WHEREOF, the
parties have caused this Registration Rights Agreement to be executed and delivered by their duly authorized representatives as
of the date first written above.

 

	 	GEMINI THERAPEUTICS, INC.
	 	a Delaware corporation f/k/a FS Development Corp.
	 	 	 
	 	By:	/s/ Jason Meyenburg
	 	Name:  	Jason Meyenburg
	 	Title:	Chief Financial Officer

     

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Registration Rights Agreement to be executed and delivered by their duly authorized representatives
as of the date first written above.

 

	 	By:	/s/ Robert Carey
	 	Name:	Robert Carey
	 	 	 
	 	By:	/s/ Daniel Dubin
	 	Name: 	Daniel Dubin
	 	 	 
	 	By:	/s/ Deepa Pakianathan
	 	Name:	Deepa Pakianathan

 

     

     

    

 

	 	LIGHTSTONE VENTURES, L.P.
	 	 
	 	By: LSV Associates, L.L.C.,
	 	its general partner
	 	 	 
	 	By:	/s/ Jean M. George
	 	Name: 	Jean M. George
	 	Title:	Managing Director
	 	 
	 	LIGHTSTONE VENTURES (A), L.P.
	 	 
	 	By: LSV Associates, L.L.C.,
	 	its general partner
	 	 	 
	 	By:	/s/ Jean M. George
	 	Name:	Jean M. George
	 	Title:	Managing Director
	 	 	 
	 	LIGHTSTONE SINGAPORE, L.P.
	 	 
	 	By: LSV Associates, L.L.C.,
	 	its general partner
	 	 	 
	 	By:	/s/ Jean M. George
	 	Name:	Jean M. George
	 	Title:	Managing Director

 

     

     

    

 

	 	ORBIMED PRIVATE INVESTMENTS VI, L.P.
	 	 
	 	By: OrbiMed Capital GP VI LLC,
	 	its General Partner
	 	 
	 	By: OrbiMed Advisors LLC,
	 	its Managing Partner
	 	 	 
	 	By:	/s/ Carl Gordon
	 	Name: 	Carl Gordon
	 	Title:	Member
	 	 	 
	 	ATLAS VENTURE FUND X, L.P.
	 	 
	 	By: Atlas Venture Associates X, L.P.
	 	its General Partner
	 	 
	 	By: Atlas Venture Associates X, LLC
	 	its General Partner
	 	 	 
	 	By:	/s/ Ommer Chohan
	 	Name:	Ommer Chohan
	 	Title:	Chief Financial Officer
	 	 	 
	 	WU CAPITAL INVESTMENT LLC
	 	 
	 	By: Wu Capital Investment LLC
	 	Its: Director
	 	 	 
	 	By:	/s/ Yajun Wu
	 	Name:	Yajun Wu
	 	Title:	Director

 

     

     

    

 

	 	ATLAS VENTURE OPPORTUNITY FUND I, L.P. 
	 	Atlas Venture Opportunity Fund I, L.P.
	 	 	 
	 	By:	/s/ Ommer Chohan
	 	Name: 	Ommer Chohan
	 	Title:	Chief Financial Officer

  

     

     

    

 

EXHIBIT A

 

Addendum Agreement

 

This Addendum Agreement
(“Addendum Agreement”) is executed on __________________, 20___, by the undersigned (the “New Holder”)
pursuant to the terms of that certain Registration Rights Agreement dated as of February 5, 2021 (the “Agreement”),
by and among the Company and the Investors identified therein, as such Agreement may be amended, supplemented or otherwise modified
from time to time. Capitalized terms used but not defined in this Addendum Agreement shall have the respective meanings ascribed
to such terms in the Agreement. By the execution of this Addendum Agreement, the New Holder agrees as follows:

 

1. Acknowledgment.
New Holder acknowledges that New Holder is acquiring certain shares of common stock of the Company (the “Shares”)
as a transferee of such Shares from a party in such party’s capacity as a holder of Registrable Securities under the Agreement,
and after such transfer, New Holder shall be considered an “Investor” and a holder of Registrable Securities for all
purposes under the Agreement.

 

2. Agreement.
New Holder hereby (a) agrees that the Shares shall be bound by and subject to the terms of the Agreement and (b) adopts the Agreement
with the same force and effect as if the New Holder were originally a party thereto.

 

3. Notice.
Any notice required or permitted by the Agreement shall be given to New Holder at the address or facsimile number listed below
New Holder’s signature below.

 

	NEW HOLDER:	 	ACCEPTED AND AGREED:
	 	 	 
	Print Name:	 	 	FS DEVELOPMENT CORP.
	 	 	 	 

  

	By:	 	 	By:	 

 

     

     

    

 

SCHEDULE I

 

Company Investors

 

FS Development Holdings, LLC

 

Robert Carey

 

Daniel Dubin

 

Deepa Pakianathan

 

Gemini Investors

 

Atlas Venture Fund
X, L.P.

 

Lightstone Singapore
L.P.

 

Lightstone Ventures
(A), L.P.

 

Lightstone Ventures,
L.P.

 

OrbiMed Private Investments
VI, LP

 

Wu Capital Investment
LLC

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00320-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00320-of-00352.parquet"}]]