Document:

EXHIBIT 10.1

 

JOINT VENTURE AGREEMENT

 

JOINT VENTURE AGREEMENT, dated
as of January 10, 2022 (this “Agreement”), by and between Aerkomm Inc.,
a Nevada corporation (“Aerkomm”), and SAKAI DISPLAY PRODUCTS CORPORATION, a company incorporated under the laws
of Japan (“SDPJ”), and PANELSEMI CORPORATION, a company incorporated under the laws of Taiwan (“PanelSemi”).
Each of Aerkomm and SDPJ and PanelSemi is referred to herein individually as a “Party” and, collectively, as the “Parties.”

 

RECITALS

 

A. Aerkomm
is a provider of inflight entertainment and connectivity, or IFEC, solutions for the commercial airlines industry. Aerkomm operates through
a number of subsidiaries, including through its wholly owned operating subsidiary, Aircom Pacific, Inc. (“Aircom”).

 

B. Aerkomm’s
subsidiaries, Aircom Pacific, Inc. (CA) and Aircom Telecom LLC (Taiwan) own IP, know-how and other research and development results (the
“Tile Antenna Design IP”) related to the Aerkomm tile antenna (the “Tile Antenna”) in development,
which includes Antenna design, LNA design, PA design, Phase Shifter design, Polarization Switch design and Up/Down converter design.

 

C. The
Parties now desire to establish a joint venture (the “Joint Venture”) for the purpose (the “Business Purpose”)
of developing and commercializing the Tile Antenna Design IP. The Joint Venture will be operated through a to-be-established California
corporation (“Newco”) which will be owned initially 100% by SDPJ and, following acceptance of the POC (defined below)
by SDPJ and completion of the Capital Contribution (defined below) by SDPJ and PanelSemi, 52% by Aerkomm, 45% by SDPJ and 3% by PanelSemi.

 

D. This
Agreement sets out the terms of the Joint Venture which is established through this Agreement and the formation of Newco.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
mutual promises contained in this Agreement, the Parties agree that the foregoing Recitals are incorporated by reference into this Agreement
and the Parties otherwise agree as follows:

 

1. Business
of Newco. The Parties have entered into this Agreement for the purposes of facilitating the Joint Venture. The Joint Venture
will operate globally (the “Territory”). Each Party will commit certain of its respective corporate resources to the
Joint Venture. The Joint Venture will only undertake the development and commercialization of the Tile Antenna Design IP and shall not
undertake any other operations without the written consent of Aerkomm and SDPJ.

 

     

     

    

 

2. Structure
and Business of Newco.

 

(a) Formation
of Newco. As soon as practicable following the date hereof, Aerkomm shall form Newco as a California corporation. Initially, SDPJ
will own 100% of the to-be-issued and outstanding, voting capital stock (the “Newco Stock”) of Newco.

 

(b) Business
Conducted through Newco. The Business Purpose of the Joint Venture will be conducted exclusively through Newco. Upon the formation
of Newco, Aerkomm will contribute to Newco the Tile Antenna Design IP.

 

(c) Headquarters.
The headquarters of Newco will be based at the business address of Aerkomm at 44043 Fremont Boulevard, Fremont, California 94538-6045.

 

3. Tile
Antenna Development Stage.

 

(a) Licensing
of Tile Antenna Design IP to Newco. Upon the establishment of Newco, Aerkomm will license (the “Tile Antenna Design IP License”)
the Tile Antenna Design IP, as set forth in Appendix A, to Newco on a worldwide, royalty free basis.

 

(b) Tile
Antenna Development Funding. Following the signing of this Agreement, SDPJ will provide to Newco up to U.S. $20 million in funding
for the development by Newco of the Tile Antenna POC. Funds provided by SDPJ will only be used by Newco for Newco operational expenses
including, research and development, equipment purchases, staffing and general working capital purposes specifically for the purpose of
POC only, and will be carried on the accounts of Newco as “Equity Investments”. None of these funds will be used for any Aerkomm
purposes outside of the context of Newco and, prior to the achievement of the POC (as described below), all these funds will need to be
explicitly approved by SDPJ. It is the responsibility of Aerkomm to contribute the Joint Venture by offering a list of personnel possessing
the required Tile Antenna Design IP in order to achieve the stated business purpose. The list of initial personnel of Newco is set forth
in Appendix B, which is to be reviewed and the actual employment will need to be approved by SDPJ.

 

(c) Tile
Antenna Proof of Concept. During this development stage, Newco will develop a Tile Antenna proof of concept (“POC”)
and present the POC for approval. The POC Antenna Test Specification is as described in Appendix C.

 

4. Post-Proof
of Concept Stage; Rejection of the POC.

 

(a) 

 

(i) Approval
of POC; Post-POC Approval Actions. Promptly following the approval of POC by any potential customer (the “Initial Customer”)
or laboratory (the “Laboratory”) which both must be approved by SDPJ, the following actions will be taken:

 

(A) SDPJ
will purchase from Aerkomm 1,250,000 shares (relative to the outstanding shares of 9,399,272) of Aerkomm restricted common stock at a
price per share of Euro 6.00 for an aggregate purchase price of Euro 7.5 million;

 

(B) The
net amount, if any, equal to U.S. $20 million minus all funds previously contributed by SDPJ to Newco pursuant to 3(b) above, shall be
contributed by SDPJ and PanelSemi (in such proportion as to render PanelSemi the intended ownership percentage as set forth in (b) below),
in cash to Newco as an additional capital investment.

 

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(C) The
Tile Antenna Design IP License will be converted to a contribution and assignment of the Tile Antenna Design IP to Newco such the Newco
will be the 100% owner of the Tile Antenna Design IP. In exchange for the contribution of the Tile Antenna Design IP, Newco shall issue
to Aerkomm shares of Newco’s common stock representing 52% of Newco’s equity on a fully diluted basis (assuming that all $20,000,000
as described in subparagraph (B) above has all been contributed).

 

(ii) Rejection
of the POC.

 

(A) If
the POC is not approved by an Initial Customer or the Laboratory within eleven (11) months from the execution date of this agreement,
unless the time period is extended by mutual agreement of Aerkomm and SDPJ (the “POC Approval Cutoff Date”), the Tile Antenna
Design IP License will terminate, all rights and title to the Tile Antenna Design IP will revert to Aerkomm, with the exception of provision
(B) below, and Newco will remain 100% owned by SDPJ.

 

(B) Any
other Tile Antenna Design IP developed by the Newco during the Joint Venture period, including all of its associated and related technologies
IP and know-how, shall be the joint property of the Newco and Aerkomm.

 

(C) Upon
termination of the Tile Antenna Design IP License as the result of the POC not being approved, each of Newco, SDPJ and PanelSemi (i) shall
immediately cease to use the Tile Antenna Design IP and shall return to Aerkomm, or destroy at Aerkomm’s request, all documentation,
source codes, data, records, notes and all other written materials (including digital copies) containing the Tile Antenna Design IP. Newco
shall terminate employment with all persons contributed by Aerkomm listed in Appendix B, and such persons shall be re-employed by Aerkomm
and/or its affiliates. All the associated costs will be paid for by Aerkomm.

 

(b) Capital
Contributions and Newco Stock. Following approval of the POC and completion of the SDPJ and PanelSemi contribution of U.S. $20,000,000
to Newco as described in Section 4(a)(ii) above (the “Capital Contribution”), Newco will issue a number of shares of
Newco Stock (i) to Aerkomm such that Aerkomm will own 52% of the outstanding Newco stock and (ii) to PanelSemi such that PanelSemi will
own 3% of the outstanding Newco stock. Following these Newco Stock issuances, Aerkomm will own 52% of the outstanding Newco Stock, SDPJ
will own 45% of the outstanding Newco Stock and PanelSemi will own 3% of the outstanding Newco Stock. All dividends or other distributions
of profits or assets of Newco, upon approval by the Board of the Newco, shall be made to the Stockholders (as defined below) of Newco
based upon their proportionate ownership of Newco Stock. Newco will endeavor to have its voting capital listed on a national securities
exchange in the United States.

 

For purposes of clarification,
an investment of US $20,000,000 for 48% of the Newco Stock results in a Newco valuation, post Capital Contribution of $41,666,666. Assuming
Newco issues 416,666,666 shares of its capital stock to the Parties, each share will have an initial value of $0.10.

 

Following completion of the Capital Contribution,
Newco shall issue to PanelSemi warrants (the “Warrants”) exercisable for a number of shares of Newco Stock equal to
five percent (5%) of the number of shares of Newco Stock outstanding following completion of the Capital Contribution. The Warrants will
be exercisable for a period of five years 12 months after the initial public offering of Newco’s common stock or from the earlier
of the date that Newco achieves cumulative revenues greater than U.S. $150 million or the date that Newco’s cumulative net income
is in excess of U.S $25 million. The Warrants shall be exercisable at a price of $0.10 per share (assuming that Newco issued 416,666,666
shares to the Parties as set forth in the preceding paragraph).

 

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Newco shall establish an equity incentive plan and reserve a number
of shares of Newco Stock in an amount up to 20% of the total number of Newco Shares outstanding. The specific terms of this equity incentive
plan will be determined by the Board following Newco’s establishment.

 

(c) Board
of Directors.

 

(i) Board
Designees. Upon the initial setup of the Newco where SDPJ owns 100% of the Newco, SDPJ shall have the rights to nominate all the board
members. Following the achievement of the POC, Each of Aerkomm, SDPJ and PanelSemi shall vote all Newco Stock owned or held of record
by it, or as to which it may exercise voting rights, at each annual or special meeting of the stockholders of Newco (the “Stockholders”)
at which directors of Newco are to be elected, in favor of, or take all actions by written consent in lieu of any such meeting as are
necessary to cause the number of directors on the board of directors of Newco or similar governing body (the “Board”)
to consist of three (3) or five (5) persons, as the parties may decide. If the Board shall consist of three members, one member shall
be designated by Aerkomm, one member by SDPJ and one member shall be mutually selected by Aerkomm and SDPJ. If the Board shall consist
of five members, two members shall be designated by Aerkomm, two members by SDPJ and one member shall be mutually selected by Aerkomm
and SDPJ. SDPJ shall have the right to designate the Chairman of the Board.

 

(ii) Successor
Designee. If a designee of Aerkomm or SDPJ ceases to serve as a director of Newco for any reason, Aerkomm or SDPJ, as the case may
be, shall have the right to appoint a successor designee and shall use commercially reasonable efforts to do so within sixty (60) days
of the date such vacancy is created.

 

(iii) Chief
Executive Officer. Prior to the termination of the Tile Antenna Design IP License, Jeffrey Wun shall be the first Chief Executive
Officer of Newco however, the board of SDPJ shall retain the authority of appointing and removing the CEO of the Newco.

 

(d) Prohibitions
on Assignment of Newco Stock. 

 

(i) General
Restriction. No Party shall make any transfer, gift, assignment, sale, pledge, encumbrance or other disposition (each a “Disposition”)
of Newco Stock, except for Dispositions to Permitted Transferees (as defined below), unless the Party first obtains the written consent
of the Board. The Parties agree that any proposed Disposition or offer of Disposition contrary to the provisions of this Section 4 would
result in irreparable harm to Newco and the other Stockholders, and that Newco and the other Stockholders shall each accordingly be entitled
to injunctive relief in any court or other forum of competent jurisdiction for the purpose of restraining or rescinding such Disposition
or offer of Disposition. This remedy shall be in addition to and not exclusive of any other remedy available to Newco or the other Stockholders
at law or in equity or pursuant to any other provision of this Agreement. For the avoidance of doubt, the Board may condition its consent
to any Disposition on such additional agreements as it may require in its sole discretion.

 

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(ii) Dispositions
to Permitted Transferees. A Party shall be entitled to Dispose of all or any part of such Party’s Newco Stock (whether now owned
or hereafter acquired) to the following persons or entities (each, a “Permitted Transferee”) without first obtaining
the written consent of the Board, if the transferee agrees in writing to be bound by the provisions of this Agreement and the transfer
to such Permitted Transferee will not adversely affect the tax consequences for any Stockholder or for Newco, as determined in the reasonable
judgment of the Board: (A) the spouse, immediate family and lineal descendants of such Stockholder and any spouse thereof, if applicable
(B) a trust for the benefit of any of the foregoing, if applicable (C) a partnership or other entity all of the owners of which are included
within the foregoing, (D) in the case of an Stockholder which is not an individual, to one or more of its subsidiaries in which it owns
more than 50% of the outstanding voting equity interests or to a person succeeding it by merger, consolidation or the purchase of substantially
all of its assets, or to a person owning more than 50% of the outstanding voting equity interests in it, or € to any other existing
Stockholder. In the case of clause (D) above, such transferred Newco Stock will be reacquired from such subsidiary by the parent before
any Disposition is made by such parent of any shares of such subsidiary which would result in ownership by such parent of 50% or less
of the outstanding voting equity interests of such subsidiary.

 

(e) Books
and Records; Fiscal Year; Annual Report.

 

(i) Books
and Records. Accurate and complete books and records of Newco shall be kept by, or under the direction of, the Board and shall be
available and open to inspection and examination by any Stockholder.

 

(ii) Tax
Returns. The Board, at the expense of Newco, shall cause to be prepared and delivered to the Stockholders, in a timely fashion after
the end of each fiscal year, copies of all income tax returns for Newco for such fiscal year, one copy of which shall be timely filed
with the appropriate tax authorities.

 

(iii) Fiscal
Year. The fiscal year of Newco for financial, accounting, and income tax purposes shall initially be the calendar year and may be
changed at any time by the Board.

 

(iv) Annual
Report. As soon as practicable after the close of each fiscal year, Newco shall furnish to each Stockholder an annual report showing
a full and complete account of the condition of Newco, including all information as will be necessary for the preparation of each Stockholder’s
income or other tax returns.

 

(v) Other
Information. At the request of Aerkomm or SDPJ, Newco shall prepare such other reports, documents and records and provide such other
information as either Party may request in order that such Party may comply with applicable law, including the Securities Act of 1933,
as amended, the Securities Exchange Act of 1934, as amended, and any other U.S. or foreign laws, including other applicable U.S. and foreign
securities laws.

 

(f) Protective
Provisions. Until either Aerkomm or SDPJ owns less than 10% of the outstanding Newco Stock, the following actions shall
require the unanimous consent of the Board:

 

(i) The
voluntary liquidation or dissolution of Newco or a or the winding-up of its business;

 

(ii) Any
amendment to the charter or other constituent instruments of Newco that materially and adversely affects the rights of either of the Parties
under this Agreement;

 

(iii) The
merger or consolidation of Newco with any entity or the sale of all or substantially all the assets of Newco; or

 

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(iv) Any
transaction between Newco, any of the Stockholders, any officer or any director of Newco or any affiliate of any of the foregoing and
Newco that is not effected on an on an arms-length basis.

 

(g) Covenants

 

(i) Aircom
and Aircom Telecom LLC (Taiwan) shall be prohibited from competing with Newco and the Aerkomm group of companies shall not have the right
to sell tile antenna developed from the Tile Antenna Design IP unless any such tile antenna are purchased from Newco.

 

(ii) If
Newco has additional capital needs in the future, it can raise funds from external sources, but the original shareholders shall have the
right of first refusal with respect to any future capital raises.

 

5. Representations
and Warranties.

 

(a) Representations
and Warranties of Aerkomm. Aerkomm hereby represents and warrants to SDPJ as follows:

 

(i) Authorization.
Aerkomm has full corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement
constitutes the valid and legally binding obligation of Aerkomm enforceable in accordance with its terms and conditions except (a) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application
relating to or affecting the enforcement of creditors’ rights generally, or (b) as limited by laws relating to the availability
of specific performance, injunctive relief, or other equitable remedies.

 

(ii) Noncontravention.
Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will conflict
with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate,
modify or cancel, or require any notice under Aerkomm’s articles of incorporation, bylaws or other constituent instruments or under
any agreement, contract, lease, license, instrument or other arrangement to which Aerkomm is a party or by which it is bound or to which
any of its assets is subject.

 

(iii) Due
Organization and Good Standing. Aerkomm is a corporation duly organized, validly existing and in good standing under the laws of the
State of Nevada and has all limited liability company power and authority required (a) to carry on its business as presently conducted
and as presently proposed to be conducted and (b) to execute, deliver and perform its obligations under the this Agreement.

 

(b) Representations
and Warranties SDPJ and PanelSemi. Each of SDPJ and PanelSemi hereby represents and warrants to Aerkomm as follows:

 

(i) Authorization.
Each of SDPJ and PanelSemi has full corporate power and authority to execute and deliver this Agreement and to perform its obligations
hereunder. This Agreement constitutes the valid and legally binding obligation of each of SDPJ and PanelSemi enforceable in accordance
with its terms and conditions except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance,
or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, or (b) as limited
by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

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(ii) Noncontravention.
Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will conflict
with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate,
modify or cancel, or require any notice under SDPJ’s or PanelSemi’s charter, bylaws or other constituent instruments or under
any agreement, contract, lease, license, instrument or other arrangement to which SDPJ or PanelSemi, as the case may be, is a party or
by which it is bound or to which any of its assets is subject.

 

(iii) Due
Organization and Good Standing. SDPJ is a company duly organized, validly existing and in good standing under the laws of the Japan
and PanelSemi as company duly organized, validly existing and in good standing under the laws of Taiwan. Each of these Parties has all
corporate power and corporate authority required (a) to carry on its business as presently conducted and as presently proposed to be conducted
and (b) to execute, deliver and perform its obligations under this Agreement.

 

6. Indemnification.

 

(a) Each
Party shall indemnify, defend and hold the other Party harmless from and against any and all suits, claims, losses, damages, final judgments,
reasonable costs and expenses (including, without limitation, reasonable attorney’s fees and court costs) actually incurred (collectively,
“Adverse Consequences”), relating to, in connection with, or arising out of, a breach by such Party of the representations
and warranties made by such Party in this Agreement or as the result of the breach of any covenant or agreement of such Party contained
herein.

 

(b) The
indemnification, defense obligation and hold harmless set forth in this Section 8 shall only be available if the Party seeking indemnification
(1) promptly notifies the other Party in writing of any such Adverse Consequences, (2) allows the other Party to have sole control of
the defense and all related settlement negotiations; and (3) provides the other Party with the information, authority and assistance necessary
to perform its obligations under this Section 10.

 

7. Limitation
of Liability. IN NO EVENT SHALL ANY PARTY BE LIABLE TO ANY OTHER PARTY FOR
ANY INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES BASED ON ANY THEORY OF CONTRACT, TORT, STRICT LIABILITY, NEGLIGENCE OR OTHERWISE,
EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

8. Confidentiality.
Each Party acknowledges that, during the term of this Agreement, each Party may provide the other Parties with confidential and/or
proprietary information, including but not limited to marketing and promotional strategies, data, information, ideas, materials, specifications,
procedures, schedules, software, technical processes and formulas, source code, product designs, sales, cost and other unpublished financial
information, product and business plans, advertising revenues, usage rates, advertising relationships, projections, marketing data or
other relevant information that is marked “confidential” (or similarly) or, if not so marked, is clearly intended to be confidential
(collectively, “Confidential Information”). Each Party shall protect all such Confidential Information of the other
Parties with at least the same degree of care it uses to protect its own confidential information, but not less than a reasonable degree
of care. None of the Parties shall use, disclose, provide, or permit any person to obtain any such Confidential Information in any form,
except for employees, agents, or independent contractors whose access is required to carry out the purposes of this Agreement and who
have agreed to be subject to the same restrictions as set forth herein. Each Party acknowledges that the unauthorized use or disclosure
of the other Parties’ Confidential Information would cause irreparable harm and significant injury that may be difficult to compensate.
Accordingly, each Party agrees that the other Parties will have the right to seek and obtain temporary and permanent injunctive relief
in addition to any other rights and remedies it may have. The confidentiality obligations of this Section shall not apply to any information
received by a Party that (a) is generally available to or previously known to the public, (b) was known to such Party, without violation
of a nondisclosure obligation, prior to disclosure by the other Party , (c) is independently developed by such Party outside the scope
of this Agreement without unauthorized use of or reference to the other Party’s Confidential Information, or (d) is lawfully disclosed
pursuant to a court order, provided that the Party subject to such order shall promptly notify the Party whose Confidential Information
is to be disclosed, so such Party may seek a protective or similar order. Notwithstanding the foregoing each Party may disclose the terms
and conditions of this Agreement; (i) as required by the rules and regulations of any national securities exchange, NASDAQ, or other market
on which its securities are listed or qualified, the Securities and Exchange Commission or other applicable governmental or regulatory
body and (ii) in confidence, in connection with an actual or proposed merger, acquisition, or similar transaction.

 

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9. Term
and Termination. This Agreement shall commence on execution and remain in
effect until the earlier of (i) the POC Approval Cutoff Date if the POC is not accepted by such date and (ii) the date that either Aerkomm
or SDPJ no longer owns any Newco Stock, unless otherwise earlier terminated upon the agreement of the Parties, except that Section 4(h)
of this Agreement shall survive early termination of this Agreement pursuant to (i) above.

 

10. Miscellaneous.

 

(a) Entire
Agreement. This Agreement shall constitute the entire agreement among the Parties and shall supersede any other existing agreements
between them, whether oral or written, with respect to the subject matter hereof. There are no oral understandings or undertakings of
any kind with respect hereto not expressly set forth and contained herein. No agent of any Party shall have any authority to change or
modify any of the terms of this Agreement and no amendment of this Agreement shall be of any effect unless in writing and signed by a
duly authorized officer of each Party.

 

(b) Mediation;
Arbitration and Governing Law. In the event of a dispute between any of the Parties arising under or relating in any way whatsoever
to this Agreement, the disputing Parties shall attempt to resolve it through good faith negotiation. If the dispute is not resolved through
such negotiation, then the disputing Parties shall attempt to resolve it through mediation in the State of California, USA, with a neutral,
third-party mediator mutually agreed upon by the disputing Parties. Unless otherwise agreed by the disputing Parties, the costs of mediation
shall be shared equally. If the dispute is not resolved through mediation, then upon written demand by one of the disputing Parties it
shall be referred to a mutually agreeable arbitrator. The arbitration process shall be conducted in accordance with the laws of the United
States of America and the State of California, except as modified herein. Venue for the arbitration hearing shall be the State of California,
USA. All remedies, legal and equitable, available in court shall also be available in arbitration. The arbitrator’s decision shall
be final and binding, and judgment may be entered thereon in a court of competent jurisdiction. This Agreement shall be interpreted and
enforced in accordance with the laws of the United States of America and the State of California, without regard to conflict of law principles
thereof. In any dispute arising out of or relating in way whatsoever to this Agreement, including arbitration, the substantially prevailing
Party shall be entitled to recover its costs and attorney fees from the other disputing Parties.

 

(c) Expenses.
Except as otherwise provided herein, or as may hereafter be established by an agreement in writing executed by the parties hereto, all
expenses incurred by each Party in performing its obligations hereunder shall be borne by the Party incurring the expense; except that
in the event of a breach of this Agreement by a Party, the prevailing Party shall be entitled to all costs of collection and enforcing
its rights hereunder, including reasonable attorneys’ fees and court costs.

 

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(d) Restrictions
of Transfer. No Party may assign its rights, duties or obligations under this Agreement to any person or entity, in whole or in part,
whether by assignment, sublicense, operation of law or otherwise, without the prior written consent of the other parties, provided any
Party may assign this Agreement without the other Party’s consent upon the sale of its business or all or substantially all of its
assets.

 

(e) Notice.
All notices hereunder shall be in writing. All such notices may be given personally, by certified or registered mail, by overnight courier
using a delivery receipt of record or by facsimile transmission. All such notices shall be deemed to be received as follows: (i) if delivered
personally, when received; (ii) if mailed, three (3) days after being mailed; (iii) if sent by overnight courier, when signed for (iv)
if sent by facsimile, on the first business day in which a complete and legible transmission had been received prior to 5:00 p.m. at the
recipient’s time zone, or (v) by e-mail, if confirmed within two (2) business days by one of the preceding methods. Notices shall be sent
to the parties at the addresses listed above or to such other address as one Party may, from time to time, designate by notice to the
other Party.

 

(f) Severability.
If any provision of this Agreement is determined to be invalid or unenforceable under any applicable statute or rule of law, such provision
shall be reformed to the minimum extent necessary to cause such provision to be valid and enforceable, provided the reformed provision
shall not have a material adverse effect on the substantive rights of either Party. If no such reformation is possible, then such provision
shall be deemed omitted, and the balance of the Agreement shall remain valid and enforceable, unaffected by such provision.

 

(g) Waiver.
No waiver of any provision of this Agreement shall be binding unless executed in writing by the Party making the waiver. No waiver of
any of the provisions of this Agreement shall be deemed a waiver of such provision on any other occasion, nor the waiver of any other
provision, whether or not similar. No delay in the enforcement of any provision of this Agreement shall constitute a waiver of the right
to enforce such provision in that or any other instance.

 

(h) Counterparts;
Facsimile Execution. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including
pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method
and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

(i) Headings.
The section headings used herein are for reference and convenience only and shall not enter into the interpretation hereof.

 

(j) Survival.
All provisions of this Agreement relating to confidentiality, limitations of liability and indemnification shall survive the termination
or non-renewal of this Agreement.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, the Parties have executed
this Agreement as of the date first set forth above.

 

	 	Aerkomm Inc.
	 	 	 
	 	By:	/s/
    Louis Giordimaina
	 	Name:	Louis Giordimaina
	 	Title:	Chief Executive Officer
	 	 	 
	 	Address: 	44043 Fremont Blvd.,
	 	 	Fremont, CA 94538
	 	 	U.S.A.
	 	 	 
	 	SAKAI DISPLAY PRODUCTS CORPORATION
	 	 	 
	 	By:	/s/
    Leroy Yau
	 	Name: 	Leroy Yau
	 	Title: 	Chairman
	 	 	 
	 	Address: 	1 Takumi-cho,
	 	 	Sakai-ku, Sakai-shi
	 	 	Osaka 590-8522
	 	 	Japan
	 	 	 
	 	PANELSEMI CORPORATION
	 	 	 
	 	By:	/s/ Ting
    Chin-Lung
	 	Name: 	Ting Chin-Lung
	 	Title: 	Chairman
	 	 	 
	 	Address: 	15 F., No. 207
	 	 	Sec. 3, Beixin Rd.
	 	 	Fuxing Vil., Xindian Dist.,
	 	 	New Taipei City 23143
	 	 	 
	 	 	Taiwan

 

 

10EX-4.1

 Exhibit 4.1 

VAXCYTE, INC. 
 FORM OF
WARRANT TO PURCHASE SHARES OF COMMON STOCK 
 Number of Shares: [    ] (subject to adjustment) 

 

			
	Warrant No. CS - [    ]	  	Original Issue Date: January [    ], 2022

 Vaxcyte, Inc., a Delaware corporation (the “Company”), hereby certifies that, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, [    ] or its registered assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company up to
a total of [    ] shares of common stock, $0.001 par value per share (“Common Stock”), of the Company (each such share, a “Warrant Share” and all such shares, the “Warrant
Shares”) at an exercise price per share equal to $0.001 per share (as adjusted from time to time as provided in Section 9 herein, the “Exercise Price”) upon surrender of this Warrant to Purchase Shares of Common Stock
(including any Warrants to Purchase Shares of Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”) at any time and from time to time on or after the date hereof (the “Original Issue Date”)
and, subject to the following terms and conditions: 
 1. Definitions. For purposes of this Warrant, the following terms shall have the following
meanings: 
 (a) “Affiliate” means any Person directly or indirectly controlled by, controlling or under common control with, a Holder, as
such terms are used in and construed under Rule 405 under the Securities Act, but only for so long as such control shall continue. For purposes of this definition, “control” (including, with correlative meanings, “controlled by,”
“controlling” and “under common control with”) means, with respect to a Person, possession, direct or indirect, of (a) the power to direct or cause direction of the management and policies of such Person (whether through
ownership of securities or partnership or other ownership interests, by contract or otherwise), or (b) at least 50% of the voting securities (whether directly or pursuant to any option, warrant, or other similar arrangement) or other comparable
equity interests. 
 (b) “Commission” means the United States Securities and Exchange Commission. 

(c) “Marketable Securities” means securities meeting all of the following requirements: (i) the issuer thereof is then subject to the
reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is then current in its filing of all required reports and other information under the
Securities Act and the Exchange Act; (ii) the class and series of shares or other security of the issuer that would be received by Holder in connection with the Fundamental Transaction (as defined below) were Holder to exercise this Warrant on
or prior to the closing thereof is then traded or quoted on a nationally recognized securities exchange, inter-dealer quotation system or over-the-counter market, and
(iii) following the closing of such Fundamental Transaction, the Holder would not be restricted from publicly re-selling all of the issuer’s shares and/or other securities that would be received by
the Holder in such Fundamental Transaction were the Holder to exercise or convert this Warrant in full on or prior to the closing of such Fundamental Transaction, except to the extent that any such restriction (x) arises solely under federal or
state securities laws, rules or regulations, and (y) does not extend beyond six (6) months from the closing of such Fundamental Transaction. 

(d) “Principal Trading Market” means the national securities exchange or other trading market on which the shares of Common Stock are
primarily listed on and quoted for trading, which, as of the Original Issue Date, shall be the Nasdaq Global Select Market. 
 (e) “Registration
Statement” means the Company’s Registration Statement on Form S-3 (File No. 333-257622), that automatically became effective on July 2, 2021.

 (f) “Securities Act” means the Securities Act of 1933, as amended. 

  
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 (g) “Trading Day” means any weekday on which the Principal Trading Market is open for
trading. If the shares of Common Stock are not listed or admitted for trading, “Trading Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking
institutions in New York City are authorized or required by law or other governmental action to close. 
 (h) “Transfer Agent” means
American Stock Transfer & Trust Company, LLC, the Company’s transfer agent and registrar for the Common Stock, and any successor appointed in such capacity. 

(i) “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (i) if the Common Stock is then
listed or quoted on a national securities exchange or other trading market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Principal Trading Market as reported by Bloomberg L.P.
(based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (ii) if the Common Stock is then listed or quoted for trading and neither OTCQB nor OTCQX is the Principal Trading Market, the volume weighted average
price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX, as applicable, (iii) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported
in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (iv) in all other
cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company 

2. Issuance of Securities; Registration of Warrants. The Warrant, as initially issued by the Company, is offered and sold pursuant to the Registration
Statement. As of the Original Issue Date, the Warrant Shares are issuable under the Registration Statement. Accordingly, the Warrant and, assuming issuance pursuant to the Registration Statement or an exchange meeting the requirements of
Section 3(a)(9) of the Exchange Act as in effect on the Original Issue Date, the Warrant Shares, are not “restricted securities” under Rule 144 promulgated under the Securities Act. The Company shall register ownership of this
Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder (which shall include the initial Holder or, as the case may be, any assignee to which this Warrant is
assigned hereunder) from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent
actual notice to the contrary. 
 3. Registration of Transfers. Subject to compliance with all applicable securities laws, the Company shall, or will
cause its Transfer Agent to, register the transfer of all or any portion of this Warrant in the Warrant Register, upon surrender of this Warrant, and payment for all applicable transfer taxes (if any). Upon any such registration or transfer, a new
warrant to purchase shares of Common Stock in substantially the form of this Warrant (any such new warrant, a “New Warrant”) evidencing the portion of this Warrant so transferred shall be issued to the transferee, and a New Warrant
evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the
rights and obligations in respect of the New Warrant that the Holder has in respect of this Warrant. The Company shall, or will cause its Transfer Agent to, prepare, issue and deliver at the Company’s own expense any New Warrant under this
Section 3. Until due presentment for registration of transfer, the Company may treat the registered Holder hereof as the owner and holder for all purposes, and the Company shall not be affected by any notice to the contrary. 

4. Exercise and Duration of Warrants. 
 (a) All or any
part of this Warrant shall be exercisable by the registered Holder in the manner set forth in Section 10 at any time and from time to time on or after the Original Issue Date. 

  
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 (b) The Holder may exercise this Warrant by delivering to the Company (i) an exercise notice, in the
form attached as Schedule 1 hereto (the “Exercise Notice”), completed and duly signed, and (ii) payment of the Exercise Price for the number of Warrant Shares as to which this Warrant is being exercised (which may take the form
of a “cashless exercise” if so indicated in the Exercise Notice pursuant to Section 10 below), and the date on which the last of such items is delivered to the Company (as determined in accordance with the notice provisions hereof) is
an “Exercise Date.” The Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice shall have the same effect as cancellation of the original
Warrant and issuance of a New Warrant evidencing the right to purchase the remaining number of Warrant Shares, if any. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this
paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof. 

5. Delivery of Warrant Shares. 
 (a) Upon exercise of
this Warrant, the Company shall promptly (but in no event later than three (3) Trading Days after the Exercise Date), upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise to the Holder’s or its designee’s balance account with The Depository Trust Company (“DTC”) through its Deposit Withdrawal Agent Commission system, or if the Transfer Agent is not participating in
the Fast Automated Securities Transfer Program (the “FAST Program”), issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the
name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. The Holder, or any natural person or legal entity (each, a “Person”) so designated by the Holder
to receive Warrant Shares, shall be deemed to have become the holder of record of such Warrant Shares as of the Exercise Date, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the
certificates evidencing such Warrant Shares, as the case may be. 
 (b) If by the close of the third (3rd) Trading Day after the Exercise Date, the Company
fails to deliver to the Holder a certificate representing the required number of Warrant Shares in the manner required pursuant to Section 5(a) or fails to credit the Holder’s DTC account for such number of Warrant
Shares to which the Holder is entitled, and if after such third (3rd) Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases (in an open market transaction, provided such purchases shall be made in a commercially
reasonable manner at prevailing market prices) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a
“Buy-In”), then the Company shall, within two (2) Trading Days after the Holder’s request, in the Holder’s sole discretion, either (i) pay cash to the Holder in an amount
equal to the Holder’s total purchase price (including commercially reasonable brokerage commissions, if any) for the shares of Common Stock so purchased, at which point the Company’s obligation to deliver such Warrant Shares shall
terminate, or (ii) (A) pay in cash to the Holder the amount, if any, by which (1) the Holder’s total purchase price (including commercially reasonable brokerage commissions, if any) for the shares of Common Stock purchased in the Buy-In exceeds (2) the product of (x) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue, times (y) the price at which the
sell order giving rise to such purchase obligation was executed (assuming such sale was executed on commercially reasonable terms at prevailing market prices and, if the sale was executed in multiple transactions, the volume weighted average price),
and (B) at the option of the Holder, either (1) reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or
(2) deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. The provisions of this Section 5(b) shall be the only remedy
available to the Holder in the event the Company fails to deliver to the Holder the required number of Warrant Shares in the manner required pursuant to Section 5(a) and a Buy-In occurs. Irrespective of
whether there is a Buy-In, no remedy shall be available, notwithstanding the requirements of Section 5(a), unless and until the Company fails to deliver to the Holder the required number of Warrant Shares
by the close of the third Trading Day after the Exercise Date. 

  
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 (c) To the extent permitted by law and subject to Section 5(b), the Company’s obligations to issue
and deliver Warrant Shares in accordance with and subject to the terms hereof (including the limitations set forth in Section 11 below) are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same,
any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the
Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance that might otherwise limit such obligation of the Company to the
Holder in connection with the issuance of Warrant Shares. Subject to Section 5(b), nothing herein shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a
decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. 

6. Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without
charge to the Holder for any issue or transfer tax, transfer agent fee or other incidental tax or expense (excluding any applicable stamp duties) in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the
Company; provided, however, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or the Warrants in a name other than
that of the Holder or an Affiliate thereof. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof. 

7. Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction (in such case) and, in each
case, a customary and reasonable indemnity and surety bond, if requested by the Company. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable
third-party costs as the Company may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company’s obligation
to issue the New Warrant. 
 8. Reservation of Warrant Shares. The Company covenants that it will, at all times while this Warrant is issued and
outstanding, reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved shares of Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein
provided, the number of Warrant Shares that are initially issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the Holder (taking into account
the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and
validly authorized, issued and fully paid and non-assessable. The Company will take all such action as may be reasonably necessary to assure that such shares of Common Stock may be issued as provided herein
without violation of any applicable law or regulation, or of any requirements of any securities exchange or automated quotation system upon which the shares of Common Stock may be listed. The Company further covenants that it will not, without the
prior written consent of the Holder, take any actions to increase the par value of the shares of Common Stock at any time while this Warrant is issued and outstanding. 

9. Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to
time as set forth in this Section 9. 
 (a) Stock Dividends and Splits. If the Company, at any time while this Warrant is issued and
outstanding, (i) pays a stock dividend on its shares of Common Stock or otherwise makes a distribution on any class of capital shares issued and outstanding on the Original Issue Date and in accordance with the terms of such stock on the
Original Issue Date or as amended, as described in the Registration Statement, that is payable in shares of Common Stock, 

  
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(ii) subdivides its issued and outstanding shares of Common Stock into a larger number of shares of Common Stock, (iii) combines its issued and outstanding shares of Common Stock into a
smaller number of shares of Common Stock or (iv) issues by reclassification of capital shares any additional shares of Common Stock of the Company, then in each such case the Exercise Price shall be multiplied by a fraction, the numerator of
which shall be the number of shares of Common Stock issued and outstanding immediately before such event and the denominator of which shall be the number of shares of Common Stock issued and outstanding immediately after such event. Any adjustment
made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, provided, however, that if such record date shall
have been fixed and such dividend is not fully paid on the date fixed therefor, the Exercise Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Exercise Price shall be adjusted pursuant to this
paragraph as of the time of actual payment of such dividends. Any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. 

(b) Pro Rata Distributions. If the Company, at any time while this Warrant is issued and outstanding, distributes to all holders of shares of Common
Stock for no consideration (i) evidences of its indebtedness, (ii) any security (other than a distribution of shares of Common Stock covered by the preceding paragraph), (iii) rights or warrants to subscribe for or purchase any security,
or (iv) cash or any other asset (in each case, “Distributed Property”), then, upon any exercise of this Warrant that occurs after the record date fixed for determination of stockholders entitled to receive such distribution,
the Holder shall be entitled to receive, in addition to the Warrant Shares otherwise issuable upon such exercise (if applicable), the Distributed Property that such Holder would have been entitled to receive in respect of such number of Warrant
Shares had the Holder been the record holder of such Warrant Shares immediately prior to such record date without regard to any limitation on exercise contained therein. 

(c) Fundamental Transactions. If, at any time while this Warrant is issued and outstanding (i) the Company effects any merger or consolidation of
the Company with or into another Person, in which the Company is not the surviving entity and in which the stockholders of the Company immediately prior to such merger or consolidation do not own, directly or indirectly, at least 50% of the voting
power of the surviving entity immediately after such merger or consolidation, (ii) the Company effects any sale to another Person of all or substantially all of its assets in one transaction or a series of related transactions,
(iii) pursuant to any tender offer or exchange offer (whether by the Company or another Person), holders of capital stock tender shares representing more than 50% of the voting power of the capital stock of the Company and the Company or such
other Person, as applicable, accepts such tender for payment, (iv) the Company consummates a share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than the 50% of the voting power of the capital stock of the Company (except for any such transaction in which the
stockholders of the Company immediately prior to such transaction maintain, in substantially the same proportions, the voting power of such Person immediately after the transaction) or (v) the Company effects any reclassification of the shares
of Common Stock or any compulsory share exchange pursuant to which the shares of Common Stock are effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of shares of
Common Stock covered by Section 9(a) above) (in any such case, a “Fundamental Transaction”), then following such Fundamental Transaction the Holder shall have the right to receive, upon exercise of this Warrant, the same amount
and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then
issuable upon exercise in full of this Warrant without regard to any limitations on exercise contained herein (the “Alternate Consideration”). The Company shall not effect any Fundamental Transaction in which the Company is not the
surviving entity or the Alternate Consideration includes securities of another Person unless (i) the Alternate Consideration is solely cash and the Company provides for the simultaneous “cashless exercise” of this Warrant pursuant to
Section 10 below or (ii) prior to, simultaneously with or promptly following the consummation thereof, any successor to the Company, surviving entity or other Person (including any purchaser of assets of the Company) shall assume the
obligation to deliver to the Holder such Alternate Consideration as, in accordance with the foregoing provisions, the Holder may be 

  
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entitled to receive, and the other obligations under this Warrant. The provisions of this paragraph (c) shall similarly apply to subsequent transactions analogous of a Fundamental
Transaction type. Notwithstanding the foregoing, in the event of a Fundamental Transaction where the consideration payable to holders of shares of Common Stock consists solely of cash, solely of Marketable Securities or a combination of cash and
Marketable Securities, then this Warrant shall automatically be deemed to be exercised in full in a “cashless exercise” pursuant to Section 10 below effective immediately prior to and contingent upon the consummation of such
Fundamental Transaction. 
 (d) Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to Section 9
(including any adjustment to the Exercise Price that would have been effected but for the final sentence in this paragraph (d)), the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased
proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the increased or decreased number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.
Notwithstanding the foregoing, in no event may the Exercise Price be adjusted below the par value of the shares of Common Stock then in effect. 
 (e)
Calculations. All calculations under this Section 9 shall be made to the nearest one-millionth of one cent or the nearest share, as applicable. 

(f) Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will, at the written
request of the Holder, promptly compute such adjustment, in good faith, in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or
type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request,
the Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s transfer agent. 
 (g) Notice of Corporate
Events. If, while this Warrant is issued and outstanding, the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its shares of Common Stock, including, without limitation, any
granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental
Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then, except if such notice and the contents thereof shall be deemed to constitute material
non-public information, the Company shall deliver to the Holder a notice of such transaction at least ten (10) days prior to the applicable record or effective date on which a Person would need to hold
shares of Common Stock in order to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be
described in such notice. In addition, if while this Warrant is issued and outstanding, the Company authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction contemplated by
Section 9(c), other than a Fundamental Transaction under clause (iii) of Section 9(c), then, except if such notice and the contents thereof shall be deemed to constitute material non-public
information, the Company shall deliver to the Holder a notice of such Fundamental Transaction at least ten (10) days prior to the date such Fundamental Transaction is consummated. 

10. Payment of Cashless Exercise Price. Notwithstanding anything contained herein to the contrary, the Holder may, in its sole discretion,
satisfy its obligation to pay the Exercise Price through a “ cashless exercise”, in which event the Company shall issue to the Holder the number of Warrant Shares in an exchange of securities effected pursuant to Section 3(a)(9) of
the Securities Act as determined as follows: 
 X = Y [(A-B)/A] 

where: 
 “X” equals the number of Warrant Shares to be
issued to the Holder; 

  
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 “Y” equals the total number of Warrant Shares with respect to which this Warrant is then being
exercised; 
 “A” equals the last VWAP immediately preceding the time of delivery of the Exercise Notice giving rise to the applicable
“cashless exercise”, as set forth in the applicable Exercise Notice (to clarify, the “last VWAP” will be the last VWAP as calculated over an entire Trading Day such that, in the event that this Warrant is exercised at a time that
the Trading Market is open, the prior Trading Day’s VWAP shall be used in this calculation); and 
 “B” equals the Exercise Price per Warrant
Share then in effect on the Exercise Date. 
 For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged
that the Warrant Shares issued in such a “cashless exercise” transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was
originally issued (provided that the Commission continues to take the position that such treatment is proper at the time of such exercise). 
 Except as set
forth in Section 12 (payment of cash in lieu of fractional shares), in no event will the exercise of this Warrant be settled in cash. 
 11.
Limitations on Exercise. 
 (a) Notwithstanding anything to the contrary contained herein, the Company shall not effect any exercise of this Warrant,
and the Holder shall not be entitled to exercise this Warrant for a number of Warrant Shares in excess of that number of Warrant Shares which, upon giving effect or immediately prior to such exercise, would cause (i) the aggregate number of
shares of Common Stock beneficially owned by the Holder, its Affiliates and any other Persons whose beneficial ownership of shares of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act
(such as any other members of a Section 13(d) “group”) to exceed 9.99% (the “Maximum Percentage”) of the total number of issued and outstanding shares of Common Stock of the Company following such exercise, or
(ii) the combined voting power of the securities of the Company beneficially owned by the Holder and its Affiliates and any other Persons whose beneficial ownership of shares of Common Stock would be aggregated with the Holder’s for
purposes of Section 13(d) of the Exchange Act (such as any other members of a Section 13(d) “group”) to exceed 9.99% of the combined voting power of all of the securities of the Company then outstanding following such exercise.
For purposes of this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most recent Form 10-Q or Form 10-K, as the case may be, filed with the Commission prior to the date hereof, (y) a more recent public announcement by the Company or (z) any other
notice by the Company or its transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written request of the Holder, the Company shall within three (3) Trading Days confirm in writing or by electronic mail to the
Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant,
by the Holder since the date as of which such number of outstanding shares of Common Stock was reported. By written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage specified
not in excess of 19.99% specified in such notice; provided that any such increase will not be effective until the sixty-first (61st) day after such notice is delivered to the Company. For purposes
of this Section 11(a), the aggregate number of shares of Common Stock or voting securities beneficially owned by the Holder and its Affiliates and any other Persons whose beneficial ownership of shares of Common Stock would be aggregated with
the Holder’s for purposes of Section 13(d) of the Exchange Act (such as any other members of a Section 13(d) “group”) shall include the shares of Common Stock issuable upon the exercise of this Warrant with respect to which
such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (x) exercise of the remaining unexercised and non-cancelled portion of this Warrant by
the Holder and (y) exercise or conversion of the unexercised, non-converted or non-cancelled portion of any other securities of the Company that do not have voting
power (including without limitation any securities of the Company which would entitle the holder thereof to acquire at any time shares of Common Stock, including without limitation any debt, 

  
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preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, shares of
Common Stock), is subject to a limitation on conversion or exercise analogous to the limitation contained herein and is beneficially owned by the Holder or any of its Affiliates and other Persons whose beneficial ownership of shares of Common Stock
would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act (such as any other members of a Section 13(d) “group”). 

(b) This Section 11 shall not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine the
amount of securities or other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 9(c) of this Warrant. 

12. No Fractional Shares. No fractional Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu of any fractional shares
that would otherwise be issuable, the number of Warrant Shares to be issued shall be rounded down to the next whole number and the Company shall pay the Holder in cash the fair market value (based on the last VWAP immediately preceding the time of
delivery of the applicable Exercise Notice) for any such fractional shares. 
 13. Notices. Any and all notices or other communications or deliveries
hereunder (including, without limitation, any Exercise Notice) shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via confirmed e-mail prior to 5:30 P.M., New York City time, on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via confirmed e-mail on a day that is not a Trading Day or later than 5:30 P.M., New York City time, on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier
service specifying next business day delivery, or (iv) upon actual receipt by the Person to whom such notice is required to be given, if by hand delivery. The addresses and e-mail addresses for such
communications shall be: 
 If to the Company: 
 Vaxcyte, Inc.

 825 Industrial Road 
 Suite 300 

San Carlos, California 94070 
 with copies to: 

Cooley LLP 
 3175 Hanover Street 

Palo Alto, California 94304 
 Facsimile: (650) 849-7400 
 Attention: Mark B. Weeks 

John T. McKenna 
 If to the Holder, to its
address or e-mail address set forth herein or on the books and records of the Company. 
 Or, in each of the above
instances, to such other address or e-mail address as the recipient party has specified by written notice given to each other party at least five (5) days prior to the effectiveness of such change. 

14. Warrant Agent. The Company shall initially serve as warrant agent under this Warrant. Upon ten (10) days’ notice to the Holder, the
Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to which the Company or any new warrant agent shall be a party or any
corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or stockholders services business shall be a successor warrant agent under this Warrant without any further act. Any such successor warrant
agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as shown on the Warrant Register. 

  
 8 

 15. Miscellaneous. 

(a) No Rights as a Stockholder. The Holder, solely in such Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive
dividends or be deemed the holder of capital stock of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person’s capacity as the Holder of this Warrant, any of the
rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, amalgamation, conveyance or otherwise),
receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing
contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company
or by creditors of the Company. 
 (b) Authorized Shares. Except and to the extent as waived or consented to by the Holder, the Company shall not by
any action, including, without limitation, amending its certificate or articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, amalgamation, dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and
non-assessable Warrant Shares upon the exercise of this Warrant, and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body
having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant. 
 (c) Successors and Assigns.
Subject to compliance with applicable securities laws, this Warrant may be assigned by the Holder. This Warrant may not be assigned by the Company without the written consent of the Holder, except to a successor in the event of a Fundamental
Transaction in which this Warrant is not automatically “cashless exercised”. This Warrant shall be binding on and inure to the benefit of the Company and the Holder and their respective successors and assigns. Subject to the preceding
sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed by the
Company and the Holder, or their successors and assigns. 
 (d) Amendment and Waiver. Except as otherwise provided herein, this Warrant may be
modified or amended or the provisions hereof waived with the written consent of the Company and the Holder. 
 (e) Acceptance. Receipt of this
Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein. 
 (f) Governing Law;
Jurisdiction. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICTS OF LAW THEREOF. EACH OF THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, 

  
 9 

 
BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE
ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT. EACH OF THE COMPANY AND
THE HOLDER HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY)
TO SUCH PERSON AT THE ADDRESS IN EFFECT FOR NOTICES TO IT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE
PROCESS IN ANY MANNER PERMITTED BY LAW. EACH OF THE COMPANY AND THE HOLDER HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY. 
 (g) Headings. The headings
herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof. 
 (h)
Severability. In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected
or impaired thereby, and the Company and the Holder will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute
provision in this Warrant. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 10 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as of
the date first indicated above. 
  

					
	VAXCYTE, INC.
		
	By:	 	 
		 	Name:	 	Andrew Guggenhime
		 	Title:	 	President and Chief Financial Officer

  
 11 

 SCHEDULE 1 

FORM OF EXERCISE NOTICE 

[To be executed by the Holder to purchase shares of Common Stock under the Warrant] 

Ladies and Gentlemen: 
 (1) The undersigned is the Holder of
Warrant No. ___ (the “Warrant”) issued by Vaxcyte, Inc., a Delaware corporation (the “Company”). Capitalized terms used herein and not otherwise defined herein have the respective meanings set forth in the Warrant. 

(2) The undersigned hereby exercises its right to purchase ___________ Warrant Shares pursuant to the Warrant. 

(3) The Holder intends that payment of the Exercise Price shall be made as (check one): 

 

	 	☐	 Cash Exercise 

  

	 	☐	 “Cashless Exercise” under Section 10 of the Warrant 

(4) Pursuant to this Exercise Notice, the Company shall deliver to the Holder Warrant Shares determined in accordance with the terms of the Warrant. The
Warrant Shares shall be delivered to the following DWAC Account Number: 
 (5) By its delivery of this Exercise Notice, the undersigned represents and
warrants to the Company that in giving effect to the exercise evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock (as determined in accordance with Section 13(d) of the Securities Exchange Act
of 1934, as amended) permitted to be owned under Section 11(a) of the Warrant to which this notice relates. 
  

			
	Dated:	 	 
		
	Name of
Holder:	 	 
		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 

 (Signature must conform in all respects to name of Holder as specified on the face of the Warrant) 

  
 12

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