Document:

Exhibit 4.2

 

THIS WARRANT AND THE UNDERLYING SECURITIES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “Securities
ACT”) OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS OR AN
EXEMPTION THEREFROM. 

 

This
Warrant is subject to restrictions on transfer and may not be sold, transferred, assigned, pledged, or hypothecated, or be the
subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition
of this Warrant or the Shares acquirable upon exercise hereof, other than in compliance with Rule 5110(g) of the Financial Industry
Regulatory Authority, Inc. and Section 7 hereof. 

 

WARRANT

 

To Subscribe for and Purchase

Shares of Common Stock of

 

CELCUITY
Inc.

 

Date: [_________], 2017

 

THIS CERTIFIES THAT,
for value received, Craig-Hallum Capital Group LLC, or its registered assigns, (herein referred to as the “Purchaser”
or “holder”), is entitled to subscribe for and purchase from Celcuity Inc., a Delaware corporation (herein called
the “Company”), ____________ (____________) shares (the “Shares”) of common stock, par value
$0.001 per share (the “Common Stock”), of the Company (subject to adjustment as noted below) at the exercise
price of $[____] per Share (the “Warrant Purchase Price”) (subject to adjustment as noted below). This Warrant
may only be exercised during the Exercise Period specified herein. This Warrant has been issued pursuant to the Underwriting Agreement,
dated [______], 2017, between the Company and the Purchaser as representative of the several underwriters listed in Schedule I
thereto, in connection with a public offering (the “Offering”) of [_______] shares of Common Stock.

 

This Warrant is subject
to the following provisions, terms and conditions:

 

1.            The
Warrant exercise period (the “Exercise Period”) for this Warrant shall begin the effective date of the Offering
and shall end on the fifth (5th) anniversary of the effective date of the Offering. As used herein, the “effective
date of the Offering” means [insert pricing date], 2017.

 

2.            The
rights represented by this Warrant may be exercised, in whole or in part, by the holder hereof as follows:

 

    	 	1	 

     

    

 

(a)                                     The
holder hereof shall deliver to the Company written notice of exercise of this Warrant and in connection therewith shall surrender
this Warrant (properly endorsed if required) at the principal office of the Company and pay the Warrant Purchase Price for such
Shares as provided for herein.

 

(b)                                    The
holder hereof shall pay the Warrant Purchase Price (i) in immediately available funds or (ii) by “cashless exercise”,
in which event the Company shall issue to the holder hereof a number of Shares determined as follows:

 

X = Y * [(A-B)/A]

 

where:

 

X = the number of Shares
to be issued to the holder.

 

Y = the
total number of Shares with respect to which this Warrant is being exercised.

 

A = the
fair market value of one Share at the time the “cashless exercise” election is made.

 

B = the
Warrant Purchase Price then in effect for the Shares at the “cashless exercise” election is made.

 

For purposes of this Warrant, the
fair market value of one Share as of a particular date shall be determined as follows: (i) if the Common Stock is traded on a U.S.
national securities exchange, the value shall be deemed to be the average of the closing prices of the Common Stock on such exchange
over the 10-Trading Day period ending on the Trading Day prior to the net exercise election; (ii) if clause (i) is not applicable,
the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable) of the Common Stock on
the principal securities exchange or securities market on which the Common Stock trades over the 10-Trading Day period ending on
the Trading Day prior to the net exercise election; and (iii) if none of the foregoing is applicable, the value shall be the fair
market value of one share of Common Stock mutually agreed upon by the holder and the Company; provided, that if the Company and
the holder are unable to agree upon the fair market value of a Share, then the board of directors of the Company shall use its
good faith judgment to determine the fair market value, and such determination shall be binding upon all parties absent demonstrable
error.

 

For purposes of this Warrant, “Trading
Day” means any day on which the Common Stock is traded on a U.S. stock exchange or, if inapplicable, the principal securities
exchange or securities market on which the Common Stock is then traded.

 

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(c)                                          Upon
exercise of this Warrant, the Company shall promptly (but in no event later than three Trading Days after the date this Warrant
is exercised in accordance with its terms) issue or cause to be issued and cause to be delivered to or upon the written order of
the holder and in such name or names as the holder may designate (provided that, if the holder directs the Company to deliver a
certificate for the Shares in a name other than that of the holder or an affiliate (as defined in Rule 405 under the Securities
Act of 1933, as amended (the “Securities Act”)) of the holder, it shall deliver to the Company on the date of
exercise an opinion of counsel reasonably satisfactory to the Company to the effect that the issuance of such Shares in such other
name may be made pursuant to an available exemption from the registration requirements of the Securities Act and all applicable
state securities or blue sky laws), a certificate for the Shares issuable upon such exercise or credit for such Shares through
the facilities of The Depository Trust Company (“DTC”) to the account designated by the holder (with any restrictive
legends required by applicable securities laws). The form of delivery of the Shares acquired upon exercise will be at the election
of the holder, subject to the other terms of this Warrant. The holder, or any person permissibly so designated by the holder to
receive the Shares acquired upon exercise hereof, shall be deemed to have become the holder of record of such Shares as of the
date notice of exercise of payment of the applicable Warrant Purchase Price is made in accordance with the terms hereof.

 

(d)                                          If
by the fifth Trading Day after the date this Warrant is exercised in accordance with this Section 2 the Company fails to deliver
the required number of Shares in the manner required pursuant to Section 2(c), then, in addition to any other remedy the holder
may have at law or in equity (including a decree of specific performance or injunctive relief), the holder hereof will have the
right to rescind such exercise.

 

(e)                                          In
the event that this Warrant has not been exercised prior to the end of the Exercise Period and the fair market value of one Share
as determined in accordance with the provisions hereof exceeds the Warrant Purchase Price on the last day of the Exercise Period,
on such date this Warrant will be automatically exercised pursuant to the cashless exercise provisions set forth in Section 2(b);
provided, that the holder hereof, upon the request of the Company, must surrender to the Company of this Warrant within 30 days
of a request for delivery of thereof by the Company. If the holder hereof does not surrender this Warrant within such time period,
this Warrant will be deemed to not have been exercised under this Section 2(e) and will terminate and no longer be exercisable.

 

3.            The Company represents and warrants that this Warrant has been duly authorized by all necessary corporate action, has been duly
executed and delivered and is a legal and binding obligation of the Company, enforceable against the Company in accordance with
the terms of this Warrant, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws
affecting the rights of creditors generally and subject to general principles of equity. The Company covenants and agrees that
all Shares which may be issued upon the exercise of the rights represented by this Warrant according to the terms hereof have been
duly authorized and will, upon issuance and payment therefor, be validly issued and fully paid. The Company further covenants and
agrees that during the period within which the rights represented by this Warrant may be exercised, the Company will at all times
have authorized, and reserved for the purpose of issue upon exercise of the subscription rights evidenced by this Warrant, a sufficient
number of its shares of Common Stock to provide for the exercise of the rights represented by this Warrant, free from preemptive
rights or other actual contingent purchase rights other than those held by a holder of this Warrant (as a result of holding this
Warrant).

 

    	 	3	 

     

    

 

4.            The
Company will pay any documentary stamp taxes attributable to the issuance of Shares upon the exercise of this Warrant; provided,
however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in
the registration of any certificates for Warrants, or Shares issued upon exercise of this Warrant, in a name other than that of
the Purchaser. The Purchaser shall be responsible for all other tax liability that may arise as a result of holding or transferring
this Warrant or receiving Shares upon exercise hereof.

 

5.             The
above provisions are, however, subject to the following:

 

(a)                                          The
Warrant Purchase Price shall, from and after the date of issuance of this Warrant, be subject to adjustment from time to time as
hereinafter provided. Upon each adjustment of the Warrant Purchase Price, the holder of this Warrant shall thereafter be entitled
to purchase, at the Warrant Purchase Price resulting from such adjustment, the number of Shares obtained by multiplying the Warrant
Purchase Price in effect immediately prior to such adjustment by the number of Shares purchasable pursuant hereto immediately prior
to such adjustment and dividing the product thereof by the Warrant Purchase Price resulting from such adjustment.

 

(b)                                          In
case the Company shall at any time subdivide its outstanding shares of Common Stock into a greater number of shares, the Warrant
Purchase Price in effect immediately prior to such subdivision shall be proportionately reduced, and conversely, in case the outstanding
shares of Common Stock shall be combined into a smaller number of shares, the Warrant Purchase Price in effect immediately prior
to such combination shall be proportionately increased.

 

(c)                                          If
any capital reorganization or reclassification of the capital stock of the Company, shall be effected in such a way that holders
of Common Stock shall be entitled to receive stock or securities with respect to or in exchange for Common Stock, then, as a condition
of such reorganization, reclassification or consolidation, lawful and adequate provision shall be made whereby the holder hereof
shall thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in this Warrant
and in lieu of the Shares immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby,
such shares of stock or securities as may be issued or payable with respect to or in exchange for a number of Shares equal to the
number of Shares immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby had such
reorganization, reclassification or consolidation not taken place, and in any such case appropriate provision shall be made with
respect to the rights and interests of the holder of this Warrant to the end that the provisions hereof (including without limitation
provisions for adjustments of the warrant purchase price and of the number of shares purchasable upon the exercise of this Warrant)
shall thereafter be applicable, as nearly as may be, in relation to any shares of stock or securities thereafter deliverable upon
the exercise hereof.

 

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(d)                                          Upon
any adjustment of the Warrant Purchase Price or any adjustment of any material terms hereof, then and in each such case an officer
of the Company shall, as soon as practicable after the occurrence of any event that requires an adjustment or readjustment, give
signed written notice thereof, by first–class mail, postage prepaid, addressed to the registered holder of this Warrant at
the address of such holder as shown on the books of the Company, which notice shall state the Warrant Purchase Price resulting
from such adjustment, any material change in the terms of the Warrant, and the increase or decrease, if any, in the number of Shares
purchasable at such price upon the exercise of this Warrant, setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based.

 

(e)                                          If
at any time during the Exercise Period:

 

(i)                                         
there shall be any capital reorganization, or reclassification of the capital stock of the Company; or

 

(ii)                                        
there shall be a voluntary or involuntary dissolution, liquidation or winding up of the Company;

 

   then, in any
one or more of said cases, the Company shall give written notice, by first–class mail, postage prepaid, addressed to the
registered holder of this Warrant at the address of such holder as shown on the books of the Company, of the date on which (A)
the books of the Company shall close or a record shall be taken for such distribution or subscription rights, or (B) such reorganization,
reclassification or consolidation, dissolution, liquidation or winding up, or conversion or redemption shall take place, as the
case may be. Such notice shall also specify the date as of which the holders of capital stock of record shall participate in such
distribution or subscription rights, or shall be entitled to exchange their capital stock for securities or other property deliverable
upon such reorganization, reclassification, consolidation, dissolution, liquidation or winding up, or conversion or redemption,
as the case may be. Such written notice shall be given at least 20 days prior to the action in question and not less than 20 days
prior to the record date or the date on which the Company’s transfer books are closed in respect thereto.

 

(f)                                          If
any event occurs as to which in the opinion of the Board of Directors of the Company the other provisions of this Section 5 are
not strictly applicable or if strictly applicable would not fairly protect the purchase rights of the holder of this Warrant or
of the Common Stock in accordance with the essential intent and principles of such provisions, then the Board of Directors shall
make an adjustment in the application of such provisions, in accordance with such essential intent and principles, so as to protect
such purchase rights as aforesaid.

 

6.             This
Warrant shall not entitle the holder hereof to any voting rights or other rights as a shareholder of the Company.

 

    	 	5	 

     

    

 

7.             This
Warrant is exchangeable, upon the surrender hereof by the holder hereof at the principal office of the Company, for new Warrants
of like tenor representing in the aggregate the right to subscribe for and purchase the number of shares which may be subscribed
for and purchased hereunder, each of such new Warrants to represent the right to subscribe for and purchase such number of shares
as shall be designated by said holder hereof at the time of such surrender. Subject to compliance with applicable securities laws
and the other terms of this Warrant, this Warrant may be assigned or transferred by the holder and this Warrant shall be binding
on and inure to the benefit of the parties hereto and their respective transferees, successors and assigns. Notwithstanding the
foregoing, pursuant to Rule 5110(g) of the Financial Industry Regulatory Authority, Inc. (“FINRA”), this Warrant
shall not be sold during the Offering, or sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging,
short sale, derivative, put, or call transaction that would result in the effective economic disposition of this Warrant or the
Shares acquirable upon exercise hereof, by any person for a period of 180 days immediately following the effective date of the
Offering, except as provided in paragraph (g)(2) of Rule 5110(g) of the FINRA.

 

8.             Each
certificate for the securities purchased under this Warrant shall bear a legend as follows unless such securities have been registered
under the Securities Act of 1933, as amended (the “Act”):

 

“The
securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”),
or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred
except pursuant to an effective registration statement under the Act, or pursuant to an exemption from registration under the Act
and applicable state law which, in the opinion of counsel to the Company, is available.”

 

The securities evidenced by this Warrant
shall not be transferred unless and until: (i) the Company has received the opinion of counsel for the Holder that the securities
may be transferred pursuant to an exemption from registration under the Act and applicable state securities laws, the availability
of which is established to the reasonable satisfaction of the counsel of the Company, or (ii) a registration statement relating
to the offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities and Exchange
Commission and compliance with applicable state securities law has been established.

 

9.             The
Company will not be required upon the exercise of this Warrant to issue fractions of Shares, but may, at its option, either (a)
purchase such fraction for an amount in cash equal to the current value of such fraction computed on the basis of the closing market
price of the Common Stock as quoted on the principal exchange or trading facility on which the Common Stock is traded on the Trading
Day immediately preceding the day upon which this Warrant was surrendered for exercise in accordance with Section 2 hereof, or
(b) issue the required Share. By accepting this Warrant, the holder hereof expressly waives any right to receive any fractional
share upon exercise of a Warrant, except as expressly provided in this Section 9.

 

10.           If
this Warrant is exercised for less than all of the then-current number of Shares purchasable hereunder, then the Company shall,
concurrently with the issue of the Shares purchased by the holder hereof upon such exercise in accordance with Section 2, issue
a new warrant exercisable for the remaining number of Shares purchasable under this Warrant.

 

    	 	6	 

     

    

 

11.           Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
and security reasonably satisfactory to it, the Company shall execute and deliver a new warrant of like tenor as the Warrant so
lost, stolen, destroyed or mutilated.

 

12.           This
Warrant shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect
to conflict of laws principles thereof. The Company and the holder agree that the prevailing party(ies) in any action or proceeding
arising out of or relating to this Warrant shall be entitled to recover from the other party(ies) all of its reasonable attorneys’
fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor.

 

13.           All
modifications or amendments of this Warrant shall require the written consent of and be signed by the party against whom enforcement
of the modification or amendment is sought.

 

14.           This
Warrant (together with the other agreements and documents being delivered pursuant to or in connection with this Warrant) constitutes
the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings
of the parties, oral and written, with respect to the subject matter hereof.

 

15.           This
Warrant shall inure solely to the benefit of and shall be binding upon, the holder and the Company and their permitted assignees,
respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable
right, remedy or claim under or in respect of or by virtue of this Warrant or any provisions herein contained.

 

[Signature Page Follows]

 

    	 	7	 

     

    

 

IN WITNESS WHEREOF,
Celcuity Inc. has caused this Warrant to be signed by its duly authorized officer and this Warrant to be dated as of the date set
forth above.

 

	 	CELCUITY Inc.

 

	 	By:	 

	 	Name: Brian F. Sullivan
	 	Title: Chief Executive Officer

 

	Acknowledged and agreed:	 
	 	 
	CRAIG-HALLUM CAPITAL GROUP LLC	 
	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

[Signature Page to Representative’s
Warrant]

 

     

     

    

 

SUBSCRIPTION FORM

 

To be Executed by the Holder of this
Warrant if such Holder

Desires to Exercise this Warrant in Whole or in Part

 

To:Celcuity Inc. (the “Company”)

 

The undersigned
___________________________________

 

Please insert Social Security or other

identifying number of Subscriber:

 

_______________________________

 

hereby irrevocably elects to exercise the
right of purchase represented by this Warrant for, and to purchase thereunder, ___________ shares of Common Stock (the “Shares”)
provided for therein.

 

Payment of the Warrant Purchase Price for
the Shares shall take the form of [Check the applicable box below]:

 

		 ̈	Immediately available U.S. funds; or

 

		 ̈	the cancellation of such number of Shares as is necessary to satisfy the Warrant Purchase Price
with respect to the exercise of the number of Shares set forth above in accordance with the formula set forth in Section 2(b) of
the Warrant.

 

The undersigned requests that such Shares
be registered in the name of the undersigned or in such other name specified below:

 

	Name: 	 

 

The Shares shall be delivered as follows:

 

	 
	 
	 

  

and, if such number of Shares does not
constitute all shares purchasable under the Warrant, that a new Warrant for the balance remaining of such shares be registered
in the name of, and delivered to, the undersigned at the address stated above.

 

Unless the undersigned has selected the
“cashless exercise” option provided for in Section 2(b) of the Warrant, the undersigned hereby represents and warrants
that the undersigned is acquiring the Shares for its own account for investment purposes only, and not for resale or with a view
to distribution of such shares or any part thereof.

 

     

     

    

 

	Dated: 	 	
	 	 
	Name of Holder:	 	 
	 	 
	Signature	 	 
	 	 
	TitleExhibit 10.1

 

CELCUITY INC.

2017 EMPLOYEE STOCK PURCHASE PLAN

 

The following constitute the provisions
of the Employee Stock Purchase Plan of Celcuity Inc.

 

1.           Purpose.
The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase
Common Stock of the Company. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan”
under Section 423 of the Code. The provisions of the Plan shall, accordingly, be construed so as to extend and limit participation
in a manner consistent with the requirements of that section of the Code.

 

2.           Definitions.

 

(a)          “Board”
means the Board of Directors of the Company.

 

(b)          “Code”
means the Internal Revenue Code of 1986, as amended.

 

(c)          “Common
Stock” means the Common Stock of the Company.

 

(d)          “Company”
means Celcuity Inc., a Delaware corporation.

 

(e)          “Compensation”
means regular cash compensation received by an Employee from the Company or a Designated Subsidiary. By way of illustration, but
not limitation, Compensation includes regular compensation such as salary, wages, overtime, shift differentials and commissions,
but excludes bonuses, incentive compensation, relocation, expense reimbursements, tuition or other reimbursements and income realized
as a result of participation in any stock option, stock purchase, or similar plan of the Company or any Designated Subsidiary.

 

(f)          “Continuous
Status as an Employee” means the absence of any interruption or termination of service as an Employee. Continuous Status
as an Employee shall not be considered interrupted in the case of (i) sick leave; (ii) military leave; (iii) any other leave of
absence approved by the Administrator, provided that such leave is for a period of not more than 90 days, unless reemployment upon
the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to Company policy adopted
from time to time; or (iv) in the case of transfers between locations of the Company or between the Company and its Designated
Subsidiaries.

 

(g)          “Contributions”
means all amounts credited to the account of a participant pursuant to the Plan.

 

(h)          “Corporate
Transaction” means a sale of all or substantially all of the Company’s assets, or a merger, consolidation or other
capital reorganization of the Company with or into another corporation, or any other transaction or series of related transactions
in which the Company’s stockholders immediately prior thereto own less than 50% of the voting stock of the Company (or its
successor or parent) immediately thereafter.

 

     

     

    

 

(i)          “Designated
Subsidiaries” means the Subsidiaries that have been designated by the Board from time to time in its sole discretion
as eligible to participate in the Plan; provided however that the Board shall only have the discretion to designate Subsidiaries
if the issuance of options to such Subsidiary’s Employees pursuant to the Plan would not cause the Company to incur adverse
accounting charges.

 

(j)          “Employee”
means any person, including an Officer, who is an Employee for tax purposes and who is customarily employed for at least twenty
(20) hours per week by the Company or one of its Designated Subsidiaries.

 

(k)          “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(l)          
“Offering Date” means the first business day of each Offering Period of the Plan.

 

(m)         “Offering
Period” means a period of twenty-four (24) months commencing on November 1 and May 1 of each year, except for the first
Offering Period as set forth in Section 4(a).

 

(n)          “Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

 

(o)          “Plan”
means this Employee Stock Purchase Plan.

 

(p)          “Purchase
Date” means the last day of each Purchase Period of the Plan.

 

(q)          “Purchase
Period” means a period of six (6) months within an Offering Period, except for the Purchase Periods in the first Offering
Period as set forth in Section 4(b).

 

(r)          “Purchase
Price” means with respect to a Purchase Period an amount equal to 85% of the Fair Market Value (as defined in Section
7(b) below) of a Share of Common Stock on the Offering Date or on the Purchase Date, whichever is lower.

 

(s)          “Share”
means a share of Common Stock, as adjusted in accordance with Section 19 of the Plan.

 

(t)          “Subsidiary”
means a corporation, domestic or foreign, of which not less than 50% of the voting shares are held by the Company or a Subsidiary,
whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary.

 

3.           Eligibility.

 

(a)          Any
person who is an Employee as of the Offering Date of a given Offering Period shall be eligible to participate in such Offering
Period under the Plan, subject to the requirements of Section 5(a) and the limitations imposed by Section 423(b) of the Code.

 

    	 	- 2 -	 

     

    

 

(b)          Any
provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) if, immediately
after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d)
of the Code) would own capital stock of the Company and/or hold outstanding options to purchase stock possessing five percent (5%)
or more of the total combined voting power or value of all classes of stock of the Company or of any subsidiary of the Company,
or (ii) if such option would permit his or her rights to purchase stock under all employee stock purchase plans (described in Section
423 of the Code) of the Company and its Subsidiaries to accrue at a rate that exceeds Twenty-Five Thousand Dollars ($25,000) of
the Fair Market Value (as defined in Section 7(b) below) of such stock (determined at the time such option is granted) for each
calendar year in which such option is outstanding at any time.

 

4.           Offering
Periods and Purchase Periods.

 

(a)          Offering
Periods. The Plan shall be generally implemented by a series of Offering Periods of twenty-four (24) months’ duration,
with new Offering Periods (other than the first Offering Period) commencing on or about May 1 and November 1 of each year (or at
such other time or times as may be determined by the Board of Directors). The first Offering Period shall commence on the day before
the effective date of the Registration Statement on Form S-1 for the initial public offering of the Company’s Common Stock
(the “IPO Date”) and continue until April 30, 2019. The Plan shall continue until terminated in accordance with Section
19 hereof. The Board of Directors of the Company shall have the power to change the duration and/or the frequency of Offering Periods
with respect to future offerings without stockholder approval if such change is announced at least five (5) days prior to the scheduled
beginning of the first Offering Period to be affected.

 

(b)          Purchase
Periods. Each Offering Period shall generally consist of four (4) consecutive purchase periods of six (6) months’ duration.
The last day of each Purchase Period shall be the “Purchase Date” for such Purchase Period. A Purchase Period commencing
on May 1 shall end on the next October 31. A Purchase Period commencing on November 1 shall end on the next April 30.
The first Offering Period shall have three Purchase Periods. The first Purchase Period of the first Offering Period shall commence
on the IPO Date and shall end on April 30, 2018, with the second Purchase Period beginning on May 1, 2018 and ending on October
31, 2018, and the third Purchase Period beginning on November 1, 2018 and ending on April 30, 2019. The Board of Directors of the
Company shall have the power to change the duration and/or frequency of Purchase Periods with respect to future purchases without
stockholder approval if such change is announced at least five (5) days prior to the scheduled beginning of the first Purchase
Period to be affected.

 

5.           Participation.

 

(a)          An
eligible Employee may become a participant in the Plan by completing a subscription agreement on the form provided by the Company
and filing it with the Company’s Human Resources Department or the stock brokerage or other financial services firm designated
by the Company (the “Designated Broker”) prior to the applicable Offering Date, unless a later time for filing the
subscription agreement is set by the Board for all eligible Employees with respect to a given Offering Period. The subscription
agreement shall set forth the percentage of the participant’s Compensation (subject to Section 6(a) below) to be paid as
Contributions pursuant to the Plan.

 

    	 	- 3 -	 

     

    

 

(b)          Payroll
deductions shall commence on the first full payroll following the Offering Date and shall end on the last payroll paid on or prior
to the last Purchase Period of the Offering Period to which the subscription agreement is applicable, unless sooner terminated
by the participant as provided in Section 10.

 

(c)          Participants
are responsible for the payment of all income taxes, employment, social insurance, welfare and other taxes under applicable law
relating to any amounts deemed under the laws of the country of their residency or of the organization of the Subsidiary which
employs them to constitute income arising out of the Plan, the purchase and sale of Shares pursuant to the Plan and the distribution
of Shares or cash to the participant in accordance with the Plan. Each participant, by participating in the Plan, authorizes the
Company or the relevant Subsidiary to make appropriate withholding deductions from each participant’s compensation, which
shall be in addition to any payroll deductions made pursuant to Section 6 below, and to pay such amounts to the appropriate tax
authorities in the relevant country or countries in order to satisfy any of the above tax liabilities of the participant under
applicable law.

 

6.           Method
of Payment of Contributions.

 

(a)          A
participant shall elect to have payroll deductions made on each payday during the Offering Period in an amount not less than one
percent (1%) and not more than ten percent (10%) (or such other percentage as the Board may establish from time to time before
an Offering Date) of such participant’s Compensation on each payday during the Offering Period. All payroll deductions made
by a participant shall be credited to his or her account under the Plan. A participant may not make any additional payments into
such account, except as provided in Section 11.

 

(b)          A
participant may discontinue his or her participation in the Plan as provided in Section 10, or, unless otherwise provided by the
Administrator, on one occasion only during a Purchase Period may increase and on one occasion only during a Purchase Period may
decrease the rate of his or her Contributions with respect to the ongoing Offering Period by completing and filing with the Company
a new subscription agreement authorizing a change in the payroll deduction rate. The change in rate shall be effective as of the
beginning of the next pay period following the date of filing of the new subscription agreement, if the agreement is filed at least
ten (10) business days prior to such date and, if not, as of the beginning of the next succeeding pay period.

 

(c)          Notwithstanding
the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) herein, a participant’s
payroll deductions may be decreased during any Offering Period scheduled to end during the current calendar year to 0%. Payroll
deductions shall re-commence at the rate provided in such participant’s subscription agreement at the beginning of the first
Offering Period that is scheduled to end in the following calendar year, unless terminated by the participant as provided in Section
10.

 

    	 	- 4 -	 

     

    

 

7.           Grant
of Option.

 

(a)          On
the Offering Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option
to purchase on each Purchase Date a number of Shares of the Company’s Common Stock determined by dividing such Employee’s
Contributions accumulated prior to such Purchase Date and retained in the participant’s account as of the Purchase Date by
the applicable Purchase Price; provided however that the maximum number of Shares an Employee may purchase during each Purchase
Period of each Offering Period shall be 2,000 Shares, such that the maximum number of Shares an Employee may purchase during each
Offering Period shall be 8,000 Shares (subject to any adjustment pursuant to Section 19 below), and provided further that such
purchase shall be subject to the limitations set forth in Sections 3(b) and 13 of this Plan and Section 423 of the Code.

 

(b)          The
fair market value of the Shares on a given date (the “Fair Market Value”) shall be determined by such methods or procedures
as shall be established from time to time by the Board, or a committee named by the Board under Section 14 of the Plan, in its
discretion. Notwithstanding the foregoing, unless otherwise determined by the Board, the Fair Market Value of a Share on a given
date for purposes of the Plan shall be the closing sale price of such Share on the NASDAQ Capital Market as reported on the consolidated
transaction reporting system of such exchange on such date or, if such exchange is not open for trading on such date, on the most
recent preceding date that such exchange is open for trading.

 

8.           Exercise
of Option. Unless a participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of Shares
will be exercised automatically on each Purchase Date of an Offering Period, and the maximum number of full Shares subject to the
option will be purchased at the applicable Purchase Price with the accumulated Contributions in his or her account. No fractional
Shares shall be issued. Any payroll deductions accumulated in a participant’s account that are not sufficient to purchase
a full Share shall be retained in the participant’s account for the subsequent Purchase Period or Offering Period, subject
to earlier withdrawal by the participant as provided in Section 10 below. Any other amounts left over in a participant’s
account after a Purchase Date shall be returned to the participant. The Shares purchased upon exercise of an option hereunder shall
be deemed to be transferred to the participant on the Purchase Date. During his or her lifetime, a participant’s option to
purchase Shares hereunder is exercisable only by him or her.

 

9.           Delivery.
Within thirty (30) days after each Purchase Date of each Offering Period, the number of Shares purchased by each participant upon
exercise of his or her option shall be deposited into an account established in the participant’s name with the Designated
Broker.

 

10.          Voluntary
Withdrawal; Termination of Employment.

 

(a)          A
participant may withdraw all but not less than all the Contributions credited to his or her account under the Plan at any time
prior to each Purchase Date by giving written notice to the Company or the Designated Broker, as directed by the Company. All of
the participant’s Contributions credited to his or her account will be paid to him or her promptly after receipt of his or
her notice of withdrawal and his or her option for the current period will be automatically terminated, and no further Contributions
for the purchase of Shares will be made during the Offering Period.

 

    	 	- 5 -	 

     

    

 

(b)          Upon
termination of the participant’s Continuous Status as an Employee prior to the Purchase Date of an Offering Period for any
reason, including retirement or death, the Contributions credited to his or her account will be returned to him or her or, in the
case of his or her death, to the person or persons entitled thereto under Section 14, and his or her option will be automatically
terminated.

 

(c)          In
the event an Employee fails to remain in Continuous Status as an Employee of the Company for at least twenty (20) hours per week
during the Offering Period in which the employee is a participant, he or she will be deemed to have elected to withdraw from the
Plan and the Contributions credited to his or her account will be returned to him or her and his or her option terminated.

 

(d)          A
participant’s withdrawal from an offering will not have any effect upon his or her eligibility to participate in a succeeding
offering or in any similar plan that may hereafter be adopted by the Company.

 

11.         Automatic
Withdrawal. If the Fair Market Value of the Shares on any Purchase Date of an Offering Period is less than the Fair Market
Value of the Shares on the Offering Date for such Offering Period, then every participant shall automatically (i) be withdrawn
from such Offering Period at the close of such Purchase Date and after the acquisition of Shares for such Purchase Period, and
(ii) be enrolled in the Offering Period commencing on the first business day subsequent to such Purchase Period. Participants shall
automatically be withdrawn as of October 31, 2017 from the Offering Period beginning on the IPO Date and re-enrolled (with all
Contributions carried forward) in the Offering Period beginning on November 1, 2017 if the Fair Market Value of the Shares on the
IPO Date is greater than the Fair Market Value of the Shares on October 31, 2017, unless a participant notifies the Administrator
prior to October 31, 2017 that he or she does not wish to be withdrawn and re-enrolled; and, in connection therewith, any new participant
to the Offering Period beginning on November 1, 2017 may make an additional Contribution up to the maximum amount of any Contribution
carried forward by a participant.

 

12.         Interest.
No interest shall accrue on the Contributions of a participant in the Plan.

 

    	 	- 6 -	 

     

    

 

13.         Stock.

 

(a)          Subject
to adjustment as provided in Section 19, the maximum number of Shares which shall be made available for sale under the Plan shall
be 100,000 Shares, plus an automatic annual increase on the first day of each of the Company’s fiscal years beginning in
2019 and ending in 2027 equal to the lesser of (i) one-half percent (0.5%) of the Shares outstanding on the last day of the
immediately preceding fiscal year, or (ii) another amount determined by the Board. If the Board determines that, on a given Purchase
Date, the number of shares with respect to which options are to be exercised may exceed (i) the number of shares of Common Stock
that were available for sale under the Plan on the Offering Date of the applicable Offering Period, or (ii) the number of shares
available for sale under the Plan on such Purchase Date, the Board may in its sole discretion provide (x) that the Company shall
make a pro rata allocation of the Shares of Common Stock available for purchase on such Offering Date or Purchase Date, as applicable,
in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants
exercising options to purchase Common Stock on such Purchase Date, and continue all Offering Periods then in effect, or (y) that
the Company shall make a pro rata allocation of the shares available for purchase on such Offering Date or Purchase Date, as applicable,
in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants
exercising options to purchase Common Stock on such Purchase Date, and terminate any or all Offering Periods then in effect pursuant
to Section 20 below. The Company may make pro rata allocation of the Shares available on the Offering Date of any applicable Offering
Period pursuant to the preceding sentence, notwithstanding any authorization of additional Shares for issuance under the Plan by
the Company’s stockholders subsequent to such Offering Date.

 

(b)          The
participant shall have no interest or voting right in Shares covered by his or her option until such option has been exercised.

 

(c)          Shares
to be delivered to a participant under the Plan will be registered in the name of the participant or in the name of the participant
and his or her spouse.

 

14.         Administration.

 

(a)          The
Board, or a committee named by the Board, shall supervise and administer the Plan and shall have full power to adopt, amend and
rescind any rules deemed desirable and appropriate for the administration of the Plan and not inconsistent with the Plan, to construe
and interpret the Plan, and to make all other determinations necessary or advisable for the administration of the Plan.

 

(b)          The
Board, or a committee named by the Board, shall, to the extent necessary or desirable, establish any special rules for Employees,
former Employees or participants located in any particular country other than the United States. Such rules shall be set forth
in Appendices to the Plan, which shall be deemed incorporated into and form part of the Plan.

 

15.         Designation
of Beneficiary.

 

(a)          A
participant may designate a beneficiary who is to receive any Shares and cash, if any, from the participant’s account under
the Plan in the event of such participant’s death subsequent to the end of a Purchase Period but prior to delivery to him
or her of such Shares and cash. In addition, a participant may designate a beneficiary who is to receive any cash from the participant’s
account under the Plan in the event of such participant’s death prior to the Purchase Date of an Offering Period. If a participant
is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective.
Beneficiary designations under this Section 15(a) shall be made as directed by the Company’s Human Resources Department.

 

    	 	- 7 -	 

     

    

 

(b)          Such
designation of beneficiary may be changed by the participant (and his or her spouse, if any) at any time by written notice. In
the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at
the time of such participant’s death, the Company shall deliver such Shares and/or cash to the executor or administrator
of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company),
the Company, in its discretion, may deliver such Shares and/or cash to the spouse or to any one or more dependents or relatives
of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may
designate.

 

16.         Transferability.
Neither Contributions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive
Shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution, or as provided in Section 15) by the participant. Any such attempt at assignment, transfer, pledge or
other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance
with Section 10.

 

17.         Use
of Funds. All Contributions received or held by the Company under the Plan may be used by the Company for any corporate purpose,
and the Company shall not be obligated to segregate such Contributions.

 

18.         Reports.
Individual accounts will be maintained for each participant in the Plan. Statements of account will be provided to participating
Employees by the Company or the Designated Broker at least annually, which statements will set forth the amounts of Contributions,
the per Share Purchase Price, the number of Shares purchased and the remaining cash balance, if any.

 

19.         Adjustments
Upon Changes in Capitalization; Corporate Transactions.

 

(a)          Adjustment.
Subject to any required action by the stockholders of the Company, the number of Shares covered by each option under the plan that
has not yet been exercised and the number of Shares that have been authorized for issuance under the Plan but have not yet been
placed under option (collectively, the “Reserves”), as well as the maximum number of shares of Common Stock that may
be purchased by a participant in a Purchase Period, the number of shares of Common Stock set forth in Section 13(a)(i) above, and
the price per Share of Common Stock covered by each option under the Plan that has not yet been exercised, shall be proportionately
adjusted for any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock (including any such change in the number of Shares of Common Stock effected
in connection with a change in domicile of the Company), or any other increase or decrease in the number of Shares effected without
receipt of consideration by the Company; provided however that conversion of any convertible securities of the Company shall not
be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issue by the Company
of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by
reason thereof shall be made with respect to, the number or price of Shares subject to an option.

 

    	 	- 8 -	 

     

    

 

(b)          Corporate
Transactions. In the event of a dissolution or liquidation of the Company, any Purchase Period and Offering Period then in
progress will terminate immediately prior to the consummation of such action, unless otherwise provided by the Board. In the event
of a Corporate Transaction, each option outstanding under the Plan shall be assumed or an equivalent option shall be substituted
by the successor corporation or a parent or Subsidiary of such successor corporation. In the event that the successor corporation
refuses to assume or substitute for outstanding options, each Purchase Period and Offering Period then in progress shall be shortened
and a new Purchase Date shall be set (the “New Purchase Date”), as of which date any Purchase Period and Offering Period
then in progress will terminate. The New Purchase Date shall be on or before the date of consummation of the transaction and the
Board shall notify each participant in writing, at least ten (10) days prior to the New Purchase Date, that the Purchase Date for
his or her option has been changed to the New Purchase Date and that his or her option will be exercised automatically on the New
Purchase Date, unless prior to such date he or she has withdrawn from the Offering Period as provided in Section 10. For purposes
of this Section 19, an option granted under the Plan shall be deemed to be assumed, without limitation, if, at the time of issuance
of the stock or other consideration upon a Corporate Transaction, each holder of an option under the Plan would be entitled to
receive upon exercise of the option the same number and kind of shares of stock or the same amount of property, cash or securities
as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior
to the transaction, the holder of the number of Shares of Common Stock covered by the option at such time (after giving effect
to any adjustments in the number of Shares covered by the option as provided for in this Section 19); provided however that if
the consideration received in the transaction is not solely common stock of the successor corporation or its parent (as defined
in Section 424(e) of the Code), the Board may, with the consent of the successor corporation, provide for the consideration to
be received upon exercise of the option to be solely common stock of the successor corporation or its parent equal in Fair Market
Value to the per Share consideration received by holders of Common Stock in the transaction.

 

The Board may, if it so determines in the
exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per Share of Common Stock
covered by each outstanding option, in the event that the Company effects one or more reorganizations, recapitalizations, rights
offerings or other increases or reductions of Shares of its outstanding Common Stock, and in the event of the Company’s being
consolidated with or merged into any other corporation.

 

20.         Amendment
or Termination.

 

(a)          The
Board may at any time and for any reason terminate or amend the Plan. Except as provided in Section 19, no such termination of
the Plan may affect options previously granted, provided that the Plan or an Offering Period may be terminated by the Board on
a Purchase Date or by the Board’s setting a new Purchase Date with respect to an Offering Period and Purchase Period then
in progress if the Board determines that termination of the Plan and/or the Offering Period is in the best interests of the Company
and the stockholders or if continuation of the Plan and/or the Offering Period would cause the Company to incur adverse accounting
charges as a result of a change after the effective date of the Plan in the generally accepted accounting rules applicable to the
Plan. Except as provided in Section 19 and in this Section 20, no amendment to the Plan shall make any change in any option previously
granted that adversely affects the rights of any participant. In addition, to the extent necessary to comply with Rule 16b-3 under
the Exchange Act, or under Section 423 of the Code (or any successor rule or provision or any applicable law or regulation), the
Company shall obtain stockholder approval in such a manner and to such a degree as so required.

 

    	 	- 9 -	 

     

    

 

(b)          Without
stockholder consent and without regard to whether any participant rights may be considered to have been adversely affected, the
Board (or its committee) shall be entitled to change the Offering Periods and Purchase Periods, limit the frequency and/or number
of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency
other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for
delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting
and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common
Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such
other limitations or procedures as the Board (or its committee) determines in its sole discretion advisable that are consistent
with the Plan.

 

21.         Notices.
All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have
been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company
for the receipt thereof.

 

22.         Conditions
Upon Issuance of Shares. Shares shall not be issued with respect to an option unless the exercise of such option and the issuance
and delivery of such Shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including,
without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder,
applicable state securities laws and the requirements of any stock exchange upon which the Shares may then be listed, and shall
be further subject to the approval of counsel for the Company with respect to such compliance.

 

As a condition to the exercise of an option,
the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the Shares
are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion
of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law.

 

23.         Term
of Plan; Effective Date. The Plan shall become effective upon the IPO Date. If the Plan is not approved by the shareholders
prior to August 31, 2018, all Contributions will be returned to each participant without interest and the Plan will be terminated.
If the Plan is approved by the shareholders prior to August 31, 2018, the Plan shall continue in effect for a term of ten (10)
years from the IPO Date unless sooner terminated under Section 20 or this Section 23.

 

    	 	- 10 -	 

     

    

 

24.         Additional
Restrictions of Rule 16b-3. The terms and conditions of options granted hereunder to, and the purchase of Shares by, persons
subject to Section 16 of the Exchange Act shall comply with the applicable provisions of Rule 16b-3. This Plan shall be deemed
to contain, and such options shall contain, and the Shares issued upon exercise thereof shall be subject to, such additional conditions
and restrictions as may be required by Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

 

25.         Miscellaneous.
Nothing in this Plan shall confer on any participant any express or implied right of continued employment by the Company or any
Subsidiary, whether for the duration of the Plan or otherwise. Nothing in this Plan shall confer on any person any legal or equitable
right against the Company or any of its affiliates, directly or indirectly, or give rise to any cause of action at law or in equity
against the Company or any of its affiliates. Neither the Shares purchased hereunder nor any other benefits conferred hereby, including
the right to purchase Shares at a discount, shall form any part of the wages or salary of any Employee for purposes of severance
pay or termination indemnities, irrespective of the reason for termination of employment. Under no circumstances shall any person
ceasing to be an employee of the Company or any of its affiliates be entitled to any compensation for any loss or any right or
benefit under this Plan which such employee might otherwise have enjoyed but for termination of employment, whether such compensation
is claimed by way of damages for wrongful or unfair dismissal, breach of contract or otherwise.

 

26.         Acceptance
of Terms. By participating in the Plan, each participant shall be deemed to have accepted all the conditions of the Plan and
the terms and conditions of any rules and regulations adopted by the Board or its committee administering the Plan and shall be
fully bound thereby.

 

    	 	- 11 -

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