Document:

Exhibit 10.15.3

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of June 1, 2011, is between SUNSHINE SILVER MINES CORPORATION (the “Company”) and Philip Pyle (the “Executive” and together with the Company, the “Parties”).

 

WITNESSETH:

 

WHEREAS:

 

The Parties wish to enter into the arrangements set forth herein with respect to the terms and conditions of the Executive’s employment with the Company.

 

NOW, THEREFORE, in consideration of the promises and covenants contained herein, the Parties agree as follows:

 

AGREEMENT

 

1.               Employment and Term.  The Company agrees to, and does hereby, employ the Executive, and the Executive agrees to, and does hereby accept, such employment, upon the terms and subject to the conditions set forth in this Agreement.  The Executive’s employment will begin on June 1, 2011 (the “Start Date”) and continue at will, which means that the Executive or the Company may terminate the Executive’s employment at any time for any reason, or for no reason, with or without cause (the “Term”).  If the Company terminates this Agreement and the Executive’s employment, the Company shall provide the Executive with notice and reason for the termination within ten (10) calendar days of the effective date of such termination.

 

2.               Position and Duties.

 

(a)         During the Term, the Company shall employ the Executive as Vice President Exploration.  The Executive shall perform the duties and have the responsibilities customarily associated with the position of Vice President Exploration, which shall include, without limitation, overseeing all exploration activities by the Company, working closely with the Company’s Chief Executive Officer and having ultimate responsibility for the strategic design, implementation and management of an effective exploration function.

 

(b)         The Executive will be based in Houston Texas but required to work, as needed, at the various Company exploration projects and in the Company’s corporate office in Denver Colorado.

 

(c)          The Executive shall devote his best efforts and his full business time and attention to the business and affairs of the Company.

 

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(d)         The Executive acknowledges and agrees that (i) the Executive owes the Company a duty of loyalty as a fiduciary of the Company, and (ii) the obligations described in this Agreement are in addition to, and not in lieu of, the obligations the Executive owes the Company under the common law.

 

3.               Base Salary, Bonus, Equity/Options, and Benefits.

 

(a)         Base Salary.  During the Term, the Executive’s base salary shall be $200,000.00 per annum (“Base Salary”), which salary shall be payable in regular installments in accordance with the Company’s general payroll practices.  The Base Salary will be subject to review on an annual basis and may be adjusted in accordance with the procedures set forth by the Company’s Compensation Committee.

 

(b)         Annual Bonus.  During the Term, provided that the Executive is employed by the Company on December 31st of the applicable year, the Executive will be eligible to participate in a bonus plan pursuant to which (i) at the end of 2011, he will be entitled to receive an annual target bonus in the amount of fifty percent (50%) of his Base Salary and up to one-hundred percent (100%) of Base Salary upon achievement by the Executive and the Company of certain targets as determined solely in the discretion of the Company’s Compensation Committee, (the “Annual Bonus”).  The Annual Bonus actually paid, if any, will depend on the actual performance of the Company and the Executive as determined by the Compensation Committee.  In all events the Annual Bonus, if earned, will be paid no later than March 15th following the applicable year for which it is earned.

 

(c)          Options.

 

(i)            Stock Option grants shall vest in three equal annual installments on the first, second and third anniversaries of the applicable grant date (each, a “Vesting Date”), provided in each case that the Executive is employed by the Company on the applicable Vesting Date.  The Stock Options shall have a ten-year term (subject to earlier termination upon termination of employment as described herein and in the applicable option agreement) and shall be subject to the terms and conditions of the Company’s Long-Term Incentive Plan and option agreements, all of which shall be consistent with the Executive’s rights set forth in this Section 3(c).  The Executive may receive additional stock option or other equity compensation grants in the future in the sole discretion of the Company’s Compensation Committee.

 

(d)         Employee Benefits.  During the Term, the Executive shall be entitled to participate in the Company’s various employee benefit plans that are, from time to time, made generally available to the Company’s employees, as such plans are established and pursuant to the terms and conditions of such plans.  The Executive acknowledges that the Company is in the process of implementing employee benefit plans and that such plans, including the following, are expected to be available during May 2011 or shortly thereafter: group health, vision and dental plan; short-term and long-term disability plan; life insurance plan; and 401(k) plan.

 

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(e)          Vacation.  The Executive shall be entitled to four (4) weeks paid vacation time per calendar year, pro-rated for any partial year of employment.  Recognizing that during 2011 the Executive has been working in a similar function as a consultant, the Company will convey the entire four (4) week entitlement in accordance with the Company’s vacation time policy.

 

(f)           Expense Reimbursement.  The Executive shall receive reimbursement for direct and reasonable out-of-pocket expenses incurred by him in connection with the performance of his duties hereunder, according to the policies of the Company.  All requests for reimbursement of business-related expenses shall be subject to the Company’s travel policy and requirements with respect to reporting and documentation of expenses.

 

4.               Compensation Upon Termination, Resignation, Disability or Death.

 

(a)         Termination without Cause.  If the Executive’s employment is terminated by the Company without Cause, the Company shall pay the Executive any Base Salary and Annual Bonus from the preceding calendar year to the extent accrued but unpaid as of the effective date of the Executive’s termination; accrued but unused vacation in accordance with Company policy; and all business expenses that were incurred and not reimbursed but eligible for reimbursement (collectively, the “‘Accrued Obligations”).  In addition, the Executive will be entitled to a prorated amount of the current calendar year Annual Bonus, with payment of such prorated Annual Bonus to be made at the same time as annual bonuses are made to other executives of the Company in the ordinary course (but in no event later than March 15th of the calendar year following the calendar year in which the termination occurs (the “Pro Rata Bonus”).  In addition, subject to Section 19, the Company will pay the Executive an amount equal to twelve (12) months of the Executive’s Base Salary at the rate in effect on the date of termination, payable in a lump sum within sixty (60) calendar days of the date of termination.  Provided the Executive timely elects continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall also pay, on the Executive’s behalf, the portion of monthly premiums for the Executive’s group health insurance, including coverage for the Executive’s dependents, that the Company paid immediately prior to the date of termination, during the twelve (12) month period following the date of termination, subject to the Executive’s continued eligibility for COBRA coverage.  The Company will pay for such COBRA coverage for eligible dependents only for those dependents who were enrolled immediately prior to the date of termination.  The Executive will continue to be required to pay that portion of the premium for the Executive’s health coverage, including coverage for the Executive’s eligible dependents, that the Executive was required to pay as an active employee immediately prior to the date of termination.  Notwithstanding the foregoing, in the event that under applicable guidance the reimbursement of COBRA premiums causes the Company’s group health plan to violate any applicable nondiscrimination rule, the parties agree to negotiate in good faith a mutually agreeable alternative arrangement.  Upon termination under this Section 4(a), (i) the Stock Options shall cease vesting and (ii) all vested Stock Options shall remain exercisable until the earlier of (x) the date one hundred

 

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eighty (180) calendar days following termination of employment or (y) the expiration of the original option term.

 

(b)         Resignation for Good Reason.  If the Executive resigns for Good Reason, the Company shall pay the Executive the same sums and in the same manner, and his rights to the Stock Options shall be the same, as to which the Executive would be entitled if he had been terminated by the Company without Cause, as set forth in subsection (a) above.  The Executive shall provide 30 days’ prior written notice to the Company of his decision to resign for Good Reason.

 

(c)          Termination for Cause.  If the Executive’s employment is terminated by the Company for Cause, the Company shall pay the Executive the Accrued Obligations.  Upon termination under this Section 4(c), any outstanding Stock Options shall cease to be exercisable and will be forfeited.

 

(d)         Resignation without Good Reason.  If the Executive resigns without Good Reason, the Company shall pay the Executive the Accrued Obligations.  The Executive shall provide 60 days’ prior written notice to the Company of his decision to resign without Good Reason.  The Stock Options, to the extent exercisable at the Executive’s termination of employment, shall remain exercisable until the earlier of (i) the date thirty (30) calendar days following termination of employment under this Section 4(d) or (ii) the expiration of the original option term.

 

(e)          Disability.  Subject to any state or federal law or regulation governing employees with disabilities, the Company may terminate the Executive’s employment upon the Disability of the Executive.  In the event the Executive is terminated under this Section 4(e), the Company shall pay the Executive the Accrued Obligations and the Pro Rata Bonus.  In addition, in such event, the Company shall cause Executive to fully vest in all Stock Options referred to in Section 3(c) of this Agreement, and such Stock Options shall remain exercisable until the earlier of (i) the date one (I) year following termination of employment under this Section 4(e) or (ii) the expiration of the original option term.

 

(f)           Death.  If the Executive’s employment is terminated due to the Executive’s death, the Company shall pay the Executive’s estate the Accrued Obligations and the Pro Rata Bonus.  In addition, in such event, the Company shall cause Executive’s estate to fully vest in all Stock Options referred to in Section 3(c) of this Agreement, and such Stock Options shall remain exercisable until the earlier of (i) the date one (I) year following termination of employment under this Section 4(f) or (ii) the expiration of the original option term.

 

(g)          For purposes of this Agreement:

 

(i)            “Cause” means the Executive’s (a) conviction of, guilty plea to or confession of guilt of, or plea of nolo contendere to a felony, or an act involving moral turpitude which could have a material adverse effect on the Company; (b) willful dishonesty, fraud or conduct that constitutes a felony or an act involving moral turpitude or a breach of fiduciary duty or any material misrepresentation in connection with the

 

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Executive’s employment; (c) action that exposes the Company to a material risk of legal liability or public disgrace or disrepute including, without limitation, violation of any law, rule or regulation that could expose the Company to a material legal or monetary fine or penalty; (d) neglect of his duties or substantial failure to perform duties as reasonably directed by the Board of Directors; (e) gross negligence or willful misconduct with respect to Company affairs or the Executive’s obligations hereunder; or (f) any other material breach of this or any other agreement with the Company or any material Company policy, which breach is not cured within at least fifteen (15) calendar days after receipt by the Executive of written notice from the Company of such breach, but only if such breach is able to be cured during such fifteen (15) calendar day period.

 

(ii)         “Good Reason” means: (a) a material diminution in the Executive’s Base Salary, except where such reduction occurs as part of an across-the-board reduction in salary affecting all senior executives of the Company; or (b) any other action or inaction by the Company that constitutes a material breach of this Agreement.  The foregoing shall constitute Good Reason only if (i) the Executive provides written notice to the Company of any event(s) alleged to constitute Good Reason within ninety (90) calendar days of the initial occurrence of the event, with such notice providing a detailed description of the circumstances constituting Good Reason (a “Good Reason Notice”), (ii) any such breach is not remedied or cured within fifteen (15) calendar days after the Company’s receipt of a written Good Reason Notice from the Executive (the “Cure Period”) and (iii) the Executive actually terminates employment within thirty (30) calendar days following the expiration of the Cure Period.

 

(iii)      “Disability” shall mean that the Executive is disabled within the meaning of the Company’s group long-term disability insurance policy.  If no long term disability insurance is in place, then Disability shall mean that the Executive, due to illness, accident, or other physical or mental incapacity, has been substantially unable to perform his duties under this Agreement for a period of at least six (6) consecutive months during the Term as established by the written opinion of a licensed independent physician selected by the Company.

 

(h)         Deemed Resignation.  Unless otherwise agreed to in writing by the Company and the Executive prior to the termination of the Executive’s employment, any termination of the Executive’s employment shall constitute an automatic resignation of the Executive as an officer of the Company and each affiliate of the Company, and an automatic resignation of the Executive from the board of directors or similar governing body of the Company or any affiliate of the Company and from the board of directors or similar governing body of any corporation, limited liability company or other entity in which the Company or any affiliate holds an equity interest and with respect to which board or similar governing body the Executive serves as the Company’s or such affiliate’s designee or other representative.

 

(i)            Clawback.  The Executive agrees and acknowledges that any and all compensation the Executive receives pursuant to this Agreement shall be subject to clawback by the Company in the event of a financial restatement or in such other circumstances as may be required by applicable law or as may be provided in any

 

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clawback policy that is adopted by the Company and is generally applicable to senior executives of the Company.

 

5.               Confidentiality and Non-Solicitation.

 

(a)         For purposes of this Agreement, “Confidential Information” means (i) communications, data, formulae and related concepts, business plans (both current and under development), profit and loss statements, spreadsheets, contact or distribution lists, non-public personnel lists, promotion and marketing programs, trade secrets, or any other confidential or proprietary business information relating to development programs, costs, revenues, marketing, trading, investments, sales activities, promotions, credit and financial data, financing methods, research, plans or the business and affairs of the Company; (ii) any other information which is to be treated as confidential or non-public because of any duty of confidentiality owed by the Company to a third party; and (iii) any other information which the Company shall, in the ordinary course, use and not release externally, except subject to restrictions on use and disclosure.  Notwithstanding the foregoing, Confidential Information does not include information that (A) is or becomes generally publicly available other than as a result, directly or indirectly, of the Executive’s disclosure or (B) is or becomes available to the Executive on a non-confidential basis from a source other than through the Company or its representatives, provided that such source is not bound by a confidentiality agreement with the Company or otherwise prohibited from transmitting the information to the Executive by a contractual or legal obligation.

 

(b)         The Executive acknowledges the trade secret status of the Confidential Information and that the Confidential Information constitutes a protectable business interest of the Company.  The Executive agrees (i) not to use or allow or help another to use or access (whether for compensation or not) any Confidential Information for himself or others (other than the Company); and (ii) not to take any Company material or reproductions (including but not limited to writings, correspondence, notes, drafts, records, invoices, technical and business policies, computer programs or disks) thereof from the Company’s offices at any time during or after the Executive’s employment by the Company, except as required in the execution of the Executive’s duties to the Company and then conditioned upon the prompt return of all originals and reproductions thereof (in whatever form).

 

(c)          During the Term and for a period of one (1) year thereafter, the Executive shall not, directly or indirectly, on behalf of himself or any other person or entity, without the prior written consent of the Company solicit or induce any employee of or consultant or service provider to the Company (each, a “Service Provider”) to leave the employ of or cease performing services for the Company, or engage in any plan or coordinate with any Service Provider to leave the employ of or cease performing services for the Company, or hire, participate with or attempt to participate with in any venture for any purpose any Service Provider or any Service Provider who has left the employment of or ceased to perform services for the Company within one year of the termination of such Service Provider’s services for the Company.

 

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(d)         The Executive acknowledges that any breach of his obligations under this Section 5 cannot be adequately compensated by damages in an action at law and may cause the Company great and irreparable injury and damage.  Accordingly, in the event that the Executive breaches or threatens to breach any provisions of this Section 5, then in addition to any other rights which the Company may have, the Company shall be entitled, without the necessity of (i) proving irreparable harm, (ii) establishing that monetary damages are inadequate or (iii) posting any bond or other security with respect thereto, to the remedies of injunction, specific performance and other equitable relief to redress any breach, and no proof of special damages shall be necessary for the enforcement of or for any action for breach of the Executive’s obligations.  In the event that a proceeding is brought in equity to enforce the provisions of this Section 5, the Executive shall not urge as a defense that there is an adequate remedy at law nor shall the Company be prevented from seeking any other remedies which may be available.  Nothing contained in this Section 5(d) shall be construed as a waiver by the Company of any other rights, including, without limitation, rights to damages or profits.

 

(e)          The Executive agrees that the period during which the covenants contained in this Section 5 shall be effective shall be computed by excluding from such computation any time during which the Executive is in violation of any provision of this Section 5.

 

(f)           The Company and the Executive agree that it was their intent to enter into a valid and enforceable agreement.  The Executive and the Company thereby acknowledge the reasonableness of the restrictions set forth in this Section 5, including the reasonableness of the duration as to time and the scope of activity restrained.  The Executive agrees that if any covenant contained in Section 5 of this Agreement is found by a court of competent jurisdiction to contain limitations as to time or scope of activity that are not reasonable and impose a greater restraint than is necessary to protect the goodwill or other business interests of the Company, then the court shall reform the covenant to the extent necessary to cause the limitations contained in the covenant as to time and scope of activity to be restrained to be reasonable and to impose a restraint that is not greater than necessary to protect the goodwill and other business interests of the Company and to enforce the covenants as reformed.

 

(g)          If the Executive’s employment with the Company is terminated for any reason, the Executive agrees to advise the Company of the name of the Executive’s new employer.  The Executive further agrees that the Company may notify any person or entity employing the Executive or evidencing an intention of employing the Executive of the existence and provisions of this Agreement.

 

6.               The Executive’s Representations.  The Executive represents to the Company that:

 

(a)         the execution, delivery and performance of this Agreement by the Executive do not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which the Executive is a party or by which he is bound;

 

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(b)         upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of the Executive, enforceable against him in accordance with its terms;

 

(c)          as of the Start Date, the Executive will not be a party to any agreement with any person, other than an agreement with the Company, restricting the use of another person’s confidential information or restricting the Executive from providing future employment, consulting or other service;

 

(d)         no prior or pending litigation, arbitration, investigation or other proceeding of any kind will prevent or hinder the Executive from performing his duties under this Agreement; and

 

(e)          the Executive has consulted with independent legal counsel regarding his rights and obligations under this Agreement and that he fully understands the terms and conditions contained herein.

 

7.               Change in Control.

 

(a)         Definitions.

 

(i)            For purposes of this Section 7, “Change in Control” means (I) any merger or consolidation of the Company with or into any other corporation or other entity or person, or any other corporate reorganization, in which the stockholders of the Company immediately prior to such consolidation, merger or reorganization, own less than a controlling interest in the surviving entity immediately after such consolidation, merger or reorganization; (II) any transaction or series of related transactions in which control of the Company is acquired by a person or group of persons acting together which would constitute a “group” for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended or any successor provisions thereto; or (III) a sale or other disposition of all or substantially all of the assets of the Company; provided that in no event will a Change in Control include any of the following transactions: (A) any consolidation, merger or similar transaction effected exclusively to change the domicile of the Company; (B) any transaction or series of transactions in which voting securities of the Company are issued principally for bona fide financing purposes or any successor or indebtedness or equity securities of the Company are cancelled or converted or a combination thereof, including, without limitation, an initial public offering or other offering of the Company’s capital stock; (C) any acquisition of such voting power by an individual or entity that, directly or indirectly, controls, is controlled by, or is under common control with, the Company; or (D) any transaction where control of the Company, the surviving parent entity or the entity to which all or substantially all of the Company’s assets are transferred in the transaction or series of transactions is controlled directly or indirectly by one or more Kaplan Parties.

 

(ii)         “Kaplan Party” means (a) Thomas S. Kaplan or Dafna Recanati Kaplan; (b) any spouse, parent, sibling or descendant (including by adoption) of either of the persons referred to in clause (a) above; (c) any trust created for the benefit of any of

 

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the persons described in clauses (a) or (b) above or any trust for the benefit of such trust; or (d) any person controlled by one or more of the persons referred to in clauses (a), (b) or (c)above.

 

(iii)      “Control” (including its correlative meanings, the terms “controlling,” “controlled by” and “under common control with”) means, with respect to any person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person, whether through the beneficial ownership of voting securities, by contract or otherwise.

 

(b)         Change in Control Severance Benefits.  If there is a Change in Control, and within one (1) year of such Change in Control, the Executive’s employment is terminated under the circumstances described in Sections 4(a) through 4(f) above, the Executive shall be entitled to the following: (I) if such termination is a termination by the Company without Cause pursuant to Section 4(a) or the Executive resigns for Good Reason pursuant to Section 4(b), the Company shall pay the Executive the Accrued Obligations and the Pro Rata Bonus and, in addition, subject to the provisions of Section 19, (A) an amount equal to twenty-four (24) months of the Executive’s Base Salary at the rate in effect on the date of termination or resignation, payable in a lump sum within sixty (60) calendar days of the date of termination or resignation; and (B) provided the Executive timely elects continuation coverage under COBRA, the Company shall also pay, on the Executive’s behalf, the portion of monthly premiums for the Executive’s group health insurance, including coverage for the Executive’s dependents, that the Company paid immediately prior to the date of termination or resignation, during the eighteen (18) month period following the date of termination or resignation, subject to the Executive’s continued eligibility for COBRA coverage.  The Company will pay for such COBRA coverage for eligible dependents only for those dependents who were enrolled immediately prior to the date of termination or resignation.  The Executive will continue to be required to pay that portion of the premium for the Executive’s health coverage, including coverage for the Executive’s eligible dependents, that the Executive was required to pay as an active employee immediately prior to the date of termination or resignation.  Notwithstanding the foregoing, in the event that under applicable guidance the reimbursement of COBRA premiums causes the Company’s group health plan to violate any applicable nondiscrimination rule, the parties agree to negotiate in good faith a mutually agreeable alternative arrangement; and (]I) if such termination is a termination or resignation under the circumstances described in Sections 4(c), 4(d), 4(e) or 4(f), the Executive shall be entitled to the compensation and benefits for which the Executive is eligible under such sections.

 

(c)          Termination Preceding Change in Control.  Notwithstanding the provisions of the above subsection 7(b), if the Executive’s employment with the Company is terminated by the Company without Cause within three (3) months preceding the occurrence of a Change in Control and such termination without Cause occurred in anticipation of a Change in Control at the request of the acquirer, the Executive shall be entitled to the payments and benefits described in the above subsection 7(b)(I).

 

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8.               Taxes.  Tue Company shall be entitled to withhold from any payment or benefit provided under this Agreement an amount sufficient to satisfy all federal, state and local income and employment tax withholding requirements.

 

9.               Notices.  Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, sent by reputable overnight courier service or mailed by first class mail, return receipt requested, to the recipient at the address below indicated:

 

Notices to the Executive:

 

Philip Pyle
 [***]
 [***]

 

Notices to the Company:

 

Sunshine Silver Mines Corporation
 370 17th Street, Suite 3800
 Denver, CO 80202
 USA
 Attention: Roger Johnson

 

or such other address or to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party.  Any notice under this Agreement shall be deemed to have been given when so delivered, sent or mailed.

 

10.        Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any action in any other jurisdiction, but this Agreement shall be reformed construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

11.        Complete Agreement.  This Agreement, together with the agreements referred to herein in Section 3(c), contains the entire agreement of the Parties hereto with respect to the terms and conditions of the Executive’s employment with the Company and activities following termination.  This Agreement supersedes any and all prior agreements and understandings, whether written or oral, between the Parties with respect to the terms and conditions of the Executive’s employment with the Company and activities following termination.  This Agreement may not be changed or modified except by an instrument in writing, signed by the Executive and a duly authorized officer of the Company.

 

12.        Counterparts.  This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

 

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13.        Successors and Assigns.  This Agreement is intended to bind and inure to the benefit of and be enforceable by the Executive, the Company and their respective heirs, personal representatives, executors and administrators, successors and assigns, except that the Executive may not assign his rights or delegate his duties or obligations hereunder without the prior written consent of the Company.

 

14.        Choice of Law.  All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of New Yok and the federal laws of the United States of America, without giving effect to any choice of law or conflict of law rules or provisions that would cause the application of the laws of any jurisdiction other than the State of New York and the federal laws of the United States of America.

 

15.        Dispute Resolution and Arbitration.  Subject to Section 5(d), the Parties shall attempt in good faith to resolve any dispute arising out of or relating to this Agreement promptly by negotiation.  If the matter has not been resolved within thirty (30) calendar days of a Party’s request for negotiation, either Party may initiate proceedings or arbitration only as provided herein.  Subject to Section 5(d), if any dispute arising out of or relating to this Agreement or the breach, termination or validity thereof has not been resolved by negotiation, such dispute shall be settled by binding arbitration in accordance with the then current rules of JAMS by a single independent and impartial arbitrator who is located in Denver, Colorado.  The arbitrator selected must have an expertise in the matter(s) in dispute.  Each party shall bear his/its own fees and costs; the fees, costs and all administrative expenses of arbitration shall be borne equally by the Company and the Executive.  The Parties understand and agree that the arbitration is subject to the rules of JAMS; that the arbitrator’s decision and award shall be final and binding as to all claims that were, or could have been, raised in arbitration; and that judgment upon the award rendered by the arbitrator may be entered in any court having competent jurisdiction.  Any award rendered hereunder may include an award of attorneys’ fees and costs but shall not include punitive damages.  The statute of limitations of the state of New York applicable to the commencement of a lawsuit shall apply to the commencement of an arbitration.

 

16.        Amendment and Waiver.  The provisions of this Agreement may be amended or waived only with the prior written consent of the Company and the Executive, and no course of conduct or course of dealing or failure or delay by any party hereto in enforcing or exercising any of the provisions of this Agreement shall affect the validity, binding effect or enforceability of this Agreement or be deemed to be an implied waiver of any provision of this Agreement.

 

17.        Survival.  In the event of the Executive’s termination of, or resignation from, employment, Sections 4, 5, 8, 9, 10, 13, 14, 15 and 16 shall survive and continue in full force to the extent necessary to enforce their terms.

 

18.        Jobs Act Compliance.

 

(a)         This Agreement is intended to provide payments that are exempt from or compliant with the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and related regulations and Treasury pronouncements (“Section 409A”), and the Agreement shall be interpreted accordingly.  Each payment under this

 

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Agreement is intended to be excepted from Section 409A, including, but not limited to, by compliance with the short-term deferral exception as specified in Treasury Regulation § l.409A-l(b)(4), and the provisions of this Agreement will be administered, interpreted and construed accordingly (or disregarded to the extent such provision cannot be so administered, interpreted, or construed).

 

(b)         All reimbursements or provision of in-kind benefits pursuant to this Agreement shall be made in accordance with Treasury Regulation§ l.409A-3(i)(I)(iv) such that the reimbursement or provision will be deemed payable at a specified time or on a fixed schedule relative to a _permissible payment event.  Specifically, the amount reimbursed or in-kind benefits provided under this Agreement during the Executive’s taxable year may not affect the amounts reimbursed or provided in any other taxable year (except that total reimbursements may be limited by a lifetime maximum under a group health plan), the reimbursement of an eligible expense shall be made on or before the last day of the Executive’s taxable year following the taxable year in which the expense was incurred, and the right to reimbursement or provision of in-kind benefit is not subject to liquidation or exchange for another benefit.

 

(c)          For all purposes of this Agreement, the Executive shall be considered to have terminated employment with the Company when the Executive incurs a “separation from service” with the Company within the meaning of Code Section 409A(a)(2XA)(i).

 

(d)         Notwithstanding any provision of this Agreement to the contrary, the parties agree that any benefit or benefits under this Agreement that the Company determines are subject to the suspension period under Code Section 409A(a)(2)(B) shall not be paid or commence until the first business day next following the earlier of (i) the date that is six months and one day following the date of the Executive’s termination of employment, (ii) the date of the Executive’s death or (iii) such earlier date as complies with the requirements of Section 409A.

 

19.        Release.  Any and all amounts payable and benefits or additional rights provided pursuant to Sections 4 and 7, other than (i) compensation accrued but unpaid as of the effective date of the Executive’s termination; (ii) accrued but unused vacation in accordance with Company policy; and (iii) all business expenses that were incurred but not reimbursed, shall only be payable if the Executive executes and delivers to the Company, within 60 days after termination of employment, in the Company’s standard form, a general release of all claims of the Executive up to the date of such release.

 

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

 

	
SUNSHINE SILVER MINES CORPORATION
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Stephen A. Orr
    	
 
    
	
 
    	
Name:
    	
Stephen A. Orr
    	
 
    
	
 
    	
Title:
    	
Executive Chairman
    	
 
    

 

	
/s/ Philip Pyle
    	
 
    
	
Philip Pyle — the   Executive
    	
 
    

 

13Exhibit 10.1

 

LOAN AND SECURITY AGREEMENT

 

THIS LOAN AND SECURITY AGREEMENT
is made and dated as of September 30, 2020 and is entered into by and among BICYCLE THERAPEUTICS PLC, a public limited company
organized under the laws of England and Wales (“Parent”), BICYCLETX LIMITED, a private company limited by shares organized
under the laws of England and Wales (“BicycleTx”), BICYCLERD LIMITED, a private company limited by shares organized
under the laws of England and Wales (“BicycleRD”), BICYCLE THERAPEUTICS INC., a Delaware corporation (“Bicycle
US”) and each of Parent’s Subsidiaries that delivers a Joinder Agreement pursuant to Section 7.13 of the Agreement
(hereinafter collectively referred to as “Borrowers” and each, “Borrower”), the several banks and other
financial institutions or entities from time to time parties to this Agreement (collectively, referred to as the “Lenders”)
and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and collateral agent for itself and
the Lenders (in such capacity, the “Agent”).

 

RECITALS

 

A.                
Borrowers have requested the Lenders make available to Borrowers a loan in an aggregate principal amount of up to Forty
Million and No/100 Dollars ($40,000,000) (the “Term Loan”); and

 

B.                 
The Lenders are willing to make the Term Loan on the terms and conditions set forth in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, each Loan Party, Agent and the Lenders
agree as follows:

 

SECTION 1. DEFINITIONS AND RULES OF CONSTRUCTION

 

1.1       Unless otherwise defined
herein, the following capitalized terms shall have the following meanings:

 

“Account Control Agreement(s)”
means any agreement entered into by and among the Agent, any Loan Party and a third party bank or other institution (including
a Securities Intermediary) in which any Loan Party maintains a Deposit Account or an account holding Investment Property and which
perfects Agent’s first priority security interest in the subject account or accounts, including as provided in the English
Security Documents.

 

“ACH Authorization” means
the ACH Debit Authorization Agreement in substantially the form of Exhibit H to the Disclosure Letter, which account numbers shall
be redacted for security purposes if and when filed publicly by Borrower.

 

“Acquisition” means any
transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of
all or substantially all of the assets of a Person, or of any business, line of business or division or other unit of operation
of a Person, (b) the acquisition of fifty percent (50%) or more of the Equity Interests of any Person, whether or not involving
a merger, consolidation or similar transaction with such other Person, or otherwise causing any Person to become a Subsidiary of
Borrower, or (c) the acquisition of, or the right to use, develop or sell (in each case, including through licensing), any product
that would constitute a Borrower Product upon acquisition.

 

     

     

    

 

“ADSs” means the American Depository Shares
of Parent, each representing one Ordinary Share.

 

“Advance(s)” means a Term Loan Advance.

 

“Advance Date” means the funding date of
any Advance.

 

“Advance Request” means a request
for an Advance submitted by any Borrower to Agent in substantially the form of Exhibit A to the Disclosure Letter, which account
numbers shall be redacted for security purposes if and when filed publicly by Borrower.

 

“Affiliate” means (a)
any Person that directly or indirectly controls, is controlled by, or is under common control with the Person in question, (b)
any Person directly or indirectly owning, controlling or holding with power to vote ten percent (10%) or more of the outstanding
voting securities of another Person, or (c) any Person ten percent (10%) or more of whose outstanding voting securities are directly
or indirectly owned, controlled or held by another Person with power to vote such securities. As used in the definition of “Affiliate,”
the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

 

“Agreement” means this Loan and Security
Agreement, as amended from time to time.

 

“Amortization Date” means
November 1, 2022; provided however, if the Interest Only Extension Conditions are satisfied, then May 1, 2023

 

“Anti-Corruption Laws”
means all laws, rules, and regulations of any jurisdiction applicable to Borrower or any of its Affiliates from time to time concerning
or relating to bribery or corruption, including without limitation the United States Foreign Corrupt Practices Act of 1977, as
amended, the UK Bribery Act 2010 and other similar legislation in any other jurisdictions.

 

“Anti-Terrorism Laws”
means any laws, rules, regulations or orders relating to terrorism or money laundering, including without limitation Executive
Order No. 13224 (effective September 24, 2001), the USA PATRIOT Act, the laws comprising or implementing the Bank Secrecy Act,
and the laws administered by OFAC.

 

“Blocked Person” means
any Person: (a) listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224, (b) a Person owned
or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions
of, Executive Order No. 13224, (c) a Person with which any Lender is prohibited from dealing or otherwise engaging in any transaction
by any Anti-Terrorism Law, (d) a Person that commits, threatens or conspires to commit or supports “terrorism” as defined
in Executive Order No. 13224, or (e) a Person that is named a “specially designated national” or “blocked person”
on the most current list published by OFAC or other similar list.

 

“Board of Directors” means
the board of directors or comparable governing body of such Person, or any subcommittee thereof, as applicable.

 

“Borrower
Products” means all products, software, service offerings, technical data or technology currently being designed, manufactured
or sold by any Loan Party or which any Loan Party intends to sell, license, or distribute in the future including any products
or service offerings under development, collectively, together with all products, software, service offerings, technical data
or technology that have been sold, licensed or distributed by any Loan Party since its incorporation or formation.

 

    2

     

    

 

“Business Day” means any
day other than Saturday, Sunday and any other day on which banking institutions in the State of California and London are closed
for business.

 

“Cash” means all cash, cash equivalents
and liquid funds.

 

“Change in Control”
means (i) any person or group of persons acting in concert gains direct or indirect control of the Parent or (ii) Parent ceases
to own one hundred percent (100%) of the Equity Interests of each of BicycleTx, BicycleRD and Bicycle US. For the purposes of this
definition:

 

		(a)	“control” of the Parent means:

 

		(i)	the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

 

		(A)	cast, or control the casting of, more than one-half of the maximum number of votes that might be
cast at a general meeting of the Parent;

 

		(B)	appoint or remove all, or the majority, of the directors or other equivalent officers of the Parent;
or

 

		(C)	give directions with respect to the operating and financial policies of the Parent with which the
directors or other equivalent officers of the Parent are obliged to comply; or

 

		(ii)	the holding beneficially of more than 50% of the issued share capital of the Parent (excluding
any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either
profits or capital).

 

		(b)	“acting in concert” means, a group of persons who, pursuant to an agreement
or understanding (whether formal or informal), actively co-operate, through the acquisition of shares in the Parent by any of them,
either directly or indirectly, to obtain or consolidate control of the Parent.

 

“Change in Law” means
the occurrence after the Closing Date or, with respect to any Lender, such later date on which such Lender becomes a party to this
Agreement of (a) the adoption of any law, rule or regulation or treaty, (b) any change in any law, rule or regulation or treaty
or in the administration, interpretation or application thereof by any Governmental Authority or (c) compliance by any Lender with
any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after
such date, provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection
Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules,
guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or
any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III,
shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.

 

“Closing Date” means the date of this Agreement.

 

    3

     

    

 

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

 

“Compliance Certificate”
means a compliance certificate in substantially the form attached hereto as Exhibit E.

 

“Contingent Obligation” means,
as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to (i) any Indebtedness,
lease, dividend, letter of credit or other obligation of another, including any such obligation directly or indirectly guaranteed,
endorsed, co-made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly
or indirectly liable; (ii) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services
issued for the account of that Person; and (iii) all obligations arising under any Hedging Agreement; provided, however, that the
term “Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary course of business.
The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount of the primary
obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the amount that would be required
to be shown as a liability on a balance sheet prepared in accordance with GAAP; provided, however, that such amount shall not in
any event exceed the maximum amount of the obligations under the guarantee or other support arrangement. For the avoidance of doubt,
no Permitted Equity Derivatives will be considered a Contingent Obligation of Borrower.

 

“Contribution Notice”
means a contribution notice issued by the UK Pensions Regulator under section 38 or section 47 of the Pensions Act 2004.

 

“Copyright License” means
any written agreement granting any right to use any Copyright or Copyright registration, now owned or hereafter acquired by any
Loan Party or in which any Loan Party now holds or hereafter acquires any interest.

 

“Copyrights” means all
copyrights, whether registered or unregistered, held pursuant to the laws of the United States of America, any State thereof, the
United Kingdom or of any other country.

 

“Deposit Accounts” means
any “deposit accounts,” as such term is defined in the UCC, and includes any checking account, savings account, or
certificate of deposit.

 

“Disclosure
Letter” means that certain letter, dated the date hereof, delivered by Parent to Agent.

 

“Due Diligence Fee” means
$30,000, which fee has been paid to the Lenders prior to the Closing Date, and shall be deemed fully earned on such date regardless
of the early termination of this Agreement.

 

“Dollars” means the lawful currency of the
United States of America.

 

“English Security Documents”
means the following documents, each in form and substance reasonably satisfactory to Agent: (a) that certain English-law Debenture,
dated as of the Closing Date, between the UK Loan Parties and the Agent, (b) that certain English-law Share Charge, dated as of
Closing Date, between Parent and the Agent, and (c) such other documents incidental to the foregoing documents as Agent may reasonably
determine necessary.

 

“Equity
Interests” means, with respect to any Person, the capital stock, partnership or limited liability company interest, or other
equity securities or equity ownership interests of such Person.

 

    4

     

    

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

“Excluded Accounts” means
(i) any Deposit Account that is used solely as a payroll account for the employees of any Loan Party or any of its Subsidiaries
or the funds in which consist solely of funds held in trust for any director, officer or employee of such Loan Party or Subsidiary
or any employee benefit plan maintained by such Loan Party or Subsidiary or funds representing deferred compensation for the directors
and employees of such Loan Party or Subsidiary, collectively not to exceed 150% of the amount to be paid in the ordinary course
of business in the then-next payroll cycle, (ii) escrow accounts, Deposit Accounts and trust accounts, in each case holding assets
that are pledged or otherwise encumbered as set forth on Schedule 1C to the Disclosure Letter or pursuant to clauses (vi), (xiv),
(xvii) or (xviii) of the definition of Permitted Liens (but only to the extent required to be excluded pursuant to the underlying
documents entered into in connection with such Permitted Liens in the ordinary course of business); (iii) accounts containing no
(zero) balance; (iv) any Deposit Account with a balance less than One Hundred Thousand Dollars ($100,000); provided, that the aggregate
balance of all such Deposit Accounts excluded pursuant to this clause (iv) shall at no time exceed Five Hundred Thousand Dollars
($500,000); and (v) prior to the lapse of any grace period set forth therein, accounts described in the Schedule 4.4 to the Disclosure
Letter.

 

“Facility Charge” means Two Hundred Thousand
and No/100 Dollars ($200,000).

 

“FDA means the U.S. Food and
Drug Administration or any successor thereto or any other comparable Governmental Authority.

 

“Financial Support Direction”
means a financial support direction issued by the UK Pensions Regulator under section 43 of the Pensions Act 2004.

 

“GAAP” means generally
accepted accounting principles in the United States, as in effect from time to time.

 

“Governmental Authority”
means the government of any nation or any political subdivision thereof, whether state, local, territory, province or otherwise,
and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supranational
bodies such as the European Union or the European Central Bank).

 

“Guaranty” means a Guaranty in a form reasonably
acceptable to Agent.

 

“Hedging Agreement” means
any interest rate exchange agreement, foreign currency exchange agreement, commodity price protection agreement or other interest
or currency exchange rate or commodity price hedging arrangement incurred by any Loan Party or any of its Subsidiaries not for
speculative purposes and entered into in the ordinary course of business.

 

“IND” means
an Investigational New Drug Application submitted to the FDA pursuant to 21 C.F.R. § 312 (or its successor regulation) requesting
authorization to initiate clinical trials in human subjects.

 

“Indebtedness”
means indebtedness of any kind, including (a) all indebtedness for borrowed money or the deferred purchase price of property
or services (excluding trade credit entered into in the ordinary course of business), including reimbursement and other
obligations with respect to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or
similar instruments, (c) all capital lease obligations, (d) equity securities of any Person subject to repurchase or
redemption other than at the sole option of such Person, (e) “earnouts”, purchase price adjustments, profit
sharing arrangements, deferred purchase money amounts and similar payment obligations or continuing obligations of any nature
arising out of purchase and sale contracts, and (f) all Contingent Obligations. For the avoidance of doubt, no Permitted
Equity Derivatives shall be considered Indebtedness of Borrower.

 

    5

     

    

 

“Insolvency Event” means, in
relation to an entity that: (a) such entity shall make an assignment for the benefit of creditors; (b) such entity shall be
unable to pay its debts as they become due, or be unable to pay or perform under the Loan Documents, or shall become
insolvent or is deemed to, or is declared to, be unable to pay its debts under any applicable law; (c) such entity shall file
a voluntary petition in bankruptcy; (d) such entity shall file any petition, answer, or document seeking for itself any
reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or
future statute, law or regulation pertinent to such circumstances; (e) such entity shall seek or consent to or acquiesce in
the appointment of any trustee, receiver, administrator or liquidator of such entity or of all or any substantial part (i.e.,
33-1/3% or more) of the assets or property of such entity; (f) such entity shall cease operations of its business as its
business has normally been conducted, or terminate substantially all of its employees; (g) such entity or its directors or
majority shareholders shall take any action initiating any of the foregoing actions described in clauses (a) through (e); (h)
(i) thirty (30) days shall have expired after the commencement of an involuntary action against such entity seeking
reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or
future statute, law or regulation, without such action being dismissed or all orders or proceedings thereunder affecting the
operations or the business of such entity being stayed, (ii) a stay of any such order or proceedings shall thereafter be set
aside and the action setting it aside shall not be timely appealed, (iii) such entity shall file any answer admitting or not
contesting the material allegations of a petition filed against such entity in any such proceedings, (iv) the court in which
such proceedings are pending shall enter a decree or order granting the relief sought in any such proceedings, or (v) thirty
(30) days shall have expired after the appointment, without the consent or acquiescence of such entity of any trustee,
receiver, administrator or liquidator of such entity or of all or any substantial part of the properties of such entity
without such appointment being vacated; (i) such entity is dissolved (other than pursuant to a consolidation or merger); (j)
such entity institutes or has instituted against it, by a regulator, supervisor or any similar official with primary
insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organization or the
jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief
under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for
its winding-up or liquidation by it or such regulator, supervisor or similar official; (k) such entity has instituted against
it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or
other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation, and, in
the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or
presented by a person or entity not described in paragraph (j) above and (i) results in a judgment of insolvency or
bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation, or (ii) is not
dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof; (l) such
entity suspends or threatens to suspend making payments on any of its debts; (m) by reason of actual or anticipated financial
difficulties, commences arrangements with one or more of its creditors (excluding Agent or Lender in its capacity as such) to
reschedule any of its indebtedness; (n) the value of the assets of such entity is less than its liabilities (taking into
account contingent and prospective liabilities); (o) a moratorium is declared in respect of all indebtedness of such entity;
(p) any corporate action, legal proceedings or other procedure or step is taken in relation to (i) the suspension of
payments, a moratorium of all indebtedness, winding-up, dissolution, administration or reorganization (by way of voluntary
arrangement, scheme of arrangement or otherwise) of such entity, (ii) a composition, compromise, assignment or arrangement
with the creditors of such entity generally, or (iii) the appointment of a liquidator, receiver, administrative receiver,
administrator, compulsory manager or other similar officer in respect of such entity or any of its assets or (iv) enforcement
over any material portion of the Collateral, or any analogous procedure or step is taken in any jurisdiction; provided this
clause (p) shall not apply to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed
within fourteen (14) days of commencement; (q) such entity causes or is subject to any event with respect to it which, under
the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (p)
above; or (r) such entity takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in,
any of the foregoing acts.

 

    6

     

    

 

“Insolvency Proceeding”
means any proceeding by or against any Person under the United States Bankruptcy Code, any Insolvency Event or any other bankruptcy
or insolvency law, including any UK Insolvency Event, assignments for the benefit of creditors, compositions, extensions generally
with its creditors, or proceedings seeking reorganization, arrangement, or other similar relief.

 

“Intellectual Property”
means all of each Loan Party’s Copyrights; Trademarks; Patents; Licenses; trade secrets and inventions; mask works; each
Loan Party’s applications therefor and reissues, extensions, or renewals thereof; and each Loan Party’s goodwill associated
with any of the foregoing, together with each Loan Party’s rights to sue for past, present and future infringement of Intellectual
Property and the goodwill associated therewith.

 

“Interest Only Extension Conditions”
shall mean satisfaction of each of the following events: (a) no default or Event of Default shall have occurred; and (b) Borrower
has achieved the Performance Milestone on or prior to October 31, 2022.

 

“Investment” means any
beneficial ownership (including shares, stock, partnership or limited liability company interests) of or in any Person, or any
loan (including Contingent Obligations), advance or capital contribution to any Person or any Acquisition.

 

“IRS” means the United States Internal Revenue
Service.

 

“Joinder Agreements” means
for each Subsidiary, a completed and executed (i) Joinder Agreement in substantially the form attached hereto as Exhibit F with
respect to Subsidiaries formed or organized under the laws of the United States of America, any state, commonwealth or territory
thereof, or the District of Columbia, or (ii) joinder documentation in form and substance reasonably satisfactory to Agent joining
such Subsidiary as a party under the English Security Documents, or similar security documents under the relevant jurisdictions,
as applicable, with respect to Subsidiaries organized outside of the United States or any of the foregoing jurisdictions.

 

“License” means any Copyright
License, Patent License, Trademark License or other license of rights or interests.

 

“Lien” means any mortgage, deed
of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien or charge of any kind, and
any other security interest or any other agreements or arrangement having a similar effect, whether voluntarily incurred or arising
by operation of law or otherwise, against any property, any conditional sale or other title retention agreement, and any lease
in the nature of a security interest.

 

“Loan” means the Advances made
under this Agreement.

 

    7

     

    

 

“Loan Documents” means
this Agreement, the promissory notes (if any), the ACH Authorization (if in effect), the Account Control Agreements, the Joinder
Agreements, all UCC Financing Statements, the Guaranty, the Pledge Agreement, the Disclosure Letter, each Process Letter, the English
Security Documents and any other documents executed in connection with the Secured Obligations or the transactions contemplated
hereby, as the same may from time to time be amended, modified, supplemented or restated.

 

“Loan Party” means each
Borrower and any guarantor under this Agreement or the other Loan Documents.

 

“Material Adverse Effect” means
a material adverse effect upon: (i) the business, operations, properties, assets or financial condition of the Loan Parties and
their Subsidiaries taken as a whole; or (ii) the ability of the Loan Parties, taken as a whole, to perform or pay the Secured Obligations
in accordance with the terms of the Loan Documents, or the ability of Agent or the Lenders to enforce any of its rights or remedies
with respect to the Secured Obligations; or (iii) the Collateral or Agent’s Liens on the Collateral or the priority of such
Liens.

 

“Maximum Term Loan Amount” means
Forty Million and No/100 Dollars ($40,000,000).

 

“Non-Core Intellectual
Property” means any Intellectual Property that is not material to Borrower’s business in Borrower’s
reasonable discretion.

 

“Non-Disclosure Agreement”
means that certain Non-Disclosure Agreement by and between BicycleTX and Agent dated as of July 13, 2020.

 

“OFAC” is the U.S. Department of Treasury
Office of Foreign Assets Control.

 

“OFAC Lists” are, collectively,
the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to Executive Order No. 13224, 66 Fed. Reg.
49079 (Sept. 25, 2001) and/or any other list of terrorists or other restricted Persons maintained pursuant to any of the rules
and regulations of OFAC or pursuant to any other applicable Executive Orders.

 

“Ordinary Shares” means the ordinary shares,
£0.01 par value per share, of Parent.

 

“Patent
License” means any written agreement granting any right with respect to any invention on which a Patent is in existence or
a Patent application is pending, in which agreement any Loan Party now holds or hereafter acquires any interest.

 

“Patents” means all letters
patent of, or rights corresponding thereto, in the United States of America or in any other country, all registrations and recordings
thereof, and all applications for letters patent of, or rights corresponding thereto, in the United States of America, the United
Kingdom or any other country.

 

“Performance
Milestone” means Borrower shall have provided evidence satisfactory to Agent that Borrower has achieved at least two of the
following: Performance Milestone I, Performance Milestone II, Performance Milestone III and Performance Milestone IV.

 

“Performance Milestone I”
means Borrower shall have provided evidence satisfactory to Agent that Borrower has either (a) dosed a first patient in an IND
controlled Phase 1 clinical evaluation of BT7480 (Nectin-4/CD137) or (b) dosed a first patient
in an IND controlled Phase 1 clinical evaluation of BT7455.

 

    8

     

    

 

“Performance
Milestone II” Borrower shall have provided evidence satisfactory to Agent that Borrower has publicly announced Positive Data
from the Phase 2 portion of the clinical trial studying BT1718, and such announcement shall not have been rescinded, revoked, or
amended.

 

“Performance Milestone III”
Borrower shall have provided evidence satisfactory to Agent that Borrower has either (a) publicly announced Positive Data from
Phase 1 clinical trial of BT5528 in patients with advanced solid tumors or (b) publicly announced Positive Data from Phase 1 clinical
trial of BT8009 in patients with advanced solid tumors and, in each case, such announcement shall not have been rescinded, revoked,
or amended.

 

“Performance Milestone IV”
Borrower shall have consummated a corporate business development transaction deemed by Agent to be validating in its reasonable
discretion.

 

“Permitted Acquisition”
shall mean any Acquisition (including by way of merger) either (i) upon Agent’s prior written consent, or (ii) which is
conducted in accordance with the following requirements:

 

(a)        such Acquisition is of a business
or Person engaged in a line of business similar, related, or complementary to lines of business of the Loan Parties or their Subsidiaries;

 

(b)        if such Acquisition is structured
as a stock acquisition, then the Person so acquired shall either (i) become a wholly-owned Subsidiary of a Loan Party and such
Loan Party shall comply with Section 7.13 hereof or (ii) such Person shall be merged with and into a Loan Party (with such Loan
Party being the surviving entity);

 

(c)        if such Acquisition is structured
as the acquisition of assets, such assets shall be acquired by a Loan Party;

 

(d)        Parent shall have delivered to Lender
not less than ten (10) nor more than forty five (45) days prior to the date of such Acquisition, notice of such Acquisition together
with pro forma projected financial information, copies of then-current drafts of all material documents relating to such acquisition,
and historical financial statements for such acquired entity (to the extent available), division or line of business, in each case
in form and substance satisfactory to Lender;

 

(e)        both immediately before and
immediately after such Acquisition no default or Event of Default shall have occurred and be continuing;

 

 (f)        acquisition in the ordinary course of business; and

 

(g)
      the sum of the purchase price consideration paid in cash in respect of such proposed
Acquisition, when taken together with all cash consideration paid in respect of earnouts, milestones and other similar
deferred purchase price consideration as and when paid, in each case by the Loan Parties with respect thereto, and including
the amount of Permitted Indebtedness assumed or to which such assets, businesses or business or ownership interest or shares,
or any Person so acquired, remain subject (excluding Indebtedness comprised of performance-based milestones, earnouts, or
royalties that qualify as Permitted Indebtedness pursuant to subsection (v) of the definition thereof), shall not be greater
than Forty Million Dollars ($40,000,000) for all such Acquisitions during the term of this Agreement with respect to cash
consideration; provided that no consideration shall be payable other than in cash or Equity Interests of any Loan Party.

 

    9

     

    

 

“Permitted Convertible Debt” means
Indebtedness of the Parent that is convertible into a fixed number (subject to customary anti- dilution adjustments, “make-whole”
increases and other customary changes thereto) of ADSs (or other securities or property following a merger event or other change
of the ADSs or Ordinary Shares), cash or any combination thereof (with the amount of such cash or such combination determined by
reference to the market price of such ADSs or such other securities); provided that such Indebtedness shall (a) not have
(i) any scheduled payment or mandatory prepayment of principal or (ii) a scheduled maturity date or any mandatory prepayments or
redemptions of principal (other than customary change of control, fundamental change or asset sale repurchase obligations and cash
payments in lieu of fractional shares upon the conversion or exchange thereof) at the option of the holder thereof, in each case
no earlier than one hundred eighty (180) days after the Term Loan Maturity Date, (b) be unsecured, (c) not be guaranteed by any
Subsidiary of Parent that is not a Loan Party, (d) contain usual and customary subordination terms for underwritten offerings of
senior subordinated convertible notes, (e) shall specifically designate this Agreement and all Secured Obligations as “designated
senior indebtedness” or similar term so that the subordination terms referred to in clause (d) of this definition specifically
refer to such notes as being subordinated to the Secured Obligations pursuant to such subordination terms, and (f) be on terms
and conditions customary for Indebtedness of such type, as determined in good faith by the Parent; provided further, that
any cross-default or cross-acceleration event of default (each howsoever defined) provision contained therein that relates to indebtedness
or other payment obligations of Parent (or any of its Subsidiaries) (such indebtedness or other payment obligations, a “Cross-Default
Reference Obligation”) contains a cure period of at least thirty (30) calendar days (after written notice to the issuer
of such Indebtedness by the trustee or to such issuer and such trustee by holders of at least 25% in aggregate principal amount
of such Indebtedness then outstanding) before a default, event of default, acceleration or other event or condition under such
Cross-Default Reference Obligation results in an event of default under such cross-default or cross-acceleration provision.

 

“Permitted Equity
Derivatives” means any forward purchase, accelerated share repurchase, call option, or warrant transactions in respect
of the Parent’s Equity Interests; provided, that (x) the terms, conditions and covenants of each such transaction shall
be customary for transactions of such type, as determined by Parent in good faith, (y) such transaction may, at the option of
Parent, be settled in Equity Interests of Parent and would be classified as an equity instrument in accordance with GAAP and
(z) such transaction is entered into contemporaneously and otherwise in connection with the issuance of Permitted Convertible
Debt and the aggregate net purchase price of (i) any such derivative transactions and (ii) any concurrent purchase of
Parent’s Equity Interests shall not exceed 15% of the gross proceeds to Parent from such issuance of Permitted
Convertible Debt.

 

“Permitted Indebtedness” means:

 

(i)          
Indebtedness of any Loan Party in favor of the Lenders or Agent arising under this Agreement or any other Loan Document;

 

(ii)        
Indebtedness existing on the Closing Date which is disclosed in Schedule 1A;

 

(iii)       
Indebtedness of up to Five Million Dollars ($5,000,000) outstanding at any time secured by a Lien described in clause (vii) of
the defined term “Permitted Liens,” provided such Indebtedness does not exceed the cost of the assets financed with
such Indebtedness;

 

(iv)       
Indebtedness to trade creditors incurred in the ordinary course of business;

 

    10

     

    

 

 

(v)      
Indebtedness that also constitutes a Permitted Investment and Indebtedness consisting of obligations under deferred or contingent
consideration arrangements (including, without duplication, earn-outs, milestone payments, royalties and other contingent or deferred
obligations as long as such obligations are not evidenced by any “seller notes” or similar Indebtedness in connection
with Permitted Acquisitions);

 

(vi)     
Subordinated Indebtedness;

 

(vii)     
reimbursement obligations in connection with letters of credit and cash management services and issued on behalf of a Borrower
or a Subsidiary thereof in an amount not to exceed Five Million Dollars ($5,000,000) at any time outstanding,

 

(viii)   
other unsecured Indebtedness in an amount not to exceed Three Million Dollars ($3,000,000) at any time outstanding,

 

(ix)      
intercompany Indebtedness as long as each of the obligor and the obligee under such Indebtedness is a Loan Party or a Subsidiary
that has executed a Joinder Agreement;

 

(x)       
any Permitted Convertible Debt not to exceed a principal amount of $350,000,000 at any one time outstanding;

 

(xi)     
obligations under any Hedging Agreement in an aggregate amount not to exceed One Million Dollars ($1,000,000) at any time
outstanding;

 

(xii)     
licenses permitted pursuant to clause (ii) of the definition of Permitted Transfers or otherwise permitted hereunder, to
the extent involving the incurrence of Indebtedness;

 

(xiii)   
Indebtedness incurred in the ordinary course of business with corporate credit cards, merchant cards, purchase cards and
debit cards in an aggregate amount, without duplication of any such Indebtedness incurred under clause (vii) of this definition,
not to exceed Five Hundred Thousand Dollars ($500,000) at any time outstanding; and

 

(xiv)   
extensions, refinancings and renewals of any items of Permitted Indebtedness, provided that the principal amount is not
increased or the terms modified to impose materially more burdensome terms upon Borrower or its Subsidiary, as the case may be.

 

“Permitted Investment” means:

 

(i)      
Investments existing on the Closing Date which are disclosed in Schedule 1B to the Disclosure Letter;

 

(ii)      (a)
marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any State
thereof maturing within one year from the date of acquisition thereof, (b) commercial paper maturing no more than one year
from the date of creation thereof and currently having a rating of at least A-2 or P-2 from either Standard &
Poor’s Corporation or Moody’s Investors Service, (c) certificates of deposit issued by any bank with assets of at
least $500,000,000 maturing no more than one year from the date of investment therein, (d) money market accounts, and (e)
other Investments described in Parent’s investment policy as approved by Agent in writing (it being understood that the
investment policy provided to Agent prior to the Closing Date shall be deemed approved in writing) and Parent’s Board
of Directors from time to time;

 

    11

     

    

 

(iii)     
repurchases of (A) shares or stock from former employees, directors, or consultants of Borrower under the terms of applicable
repurchase agreements at the original issuance price of such securities in an aggregate amount not to exceed $250,000 in any fiscal
year or (B) equity derivatives and stock repurchases (including without limitation by means of accelerated stock repurchase and
forward purchases) as permitted by Section 7.7, in each case provided that no Event of Default has occurred, is continuing or would
exist immediately after entry into the agreement governing such derivatives or stock repurchases;

 

(iv)     
Investments accepted in connection with Permitted Transfers;

 

(v)      
Investments (including Indebtedness) (a) received in connection with the bankruptcy or reorganization of customers or suppliers
and in settlement of delinquent or doubtful obligations of, and other disputes with, customers or suppliers arising in the ordinary
course of any Borrower’s business and (b) Investments consisting of the endorsement of negotiable instruments for deposit
or collection or similar transactions in the ordinary course of business;

 

(vi)     
Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers
who are not Affiliates, in the ordinary course of business, provided that this subparagraph (vi) shall not apply to Investments
of Borrower in any Subsidiary;

 

(vii)     
Investments by a Loan Party consisting of loans not involving the net transfer on a substantially contemporaneous basis of cash
proceeds to employees, officers or directors relating to the purchase of capital stock of such Loan Party pursuant to employee
share or stock purchase plans or other similar agreements approved by such Loan Party’s Board of Directors;

 

(viii)   
Investments consisting of travel advances, relocation loans, and other loan advances (or guarantees thereof) to employees,
officers and directors in the ordinary course of business;

 

(ix)     
Investments in (A) newly-formed Subsidiaries, provided that each such Subsidiary enters into a Joinder Agreement within
the time periods specified in Section 7.13 and executes such other related documents as shall be reasonably requested by Agent,
and (B) any Subsidiary that has entered into a Joinder Agreement or is otherwise a “Borrower” or “Guarantor”
under the Loan Documents pursuant to other documentation entered into by such Subsidiary and Agent;

 

(x)       
joint ventures or strategic alliances in the ordinary course of a Borrower’s business, provided that any cash Investments
by Borrowers or a Subsidiary of a Borrower in connection therewith do not exceed One Million Dollars ($1,000,000) in the aggregate
in any fiscal year;

 

(xi)      
Investments consisting of Permitted Acquisitions;

 

(xii)     
Hedging Agreements permitted under clause (xi) of the definition of Permitted Indebtedness;

 

    12

     

    

 

(xiii)   
Parent’s entry into (including payments of premiums in connection therewith), and the performance of obligations under,
any Permitted Equity Derivatives in accordance with their terms; and

 

(xiv)   
additional Investments that do not exceed Three Million Dollars ($3,000,000) in the aggregate.

 

“Permitted Liens” means:

 

(i)       
Liens in favor of Agent or the Lenders;

 

(ii)      
Liens existing on the Closing Date which are disclosed in Schedule 1C to the Disclosure Letter;

 

(iii)      
Liens for Taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in
good faith by appropriate proceedings; provided, that Borrower maintains adequate reserves therefor in accordance with GAAP (to
the extent required thereby);

 

(iv)     
Liens securing claims or demands of materialmen, artisans, mechanics, carriers, warehousemen, landlords and other like Persons
arising in the ordinary course of Borrower’s business and imposed without action of such parties; provided, that the payment
thereof is not yet sixty (60) days past due;

 

(v)      
Liens arising from judgments, decrees or attachments in circumstances which do not constitute an Event of Default hereunder;

 

(vi)     
deposits to secure the performance of obligations (including by way of deposits to secure letters of credit issued to secure
the same) under commercial supply and/or manufacturing agreements and the following deposits, to the extent made in the ordinary
course of business: deposits under worker’s compensation, unemployment insurance, social security and other similar laws,
or to secure the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure indemnity,
performance or other similar bonds for the performance of bids, tenders or contracts (other than for the repayment of borrowed
money) or to secure statutory obligations (other than Liens arising under ERISA or environmental Liens) or surety or appeal bonds,
or to secure indemnity, performance or other similar bonds;

 

(vii)     
Liens on Equipment or software or other intellectual property or assets constituting purchase money Liens and Liens in connection
with capital leases securing Indebtedness permitted in clause (iii) of “Permitted Indebtedness”;

 

(viii)   
Liens incurred in connection with Subordinated Indebtedness;

 

(ix)     
leasehold interests in leases or subleases and licenses or sublicenses granted in the ordinary course of business and not
interfering in any material respect with the business of the licensor;

 

(x)       
Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of custom duties that are
promptly paid on or before the date they become due;

 

    13

     

    

 

(xi)      
Liens on insurance proceeds securing the payment of financed insurance premiums that are promptly paid on or before the
date they become due (provided that such Liens extend only to such insurance proceeds and not to any other property or assets);

 

(xii)     
statutory and common law rights of set-off and other similar rights as to deposits of cash and securities in favor of banks,
other depository institutions and brokerage firms;

 

(xiii)   
easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the
ordinary course of business so long as they do not materially impair the value or marketability of the related property;

 

(xiv)   
(A) Liens on Cash securing obligations permitted under clause (vii) of the definition of Permitted Indebtedness and (B)
security deposits in connection with real property leases, the combination of (A) and (B) in an aggregate amount not to exceed
One Million Dollars ($1,000,000) at any time;

 

(xv)     
other Liens in an aggregate amount not to exceed One Million Dollars ($ 1,000,000) at any time; provided that such liens
be limited to specific assets and not all assets or substantially all assets of any Borrower;

 

(xvi)   
Liens incurred in connection with sales, transfers, licenses, sublicenses, leases, subleases or other dispositions of assets
in the ordinary course of business and permitted by Section 7.8 and, in connection therewith, customary rights and restrictions
contained in agreements relating to such transactions pending the completion thereof or during the term thereof, and any option
or other agreement to sell, transfer, license, sublicense, lease, sublease or dispose of an asset permitted by Section 7.8;

 

(xvii) 
 Liens on Cash securing obligations permitted under clause (xiii) of the definition of Permitted Indebtedness; and

 

(xviii)  
Liens incurred in connection with the extension, renewal or refinancing of the Indebtedness secured by Liens of the type
described in clauses (i) through (xvii) above; provided, that any extension, renewal or replacement Lien shall be limited to the
property encumbered by the existing Lien and the principal amount of the Indebtedness being extended, renewed or refinanced (as
may have been reduced by any payment thereon) does not increase.

 

“Permitted Transfers” means:

 

(i)       sales,
transfers or other dispositions of Inventory in the ordinary course of business,

 

    14

     

    

 

		(ii)	licenses, sublicenses, transfers and similar arrangements for the use of Intellectual Property and related assets in the ordinary
course of business, as well as in connection with business development transactions, including collaborations, licensing, partnering
or similar transactions with third parties (each, a “Collaboration/Licensing Transaction”) and that may be (a) non-exclusive,
(b) exclusive in respects other than territory or (c) exclusive as to territory (including on a worldwide basis) but only (x) as
to discreet geographical areas outside of the United States of America, (y) for Non-Core Intellectual Property and/or (z) with
respect to (1) a one or more specific disease indications, (2) one or more specific targets, or (3) one or more
specific assets or programs, whether or not (in the case of (1) and (2), such targets or disease indications are specified at the
time of entry into the Collaboration/Licensing Transaction; provided that, with respect to any Collaboration/Licensing Transaction
under the immediately foregoing clause (c), the following shall also be required (1) any exclusivity shall be limited to the specific
indication(s), target(s), asset(s) or program(s) to be developed by the counterparty under such Collaboration/Licensing Transaction,
or shall be limited only to diseases or indications outside oncology or hematological cancers (2) no such Collaboration/Licensing
Transaction can cover in scope an entire disease cohort (e.g. all of cancer) or group of diseases within oncology (including hematological
cancers), or targets, indications, assets or programs that together would substantially constitute an entire disease cohort or
an entire group of diseases within oncology (including hematological cancers), provided that for clarity, a grant of rights to
develop targets, programs or assets for a specified type of cancer (e.g. lung cancer) would not constitute an entire disease cohort
or group of diseases, but a grant of rights to “all cancers” or “all solid tumors” would not be a Permitted
Transfer, (3) no such Collaboration/Licensing Transaction, in itself and taken together with other Collaboration/Licensing Transactions,
shall prevent the Borrower from entering into similar Collaboration/Licensing Transactions with respect to the Borrower’s
core, platform Intellectual Property, and (4) no such Collaboration/Licensing Transaction shall exclusively license, dispose of
or limit the use of the Borrower’s core, platform Intellectual Property in a manner that would prevent Borrower from licensing
such Intellectual Property for other targets, indications, assets or programs.

 

		(iii)	transfers expressly permitted under Section 7.5, 7.6 or 7.7;

 

(iv)      
dispositions on terms and conditions not less favorable to the applicable Loan Party than those that would be obtained in
an arms-length transaction of worn-out, obsolete or surplus assets (including without limitation assets that any applicable Loan
Party has reasonably determined not to commercialize) at fair market value (as reasonably determined by Parent) or other consideration
set forth in any applicable put, call or similar right in any underlying licensing or similar documentation, in each case in the
ordinary course of business; and, notwithstanding the foregoing or anything to the contrary, any sales, transfers or other dispositions
of Intellectual Property permitted hereunder must be made in accordance with the terms of clause (ii) of this definition;

 

(v)      
the surrender, waiver or settlement of contractual rights in the ordinary course of business, or the surrender, waiver or settlement
of claims and litigation claims (whether or not in the ordinary course of business) as long as no Event of Default has occurred
and is continuing;

 

(vi)     
transfers of assets to any Loan Party in the ordinary course of business and in a manner that is not adverse to the interests
of the Lender;

 

(vii)     
the use of cash and cash equivalents subject to the restrictions and limitations set forth in the Loan Documents; and

 

(viii)    
other transfers of assets having a fair market value of not more than One Million Dollars ($1,000,000) in the aggregate
in any fiscal year.

 

    15

     

    

 

“Person” means any individual,
sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability
company, institution, other entity or government.

 

“Pledge Agreement” means the Pledge
Agreement dated as of the Closing Date between Borrower and Agent, as the same may from time to time be amended, restated, modified
or otherwise supplemented.

 

“Positive
Data” means, with respect to any Phase 1 or Phase 2 clinical trial, positive safety and efficacy results which, at Lender’s
reasonable discretion, support progression into the next immediate planned step in development.

 

“Qualified Cash” means
the amount of Borrowers’ Cash held in accounts subject to an Account Control Agreement in favor of Agent.

 

“Qualified Cash A/P Amount”
means the amount of Borrowers’ accounts payable under GAAP not paid after the 90th day following the invoice for such account
payable.

 

“Receivables”
means (i) all of each Loan Party’s Accounts, Instruments, Documents, Chattel Paper, Supporting Obligations, letters of credit,
proceeds of any letter of credit, and Letter of Credit Rights, and (ii) all customer lists, software, and business records related
thereto.

 

“Redemption Conditions”
means, with respect to any payment of cash in respect of the principal amount of any Permitted Convertible Debt, satisfaction of
each of the following events: (a) no default or Event of Default shall exist or result therefrom, and (b) both immediately before
and at all times after such redemption, Borrowers’ Qualified Cash shall be no less than 150% of the outstanding Secured Obligations
plus the Qualified Cash A/P Amount.

 

“Restricted License” means any
material License or other agreement with respect to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower
from granting a security interest in Borrower’s interest in such License or agreement or any other property, or (b) for which
a default under or termination of could interfere with the Agent’s right to sell any Collateral.

 

“Required Lenders” means
at any time, the holders of more than 50% of the sum of the aggregate unpaid principal amount of the Term Loans then outstanding.

 

“Requirement of Law” means,
as to any Person, the certificate of incorporation and by-laws or other organizational or governing documents of such Person, and
any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case
applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Sanctioned Country” means,
at any time, a country or territory which is the subject or target of any Sanctions.

 

“Sanctioned Person” means,
at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets
Control of the U.S. Department of the Treasury or the U.S. Department of State, or by the United Nations Security Council, the
European Union or any EU member state, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person
controlled by any such Person.

 

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“Sanctions” means economic
or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including
those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State,
or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom.

 

“SEC” means the Securities and Exchange
Commission.

 

“Secured Obligations”
means each Loan Party’s obligations under this Agreement and any Loan Document, including any obligation to pay any amount
now owing or later arising.

 

“Subordinated Indebtedness” means
Indebtedness subordinated to the Secured Obligations in amounts and on terms and conditions satisfactory to Agent in its sole discretion
and subject to a subordination agreement in form and substance satisfactory to Agent in its sole discretion.

 

“Subsequent Financing”
means any equity offering of Borrower’s securities for capital raising purposes consummated after the Closing Date which
results in aggregate proceeds to Borrower of at least $10,000,000.

 

“Subsidiary” means an
entity, whether a corporation, partnership, limited liability company, joint venture or otherwise, in which any Loan Party owns
or controls 50% or more of the outstanding voting securities, including each entity listed on Schedule 1 to the Disclosure Letter.

 

“Taxes” means all present
or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges
imposed by any governmental authority, including any interest, additions to tax or penalties applicable thereto.

 

“Term Commitment” means
as to any Lender, the obligation of such Lender, if any, to make a Term Loan Advance to Borrowers in a principal amount not to
exceed the amount set forth under the heading “Term Commitment” opposite such Lender’s name on Schedule 1.1.

 

“Term Loan Advance” means each
Tranche 1 Advance, Tranche 2 Advance, and any other Term Loan funds advanced under this Agreement.

 

“Term Loan Interest Rate”
means for any day a per annum rate of interest equal to the greater of either (i) 8.85% and (ii) the prime rate as reported in
The Wall Street Journal plus 5.60%.

 

“Term Loan Maturity Date”
means October 1, 2024; provided that if such day is not a Business Day, the Term Loan Maturity Date shall be the immediately preceding
Business Day.

 

“Trademark License” means
any written agreement granting any right to use any Trademark or Trademark registration, now owned or hereafter acquired by any
Loan Party or in which any Loan Party now holds or hereafter acquires any interest.

 

“Trademarks” means all
trademarks (registered, common law or otherwise) and any applications in connection therewith, including registrations, recordings
and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States of America,
any State thereof, the United Kingdom or any other country or any political subdivision thereof.

 

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“Tranche 1A Commitment” means
as to any Lender, the obligation of such Lender, if any, to make a Term Loan Advance to Borrowers in a principal amount not to
exceed the amount set forth under the heading “Tranche 1A Commitment” opposite such Lender’s name on Schedule
1.1.

 

“Tranche 1B Commitment” means
as to any Lender, the obligation of such Lender, if any, to make a Term Loan Advance to Borrowers in a principal amount not to
exceed the amount set forth under the heading “Tranche 1B Commitment” opposite such Lender’s name on Schedule
1.1.

 

“Tranche 2 Commitment”
means as to any Lender, the obligation of such Lender, if any, to make a Term Loan Advance to Borrowers in a principal amount not
to exceed the amount set forth under the heading “Tranche 2 Commitment” opposite such Lender’s name on Schedule
1.1.

 

“UCC” means the Uniform
Commercial Code as the same is, from time to time, in effect in the State of California; provided, that in the event that, by reason
of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, Agent’s
Lien on any Collateral is governed by the Uniform Commercial Code as the same is, from time to time, in effect in a jurisdiction
other than the State of California, then the term “UCC” shall mean the Uniform Commercial Code as in effect, from time
to time, in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority
or remedies and for purposes of definitions related to such provisions.

 

“UK” means the United Kingdom.

 

“UK Loan Party” means
Parent, BicycleTx, BicycleRD and any other Subsidiary incorporated in England and Wales.

 

“UK Pensions Regulator”
means the body corporate known as the Pensions Regulator and established by Part 1 of the UK Pensions Act 2004.

 

“UK Insolvency Event” means, in
relation to any UK Loan Party, (a) such entity (i) is unable or admits inability to pay its debts as they fall due, (ii) is deemed
to, or is declared to, be unable to pay its debts under applicable law, (iii) suspends or threatens to suspend making payments
on any of its debts, or (iv) by reason of actual or anticipated financial difficulties, commences negotiations with one or more
of its creditors (excluding the Lenders in their capacity as such) with a view to rescheduling any of its indebtedness; (b) the
value of the assets of such entity is less than its liabilities (taking into account contingent and prospective liabilities); (c)
a moratorium is declared in respect of any indebtedness of any such entity (and if a moratorium occurs, the ending of the moratorium
will not remedy any Event of Default caused by that moratorium); (d) any corporate action, legal proceedings or other procedure
or step is taken in relation to (i) the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration
or reorganization (by way of voluntary arrangement, scheme of arrangement or otherwise) of any such entity, (ii) a composition,
compromise, assignment or arrangement with any creditor of any such entity, (iii) the appointment of a liquidator, receiver, administrative
receiver, administrator, compulsory manager or other similar officer in respect of any such entity or any of such entity’s
assets, or (iv) enforcement of any Collateral over any assets of any such entity, or any analogous procedure or step is taken in
any jurisdiction.

 

“U.S. Person” means any
Person that is a “United States person” as defined in Section 7701(a)(30) of the Code.

 

    18

     

    

 

“VAT” means:

 

		i.	any tax imposed in compliance with the Council Directive of 28 November 2006 on the common
                                                               system of value added tax (EC Directive 2006/112);
		ii.	any tax imposed in compliance with the UK Value Added
Tax Act 1994; and
		iii.	any other tax of a similar nature to the taxes in (i) and ii above, whether imposed in a member state
of the European Union in substitution for, or levied in addition to, such tax referred to in paragraphs i or ii above, or imposed
elsewhere.

 

1.2              
The following terms are defined in the Sections or subsections referenced opposite such terms:

 

	Defined
    Term	Section
	Agent	Preamble
	Assignee	11.14
	Borrower	Preamble
	Claims	11.11
	Collateral	3.1
	Confidential Information	11.13
	Cross-Default Reference	Definition of “Permitted
	Obligation	Convertible Debt”
	End of Term Charge	2.6
	Event of Default	9
	Financial Statements	7.1
	Indemnified Person	6.3
	Lenders	Preamble
	Liabilities	6.3
	Maximum Rate	2.3
	Open Source License	5.11
	Participant Register	11.8
	Prepayment Charge	2.5
	Process Letter	Addendum 3
	Publicity Materials	11.19
	Register	11.7
	Regulation	5.16
	Rights to Payment	3.1
	Tranche 1A Advance	2.2(a)(i)
	Tranche 1B Advance	2.2(a)(ii)
	Tranche 1 Advance	2.2(a)(ii)
	Tranche 2 Advance	2.2(a)(iii)

 

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1.3
Unless otherwise specified, all references in this Agreement or any Annex or Schedule hereto to a “Section,”
“subsection,” “Exhibit,” “Annex,” or “Schedule” shall refer to the
corresponding Section, subsection, Exhibit, Annex, or Schedule in or to this Agreement or the Disclosure Letter, as
applicable. Unless otherwise specifically provided herein, any accounting term used in this Agreement or the other Loan
Documents shall have the meaning customarily given such term in accordance with GAAP, and all financial computations
hereunder shall be computed in accordance with GAAP, consistently applied. Unless otherwise defined herein or in the other
Loan Documents, terms that are used herein or in the other Loan Documents and defined in the UCC shall have the meanings
given to them in the UCC. For all purposes under the Loan Documents, in connection with any division or plan of division
under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation
or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed
to have been transferred from the original Person to the subsequent Person and (b) if any new Person comes into existence,
such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity
Interests at such time.

 

1.4 Currency Exchange.
For purposes of any determination under this Agreement measured in Dollars, all amounts incurred, outstanding or proposed to be
incurred or outstanding in currencies other than Dollars shall be translated into Dollars at the spot rate for the purchase of
Dollars for the applicable foreign currency as published in The Wall Street Journal in the “Exchange Rates” column
under the heading “Currency Trading” or as made available by any other source reasonably acceptable to the Agent on
the date of such determination; provided, however, that (a) for purposes of determining compliance with respect to the amount of
any Indebtedness, transfer, Investment, transaction permitted by Section 7.7 or judgment in a currency other than Dollars, no default
or Event of Default shall be deemed to have occurred as a result of changes in rates of exchange occurring after the time such
Indebtedness is incurred, or asset disposition, Investment or transaction permitted by Section 7.7 is made, or such judgment entered,
and (b) notwithstanding anything herein to the contrary, nothing in this paragraph changes, modifies or alters the obligations
of any Loan Party to pay all amounts owed hereunder in the Dollar amount required hereunder notwithstanding any changes or other
fluctuations with respect to any currency exchanged into Dollars.

 

SECTION 2. THE LOAN

 

2.1             [Reserved]

 

2.2            
Term Loan.

 

(a)               
Advances.

 

(i)                
Subject to the terms and conditions of this Agreement, the Lenders will severally (and not jointly) make in an amount not
to exceed its respective Tranche 1A Commitment, and Borrower agrees to draw, a Term Loan Advance of Fifteen Million and 00/100
Dollars ($15,000,000) on the Closing Date (the “Tranche 1A Advance”).

 

(ii)              
Subject to the terms and conditions of this Agreement, beginning on the Closing Date and continuing through March 15, 2021,
Borrower may request and the Lenders shall severally (and not jointly) make in an amount not to exceed its respective Tranche 1B
Commitment an additional Term Loan Advance in a principal amount of Fifteen Million and 00/100 Dollars ($15,000,000) (the “Tranche
1B Advance” and together with the Tranche 1A Advance, each a “Tranche 1 Advance”).

 

(iii)            
Subject to the terms and conditions of this Agreement, beginning on the date that Borrower achieves the Performance Milestone
and continuing through March 15, 2022, Borrower may request and the Lenders shall severally (and not jointly) make in an amount
not to exceed its respective Tranche 2 Commitment an additional Term Loan Advance in a principal amount of Ten Million and No/100
Dollars ($10,000,000) (the “Tranche 2 Advance”). The aggregate outstanding Term Loan Advances may be up to the Maximum
Term Loan Amount.

 

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(b)               
Advance Request. To obtain a Term Loan Advance, Borrower shall complete, sign and deliver an Advance Request at least one
(1) Business Day before the Closing Date and at least five (5) Business Days before each Advance Date other than the Closing Date
to Agent. The Lenders shall fund the Term Loan Advance in the manner requested by the Advance Request provided that each of the
conditions precedent to such Term Loan Advance is satisfied as of the requested Advance Date.

 

(c)               
Term Loan Interest Rate. The principal balance shall bear interest thereon from such Advance Date in an amount equal to
the product of the outstanding Term Loan principal balance multiplied by the Term Loan Interest Rate based on a year consisting
of 360 days, with interest computed daily based on the actual number of days elapsed. The Term Loan Interest Rate will float and
change on the day the prime rate changes from time to time.

 

(d)               
Payment. Borrowers will pay accrued but unpaid interest on each outstanding Term Loan Advance on the first Business Day
of each month, beginning the month after the Advance Date. Borrowers shall repay the aggregate Term Loan principal balance that
is outstanding on the day immediately preceding the Amortization Date, in equal monthly installments of principal and interest
(mortgage style) beginning on the Amortization Date and continuing on the first Business Day of each month thereafter until the
Secured Obligations (other than inchoate indemnity obligations) are repaid. Any remaining outstanding Term Loan principal balance,
together with any and all accrued but unpaid interest hereunder, shall be due and payable on the Term Loan Maturity Date. Subject
to Addendum 1, Borrowers shall make all payments under this Agreement without setoff, recoupment or deduction and regardless of
any counterclaim or defense. Borrowers shall wire in immediately available funds in Dollars to Agent or Lender, as applicable and
in each case as specified in writing by Agent or Lender, or Lender will initiate debit entries to Borrowers’ account as authorized
on the ACH Authorization, in each case (i) on each payment date of all periodic obligations payable to the Lenders under each Term
Loan Advance and (ii) reasonable and documented out-of-pocket legal fees and costs incurred by Agent or the Lenders in connection
with Section 11.12 of this Agreement; provided that with respect to clause (i) above, in the event that the Lenders or Agent informs
Borrower that the Lenders will not initiate a debit entry to Borrower’s account for a certain amount of the periodic obligations
due on a specific payment date, Borrower shall pay to the Lenders such amount of periodic obligations in full in immediately available
funds on such payment date; provided, further, that, with respect to clause (i) above, if the Lenders or Agent informs Borrower
that the Lenders will not initiate a debit entry as described above later than the date that is three (3) Business Days prior to
such payment date, Borrower shall pay to the Lenders such amount of periodic obligations in full in immediately available funds
on the date that is three (3) Business Days after the date on which the Lenders or Agent notifies Borrower of such; provided, further,
that, with respect to clause (ii) above, in the event that the Lenders or Agent informs Borrower that the Lenders will not initiate
a debit entry to Borrower’s account for certain amount of such out-of-pocket legal fees and costs incurred by Agent or the
Lenders, Borrower shall pay to the Lenders such amount in full in immediately available funds within three (3) Business Days.

 

2.3                Maximum
Interest. Notwithstanding any provision in this Agreement or any other Loan Document, it is the parties’ intent not to
contract for, charge or receive interest at a rate that is greater than the maximum rate permissible by law that a court of
competent jurisdiction shall deem applicable hereto (which under the laws of the State of California shall be deemed to be
the laws relating to permissible rates of interest on commercial loans) (the “Maximum Rate”). If a court of
competent jurisdiction shall finally determine that Borrowers have actually paid to the Lenders an amount of interest in
excess of the amount that would have been payable if all of the Secured Obligations had at all times borne interest at the
Maximum Rate, then such excess interest actually paid by Borrowers shall be applied as follows: first, to the payment of the
Secured Obligations consisting of the outstanding principal; second, after all principal is repaid, to the payment of the
Lenders’ accrued interest, costs, expenses, professional fees and any other Secured Obligations; and third, after all
Secured Obligations are repaid, the excess (if any) shall be refunded to Borrower.

 

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2.4               
Default Interest. In the event any payment is not paid on the scheduled payment date (other than a failure to pay due solely
to an administrative or operational error of Agent or Lender or any Loan Party’s bank if such Loan Party had the funds to
make the payment when due and makes the payment within three (3) Business Days following such Loan Party’s knowledge of such
failure to pay), an amount equal to five percent (5%) of the past due amount shall be payable on demand. In addition, upon the
occurrence and during the continuation of an Event of Default hereunder, all Secured Obligations, including principal, interest,
compounded interest, and professional fees, shall bear interest at a rate per annum equal to the rate set forth in Section 2.2(c)
plus five percent (5%) per annum. In the event any interest is not paid when due hereunder, delinquent interest shall be added
to principal and shall bear interest on interest, compounded at the rate set forth in Section 2.2(c) or Section 2.4, as applicable.

 

2.5                Prepayment.
At its sole option upon at least seven (7) Business Days prior notice to Agent, a Borrower (on behalf of itself and all other
Borrowers) may prepay all or any portion greater than or equal to Five Million Dollars ($5,000,000) of the outstanding
Advances by paying the entire principal balance (or such portion thereof), all accrued and unpaid interest with respect to
the principal balance being prepaid, plus all fees and other amounts owing under the Loan Documents at such time, together
with a prepayment charge equal to the following percentage of the Advance amount being prepaid if such Advance amounts are
prepaid on or prior to the first anniversary of the Closing Date, 2.0%; after the first anniversary of the Closing Date but
on or prior to the second anniversary of the Closing Date, 1.50%; and thereafter, 1.0% (each, a “Prepayment
Charge”). If at any time a Borrower elects to make a prepayment, and at such time, there are outstanding Advances under
multiple Tranches, the Prepayment Charge shall be determined by applying the amount of such prepayment in the following
order: First, to the outstanding principal amount (and accrued but unpaid interest thereon) of Advances outstanding under the
Tranche with the latest initial funding date; second, to the outstanding principal amount (and accrued but unpaid interest
thereon) of Advances outstanding under the Tranche with the next latest initial funding date and so on until the entire
principal balance of all Advances made hereunder (and all accrued but unpaid interest thereon) is paid in full. Borrowers
agree that the Prepayment Charge is a reasonable calculation of the Lenders’ lost profits in view of the difficulties
and impracticality of determining actual damages resulting from an early repayment of the Advances. Borrowers shall prepay
the outstanding amount of all principal and accrued interest of all Advances plus all other fees and amounts owing under the
Loan Documents through the prepayment date and the Prepayment Charge upon the occurrence of a Change in Control.
Notwithstanding the foregoing, Agent and the Lenders agree to waive the Prepayment Charge if Agent and a Lender or any
affiliate of Agent or a Lender (in its sole discretion) agree in writing to refinance the Advances prior to the Term Loan
Maturity Date. Any amounts paid under this Section after the occurrence of an event of default shall be applied by Agent to
the then unpaid amount of any Secured Obligations (including principal and interest) in such order and priority as Agent may
choose in its sole discretion. In connection with any prepayment of all outstanding Secured Obligations in accordance with
the terms herein (other than inchoate indemnity obligations and any other obligations that survive the term of this
agreement), Agent and Lender shall terminate this Agreement and the Term Commitments upon such repayment of all outstanding
Secured Obligations by written notice to Agent and Lender.

 

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2.6               
End of Term Charge.

 

(a)               
On any date that Borrowers partially prepay the outstanding Secured Obligations pursuant to Section 2.5, Borrowers shall
pay the Lenders a charge of five percent (5.0%) of such Term Loan Advances being prepaid.

 

(b)               
On the earliest to occur of (i) the Term Loan Maturity Date, (ii) the date that Borrower prepays the outstanding Secured Obligations
(other than any inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination
of this Agreement) in full, or (iii) the date that the Secured Obligations become due and payable in accordance with this Agreement,
Borrower shall pay the Lenders a charge of (x) the greater of (A) $1,500,000 and (B) five percent (5.0%) of the aggregate principal
amount of Advances funded minus (y) the aggregate amount of payments made pursuant to Section 2.6(a) (collectively with
any charge made pursuant to Section 2.6(a), the “End of Term Charge”). Notwithstanding the required payment date of
such End of Term Charge, the applicable pro rata portion of the End of Term Charge shall be deemed earned by the Lenders as of
the date a Term Loan Advance is made.

 

2.7              
Pro Rata Treatment. Each payment (including prepayment) on account of any fee and any reduction of the Term Loan Advances
shall be made pro rata according to the Term Commitments of the relevant Lender.

 

2.8              
Taxes; Increased Costs. The Loan Parties, the Agent and the Lenders each hereby agree to the terms and conditions set forth
on Addendum 1 attached hereto.

 

2.9               Treatment
of Prepayment Charge and End of Term Charge. Each Loan Party agrees that any Prepayment Charge and any End of Term Charge
payable prior to the Term Loan Maturity Date shall be presumed to be the liquidated damages sustained by each Lender as the
result of the early termination, and each Loan Party agrees that it is reasonable under the circumstances currently existing
and existing as of the Closing Date. The Prepayment Charge and the End of Term Charge shall also be payable in the event the
Secured Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power of judicial
proceeding), deed in lieu of foreclosure, or by any other means. Each Loan Party expressly waives (to the fullest extent it
may lawfully do so) the provisions of any present or future statute or law that prohibits or may prohibit the collection of
the foregoing Prepayment Charge and End of Term Charge in connection with any such acceleration. Each Loan Party agrees (to
the fullest extent that each may lawfully do so): (a) each of the Prepayment Charge and the End of Term Charge is reasonable
and is the product of an arm’s length transaction between sophisticated business people, ably represented by counsel;
(b) each of the Prepayment Charge and the End of Term Charge shall be payable notwithstanding the then prevailing market
rates at the time payment is made; (c) there has been a course of conduct between the Lenders and each Loan Party giving
specific consideration in this transaction for such agreement to pay the Prepayment Charge and the End of Term Charge as a
charge (and not interest) in the event of prepayment or acceleration; (d) each Loan Party shall be estopped from claiming
differently than as agreed to in this paragraph. Each Loan Party expressly acknowledges that their agreement to pay each of
the Prepayment Charge and the End of Term Charge to the Lenders as herein described was on the Closing Date and continues to
be a material inducement to the Lenders to provide the Term Loans.

 

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SECTION 3. SECURITY INTEREST

 

3.1              
As security for the prompt and complete payment when due (whether on the payment dates or otherwise) of all the Secured
Obligations, each Loan Party grants to Agent a security interest in all of such Loan Party’s right, title, and interest
in and to the following personal property whether now owned or hereafter acquired (collectively, the “Collateral”):
(a) Receivables; (b) Equipment; (c) Fixtures; (d) General Intangibles (other than Intellectual Property); (e) Inventory; (f) Investment
Property; (g) Deposit Accounts; (h) Cash; (i) Goods; and (j) all other tangible and intangible personal property of such Loan
Party whether now or hereafter owned or existing, leased, consigned by or to, or acquired by, such Loan Party and wherever located,
and any of such Loan Party’s property in the possession or under the control of Agent; and, to the extent not otherwise
included, all Proceeds of each of the foregoing and all accessions to, substitutions and replacements for, and rents, profits
and products of each of the foregoing. The Collateral shall not include Intellectual Property; provided, however, the Collateral
shall include all Accounts and General Intangibles that consist of rights to payment and proceeds from the sale, licensing or
disposition of all or any part, or rights in, the Intellectual Property (the “Rights to Payment”). Notwithstanding
the foregoing, if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual
Property is necessary to have a security interest in the Rights to Payment, then the Collateral shall automatically, and effective
as of the date of this Agreement, include the Intellectual Property to the extent necessary to permit perfection of Agent’s
security interest in the Rights to Payment.

 

3.2               
Notwithstanding the broad grant of the security interest set forth in Section 3.1, above, the UCC Collateral shall not
include (i) any property, right or asset held by any Loan Party to the extent that a grant of a security interest therein is
prohibited by any Requirement of Law of a Governmental Authority or constitutes a breach or default under or results in the
termination of or requires any consent not obtained under, any contract, license, agreement, instrument or other document
evidencing or giving rise to such property, right or asset, except (A) to the extent that the terms in such contract,
license, instrument or other document providing for such prohibition, breach, default or termination, or requiring such
consent are not permitted under this Agreement or (B) to the extent that such Requirement of Law or the term in such
contract, license, agreement, instrument or other document providing for such prohibition, breach, default or termination or
requiring such consent is ineffective under Section 9406, 9407, 9408 or 9409 of the UCC (or any successor provision or
provisions) of any relevant jurisdiction or any other applicable law (including the Bankruptcy Code of the United States);
provided, however, that such security interest shall attach immediately at such time as such Requirement of Law is not
effective or applicable, or such prohibition, breach, default or termination is no longer applicable or is waived, and to the
extent severable, shall attach immediately to any portion of the Collateral that does not result in such consequences, (ii)
any Excluded Accounts, (iii) the assets of any non-wholly owned subsidiaries pursuant to customary restrictions and
conditions contained in agreements governing joint ventures or strategic alliances in the ordinary course of business,
provided that the applicable Loan Party has exercised its good faith best efforts to not agree to such contractual
limitations; and (iv) interests in joint ventures that constitute Permitted Investments pursuant to customary restrictions
and conditions contained in agreements governing such joint ventures in the ordinary course of business, provided that the
applicable Loan Party has exercised its good faith best efforts to not agree to such contractual limitations.

 

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3.3                If this Agreement is terminated
in accordance with its terms, Agent’s Lien in the Collateral shall continue until the Secured Obligations (other than inchoate
indemnity obligations) are paid in full in accordance with the terms of this Agreement. At such time, the Collateral shall be released
from the Liens created hereby, this Agreement and all obligations (other than those expressly stated to survive such termination)
of the Agent, Lender and each Loan Party hereunder shall terminate. Agent shall execute such documents, return any Collateral held
by Agent hereunder and take such other steps as are reasonably necessary to accomplish the foregoing, all at the Loan Parties’
sole cost and expense.

 

SECTION 4. CONDITIONS PRECEDENT TO LOAN

 

The obligations of the Lenders
to make the Loan hereunder are subject to the satisfaction by Borrowers of the following conditions:

 

4.1              Initial Advance. On or prior
to the Closing Date, Borrower shall have delivered to Agent the following:

 

(a)               
other than as permitted pursuant to Schedule 4.4 of the Disclosure Letter, executed copies of the Loan Documents, Account
Control Agreements, and all other documents and instruments reasonably required by Agent, that are required to be delivered on
the Closing Date, to effectuate the transactions contemplated hereby or to create and perfect the Liens of Agent with respect to
all Collateral, in all cases in form and substance reasonably acceptable to Agent;

 

(b)               
a legal opinion of Borrowers’ United States and Agent’s English counsel in form and substance reasonably acceptable
to Agent;

 

(c)               
certified copy of resolutions of each Loan Party’s Board of Directors evidencing approval of the Loan and other transactions
evidenced by the Loan Documents;

 

(d)              
certified copies of the constitutional documents and the bylaws, as amended through the Closing Date, of each Loan Party;

 

(e)               
other than in respect of a UK Loan Party, a certificate of good standing (or equivalent thereof) for each Loan Party from
its jurisdiction of organization and similar certificates from all other jurisdictions in which it does business and where the
failure to be qualified would have a Material Adverse Effect;

 

(f)                
payment of the Due Diligence Fee, Facility Charge and reimbursement of Agent’s and Lender’s current expenses
reimbursable pursuant to this Agreement, which amounts may be deducted from the initial Advance;

 

(g)               
[reserved];

 

(h)               
in respect of each UK Loan Party, a certificate signed by a director (i) confirming that borrowing or guaranteeing or securing,
as appropriate, the Term Commitment would not cause any borrowing, guarantee, security or similar limit binding on any Loan Party
to be exceeded and (ii) certifying that each copy document relating to it specified in this Section 4.1 is correct, complete and
in full force and effect and has not been amended or superseded as at a date no earlier than the date of this Agreement; and

 

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		(i)	such other documents as Agent may reasonably request.

 

4.2              
All Advances. On or prior to each Advance Date:

 

(a)               
Agent shall have received (i) an Advance Request for the relevant Advance as required by Section 2.2(b), each duly executed
by a Borrower’s Chief Executive Officer or Chief Financial Officer or any other duly authorized officer or director, and
(ii) any other documents Agent may reasonably request in its good faith business judgment.

 

(b)               
The representations and warranties set forth in this Agreement shall be true and correct in all material respects on and
as of the Advance Date with the same effect as though made on and as of such date, except to the extent such representations and
warranties expressly relate to an earlier date.

 

(c)               
The Loan Parties shall be in compliance with all the terms and provisions set forth herein and in each other Loan Document
on its part to be observed or performed, and at the time of and immediately after such Advance no Event of Default shall have occurred
and be continuing.

 

(d)               
[RESERVED].

 

(e)               
Each Advance Request shall be deemed to constitute a representation and warranty by such Borrower on the relevant Advance
Date as to the matters specified in paragraphs (b) and (c) of this Section 4.2 and as to the matters set forth in the Advance Request.

 

4.3               
No Default. As of the Closing Date and each Advance Date, (i) no fact or condition exists that would (or would, with the
passage of time, the giving of notice, or both) constitute an Event of Default and (ii) no event that has had or would reasonably
be expected to have a Material Adverse Effect has occurred and is continuing.

 

4.4               
Post-Close Obligations. Each Loan Party agrees to deliver all items as required under Schedule 4.4 to the Disclosure Letter.

 

SECTION 5. REPRESENTATIONS AND WARRANTIES OF
THE LOAN PARTIES

 

Each Loan Party represents and warrants that:

 

5.1                 Corporate Status. Each Loan
Party is duly incorporated and/or organized, legally existing and, where applicable, in good standing under the laws of (a) England
and Wales (with respect to each UK Loan Party), and (b) Delaware (with respect to Bicycle US), as applicable, and is duly qualified
as a foreign corporation or other entity in all jurisdictions in which the nature of its business or location of its properties
require such qualifications and where the failure to be qualified would reasonably be expected to have a Material Adverse Effect.
Each Loan Party’s present name, former names (if any), locations, place of formation, tax identification number, organizational
identification number and other information are correctly set forth in Exhibit B to the Disclosure Letter, as may be updated by
the Loan Parties in a written notice (including any Compliance Certificate) provided to Agent after the Closing Date.

 

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5.2              
Collateral. Each Loan Party owns the Collateral and the Intellectual Property, free of all Liens, except for Permitted Liens.
Each Loan Party has the power and authority to grant to Agent a Lien in the Collateral as security for the Secured Obligations.

 

5.3              
Consents. Each Loan Party’s execution, delivery and performance of this Agreement and all other Loan Documents, (i)
have been duly authorized by all necessary corporate action of such Loan Party, (ii) will not result in the creation or imposition
of any Lien upon the Collateral, other than Permitted Liens and the Liens created by this Agreement and the other Loan Documents,
(iii) do not violate any provisions of such Loan Party’s constitutional documents, or other organizational or governing documents
(as applicable), bylaws, or any law, regulation, order, injunction, judgment, decree or writ to which such Loan Party is subject
and (iv) do not violate any material contract or material agreement or require the consent or approval of any other Person which
has not already been obtained. The individual or individuals executing the Loan Documents are duly authorized to do so.

 

5.4              
Material Adverse Effect. No event that has had or would reasonably be expected to have a Material Adverse Effect has occurred
and is continuing. No Loan Party is aware of any event likely to occur that is reasonably expected to result in a Material Adverse
Effect.

 

5.5              
Actions Before Governmental Authorities. There are no actions, suits or proceedings at law or in equity or by or before
any Governmental Authority now pending or, to the knowledge of any Loan Party, threatened in writing against any Loan Party or
its property, that is reasonably expected to result in a Material Adverse Effect.

 

5.6              
Laws. No Loan Party nor any of its Subsidiaries is in violation of any law, rule or regulation, or in default with respect
to any judgment, writ, injunction or decree of any Governmental Authority, where such violation or default is reasonably expected
to result in a Material Adverse Effect. No Loan Party is in default in any manner under any provision of any agreement or instrument
evidencing material Indebtedness, or any other material agreement to which it is a party or by which it is bound.

 

No Loan Party nor any of its Subsidiaries
is required to register as an “investment company” or a company “controlled” by an “investment company”
under the Investment Company Act of 1940, as amended. No Loan Party nor any of its Subsidiaries is engaged as one of its important
activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Each
Loan Party and each of its Subsidiaries has complied in all material respects with the Federal Fair Labor Standards Act. No Loan
Party nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company”
or a “subsidiary company” of a “holding company” as each term is defined and used in the Public Utility
Holding Company Act of 2005. No Loan Party’s nor any of its Subsidiaries’ properties or assets has been used by such
Loan Party or such Subsidiary or, to any Loan Party’s knowledge, by previous Persons, in disposing, producing, storing, treating,
or transporting any hazardous substance other than in material compliance with applicable laws. Each Loan Party and each of its
Subsidiaries has obtained all material consents, approvals and authorizations of, made all declarations or filings with, and given
all notices to, all Governmental Authorities that are necessary to continue their respective businesses as currently conducted.

 

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No Loan Party, nor any of its
Subsidiaries, or to any Loan Party’s knowledge any of its or its Subsidiaries’ Affiliates or any of their
respective agents acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement is
(i) in violation of any Anti- Terrorism Law, (ii) engaging in or conspiring to engage in any transaction that evades or
avoids, or has the purpose of evading or avoiding or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law, or (iii) is a Blocked Person. No Loan Party, nor any of its Subsidiaries, or to the knowledge of any Loan
Party, any of their Affiliates or agents, acting or benefiting in any capacity in connection with the transactions
contemplated by this Agreement, (x) conducts any business or engages in making or receiving any contribution of funds, goods
or services to or for the benefit of any Blocked Person, or (y) deals in, or otherwise engages in any transaction relating
to, any property or interest in property blocked pursuant to Executive Order No. 13224, any similar executive order or other
Anti-Terrorism Law. None of the funds to be provided under this Agreement will be used, directly or indirectly, (a) for any
activities in violation of any applicable anti-money laundering, economic sanctions and anti-bribery laws and regulations
laws and regulations or (b) for any payment to any governmental official or employee, political party, official of a
political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as
amended.

 

5.7              
Information Correct and Current. No written information, report, Advance Request, financial statement, exhibit or schedule
furnished, by or on behalf of any Loan Party to Agent in connection with any Loan Document or included therein or delivered pursuant
thereto contained, or, when taken as a whole, contains or will contain any material misstatement of fact or, when taken together
with all other such written information or documents, omitted, omits or will omit to state any material fact necessary to make
the statements therein, in the light of the circumstances under which they were, are or will be made, not materially misleading
at the time such statement was made or deemed made. Additionally, any and all financial or business projections provided by the
Loan Parties to Agent, whether prior to or after the Closing Date, shall be (i) provided in good faith and based on the most current
data and information available to the Loan Parties at the time prepared, and (ii) the most current of such projections provided
to such Loan Party’s Board of Directors (it being understood that such projections are subject to significant uncertainties
and contingencies, many of which are beyond the control of the Loan Parties, that no assurance is given that any particular projections
will be realized, that actual results may differ).

 

5.8              
Tax Matters. Except those being contested in good faith and for which adequate reserves are maintained in accordance with
GAAP, (a) each Loan Party (and each of its Subsidiaries) has filed all material federal, state, local and non-U.S. Tax returns
that it is required to file, (b) each Loan Party (and each of its Subsidiaries) has duly paid all material Taxes or installments
thereof (including any interest or penalties), (c) each Loan Party (and each of its Subsidiaries) has paid or fully reserved for
any material Tax assessment received by it which remains unpaid, if any (including any Taxes being contested in good faith and
by appropriate proceedings), and (d) to the best of each Loan Party’s (or any of its Subsidiaries’, as applicable)
knowledge, no proposed or pending Tax assessments, deficiencies, audits or other proceedings with respect to any Loan Party (or
any of its Subsidiaries) have had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect.

 

5.9              
No filing or Stamp Taxes. Under the laws of the Loan Parties’ jurisdictions of incorporation it is not necessary that
the Loan Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration,
notarial or similar Taxes or fees be paid on or in relation to the Loan Documents or the transactions contemplated by the Loan
Documents.

 

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5.10               
Intellectual Property Claims. Each Loan Party is the sole owner of, or otherwise has the right to use, the Intellectual
Property material to its business. Except as described on Schedule 5.10 to the Disclosure Letter (as may be supplemented by disclosures
provided in the Compliance Certificate), (i) each of the material Copyrights, Trademarks and Patents is valid and enforceable,
(ii) no material part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and (iii) no
written claim has been made to a Loan Party that any material part of the Intellectual Property violates the rights of any third
party. Exhibit C to the Disclosure Letter is a true, correct and complete list of the Loan Parties’ Patents, registered Trademarks,
registered Copyrights, and material agreements under which a Loan Party licenses Intellectual Property from third parties (other
than shrink-wrap software licenses or ordinary course services agreements granting rights to a Loan Party in connection with such
services or deliverables arising from such services agreements), together with application or registration numbers, as applicable,
owned by a Loan Party, in each case as of the Closing Date. No Loan Party is in material breach of, nor has any Loan Party failed
to perform any material obligations under, any of the foregoing contracts, licenses or agreements and, except as may be supplemented
by disclosures provided in the Compliance Certificate, to Borrowers’ knowledge, no third party to any such contract, license
or agreement is in material breach thereof or has failed to perform any material obligations thereunder.

 

5.11               
Intellectual Property. Except as described on Schedule 5.11 to the Disclosure Letter, the Loan Parties have all material
rights with respect to Intellectual Property necessary for or material in the operation or conduct of the Loan Parties’ business
as currently conducted and proposed to be conducted by the Loan Parties. Without limiting the generality of the foregoing, and
in the case of Licenses, except for restrictions that are unenforceable under Division 9 of the UCC or other applicable law, the
Loan Parties have the right, to the extent required to operate their business, to freely transfer, license or assign Intellectual
Property necessary for or material in the operation or conduct of their business as currently conducted and proposed to be conducted
by them, without condition, restriction or payment of any kind (other than license payments (including royalties, milestones and
similar payments) in the ordinary course of business) to any third party, and the Loan Parties own or have the right to use, pursuant
to valid licenses, all software development tools, library functions, compilers and all other third-party software and other items
that are necessary for their business and used in the design, development, promotion, sale, license, manufacture, import, export,
use or distribution of Borrower Products except customary covenants in inbound license agreements and equipment leases where a
Loan Party is the licensee or lessee. No Loan Party is party to, nor is it bound by, any Restricted License.

 

5.12                Borrower
Products. Except as described on Schedule 5.11 to the Disclosure Letter, no material Intellectual Property owned by any Loan
Party or Borrower Product has been or is subject to any actual or, to the knowledge of the Loan Parties, threatened in
writing litigation, proceeding (including any proceeding in the United States Patent and Trademark Office or any
corresponding foreign office or agency) or outstanding decree, order, judgment, settlement agreement or stipulation that
restricts in any material manner Borrower’s use, transfer or licensing thereof or that may affect the validity, use or
enforceability thereof. There is no decree, order, judgment, agreement, stipulation, arbitral award or other provision
entered into in connection with any litigation or proceeding that obligates any Loan Party to grant licenses or ownership
interest in any material future Intellectual Property related to the operation or conduct of the business of the Loan Parties
or Borrower Products. As of the Closing Date, no Loan Party has received any written notice or claim, or, to the knowledge of
the Loan Parties, oral notice or claim, challenging or questioning their ownership in any Intellectual Property (or written
notice of any claim challenging or questioning the ownership in any licensed Intellectual Property of the owner thereof) or
suggesting that any third party has any claim of legal or beneficial ownership with respect thereto nor, to the Loan
Parties’ knowledge, is there a reasonable basis for any such claim. To Loan Parties’ knowledge, no Loan
Party’s use of its Intellectual Property or the production and sale of Borrower Products infringes the valid
Intellectual Property or other rights of others in any material respect.

 

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5.13               
Financial Accounts. Exhibit D to the Disclosure Letter, as may be updated by Loan Parties in a written notice provided to
Agent after the Closing Date, is a true, correct and complete list of (a) all banks and other financial institutions at which any
Loan Party or any Subsidiary maintains Deposit Accounts and (b) all institutions at which any Loan Party or any Subsidiary maintains
an account holding Investment Property, and such exhibit correctly identifies the name, address and telephone number of each bank
or other institution, the name in which the account is held, a description of the purpose of the account, and the complete account
number therefor.

 

5.14               
Employee Loans. Except as permitted hereunder, no Loan Party has outstanding loans to any employee, officer or director
of such Loan Party nor has any Loan Party guaranteed the payment of any loan made to an employee, officer or director of such Loan
Party by a third party.

 

5.15               
Capitalization and Subsidiaries. The Loan Parties do not own any stock, partnership interest or other securities of any
Person, except for Permitted Investments. Attached as Schedule 1 to the Disclosure Letter, as may be updated by Loan Parties in
a written notice provided after the Closing Date, is a true, correct and complete list of each direct and indirect Subsidiary of
Parent.

 

5.16               
Centre of Main Interests and Establishments. For the purposes of Regulation (EU) 2015/848 of 20 May 2015 on insolvency proceedings
(recast) (the “Regulation”), each UK Loan Party’s centre of main interest (as that term is used in Article 3(1)
of the Regulation) is situated in England and Wales and it has no “establishment” (as that term is used in Article
2(10) of the Regulation) in any other jurisdiction.

 

5.17               
Pensions. (a) No UK Loan Party, nor any of its Subsidiaries is, nor has it at any time been, an employer (for the purposes
of sections 38 to 51 of the UK Pensions Act 2004) of an occupational pension scheme which is not a money purchase scheme (both
terms as defined in the UK Pensions Schemes Act 1993); and (b) no UK Loan Party, nor any of its Subsidiaries is, nor has it at
any time been, “connected” with or an “associate” of (as those terms are used in sections 38 and 43 of
the UK Pensions Act 2004) such an employer.

 

5.18               
People with Significant Control Regime. Each Loan Party shall (and Parent shall ensure that each of its Subsidiaries will):
(a) within the relevant timeframe, comply with any notice it receives pursuant to Part 21A of the Companies Act 2006 from any UK
Loan Party; and (b) promptly provide the Agent with a copy of that notice.

 

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SECTION 6. INSURANCE; INDEMNIFICATION

 

6.1 Coverage.
The Loan Parties shall cause to be carried and maintained commercial general liability insurance, on an occurrence form, against
risks customarily insured against in the Loan Parties’ line of business. Such risks shall include the risks of bodily injury,
including death, property damage, personal injury, advertising injury, and contractual liability per the terms of the indemnification
agreement found in Section 6.3. The Loan Parties must maintain a minimum of 30 $2,000,000 (or foreign currency equivalent, if
applicable, of commercial general liability insurance for each occurrence. The Loan Parties have and agree to maintain a minimum
of $2,000,000 (or foreign currency equivalent, if applicable) of directors’ and officers’ insurance for each occurrence
and $5,000,000 (or foreign currency equivalent, if applicable) in the aggregate. So long as there are any Secured Obligations
(other than inchoate indemnity obligations) outstanding, the Loan Parties shall also cause to be carried and maintained insurance
upon the Collateral, insuring against all risks of physical loss or damage howsoever caused, in an amount not less than the full
replacement cost of the Collateral, provided that such insurance may be subject to standard exceptions and deductibles. If any
Loan Party fails to obtain the insurance called for by this Section 6.1 or fails to pay any premium thereon or fails to pay any
other amount which the Loan Parties are obligated to pay under this Agreement or any other Loan Document or which may be required
to preserve the Collateral, Agent may obtain such insurance or make such payment, and all amounts so paid by Agent are immediately
due and payable, bearing interest at the then highest rate applicable to the Secured Obligations, and secured by the Collateral.
Agent will make reasonable efforts to provide the Loan Parties with notice of Agent obtaining such insurance at the time it is
obtained or within a reasonable time thereafter. No payments by Agent are deemed an agreement to make similar payments in the
future or Agent’s waiver of any Event of Default.

 

6.2              
Certificates. The Loan Parties (other than any UK Loan Party) shall deliver to Agent certificates of insurance that evidence
its compliance with its insurance obligations in Section 6.1 and the obligations contained in this Section 6.2. The Loan Parties’
insurance certificate shall state Agent (shown as “Hercules Capital, Inc.”, as “Agent”) is an additional
insured for commercial general liability, and a loss payee for all risk property damage insurance, subject to the insurer’s
approval. Other than as permitted pursuant to Schedule 4.4 to the Disclosure Letter, attached to the certificates of insurance
will be additional insured endorsements for liability and lender’s loss payable endorsements for all risk property damage
insurance. All certificates of insurance will provide for a minimum of thirty (30) days advance written notice to Agent of cancellation
(other than cancellation for non-payment of premiums, for which ten (10) days’ advance written notice shall be sufficient).
Any failure of Agent to scrutinize such insurance certificates for compliance is not a waiver of any of Agent’s rights, all
of which are reserved. The Loan Parties shall provide Agent with copies of each insurance policy and agree that upon entering or
amending any insurance policy required hereunder, the Loan Parties shall provide Agent with copies of such policies and shall promptly
deliver to Agent updated insurance certificates with respect to such policies.

 

6.3              
Indemnity. Each Loan Party agrees to indemnify and hold Agent, the Lenders and their officers, directors, employees, agents,
in-house attorneys, representatives and shareholders (each, an “Indemnified Person”) harmless from and against any
and all claims, costs, expenses, damages and liabilities (including such claims, costs, expenses, damages and liabilities based
on liability in tort, including strict liability in tort), including reasonable attorneys’ fees and disbursements and other
costs of investigation or defense (including those incurred upon any appeal) (collectively, “Liabilities”), that may
be instituted or asserted against or incurred by such Indemnified Person as the result of credit having been extended, suspended
or terminated under this Agreement and the other Loan Documents or the administration of such credit, or in connection with or
arising out of the transactions contemplated hereunder and thereunder, or any actions or failures to act in connection therewith,
or arising out of the disposition or utilization of the Collateral, excluding in all cases Liabilities to the extent resulting
solely from any Indemnified Person’s gross negligence or willful misconduct. Each Loan Party agrees to pay, and to save Agent
and Lender harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any and all UK stamp
duty that may be payable or determined to be payable with respect to the execution, delivery, performance, enforcement
or registration of any of the Collateral or the Loan Documents. In no event shall any Loan Party or any Indemnified Person be
liable on any theory of liability for any special, indirect, consequential or punitive damages (including any loss of profits,
business or anticipated savings) . This Section 6.3 shall survive the repayment of indebtedness under, and otherwise shall survive
the expiration or other termination of, this Agreement.

 

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SECTION 7. COVENANTS OF THE LOAN PARTIES

 

Each Loan Party agrees as follows:

 

7.1 Financial Reports. The Loan
Parties shall furnish to Agent the financial statements and reports listed hereinafter (the “Financial Statements”):

 

(a)               
within thirty (30) days after the end of each month, unaudited interim and year-to-date financial statements of Parent as
of the end of such month (prepared on a consolidated basis), including balance sheet and related statement of income accompanied
by a report detailing any material contingencies (including the commencement of any material litigation by or against Borrower)
or any other occurrence that could reasonably be expected to have a Material Adverse Effect, all certified by Parent’s Chief
Executive Officer, Chief Financial Officer or principal accounting officer or any other duly authorized officer or director to
the effect that they have been prepared in accordance with GAAP, except (i) for the absence of footnotes, (ii) that they are subject
to normal year-end adjustments, and (iii) they do not contain certain non-cash items that are customarily included in quarterly
and annual financial statements;

 

(b)               
within forty-five (45) days after the end of each of the first three fiscal quarters of Parent’s fiscal year, unaudited
interim and year-to-date financial statements as of the end of such calendar quarter (prepared on a consolidated basis), including
balance sheet and related statements of income and cash flows accompanied by a report detailing any material contingencies (including
the commencement of any material litigation by or against Borrower, certified by Parent’s Chief Executive Officer, Chief
Financial Officer or principal accounting officer or other duly authorized officer or director to the effect that they have been
prepared in accordance with GAAP, except (i) for the absence of footnotes, and (ii) that they are subject to normal year-end adjustments;

 

(c)               
within ninety (90) days after the end of each fiscal year of Parent, unqualified audited financial statements of Parent
as of the end of such year (prepared on a consolidated basis), including balance sheet and related statements of income and cash
flows, and setting forth in comparative form the corresponding figures for the preceding fiscal year, certified by a firm of independent
certified public accountants selected by Parent, accompanied by any management report from such accountants;

 

(d)               
together with each set of financial statements delivered pursuant to Section 7.1(a), (b) or (c), a Compliance Certificate;

 

(e)               
promptly after the sending or filing thereof, as the case may be, copies of any proxy statements, financial statements
or reports that Parent has made available to holders of any series of its Equity Interests generally and copies of any regular,
periodic and special reports or registration statements that Parent files with the SEC or any governmental authority that may
be substituted therefor, or any national securities exchange;

 

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(f)                
promptly following each meeting of any Loan Party’s Board of Directors, copies of all presentation materials and minutes
relating to research, clinical development, regulatory activities, and commercial timelines that each Loan Party provides to its
directors in connection with meetings of such Board of Directors, provided that all in all cases such Loan Party may exclude any
information or materials related to executive compensation, confidential information, any attorney-client privileged information
and any information that would raise a conflict of interest with Agent or Lenders, and minutes and other materials prepared exclusively
for executive sessions of the independent directors and committees of such Board of Directors;

 

(g)               
within ten (10) days after their approval by Parent’s Board of Directors, and in any event, within sixty (60) days
after the end of Parent’s fiscal year, financial and business projections as approved by Parent’s Board of Directors,
as well as budgets, operating plans and other financial information reasonably requested by Agent; and

 

(h)               
immediate notice if any Loan Party or any Subsidiary has knowledge that any Loan Party, or any Subsidiary or Affiliate of
any Loan Party, is listed on the OFAC Lists or (a) is convicted on, (b) pleads nolo contendere to, (c) is indicted on, or
(d) is arraigned and held over on charges involving money laundering or predicate crimes to money laundering.

 

(i)                
No Loan Party shall make any change in its (a) accounting policies or reporting practices other than to the extent required
or otherwise contemplated by GAAP, the SEC, the PCAOB or other applicable regulatory requirements or (b) fiscal years or fiscal
quarters. The fiscal year of Parent shall end on December 31.

 

(j)                
The executed Compliance Certificate and all Financial Statements required to be delivered pursuant to clauses (a), (b),
(c) and (d) shall be sent via e-mail to financialstatements@htgc.com with a copy to legal@htgc.com and bjadot@htgc.com, mbowden@htgc.com
and mdutra@htgc.com, provided, that if e-mail is not available or sending such Financial Statements via e-mail is not possible,
they shall be faxed to Agent at: (650) 473-9194, attention Account Manager: Bicycle Therapeutics plc.

 

(k)               
Notwithstanding the foregoing, documents required to be delivered under Sections 7.1(a), (b), (c), (e) or (h) (to the extent
any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered,
shall be deemed to have been delivered on the date on which Parent files such documents with the SEC and such documents are publicly
available on the SEC’s EDGAR filing system or any successor thereto.

 

7.2              
Management Rights. The Loan Parties shall permit any representative that Agent or the Lenders authorizes, including its
attorneys and accountants, to inspect the Collateral and examine and make copies and abstracts of the books of account and records
of the Loan Parties at reasonable times and upon reasonable notice during normal business hours; provided, however, that
so long as no Event of Default has occurred and is continuing, such examinations shall be limited to no more often than once per
fiscal year. In addition, any such representative shall have the right to meet with management and officers of the Loan Parties
to discuss such books of account and records. In addition, Agent or the Lenders shall be entitled at reasonable times and intervals
to consult with and advise the management and officers of the Loan Parties concerning significant business issues affecting Borrower.
Such consultations shall not unreasonably interfere with the Loan Parties’ business operations. The parties intend that
the rights granted Agent and the Lenders shall constitute “management rights” within the meaning of 29 C.F.R. Section
2510.3 - 101(d)(3)(ii), but that any advice, recommendations or participation by Agent or the Lenders with respect to any business
issues shall not be deemed to give Agent or the Lenders, nor be deemed an exercise by Agent or the Lenders of, control over the
Loan Parties’ management or policies.

 

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7.3              
Further Assurances. Each Loan Party shall from time to time execute, deliver and file, alone or with Agent, any financing
statements, security agreements, collateral assignments, notices, control agreements, or other documents to perfect or give the
highest priority to Agent’s Lien on the Collateral, as required under Section 3. Each Loan Party shall from time to time
procure any instruments or documents as may be reasonably requested by Agent, and take all further action that may be necessary,
or that Agent may reasonably request, to perfect and protect the Liens granted hereby and thereby. In addition, and for such purposes
only, each Loan Party hereby authorizes Agent to execute and deliver on its behalf and to file such financing statements (including
an indication that the financing statement covers “all assets or all personal property” of such Loan Party in accordance
with Section 9-504 of the UCC), collateral assignments, notices, control agreements, security agreements and other documents without
the signature of any Loan Party either in Agent’s name or in the name of Agent as agent and attorney-in-fact for the Loan
Parties. Each Loan Party shall protect and defend its title to the Collateral and Agent’s Lien thereon against all Persons
claiming any interest adverse to such Loan Party or Agent other than Permitted Liens.

 

7.4               
Indebtedness. No Loan Party shall create, incur, assume, guarantee nor be or remain liable with respect to any Indebtedness,
or permit any Subsidiary so to do, other than Permitted Indebtedness, or prepay any Indebtedness or take any actions which impose
on any Loan Party an obligation to prepay any Indebtedness, except for (a) the conversion of Indebtedness into equity securities
and the payment of cash in lieu of fractional shares in connection with such conversion, (b) in connection with refinancing or
replacement Indebtedness, (c) (i) purchase money Indebtedness pursuant to its then-applicable payment schedule or (ii) Indebtedness
owed under corporate credit cards to the extent constituting Permitted Indebtedness and prepaid in the ordinary course of business,
(d) prepayment by any Subsidiary of (i) inter-company Indebtedness owed by such Subsidiary to any Loan Party, or (ii) if such Subsidiary
is not a Loan Party, intercompany Indebtedness owed by such Subsidiary to another Subsidiary that is not a Loan Party, (e) trade
debt incurred in the ordinary course of business or (f) as otherwise permitted hereunder or approved in writing by Agent.

 

Notwithstanding anything to the contrary in the foregoing,
the issuance of, performance of obligations under (including any payments of interest), and conversion, exercise, repurchase,
redemption (including, for the avoidance of doubt, a required repurchase in connection with the redemption of Permitted Convertible
Debt upon satisfaction of a condition related to the stock price of the ADSs), settlement or early termination or cancellation
of (whether in whole or in part and including by netting or set-off) (in each case, whether in cash, ADSs or, following a merger
event or other change of the ADSs or Ordinary Shares, other securities or property), or the satisfaction of any condition that
would permit or require any of the foregoing, any Permitted Convertible Debt shall not constitute a prepayment of Indebtedness
by Parent for the purposes of this Section 7.4; provided that principal payments in cash (other than cash in lieu of fractional
shares) shall only be allowed if the Redemption Conditions are satisfied in respect of such payment and at all times after such
payment; provided further that, to the extent both (a) the aggregate amount of cash payable upon conversion or payment
of any Permitted Convertible Debt (excluding any required payment of interest with respect to such Permitted Convertible Debt
and excluding any payment of cash in lieu of a fractional share due upon conversion thereof) exceeds the aggregate principal amount
thereof and (b) such conversion or payment does not trigger or correspond to an exercise or early unwind or settlement of a corresponding
portion of the Permitted Equity Derivatives relating to such Permitted Convertible Debt (including, for the avoidance of doubt,
the case where there are no Permitted Equity Derivatives relating to such Permitted Convertible Debt), the payment of such excess
cash shall not be permitted by the preceding sentence.

 

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Notwithstanding the foregoing, Parent may repurchase, exchange
or induce the conversion of Permitted Convertible Debt by delivery of shares of ADSs and/or a different series of Permitted Convertible
Debt and/or by payment of cash (in an amount that does not exceed the proceeds received by Parent from the substantially concurrent
issuance of ADSs and/or Permitted Convertible Debt plus the net cash proceeds, if any, received by Parent pursuant to the related
exercise or early unwind or termination of the related Permitted Equity Derivatives, if any, pursuant to the immediately following
proviso); provided that, substantially concurrently with, or a commercially reasonable period of time before or after, the related
settlement date for the Permitted Convertible Debt that is so repurchased, exchanged or converted, Parent shall exercise or unwind
or terminate early (whether in cash, shares or any combination thereof) the portion of the Permitted Equity Derivatives, if any,
corresponding to such Permitted Convertible Debt that are so repurchased, exchanged or converted.

 

7.5 Collateral. Each Loan Party
shall at all times keep the Collateral, the Intellectual Property and all other property and assets used in such Loan Party’s
business or in which such Loan Party now or hereafter holds any interest free and clear from any legal process or Liens whatsoever
(except for Permitted Liens), and shall give Agent prompt written notice of any Liens affecting the Collateral (except for Permitted
Liens), the Intellectual Property, or such other property and assets, and prompt written notice of any legal process that is reasonably
likely to result in damages, expenses or liabilities in excess of $1,000,000 affecting the Collateral, Intellectual Property and
such other property and assets. No Loan Party shall agree with any Person other than Agent or Lenders not to encumber its Collateral
other than pursuant to (a) any agreements governing any purchase money Liens or capital lease obligations otherwise permitted hereby
(in which case, any prohibition or limitation shall only be effective against the assets financed thereby), (b) customary restrictions
on the assignment of leases, licenses and other agreements and (c) customary restrictions on assets subject to Liens permitted
under subsection (xiv) of the definition of “Permitted Liens”. No Loan Party shall enter into or suffer to exist or
become effective any agreement that prohibits or limits the ability of any Loan Party to create, incur, assume or suffer to exist
any Lien upon any of its Intellectual Property, whether now owned or hereafter acquired, to secure its obligations under the Loan
Documents to which it is a party other than pursuant to (i) this Agreement and the other Loan Documents, (ii) any agreements governing
any purchase money Liens or capital lease obligations otherwise permitted hereby (in which case, any prohibition or limitation
shall only be effective against the assets financed thereby) or (iii) customary restrictions on the assignment, sublicense, or
sublease of leases, licenses and other agreements, (iv) customary restrictions in licensing or collaboration, co - development
and co-marketing agreements relating to such Intellectual Property provided that such restrictions do not prohibit the Liens granted
to the Agent pursuant to the Loan Documents, and (v) customary restrictions and conditions contained in agreements governing joint
ventures or strategic alliances in the ordinary course of business; provided that, in each case, the applicable Loan Party has
exercised its good faith best efforts to not agree to such contractual limitations.

 

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Each Loan Party shall cause its Subsidiaries to use commercially
reasonable efforts to protect and defend such Subsidiary’s title to its assets from and against all Persons claiming any
interest adverse to such Subsidiary, and each Loan Party shall cause its Subsidiaries at all times to keep such Subsidiary’s
property and assets free and clear from any legal process or Liens whatsoever (except for Permitted Liens or as otherwise permitted
by this Section 7.5), and shall give Agent prompt written notice of any Liens (other than Permitted Liens) affecting such Subsidiary’s
assets and prompt written notice of any legal process that is reasonably like to result in damages, expenses or liabilities in
excess of $500,000.

 

7.6 Investments. No Loan Party shall
directly or indirectly acquire or own, or make any Investment in or to any Person, or permit any of its Subsidiaries to do so,
other than Permitted Investments unless the Secured Obligations (other than inchoate indemnity obligations any other obligations
which, by their terms, are to survive the termination of the Agreement) are repaid in full concurrently with such Investment.

 

Notwithstanding the foregoing, and for the avoidance of doubt,
this Section 7.6 shall not prohibit the conversion by holders of (including any payment upon conversion, whether in cash, ADSs
or a combination thereof), or required payment of any principal or premium on (including, for the avoidance of doubt, in respect
of a required repurchase in connection with the redemption of Permitted Convertible Debt upon satisfaction of a condition related
to the stock price of the ADSs) or required payment of any interest with respect to, any Permitted Convertible Debt in each case,
in accordance with the terms of the indenture governing such Permitted Convertible Debt; provided that principal payments in cash
(other than cash in lieu of fractional shares) shall only be allowed if the Redemption Conditions are satisfied in respect of such
payment and at all times after such payment; provided further that, to the extent both (a) the aggregate amount of cash payable
upon conversion or payment of any Permitted Convertible Debt (excluding any required payment of interest with respect to such Permitted
Convertible Debt and excluding any payment of cash in lieu of a fractional share due upon conversion thereof) exceeds the aggregate
principal amount thereof and (b) such conversion or payment does not trigger or correspond to an exercise or early unwind or settlement
of a corresponding portion of the Permitted Equity Derivatives relating to such Permitted Convertible Debt (including, for the
avoidance of doubt, the case where there are no Permitted Equity Derivatives relating to such Permitted Convertible Debt), the
payment of such excess cash shall not be permitted by the preceding sentence.

 

Notwithstanding the foregoing, Parent may repurchase, exchange
or induce the conversion of Permitted Convertible Debt by delivery of ADSs and/or a different series of Permitted Convertible Debt
and/or by payment of cash (in an amount that does not exceed the proceeds received by Parent from the substantially concurrent
issuance of ADSs and/or Permitted Convertible Debt plus the net cash proceeds, if any, received by Parent pursuant to the related
exercise or early unwind or termination of the related Permitted Equity Derivatives, if any, pursuant to the immediately following
proviso); provided that, substantially concurrently with, or a commercially reasonable period of time before or after, the related
settlement date for the Permitted Convertible Debt that is so repurchased, exchanged or converted, Parent shall exercise or unwind
or terminate early (whether in cash, shares or any combination thereof) the portion of the Permitted Equity Derivatives, if any,
corresponding to such Permitted Convertible Debt that are so repurchased, exchanged or converted.

 

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7.7 Distributions. No Loan Party
shall, and shall not allow any Subsidiary to, (a) repurchase or redeem any class of shares, stock or other Equity Interest other
than pursuant to employee, director or consultant repurchase plans or other similar agreements, provided, however, in each case
the aggregate repurchase or redemption consideration does not exceed the original consideration paid for such shares, stock or
other Equity Interests; (b) declare or pay any cash dividend or make a cash distribution on any class of shares, stock or other
Equity Interest, except that a Subsidiary may pay dividends or make distributions to any Loan Party; (c) lend money to any employees,
officers or directors or guarantee the payment of any such loans granted by a third party in excess of Five Hundred Thousand Dollars
($500,000) in the aggregate; or (d) waive, release or forgive any Indebtedness (other than Indebtedness represented by a Permitted
Investment made pursuant to clause (vii) thereof) owed by any employees, officers or directors in excess of Five Hundred Thousand
Dollars ($500,000) in the aggregate in any fiscal year.

 

Notwithstanding the foregoing, and for the avoidance of doubt,
this Section 7.7 shall not prohibit the conversion by holders of (including any payment upon conversion, whether in cash, ADSs
or a combination thereof), or required payment of any principal or premium on (including, for the avoidance of doubt, in respect
of a required repurchase in connection with the redemption of Permitted Convertible Debt upon satisfaction of a condition related
to the stock price of the ADSs) or required payment of any interest with respect to, any Permitted Convertible Debt in each case,
in accordance with the terms of the indenture governing such Permitted Convertible Debt; provided that principal payments in cash
(other than cash in lieu of fractional shares) shall only be allowed if the Redemption Conditions are satisfied in respect of such
payment and at all times after such payment; provided further that, to the extent both (a) the aggregate amount of cash payable
upon conversion or payment of any Permitted Convertible Debt (excluding any required payment of interest with respect to such Permitted
Convertible Debt and excluding any payment of cash in lieu of a fractional share due upon conversion thereof) exceeds the aggregate
principal amount thereof and (b) such conversion or payment does not trigger or correspond to an exercise or early unwind or settlement
of a corresponding portion of the Permitted Equity Derivatives relating to such Permitted Convertible Debt (including, for the
avoidance of doubt, the case where there are no Permitted Equity Derivatives relating to such Permitted Convertible Debt), the
payment of such excess cash shall not be permitted by the preceding sentence.

 

Notwithstanding the foregoing, Parent may repurchase, exchange
or induce the conversion of Permitted Convertible Debt by delivery of ADSs and/or a different series of Permitted Convertible Debt
and/or by payment of cash (in an amount that does not exceed the proceeds received by Parent from the substantially concurrent
issuance of ADSs and/or Permitted Convertible Debt plus the net cash proceeds, if any, received by Parent pursuant to the related
exercise or early unwind or termination of the related Permitted Equity Derivatives, if any, pursuant to the immediately following
proviso); provided that, substantially concurrently with, or a commercially reasonable period of time before or after, the related
settlement date for the Permitted Convertible Debt that is so repurchased, exchanged or converted, Parent shall exercise or unwind
or terminate early (whether in cash, shares or any combination thereof) the portion of the Permitted Equity Derivatives, if any,
corresponding to such Permitted Convertible Debt that are so repurchased, exchanged or converted.

 

7.8               
Transfers. Except for Permitted Transfers, no Loan Party shall, and shall not allow any Subsidiary to, voluntarily or involuntarily
transfer, sell, lease, license, lend or in any other manner convey any equitable, beneficial or legal interest in any material
portion of its assets.

 

7.9               
Mergers and Consolidations. No Loan Party shall merge or consolidate, or permit any of its Subsidiaries to merge or consolidate,
with or into any other business organization (other than mergers or consolidations of (a) a Subsidiary which is not a Loan Party
into another Subsidiary or into a Loan Party or (b) a Loan Party into another Loan Party), unless the Secured Obligations (other
than inchoate indemnity obligations any other obligations which, by their terms, are to survive the termination of the Agreement)
are repaid in full concurrently with such merger or consolidation.

 

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7.10           
Taxes. Each Loan Party shall, and shall cause each of its Subsidiaries to, pay when due all material Taxes, fees and other
charges of any nature whatsoever now or hereafter imposed or assessed (i) against any Loan Party, any of its Subsidiaries or the
Collateral or (ii) upon such Loan Party’s or any of its Subsidiaries’ ownership, possession, use, operation or disposition
of the Collateral or upon any Loan Party’s or any of its Subsidiaries’ rents, receipts or earnings arising therefrom.
Each Loan Party shall, and shall cause each of its Subsidiaries to, accurately file on or before the due date therefor all material
Tax returns (including any Tax returns in respect of the Collateral). Notwithstanding the foregoing, any Loan Party may contest,
in good faith and by appropriate proceedings, Taxes for which such Loan Party maintains adequate reserves therefor in accordance
with GAAP.

 

7.11           
Corporate Changes. No Loan Party nor any Subsidiary shall change its corporate name, legal form or jurisdiction of formation
without twenty (20) days’ prior written notice to Agent. No Change in Control shall occur without concurrent payment in full
of all outstanding Secured Obligations (other than any inchoate indemnity obligations and any other obligations which, by their
terms, are to survive the termination of this Agreement). No Loan Party nor any Subsidiary shall relocate its chief executive office
or its principal place of business unless it has provided prior written notice to Agent. No Loan Party nor any Subsidiary shall
relocate any item of Collateral (other than (w) clinical drug supplies utilized in the ordinary course of business, (x) sales of
assets made in accordance with Section 7.8, (y) relocations of assets having an aggregate value of up to Five Hundred Thousand
Dollars ($500,000) in any fiscal year, and (z) relocations of Collateral from a location described on Exhibit B to the Disclosure
Letter to another location described on Exhibit B to the Disclosure Letter) unless (i) it has provided prompt written notice to
Agent, (ii) such relocation is within the United Kingdom (with respect to the UK Loan Parties), or the continental United States
of America (with respect to Bicycle US) and, (iii) if such relocation is to a third party bailee, if not prohibited by applicable
law, it has delivered a bailee agreement in form and substance reasonably acceptable to Agent.

 

7.12           
Deposit Accounts. Other than Excluded Accounts, no Loan Party nor any Subsidiary shall maintain any Deposit Accounts, or
accounts holding Investment Property, except with respect to which Agent has (i) an Account Control Agreement or (ii) such other
agreement or arrangement as a result of which the Agent shall have a first priority perfected security interest therein or as may
be otherwise acceptable to Agent for Deposit Accounts and accounts holding Investment Property outside of the United States of
America.

 

7.13           
Each Loan Party shall notify Agent of each Subsidiary formed subsequent to the Closing Date and, within (i) fifteen (15)
days of formation, shall cause any such Subsidiary, unless otherwise consented to by Agent, to execute and deliver to Agent a Joinder
Agreement.

 

7.14           
Redemption Conditions. If Parent makes cash payment in respect of Permitted Convertible Debt subject to satisfaction of
the Redemption Conditions, Borrowers shall, at all times thereafter, maintain Qualified Cash in the amount required by the defined
term “Redemption Conditions”.

 

7.15           
Notification of Event of Default. Parent shall notify Agent promptly, and in any event within two (2) Business Days, of
the occurrence of any Event of Default.

 

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7.16
            [RESERVED]

 

7.17           
Use of Proceeds. Borrower agrees that the proceeds of the Loans shall be used solely to pay related fees and expenses in
connection with this Agreement and for working capital and/or general corporate purposes. The proceeds of the Loans will not be
used in violation of Anti-Corruption Laws or applicable Sanctions.

 

7.18           
[RESERVED]

 

7.19           
Compliance with Laws. Each Loan Party shall maintain, and shall cause its Subsidiaries to maintain, compliance in all material
respect with all applicable material laws, rules or regulations (including any law, rule or regulation with respect to the making
or brokering of loans or financial accommodations), and shall, or cause its Subsidiaries to, obtain and maintain all required governmental
authorizations, approvals, licenses, franchises, permits or registrations reasonably necessary in connection with the conduct of
such Loan Party’s business.

 

(a)               
No Loan Party nor any of its Subsidiaries shall, nor shall any Loan Party or any of its Subsidiaries permit any Affiliate
under Parent’s direct or indirect control to, directly or indirectly, knowingly enter into any documents, instruments, agreements
or contracts with any Person listed on the OFAC Lists. No Loan Party nor any of its Subsidiaries shall, nor shall any Loan Party
or any of its Subsidiaries, permit any Affiliate under Parent’s direct or indirect control to, directly or indirectly, (i)
conduct any business or engage in any transaction or dealing with any Blocked Person, including, without limitation, the making
or receiving of any contribution of funds, goods or services to or for the benefit of any Blocked Person, (ii) deal in, or otherwise
engage in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224 or any
similar executive order or other Anti-Terrorism Law, or (iii) engage in or conspire to engage in any transaction that evades or
avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in Executive Order
No. 13224 or other Anti-Terrorism Law.

 

(b)               
Each Loan Party has implemented and maintains in effect policies and procedures designed to ensure compliance by the each
Loan Party, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable
Sanctions, and each Loan Party, its Subsidiaries and their respective officers and employees and to the knowledge of each Loan
Party its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.

 

(c)               
No Loan Party nor any of its Subsidiaries or any of their respective directors, officers or employees, or to the knowledge
of any Loan Party, any agent for any Loan Party or its Subsidiaries that will act in any capacity in connection with or benefit
from the credit facility established hereby, is a Sanctioned Person. No Loan, use of proceeds or other transaction contemplated
by this Agreement will violate Anti-Corruption Laws or applicable Sanctions.

 

7.20           
COMI. No UK Loan Party nor any other Subsidiary of any Loan Party whose jurisdiction of incorporation or organization is
in a member state of the European Union shall change its “centre of main interests” (as that term is used in Article
3(1) of the Regulation).

 

7.21           
Intellectual Property. Each Loan Party shall (i) protect, defend and maintain the validity and enforceability of its Intellectual
Property material to such loan party’s business; (ii) promptly advise Agent in writing of material infringements of its
Intellectual Property; and (iii) not allow any Intellectual Property material to such Loan Party’s business to be abandoned,
forfeited or dedicated to the public without Agent’s written consent.

 

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7.22 No Loan Party shall, and
shall not allow any Subsidiary to, directly or indirectly, enter into or permit to exist any transaction of any kind with any Affiliate
of any Loan Party or such Subsidiary on terms that are less favorable to such Loan Party or such Subsidiary, as the case may be,
than those that might be obtained in an arm’s length transaction from a Person who is not an Affiliate of any Loan Party
or such Subsidiary, other than Permitted Acquisitions and Permitted Transfers.

 

SECTION 8. RIGHT TO INVEST

 

8.1 The Lenders or their assignee
or nominee shall have the right, in its discretion, to participate in any Subsequent Financing in an amount of up to $2,000,000
on the same terms, conditions and pricing afforded to others participating in any such Subsequent Financing (subject to compliance
with applicable securities laws and the rules of any stock exchange).

 

SECTION 9. EVENTS OF DEFAULT

 

The occurrence of any one or more of the following
events shall be an Event of Default:

 

9.1               
Payments. Any Loan Party fails to pay any amount due under this Agreement or any of the other Loan Documents on the due
date; provided, however, that an Event of Default shall not occur on account of a failure to pay due solely to an administrative
or operational error of Agent or the Lenders or any Loan Party’s bank if such Loan Party had the funds to make the payment
when due and makes the payment within three (3) Business Days following such Loan Party’s knowledge of such failure to pay;
or 

 

9.2               
Covenants. Any Loan Party breaches or defaults in the performance of any covenant or Secured Obligation under this Agreement,
or any of the other Loan Documents, and (a)   with respect to a default under any covenant under this Agreement (other
than under Sections 4.4, 6, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 7.14, 7.15, 7.17, 7.19, 7.21, and 7.22), any other Loan Document, such
default continues for more than twenty (20) days after the earlier of the date on which (i) Agent or the Lenders has given notice
of such default to the Loan Parties and (ii) any Loan Party has actual knowledge of such default or (b) with respect to a default
under any of Sections 4.4, 6, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 7.14, 7.15, 7.17, 7.19, 7.21, and 7.22, the occurrence of such default;
or

 

9.3               
Material Adverse Effect. A circumstance has occurred that could reasonably be expected to have a Material Adverse Effect; provided
that, solely for purposes of this Section 9.3, the following events shall not, in each case in and of itself, constitute a Material
Adverse Effect: (a) adverse results or delays in any nonclinical or clinical trial, (b) the failure to achieve any clinical or
non-clinical trial goals or objectives, including without limitation, the failure to demonstrate the desired safety or efficacy
of any drug or companion diagnostic, (c) the denial, delay or limitation of approval of, or taking of any other regulatory action
by the FDA with respect to any drug or companion diagnostic, (d) a change in or discontinuation of a strategic partnership or
other collaboration or license arrangement so long as the same does not affect the ability of Borrowers to perform the Secured
Obligations, or (e) failure to achieve Performance Milestone I, Performance Milestone II, Performance Milestone III, or Performance
Milestone IV, so long as the same does not affect the ability of Borrowers to perform the Secured Obligations; or

 

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9.4               
Representations. Any representation or warranty made by any Loan Party in any Loan Document shall have been false or misleading
in any material respect when made or when deemed made; or

 

9.5               
Insolvency. An Insolvency Event occurs with respect to any Loan Party; or

 

9.6               
Attachments; Judgments. Any material portion of the assets of the Loan Parties, taken as a whole, is attached or seized,
or a levy is filed against any such assets, or a judgment or judgments is/are entered for the payment of money (not covered by
independent third party insurance as to which liability has not been rejected by such insurance carrier), individually or in the
aggregate, of at least One Million Dollars ($1,000,000), and such judgment remains unsatisfied, unvacated, or unstayed for a period
of twenty (20) days after the entry thereof, or any Loan Party is enjoined or in any way prevented by court order from conducting
any material part of its business; or

 

9.7               
Other Obligations. The occurrence of any default (after giving effect to any grace or cure period) under any agreement or
obligation of any Loan Party involving any Indebtedness in excess of One Million Dollars ($1,000,000), which has resulted in a
right by the holder of such Indebtedness, whether or not exercised, to accelerate the maturity of such Indebtedness; or any early
payment is required or unwinding or termination occurs with respect to any Permitted Equity Derivatives, or any condition giving
rise to the foregoing is met, in each case, with respect to which Borrower or its Affiliate is the “affected party”
or “defaulting party” under the terms of such Equity Derivatives, if a Material Adverse Effect could reasonably be
expected to result from such default, early payment, unwinding or termination.

 

9.8               
Stop Trade. At any time, an SEC stop trade order or NASDAQ market trading suspension of the ADSs shall be in effect for
five (5) consecutive days or five (5) days during a period of ten (10) consecutive days, excluding in all cases a suspension of
all trading on a public market, provided that Borrower shall not have been able to cure such trading suspension within thirty (30)
days of the notice thereof or list the ADSs on another public market within sixty (60) days of such notice.

 

9.9                  
Expropriation. The authority or ability of the Loan Parties to conduct their business is limited or wholly or substantially
curtailed by any seizure, expropriation, nationalization, intervention, restriction or other action by or on behalf of any governmental,
regulatory or other authority or other Person in relation to the Loan Parties or any of their respective assets; or

 

9.10              
Pensions. The UK Pensions Regulator issues a Financial Support Direction or a Contribution Notice is issued to any Loan
Party or any of their Subsidiaries, unless the aggregate liability of the UK Loan Parties and their Subsidiaries under all Financial
Support Directions and Contributions Notices is less than Five Hundred Thousand Dollars ($500,000).

 

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SECTION 10. REMEDIES

 

10.1           
General. Upon and during the continuance of any one or more Events of Default, (i)   Agent may, and at the direction
of the Required Lenders shall, accelerate and demand payment of all or any part of the Secured Obligations together with a Prepayment
Charge and declare them to be immediately due and payable (provided, that upon the occurrence of an Event of Default of the type
described in Section 9.5, all of the Secured Obligations (including, without limitation, the Prepayment Charge and the End of
Term Charge) shall automatically be accelerated and made due and payable, in each case without any further notice or act), (ii)
Agent may, and at the direction of the Required Lenders shall, sign and file in any Loan Party’s (other than a UK Loan Party’s)
name any and all collateral assignments, notices, control agreements, security agreements and other documents it deems necessary
or appropriate to perfect or protect the repayment of the Secured Obligations, and in furtherance thereof, each Loan Party (other
than a UK Loan Party) hereby grants Agent an irrevocable power of attorney coupled with an interest, and (iii) Agent may notify
any of any Loan Party’s (other than a UK Loan Party’s) account debtors to make payment directly to Agent, compromise
the amount of any such account on such Loan Party’s (other than a UK Loan Party’s) behalf and endorse Agent’s
name without recourse on any such payment for deposit directly to Agent’s account. Agent may exercise all rights and remedies
with respect to the Collateral under the Loan Documents or otherwise available to it under the UCC and other applicable law, including
the right to release, hold, sell, lease, liquidate, collect, realize upon, or otherwise dispose of all or any part of the Collateral
and the right to occupy, utilize, process and commingle the Collateral. The Agent shall be entitled to exercise any and all rights
and remedies set forth in the Loan Documents. All Agent’s rights and remedies shall be cumulative and not exclusive.

 

10.2
            Collection; Foreclosure. Subject to the English Security Documents,
upon the occurrence and during the continuance of any Event of Default, Agent may, and at the direction of the Required Lenders
shall, at any time or from time to time, apply, collect, liquidate, sell in one or more sales, lease or otherwise dispose of,
any or all of the Collateral, in its then condition or following any commercially reasonable preparation or processing, in such
order as Agent may elect. Any such sale may be made either at public or private sale at its place of business or elsewhere. Each
Loan Party agrees that any such public or private sale may occur upon ten (10) calendar days’ prior written notice to such
Loan Party. Agent may require any Loan Party to assemble the Collateral and make it available to Agent at a place designated by
Agent that is reasonably convenient to Agent and such Loan Party. The proceeds of any sale, disposition or other realization upon
all or any part of the Collateral shall be applied by Agent in the following order of priorities:

 

(a)               
First, to Agent and the Lenders in an amount sufficient to pay in full Agent’s and the Lenders’ reasonable costs and
professionals’ and advisors’ fees and expenses as described in Section 11.12;

 

(b)               
Second, to the Lenders in an amount equal to the then unpaid amount of the Secured Obligations (including principal, interest,
and the Default Rate interest), in such order and priority as Agent may choose in its sole discretion; and

 

(c)               
Finally, after the full and final payment in Cash of all of the Secured Obligations (other than inchoate obligations),
to any creditor holding a junior Lien on the Collateral, or to the Loan Parties or their representatives or as a court of competent
jurisdiction may direct.

 

Agent
shall be deemed to have acted reasonably in the custody, preservation and disposition of any of the Collateral if it complies
with the obligations of a secured party under the UCC.

 

10.3
            No Waiver. Agent shall be under no obligation to marshal any
of the Collateral for the benefit of the Loan Parties or any other Person, and each Loan Party expressly waives all rights, if
any, to require Agent to marshal any Collateral.

 

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10.4
            Cumulative Remedies. The rights, powers and remedies of Agent
hereunder shall be in addition to all rights, powers and remedies given by statute or rule of law and are cumulative. The exercise
of any one or more of the rights, powers and remedies provided herein shall not be construed as a waiver of or election of remedies
with respect to any other rights, powers and remedies of Agent.

 

SECTION
11. MISCELLANEOUS

 

11.1           
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under such law, such
provision shall be ineffective only to the extent and duration of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of this Agreement.

 

11.2           
Notice. Except as otherwise provided herein, any notice, demand, request, consent, approval, declaration, service of process
or other communication (including the delivery of Financial Statements) that is required, contemplated, or permitted under the
Loan Documents or with respect to the subject matter hereof shall be in writing, and shall be deemed to have been validly served,
given, delivered, and received upon the earlier of: (i) the day of transmission by electronic mail or hand delivery or delivery
by an overnight express service or overnight mail delivery service; or (ii) the third calendar day after deposit in the United
States of America mails, with proper first class postage prepaid, in each case addressed to the party to be notified as follows:

 

(a)               
If to Agent:

 

HERCULES CAPITAL, INC.

Legal Department 

Attention: Chief Legal Officer and Bryan Jadot

400 Hamilton Avenue, Suite 310 

Palo Alto, CA 94301

email: legal@htgc.com and bjadot@htgc.com

Telephone: 650-289-3060

 

(b)       If
to the Lenders:

 

HERCULES CAPITAL, INC.

Legal Department 

Attention: Chief Legal Officer and Bryan Jadot

400 Hamilton Avenue, Suite 310

Palo Alto, CA 94301

email: legal@htgc.com and bjadot@htgc.com

Telephone:
650-289-3060

 

(c)       If
to any Loan Party:

 

BICYCLE THERAPEUTICS PLC

B900, Babraham Research Campus

Cambridge, UK

CB22 3AT

Attention: Lee Kalowski

email: lee.kalowski@bicycletx.com

 

 

or to such other address as each party may designate for itself
by like notice.

 

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11.3           
Entire Agreement; Amendments.

 

(a)               
This Agreement and the other Loan Documents constitute the entire agreement and understanding of the parties hereto in respect
of the subject matter hereof and thereof, and supersede and replace in their entirety any prior proposals, term sheets, non-disclosure
or confidentiality agreements, letters, negotiations or other documents or agreements, whether written or oral, with respect to
the subject matter hereof or thereof (including Agent’s revised proposal letter dated August 30, 2020 and the Non-Disclosure
Agreement).

 

(b)               
Neither this Agreement, any other Loan Document, nor any terms hereof or thereof may be amended, supplemented or modified
except in accordance with the provisions of this Section 11.3(b). The Required Lenders and each Loan Party party to the relevant
Loan Document may, or, with the written consent of the Required Lenders, the Agent and the Loan Parties party to the relevant Loan
Document may, from time to time, (i) enter into written amendments, supplements or modifications hereto and to the other Loan Documents
for the purpose of adding any provisions to this Agreement or the other Loan Documents or changing in any manner the rights of
the Lenders or of the Loan Parties hereunder or thereunder or (ii) waive, on such terms and conditions as the Required Lenders
or the Agent, as the case may be, may specify in such instrument, any of the requirements of this Agreement or the other Loan Documents
or any default or Event of Default and its consequences; provided, however, that no such waiver and no such amendment, supplement
or modification shall (A) forgive the principal amount or extend the final scheduled date of maturity of any Loan, extend the scheduled
date of any amortization payment in respect of any Term Loan, reduce the stated rate of any interest (or fee payable hereunder)
or extend the scheduled date of any payment thereof, in each case without the written consent of each Lender directly affected
thereby; (B) eliminate or reduce the voting rights of any Lender under this Section 11.3(b) without the written consent of such
Lender; (C) reduce any percentage specified in the definition of Required Lenders, consent to the assignment or transfer by the
Loan Parties of any of their rights and obligations under this Agreement and the other Loan Documents, release all or substantially
all of the Collateral or release a Loan Party from its obligations under the Loan Documents, in each case without the written consent
of all Lenders; or (D) amend, modify or waive any provision of Section 11.18 or Addendum 2 without the written consent of the Agent.
Any such waiver and any such amendment, supplement or modification shall apply equally to each Lender and shall be binding upon
the Loan Parties, the Lender, the Agent and all future holders of the Loans.

 

11.4           
No Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement.
In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement.

 

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11.5           
No Waiver. The powers conferred upon Agent and the Lenders by this Agreement are solely to protect its rights hereunder
and under the other Loan Documents and its interest in the Collateral and shall not impose any duty upon Agent or the Lenders to
exercise any such powers. No omission or delay by Agent or the Lenders at any time to enforce any right or remedy reserved to it,
or to require performance of any of the terms, covenants or provisions hereof by the Loan Parties at any time designated, shall
be a waiver of any such right or remedy to which Agent or the Lenders is entitled, nor shall it in any way affect the right of
Agent or the Lenders to enforce such provisions thereafter.

 

11.6           
Survival. All agreements, representations and warranties contained in this Agreement and the other Loan Documents or in
any document delivered pursuant hereto or thereto shall be for the benefit of Agent and the Lenders and shall survive the execution
and delivery of this Agreement. Sections 6.3, 11.14, 11.15 and 11.18 shall survive the termination of this Agreement.

 

11.7           
Successors and Assigns; Participations.

 

(a)               
The provisions of this Agreement and the other Loan Documents shall inure to the benefit of and be binding on each Loan
Party and its permitted assigns (if any). No Loan Party shall assign its obligations under this Agreement or any of the other
Loan Documents without Agent’s express prior written consent, and any such attempted assignment shall be void and of no
effect. Subject to acceptance and recording in the Register, Agent and the Lenders may assign, transfer, or endorse its rights
hereunder and under the other Loan Documents without prior notice to Borrower, and all of such rights shall inure to the benefit
of Agent’s and the Lenders’ successors and assigns; provided that as long as no Event of Default has occurred and
is continuing, neither Agent nor any Lender may assign, transfer or endorse its rights hereunder or under the Loan Documents to
any party that is a direct competitor of any Loan Party (as reasonably determined by Agent in consultation with the Loan Parties),
it being acknowledged that in all cases, any transfer to an Affiliate of any Lender or Agent shall be allowed. Notwithstanding
the foregoing, (x) in connection with any assignment by a Lender as a result of a forced divestiture at the request of any regulatory
agency, the restrictions set forth herein shall not apply and Agent and the Lenders may assign, transfer or indorse its rights
hereunder and under the other Loan Documents to any Person or party and (y) in connection with a Lender’s own financing
or securitization transactions, the restrictions set forth herein shall not apply and Agent and the Lenders may assign, transfer
or indorse its rights hereunder and under the other Loan Documents to any Person or party providing such financing or formed to
undertake such securitization transaction and any transferee of such Person or party upon the occurrence of a default, event of
default or similar occurrence with respect to such financing or securitization transaction; provided that no such sale, transfer,
pledge or assignment under this clause (y) shall release such Lender from any of its obligations hereunder or substitute any such
Person or party for such Lender as a party hereto until Agent shall have received and accepted an effective assignment agreement
from such Person or party in form satisfactory to Agent executed, delivered and fully completed by the applicable parties thereto,
and shall have received such other information regarding such assignee as Agent reasonably shall require. The Agent, acting solely
for this purpose as an agent of Borrowers, shall maintain at one of its offices in the United States a register for the recordation
of the names and addresses of the Lender(s), and the Term Commitments of, and principal amounts (and stated interest) of the Loans
owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register
shall be conclusive absent manifest error, and the Loan Parties, the Agent and the Lender(s) shall treat each Person whose name
is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register
shall be available for inspection by Borrowers and any Lender, at any reasonable time and from time to time upon reasonable prior
notice.

 

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(b)               
Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of Borrowers, maintain
a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each
participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”);
provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity
of any participant or any information relating to a participant’s interest in any commitments, loans, its other obligations
under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment,
loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.
The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose
name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding
any notice to the contrary. For the avoidance of doubt, the Agent (in its capacity as Agent) shall have no responsibility for maintaining
a Participant Register. The Loan Parties agree that each participant shall be entitled to the benefits of the provisions in Addendum
1 attached hereto (subject to the requirements and limitations therein, including the requirements under Section 7 of Addendum
1 attached hereto (it being understood that the documentation required under Section 7 of Addendum 1 attached hereto shall be delivered
to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to
Section 11.7(a); provided that such participant shall not be entitled to receive any greater payment under Addendum 1 attached
hereto, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent
such entitlement to receive a greater payment results from a change in law that occurs after the participant acquired the applicable
participation.

 

11.8           
Exposure Transfers. Subject to Section 11.7, no Lender shall enter into any arrangement with another person under which
such Lender substantially transfers its exposure under this Agreement to that other person, unless under such arrangement throughout
the life of such arrangement:

 

(a)               
relationship between the Lender and that other person is that of a debtor and creditor (including in the bankruptcy or similar
event of the Lender or any Loan Party);

 

(b)               
the other person will have no proprietary interest in the benefit of this Agreement or in any monies received by the Lender
under or in relation to this Agreement; and

 

(c)               
the other person will under no circumstances (other than permitted transfers and assignments under Section 11.7) (y) be
subrogated to, or substituted in respect of, the Lender’s claims under this Agreement; and (z) have otherwise any contractual
relationship with, or rights against, the Loan Parties under or in relation to this Agreement.

 

    46

     

    

 

11.9           
Governing Law. This Agreement and the other Loan Documents have been negotiated and delivered to Agent and the Lenders in
the State of California, and shall have been accepted by Agent and the Lenders in the State of California. Payment to Agent and
the Lenders by the Loan Parties of the Secured Obligations is due in the State of California. This Agreement and the other Loan
Documents (other than the English Security Documents and such other Loan Documents as expressly state the contrary) shall be governed
by, and construed and enforced in accordance with, the laws of the State of California, excluding conflict of laws principles that
would cause the application of laws of any other jurisdiction.

 

11.10       
Consent to Jurisdiction and Venue. All judicial proceedings (to the extent that the reference requirement of Section 11.11
is not applicable) arising in or under or related to this Agreement or any of the other Loan Documents may be brought in any state
or federal court located in the State of California. By execution and delivery of this Agreement, each party hereto generally and
unconditionally: (a) consents to nonexclusive personal jurisdiction in Santa Clara County, State of California; (b) waives any
objection as to jurisdiction or venue in Santa Clara County, State of California; (c) agrees not to assert any defense based on
lack of jurisdiction or venue in the aforesaid courts; and (d) irrevocably agrees to be bound by any judgment rendered thereby
in connection with this Agreement or the other Loan Documents. Service of process on any party hereto in any action arising out
of or relating to this Agreement shall be effective if given in accordance with the requirements for notice set forth in Section
11.2, and shall be deemed effective and received as set forth in Section 11.2. Nothing herein shall affect the right to serve process
in any other manner permitted by law or shall limit the right of either party to bring proceedings in the courts of any other jurisdiction.

 

11.11       
Mutual Waiver of Jury Trial / Judicial Reference.

 

(a)               
Because disputes arising in connection with complex financial transactions are most quickly and economically resolved by
an experienced and expert Person and the parties wish applicable state and federal laws to apply (rather than arbitration rules),
the parties desire that their disputes be resolved by a judge applying such applicable laws. EACH OF THE LOAN PARTIES, AGENT AND
THE LENDERS SPECIFICALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM,
THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY, “CLAIMS”) ASSERTED BY THE LOAN PARTIES AGAINST AGENT, THE LENDERS
OR THEIR RESPECTIVE ASSIGNEE OR BY AGENT, THE LENDERS OR THEIR RESPECTIVE ASSIGNEE AGAINST ANY LOAN PARTY. This waiver extends
to all such Claims, including Claims that involve Persons other than Agent, the Loan Parties and the Lenders; Claims that arise
out of or are in any way connected to the relationship among the Loan Parties, Agent and the Lenders; and any Claims for damages,
breach of contract, tort, specific performance, or any equitable or legal relief of any kind, arising out of this Agreement or
any other Loan Document.

 

    47

     

    

 

(b)               
If the waiver of jury trial set forth in Section 11.11(a) is ineffective or unenforceable, the parties agree that all Claims shall
be resolved by reference to a private judge sitting without a jury, pursuant to Code of Civil Procedure Section 638, before a
mutually acceptable referee or, if the parties cannot agree, a referee selected by the Presiding Judge of the Santa Clara County,
California. Such proceeding shall be conducted in Santa Clara County, California, with California rules of evidence and discovery
applicable to such proceeding.

 

(c)                
In
the event Claims are to be resolved by judicial reference, either party may seek from a court identified in Section 11.10, any
prejudgment order, writ or other relief and have such prejudgment order, writ or other relief enforced to the fullest extent permitted
by law notwithstanding that all Claims are otherwise subject to resolution by judicial reference.

 

11.12       
Professional Fees. Each Loan Party promises to pay Agent’s and the Lenders’ reasonable and documented out-of-pocket
fees and expenses necessary to finalize the loan documentation, including but not limited to reasonable attorneys’ fees,
UCC searches, filing costs, and other miscellaneous expenses. In addition, each Loan Party promises to pay any and all reasonable
and documented out-of-pocket attorneys’ and other professionals’ fees and expenses incurred by Agent and the Lenders
after the Closing Date in connection with or related to: (a) the Loan; (b) the administration, collection, or enforcement of the
Loan; (c) the amendment or modification of the Loan Documents; (d) any waiver, consent, release, or termination under the Loan
Documents; (e) the protection, preservation, audit, field exam, sale, lease, liquidation, or disposition of Collateral or the exercise
of remedies with respect to the Collateral; (f) any legal, litigation, administrative, arbitration, or out of court proceeding
in connection with or related to the Loan Parties or the Collateral, and any appeal or review thereof; and (g) any bankruptcy,
restructuring, reorganization, assignment for the benefit of creditors, workout, foreclosure, or other action related to the Loan
Parties, the Collateral, the Loan Documents, including representing Agent or the Lenders in any adversary proceeding or contested
matter commenced or continued by or on behalf of any Loan Party’s estate, and any appeal or review thereof.

 

11.13        
Confidentiality. Agent and the Lenders acknowledge that certain items of Collateral and information provided to Agent and the Lenders
by the Loan Parties are confidential and proprietary information of the Loan Parties, if and to the extent such information either
(x) is marked as confidential by the Loan Parties at the time of disclosure, or (y) should reasonably be understood to be confidential
(the “Confidential Information”). Accordingly, Agent and the Lenders agree that any Confidential Information it may
obtain in the course of acquiring, administering, or perfecting Agent’s security interest in the Collateral shall not be
disclosed to any other Person or entity in any manner whatsoever, in whole or in part, without the prior written consent of the
Loan Parties, except that Agent and the Lenders may disclose any such information: (a) 
to its Affiliates and its partners, investors, lenders, directors, officers, employees, agents, advisors, counsel, accountants,
counsel, representative and other professional advisors if Agent or the Lenders in their sole discretion determines that any such
party should have access to such information in connection with such party’s responsibilities in connection with the Loan
or this Agreement and, provided that such recipient of such Confidential Information either (i) agrees to be bound by the confidentiality
provisions of this paragraph or (ii) is otherwise subject to confidentiality restrictions that reasonably protect against the
disclosure of Confidential Information; (b) if such information is generally available to the public; (c) if required or appropriate
in any report, statement or testimony submitted to any governmental authority having or claiming to have jurisdiction over Agent
or the Lenders and any rating agency; (d) if required or appropriate in response to any summons or subpoena or in connection with
any litigation, to the extent permitted or deemed advisable by Agent’s or the Lenders’ counsel; (e) to comply with
any legal requirement or law applicable to Agent or the Lenders or demanded by any governmental authority; (f) to the extent reasonably
necessary in connection with the exercise of, or preparing to exercise, or the enforcement of, or preparing to enforce, any right
or remedy under any Loan Document (including Agent’s sale, lease, or other disposition of Collateral after default), or
any action or proceeding relating to any Loan Document; (g) to any participant or assignee of Agent or the Lenders or any prospective
participant or assignee, provided, that such participant or assignee or prospective participant or assignee is subject to substantially
the same confidential restrictions provided for in this agreement with respect to disclosure of Confidential Information; (h)
otherwise to the extent consisting of general portfolio information that does not identify the Loan Parties; or (i) otherwise
with the prior consent of the Loan Parties; provided, that any disclosure made in violation of this Agreement shall not affect
the obligations of the Loan Parties or any of their respective Affiliates or any guarantor under this Agreement or the other Loan
Documents. Agent’s and the Lenders’ obligations under this Section 11.13 shall supersede all of their respective obligations
under the Non-Disclosure Agreement.

 

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11.14       
Assignment of Rights. Each Loan Party acknowledges and understands that Agent or the Lenders may, subject to Section 11.7,
sell and assign all or part of its interest hereunder and under the Loan Documents to any Person or entity (an “Assignee”).
After such assignment the term “Agent” or “Lender” as used in the Loan Documents shall mean and include
such Assignee, and such Assignee shall be vested with all rights, powers and remedies of Agent and the Lenders hereunder with respect
to the interest so assigned; but with respect to any such interest not so transferred, Agent and the Lenders shall retain all rights,
powers and remedies hereby given. No such assignment by Agent or the Lenders shall relieve any Loan Party of any of its obligations
hereunder. the Lenders agrees that in the event of any transfer by it of the promissory note(s) (if any), it will endorse thereon
a notation as to the portion of the principal of the promissory note(s), which shall have been paid at the time of such transfer
and as to the date to which interest shall have been last paid thereon.

 

11.15       
Revival of Secured Obligations. This Agreement and the Loan Documents shall remain in full force and effect and continue
to be effective if any petition is filed by or against any Loan Party for liquidation or reorganization, if any Loan Party becomes
insolvent or makes an assignment for the benefit of creditors, if a receiver, administrator or trustee is appointed for all or
any significant part of any Loan Party’s assets, or if any payment or transfer of Collateral is recovered from Agent or the
Lenders. The Loan Documents and the Secured Obligations and Collateral security shall continue to be effective, or shall be revived
or reinstated, as the case may be, if at any time payment and performance of the Secured Obligations or any transfer of Collateral
to Agent, or any part thereof is rescinded, avoided or avoidable, reduced in amount, or must otherwise be restored or returned
by, or is recovered from, Agent, the Lenders or by any obligee of the Secured Obligations, whether as a “voidable preference,”
“fraudulent conveyance,” or otherwise, all as though such payment, performance, or transfer of Collateral had not been
made. In the event that any payment, or any part thereof, is rescinded, reduced, avoided, avoidable, restored, returned, or recovered,
the Loan Documents and the Secured Obligations shall be deemed, without any further action or documentation, to have been revived
and reinstated except to the extent of the full, final, and indefeasible payment to Agent or the Lenders in Cash.

 

11.16       
Counterparts. This Agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of
counterparts, and by different parties hereto in separate counterparts, each of which when so delivered shall be deemed an original,
but all of which counterparts shall constitute but one and the same instrument.

 

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11.17        No
Third Party Beneficiaries. No provisions of the Loan Documents are intended, nor will be interpreted, to provide or create
any third-party beneficiary rights or any other rights of any kind in any Person other than Agent, the Lenders and the Loan
Parties unless specifically provided otherwise herein, and, except as otherwise so provided, all provisions of the Loan
Documents will be personal and solely among Agent, the Lenders and the Loan Parties.

 

11.18       
Agency. Agent and each Lender hereby agree to the terms and conditions set forth on Addendum 2 attached hereto. Each Loan
Party acknowledges and agrees to the terms and conditions set forth on Addendum 2 attached hereto.

 

11.19       
Publicity. None of the parties hereto nor any of its respective member businesses and Affiliates shall, without the other
parties’ prior written consent (which shall not be unreasonably withheld or delayed), publicize or use (a) the other party’s
name (including a brief description of the relationship among the parties hereto), logo or hyperlink to such other parties’
web site, separately or together, in written and oral presentations, advertising, promotional and marketing materials, client lists,
public relations materials or on its web site (together, the “Publicity Materials”); (b) the names of officers of such
other parties in the Publicity Materials; and (c) such other parties’ name, trademarks, servicemarks in any news or press
release concerning such party; provided however, notwithstanding anything to the contrary herein, no such consent shall be required
(i) to the extent necessary to comply with the requests of any regulators, legal requirements or laws applicable to such party,
pursuant to any listing agreement with any national securities exchange (so long as such party provides prior notice to the other
party hereto to the extent reasonably practicable) and (ii) to comply with Section 11.13.

 

11.20       
Multiple Borrowers. Each Loan Party hereby agrees to the terms and conditions set forth on Addendum 3 attached hereto.

 

11.21       
Electronic Execution of Certain Other Documents. The words “execution,” “execute”, “signed,”
“signature,” and words of like import in or related to any document to be signed in connection with this Agreement
and the transactions contemplated hereby (including without limitation assignments, assumptions, amendments, waivers and consents)
shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic
platforms approved by the Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be,
to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce
Act, the California Uniform Electronic Transaction Act, or any other similar state laws based on the Uniform Electronic Transactions
Act.

 

(SIGNATURES TO FOLLOW)

 

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IN WITNESS WHEREOF, the Loan Party,
Agent and the Lenders have duly executed and delivered this Loan and Security Agreement as of the day and year first above written.

 

	 	BORROWERS:
	 	 
	 	BICYCLE THERAPEUTICS
    PLC
	 	 
	 	Signature: 	/s/ Kevin Lee
	 	Print Name: 	Kevin Lee
	 	Title: 	Director
	 	 
	 	BICYCLETX LIMITED
	 	 
	 	Signature: 	/s/ Kevin Lee
	 	Print Name: 	Kevin Lee
	 	Title: 	Director
	 	 
	 	BICYCLERD LIMITED
	 	 
	 	Signature:	/s/ Kevin Lee
	 	Print Name:	 Kevin Lee
	 	Title: 	Director
	 	 
	 	BICYCLE THERAPEUTICS
    INC.
	 	 
	 	Signature: 	/s/ Lee Kolakowski
	 	Print Name: 	Lee Kalowski
	 	Title: 	President

 

[Signature Page to Loan and Security Agreement]

 

     

     

    

 

Accepted
in Palo Alto, California:

 

	 	AGENT:	 
	 	 	 
	 	HERCULES CA
	 	 	 
	 	Signature:	/s/ Jennifer Choe
	 	 	 
	 	Print Name:	JenniferChoe
	 	 	 
	 	Title:	Associate GeneralCounsel
	 	 	 
	 	LENDERS:
	 	 
	 	HERCULESC
	 	 
	 	Signature:.	/s/
    Jennifer Choe
	 	 	 
	 	Print Name:	Jennifer Choe
	 	 	 
	 	Title:	Associate GeneralCounsel

 

[Signature Page to Loan and Security Agreement]

 

     

     

    

 

Table of Addenda, Exhibits and Schedules

 

	Addendum
    1:	Taxes; Increased
    Costs
	 	 
	Addendum 2:	Agent and Lender Terms
	 	 
	Addendum 3:	Multiple Borrower Terms
	 	 
	Exhibit E:	Compliance Certificate
	 	 
	Exhibit F:	Joinder Agreement
	 	 
	Exhibit J-1:	Form of U.S. Tax Compliance
    Certificate (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)
	 	 
	Exhibit J-2:	Form of U.S. Tax Compliance
    Certificate (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)
	 	 
	Exhibit J-3:	Form of U.S. Tax Compliance
    Certificate (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)
	 	 
	Exhibit J-4:	Form of U.S. Tax Compliance
    Certificate (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)
	 	 
	Schedule 1.1	Commitments

 

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ADDENDUM 1 to LOAN AND SECURITY AGREEMENT

 

TAXES; INCREASED COSTS

 

1.      
Defined Terms. For purposes of this Addendum 1:

 

		a.	“Assignment” means
                                         the relevant documentation entered into by an Assignee upon the an assignment of all
                                         or part of the Agent or Lenders’ interest under this Agreement or the Loan Documents
                                         in accordance with Section 11.7.

 

		b.	“Connection Income Taxes” means Other Connection Taxes
that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

 

		c.	“Excluded Taxes” means any of the following Taxes imposed on or with respect
to a Recipient or required to be withheld or deducted from a payment to a Recipient, (i) Taxes imposed on or measured by net income
or profits (however denominated), franchise Taxes, and branch profits Taxes, in each case, (A) imposed as a result of such Recipient
being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office
located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (B) that are Other Connection Taxes, (ii)
in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect
to an applicable interest in a Loan or Term Commitment pursuant to a law in effect on the date on which (A) such Lender acquires
such interest in the Loan or Term Commitment or (B) such Lender changes its lending office, except in each case to the extent that,
pursuant to Section 2 or Section 5 of this Addendum 1, amounts with respect to such Taxes were payable either to such Lender’s
assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office,
(iii) Taxes attributable to such Recipient’s failure to comply with Section 8 of this Addendum 1, and (iv) any withholding
Taxes imposed under FATCA.

 

		d.	“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this
Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with),
any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1)
of the Code, and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement,
treaty or convention among governmental authorities and implementing such Sections of the Code.

 

		e.	“Foreign Lender” means a Lender that
is not a U.S. Person.

 

		f.	“Indemnified Taxes” means (i) Taxes, other than Excluded Taxes, imposed on or with respect to any payment
made by or on account of any obligation of any Loan Party under any Loan Document and (ii) to the extent not otherwise described
in clause (i), Other Taxes.

 

		g.	“Other Connection Taxes” means, with
respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction
imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed
its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction
pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document) or as a result of the fact that any
Borrower is incorporated in the United Kingdom.

 

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		h.	“Other Taxes” means all present or future stamp, court or documentary, registration,
intangible, recording, filing, VAT or similar Taxes that arise from any payment made under, from the execution, delivery, performance,
enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any
Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment.

 

		i.	“Recipient” means the Agent or any
Lender, as applicable.

		 	 

		j.	“UK Borrower DTTP Filing” means an
HM Revenue & Customs’ Form DTTP2 duly completed and filed by the relevant Borrower, which: (i) where it relates to a
UK Treaty Lender that is a Lender on the Closing Date, contains the scheme reference number and jurisdiction of tax residence
of the Lender, and (a) where the Borrower is a Borrower on the Closing Date, is filed with HM Revenue & Customs within 30
days of the Closing Date; or (b) where the Borrower becomes a Borrower after the Closing Date, is filed with HM Revenue &
Customs within 30 days of the date on which that Borrower becomes a Borrower under this Agreement; or (ii) where it relates to
a UK Treaty Lender that is not an Lender on the Closing Date, contains the scheme reference number and jurisdiction of tax residence
stated in respect of that Lender in the relevant Assignment (or, if such Lender becomes Lender otherwise than pursuant to an Assignment,
in the relevant documentation which it executes on becoming a Lender under this Agreement); and (a) where the Borrower is a Borrower
as at the date on which that UK Treaty Lender becomes a Lender under this Agreement, is filed with HM Revenue & Customs within
30 days of that date; or (b) where the Borrower is not a Borrower as at the date on which that UK Treaty Lender becomes a Lender
under this Agreement, is filed with HM Revenue & Customs within 30 days of the date on which that Borrower becomes a Borrower
under this Agreement; provided that, in the event that a Borrower uses a HM Revenue & Customs’ Form DTTP2A to make a
filing in respect of more than one Lender, such Form DTTP2A shall be deemed to be a HM Revenue & Customs’ Form DTTP2
in respect of each UK Treaty Lender specified therein.

		 	 

		k.	“UK CTA” means the UK Corporation
Tax Act 2009.

		 	 

		l.	“UK ITA” means the UK Income Tax Act
2007.

		 	 

		m.	“UK Loan Party” means any Loan Party
which is treated as resident in the United Kingdom for any Tax purpose, including under the terms of any UK Treaty.

 

		n.	“UK Non-Bank Lender” means: a Lender which gives a UK Tax Confirmation in the
relevant Assignment (or, if such Lender becomes Lender otherwise than pursuant to an Assignment, in the relevant documentation
which it executes on becoming a Lender under this Agreement).

 

		o.	“UK Qualifying Lender” means a Lender which is beneficially entitled to interest
payable to that Lender in respect of an advance under a Loan Document and is (a) a Lender: (i) which is a bank (as defined for
the purpose of section 879 of the UK ITA) making an advance under a Loan Document and is within the charge to UK corporation tax
as respects any payments of interest made in respect of that advance or would be within such charge as respects such payments apart from section
18A of the UK CTA; or (ii) in respect of an advance made under a Loan Document by a person
that was a bank (as defined for the purpose of section 879 of the UK ITA) at the time that that advance was made and within the
charge to UK corporation tax as respects any payments of interest made in respect of that advance; or (b) a Lender which is: (i)
a company resident in the United Kingdom for UK tax purposes; or (ii) a partnership each member of which is: (1) a company so resident
in the United Kingdom; or (2) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through
a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of
the UK CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the
UK CTA; or (iii) a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent
establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within
the meaning of section 19 of the CTA) of that company; or (c) a UK Treaty Lender.

 

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		p.	“UK Tax Confirmation” means a confirmation
by a Lender that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Loan Document
is either: (a) a company resident in the United Kingdom for United Kingdom tax purposes; or (b) a partnership each member of which is: (i) a company so resident in the United Kingdom; or (ii)
a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment
and which brings into account in computing its chargeable profits (within the meaning of section 19 of the UK CTA) the whole of
any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the UK CTA; or (c) a company
not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which
brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section
19 of the UK CTA) of that company.

 

		q.	“UK Tax Deduction” means a deduction
or withholding for or on account of Tax imposed by the United Kingdom from a payment under a Loan Document, other than a deduction
or withholding required by FATCA.

 

		r.	“UK Treaty Lender” means a Lender which: (1) is treated as a resident of a UK
Treaty State for the purposes of a UK Treaty; (2) does not carry on a business in the United Kingdom through a permanent establishment
with which that Lender’s participation in the Loan is effectively connected; and (3) fulfils any other conditions which must
be fulfilled under that UK Treaty to obtain full exemption from United Kingdom tax on interest payable to that Lender in respect
of an advance under a Loan Document, subject to the completion of all procedural requirements.

 

		s.	“UK Treaty State” means a jurisdiction having a double tax treaty with the United
Kingdom (“UK Treaty”) which makes provision for full exemption from tax imposed by the United Kingdom on interest.

 

		t.	“Withholding Agent” means any Loan
Party and the Agent.

 

		2.	Payments Free of Taxes. Any and all payments by
or on account of any obligation of any Loan Party under any Loan Document shall be made without deduction or withholding for any
Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of an applicable
Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable
Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld
to the relevant governmental authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum
payable by the applicable Loan Party shall be increased as necessary so that after such deduction or withholding has been made
(including such deductions and withholdings applicable to additional sums payable under this Section 2 or Section 5 of this Addendum
1) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been
made.

 

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		3.	Gross-up Exclusion. A payment by a UK Loan Party shall not be increased under Section 2 of
this Addendum 1, and, for the avoidance of doubt, no amount shall be payable pursuant to Section 5 of this Addendum 1, by reason
of a UK Tax Deduction if, on the date on which the payment falls due:

 

		a.	the payment could have been made to the relevant Lender without a Tax Deduction if the Lender had
been a UK Qualifying Lender, but on that date that Lender is not or has ceased to be a UK Qualifying Lender other than as a result
of any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application
of) any law or UK Treaty or any published practice or published concession of any relevant taxing authority; or

 

		b.	the relevant Lender is a UK Qualifying Lender solely by virtue of paragraph
(b) of the definition of UK Qualifying Lender and:

 

		i.	an officer of HM Revenue & Customs has given (and not revoked) a direction (a “Direction”) under section
931 of the UK ITA which relates to the payment and that Lender has received from the Loan Party making the payment a certified
copy of that Direction; and

 

ii.     
the payment could have been made to the Lender without any UK Tax Deduction if that Direction had not been made; or

 

		c.	the relevant Lender is a UK Qualifying Lender solely by virtue of paragraph
(b) of the definition of UK Qualifying Lender and:

 

i.     
the relevant Lender has not given a UK Tax Confirmation to the relevant UK Loan Party; and

 

		ii.	the payment could have been made to the Lender without any UK Tax Deduction if the Lender had given
a UK Tax Confirmation to the relevant UK Loan Party, on the basis that the UK Tax Confirmation would have enabled such UK Loan
Party to have formed a reasonable belief that the payment was an “excepted payment” for the purpose of section 930
of the UK ITA; or

 

		d.	the relevant Lender is a UK Treaty Lender and the UK
Loan Party making the payment is able to demonstrate that the payment could have been made to the Lender without the UK Tax Deduction
had that Lender complied with its obligations under Sections 8(c)(i), (ii) and (iii)  (as
applicable) below.

 

		4.	Payment of Other Taxes by the Loan Parties. The Loan Parties
                                                           shall timely pay to the relevant governmental authority in accordance with applicable law, or at the option of the Agent
                                                           timely reimburse it for the payment of, any
Other Taxes. 

 

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		5.	Indemnification by the Loan Parties. The Loan
Parties shall joint and severally indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified
Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under Section 2 of this Addendum
1 or this Section 5) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient
and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or
legally imposed or asserted by the relevant governmental authority provided that the foregoing indemnity shall not apply to any
Indemnified Taxes which would have been compensated for by an increased payment under Section 2 of this Addendum 1 but was not
so compensated solely because one or more of the exclusions in Section 3 of this Addendum 1 applied. A certificate as to the amount
of such payment or liability delivered to the Loan Parties in accordance with Section 11.2 by a Lender (with a copy to the Agent),
or by the Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

		6.	Indemnification by the Lenders. Each Lender shall
severally indemnify the Agent, within 10 days after written demand therefor, for (a) any Indemnified Taxes attributable to such
Lender (but only to the extent that any Loan Party has not already indemnified the Agent for such Indemnified Taxes and without
limiting the obligation of the Loan Parties to do so), (b) any Taxes attributable to such Lender’s failure to comply with
the provisions of Section 11.7 of the Agreement relating to the maintenance of a Participant Register and (c) any Excluded Taxes
attributable to such Lender, in each case, that are payable or paid by the Agent in connection with any Loan Document, and any
reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or
asserted by the relevant governmental authority. A certificate as to the amount of such payment or liability delivered to any
Lender by the Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Agent to set off and apply any
and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Agent to the Lender from
any other source against any amount due to the Agent under this Section 6.

 

		7.	Evidence of Payments. As soon as practicable after any payment of Taxes by any Loan Party
to a governmental authority pursuant to the provisions of this Addendum 1, such Loan Party shall deliver to the Agent the original
or a certified copy of a receipt issued by such governmental authority evidencing such payment, a copy of the return reporting
such payment or other evidence of such payment reasonably satisfactory to the Agent.

 

		8.	Status of Lenders.

 

		a.	Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan
Document (other than with respect to a UK Tax Deduction to which the provisions of Section 8(c) shall apply, as applicable) shall
deliver to Parent and the Agent, at the time or times reasonably requested by the Loan Parties or the Agent, such properly completed
and executed documentation reasonably requested by the Loan Parties or the Agent as will permit such payments to be made without
withholding or at a reduced rate of withholding. In addition, any Lender (other than with respect to a UK Tax Deduction to which
the provisions of Section 8(c) below shall apply, as applicable), if reasonably requested by the Loan Parties or the Agent, shall
deliver such other documentation prescribed by applicable law or reasonably requested by the Loan Parties or the Agent as will
enable the Loan Parties or the Agent to determine whether or not such Lender is subject to backup withholding or information reporting
requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission
of such documentation (other than such documentation set forth in Sections 8.b.i, 8.b.ii and 8.b.iv of this Addendum
1) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such
Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

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		b.	Without limiting the generality of the foregoing, in the event that any Loan
Party is a U.S. Person,

 

		i.	any Lender that is a U.S. Person shall deliver to such Loan Party and the Agent on or prior to the date on which such Lender
becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the such Loan Party or the
Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

 

		ii.	any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to such Loan Party
and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender
becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of such Loan Party or the Agent),
whichever of the following is applicable:

 

		A.	in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with
respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an
exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty
and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E establishing
an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other
income” article of such tax treaty;

 

B.     
executed copies of IRS Form W-8ECI;

 

		C.	in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under
Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit J-1 to the effect that such Foreign Lender is
not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “ten percent shareholder” of such
Loan Party within the meaning of Section 871(h)(3)(B) of the Code, or a “controlled foreign corporation” related to
any Loan Party as described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y)
executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E; or

 

		D.	to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY,
accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form
of Exhibit J-2 or Exhibit J-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided
that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the
portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form
of Exhibit J-4 on behalf of each such direct and indirect partner;

 

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		iii.	any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Loan Parties
and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender
becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Loan Parties or the
Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in
U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable
law to permit the Loan Parties or the Agent to determine the withholding or deduction required to be made; and

 

		iv.	if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if
such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b)
or 1472(b) of the Code, as applicable), such Lender shall deliver to the Loan Parties and the Agent at the time or times prescribed
by law and at such time or times reasonably requested by the Loan Parties or the Agent such documentation prescribed by applicable
law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by
the Loan Parties or the Agent as may be necessary for the Loan Parties and the Agent to comply with their obligations under FATCA
and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount, if
any, to deduct and withhold from such payment. Solely for purposes of this clause (iv), “FATCA” shall include any amendments
made to FATCA after the date of this Agreement.

 

		c.	Without limiting the generality of the foregoing:

 

		i.	Subject to sub-section ii below, a UK Treaty Lender and each UK Loan Party which makes a payment
to which that UK Treaty Lender is entitled shall co-operate in completing any procedural formalities necessary for that UK Loan
Party to obtain authorization to make that payment without a UK Tax Deduction.

 

ii.

 

		A.	A UK Treaty Lender which is a Lender on the Closing Date and that holds a passport under the HM
Revenue & Customs DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme
reference number and its jurisdiction of tax residence (and Hercules Capital, Inc. hereby confirms that its scheme reference number
is 13/H/370777/DTTP and its jurisdiction of tax residence is the United States of America; and

 

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		B.	a UK Treaty Lender which is not a Lender on the Closing Date and that holds a passport under the
HM Revenue & Customs DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its
scheme reference number and its jurisdiction of tax residence in the relevant Assignment (or, if such Lender becomes Lender otherwise
than pursuant to an Assignment, in the relevant documentation
which it executes on becoming a Lender under this Agreement), 
	 	 	 
	 	and, having done so, that Lender shall be under no obligation pursuant
to sub-section i above.

 

		iii.	If a UK Treaty Lender has confirmed its scheme reference number and its jurisdiction of tax residence
in accordance with sub-section ii above and: (a) the UK Loan Party making a payment to that Lender has not made a UK Borrower DTTP
Filing in respect of that Lender; or (b) the UK Loan Party making a payment to that Lender has made a UK Borrower DTTP Filing but
(1) that UK Borrower DTTP Filing has been rejected by HM Revenue & Customs; or (2) HM Revenue & Customs have not given
the UK Loan Party authority to make payments to that Lender without a UK Tax Deduction within 60 days of the date of the UK Borrower
DTTP Filing, and in each case, the UK Loan Party has notified that Lender in writing, that Lender and the UK Loan Party shall co-operate
in completing any procedural formalities necessary for the UK Loan Party to obtain authorization to make that payment without a
UK Tax Deduction.

 

		iv.	If a UK Treaty Lender has not confirmed its scheme reference number and jurisdiction of tax residence
in accordance with sub-section ii above, the UK Loan Party shall not make a UK Borrower DTTP Filing or file any other form relating
to the HM Revenue & Customs DT Treaty Passport scheme in respect of that Lender’s Loan(s) unless that Lender otherwise
agrees.

 

		v.	The UK Loan Party shall, promptly on making a UK Borrower DTTP Filing, deliver a copy of that UK
Borrower DTTP Filing to the Agent for delivery to the relevant UK Treaty Lender.

 

		vi.	A UK Non-Bank Lender which becomes a party to this Agreement on the day on which this agreement
is entered into gives a UK Tax Confirmation by entering into this Agreement. A UK Non-Bank Lender shall promptly notify the Borrowers
and the Agent if there is any change in the position from that set out in the UK Tax Confirmation.

 

		vii.	Each Lender in respect of any UK Loan Party which becomes a party to this Agreement after the Closing Date shall indicate in
the Assignment (or, if such Lender becomes Lender otherwise than pursuant to an Assignment, in the relevant documentation which
it executes on becoming a Lender under this Agreement) which of the following categories it falls in: (A) not a UK Qualifying Lender;
(B) a UK Qualifying Lender (other than a UK Treaty Lender); or (C) a UK Treaty Lender. If a Lender fails to indicate its status
in accordance with this sub-section (vii) then such Lender shall be treated for the purposes of this Agreement (including by each
UK Loan Party) as if it is not a UK Qualifying Lender until such time as it notifies the Agent which category applies (and the
Agent, upon receipt of such notification, shall inform each UK Loan Party). For the avoidance of doubt, any such Assignment or
other relevant documentation shall not be invalidated by any such failure of a Lender to comply with this sub-section (vii).

 

		viii.	The UK Loan Parties shall promptly on becoming aware
that a UK Loan Party must make a UK Tax Deduction (or that there
is any change in the rate or basis of a UK Tax Deduction) notify the Agent accordingly. Similarly,
a Lender shall notify the Agent on becoming so aware in respect of a payment payable to that Lender. If the Agent receives such
notification from a Lender it shall promptly notify the UK Loan Parties.

 

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		d.	Each Lender agrees that if any form or certification it previously delivered expires or becomes
obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify Parent and the Agent in writing
of its legal inability to do so.

 

		9.	Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in
good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to the provisions of this Addendum
1 (including by the payment of additional amounts pursuant to the provisions of this Addendum 1), it shall pay to the indemnifying
party an amount equal to such refund (but only to the extent of indemnity payments made under the provisions of this Addendum 1
with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified
party and without interest (other than any interest paid by the relevant governmental authority with respect to such refund). Such
indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant
to this Section 9 (plus any penalties, interest or other charges imposed by the relevant governmental authority) in the event that
such indemnified party is required to repay such refund to such governmental authority. Notwithstanding anything to the contrary
in this Section 9, in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this
Section 9 the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified
party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or
otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This Section
9 shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating
to its Taxes that it deems confidential) to the indemnifying party or any other Person.

 

		10.	Increased Costs. If any change in applicable law shall subject any Recipient to any Taxes (other than (A) Indemnified
Taxes (or amounts which would have been compensated for by an increased payment under Section 2 or indemnifiable under Section
5 but for (in either case) the application of one or more of the exclusions in Section 3), (B) Taxes described in clauses (ii)
through (iv) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, commitments, or
other obligations, or its deposits, reserves, other liabilities or capital attributable thereto, and the result shall be to increase
the cost to such Recipient of making, converting to, continuing or maintaining any Term Loan or of maintaining its obligation to
make any such Loan, or to reduce the amount of any sum received or receivable by such Recipient (whether of principal, interest
or any other amount), then, upon the request of such Recipient, the Loan Parties will pay to such Recipient such additional amount
or amounts as will compensate such Recipient for such additional costs incurred or reduction suffered.

 

		11.	U.S. Tax Reporting. For the avoidance of doubt, the Parties agree not to treat the Term Loan
as a “contingent payment debt instrument” for U.S. federal income tax purposes unless otherwise required by applicable
law; provided that if either Party determines that a contrary tax reporting position is so required by applicable law, such Party
shall consult with the other Party in good faith before taking such position.

 

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		12.	Survival. Each party’s obligations under
the provisions of this Addendum 1 shall survive the resignation or replacement of the Agent or any assignment of rights by, or
the replacement of, a Lender, the termination of the Term Commitments and the repayment, satisfaction or discharge of all obligations
under any Loan Document.

 

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ADDENDUM 2 to LOAN AND SECURITY AGREEMENT

 

Agent and Lender Terms

 

(a)               
Each Lender hereby irrevocably appoints Hercules Capital, Inc. to act on its behalf as the Agent hereunder and under the
other Loan Documents and authorizes the Agent to take such actions on its behalf and to exercise such powers as are delegated to
the Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.

 

(b)               
Each Lender agrees to indemnify the Agent in its capacity as such (to the extent not reimbursed by the Loan Parties and
without limiting the obligation of the Loan Parties to do so), according to its respective Term Commitment percentages (based upon
the total outstanding Term Commitments) in effect on the date on which indemnification is sought under this Addendum 2, from and
against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever that may at any time be imposed on, incurred by or asserted against the Agent in any way relating to or
arising out of, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein
or the transactions contemplated hereby or thereby or any action taken or omitted by the Agent under or in connection with any
of the foregoing; The agreements in this Section shall survive the payment of the Loans and all other amounts payable hereunder.

 

(c)               
Agent in Its Individual Capacity. The Person serving as the Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it were not the Agent and the term “Lender”
shall, unless otherwise expressly indicated or unless the context otherwise requires, include each such Person serving as Agent
hereunder in its individual capacity.

 

(d)               
Exculpatory Provisions. The Agent shall have no duties or obligations except those expressly set forth herein and in the
other Loan Documents. Without limiting the generality of the foregoing, the Agent shall not:

 

		(i)	be subject to any fiduciary or other implied duties,
regardless of whether any default or any Event of Default has occurred and is continuing;

 

		(ii)	have any duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents that the Agent is required to exercise as directed
in writing by the Lenders, provided that the Agent shall not be required to take any action that, in its opinion or the opinion
of its counsel, may expose the Agent to liability or that is contrary to any Loan Document or applicable law; and

 

		(iii)	except as expressly set forth herein and in the other Loan Documents, have any duty to disclose,
and the Agent shall not be liable for the failure to disclose, any information relating to the Loan Parties or any of their respective
Affiliates that is communicated to or obtained by any Person serving as the Agent or any of its Affiliates in any capacity.

 

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(e)               
The Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Lenders
or as the Agent shall believe in good faith shall be necessary, under the circumstances or (ii) in the absence of its own gross
negligence or willful misconduct.

 

(f)                
The Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation
made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other
document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any default or Event of
Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other
agreement, instrument or document or (v) the satisfaction of any condition set forth in Section 4 or elsewhere herein, other than
to confirm receipt of items expressly required to be delivered to the Agent. Reliance by Agent. Agent may rely, and shall be fully
protected in acting, or refraining to act, upon, any resolution, statement, certificate, instrument, opinion, report, notice, request,
consent, order, bond or other paper or document that it has no reason to believe to be other than genuine and to have been signed
or presented by the proper party or parties or, in the case of cables, telecopies and telexes, to have been sent by the proper
party or parties. In the absence of its gross negligence or willful misconduct, Agent may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to Agent and
conforming to the requirements of this Agreement or any of the other Loan Documents. Agent may consult with counsel, and any opinion
or legal advice of such counsel shall be full and complete authorization and protection in respect of any action taken, not taken
or suffered by Agent hereunder or under any Loan Documents in accordance therewith. Agent shall have the right at any time to seek
instructions concerning the administration of the Collateral from any court of competent jurisdiction. Agent shall not be under
any obligation to exercise any of the rights or powers granted to Agent by this Agreement and the other Loan Documents at the request
or direction of the Lenders unless Agent shall have been provided by the Lenders with adequate security and indemnity against the
costs, expenses and liabilities that may be incurred by it in compliance with such request or direction.

 

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ADDENDUM 3 to LOAN AND SECURITY AGREEMENT

 

Multiple Loan Parties.

 

(a)               
Loan Party’s Agent. Each Loan Party hereby irrevocably appoints Parent as its agent, attorney-in-fact and legal representative
for all purposes, including requesting disbursement of the Term Loan and receiving account statements and other notices and communications
to such Loan Party (or any of them) from the Agent or any Lender. The Agent may rely, and shall be fully protected in relying,
on any request for the Term Loan, disbursement instruction, report, information or any other notice or communication made or given
by Parent, whether in its own name or on behalf of one or more of the other Loan Parties, and the Agent shall not have any obligation
to make any inquiry or request any confirmation from or on behalf of any other Loan Party as to the binding effect on it of any
such request, instruction, report, information, other notice or communication, nor shall the joint and several character of the
Loan Parties’ obligations hereunder be affected thereby.

 

(b)               
Waivers. Each Loan Party hereby waives: (i) any right to require the Agent to institute suit against, or to exhaust its
rights and remedies against, any other Loan Party or any other person, or to proceed against any property of any kind which secures
all or any part of the Secured Obligations, or to exercise any right of offset or other right with respect to any reserves, credits
or deposit accounts held by or maintained with the Agent or any Indebtedness of the Agent or any Lender to any other Loan Party,
or to exercise any other right or power, or pursue any other remedy the Agent or any Lender may have; (ii) any defense arising
by reason of any disability or other defense of any other Loan Party or any guarantor or any endorser, co-maker or other person,
or by reason of the cessation from any cause whatsoever of any liability of any other Loan Party or any guarantor or any endorser,
co-maker or other person, with respect to all or any part of the Secured Obligations, or by reason of any act or omission of the
Agent or others which directly or indirectly results in the discharge or release of any other Loan Party or any guarantor or any
other person or any Secured Obligations or any security therefor, whether by operation of law or otherwise; (iii) any defense
arising by reason of any failure of the Agent to obtain, perfect, maintain or keep in force any Lien on, any property of any Loan
Party or any other person; (iv) any defense based upon or arising out of any bankruptcy, insolvency, reorganization, arrangement,
readjustment of debt, liquidation or dissolution proceeding commenced by or against any other Loan Party or any endorser, co-maker
or other person, including without limitation any discharge of, or bar against collecting, any of the Secured Obligations (including
without limitation any interest thereon), in or as a result of any such proceeding. Until all of the Secured Obligations (other
than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement)
have been paid, performed, and discharged in full, nothing shall discharge or satisfy the liability of any Loan Party hereunder
except the full performance and payment of all of the Secured Obligations. If any claim is ever made upon the Agent for repayment
or recovery of any amount or amounts received by the Agent in payment of or on account of any of the Secured Obligations, because
of any claim that any such payment constituted a preferential transfer or fraudulent conveyance, or for any other reason whatsoever,
and the Agent repays all or part of said amount by reason of any judgment, decree or order of any court or administrative body
having jurisdiction over the Agent or any of its property, or by reason of any settlement or compromise of any such claim effected
by the Agent with any such claimant (including without limitation the any other Loan Party), then and in any such event, each
Loan Party agrees that any such judgment, decree, order, settlement and compromise shall be binding upon such Loan Party, notwithstanding
any revocation or release of this Agreement or the cancellation of any note or other instrument evidencing any of the Secured
Obligations, or any release of any of the Secured Obligations, and each Loan Party shall be and remain liable to the Agent and
the Lenders under this Agreement for the amount so repaid or recovered, to the same extent as if such amount had never originally
been received by the Agent or any Lender, and the provisions of this sentence shall survive, and continue in effect, notwithstanding
any revocation or release of this Agreement. Each Loan Party hereby expressly and unconditionally waives all rights of subrogation,
reimbursement and indemnity of every kind against any other Loan Party, and all rights of recourse to any assets or property of
any other Loan Party, and all rights to any collateral or security held for the payment and performance of any Secured Obligations,
including (but not limited to) any of the foregoing rights which any Loan Party may have under any present or future document
or agreement with any other Loan Party or other person, and including (but not limited to) any of the foregoing rights which any
Loan Party may have under any equitable doctrine of subrogation, implied contract, or unjust enrichment, or any other equitable
or legal doctrine.

 

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(c)               
Consents. Each Loan Party hereby consents and agrees that, without notice to or by any Loan Party and without affecting
or impairing in any way the obligations or liability of any Loan Party hereunder, the Agent may, from time to time before or after
revocation of this Agreement, do any one or more of the following in its sole and absolute discretion: (i) accept partial payments
of, compromise or settle, renew, extend the time for the payment, discharge, or performance of, refuse to enforce, and release
all or any parties to, any or all of the Secured Obligations; (ii) grant any other indulgence to any Loan Party or any other Person
in respect of any or all of the Secured Obligations or any other matter; (iii) accept, release, waive, surrender, enforce, exchange,
modify, impair, or extend the time for the performance, discharge, or payment of, any and all property of any kind securing any
or all of the Secured Obligations or any guaranty of any or all of the Secured Obligations, or on which the Agent at any time may
have a Lien, or refuse to enforce its rights or make any compromise or settlement or agreement therefor in respect of any or all
of such property; (iv) substitute or add, or take any action or omit to take any action which results in the release of, any one
or more other Loan Parties or any endorsers or guarantors of all or any part of the Secured Obligations, including, without limitation
one or more parties to this Agreement, regardless of any destruction or impairment of any right of contribution or other right
of any Loan Party; (v) apply any sums received from any other Loan Party, any guarantor, endorser, or co-signer, or from the disposition
of any Collateral or security, to any Indebtedness whatsoever owing from such person or secured by such Collateral or security,
in such manner and order as the Agent determines in its sole discretion, and regardless of whether such Indebtedness is part of
the Secured Obligations, is secured, or is due and payable. Each Loan Party consents and agrees that the Agent shall be under no
obligation to marshal any assets in favor of such Loan Party, or against or in payment of any or all of the Secured Obligations.
Each Loan Party further consents and agrees that the Agent shall have no duties or responsibilities whatsoever with respect to
any property securing any or all of the Secured Obligations. Without limiting the generality of the foregoing, the Agent shall
have no obligation to monitor, verify, audit, examine, or obtain or maintain any insurance with respect to, any property securing
any or all of the Secured Obligations.

 

(d)               
Independent Liability. Each Loan Party hereby agrees that one or more successive or concurrent actions may be brought hereon against
such Loan Party, in the same action in which any other Loan Party may be sued or in separate actions, as often as deemed advisable
by Agent. Each Loan Party is fully aware of the financial condition of each other Loan Party and is executing and delivering this
Agreement based solely upon its own independent investigation of all matters pertinent hereto, and such Loan Party is not relying
in any manner upon any representation or statement of the Agent or any Lender with respect thereto. Each Loan Party represents
and warrants that it is in a position to obtain, and each Loan Party hereby assumes full responsibility for obtaining, any additional
information concerning any other Loan Party’s financial condition and any other matter pertinent hereto as such Loan Party
may desire, and such Loan Party is not relying upon or expecting the Agent to furnish to it any information now or hereafter in
the Agent’s possession concerning the same or any other matter.

 

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(e)               
Subordination. All Indebtedness of a Loan Party or any Subsidiary of a Loan Party now or hereafter arising held by another
Loan Party is subordinated to the Secured Obligations and the Loan Party holding the Indebtedness shall take all actions reasonably
requested by Agent to effect, to enforce and to give notice of such subordination.

 

(f)                
Service of Process. Parent, BicycleTx, BicycleRD, and each Subsidiary that is organized outside of the United States of
America shall appoint CT Corporation System, or other agent acceptable to Agent, as its agent for the purpose of accepting service
of any process in the United States of America, evidenced by a service of process letter in form and substance satisfactory to
Agent (each, a “Process Letter”). Each Loan Party shall take all actions, including payment of fees to such agent,
to ensure that each Process Letter remains effective at all times.

 

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EXHIBIT E

 

COMPLIANCE CERTIFICATE

 

Hercules Capital, Inc. (as “Agent”)

400 Hamilton Avenue, Suite 310

Palo Alto, CA 94301

 

Reference is made to that certain Loan and
Security Agreement dated September 30, 2020 and the Loan Documents (as defined therein) entered into in connection with such Loan
and Security Agreement all as may be amended from time to time (hereinafter referred to collectively as the “Loan Agreement”)
by and among Hercules Capital, Inc. (the “Agent”), the several banks and other financial institutions or entities from
time to time party thereto (collectively, the “Lender”) and Bicycle Therapeutics plc, a public limited company organized
under the laws of England and Wales (the “Company”) and each other Borrower and Guarantor party thereto (collectively,
the “Loan Parties”). All capitalized terms not defined herein shall have the same meaning as defined in the Loan Agreement.

 

The undersigned is an Officer of
the Company, knowledgeable of all Company financial matters, and is authorized to provide certification of information regarding
the Company; hereby certifies, in such capacity, that in accordance with the terms and conditions of the Loan Agreement, except
as set forth below, each Loan Party is in compliance for the period ending ___________ of all covenants, conditions and terms and
hereby reaffirms that all representations and warranties contained therein are true and correct in all material respects on and
as of the date of this Compliance Certificate with the same effect as though made on and as of such date, except to the extent
such representations and warranties expressly relate to an earlier date. Attached are the required documents supporting the above
certification. The undersigned further certifies the attached financial statements are prepared in accordance with GAAP (except
for the absence of footnotes with respect to unaudited financial statement and subject to normal year end adjustments) and are
consistent from one period to the next except as explained below.

 

	 	 	CHECK IF
	REPORTING REQUIREMENT	REQUIRED	ATTACHED
	 	 	 
	Interim Financial Statements	Monthly within 30 days	 
	 	 	 
	Interim Financial Statements	Quarterly within 45 days	 
	 	 	 
	Audited Financial Statements	FYE within 90 days	 

 

ACCOUNTS OF THE LOAN PARTIES AND THEIR SUBSIDIARIES AND AFFILIATES

 

The undersigned hereby also confirms the below disclosed
accounts represent all depository accounts and securities accounts presently open in the name of each Loan Party or Subsidiary,
as applicable.

 

Each new account that has been opened since delivery
of the previous Compliance Certificate is designated below with a “*”.

 

     

     

    

 

	 	 	 	Last	 
	 	 	Account	Month	 
	 	 	Type	Ending	 
	 	Depository	Financial	(Depository /	Account	Purpose of
	 	AC #	Institution	Securities)	Balance	Account
	 	 	 	 	 	 
	LOAN PARTY

Name/Address:  	 	 	 	 	 
	 	1	 	 	 	 	 
	 	2	 	 	 	 	 
	 	3	 	 	 	 	 
	 	4	 	 	 	 	 
	 	5	 	 	 	 	 
	 	6	 	 	 	 	 
	 	7	 	 	 	 	 
	 	 	 	 	 	 	 
	LOAN PARTY

SUBSIDIARY

Name/Address

	 	 	 	 	 	 
	 	1	 	 	 	 	 
	 	2	 	 	 	 	 
	 	3	 	 	 	 	 
	 	4	 	 	 	 	 
	 	5	 	 	 	 	 
	 	6	 	 	 	 	 
	 	7	 	 	 	 	 
	 	 	 	 	 	 	 

 

[Signature page follows.]

 

     

     

    

 

Very Truly Yours,

 

	 	BICYCLE
    THERAPEUTICS PLC
	 	 
	 	By:	 
	 	Name:  	                   
	 	Its:	 

 

     

     

    

 

EXHIBIT F

 

FORM OF JOINDER AGREEMENT

 

This Joinder Agreement
(the “Joinder Agreement”) is made and dated as of [      ], 20[ ], and is entered into by
and between__________________., a ___________ corporation (“Subsidiary”), and HERCULES CAPITAL, INC., a Maryland corporation
(as “Agent”).

 

RECITALS

 

A.   
Subsidiary’s Affiliate, Bicycle Therapeutics plc (“Company”) has entered into that certain Loan and Security
Agreement dated September 30, 2020, with the several banks and other financial institutions or entities from time to time party
thereto as lender (collectively, the “Lenders”) and the Agent, as such agreement may be amended, restated or modified
(the “Loan Agreement”), together with the other agreements executed and delivered in connection therewith;

 

B.   
Subsidiary acknowledges and agrees that it will benefit both directly and indirectly from Company’s execution of the
Loan Agreement and the other agreements executed and delivered in connection therewith;

 

AGREEMENT

 

NOW THEREFORE, Subsidiary and Agent agree as follows:

 

		1.	The recitals set forth above are incorporated into and
made part of this Joinder Agreement. Capitalized terms not defined herein shall have the meaning provided in the Loan Agreement.

 

		2.	By signing this Joinder Agreement, Subsidiary shall be
bound by the terms and conditions of the Loan Agreement the same as if it were a Borrower (as defined in the Loan Agreement) under
the Loan Agreement, mutatis mutandis, provided however, that (a) with respect to (i) Section 5.1 of the Loan Agreement, Subsidiary
represents that it is an entity duly organized, legally existing and, where applicable, in good standing under the laws of [         ],
(b) neither Agent nor the Lenders shall have any duties, responsibilities or obligations to Subsidiary arising under or related
to the Loan Agreement or the other Loan Documents, (c) that if Subsidiary is covered by Company’s insurance, Subsidiary
shall not be required to maintain separate insurance or comply with the provisions of Sections 6.1 and 6.2 of the Loan Agreement,
and (d) that as long as Company satisfies the requirements of Section 7.1 of the Loan Agreement, Subsidiary shall not have to
provide Agent separate Financial Statements. To the extent that Agent or the Lenders has any duties, responsibilities or obligations
arising under or related to the Loan Agreement or the other Loan Documents, those duties, responsibilities or obligations shall
flow only to Company and not to Subsidiary or any other Person or entity. By way of example (and not an exclusive list): (i) Agent’s
providing notice to Company in accordance with the Loan Agreement or as otherwise agreed among Company, Agent and the Lenders
shall be deemed provided to Subsidiary; (ii) a Lender’s providing an Advance to Company shall be deemed an Advance to Subsidiary;
and (iii) Subsidiary shall have no right to request an Advance or make any other demand on the Lenders.

 

		3.	Subsidiary agrees not to certificate its equity securities
without Agent’s prior written consent, which consent may be conditioned on the delivery of such equity securities to Agent
in order to perfect Agent’s security interest in such equity securities.

 

     

     

    

 

		4.	Subsidiary acknowledges that it benefits, both directly and indirectly, from the Loan Agreement,
and hereby waives, for itself and on behalf on any and all successors in interest (including without limitation any assignee for
the benefit of creditors, administrator, receiver, bankruptcy trustee or itself as debtor-in-possession under any bankruptcy proceeding)
to the fullest extent provided by law, any and all claims, rights or defenses to the enforcement of this Joinder Agreement on the
basis that (a) it failed to receive adequate consideration for the execution
and delivery of this Joinder Agreement or (b) its obligations under this Joinder Agreement are avoidable as a fraudulent conveyance.

 

		5.	As security for the prompt, complete and indefeasible
payment when due (whether on the payment dates or otherwise) of all the Secured Obligations, Subsidiary grants to Agent a security
interest in all of Subsidiary’s right, title, and interest in and to the Collateral.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

     

     

    

 

[SIGNATURE PAGE TO JOINDER AGREEMENT]

 

	SUBSIDIARY:	 
	 	 
	_________________________________.	 
	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 
	 	Address:	 
	 	 
	 	 
	 	Telephone: ___________	 
	 	email: ____________	 
	 	 
	AGENT:	 
	 	 
	HERCULES
    CAPITAL, INC.	 
	 	 
	 	By:	                                                                 	 
	 	Name:  	 	 
	 	Title:	 	 
	 	 
	 	Address:	 
	 	400 Hamilton Ave., Suite 310 

Palo Alto, CA 94301	 
	 	email: legal@htgc.com

 Telephone: 650-289-3060	 

 

     

     

    

 

EXHIBIT J-1

 

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Lenders That Are Not Partnerships For
U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the
Loan and Security Agreement dated as of September 30, 2020 (as amended, supplemented or otherwise modified from time to time, the
“Loan Agreement”) by and among Bicycle Therapeutics plc, a public limited company organized under the laws of England
and Wales, and each of its Subsidiaries (as defined in the Loan Agreement) (hereinafter collectively referred to as the “Borrower”),
the several banks and other financial institutions or entities from time to time parties to the Loan Agreement (collectively, referred
to as the “Lenders”), and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and
collateral agent for itself and the Lenders (in such capacity, the “Agent”).

 

Pursuant to the provisions of Addendum 1
of the Loan Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as
well as any promissory note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a
“bank” within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a “ten percent shareholder”
of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a “controlled foreign corporation”
related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has furnished the
Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this
certificate, the undersigned agrees that (1) if the information provided in this certificate changes, the undersigned shall promptly
so inform the Borrower and the Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Agent with
a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the
undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein,
terms defined in the Loan Agreement and used herein shall have the meanings given to them in the Loan Agreement.

 

	Date: _____________ ___, 20___	[NAME
OF LENDER]
	 	 
	 	By:	 
	 	Name:  	 
	 	Title:	 

 

     

     

    

 

EXHIBIT J-2

 

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Participants That Are Not Partnerships
For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the
Loan and Security Agreement dated as of September 30, 2020 (as amended, supplemented or otherwise modified from time to time, the
“Loan Agreement”) by and among Bicycle Therapeutics plc, a public limited company organized under the laws of England
and Wales, and each of its Subsidiaries (as defined in the Loan Agreement) (hereinafter collectively referred to as the “Borrower”),
the several banks and other financial institutions or entities from time to time parties to the Loan Agreement (collectively, referred
to as the “Lenders”), and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and
collateral agent for itself and the Lenders (in such capacity, the “Agent”).

 

Pursuant to the provisions of Addendum 1
of the Loan Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation
in respect of which it is providing this certificate, (ii) it is not a “bank” within the meaning of Section 881(c)(3)(A)
of the Code, (iii) it is not a “ten percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B)
of the Code and (iv) it is not a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C)
of the Code.

 

The undersigned has furnished its participating
Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate,
the undersigned agrees that (1) if the information provided in this certificate changes, the undersigned shall promptly so inform
such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently
effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two
calendar years preceding such payments.

 

Unless otherwise defined herein,
terms defined in the Loan Agreement and used herein shall have the meanings given to them in the Loan Agreement.

 

	Date: _____________ ___, 20___	[NAME
OF PARTICIPANT]
	 	 
	 	By:	 
	 	Name:  	                 
	 	Title:	 

 

     

     

    

 

EXHIBIT J-3

 

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Participants That Are Partnerships
For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the
Loan and Security Agreement dated as of September 30, 2020 (as amended, supplemented or otherwise modified from time to time, the
“Loan Agreement”) by and among Bicycle Therapeutics plc, a public limited company organized under the laws of England
and Wales, and each of its Subsidiaries (as defined in the Loan Agreement) (hereinafter collectively referred to as the “Borrower”),
the several banks and other financial institutions or entities from time to time parties to the Loan Agreement (collectively, referred
to as the “Lenders”), and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and
collateral agent for itself and the Lenders (in such capacity, the “Agent”).

 

Pursuant to the provisions of Addendum
1 of the Loan Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect
of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such
participation, (iii) with respect to such participation, neither the undersigned nor any of its direct or indirect partners/members
is a “bank” extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business
within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a “ten percent
shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect
partners/members is a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C)
of the Code.

 

The undersigned has furnished its participating
Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio
interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or
IRS Form W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.
By executing this certificate, the undersigned agrees that (1) if the information provided in this certificate changes, the undersigned
shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed
and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either
of the two calendar years preceding such payments.

 

Unless otherwise defined herein,
terms defined in the Loan Agreement and used herein shall have the meanings given to them in the Loan Agreement.

 

	Date: _____________ ___, 20___	[NAME
OF PARTICIPANT]
	 	 
	 	By:	 
	 	Name:  	                   
	 	Title:	 

 

     

     

    

 

EXHIBIT J-4

 

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Lenders That Are Partnerships For
U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the
Loan and Security Agreement dated as of September 30, 2020 (as amended, supplemented or otherwise modified from time to time, the
“Loan Agreement”) by and among Bicycle Therapeutics plc, a public limited company organized under the laws of England
and Wales, and each of its Subsidiaries (as defined in the Loan Agreement) (hereinafter collectively referred to as the “Borrower”),
the several banks and other financial institutions or entities from time to time parties to the Loan Agreement (collectively, referred
to as the “Lenders”), and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and
collateral agent for itself and the Lenders (in such capacity, the “Agent”).

 

Pursuant to the provisions of Addendum 1
of the Loan Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any promissory
note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members
are the sole beneficial owners of such Loan(s) (as well as any promissory note(s) evidencing such Loan(s)), (iii) with respect
to the extension of credit pursuant to this Loan Agreement or any other Loan Document, neither the undersigned nor any of its direct
or indirect partners/members is a “bank” extending credit pursuant to a loan agreement entered into in the ordinary
course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members
is a “ten percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none
of its direct or indirect partners/members is a “controlled foreign corporation” related to the Borrower as described
in Section 881(c)(3)(C) of the Code.

 

The undersigned has furnished the
Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is
claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by
an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the
portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided in this
certificate changes, the undersigned shall promptly so inform the Borrower and the Agent, and (2) the undersigned shall have at
all times furnished the Borrower and the Agent with a properly completed and currently effective certificate in either the calendar
year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein,
terms defined in the Loan Agreement and used herein shall have the meanings given to them in the Loan Agreement.

 

	Date: _____________ ___, 20___	[NAME
OF LENDER]
	 	 
	 	By:	 
	 	Name:  	 
	 	Title:	 

 

     

     

    

 

SCHEDULE 1.1

 

COMMITMENTS

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	HMRC Treaty
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Passport scheme
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	reference
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	number and
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	jurisdiction of
	 	 	Tranche 1A	 	 	Tranche 1B	 	 	Tranche 2	 	 	TERM	 	 	tax residence (if
	LENDERS	 	Commitment	 	 	Commitment	 	 	Commitment	 	 	COMMITMENT	 	 	applicable)1
	Hercules Capital, Inc.	 	$	15,000,000	 	 	$	15,000,000	 	 	$	10,000,000	 	 	$	40,000,000	 	 	13/H/370777/DT

TP

United States
	TOTAL COMMITMEN TS	 	$	15,000,000	 	 	$	15,000,000	 	 	$	10,000,000	 	 	$	40,000,000	 	 	 

 

 

1 Each of
these must be included if the Lenders who are party to this Agreement at the date of this Agreement hold a passport under the
HMRC DT Treaty Passport scheme and wishes that scheme to apply to the Agreement.

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